Frequently Asked Questions About Proposition 41

Q: What does Prop 41 do?

A: Prop 41 requires the independent State Auditor to conduct public performance and financial audits of programs funded by proposed new taxes, bringing government transparency and accountability to spending decisions before voters make them.

Californians pay some of the highest taxes in the country – on top of our high cost of living. Billions of our tax dollars have flowed into state programs, like homelessness efforts, with too little to show for it. We deserve better education, healthcare, infrastructure and other services in return for the hard-earned money we pay to the state.

Proposition 41 (2026) puts independent audits and measurable outcomes at the center of how California funds programs with new tax dollars, so that we stop funding failure and start funding successful outcomes.

Q: Does Prop 41 raise taxes?

A: No. Prop 41 does not create or increase any taxes – it protects taxpayers’ interests by:

1) Identifying shortcomings in programs and recommending fixes, to help deliver better results for our taxes;

Reducing the waste and fraud that have cost California taxpayers billions of dollars in recent years; and
Requires all taxes to comply with the state’s voter-approved spending limit – including its requirement that excess revenues get refunded to taxpayers.

Prop 41 ensures taxpayers get better results, not just a bigger tax bill.

Q: How do the audits work?

Proposition 41 requires the independent California State Auditor to review programs that would be funded by a new or higher special tax proposed to California voters. The first review happens before the tax reaches the ballot. Once a special tax initiative collects 25 percent of the signatures needed to qualify, the State Auditor audits each program that would receive the money, looking at whether the program is achieving its goals, how well it spends its dollars, and where fraud, waste, or abuse may exist. A summary of the findings is printed in the Voter Information Guide so voters can read it before they vote. If a new special tax is approved by voters, the State Auditor reviews the funded programs again every four years and invites public input.

The audits produce findings and recommendations, and both are public. Decisions about funding stay with voters and the Legislature, as they are today, and the nonpartisan Legislative Analyst Office notes that acting on the recommendations "could result in savings or improved
services at existing funding levels." A program funded by a new special tax is reviewed before any change to its funding is made. For a full walkthrough, see the our explainer here.

Q: Who conducts the audits?

A: The audits are conducted by California's independent State Auditor, the state's nonpartisan fiscal watchdog, and shared broadly with the public, including in the Voter Information Guide. The financial and performance audits must:

Track all program spending and assess whether it’s achieving its intended outcomes;
Determine whether programs have sufficient oversight and accountability;
Identify areas of waste, fraud and abuse; and,
Recommend how future waste and fraud can be avoided and how programs can be made more effective.

Under Prop 41, the Auditor is required to review programs funded by proposed new tax measures before voters cast their ballots and conduct ongoing audits if those measures are approved.

Q: What happens if an audit finds problems?

A: If the State Auditor identifies concerns about oversight, accountability or program performance, those findings are included in the Voter Information Guide so voters can make a more informed decision.

If a measure is approved, future audits continue evaluating how funds are spent, identify areas for improvement, and recommend ways to make programs more effective over time – so that programs are held accountable to the people who pay for them: taxpayers.

The audit doesn't decide whether a measure passes or fails; it gives voters independent information before they cast their ballot.

Q: What does Prop 41 mean for education, healthcare and other public programs?

A: Every tax dollar we waste is a dollar that could actually help someone. Prop 41 is built to sustain fiscal discipline alongside public investment. It does not cut or eliminate funding for education, healthcare or other public services, and it helps ensure that programs funded by taxpayers are transparent, accountable and delivering results. We deserve better services in return for the hard-earned money we pay to the state.

Prop 41 requires more accountability, transparency and trackable progress of programs funded by our taxes, like homelessness, so that we stop funding failure and start funding successful outcomes.

Q: Does Prop 41 make it harder for initiatives to qualify for the ballot?

A: No. Prop 41 does not change the initiative process or prevent measures from qualifying for the ballot. Supporters can still gather signatures, qualify initiatives and campaign for their proposals just as they do today.

The difference is that under Prop 41, programs to be funded by new taxes are assessed before voters cast their ballot. The Auditor’s findings must be posted in the Voter Information Guide, so voters have access to independent information about how programs are being managed and whether they actually need more funding. Voters deserve the ability to make informed decisions about new taxes without having to rely on information from special interests or politicians.

Q: Who pays for the audits?

A: If a tax measure is approved, the cost of the required audits is paid from the revenues generated by that measure. If voters reject the measure, the audit costs are paid through the state's General Fund.

Many statewide tax measures raise hundreds of millions – or even billions – of dollars over time. Prop 41 ensures a small investment in independent oversight helps taxpayers know whether those dollars are being spent effectively and producing the results promised.

Q: Who supports Prop 41?

Prop 41 is backed by a board coalition of small businesses, taxpayers, good government advocates, accountants, and auditing experts. Endorsers include the California Society of Certified Public Accountants, former State Controller Steve Westly, former California Auditor General Tom Hayes, the NAACP California-Hawaii State Conference, the California Alliance of Seniors, the California Chamber of Commerce, the California Farm Bureau, the California Taxpayers Association, the California Hispanic Chambers of Commerce, along with dozens of local chambers, taxpayer associations, and regional economic partnerships across the state.

Endorsements also include Democratic organizations and officials. The Chinese American Democratic Club, the San Bernardino Young Democrats, and the Sacramento State College Democrats have endorsed Prop 41, as has Steve Westly, a Democrat who served as State Controller. Local officials who have endorsed include Riverside County Auditor-Controller Ben Benoit and council members and mayors from across California. The full and current list of endorsers is at yesonprop41.org/endorsements.

Q: How does Prop 41 strengthen taxpayer protections?

A: Prop 41 requires all future state tax measures to comply with California's voter-approved constitutional spending limit. That means future measures must follow the same constitutional rules that already apply to state spending including the requirement that excess revenues be refunded to taxpayers when the spending limit is exceeded.

Prop 41 provides for consistent application of the spending limit, so future state tax measures follow the same constitutional rules that already govern state spending, including the requirement that excess revenues be refunded to taxpayers.