Proposition 2, the “Use Millionaire’s Tax Revenue for Homelessness Prevention Housing Bonds Measure,” is on the ballot in California as a legislatively referred state statute on Nov. 6.

A yes vote supports authorizing the state to use revenue from Proposition 63 (2004)—a 1-percent tax on income above $1 million for mental health services—on $2 billion in revenue bonds for homelessness prevention housing for persons in need of mental health services.

A no vote opposes authorizing the state to use revenue from Proposition 63 (2004) on $2 billion in revenue bonds for homelessness prevention housing for persons in need of mental health services.

Proposition 2 is on the ballot because the California State Legislature passed legislation to spend revenue from Proposition 63 on revenue bonds for homelessness prevention housing in 2016. The legislation, however, did not go into effect because of pending litigation over whether revenue from the millionaire’s tax could be spent on homelessness prevention housing.

Unlike general obligation bonds, revenue bonds do not require a public vote in California. Proposition 2 was referred to the ballot because the revenue for the bond would come from a tax that was created through a ballot initiative, Proposition 63. In California, changes to ballot initiatives require a vote of the public.