In this study the authors assess the relationship between economic conditions and results from state ballot proposition elections in California. They propose that voters are less likely to adopt policies in the context of poor economic conditions. Aggregate results demonstrate that adverse economic conditions are associated with greater negative voting on propositions. Models estimated with state and national economic indicators illustrate that voting is conditioned by the state economy more than the national economy.Substantial scholarly attention has been directed at the relationship between economic conditions and voting in national elections (Kramer 1971;Lewis-Beck 1990). Until recently, however, economic voting in state elections has received less emphasis. Although economic voting in state elections has become the subject of several studies (Peltzman 1987;Chubb 1988; Howell and Vanderleeuw 1990), virtu-ally no attention has been given to the question of how economic conditions might affect support for state ballot propositions. This is unfortunate, given the prominence of ballot propositions in many American states (Magleby 1984).Although a general consensus exists that &dquo;economics matters&dquo; in candidate elections, less is known about the linkage between economic conditions and direct democracy voting. Economic models of voting are based upon assumptions about individuals forming evaluations of economic conditions, then using those evaluations when deciding between candidates and/or parties. In their simplest form, these studies