This article summarizes "The Majority Rule Act for Smaller Classes, Safer Schools and Financial Accountability" (Proposition 26). The Majority Rule Act deals with the percentage vote that a school district, county office of education, or community college, needs in an election to authorize local general-obligation bonds for school construction. It also provides for funding for classrooms in charter schools. Current law in California requires a two-thirds vote to approve local bonded indebtedness. The report details the major arguments for and against this policy and discusses how schools currently have two major sources of funds for facilities: local general-obligation bonds authorized by two-thirds of the voters in a school district or state general-obligation bonds authorized by a majority of all state voters. It describes how local general-obligation bonds are used for school buildings and how state bonds supplement local money. It details the need for new or renovated facilities, specifying how the majority of the schools in the state are more than 30 years old. Counted among proponents for the measure are major education organizations, charter-school advocates, and business groups. Opponents include the Howard Jarvis Taxpayers' Association. A synopsis of the potential financial impact of Proposition 26 is provided. (RJM)