California voters make high-earner tax permanent for schools

Proposition 3 passed with about 59% support, extending higher income tax rates on California’s top earners beyond their scheduled expiration after 2030. The measure does not increase tax rates; it keeps rates in place that have applied since 2012.

California voters protect billions in school funding

California voters rejected the prospect of a major school funding loss, approving Proposition 3 with about 59% support. The measure keeps higher income tax rates on the state’s wealthiest residents in place after 2030, protecting revenue that can provide up to 15% of K-12 funding in flush years.

The tax, which has raised an estimated $5 billion to $15 billion annually, supports K-12 schools and community colleges. The plan allocates 89% of the proceeds to K-12 schools, with the remaining 11% going to community colleges. Supporters warned that losing the revenue could mean layoffs and program cuts, as schools face rising expenses.

The California Teachers Association led the campaign for the measure, arguing that stable funding matters for students, educators and schools. Its supporters included education, health care and labor groups. The measure keeps existing rates rather than raising them, and applies to income above thresholds that are adjusted for inflation.

Opponents said the tax was presented as temporary and urged the state to address spending instead. But voters chose to preserve a revenue stream that supporters said schools rely on, rather than risk deep cuts when the tax was due to expire.

California makes a temporary tax on top earners permanent

California voters have made permanent a tax originally approved as a temporary response to the Great Recession. Proposition 3 passed with about 59% of the vote, keeping higher rates on top earners in place beyond 2030 and extending a tax that opponents say was supposed to expire.

The measure preserves an estimated $5 billion to $15 billion in annual revenue. Supporters say that money protects schools from layoffs and cuts; opponents argue California already has high income, sales and gas taxes and should fix spending before extending taxes. The rates apply above income thresholds adjusted for inflation, and the measure itself does not raise them.

Proposition 3 was put on the ballot by the California Teachers Association, which ran a major campaign for passage. The funding split is 89% for K-12 schools and 11% for community colleges. The tax has accounted for up to 15% of K-12 funding in strong revenue years.

Opponents also questioned whether a permanent tax is still needed, citing declining school enrollment and increased government spending on schools in recent years. They warned that high taxes could prompt wealthy residents to move to lower-tax states, potentially reducing state revenue. Voters nevertheless chose to keep the funding stream in place.