Breaking down Prop. 3 and its potential impact on public education

Californians will vote on whether to make permanent a tax on higher-income residents, a tax that currently brings in between $5 billion and $15 billion each year for the state’s schools and healthcare system. As it stands, the tax is set to expire in 2031.

Proposition 3 asks voters whether the state should extend an existing tax on the wealthiest 2% of residents to fund needed services, without raising or adding new taxes. 

Those in support are the California Teachers Association (CTA), the California School Nurses Organization, the California State PTA and Planned Parenthood Affiliates of CA. Opponents of the proposition include the California Taxpayers Association, the Family Business Association of California and the California Hispanic Chambers of Commerce.

Supporters argue these funds are necessary to prevent future budget cuts to public schools, community colleges and healthcare. Opponents, on the other hand, say that raising taxes on wealthy residents could harm them and drive many to leave the state.

A briefing hosted by the American Community Media (ACoM) alongside the CTA examined Proposition 3, exploring classroom conditions that prompted the measure as well as its potential impacts on students, families and local school districts.

A 2026 CTA report found that 80% of members said schools lacked the resources to support students. Also, 78% of members said classrooms were overcrowded, and 73% said their schools lacked educators. 

ACoM explained that school funding affects families in many ways, including access to teachers, counselors, school nurses and other staff members necessary for children's education. 

Attorney Karen Getman, who is also an expert on California ballot measures and public-school funding, shared that she had the privilege of working on this specific tax when it was first imposed back in 2012.

"Governor Jerry Brown asked to have it put on the ballot back then. We were in the middle of the Great Recession and everybody in the state was suffering terribly,” she said, pointing out that public schools were hit especially hard.

Getman recalls classrooms being crowded with about 42 kids in each and some even sharing desks with their teachers. After noticing the urgent need for a call to action, voters approved it as a high-earner income tax. However, the tax was supposed to be temporary.

“By 2016 we realized that it was taking longer to get out of the recession than we expected. So, we asked the voters to approve an extension of the tax, which they did overwhelmingly,” she said.

Proposition 3 would make the current tax rate permanent without raising it and the measure would primarily affect the top 2% of California earners, leaving the remaining 98% unaffected. 

Based on the 2025 tax rate levels, rates begin at 10.3% for single filers making approximately $371,000. These rates increase for individuals earning above $446,000 and top out at 12.3% for income exceeding roughly 743,000 for single filers or 742,000 for joint filers. For married couples, the maximum rate applies to income over $1.49 million. 

Getman emphasized that because this tax has been active since 2012, Proposition 3 does not raise or alter existing rates but instead prevents them from being cut. “I live near San Francisco; it does not seem to have impacted the number of people who are high earners moving into the state or staying in the state,” she said. 

The Legislative Analyst’s Office estimates that the tax generates between $5 billion and $15 billion annually, depending on the stock market.

“If we don't extend the program, then in 2030 there will be a 10-15 billion cut in the state budget, and about 40% of that is going to come from the schools,” Getman said and added that public school systems could face $7 billion to $8 billion in cuts, with a similar amount coming out of the health care system. She also stated that Proposition 3 would be devastating for Los Angeles schools, as it is the nation's second-largest school district.

Eva Ruiz, a CTA member and Central Valley educator, shared that California currently provides free school meals for every student. They also provide transitional kindergarten for every four-year-old and free before- and after-school care. 

Ruiz emphasized that Proposition 3 helps maintain smaller class sizes and supplies essential mental health counselors for students. She warned that failing to pass the measure would have a devastating effect on local school districts, students and communities.

“Proposition 3 ensures that our California public schools won't lose out on billions of dollars of revenue at a time when public education is under attack at the highest level,” Ruiz said.

Ruiz explained that an educator shortage not only threatens critical programs for vulnerable low-income students but also for English language learners and students with disabilities, which could all be at risk of being eliminated if voters reject the proposition. By eliminating these essential programs, she said schools without funding will not allow students to succeed.