Proposition
3Makes the 2012 high-income tax permanent
Our readToss-up: weigh it carefully
Makes the “temporary” top-earner tax permanent: $9–10B a year. School spending is up 75%, results are flat, and no money is tied to outcomes.
Key findings
- The "temporary" top-earner tax has raised more than $104B since 2012, currently $9–10B a year. [1]
- It was sold as temporary twice: 7 years in 2012 (Prop 30), then extended 12 years in 2016 (Prop 55). This measure removes the end date (now after 2030). [2]
- School spending per student is up 75% after inflation since 2012–13. But fewer than half of 4th graders meet state reading standards, and 37% meet math, and scores haven't recovered from the pandemic. [3]
- Only about 40% of the money ends up as new school funding under the Prop 98 formula. The rest frees up the general budget. [2]
- The sponsor is the teachers' union, whose members' pay comes from this money: $53.8M of $81.1M raised. The opposition has raised $5,500. [4][5]
Track record
| Period | Measure | What it did | Promise |
|---|---|---|---|
| 2013–2018 | Prop 30 (2012) | Raised rates on top earners and added a ¼-cent sales tax (the sales tax ended in 2016) | Temporary, to stop recession-era school cuts |
| 2019–2030 | Prop 55 (2016) | Extended the income-tax part for 12 years | Temporary extension |
| 2031+ | Prop 3 | Same rates, permanent | No more renewal votes |
| Total so far | $104B+ raised; $9–10B/yr recently [1] |
Outcomes since 2012: per-pupil spending rose from below the national average to 16th in the nation. Adjusted for labor costs, it ranks 31st. [3]
Money and conflicts
- Yes $81.1M (Ballotpedia's count of the main committees is $74.8M). No $5,500 (CalTax). [5][4]
- CTA opposes Prop 40, the other "tax the rich" measure, because Prop 40's money skips the school-funding formula. Its position follows which measure pays its members. [6]
Does it solve a lasting problem?
- It prevents a $5–15B budget cliff, but it locks in the state's dependence on volatile capital-gains income, the main reason California's budget swings so much. Spending is up sharply while results are flat, and the measure ties no money to outcomes.
If you vote yes: accountability
Bottom line: The money is already flowing, about $9–10B a year, and it will keep flowing with no end date and no link to student results. [1] The real accountability tools are local: your school board decides how its share is spent, in public.
The rules this money already carries
The 2012 tax created an Education Protection Account (EPA). Each school district and community college gets a share. Under the state Constitution, each district must:
- decide how to spend it in an open session of a public board meeting
- not spend it on administrators' salaries or benefits, or any other administrative cost
- post on its website how much it received and how it spent it
- have its annual independent audit check that the money was spent properly [7]
Who's accountable
- Your school board and community college board. They vote on the EPA spending plan every year, usually in June with the budget.
- The State Superintendent of Public Instruction, who runs the Department of Education. That race (Barrera vs. Shaw) is on this ballot.
- The Legislature and Governor, who decide how much of the rest of the budget goes to schools. Only about 40% of this tax ends up as new school money. [2]
Who to press, and what to ask for
- At your district's June budget meeting, ask: how did the EPA money change reading and math results? Fewer than half of 4th graders meet reading standards, and 37% meet math. [3]
- Ask your legislators to tie future increases to published results, such as reading and math by school and per-student spending by school.
Public records to request (CPRA)
Anyone can file a California Public Records Act request (the state's version of FOIA), with no reason required. Agencies must respond within 10 days, or 24 in unusual cases. [8]
To your school district: Under the California Public Records Act (Gov. Code § 7920.000 et seq.), I request the district's Education Protection Account spending plans and year-end accountings for 2020–21 through 2025–26, the board resolutions adopting them, and the sections of the annual independent audit that test EPA spending.
What it does
Both sides
- For: CTA, school employees, PTA, CA Democratic Party, CMA. Without it, schools face layoffs in 2031.
- Against: CalTax, Reform California, OC Register, SD Union-Tribune. California already has the top U.S. income-tax rate, and voters were promised this was temporary.
Sources 9
- ^ a b c California Budget & Policy Center (Apr 2026) calbudgetcenter.org Other
- ^ a b c d LAO Legislative Analyst Official
- ^ a b c PPIC, what the next governor needs to know (July 1, 2026) ppic.org Other
- ^ a b Ballotpedia News (Oct 26, 2026) Ballotpedia News Reference
- ^ a b CA SoS contributions Secretary of State Official
- ^ a b CalMatters guide CalMatters Reporting
- ^ Berkeley Unified EPA resolution (2014), quoting Art. XIII § 36 berkeleyschools.net Other
- ^ First Amendment Coalition, CPRA deadlines firstamendmentcoalition.org Other
- · EdSource on Prop 55 (2016) EdSource Reporting