California voters lock in permanent tax on high earners to bankroll schools with Prop 3

California voters approved Proposition 3, making permanent higher income tax rates for the state’s top earners and securing billions of dollars a year for public education. The decision matters because the rates were due to expire after 2030, and supporters said losing the revenue could lead to school staff cuts and reduced programmes.

The measure passed with 58.7% support, or about 4.4 million votes, against 41.3%, or 3.1 million. It keeps rates of 10.3% to 12.3% on individual income above about $371,000, a threshold adjusted for inflation; taxpayers below it are unaffected. The tax is estimated to raise $5 billion to $15 billion annually, with 89% of education funding going to K-12 schools and 11% to community colleges. In high-revenue years, it provides about 15% of the state’s K-12 budget.