Proposition 3: Provides Permanent Funding for Schools + Health Care by Extending Existing Tax on HI

Presented by Robbie Davis, LWV Pasadena Proposition 3: Provides Permanent Funding for Schools and Health Care by Extending Existing Tax on High Incomes Proposition 3 is an initiative constitutional amendment on California’s November 3, 2026 ballot. It would make permanent the higher state income tax rates on high-income earners that voters first approved in 2012 and extended in 2016. Those rates are currently scheduled to expire in 2031. Proposition 3 does not create a new tax. The higher rates apply to the top 2% of California taxpayers. For 2025, they apply to taxable income above approximately $371,000 for single filers, $742,000 for joint filers, and $505,000 for heads of household, with those thresholds adjusted annually for inflation. The Legislative Analyst estimates that making the rates permanent would maintain about $5 billion to $15 billion in state revenue each year after 2030. Arguments in favor: Supporters say Proposition 3 would maintain existing tax rates on the highest-income Californians and protect billions of dollars in funding for schools, community colleges, health care, and other state programs. They also point to requirements directing education funding to local schools and community colleges. Arguments against: Opponents say Proposition 3 would turn tax increases originally adopted as temporary into permanent tax rates. They argue that California should address state spending rather than permanently extending the higher rates and question whether increased education spending has produced sufficient results. A YES vote makes the existing higher income tax rates on high-income earners permanent instead of allowing them to expire in 2031. A NO vote keeps current law, under which those higher income tax rates expire in 2031. For the complete nonpartisan Pros & Cons analysis from the League of Women Voters of California Education Fund: Proposition 3 — LWV California Education Fund Pros & Cons: cavotes.org/ballot-measure/2026-prop-3/ For the official state voter guide: California Official Voter Information Guide — Proposition 3: voterguide.sos.ca.gov/propositions/3/index.htm More information: Donate to the League of Women Voters to help us continue voter service: https://www.paypal.com/ncp/payment/MB... League of Women Voters of Los Angeles County: lwvlacounty.org Los Angeles County Registrar-Recorder/County Clerk election information: Upcoming Elections Vote 411: www.vote411.org USE OF THIS VIDEO: This presentation was produced by the League of Women Voters of Los Angeles County for voter education. If reproduced, shared, embedded, or rebroadcast, the video must be presented in its entirety and may not be edited, excerpted, clipped, altered, or used in a manner that could misrepresent the content or the League’s presentation. Unauthorized use of excerpts or edited portions is not approved by the League of Women Voters of Los Angeles County. For permission requests, please contact the League directly.