Proposition 3
The California Children's Education and Health Care Protection Act of 2026
What is it?
Prop 3 makes California's extra income tax rates on high earners permanent by deleting their 2030 expiration date from the state constitution.
Above the regular 9.3% rate, the state adds three higher brackets: 10.3%, 11.3%, and 12.3%. Voters set those rates with Prop 30 in 2012 and extended them with Prop 55 in 2016; they expire after the 2030 tax year. Prop 3 deletes that expiration date, so the rates keep applying until another vote of the people ends them. Prop 3 does not change the rates or the incomes they apply to, and it does not create a new tax.
Where the money goes
The money goes into the Education Protection Account that Prop 30 created, which is split 89% to K-12 schools and 11% to community colleges. If the account holds more than the school formula requires, half of the leftover, up to $2B in a year, goes to children's and family health care under Medi-Cal. Prop 3 does not change how any of that money is divided.
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Fiscal impacts
Prop 3 keeps an existing tax rather than changing a rate, so it does not affect state revenue before 2031. The Legislative Analyst's Office estimates it would maintain $5B to $15B in annual state income tax revenue in today's dollars: closer to $5B in a weak stock market year, $15B in a strong one, because much of it comes from taxing investment income and capital gains. The LAO estimates about 40% of that revenue would typically go to schools and community colleges, with some saved in required budget reserves and the rest available for other state programs.
Why is this on the ballot?
This is a citizen initiative that amends the state constitution. It was filed with the Attorney General on August 29, 2025 as Initiative 25-0016 and qualified for the November 3, 2026 ballot by signature.
According to Article II, Section 8 of the California Constitution, amendments to the California Constitution may be introduced by collecting signatures (8% of the votes cast in the most recent Governor's race). The amendment must then be approved by voters with a simple majority of 50% + 1.
- Placed on ballot by: Signature petition
- Proponents: Benjamin Gevercer and David B. Goldberg, who filed the initiative with the Attorney General. Goldberg is president of the California Teachers Association, which is sponsoring the measure through its campaign committee, Californians for Protecting Public Education, Health Care and Budget Stability.