Money generated by Proposition 3, like the current tax, would flow to education, with 89% going to K-12 schools and 11% to community colleges.
Then, because the state constitution requires minimum levels of spending on education, more dollars are freed up to pay for services including healthcare and the University of California and California State University systems, said Kayla Kitson, a senior analyst with the California Budget and Policy Center.
Proposition 3, like the current high-earners tax, has the added effect of raising the minimum levels of funding required to flow to K-12 schools and community colleges, because of the complicated formulas California uses to set its budget, Kitson said.
If Proposition 3 fails, the state could expect to lose between $5 billion and $15 billion annually in tax revenue starting in 2031, according to estimates from the Legislative Analyst’s Office.
