California voters will decide Proposition 3 on the November 2026 ballot, which would make permanent the higher personal income tax rates on high earners originally approved in 2012 and extended in 2016, preventing their scheduled expiration after 2030. The initiative qualified for the ballot in June 2026 after education and labor groups, including the California Teachers Association, gathered well over the required signatures. Revenues, estimated at $5 billion to $15 billion annually depending on capital gains, would flow primarily to K-12 schools and community colleges with restrictions on administrative use. Trader consensus reflects broad backing for maintaining dedicated education funding in a state where high earners already contribute a large share of income tax revenue, alongside limited organized opposition relative to competing tax measures.