Official Results
Yes votes:
3,541,199 (28.7%)
No votes:
8,789,890 (71.3%)

Prop. 38 would increase the state income tax rates for most Californians on a sliding scale, resulting in increased revenues of about $10 billion a year. Revenues would go to K-12 schools and early childhood programs, and to repay some state debt. The income tax increase would end after 12 years, unless voters reauthorize it.

For more information on this proposition, including voter resources, in-depth analysis, and endorsements, please see the California Choices web site.

Pro

Supporters of Prop. 38 claim that it will restore and expand school funding. They say the measure will accomplish this fairly by charging wealthier taxpayers more on income taxes and the rest on their ability to pay. They claim that the Legislature will be barred from touching the money, that all the money will go to education, and that local governments will have control over how the money is spent on local schools.

Con

Opponents of Prop. 38 believe it will raise taxes substantially on most Californians, not just the wealthy. They say that small businesses will be especially hurt by the measure's tax hikes. Opponents contend that school districts are not required to show successful gains in student accomplishment. They say the measure will raise taxes but won't target the deficit. Finally, they say that the measure prohibits any changes through 2024 without voter involvement.