Proposition 3 would permanently extend an income-tax surcharge that sends billions each year to California schools. Pleasant Valley and Moorpark Unified stand to lose a share of that money if the Nov. 3 ballot measure fails.

The surcharge, first approved by voters in 2012 and extended in 2016, applies to the top 2% of California earners. It expires in 2031 without Prop. 3. The California Legislative Analyst's Office (LAO) projects the tax generates $5 billion to $15 billion a year for the state general fund, with 40% going to schools and community colleges, according to EdSource. That translates to $2 billion to $6 billion annually for K-12 and community college campuses statewide.

Under Prop. 3, 89% of the surcharge revenue would go to K-12 schools and 11% to community colleges, deposited into the Education Protection Account (EPA). Local school boards would decide how to spend the money. The measure bars spending on administrative costs, according to Ballotpedia's summary of the initiative.

If the measure fails, top marginal income-tax rates would drop from a range of 10.3% to 12.3% back to 9.3% after 2030.

Local budget pressure

The stakes are concrete for Moorpark Unified. The district reported in March 2025 that its general fund expenditures exceeded projected revenues by about $7.7 million, a planned shortfall covered by reserves. Moorpark Unified cited declining enrollment and the expiration of one-time COVID-19 relief funds as fiscal pressures, according to its second interim financial report.

Superintendent Dr. Kelli Hays said in March 2025, when the board approved that report, that the district had avoided layoffs through proactive staffing adjustments.

No published source specifies how much Prop. 3 revenue flows to Pleasant Valley or Moorpark Unified individually. The LAO's statewide range cannot be broken down to individual districts without per-student calculations that have not been released.

$46.8 million war chest

The Yes on 3 campaign had raised $46.8 million as of a Sept. 24 filing with the California Secretary of State. The No on 3 campaign had raised $5,500 total, $5,000 of it from the Family Business Association of California PAC.

The California Teachers Association (CTA) contributed $33.3 million, or 71% of the Yes campaign's total. The National Education Association donated $10 million. The California Federation of Teachers gave $1.75 million, and the Service Employees International Union (SEIU) added $1.5 million. CTA's 700-delegate State Council allocated the campaign money in June 2026.

"I would assume there is enough for every scenario to win this," CTA President David Goldberg said of the fundraising total.

On Saturday, Sept. 19, 1,150 teachers from 69 districts across California knocked on 36,509 doors in a single-day canvassing push for Prop. 3. CTA called it a record.

Polling and opposition

A Sept. 25 voter survey by the UC Berkeley Institute for Governmental Studies found 54% support for Prop. 3 and 40% opposed. A Public Policy Institute of California poll conducted Sept. 4-10 showed 58% support among likely voters.

Howard Jarvis Taxpayers Association President Jon Coupal questioned the measure Sept. 6, as reported by the New York Post. He said voters ask how existing tax money is being spent before agreeing to extensions.

Prop. 3 is one of two tax-raising measures on the November ballot. The other, Proposition 40, would impose a one-time 5% wealth tax on California's roughly 200 billionaires. CTA opposes Prop. 40, citing the risk of wealthy taxpayers leaving the state and a smaller share for schools: just 10% of Prop. 40 proceeds would go to K-12 and community colleges.

Voters cast ballots Tuesday, Nov. 3.