Beverly Hills residents earning more than $371,000 a year face a direct stake in Proposition 3, which would permanently extend an income tax on high earners to fund California schools and other state services.

The measure on the Nov. 3 ballot would keep in place tax rates of 10.3% to 12.3% on the state's top 2% of earners, according to the California Legislative Analyst's Office. Without passage, those rates are scheduled to drop to 9.3% in 2031.

Voters first approved the higher rates in 2012 as a temporary fix during the Great Recession. They renewed the tax in 2016. Prop. 3 would eliminate the expiration date entirely.

The tax generates between $5 billion and $15 billion a year for the state, the LAO said. That amount swings with the stock market and other factors tied to high earners' income. Roughly 40% of the revenue flows to K-12 schools and community colleges through the state's Proposition 98 funding formula. The remainder funds healthcare and other state programs.

In strong years, the tax accounts for about 15% of California's overall K-12 education budget, LAist reported.

David Goldberg, president of the California Teachers Association (CTA), the state's largest teachers union, said school districts would be forced to lay off up to 50,000 teachers and make other cuts if the measure fails. "It's only a tax on the wealthiest Californians, but it's vital for our schools," Goldberg said, according to LAist.

The CTA has poured $33.3 million into the Yes on 3 campaign, with the National Education Association adding $10 million, according to a Sept. 24 filing with the California Secretary of State reported by LAist. Total support topped $46.8 million. The opposition raised $5,500.

Opponents say the tax drives wealthy residents and their money out of the state. Susan Shelley, vice president of the Howard Jarvis Taxpayers Association, questioned whether schools need more funding given declining enrollment. California's K-12 schools have lost more than 500,000 students since the mid-2010s, LAist reported.

Robert Gutierrez, president of the California Taxpayers Association, argued in a commentary that making the tax permanent during a period of high costs and unaffordable living hurts the majority of Californians, according to a LAist voter guide.

Supporters counter that California has one of the highest student-to-teacher ratios in the country. In the 2022-23 school year, the state had one teacher for every 22 students. The national average was 1-to-15, according to the National Center for Education Statistics.

A September poll by the Public Policy Institute of California found 58% of likely voters planned to vote yes. Among Democrats, 82% favored the measure. Among Republicans, 18% did.

The measure needs a simple majority to pass. Polls close at 8 p.m. on Tuesday, Nov. 3.