California voters will decide Proposition 3 on November 3, 2026, which would permanently extend the higher marginal income tax rates on the top 2% of earners—originally approved in 2012 and extended through 2030—rather than allowing them to expire in 2031. The measure, backed by the California Teachers Association and other education groups, allocates most revenue to K-12 schools and community colleges while generating an estimated $5 billion to $15 billion annually. Recent PPIC polling showed 52-58% support among likely voters, aided by the proposal's status as an extension of existing rates instead of a new tax. Qualification for the ballot in June 2026 with ample signatures and the absence of major organized opposition have reinforced trader expectations of passage reflected in the current 80.5% implied probability for approval.