Voters Weigh Prop. 3 School Tax and Prop. 38 as Google Revises K-12 AI

ORINDA, LAFAYETTE & MORAGA, Calif. — Public education funding, biomedical research bonds, and classroom technology governance took center stage on Tuesday, November 3, as California voters weighed Proposition 3 and Proposition 38 at the ballot box while Google announced a sweeping policy shift for K-12 student accounts.

Proposition 3: Making Permanent a $5 Billion to $15 Billion High-Income Tax for Public Schools

As reported by The Almanac and Mountain View Voice, Proposition 3 would make permanent an income tax on high earners that was originally approved by voters in 2012, renewed in 2016, and is currently scheduled to expire in 2031.

The tax applies to individuals earning more than $371,000 a year or couples earning more than $743,000, maintaining an income tax rate of 12.3%. Since 2012, the levy has generated between $5 billion and $15 billion annually—accounting for up to 15% of overall school revenue. Under California’s Proposition 98 school funding formula, which guarantees 40% of state revenues go to education, 89% of the proceeds go to K-12 schools and 11% to community colleges, with any excess directed to the state’s rainy day fund.

The California Teachers Association (CTA), led by union president David Goldberg, has spent nearly $60 million on advertising and sent members to knock on more than 200,000 doors statewide to pass Proposition 3. Opponents argue that making a temporary Great Recession tax permanent is a "bait-and-switch" that could prompt wealthy residents—including roughly 200 billionaires also targeted by Proposition 40’s one-time 5% wealth tax—to relocate to lower-tax states.

Proposition 38: An $8.4 Billion Immunology Research Bond Costing $12 Billion Over 20 Years

According to The Almanac and Mountain View Voice, Proposition 38 would authorize $8.4 billion in state bonds—costing a total of $12 billion with interest, or about $500 million to $600 million annually for some 20 years according to the Legislative Analyst’s Office—to fund immunology and immunotherapy research targeting Alzheimer’s, cancer, and heart disease.

Half of the $8.4 billion would go to a single institute meeting specific statutory criteria: the California Institute for Immunology and Immunotherapy, whose primary funder is billionaire Gary K. Michelson, who authored Proposition 38 and served as its largest campaign donor. The institute signed an affiliation agreement with UCLA in 2024 promising UCLA 7.5% of net revenue from marketed therapies, with 4 senior UCLA officials on its board. CalMatters reported that as of September, the institute had 3 employees—compared with 51 staffers planned by last year and 90 additional employees projected by next summer—and had spent closer to $20 million compared with more than $200 million projected in its 5-year business plan by mid-2026.

Backers—who outraised opponents $72 million to $12,000 as of October 26 and include Gov. Gavin Newsom, both the California Democratic and Republican parties, the University of California graduate student and post-doctoral researchers union, and lymphoma survivor Andrew Dale—note that 10% of research revenue returns to the state and resulting treatments must be sold to Californians at 20% below the average national price. Opponents, including UC Davis biologist Jonathan Eisen and UCLA researcher Dr. Susan Bookheimer (who has secured over $100 million in National Institutes of Health grants), note that bond-funded research would need to generate more than $120 billion in sales after 20 years for California to recoup its investment. A Public Policy Institute of California (PPIC) poll last week found 57% of likely voters supporting Proposition 38 ahead of a separate $7.5 billion science bond slated for the March 2028 ballot.

Google Requires Explicit K-12 School Opt-In for AI Tools and Google Search

Meanwhile, TechCrunch reported on Tuesday that Google will disable its AI tools—including Gemini, NotebookLM, Gemini in Classroom, and Google Search—for K-12 student accounts next year unless school administrators explicitly turn them on.

Chris Phillips, vice president for education at Google, told The New York Times that because AI features such as AI Overviews are now deeply integrated into Google Search, school districts that choose to restrict AI will also lose student access to Google Search. Google announced the opt-in requirement alongside the classroom rollout of Guided Learning, an AI tutoring tool designed to help students build conceptual understanding rather than receive direct answers.