California Initiative 25-0016 Permanent Funding for Schools and Healthcare
What This Initiative Does (Plain English)
Makes an existing tax on very high incomes permanent
The tax already exists and is set to expire in 2031
This measure removes the expiration date so funding continues
Real-life example:
Think of it like a local school bond that was approved for 20 years. This measure says: instead of letting it end and risking a budget hole, keep it going so schools can plan long-term.
Who Pays the Tax
Only high-income earners
Rough 2024 income levels (adjusted each year for inflation):
Single filers: about $360,000+
Head of household: about $490,000+
Married filing jointly: about $720,000+
Most Californians do not pay this tax
Why this matters:
The tax targets people most able to absorb it, instead of raising taxes on everyone.
Where the Money Goes
89% → K-12 public schools
11% → Community colleges
Rules on spending:
Local school boards decide how to use the money
Cannot be used for administrative overhead
Focused on classrooms, teachers, students, and programs
Real-life example:
This can pay for smaller class sizes, counselors, tutoring, special education support, and career training at community colleges.
How Much Money Are We Talking About?
Estimated $5 to $15 billion per year
Amount changes with the economy
Without this measure, that money disappears after 2031
Why this matters:
When funding drops suddenly, schools and healthcare programs face cuts, layoffs, or emergency fixes.
Why Supporters Say It’s Needed
Schools and healthcare rely on stable funding
Prevents future budget cliffs
Lets schools plan years ahead instead of year-to-year
Avoids shifting costs onto middle- and low-income taxpayers
Common Questions
Does this raise taxes on me?
No, unless you earn at the very top income levels
Is this a new tax?
No
It keeps an existing tax from expiring
Does the money go into the general fund?
No
It is dedicated primarily to education, with strict rules
What Happens If It Passes
The high-income tax continues permanently
Education and healthcare funding stays in place after 2031
No future vote needed just to keep the current funding
