California Can’t Afford Prop 40

"[Prop 40] does not support our public educators. It does not support our teachers and counselors, our librarians. It doesn’t support our first responders and firefighters. It doesn’t support the general fund and parks."

“You don’t need tax policy to be a one-time shot because you need consistent, predictable revenue in order to manage a budget the size of the state of California…I was for 20 years on the Ways and Means Committee in Congress — a tax policy writer. Tax policy has to be predictable, it has to be stable, and it has to understand that it’s interconnected with everything that goes on.” (March 11, 2026)

"[Prop 40]’s uncertain impacts on the state budget and lack of specificity on health care allocations will do more harm than good in the long term. In order to protect access to care for the millions of patients that safety net providers like Planned Parenthood serve, we have opposed this measure and urge our health care partners to do the same."

"It’s unfathomable that proponents of [Prop 40] are claiming their efforts are intended to help Medi-Cal, while at the very same time they are advocating for policies that will decimate the very safety-net and workforce that Medi-Cal patients rely on. Proponents have a long history of promoting flawed and deceptive proposals that actually harm patients. This measure is no different."

"[Prop 40] is the wrong way to address the state's health care funding challenges and was developed without input from the physicians, hospitals, clinics, and other providers who care for Medi-Cal patients every day. [Prop 40] relies on an unstable revenue source, provides no clear accountability for how the money would be spent, and does not offer the long-term funding solution that patients and health care professionals need."

"[Prop 40] raises serious questions about revenue reliability, economic impacts and the long-term consequences for California's tax base. CSBA believes students are best served through durable funding solutions that strengthen educational opportunity while preserving the state's economic competitiveness."

"California’s children deserve a stable, sustainable health care system. The one-time tax proposed by Prop 40 doesn’t provide that stability. Worse, the measure jeopardizes existing revenue that children on Medi-Cal, including those with the most medically complex conditions, rely upon for their care."

"Proposition 40 is the wrong way to address the challenges facing our state. In fact, it will make many of our problems worse, diverting billions of dollars from public schools and putting additional pressure on the budget that could squeeze funding for other essential public services. That’s why we urge Californians to vote No on Proposition 40."

"[Prop 40] will drive away capital when we need it the most, threatening construction jobs, our infrastructure, and California's future. When investment leaves California, critical housing, transportation, school, and water projects leave with it. We can't let that happen."

"While access to health care in California is more precarious than ever, [Prop 40] is simply the wrong answer. This measure would only temporarily generate funding and threaten the overall health of California’s finances over the long term, further jeopardizing resources for life-saving health care services. California can’t afford this poorly designed tax measure."

"California’s working people need more jobs, more investment, and more opportunities — not policies that make it harder to build and grow. This initiative will discourage investment, slow economic activity, and threaten the jobs, wages, and benefits that support union families. We believe in a fair tax structure, but this proposal misses the mark."

"To truly address our affordability crisis, California needs permanent, scaled investments that deliver stable, lasting impact. This measure simply doesn’t achieve that. That’s why Housing California and our partners remain focused on meaningful solutions that advance both health and prosperity: safe and affordable housing, strong schools, quality healthcare, and essential services. The foundation that will make everyday life more affordable and ensure our communities thrive."

"The effort to impose an unprecedented wealth tax is not only misguided but creates a dangerous precedent that will cause more problems than it would ever solve. The risky nature of taxing unrealized gains on shares held by founders of Silicon Valley simply to obtain a one-time infusion of tax revenue that ignores the state’s systemic budget problems. One recent analysis found the exodus of wealthy Californians, along with the resulting trickle-down of those decisions to leave, could shrink government tax revenues by as much as $4.5 billion."