Brown’s plan to rescue schools on winning path; Prop. 38 defeated

Overcoming decades of anti- tax sentiment in California, Gov. Jerry Brown’s Proposition 30 — billed as a tax hike to rescue the state’s schools— was headed for a narrow victory Tuesday.

“I know a lot of people had some doubts and some questions: Can you really go to the people and ask them to vote for a tax?” Brown told supporters as the measure inched into the “yes” column just after 11 p. m. “Here we are. … We have a vote of the people, I think the only state in the country that says let’s raise our taxes, for our kids for our schools, and for our California dream.”

While Proposition 30 was on pace to pass by a slight margin, two other tax measures were more lopsided: Proposition 38, a competing tax- for- schools measure, was soundly defeated, while Proposition 39, which forces big businesses to pay more taxes, won comfortably.

With about half of precincts partially reporting, results showed the Bay Area, Los Angeles and coastal areas supporting the measure while inland and rural areas were rejecting it.

Brown has made Proposition 30 the hallmark of his administration, spending the year trying to convince voters that California schools have reached a breaking point and need taxpayers to come to the rescue. It seeks to raise $ 6 billion annually for education and the state budget by increasing the sales tax by a quarter- cent for four years and raising income taxes on the wealthy by up to 3 percent for seven years.

“It sold itself,” he said at a victory party in Sacramento. “The core reason it brought people together was a belief in schools and universities and the capacity of government to make wise investments that benefit all of us.”

The governor has repeatedly promised that rejecting Proposition 30 would mean $ 6 billion in fresh cuts to schools starting Jan. 1 — threatening to shorten the K- 12 school year and raise tuition at public universities again.

Kevin Thompson, a teacher in Union School District in San Jose, took time off from teaching to campaign for the measure. “The early returns look really good,” he said. “I think the message is out, that this is the way we’re going to invest in our students and our schools.”

Meanwhile, wealthy attorney Molly Munger’s Proposition 38, a competing tax forschools measure, trailed badly, as expected, despite Munger providing most of the money for the $ 48 million campaign. Proposition 38 sought to raise $ 10 billion, mostly for K- 12 schools, by raising the income tax on the wealthy and middle class, who bristled at the idea of hiking their own taxes by hundreds of dollars a year.

“Win or lose, Molly Munger put public education back on the front burner,” said Nathan Ballard, a spokesman for Yes on 38.

However, a third tax measure, Proposition 39, passed as expected, closing a loophole that allowed big multistate businesses to pay fewer state taxes. The result could add $ 1 billion a year in new revenues to the state. Bay Area hedge fund manager Tom Steyer bankrolled nearly the entire $ 39 million campaign for Proposition 39, which voters approved overwhelmingly.

But deep into the night Tuesday, all eyes were on Proposition 30.

Supporters led by teachers, other employee unions, Democratic politicians and even some businesses waged a $ 40 million campaign. Brown personally campaigned around the state in recent weeks and has staked his political reputation on the measure as his top priority during his current term.

Principal Amy Caroza estimated that Coliseum College Prep Academy in Oakland would have lost $ 200,000 if Proposition 30 failed and said she didn’t know how the school would offset that loss.

Voters have spent the last two decades rejecting one tax hike after another, and many voters either didn’t believe Brown that the cuts would happen or thought the state should make due with the money it has. They also continue to be skeptical of state government and think new projects like the $ 69 billion high- speed rail line are a waste when the state needs more for schools and public safety.

In addition to anti- tax groups and conservatives, Munger briefly launched attack ads on Proposition 30 last month while a group with ties to the Koch brothers donated millions of dollars to defeat the measure.

“Weare grateful for all the hard work from thousands of small business owners, taxpayers and many groups from around the state in helping us communicate our ‘ no on 30’ messages to voters,” the No on 30 campaign said in a statement.