Voters Reject Proposition 38 Tax For Public Schools

LOS ANGELES (AP) — California voters have rejected Proposition 38, a broad-based income tax increase that would have raised billions of dollars a year for public schools.

The initiative was bankrolled by wealthy civil rights attorney Molly Munger and was widely seen as a threat to Gov. Jerry Brown's own tax increase proposal, Proposition 30.

Munger said after Tuesday night's defeat that it was not the outcome that was hoped for but that transformational change can take a long time.

Munger's proposal would have raised income taxes on nearly everyone on a sliding scale for 12 years, with the wealthy paying the highest rates.

She spent more than $45 million promoting it and had support from the California State PTA, but Proposition 38 never passed the 50 percent threshold in public opinion polls.

"In the fight for Proposition 38, a powerful coalition has begun coming together and a strong movement has been formed," Munger said in a statement Tuesday night. "As we continue this fight, we can and will build on all the good work that has been done.

"Transformational change takes time and we are committed to staying the course until our state truly does tackle this school-funding crisis."

(Copyright 2012 The Associated Press.)