California Teachers Unions Split Over Proposition 40 Billionaire Wealth Tax and School Funding Formulas

Public school teachers, district administrators, and education budget analysts across Pleasant Hill, Martinez, and the Diablo Valley are navigating an unusual split between California's two largest education labor unions over Proposition 40. As reported on Thursday, October 22, 2026, by KALW Public Media, the November ballot initiative proposes a one-time 5 percent wealth tax on California's more than 200 billionaires to backstop health and social programs.

Under the statutory language of Proposition 40, state fiscal analysts estimate the levy could generate tens of billions of dollars in one-time revenue, with 90 percent earmarked for Medi-Cal and public healthcare infrastructure and the remaining 10 percent divided between public K-12 education and food assistance programs. The California Federation of Teachers and the United Educators of San Francisco have formally endorsed the measure, arguing that emergency state revenue is vital to keep low-income students and working families insured and fed as federal safety-net funds tighten.

However, the 310,000-member California Teachers Association has opposed Proposition 40, warning that routing billionaire tax receipts into special dedicated accounts outside the state's general fund bypasses Proposition 98, the constitutional guarantee that typically directs roughly 40 percent of state general fund revenues to K-12 school districts and community colleges. Association policy analysts contend that relying on a one-time wealth levy risks encouraging high-net-worth taxpayers to relocate out of state while leaving districts like Mount Diablo Unified and Contra Costa Community College District with a smaller share of ongoing general fund growth.

Local parent-teacher associations, school board trustees, and school site councils in Pleasant Hill, Concord, and Clayton are hosting nonpartisan ballot forums over the coming week to review how Proposition 40 and competing fiscal measures affect Contra Costa County classrooms. Voters can inspect full fiscal impact statements from the Legislative Analyst's Office through the Contra Costa County Elections Division before casting their November ballots.