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Proposition 38 rejected by voters
Voters on Tuesday handily rejected Proposition 38, an initiative raising income taxes on middle- and upper-class households for education.
Wealthy activist Molly Munger and her husband spent more than $47 million on the initiative this year, mostly on statewide advertising that tried to convince voters her measure was most beneficial for California schools.
In mid-October, Munger incurred the wrath of advocates for Gov. Jerry Brown's Proposition 30 when she ran a week of ads criticizing his campaign as "misleading" and for allowing lawmakers to tap the money.
Though Munger had a well-funded campaign, she lacked the institutional support that Brown's enjoyed, plus her measure faced an uphill battle trying to convince middle-class voters to raise their own income taxes.
With about 18 percent of the vote counted, the measure was trailing, 74.5 percent to 25.5 percent.