It's called a smart investment for California schools -- an estimated $500 million a year through Proposition 88. The money would come from a parcel tax. Almost all homeowners would pay $50 a year. But opponents argue it would not be a good solution to funding schools.

Teachers in California have long been dipping into their pockets to pay for classroom materials. Supporters of Proposition 88 promise more money to buy materials. The proposed state parcel tax would also go toward class size reduction and programs to make schools safer.

Roughly 10 million California homeowners would be paying $50 a year, equivalent to 14 cents a day to support it.

Ted Penabella of San Jose says that's fair.

Ted Penabella, San Jose resident: "The lesser the kids are in the room, they are more inclined to learn. So $50, I think, is not that much."

The monies would be collected and transferred to a new fund and then distributed to the school districts.

Joshua Trevino is with Pacific Research Institute, a free-market think tank group. He opposes it. He says the $500 million parcel tax represents only one percent of what California already spends on education.

Joshua Trevino, Pacific Research Institute: "It's not enough to make a huge difference, but enough to place an unfair burden on property owners in the state of California."

Melanie Osbourne, a parent, would like to see an even higher state parcel tax.

Melanie Osbourne, San Jose parent: "People are willing to do it for private, but I don't understand why they won't do it for public schools."

Ironically, many school districts don't like it because they claim Prop. 88 would take away from any future parcel taxes which typically bring in more money than Prop. 88 would.

Joshua Trevino: "And they are going to be reluctant to give to their communities in the form of property taxes or similar tax when they have already given to the state on the same account."

Still, it's a start says Jack O'Connell, superintendent of schools, who argues the needs are critical. Public education today is still underfunded.

Elderly and disabled homeowners would be exempt from the $50 parcel tax.

ABC website video clip