To assess the impact of California's Proposition 13 on the state's schools, the author examines the factors leading to the initiative, analyzes Proposition 13 itself, explores the initial legislative response, and estimates the short- and long-term impact on governmental and educational agencies. His analysis shows the roots of the Proposition 13 "tax revolt" to lie in California's high taxes, the failure of earlier tax relief attempts, public disenchantment with government, and the existence of a large state revenue surplus. After chronicling the 1977-1978 campaign that led to passage of the initiative, the author discusses its impact on state and local government revenues and on public elementary, secondary, and postsecondary schools, and especially on previous attempts to achieve equity in educational finance. A description of the state legislature's subsequent bill shows how it will alleviate Proposition 13's initial impact on state, local, and educational agencies. In the long term, the author asserts, the initiative will markedly reduce governmental and educational revenues, expenditures, programs, and employment and will lead to more centralized decision-making. (RW)