Arizona Lawmakers Aim to Revive Proposition 123 for School Funding
As Arizona’s schools grapple with funding challenges, state legislators are preparing for another attempt to renew Proposition 123. This critical measure, which once boosted school funding through the state’s land trust, expired recently, leaving schools without an essential $300 million annual contribution.
Originally approved in 2016, Proposition 123 increased the annual draw from the land trust fund from 2.5% to 6.9% for ten years, significantly enhancing the financial resources available for K-12 education. However, with the measure’s expiration last year, and no renewal proposal reaching voters, the future of school funding remains uncertain.
Although the state budget temporarily compensated for this shortfall, discussions between lawmakers and Governor Katie Hobbs have been ongoing since November 2023. At that time, a Republican initiative aimed to allocate these funds for $4,000 teacher raises, sparking debates over how a renewed Proposition 123 should allocate resources. Read more about the proposal here.
Renewal Efforts and Legislative Hurdles
Despite previous stalemates, both parties express optimism for reaching a consensus by 2026. Governor Hobbs highlighted ongoing discussions: “We’re having conversations with the stakeholder groups, with the Republicans in terms of what their plan might look like,” she stated. However, no renewal bill has been introduced in the current legislative session.
Senator J.D. Mesnard, a key advocate for the renewal, intends to propose a new resolution. He emphasized a cautious approach, recalling past negotiation challenges: “I don’t want to keep suggesting to people that we’re moving if we’re not truly moving,” Mesnard remarked.
Contentious Issues and Political Divide
Earlier discussions showed progress when both sides agreed to maintain the draw at 6.9%. Nevertheless, significant disagreements persist, particularly regarding fund allocation. Republicans advocate for directing all funds toward teacher raises, while Democrats, including Hobbs, propose broader expenditure, such as support staff raises and security improvements. Learn more about the proposals here.
Additionally, the inclusion of protections for the state’s school voucher program remains a divisive issue, with Republicans pushing for constitutional safeguards. “I think when you muddy the waters with constitutional protections for the ESA program or whatever else, then you lower the chances of it passing at the ballot,” Hobbs commented, referencing the Empowerment Scholarship Accounts program.
Though Governor Hobbs opposes expanding the voucher program, which currently serves nearly 100,000 students at an annual cost of $1 billion, lawmakers could bypass her approval to put a new Proposition 123 on the ballot. The previous passage of Proposition 123 narrowly succeeded, aided by former Governor Doug Ducey’s support.
