Governor Katie Hobbs announced on Wednesday her Prop 123 renewal plan that will raise compensation for every educator and support staff, and improve school safety without raising taxes on Arizonans. The plan will expand on the current Prop 123 funding to continue building a quality public education for the over 90% of Arizona children who attend public schools.
Governor Hobbs’ plan extends Prop 123 for ten years increasing the State Land Trust Permanent Fund distribution to 8.9% with this dedicated split:
- 2.5% of the distribution will continue general school funding ($257 million projected 10-year average distribution)
- 4.4% of the distribution will raise educator compensation ($347 million projected 10-year average distribution)
- 1.5% of the distribution will increase support staff compensation ($118 million projected 10-year average distribution)
- .5% of the distribution will invest in school capital for safety and security ($39 million projected 10-year average distribution)
“We have a once in a decade opportunity to invest in a public education system that gives every child the opportunity to succeed,” said Governor Katie Hobbs. “We can increase compensation for educators and make schools safer for our kids, all without raising taxes on Arizonans. Or we can let billions of dollars accrue in a bank account and do nothing to address our immediate needs. The choice is clear. My plan is a critical step toward ensuring every Arizona child can get a quality and safe public education while addressing our teacher shortage. I look forward to working with Republicans and Democrats in the legislature to send Prop 123 back to the ballot and making these critical investments in public education.”
“I am proud to sponsor Governor Hobbs’ proposal to extend Proposition 123 for an additional 10 years and increase funding for our K-12 schools,” said Senator and former teacher of the year Christine Marsh. “Renewing and expanding this vital funding source for our schools is crucial to ensuring Arizona’s students receive the high quality education they deserve.”
“As a life-long teacher, what drove me and so many of my Democratic colleagues to serve in the legislature has been to increase educator pay and investment in the public schools,” said Representative Judy Schwiebert. “As champions for our children and their schools we know that all educators — from teachers to classroom assistants to school bus drivers — are a team. Without raises for all educators, we will only increase the burden on teachers, parents, and students. More than 90 percent of Arizona families choose public schools and they deserve this investment. Every Arizonan will benefit from the vital workforce our public schools produce.”
The current Prop 123 has triggers to protect the state in the event of an economic downturn such as the ability to reduce funding to public schools. Governor Hobbs’ plan protects critical funding for public education by raising the threshold to enact these triggers to a two-thirds vote.
The Governor’s increased Prop 123 distribution comes as the State Land Trust Corpus has remained strong, growing to nearly $8 billion with an average 10-year annualized return of 7.24%.
