Governor Hobbs Unveils Her Version of a Prop 123 Extension to Help Teachers

Governor Katie Hobbs has released her proposal to extend Proposition 123, a Ducey-led measure from 2016 to use contributions from the State Land Trust to increase aid to Arizona Public Schools.

In the current version of Prop 123, the plan trust currently contributes 6.9 percent of its revenues, to help public schools.

This fiscal year, according to AZ Mirror, the trust will contribute about $424 million to the state’s public schools.

The Governor’s plan would up that contribution to 8.9 percent and, according to a Gubernatorial Press Release, would be allocated in the following distribution:

• 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)

The Governor’s plan also changes the voting trigger to reduce funding from the trust in case of an economic downturn to a two-thirds majority (which is kind of fair play considering Republicans insist on that voting margin to pass a tax increase.)

Honestly, the Governor’s proposal resembles, thankfully, a mini-me version of Invest in Ed that Republican jurists struck down after the people voted for it in 2020.

Republicans unveiled their goals to extend Proposition 123 last November. Their version keeps the current 6.9 percent rate but, unlike the Governor’s proposal, is only earmarked for teacher raises.

Commenting on her proposed extension, Governor Hobbs, in the aforementioned press release, relayed:

“We have a once-in-a-decade opportunity to invest in a public education system that gives every child the opportunity to succeed. 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.”

The press release also included statements from two Democratic Pro Public Education Teachers and Legislators.

State Senator Christine Marsh offered:

“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. Renewing and expanding this vital funding source for our schools is crucial to ensuring Arizona’s students receive the high-quality education they deserve.”

State Representative and Senate Candidate Judy Schweibert commented:

“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. 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.”

Later in the day, Marisol Garcia, the head of the Arizona Education Association said in a statement:

“As an eighth-grade social studies teacher, I know how deeply committed educators are to ensuring that all of our students succeed. Classroom teachers, speech-language pathologists, librarians, classroom aides, bus drivers – all of us work hard to ensure the best possible education for every child, no matter who they are, where they were born, or where they live. But it’s become increasingly difficult to deliver on that vision amid ongoing shortages of teachers, bus drivers, classroom aides, and more. Educator retention is a crisis in Arizona, and it needs to be treated as such.

In light of that, I was glad to see Governor Katie Hobbs release a proposal today that would deliver raises for all educators, as well as school safety improvements, through a renewal of Proposition 123.

Arizonans of all political persuasions recognize the need to act on educator pay, and there is no reason for this to be a Democratic or a Republican issue. Our union looks forward to reviewing all of the details of this proposal, and to working with legislators of all parties to ensure that we replace Proposition 123 with something that includes every educator, from the person who opens the building in the morning to the person who locks up the building at night.”

According to AZ Central, Arizona Treasurer Kimberly Yee said the Governor’s proposal was “dangerous and unsustainable” and “would break the bank” and has recommended the Land Trust contribute four to five percent of its revenues.

For the math whizzes out there, that proposal would constitute a decrease from the current land trust’s 6.9 percent contribution.

Yee’s recommended contribution number will probably be dead on arrival even to the Republican majority that called for keeping the extension at 6.9 percent in their own proposal.

No one is going to send a Proposition to the voters in an election year that would shortchange public schools from what is already allowed.

As Stacey Barchenger at AZ Central noted, the Legislature can refer the Proposition 123 extension without the Governor’s signature but it would be a heavy lift to get the people’s support behind it if the Governor does not support what is on the ballot.

Let the negotiations begin.