Gov. Katie Hobbs announced on Tuesday that she wants to raise the pay of Arizona school staff by increasing the amount of money drawn from the state land trust.
Voters first approved Proposition 123 in 2016. The measure distributes 6.9% of the money from the state land trust to K-12 schools for various purposes.
But Prop. 123 will expire in 2025 unless voters approve a continuation for another decade.
Republican lawmakers first proposed in Novembera vote to renew Prop. 123, as well as changes to funnel all money drawn from the state land trust to classroom teachers.
“I appreciate that the governor is embracing our idea to provide teacher pay raises,” Senate President Warren Petersen (R-Gilbert) said in a text. “While we appreciate her input on the matter as a referral to the ballot, the issue is solely at the discretion of the legislature, subject to voter approval.”
At the time, Hobbs’ spokesperson Christian Slater called the Republicans’ plan “half-baked.”
Hobbs’ version of a Prop. 123 renewal would instead boost pay for school support staff and teachers. The governor also proposes increasing the percentage drawn from the state land trust to 8.9%.
An estimated $465 million would go to teacher and staff pay, accounting for 5.9% of the funds.
The rest of the money would go to general school funding (2.5%), and school capital for safety (0.5%). The general and capital funds are projected to add $296 million.
“My No. 1 priority is to raise pay for classroom teachers — we have a teacher shortage. Surely that’s something we should be able to find bipartisan agreement on. As for any increases in the distribution, they need to be carefully studied, with input from the Treasurer's Office,” Rep. Matt Gress (R-Phoenix) said in a text.
Republican State Treasurer Kimberly Yee said Hobbs’ plan to draw more money from the land trust will “break the bank” in a statement issued shortly after Hobbs’ announcement.
“Governor Hobbs wants to raid the land trust to cover for her mismanagement of the state budget and overzealous spending plans,” Yee wrote. She said her office recommends only a 4%-5% distribution of funds from the trust.
“My office has not reported a 10-year return above 8.9% in nearly two years,” Yee said.
