Negotiations are underway at the Arizona Capitol to renew school funding boost

Negotiations have begun over the renewal of Proposition 123, a 2016 ballot measure that increased the amount of money schools receive from the state’s land trust fund.

A spokesman for Democratic Gov. Katie Hobbs confirmed her office has met with Republican lawmakers to discuss Prop. 123, which is set to expire next year. Any potential renewal would need to receive voter approval after being sent to the ballot by the state Legislature.

“Obviously, that renewal campaign will have to happen pretty early in the session,” Hobbs spokesman Christian Slater said.

Last legislative session, Republicans and Democrats floated differing plans to renew the measure that ultimately went nowhere.

Prop. 123 increased the annual draw public schools receive from the land trust from 2.5% of what is in the trust annually to 6.9%. Republican lawmakers introduced a plan early last year that would have asked voters to keep that 6.9% draw in place, though some Republicans sought to lower that amount over concerns that the trust fund could become overextended over time.

Republicans also sought to use all of that money to boost teacher pay.

Democrats, on the other hand, sought to increase the draw from the trust fund above the current 6.9% level and continue to use the money for a wider range of expenses, including teacher and staff pay, safety improvements and general school costs.

Slater declined to comment on the specifics of the ongoing negotiations.

Arizona Chamber of Commerce CEO Danny Seiden confirmed his organization is also involved in the new discussions.

“So we’re trying to figure out what a policy could look like that’s a win for all the stakeholders,” Seiden said. “And that does include the teachers, the school districts and the business community as well as a way of providing money to K-12 without raising taxes.”

Seiden said the chamber has reached out to legislative leadership, as well as the governor’s office, and is working with Republican Rep. Matt Gress, who will chair the House Education Committee next year.