Democratic lawmakers, Hobbs send different messages on Prop. 123 renewal

Republican lawmakers and Democratic Gov. Katie Hobbs are still confident they can come to a deal this year to ask voters to renew a key education funding measure, but some Democratic lawmakers are tired of waiting.

On Monday, Democrats in the Arizona Senate unsuccessfully attempted to force a vote on a bill that would ask voters to renew Proposition 123, which provides extra money for an array of school expenses. The measure, first approved by voters in 2016, boosts the share of money from the state land trust fund directed to K-12 public schools from 2.5% to 6.9% every year.

Prop. 123, which provides hundreds of millions to schools annually, is set to expire at the end of June, though the law requires the state’s general fund to backfill the approximately $300 million it would have provided schools next year if it is not renewed in time.

Republicans and Hobbs have talked about sending a renewal package to voters for well over a year but, so far, that hasn’t happened.

“Democrats want to find compromise for our students, not at the expense of our students,” Sen. Eva Diaz (D-Tolleson) said in a statement. “That is why I introduced this clean Prop. 123 referral to the ballot to provide a pathway forward and I am beyond disappointed that Republicans blocked this vote."

Diaz sponsored a bill that would renew Prop. 123 for another 10 years with no new conditions attached.

Republicans, meanwhile, want to direct all new Prop. 123 money toward teacher pay raises. Hobbs released her own plan that is mostly in line with the GOP proposal and would direct a lion's share of the new money to teachers, though it would also provide some funding for general school expenses.

Unlike Senate Democrats, Republicans and Hobbs are signaling that they are close to a deal.

“We're on a deadline of 2026, so there's still time, and I'm confident with how the negotiations are going,” Hobbs said hours before Senate Democrats attempted to force a vote on Diaz’s measure.

Rep. Matt Gress (R-Phoenix), who chairs the House Education committee, said he is confident lawmakers will vote on a Prop. 123 renewal at some point this month, though he noted that other budget fights with the governor could complicate that timeline.

“What we're doing in the House is briefing our members, our Republican members, on a proposal that we're putting together,” Gress said. “It's something that we're working very closely with the Senate on and we want to remain on the same page.”