PHOENIX — Arizona Gov. Katie Hobbs is calling on lawmakers to invest in the future of the state with the extension and expansion of Prop 123.
Prop 123 was passed by voters in 2015 as a way to funnel more money to Arizona's schools.
That money came from the state land trust, an investment account for the money made off state land sales and leases. It's reinvested to make more money.
"I'm calling on the legislature to join me in ensuring a brighter future for our students, our teachers and our state, it's time to change the status quo," Hobbs said in a news conference Monday announcing legislation to extend Prop 123.
Hobbs said the expansion strengthens Arizona's foundation and invests in the future of students.
The proposal would increase compensation for all educators and support staff at schools, according to Hobbs. It would also increase student safety.
Initially, in 2016 Prop 123 came with a distribution rate of 6.9% that was based on the projection that the state land trust account would have $6.2 billion in it after new funding.
"We are at our best when we have a well-funded public education system where our students have the resources they need to thrive,” Hobbs said.
Hobbs said the state's current thriving economy now exceeds those projections at $7.8 billion as of December 2023. That will allow the new distribution rate of the proposed 8.9%. Hobbs said that provides an additional $1.3 billion for public schools compared to the previous rate.
"Our public schools are the beating heart of this state, they are a place where equal opportunity is not just a principle but a lived reality, where barriers are broken and doors are unlocked," Hobbs said.
The governor said her proposal would not raise taxes and would not jeopardize the health of the state land trust.
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