By Jakob Thorington | Arizona Capitol Times
Key Points:
- Key Republican lawmaker says he’s willing to wait until next year to reconsider a Prop. 123 renewal
- GOP lawmakers have not found consensus on the education funding measure
- Democratic Gov. Katie Hobbs is up for reelection this November and has prioritized a Prop. 123 renewal in her budget plan
Gov. Katie Hobbs’ proposed budget includes nearly $300 million in funding for the renewal of Proposition 123, but Republicans at the Legislature have signaled that voters might not get the chance to vote on the renewal question this November.
House Education Committee Chairman Rep. Matt Gress, R-Phoenix, said on April 8 that he thinks the odds of a Prop. 123 deal getting done between Republicans lawmakers and Hobbs this session is “almost zero.”
Prop. 123 is an education funding mechanism that voters passed in a 2016 constitutional amendment. It increases the annual distribution from the State Land Trust Permanent Fund to public K-12 education from 2.5% to 6.9%, which is about $300 million annually, with the express purpose of raising teacher salaries.
Prop. 123 expired in 2025, and lawmakers backfilled the education funding from the measure through the general fund. Hobbs and Democrats have proposed sending a Prop. 123 renewal to voters so the Legislature can restore the money that’s being backfilled to fund education.
