Proposition to support teacher raises will expire if it isn’t extended soon, Arizona governor says

PHOENIX — Arizona Gov. Katie Hobbs is urging state lawmakers to take swift action on a proposition that would pay for raises for teachers.

“Prop 123 was passed by the voters in 2016. This was additional funding from the state land trust to fund education,” Hobbs told KTAR News 92.3 FM’s Outspoken with Bruce and Gaydos on Tuesday.

This old law, which increases public education funding using money from the State Land Fund, is set to expire in July. Hobbs now wants to come up with a new version to put before voters.

“It’s really critical that we get it done this year,” Hobbs said. “We released a new proposal last week that has been very well received, I think, by both sides.”

What’s the governor’s idea of a Prop 123 extension?

Hobbs and GOP lawmakers both want to get some form of a Prop 123 extension on the ballot, but they differ over the details.

Hobbs wants to deliver $317 million to schools in the 2026 fiscal year. Her plan would create a permanent funding source for teacher pay, according to the Arizona School Boards Association.

Hobbs’ plan would ensure a permanent 5.5% State Land Trust distribution rate. This would maintain the 2.5% base distribution requirements and place proceeds from the 3% distribution into the Classroom Site Fund to provide increases to teacher pay.

Her plan would also add an additional 10-year distribution rate of 1.4%. This would pave the way for funds to be used to increase base level funding, which would add around $101 million in school funding for the 2026 fiscal year.

How is Prop 123 extension effort going?

Hobbs said she’s in talks with Republican state legislators J.D. Mesnard, a senator, and Matt Gress, a representative, to get her proposed extension passed.

“I know that Sen. Mesnard and Rep. Gress are kind of leading the charges for their caucuses, and we’ve been talking with them,” Hobbs said. “I’m hopeful we can get something moved through soon.”

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