Hobbs releases Prop 123 renewal plan to provide raises for Arizona teachers

Jan 16, 2024, 4:43 PM

(Photo by Michael Loccisano/Getty Images)...

(Photo by Michael Loccisano/Getty Images)

(Photo by Michael Loccisano/Getty Images)

PHOENIX — Gov. Katie Hobbs on Tuesday released her plan to renew Prop 123, which would provide raises for Arizona teachers and other education funding past its 2025 expiration.

The plan would expand on current Prop 123 funding by extending the measure, which was approved by voters in 2016, by a decade. Distribution from the State Land Trust Permanent Fund — how Prop 123 is funded — would also increase under Hobbs’ plan.

“We have a once in a decade opportunity to invest in a public education system that gives every child the opportunity to succeed,” Hobbs said in a press release.

“We can increase compensation for educators and make schools safer for our kids, all without raising taxes on Arizonans.”

What are the details of Hobbs’ Prop 123 renewal plan?

Distribution would be increased to 8.9% under the Democrat’s proposal, up from 6.9%.

Here’s the breakdown of the funding:

• 2.5% of the distribution would continue general school funding (projected $257 million average over 10 years).
• 4.4% of the distribution would raise educator compensation (projected $347 million average over 10 years).
• 1.5% of the distribution would increase support staff compensation (projected $118 million average over 10 years).
• 0.5% of the distribution would invest in school capital for safety and security (Projected $39 million average over 10 years).

Hobbs said her plan would not require tax increases.

“The choice is clear,” Hobbs said. “My plan is a critical step toward ensuring every Arizona child can get a quality and safe public education while addressing our teacher shortage.”

Republican response to Hobbs’ Prop 123 plan

An extension of Prop 123 would need to make it on the 2024 general election ballot and be approved by voters.

Arizona Treasurer Kimberly Yee, a Republican, called Hobbs’ plan “dangerous and unsustainable.”

“It would break the bank,” Yee said in a statement. “Governor Hobbs wants to raid the land trust to cover for her mismanagement of the state budget and overzealous spending plans in an ever-increasing inflationary environment.

“That is irresponsible and doesn’t look out for the long-term vision of Arizona, and this land trust was put in place for our state’s future.”

The State Land Trust Corpus has grown to nearly $8 billion with an average 10-year annual return of 7.24%. Yee said that forecasters predict a 5.45% return on that over the next decade.

Yee recommends a 4-5% distribution.

“In short, this means an increase to 8.9% is unfeasible based on past performance,” Yee said.

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

Water conservation rebate program expanding in city of Surprise...

Serena O'Sullivan

City of Surprise offering new water rebates for turf removal, landscapes and irrigation controllers

The city of Surprise is expanding its water conservation rebate program. These rebates are available through May 1, 2026.

5 hours ago

Fatal Phoenix hit-and-run still at large, MCSO says...

Serena O'Sullivan

Truck driver who struck jogger in fatal hit-and-run still at large, MCSO says

A jogger died after a hit-and-run in New River on Saturday at around 10 a.m. Officials have found the vehicle but not the suspect.

7 hours ago

Phoenix apartment complex pool...

Child in critical condition after being pulled from Phoenix apartment complex pool

A four-year-old girl is in critical condition after drowning in a Phoenix apartment complex pool on Sunday afternoon, officials said.

9 hours ago

Ted Kleca was last seen on Sunday at around 3 a.m., officials said. (Chandler Police Department pho...

Serena O'Sullivan

Silver Alert issued for missing Chandler man with cognitive condition

The Arizona Department of Public Safety issued a Silver Alert on Sunday for a 76-year-old Chandler man with a cognitive condition.

9 hours ago

A portion of UnitedHealth Group Inc.'s campus in Minnetonka, Minn. (AP Photo/Jim Mone, File)...

Tom Kuebel

Cyber attack on health insurance provider could prevent Arizonans from getting prescriptions

A cyber attack against Change Healthcare has prevented some patients from being able to fill prescriptions at local pharmacies.

10 hours ago

File photo of a Valley Metro Tempe Streetcar. Officials are encouraging people to use mass transit ...

1 woman killed, another injured in crash involving a light rail train in Phoenix

One woman was killed and another was injured in a crash involving a light rail car in Phoenix on Saturday night.

12 hours ago

Sponsored Articles


Day & Night Air Conditioning, Heating and Plumbing

Day & Night is looking for the oldest AC in the Valley

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.


Collins Comfort Masters

Avoid a potential emergency and get your home’s heating and furnace safety checked

With the weather getting colder throughout the Valley, the best time to make sure your heating is all up to date is now. 


Sanderson Ford

The best ways to honor our heroes on Veterans Day and give back to the community

Veterans Day is fast approaching and there's no better way to support our veterans than to donate to the Military Assistance Mission.

Hobbs releases Prop 123 renewal plan to provide raises for Arizona teachers