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What is Prop 123?

Posted By Gabriel Salcido, Arizona Small Business Association, Tuesday, May 10, 2016

Prop 123 is a ballot measure that, if it passes, will settle a years-long lawsuit and put $3.5 billion into Arizona’s K-12 public schools over the next 10 years without raising taxes.

The majority of the $3.5 billion funding comes from Arizona’s state land trust fund, an invested account that earns income annually and has nearly doubled in value over the past five years.

Voting YES on Prop 123…

  • Injects an additional $3.5 billion into public schools over the next 10 years
  • Doesn’t raise taxes
  • Protects future generations of students
  • Keeps quality teachers in Arizona

How does that work?

How Prop 123 Land Trust Works-01 copy

Arizona’s Permanent Land Endowment Trust Fund is currently worth $5 billion, and the trust earns money each year. Right now, 2.5% of the value of the trust is paid on an annual basis to beneficiaries like K-12 public schools, which own the majority of the trust. A YES vote on Prop 123 would increase the distribution amount to 6.9% from 2.5% for 10 years.


What about future generations?


The nonpartisan Joint Legislative Budget Committee projects that the land trust will grow by more than $1 billion over the next ten years under Prop 123. That means we will maintain the health of the trust to fund future generations of students, the way the trust was intended.

Not only will the land trust continue to grow through the investment of the current funds, it will also grow through the sale of state lands. Right now, Arizona has over 9.2 million acres of unsold trust land worth over $70 billion backing up the current $5 billion trust. As lands are sold over the years, the proceeds will add to the fund, growing the available dollars for education as intended by Arizona’s founders.

What are the benefits?

Increases Classroom Spending.
 $3.5 billion in new money over the next decade will have a real impact on schools. Prop 123 puts more dollars into the classroom, where teachers can make a difference for students.



Keeps Quality Teachers. 
Teachers are fleeing Arizona because of a lack of financial support for education. This will reverse that trend and help pay our teachers what they deserve.



Diverse elementary students in the classroom

Takes A Good First Step. 
Prop 123 is a great first step that brings immediate and sustained funding into the public school system while protecting the trust for future generations of students.




Tags:  Access to Capital  education  public policy 

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