Proposition 123 Overview

Expect More Arizona is… A statewide nonpartisan organization dedicated to ensuring every Arizona child receives a world-class education, from the early years through college and career

Arizona Voters Say… education is education is #1 Above immigration & the economy school funding & teacher pay Are the top two education issues

Arizona’s Current Education Funding Picture

Where Funding Stands Over $3 billion was cut from K-12 during the Great Recession (23% between ) Maricopa and Pima Community Colleges were zeroed out of the state budget in FY16 State funding for public universities dropped – 47% during the recession ( ) – the highest of any state in the nation

Impact of Great Recession to K-12 (Since FY09) AmountDescription -$144MCapital outlay revenue limit -$676.4MSoft capital -$239MDistrict additional assistance -$218.3MElimination of full day Kindergarten -$70M (only -$29M to state) Career ladder phase out -$183MExcess utilities -$1.6BBuilding renewal

Result of Insufficient Resources to K-12 Impact to student learning School closures Teacher/instructional support layoffs, low teacher pay 4 day school week School building conditions deteriorate Elimination of full-day Kindergarten Elimination of CTE offerings Larger class sizes Stronger reliance on bonds/overrides

Proposition 123 Overview

Proposition 123 Voter referendum that proposes to add $3.5B over 10 years to education Settles the K-12 education inflation funding lawsuit Will be considered by voters in a special election on May 17

Funding Sources Funding comes from State Land Trust (60%) and from General Fund (40%) Increases payout of State Land Trust from 2.5% to 6.9% $50M from general fund for 5 years, $75M for 5 years following

What is the State Land Trust? When Arizona became a state, Congress granted land to the state that are managed for the purpose of generating revenue primarily for K-12 education. Long-term savings account for Arizona education.

Proposition 123 Overview: Raises the base level of per pupil funding (from $3, to $3,600) Guarantees permanent inflation adjustments Funds begin flowing in June 2016 Locally elected school boards decided how the funding is used Public district and charter schools receive the same funding amounts per pupil

Proposition 123 Overview: Includes measures to manage the general fund in severe economic downturns Ends the inflation funding lawsuit

Inflation Funding Lawsuit Voters passed Prop 301 in 2000 that required inflation each year Starting in 2010, during the recession, the Legislature did not fund inflation Agreement by parties involved led to a Special Session in October 2015 Legislation increases funding from general fund Voter referendum = Prop 123

How will Funds Be Used? Schools and districts decide how to use the funds Many are developing two budgets for consideration – one assuming Prop 123 passes and one that does not Many will use the funds for teacher salaries and benefits Other uses could include: smaller class sizes, up to date textbooks, technology, full day Kindergarten

If Prop 123 passes: Generates $3.5 billion over 10 years for Arizona schools Settles the five year inflation funding lawsuit Provides funding to schools starting in June Raises the base level of per pupil funding Guarantees that education funding will adjust for inflation each year

What Happens if Prop 123 is unsuccessful? No additional funding for schools The inflation funding lawsuit will continue State Land Trust payout remains at the current level

However, Significant Gaps in Funding Remain Estimated impact keeps Arizona at 48 th in per pupil funding (source: ASBA)

Important Dates April 18 – last day to register or update registration for the Special Election April 20 – early voting begins for Special Election May 12 – mail back ballot for Special Election May 17 – Special Election Day

Join Us Join the Movement Vote May 17 – Special Election 2016 Primary and General Election Sign Up in the Request to Speak system

Thank You!