Governor Ducey's Plan To Put $2 Billion In Our Schools
June 8, 2015
Governor Doug Ducey has announced a fiscally-sound, responsible spending plan that would inject $1.8 billion into K-12 schools over five years -- without burdening the state budget or raising taxes on Arizonans.
Here’s how it works:
- In 2012, then-State Treasurer Ducey created and championed Prop 118, a measure that simplified how schools receive funds from the state's land trust in order to ensure more consistent, reliable funding to K-12 schools.
- The percentage that was set for distribution was 2.5 percent each year, with 93 percent of that money going to K-12 education.
- Governor Ducey's new proposal would increase the current distribution formula from 2.5 percent to 10 percent for a period of five years. If approved, the governor's plan would give schools about $1.8 billion more than they would receive under the current formula in the first five years. After that, the formula would shift to 5 percent for the following five years -- double the current rate.
- Governor Ducey has called on the Legislature to take up this proposal and refer it to the ballot for voters to approve.
How much money are we talking about?
What is the state land trust?
More than a century ago, Arizona’s leaders set up a trust – the state’s Permanent Land Endowment Trust Fund. These are lands our nation entrusted to Arizona for the benefit of public K-12 education.
The Land Trust continues to grow and earn interest today.
Dollars are then distributed to beneficiaries – mainly to public K-12 education.
That was the vision at its inception – that these funds go to our schools, our teachers, our kids.
How does the plan impact the state land trust fund?
The amount of money in the state land trust fund would increase from our current $5.15 billion to $5.39 billion after five years (FY2021).
That means even distributing more money, we'll still have more money in the fund than we do today.