11-02-2025
No timeline for Prop. 123 renewal plan
GOP lawmakers have a starting point for negotiations on a Proposition 123 renewal plan that would increase teacher pay, but no timeline for when they'll move forward.
Catch up quick: Voters approved the original Prop. 123 in a 2016 special election.
The plan, which ended years of litigation over K-12 funding, increased school disbursements from the state's land trust fund.
That expires at the beginning of July.
The big picture: Sen. J.D. Mesnard, R-Chandler, and Rep. Matt Gress, R-Phoenix, introduced identical proposals at the end of January to renew the plan.
Mesnard told Axios that the latest draft is a placeholder while lawmakers work out the details.
State of play: Mesnard said there are no details for when a Prop. 123 renewal will go up for a committee vote.
The only time constraint lawmakers face is the Feb. 21 deadline for bills to receive committee hearings in their original chamber.
If lawmakers can't reach an agreement soon, Mesnard said they'll have to pass a bill out of committee with the understanding it'll be amended.
Friction point: There are several variables lawmakers must work out before sending something to the ballot.
Whether they increase the 6.9% disbursement rate from the land trust fund.
Whether they go with another temporary plan or make it permanent.
Whether they put it on the November 2026 ballot or pursue a special election this year.
Whether they increase pay only for teachers or school support staff, too.
The intrigue: Republicans largely support using the Prop. 123 money to increase teacher pay but not support staff, while Gov. Katie Hobbs and other Democrats have advocated for higher salaries for everyone.
GOP lawmakers can send a renewal plan to the 2026 ballot on their own but need the governor's approval if they want a special election.
But because the expiring Prop. 123 will be backfilled in the next budget, no funding cliff would necessitate a special election.
Mesnard said there's a "strong preference" among Republicans for a teacher-only plan, but he also wants broad enough support to ensure it passes at the ballot, noting the original Prop. 123 election was a nail-biter.
What they're saying: "I'm going to be as open-minded as I can," with the understanding that most if not all Republican legislators want to focus on teacher pay to ensure the pay raise is meaningful, Mesnard said.
The other side: The Hobbs administration is in negotiations with stakeholders and lawmakers in the hope of reaching "a bipartisan solution that raises teacher pay, funds our schools and delivers a high-quality education," gubernatorial spokesperson Christian Slater said.
