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Two measures tied to Proposition 123 would lock distributions and create a teacher pay fund, sponsors say
Summary
HCR 2031 would preserve school trust distributions at 6.9% through FY 2036 and require increases above 2.5% to be used for teacher compensation; HCR 2058 would create a teacher pay fund administered by the Department of Education with eligibility and reporting requirements.
Two companion measures presented to the minority caucus would extend aspects of Proposition 123 distributions and create a state teacher pay fund. HCR 2031 (Common Schools Land Trust Distributions) would prohibit reducing annual distributions from the state land trust permanent fund below 6.9% of the fund’s five‑year average market value until FY 2036 unless three‑quarters of the Legislature votes otherwise. HCR 2031 would also require any increase in expendable earnings resulting from a distribution exceeding 2.5% to be appropriated for teacher compensation until FY 2037 and would instruct the Legislature to enact a statewide teacher compensation program meeting specified criteria. The measure directs the secretary of state to submit the proposition to voters at the next general election.
HCR 2058 (Teacher Salary Increases Reporting Schools) would establish a teacher pay fund administered by the Arizona Department of Education. The proposal would require ADE to set procedures for determining school eligibility and allocation calculations, make monies from the teacher pay fund supplemental (not supplanting existing funds), and exempt those monies from the revenue control limit. It would require school districts and charter schools to modify budgets and salary schedules to reflect base salary increases for eligible teachers and prohibit reducing base salaries below the FY 2026 amount except for specified exemptions.
The resolution defines an eligible teacher as a full‑time district or charter employee who devotes more than 75% of their time to nonadministrative instructional activities; special education teachers must devote at least 50% of time to supporting student academic achievement to be eligible. Administrators and employees who have been placed in either of the two lowest performance classifications after evaluation would be excluded, according to the presenter (Magdalen, staff member).
A caucus member criticized HCR 2031 for lacking negotiation with education stakeholders and said HCR 2058 “disregards counselors, paraprofessionals, bus drivers, cafeteria workers, and special education teachers,” and said the bill sponsor had misstated how public schools spend on staff. “That is also untrue. Arizona has a very low cost percentage for their administration costs. So, I just disagree with this entire bill,” the member said. Those remarks were made during caucus discussion and attributed in the transcript to a member of the caucus (unnamed).
Both measures, as described in caucus, would be placed on the ballot by the secretary of state if advanced; HCR 2058’s teacher pay fund also adds reporting and auditing roles for the state treasurer, JLBC staff and the Auditor General. The presenter stated the measures received strike‑everything amendments in House Appropriations and would be submitted to voters at the next general election. No formal caucus vote on either resolution was recorded in the transcript.
