How Proposition 123 Could Change Arizona School Funding

Arizona families are weighing their choices when it comes to their kids’ education. Compared to the rest of the nation, our schools rank near the bottom on several education markers.

Arizona ranks 49th in the nation for per-pupil spending, investing about $11,987 per student, compared with the national average of $17,840, according to the National Education Association(NEA)
AZPBS.org shares that Arizona has the highest student-to-teacher ratio in the United States. That means teachers generally serve more students than their counterparts in any other state.

students in classroom with teacher presenting — Photo by Quilia on Unsplash

Arizona’s teachers aren’t paid great, either. Statewide, teachers earn an average salary of $64,291, compared with the national average of $74,495. That puts us at around 31st nationally for teacher pay, according to the NEA.
Arizona's public schools serve more than 1.1 million students, and that’s not just public schools. That figure includes about 237,000 charter school students, one of the largest charter school populations in the country, according to the Arizona Department of Education.

A student writing on paper at a desk in a classroom — Photo by Jeswin Thomas on Unsplash

To catch up to the national average, the NEA estimates Arizona would need to increase school funding by nearly 50%. Exhausted educators, stressed-out parents, underserved students—is it any wonder we’re looking for answers to this growing issue?

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What is Arizona’s Proposition 123?

Arizona’s Proposition 123 is, according to Ballotpedia.org, a school-funding measure approved by voters in 2016.

The measure increased funding for Kindergarten through 12th grade by tapping into the state land trust. It increased annual distributions from 2.5% to 6.9% for ten years. That funding ran out last year, and Arizona Governor Katie Hobbs wants to put the measure back into voters’ hands this fall.

Here’s what that means in plain English: Arizona used more of its investment earnings to help schools without raising taxes.

Governor Katie Hobbs now wants to put Prop 123 back on the ballot to extend or renew that funding stream for what she calls “much‑needed support for Arizona’s public schools,” as reported in The New Republic.

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Why Supporters Say It Helps

Supporters say Prop 123 has been an important lifeline for Arizona’s school districts that have faced shrinking funds due to inflation, teacher shortages, and enrollment declines.

Proposition 123:

Sends hundreds of millions into classrooms.
Helps stabilize teacher pay.
Avoids raising taxes.
Gives schools predictable funding while lawmakers fight over budgets.

For families, that can mean fewer school closures, better staffing, and more stable programs. These factors are all major concerns in Arizona right now. With ESA vouchers pulling students (and dollars) out of public schools, renewing Prop 123 could breathe new life into Arizona’s education system.

closeup photo of 100 US dollar banknotes — Photo by Pepi Stojanovski on Unsplash

Why Critics Are Pushing Back

Proposition 123 won’t fix the deeper issues in Arizona's school system, detractors argue. Rather than adding a band-aid, some would like a more in-depth, sustainable fix for the problems plaguing education in our state.

Opponents say Prop 123:

Draws too heavily from the land trust, risking long‑term sustainability. Some worry this measure treats the land trust as a “piggy bank”, and they don't think this is the best approach to fixing the problem.
Doesn’t fix deeper structural issues in Arizona’s school‑funding formula. Adding more funding doesn’t always help if the underlying problems aren't addressed, they argue.
Acts like a temporary patch instead of a real solution. Detractors would like to see permanent changes to some of the foundational troubles, rather than just “throwing money at the problem.”

boy in black hoodie sitting on chair — Photo by Taylor Flowe on Unsplash

Bottom Line: Is Prop 123 Good for Arizona Families?

No matter where you fall on renewing Proposition 123, Arizona’s educAation needs help.

For most Arizona families and schoolchildren, Prop 123 could be considered a net positive: it keeps money flowing into classrooms during closures, teacher shortages, and ESA‑related budget strain.

We all know it’s not a magic fix, but it could bridge the gap and sustain education in Arizona.

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Gallery Credit: Val Davidson/TSM