Voter approval would direct increased school fund earnings toward teacher pay

Increased school land fund earnings would be set aside to raise eligible classroom teachers’ base pay and update salary schedules. The Legislature would set up a statewide program that distinguishes teacher performance, requires reports and audits, and requires schools to update salary schedules. Voters must approve the amendment, and the Governor must proclaim it. The money must come from increased earnings caused by payout rates above 2.5% of the fund’s average monthly market value over the preceding five calendar years. Teachers must work full time, spend most of their time on nonadministrative classroom instruction, and meet or exceed performance requirements. Each receiving school must allocate an equal amount to each eligible teacher. This money must add to teacher compensation from other sources. The requirement to set aside increased earnings would apply until fiscal year 2036–2037.

Arizona and its officers would face limits on reducing the yearly payout rate from the permanent fund tied to school trust lands. The limits cover the permanent fund tied to land granted to Arizona for public schools, supporting kindergarten through high school. Voters must approve the amendment, and the Governor must proclaim it. The provision protects the payout level in place when the section takes effect, with floors tied to the referenced constitutional rates. The floor tied to Article X, section 7(G)(2) allows exceptions under section 7(I), (J), or (K). A reduction below the rate in Article X, section 7(G)(3) would require approval from at least three-fourths of the members of each legislative chamber. The floor tied to Article X, section 7(G)(2) would apply until fiscal year 2035–2036. No end date is stated for the three-fourths vote requirement.