Bill > SCR1036

This joint resolution proposes an amendment to the Arizona Constitution regarding the management and distribution of permanent funds, primarily focusing on the state school fund. The resolution modifies the existing rules for investment and distribution of funds, specifically changing the annual distribution percentage from the current rates to 6.9% for fiscal years 2025-2026 through 2034-2035, after which it would return to 2.5%. The amendment establishes a board of investment with specific investment guidelines, including limits on equity investments (no more than 60% of a fund in equities and no more than 5% in securities from a single institution). The resolution includes provisions for potential distribution reductions if fund market values decrease, allowing the legislature to adjust distributions to preserve capital. Additionally, the amendment stipulates that any increased expendable earnings from these distributions should be appropriated for basic state aid, including inflation adjustments. The proposed changes are intended to supplement existing funding for state education and increase the base level of funding, and will be submitted to voters in a special election on August 5, 2025, requiring voter approval to take effect.

Education

https://apps.azleg.gov/BillStatus/BillOverview/83114