Bill > HCR2028

This resolution proposes an amendment to Article X, Section 7 of the Arizona Constitution, which governs the establishment, investment, and distribution of permanent funds derived from state land grants. The amendment aims to clarify and modify the rules for managing these funds, which are segregated for specific purposes and invested in safe, interest-bearing, and prudent equity securities. A board of investment will oversee these assets, with limitations on equity investments to ensure capital preservation and long-term returns. The resolution specifically adjusts the percentage of fund value that can be distributed annually, extending a higher distribution rate of 6.9% for fiscal years 2026-2027 through 2035-2036, before reverting to 2.5% thereafter. It also outlines a process for reducing distributions if fund values decline significantly, ensuring that capital is preserved, and specifies that any increased earnings from these distributions are to be appropriated for basic state aid. The legislature retains the authority to enact legislation regarding these funds, and the amendment is intended to supplement, not replace, existing funding for basic state aid, with the goal of increasing funding levels for schools. This proposed amendment will be submitted to the voters for approval.

https://apps.azleg.gov/BillStatus/BillOverview/84408