Bill > SCR1045

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 modify the percentage of these funds that can be distributed annually for specific purposes, particularly for basic state aid to schools. It outlines how these permanent funds, which are to be segregated for their original purposes and invested prudently in safe, interest-bearing, and equity securities, will have their earnings and capital gains credited back to the fund. The resolution specifies a new distribution rate of 6.9% for fiscal years 2026-2027 through 2035-2036, and then a return to 2.5% thereafter, with provisions for potential reductions if fund values decrease significantly to protect the principal. Any increase in distributions above 2.5% during the specified period is intended to supplement, not replace, existing funding for basic state aid and increase school funding levels. The amendment also clarifies that any reductions in distributions are not required to be repaid and preserves the legislature's authority in managing these funds. Finally, it directs the Secretary of State to submit this proposed constitutional amendment to the voters for approval.

Education

https://apps.azleg.gov/BillStatus/BillOverview/85342