A Bad Deal for Desperate Teachers
In September of 2015, a proposal, which came to be Proposition 123, was made by the governor of Arizona to raid the school trust fund to settle an unrelated lawsuit known as the Cave Creek Unified School District vs. Duecy for years of underfunding. Desperate school leaders accepted a bad deal that will, in the long run, make matters worse.
Plaintiffs: Cave Creek vs. Duecy
Dark Money and Legal Questions
The No Prop 123 coalition did an admiral job with little resources and almost succeeded in defeating the measure. Prop 123 passed by the narrowest of margins funded by a massive marketing campaign from “dark money.” The election fraught with voter issues was certified on May 26, 2016. Arizona State Treasurer Jeff Dewit brought to light several legal questions, and more are sure to come. Treasurer Dewit, who made a stand on the issue at the cost of his career, was forced to begin payouts in June 2016.
Poor Policymaking
Proposition uses the School Children’s Trust Fund to pay back money to schools owed to them by delinquent politicians from the states general fund. Several former State Treasurers, the Arizona Federation of Teachers, The Arizona League of Women’s Voters and former Arizona Supreme Court Chief Justice Stanley Feldman, among many others, have publicly decried the proposition and carefully explained why raiding the trust fund is such bad policy and the long-term implications.
Opposition to Prop 123
- Jeff DeWit AZ Treasurer Present
- Dean Maritn AZ Treasurer 2007- 2010
- Carol Springer AZ Treasurer 1999-2003
- Clark Dierks AZ Treasurer 1979-1983
- Stanley Feldman AZ Supreme Court Chief Justice 1992-1996
- AZ League of Women’s Voters
- Arguments Filed Against Prop 123
Many educators in Arizona agree that Prop 123 is bad policy but decided to vote in the affirmative as they felt it was the only option and were so desperate for revenue.
“They’re going to take a big chunk of money out of something that was intended to be forever. I think that’s wrong.” Clark Dierks, treasurer 1979-1983
“If you can do this once, you can do this more than once. When times get kind of rough, you can just go tap that pot again. I just think that’s such a violation of the concept of the trust in the first place.” Carol Springer, treasurer 1999-2003
“Prop. 123 may well violate the congressional act that enabled Arizona to become a state and that created the trust.” Stanley Feldman former Arizona Supreme Court Chief Justice
Regrets and Bad Apples
Payouts from Prop 123 have begun, and school is in session once again, and yet Prop 123 seems to linger in the minds of many like the aftertaste of a bad apple. A recent Cronkite News poll from the Arizona Republic and Morrison Institute reports,
“A small but significant slice of voters who helped narrowly pass Proposition 123 this year said they would change their vote on the public-education funding measure if they were voting now”
Dangerous Precedence
We urge school leaders to seek the facts regarding school trust lands, permanent school funds, and the laws governing them. Arizona sets a dangerous precedence of raiding the school trust fund and diminishing revenue for future school children and what happens in one state can affect future laws in other states.
Advocates for School Trust Lands “Empowering states to effectively support prudent management of school trusts.”
There is Always a Better Option
School trusts are a sacred compact and should be regarded as such. There is always a better option and Advocates for School Trust Lands is here to empower educational leaders to protect school trusts. Many legal questions regarding Prop 123 remain to be settled, and only one thing is certain, this will not be the last assault on school trust lands and public education. We must be united. We must be vigilant.