Republicans and Hobbs Unveil Competing Proposals to Boost Teacher Salaries

Republican lawmakers in Arizona are advocating for a proposal aimed at increasing teacher salaries by approximately $4,000 annually, without raising taxes. The initiative, led by Sen. J.D. Mesnard and Rep. Matt Gress, seeks to extend Proposition 123, a measure enacted in 2015 that has generated around $3.5 billion for education by utilizing the earnings from the state land trust fund.

As Proposition 123 nears its expiration later this year, state leaders have already reserved tax dollars to offset the anticipated revenue loss. Mesnard emphasized that this creates an opportunity to withdraw from the trust fund for another decade, potentially elevating teacher salaries in Arizona above the national average.

Governor Katie Hobbs also has her plans for extending Proposition 123, aiming to increase withdrawals for not just teacher salaries, but also to support staff, general school funding, and facility improvements. However, the Mesnard-Gress proposal is designed to bypass the necessity for the governor’s approval by presenting it directly to voters, though some collaboration with Hobbs may still be required for implementation.

Opposition has arisen from State Treasurer Kimberly Yee, who questions the financial prudence of both the GOP and Hobbs’ proposals. While Yee acknowledged that previous dire predictions about the trust fund’s performance did not come to fruition, she expressed doubts about maintaining sustainable returns moving forward.

Despite her concerns, Yee lacks the authority to block the proposals outright, but her stance may create uncertainty that could undermine voter support in the upcoming special election. Notably, Proposition 123 passed by a narrow margin of 51-49, even with bipartisan backing.

Teacher pay remains a pivotal issue in Arizona, having improved average salaries from historically low levels since the introduction of Proposition 123. A report from the state Auditor General indicated a 16.5% increase in average salaries over a targeted period, despite the goal of a 20% raise by the 2020-2021 school year. The report highlighted various factors, such as experienced teachers leaving the profession, and showed that not all funds from the 2018 raise mandate were used exclusively for salaries.

Current data from the National Education Association shows that Arizona’s average starting salary stands at $44,124, ranking it 21st nationally, while average salaries for all teachers are at $60,275, positioning the state at 32nd. A recent state Department of Education study found that one-third of teachers in Arizona have four years or less of experience and noted salary issues among factors contributing to teacher attrition.

Should the Mesnard-Gress plan succeed, average teacher salaries could rise to over $64,000, moving Arizona ahead of neighboring states, though still below the national average of $69,597. The plan hinges on the trust fund performances, which have relied on the sale and lease of land granted to Arizona by the federal government at statehood.

Proposition 123 previously increased the withdrawal rate from the trust fund to 6.9%, enabling extensive funding across various educational needs beyond salaries. Mesnard’s vision for the future includes maintaining these higher withdrawals while ensuring that funds are specifically allocated to teacher salaries, addressing the ongoing teacher shortage in the state.

In contrast, Hobbs’ proposal aims to raise the withdrawal rate to 8.9%, which Yee warns could jeopardize the fund’s sustainability. Unlike the Republican plan, Hobbs’ strategy does not mandate that all funds be used exclusively for salaries, instead allowing for broader compensation applications.

While discussions continue over the appropriate withdrawal rate, Mesnard asserts that their proposal includes mechanisms to adapt funding based on market conditions. As the legislative session progresses, a hearing date for both proposals remains undecided, leaving the future of Arizona’s teacher salary structure uncertain.