Support Governor Ducey’s Plan to Fund Education With the Permanent Land Endowment Trust Fund
There is broad Arizonan consensus that our classrooms need additional funds to provide our children the world class learning experience they deserve. Governor Ducey has proposed a common sense alternative to those who would call for tax increases that would only hurt our economy. We must utilize the Permanent Land Endowment Trust Fund.
The Permanent Land Endowment Trust Fund was established under the Arizona Constitution. When Arizona earned statehood, many lands under federal ownership were transferred to the state of Arizona. When those lands are sold to private ownership the funds from those sales are invested for the benefit of all Arizonans.
Over the years the value of the fund has grown and now stands at about $5 billion dollars. The land owned by Arizona under the fund is valued at around $45 billion.
The Fund has always been used to disperse resources for public use in the past, and current law disperses funds at a rate of 2.5% every year. Governor Ducey, who formerly had the responsibility as our Treasurer of managing the Fund, believes the best way to fully meet the needs of our classrooms, without burdening our economy, small businesses, and the people with more taxes, is to utilize more of the Fund to meet our needs today.
Governor Ducey’s plan calls for an investment of an additional $1.8 billion to our schools over a five-year period. This will be drawn from the Fund by adjusting the rate of usage from 2.5% to 10% annually. After the first five years, the rate would then fall to 5% usage, still double the current 2.5%. Even under this increased usage, because of the fund’s rate of growth, it is still forecast to have more money after the initial five years of this proposal than it has today.
In order to enact this proposal, the people of Arizona must vote for it in a referendum. Prosper stands firmly in support and we ask all Arizonans to stand with us and Governor Ducey in pursuing this common sense reform for the benefit of our schools and children.