What’s the Holdup on Renewing Prop 123?
Originally approved by voters in 2016, Proposition 123 was designed as a pragmatic, bipartisan solution to resolve a longstanding school funding dispute and ensure Arizona students and educators received the money they were owed under state law. For a decade, Prop 123 played a critical role in supporting Arizona’s public education system by providing a stable, voter-approved funding stream tied to the State Land Trust.
The best part? Prop 123 represented a bipartisan commitment to invest in Arizona’s future through our students, workforce, and economy.
Yet today, that commitment is at risk.
Prop 123 expired in the summer of 2025. Despite clear urgency and ample opportunity, Arizona lawmakers have failed to renew it. For the past two legislative sessions, this issue has lingered without resolution. The simple solution: Allow voters to decide whether a “clean reauthorization” (a renewal of the same disbursement percentage they approved in 2016) is what the state feels is best for education.
Instead Prop 123 is caught in political crosscurrents, while Arizona’s general fund now has to make up the difference of roughly $300 million each year. The lack of a solution is putting additional strain on the general fund in a year of competing budget priorities. This inaction is unacceptable and, more importantly, sends the message that Arizona students and educators are not a priority at a time when the state is working towards ambitious workforce and attainment goals.
This was never meant to be a controversial or partisan issue. It is a straightforward responsibility of state leadership to ensure continuity in a voter-backed funding mechanism that directly benefits students and classrooms across the state.
Instead, elected officials on both sides of the aisle have allowed politics to stall progress by not sending a measure back to voters over the last two years. In fact, just last week, Republican lawmakers indicated that Prop 123 is unlikely to advance once again during this legislative session.
It’s Time for Action!
Education Forward Arizona is deeply frustrated that a policy solution with such clear precedent has not received the attention it deserves. Renewing Prop 123 should not require prolonged negotiations or political brinkmanship. It should be a baseline priority, an example of government functioning as it should to meet the needs of its people.
Arizona voters and business leaders have already demonstrated their willingness to support education funding through Prop 123 in the past. The ask now is simple: Give them the opportunity to do so again. No additions, no extra language, just refer a clean version of Prop 123 to the ballot and stop the political games. This should not be this difficult.
Bottom line: Our students deserve to have a clean renewal of Prop 123 on the ballot in November 2026 and our business community sees it as a necessity to maintain our workforce development pipeline.
It is time for Arizona lawmakers to set aside political differences, fulfill their responsibility, and act with the urgency and seriousness this issue demands. Arizona’s students, educators, and future workforce cannot afford any more delays.
What you can do: Please contact your State House and Senate officials and let them know that you want to see them take action to get Prop 123 back to voters in November.