On August 19th, the Arizona Supreme Court issued a ruling on Prop 208 that will likely lead to it being overturned, leaving public schools severely underfunded and undermining the will of Arizona voters.
In November of last year, 52% of voters in Arizona chose to adopt the Invest in Education Act, otherwise known as Prop. 208. Intended to raise more funding for public education in the state, the act adds a 3.5% surcharge on all income greater than $250,000 for individuals or $500,000 for joint filers.
Many organizations in Arizona’s business community challenged the act.
They argued it is unconstitutional because the amount of money the tax would raise for public schools would exceed the constitutional spending cap for education in Arizona.
The court ruled in agreement with many in the business community, stating that the grants Prop. 208 would create for school districts are subject to the expenditure limit that was set decades ago by voters.
This led to the ruling on August 19th where the court decided if the money collected by Prop. 208 is estimated to go over the spending cap, which it likely will, in which case the entire measure will be overturned.
If the act is struck down, it could have a devastating effect on school funding in Arizona, especially small districts like Blue Ridge Unified School District. BRUSD only includes 3 schools: One elementary, one Junior High and one High School.
If Prop. 208 is ruled unconstitutional, this district will lose over four billion dollars in funding – about 30% of their maintenance and operation budget.
Commenting on the legal battle over Prop. 208, the district’s Superintendent, Dr. Michael Wright, stated, “These funds are dearly needed and it’s sad that technicalities and formalities are getting in the way of funding our schools.”
The act has seen a lot of pushback. After it was passed, Arizona Governor Doug Ducey signed a state budget that phased in a flat tax of 2.5% for almost every tax payer in the state.
The state income tax rate cannot exceed 4.5% percent under this new budget, essentially eliminating the impact of Prop 208 on high-income taxpayers who would’ve paid the top tax rate of 8% under the act.
Ducey expressed his feeling about the Supreme Court ruling on his Twitter account saying, “There is a clear legal path to Prop. 208 being knocked down entirely, it’s only a matter of time. Today’s ruling is a very positive one for the state and for taxpayers.”
Carlos Alfaro, the Communications Director for Stand for Children Arizona, disagrees.
Stand for Children Arizona is a nonprofit focused on making sure students have the highest quality education and access to opportunities for good education.
Alfaro feels the Supreme Court ruling is a result of “opposition from a particular group of very powerful political people” and ultimately a violation of the Arizona citizens’ will.
“This act passed at the ballet initiative level because Arizonans believe we need to invest in education and don’t invest enough,” Alfaro said. “They are negating the will of the voters with this supreme court ruling.”
Alfaro believes Arizona citizens will not just accept this ruling. “Teachers, students, families and voters are not just going to sit back. We will fight for Prop. 208 and Red for Ed, now Red for Arizona, to actually have a say in funding for education.”
Contact the reporter at njordan7@asu.edu.
