Arizona Permanent Funds Amendment, Proposition 118 (2012)

Proposition 118
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Type:	Constitutional amendment
Constitution:	Arizona Constitution
Referred by:	Arizona State Legislature
Topic:	State and local government budgets, spending and finance
Status:	a

The Arizona Permanent Amendment, also known as Proposition 118, was on the November 6, 2012 general election ballot in the state of Arizona as a legislatively-referred constitutional amendment, where it was approved. The measure mandated that the annual distribution from the Permanent Fund be 2.5 percent of the average monthly market values of the fund for the immediately preceding five calendar years. This was to take effect from fiscal year 2013 to fiscal year 2021. The formal title of the measure was House Concurrent Resolution 2056.

Election results

See also: 2012 ballot measure election results

The following are official election results:

Arizona Proposition 118
Result		Votes	Percentage
a Yes		950,938	50.52%
No		931,238	49.48%

Results via the Arizona Secretary of State.

Text of the measure

Summary

The summary of the measure read as follows:

“

A Concurrent Resolution proposing an amendment to the Constitution of Arizona; Amending Article X, Section 7, Constitution of Arizona; Relating to the establishment of permanent funds.

”

Support

• State Senator Steve Smith stated, "Prop. 118 allows us to simplify the formula for education funding ensuring that money will be distributed to support K-12 education each year from Arizona ’s Permanent Land Endowment Trust Fund. Best of all, it accomplishes this with NO new taxes and NO additional general fund spending."

The following was one of the arguments that were submitted to the Arizona Secretary of State for the state voter guide. More arguments can be read here:

• "I strongly support Prop 118. There is a special relationship between Arizona's education community, the State Treasurer's Office, and the State Land Department. Public education is by far the largest beneficiary of State Trust Land managed by the State Land Department. Revenues derived from the sale of State Trust Land, as well as the sale of natural products (such as sand, gravel, water and fuel wood), and royalties from mineral materials are deposited in the Permanent Land Endowment Trust Fund managed by the State Treasurer's Office. Today, the State Land Department manages 8.1 million acres of land on behalf of K-12 education, and the Permanent Land Endowment Trust fund is worth more than $3.5 billion. Earning money for Arizona's public schools is the primary mission of the Trust's management. In 2010 the State Land Department deposited $91.7 million in the Endowment. Because of the inadequacy of the current formula used to distribute earnings from the Endowment, K-12 education received no money in 2010. Prop 118 fixes that inadequate formula. Had the new formula been in place in 2010, public education would have received $48 million from the Permanent Land Endowment Trust Fund. Vote 'Yes' on Prop 118."

Submitted by Maria Baier, Arizona State Land Commissioner.

Opposition

• No formal opposition was identified. If you would like to submit information, please contact Al Ortiz, project manager for statewide ballot measures.
• No arguments against the measure were submitted for the state voter guide.

Campaign contributions

Support

The following are contributions made in support of the measure:

Total campaign cash
Support:	$17,673.75
Opposition:	$0

Donor	Amount
Expect More Arizona PAC -- Yes on 118 and 204, Yes on 118	$17,673.75

Opposition

No campaign contributions were made in opposition of the measure, according to state election websites.

Path to the ballot

A majority vote is required in the Arizona State Legislature to send a constitutional amendment to the ballot. Arizona is one of ten states that allow a referred amendment to go on the ballot after a majority vote in one session of the state's legislature.

See also

• Arizona 2012 ballot measures
• 2012 ballot measures
• Arizona Legislature
• List of Arizona ballot measures

External links

• Office of the Secretary of State - 2012 Ballot Measure / Proposition Information