The resolution SCR1027 proposes an amendment to the Arizona Constitution that would affect the distribution rates of the Permanent State School Fund, contingent upon voter approval. Specifically, it seeks to maintain the current annual distribution rate of 6.9 percent through fiscal year 2035, while reverting all other permanent fund distribution rates to 2.5 percent starting in fiscal year 2026. This change is linked to the establishment of a statewide program aimed at increasing the base salary of eligible teachers above the fiscal year 2025 salary levels. If approved, the resolution would also require that any increase in expendable earnings from the Permanent State School Fund during this period be allocated to support the teacher salary program.

Additionally, the resolution outlines the management and investment of the state’s permanent funds, ensuring that they are invested prudently and that distributions are made according to specified percentages based on the average monthly market values of the funds. It includes provisions for the establishment of a board of investment to oversee these funds and mandates that any changes to the distribution rates must be communicated to the Governor and legislative leaders. The resolution emphasizes the importance of maintaining the capital of the permanent funds while also addressing the need for adequate funding for education through teacher salary increases. If the resolution is approved by voters, it will take effect upon proclamation by the Governor.