The resolution HCR 2031 seeks to amend the Arizona Constitution to establish a minimum annual distribution rate of 6.9% from the Permanent State School Fund until fiscal year 2036, unless a three-fourths majority in both legislative chambers approves a reduction. This measure is designed to provide stable funding for educational programs and mandates that any increase in earnings from the fund, resulting from a distribution rate exceeding 2.5%, be directed towards a statewide classroom teacher compensation program aimed at improving teacher salaries. The Arizona Legislature is tasked with creating legislation for this program, which will include criteria for differentiating between effective and ineffective teachers, updating salary schedules, and ensuring that the new funds supplement existing teacher compensation.

Additionally, the resolution proposes changes to Article X, Section 7 of the Arizona Constitution regarding the management of state and school lands, establishing separate permanent funds for various grants and prohibiting the transfer of funds between them. It mandates that all funds be invested in safe, interest-bearing securities, overseen by a newly formed board of investment. The earnings from these funds will be allocated to public schools specifically for teacher wage increases, with the superintendent of public instruction ensuring compliance and transparency in the distribution process. The resolution also indicates the legislature's intent to allocate $72 million annually from the state general fund for basic state aid, replacing previous funding requirements, and it will be presented to voters in a special election scheduled for 2025.