Arizona voters approve Prop. 208, education tax on state's highest earners

Arizona voters have approved Proposition 208, a measure that would raise money for educator salaries by taxing the state's highest earners.

The measure, also known as the Invest in Education Act, will raise revenue primarily for educator salaries by adding a 3.5% tax surcharge on taxable income over $250,000 for individuals and $500,000 for couples. A small fraction of taxpayers would be affected. 

The Associated Press declared the measure a winner shortly after 8 p.m. Thursday. 

Proposition 208's leaders said at a news conference Tuesday night they believed the measure would earn voters' approval.

"Voters agree that strong schools mean a strong economy," said Rebecca Gau, executive director of Stand for Children, the organization supporting Proposition 208. 

The committee opposing Proposition 208 acknowledged the education tax measure’s victory in a statement Friday. Jaime Molera, the committee’s chairman and a former state schools superintendent, called the win a “setback” but struck a hopeful note in the statement.  

“It’s back to work to continue to seek ways to support Arizona’s education system across the continuum in a way that strengthens our economy,” he wrote.

The “No on 208” campaign was backed by the Arizona Chamber of Commerce & Industry. Gov. Doug Ducey and Arizona Treasurer Kimberly Yee were among the state politicians who opposed Prop. 208. 

State Schools Superintendent Kathy Hoffman voiced her support.

Proposition 208 led in preelection polls, garnering support, particularly among Democrats, despite the fierce campaign being waged against the measure.

The measure was born out of the #RedForEd movement in 2018, when educators protesting low salaries and classroom funding repeatedly cut since the Great Recession pledged to "Remember in November." 

After the vote, Joe Thomas, president of the Arizona Education Association, took a shot at the state's governor and lawmakers. 

"Voters will have sealed the deal on something that no legislator has had the courage to do, no governor has had the courage to do," he said. 

Where would Invest in Ed funding go? 

Educators probably will need to wait awhile to see a difference in their paychecks. David Lujan, one of the authors of the measure, said the money likely would start to flow to salaries in the spring of 2022. 

The Joint Legislative Budget Committee, a third-party state entity that analyzes the financial impact of ballot propositions, estimates that Proposition 208 would raise $827 million for education, about $100 million less than Invest in Ed's initial estimate.

The measure would send money to the following areas: 

• 50% of the money would go to hiring and raising the salaries of teachers and other certified employees, such as counselors and nurses. 
• 25% would go to hiring and increasing the salaries of student support staff, including classroom aides and bus drivers.
• 12% would go to career and technical education programs. 
• 10% would go to programs dedicated to retaining and mentoring teachers. 
• 3% would go to scholarships for the Arizona Teachers Academy, which waives college tuition for teachers-in-training who commit to work in Arizona schools after graduation.

Reach the reporter at Lily.Altavena@ArizonaRepublic.com or follow her on Twitter @LilyAlta.

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