A lawmaker leading the charge on Proposition 123 said stakeholders are moving closer to cohesion on the specifics of continuing a state land trust funding mechanism to increase teacher pay.

Sen. J.D. Mesnard, R-Chandler, said he expects and hopes for a more final package to materialize in the coming weeks, with some building consensus on the distribution rate, timeline and general funding aim of the bill.

But there are still battles left to be fought. At the heart of current contention now is a desire by Republicans to tie protections for school choice into Prop. 123. What exactly those provisions will look like is still up in the air for the majority and is likely to be unpopular with Democrats and the governor.

Though a long road lies ahead, Mesnard and Gov. Katie Hobbs remain confident that a new version of the measure will pass this session, with an election in November 2025 or 2026.

Mesnard said, “We want to put a package before the voters that we believe is appealing to them, and I think it’s one of the reasons we think teacher pay has to be the focus, not just because we acknowledge that, you know, the crisis we have with within the teaching profession, but also we believe that’s what the voters want to prioritize. “But another aspect is, again, the ability of parents to make the choice that makes the most sense for their family.”

Proposition 123, an education funding measure drawing on the state land trust fund, is set to expire at the end of the fiscal year. The Legislature already backfilled roughly $300 million to cover funds lost by the lapse and plans to do so going forward, leaving an opportunity to reimagine a long-utilized funding stream.

Republican lawmakers have continued to push for the reallocation of Prop. 123 funds to increase teacher pay.

In February, Rep. Matt Gress, R-Phoenix, and Mesnard introduced mirror legislation that proposed continuing a 6.9% draw from the state land trust to grant all eligible teachers, defined as educators with positive performance evaluations and 75% of their time spent in the classroom, or 50% for special education educators, around a $4,000 raise.

The Republican proposal would again lapse in 10 years. In getting each of the bills through committee, education and business stakeholders shared fears of another fiscal cliff with a 10-year cut off and a higher draw from the state land trust.

Hobbs released her plan for Prop. 123 in early March, pitching a permanent 5.5% distribution rate, with a maintained 2.5% into basic state aid and 3% directed to the Classroom Site Fund to provide a permanent increase in teacher pay. She also proposes a 10-year 1.4% distribution rate to increase base level funding.

Mesnard said the proposal now coming together is closing in on consensus.

“There’s more cohesion around a plan that is teacher-focused,” Mesnard said.

As for a distribution rate, stakeholders seemed to be supportive of the 6.9% but have been working on a more hybrid approach to make 4.5% permanent and have the remaining difference continued for 10 years.

Mesnard said member conversations are still ongoing in both chambers.

“We’re actively drafting language,” Mesnard said. “As things do get solidified, we’ll be putting that in ink.”

Once a proposal is put together, Mesnard and Gress plan to introduce mirror amendments to the legislation on the floor. Mesnard said they have until sine die to do so.

Though a proposal is coming together, the timing of a special election is still up in the air.

Hobbs originally pushed for a November 2025 special election in her Prop. 123 plan and is still advocating for the same.

“I am still hopeful that we can see something passed this year. I think it’s really important to get something to the ballot this year, and we’re still having those conversations,” Hobbs said.

If the Legislature were to go for this November, a spokesperson for the Secretary of State’s Office said the office recommended giving the counties six months to prepare.

Putting the proposal on the ballot for the 2026 midterm election is still a possibility too.

Election timing aside, Mesnard said all involved parties want to at least see legislation passed this session.

“I would say, I have a fair amount of confidence (that) we’re going to be able to pass something this year. That’s what we’re all working towards,” Mesnard said.