PROPOSITION 301
Frequently Asked Questions
What is Proposition 301?
In the fall of 2000, an initiative was passed by the residents of Arizona creating a funding stream for
public education from sales tax. The Department of Revenue started collecting an additional 0.6% sales
tax beginning June 1, 2001 and, under the terms of Proposition 301, will expire June 30, 2021. The
dedicated sales tax rate could be renewed or updated in one of three ways. Voters could gather
signatures to put an initiative on the ballot and pass it by November 2020. The legislature could enact
replacement revenues with a two-thirds vote in both houses and the Governor’s signature. Or, with a
simple majority vote, the legislature could refer a new measure to the voters for approval. If there is no
renewal or replacement, all of these amounts would go to zero when the tax expires in June 2021. Since
sales tax fluctuates, the monies available to school districts will fluctuate annually. The intent of
Proposition 301 K-12 funding is to 1) increase teachers’ salaries, 2) increase accountability among public
educational institutions and 3) reward high performing teachers.
How is the money broken down?
Monies from Prop 301 are earmarked for spending in various areas of education. The majority of the
funding for K-12 districts falls into one of three categories, each with specific criteria.
Base Salary – 20% of total received by school district
Performance Pay – 40% of total received by school district
Site Fund – 40% of total received by school district
Who is eligible to receive the Prop 301 money?
SUSD identifies employees based on the Attorney General opinion which defines certified staff as “any
person who is required to possess an AZ certificate and is placed on the teacher salary schedule.”
Who decided how to allocate the money for SUSD?
State statue dictates how 301 dollars are allocated. Representatives of all SUSD employee discuss salary
related issues.
How much of Prop 301 goes into SUSD teachers’ salaries?
Approximately 8% of the base salary of each individual on the certified salary schedule is funded by Prop
301 money. In addition, they can receive a performance stipend funded out of Prop 301 Performance
Pay Fund based on SUSD’s performance plan. Teachers may also be compensated out of the site fund
for tutoring or other sanctioned activities such as:
- AIMS intervention
- Class size reduction
- Dropout prevention
- Teacher compensation
- Teacher development
- Teacher liability insurance