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HCR 2028ARIZONASession 57th-2nd-regularState Billdead

Did Not Advance

Arizona proposes constitutional amendment to extend 6.9 percent permanent land trust fund distribution rate for K-12 education through 2036

Original title: permanent funds; land trust; distributions.

Last action · June 13, 2026: House First ReadingSponsors: Nancy Gutierrez and 20 others

Bill progressHistory & official text ↓

Introduced

Committee

Floor Vote

Passed

Law

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What This Bill Proposed

Arizona House Concurrent Resolution 2028 proposes amending the state constitution to extend the 6.9 percent annual distribution rate from state trust s for and inflation adjustments from 2026-2027 through fiscal year 2035-2036. The measure requires voter approval at the next general election and mandates that these funds supplement rather than supplant existing basic state aid funding.

Why it matters

Extends a higher funding payout from state trust land s to public school for another decade, affecting the total revenue available for K-12 school districts and state budget calculations until 2036.

Background

State land trust permanent funds in Arizona generate revenues from state-owned trust lands granted under federal enabling acts, with earnings directed to designated beneficiaries such as public schools. context

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

Arizona public school districts

Receive funding allocations derived from the basic state aid appropriations funded by permanent land trust distributions.

Directly affected

Arizona voters

Must vote on whether to approve or reject the proposed constitutional amendment at the next general election.

Directly affected

Office of Strategic Planning and Budgeting

Required to jointly evaluate fund market values with the joint legislative budget committee and issue notices when reductions are necessary.

Key Facts

Extends the 6.9 percent annual distribution rate from state land trust permanent funds for fiscal years 2026-2027 through 2035-2036.
Requires the increased distributions resulting from the 6.9 percent rate to be appropriated for basic state aid and required inflation adjustments.
Mandates that distributions return to 2.5 percent of the average monthly market values beginning with fiscal year 2035-2036.
Requires the director of the office of strategic planning and budgeting and the director of the joint legislative budget committee to jointly notify legislative leaders by February 1 if a five-year rolling market value decrease requires a distribution reduction to preserve capital.

Show all 8 facts

Permits the legislature, with gubernatorial approval, to reduce the distribution to between 2.5 percent and 6.9 percent if a market decline notification occurs.
Requires that all monies appropriated under the amended section supplement and not supplant existing funding for basic state aid.
Requires the Secretary of State to submit the proposition to voters at the next general election.
Applies restrictions stating that not more than sixty percent of a permanent fund may be invested in equities at any time.

Frequently Asked Questions

What does HCR 2028 change about state land trust fund distributions?

It extends the 6.9 percent annual distribution rate from state trust s for K-12 through 2035-2036, instead of letting it drop to 2.5 percent.

What happens if the market value of the permanent funds decreases?

If the five-year average monthly market value decreases compared to the prior five-year period, budget officials must notify legislative leaders by February 1, and the legislature may enact legislation with the governor's approval to reduce the distribution rate for the next .

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Where This Stands

This resolution did not become law - Died at adjournment · introduced in the House.

Procedural history

1 action

Jun 13, 2026HouseIntroduced
House First Reading

Version history

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