PHOENIX — Gov. Katie Hobbs insists her plan to take 8.9% out of the state land trust to boost education funding won’t harm the account.
In a study prepared by her office, Hobbs claims her plan will be able to produce an extra $1.3 billion over the next decade. Most of that would go to pay hikes for teachers and others considered “educators,” with schools getting an extra 4.4% a year to divide up as they want.
But the governor’s own numbers suggest she is actually dipping into the body of the trust.
On paper, Hobbs says the fund, projected to be $7.9 billion in 2025 when her proposal would take effect, would reach $8.9 billion a decade later.
Only thing is, that $8.9 billion number includes the governor’s estimate that the Arizona Land Department will take in about $200 million a year from the sale and lease of the approximately 9.2 million acres under its control.
What that means is that, all else being equal, that $7.9 billion should automatically grow to $9.9 billion on its own, or reach $10.3 billion.