AZ HB2123

Amends section 42-5029.02 of Arizona Revised Statutes regarding distribution of transaction privilege and use tax revenues for education.

Modifies paragraph 3 to reference only paragraph 1 (rather than paragraphs 1 and 2) when calculating the three percent transfer to workforce development accounts in community college districts.

Maintains existing distributions including $64.1 million annually to the classroom site fund, twelve percent of remaining revenues to the technology and research initiative fund, and three percent to workforce development accounts.

Preserves distributions to other education programs including school safety funding ($7.8 million), character education ($200,000), accountability programs (up to $7 million), and failing schools tutoring ($1.5 million).

Directs $25 million annually to the state general fund to reimburse costs of income tax credits under section 43-1072.02, with remaining monies allocated to the classroom site fund for teacher compensation and school operations.