SB 1345 Summary

• Establishes a new revenue distribution mechanism under Arizona Constitution Article IX, Section 12.2, directing tax revenues as follows: 70% to classroom site fund, 20% to universities and technology/research initiatives, and 5% each to workforce development and other education purposes.

• Allocates classroom site fund monies for teacher compensation (40% performance-based, 20% base salary), maintenance and operations (40%), and authorized programs including class size reduction, tutoring, and career technical education.

• Directs 25% of distributed revenues to the state general fund for income tax credits and allocates specified amounts ($15M for school safety, $7M for education accountability system, $3M for auditor general reporting).

• Repeals sections 42-5010.01 and 42-5029.02 (prior temporary education tax provisions) and consolidates education funding provisions into new section 42-5032.03.

• Effective June 30, 2021, conditioned on approval of Senate Concurrent Resolution proposing a constitutional amendment at the next general election.