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When Arizona became a state, Congress set up the State Land Trust as a way to fund K-12 education.
Gov. Doug Ducey wants to quadruple distribution from that fund to 10 percent annually for five years. His plan would add anywhere from $1.8 to $2.2 billion to the public schools during that time.
Treasurer Jeff DeWit disagrees with the Governor’s plan. The first term Republican said it is not fiscally responsible.
“It is the equivalent, I guess to put it in easy terms of, if in your first year of retirement, you cashed out your 401K and you spent it on a nice car,” DeWit said.
He said the state should not dip into the trust fund’s principal.
Ducey was state treasurer before he was governor. He said DeWit’s characterization is wrong.
“We have this asset of over $5 billion and those who don’t want to touch it are using examples like ‘if we don’t spend this money it will be worth $10 billion ten years from now,'" Ducey said. "And my answer is, to what end? This money exists to benefit K-12 education.”
Ducey said he has talked to Arizona voters and this is what they want to do.
His plan takes legislative and voter approval of a constitutional amendment. It may also take Congressional action because Congress set up the trust fund.
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