Proposition 208 supporters square off against 'No on 208' campaign in debate

David Lujan, an author of Proposition 208 and Jaime Molera, the former schools superintendent fighting against the education tax measure, sparred over the education tax measure's impact on Arizona's schools and economy in a debate on Tuesday night.

Invest in Education proposes a 3.5% tax surcharge on the state's highest earners. The surcharge applies to individuals whose taxable income is $250,000 or more and couples whose taxable income is $500,000 or more.    

The debate was moderated by Arizona Republic reporter Richard Ruelas. 

Much of the forum revolved around whether Proposition 208 would deliver what it's promising to schools and whether it would pummel the Arizona's economy. 

In opening statements, Lujan said the measure would help solve the state's chronic teacher shortage and that Arizona lawmakers could "not touch" the money raised by the proposal.  

"That teacher shortage is getting worse," he said. "We have some of the largest class sizes in the country." 

Molera, however, called it "very dangerous" and said Proposition 208 does not come with "an iota of accountability." 

"If we're going to create a structure that would have a devastating impact on businesses, we would want to know how much money is being used for things that are improving education," he said. 

Proposition 208 is a product of the #RedForEd movement, which began in the spring of 2018, culminating in a weeklong teacher walkout, closing schools for a week as teachers protested rock-bottom salaries and classroom funding. Invest in Ed was the next step for the educators protesting, who pledged to "remember in November."

MORE ABOUT IT: Proposition 208: Demystifying the claims about Arizona's Invest in Education Act

The tax proposal would affect a small fraction of taxpayers. Its detractors say Invest in Ed would harm small-business owners, while supporters of Proposition 208 argue that very few small businesses actually would feel the impact. 

Sides spar over the money's impact  

Ruelas asked the two sides whether education funding has improved with recent infusions of money, such as money sent to educators for a 20% raise.

Lujan said the money will relieve stress on school budgets, helping to fix leaky roofs and other items school officials have said they can't afford to repair. He said the state has not restored school funding cuts from the Great Recession.

"There's still a billion dollars that hasn't been restored," he said. 

Molera acknowledged that schools need more funding but said Proposition 208 is not the way to go in raising more revenue for education, given the potential impact on the economy.

"There has been significant investment since the Great Recession," he said. 

Debate over impact on economy 

The Joint Legislative Budget Committee, in an analysis, wrote that income from high earners could possibly be a volatile source of revenue, leading to unpredictable budgets for schools. 

Molera said incomes for those earners can drop 30% from year to year, calling it "a real issue."  

Lujan disputed the assertion. 

"Revenue streams are not going to go down to the point where it's going to be a significant difference from year to year," he said.

Where would Invest in Ed funding go?

Proponents of 208 and its foes have been embroiled in an argument for months over whether the money actually would raise educators' salaries.

Lujan said the money would go to teachers and other classroom personnel who aren't school administrators, including school counselors. Arizona has one of the highest student-to-counselor ratios in the nation, about 900 students to 1 counselor. 

Molera argued there is not enough in the measure to hold districts accountable for spending Proposition 208 money. 

"There's nothing in here that talks about how these dollars are going to be used," he said. 

His opponent, Lujan, said the measure includes strict accountability. 

The Joint Legislative Budget Committee, a third-party state entity that analyzes the financial impact of ballot propositions, estimates that Proposition 208 would raise $827 million for education, about $100 million less than Invest in Ed's initial estimate.

The measure would send the money to the following areas: 

• 50% of the money would go to hiring and raising the salaries of teachers and other certified employees, such as counselors and nurses. 
• 25% would go to hiring and increasing the salaries of student support staff, including classroom aides and bus drivers.
• 12% would go to career and technical education programs. 
• 10% would go to programs dedicated to retaining and mentoring teachers. 
• 3% would go to scholarships for the Arizona Teachers Academy, which waives college tuition for teachers-in-training who commit to work in Arizona schools after graduation.

Reach the reporter at Lily.Altavena@ArizonaRepublic.com or follow her on Twitter @LilyAlta.

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