On the ballot this November for Arizona voters to decide is Proposition 208, or the Invest in Education Act.

Prop 208 is proposing a new 3.5% income tax surcharge on incomes over $250,000 for a single person and $500,000 for married couples.

The new 3.5% surcharge would be added onto the current tax rate of 4.5% for a total of 8%. The new revenue generated by the surcharge would be placed in the Student Support and Safety fund.

The monies in the fund would first be used to pay the administrative cost of implementing, administering and enforcing the measure, and then will be used for the following:

*50% for grants for teacher and classroom support, personnel hiring and salary increases.

*25% for grants for student support services hiring and salary increases.

*10% for grants that help retain new teachers.

*12% for career training and workforce programs for students in grades 9-12.

*3% for the Arizona Teachers Academy.

Arguments

Scottsdale Education Associate President Becky William is in favor of Prop 208, saying it will add funding after years of cuts.

“All Arizona children are entitled to a quality public education,” Williams said. “Over a decade of funding cuts to public education have hurt our most vital resource: Arizona’s children. These cuts have led to large class sizes, teacher and support staff shortages and reductions in educators salaries…Invest in Ed will put an estimated $940 million voter-protected dollars into Arizona’s public schools, preventing the legislature from diverting the funds to causes other than what voters intended when approved.”

Opposing the proposition, Arizona Governor Doug Ducey says Prop 208 will hurt small businesses.

“Right now, Arizona’s small businesses are recovering from the economic harm done by the COVID pandemic,” Ducey said. “And yet this tax increase would have small businesses – many of which pay based on personal tax rates – paying substantially more than Arizona’s largest corporations, which pay a lower corporate rate.”