State leaders certify Prop. 123 as treasurer seeks AG ruling

PHOENIX — State leaders officially certified the results of the May 17 election Thursday with Gov. Doug Ducey promising money will start flowing to schools soon — assuming state Treasurer Jeff DeWit and foes of Proposition 123 don’t thwart the move.

Following a formal signing ceremony on that measure and Proposition 124 dealing with state pensions, the governor said he wants the money flowing to schools before June 30.

That’s the end of the state fiscal year. Schools need the money by that date to provide immediate raises that many districts promised to teachers if Prop. 123 passed.

But DeWit wants a legal opinion from Attorney General Mark Brnovich on whether he and the state Board of Investment can start withdrawing dollars from the land trust as the ballot measure requires.

DeWit said there are questions about whether the move requires congressional approval and whether charter schools are eligible to share in the $2.2 billion of the $3.5 billion deal that will come out of the account in the next decade.

Ducey at first brushed aside the idea the distribution might not happen as scheduled.

“There’s certain I’s you have to dot and T’s you have to cross,” the governor said. As to DeWit’s request, he said “that’s between the treasurer and the attorney general and we’ll let the both fulfill their roles.”

But Ducey said his own attorneys are convinced there’s no problem.

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“We have a legal opinion that says this went to the people,” he said. “The people voted ‘yes.’ It’s time to get the money flowing.

Still, the governor expressed some pique at DeWit and what he sees as the treasurer’s moves that could undo Prop. 123, which squeaked through with less than 51 percent of the votes cast.

“I think that any elected official that has the public’s trust would want to be responsive to the will of the people,” Ducey said. “The people voted ‘yes’ and it’s time to get these dollars to our teachers.”

But deputy Treasurer Mark Swenson said it isn’t just DeWit who has legal questions. He said the entire Board of Investment, which includes two members of Ducey’s cabinet, voted to seek legal input to be sure they are on firm legal footing before letting go of any state trust land dollars.

Ducey, however, seemed annoyed with DeWit, who chairs the board, for waiting until earlier this week, after the ballot measure was approved, to seek input from Brnovich.

“I wish they would have thought of this beforehand,” Ducey said.

In fact, though, DeWit has been raising legal questions for months, even telling a legislative committee that he believes adjustments to trust land withdrawals cannot take place without congressional OK.

DeWit’s concerns are not the only possible reason that fund distribution could be delayed. A Phoenix man already has asked a federal judge to stop the withdrawals until there is a ruling on that question of congressional approval.