Proposition 118, also know as the Permanent Funds Amendment, would change the formula for how money is distributed from the State Land Trust to public schools.
Proponents say the simpler formula guarantees an annual distribution of money, rather than the ups and downs of the markets for land and equities. Under the proposal, 2.5 percent of the trust's average market value would be distributed annually.
The new formula would be in effect from 2013 through 2021. After 2021 the formula would revert to the existing calculation.
Opponents of Proposition 118 say they worry that it will cause a lower average distribution of funds to schools.
“There is worry, too, about the inherent unreliability of long-term economics forecasts to which the projected performance of Prop. 118 is tied," said E.J Perkins of the Morrison Institute for Public Policy.