What Proposition 118 will do: Change the formula by which returns on investments made with state trust land money are calculated. Supporters say it will simplify the formula and guarantee a more consistent return to beneficiaries, including public schools. Opponents say the proposed formula is based on economic projections that could be wrong.
State trust lands, the background: Arizona has land held in trust that can be used to produce revenue for public institutions. The land generates money through sale or exchange, natural products sales and mineral royalties. The money goes into the State Trust Land Permanent Endowment Fund and is invested by the state treasurer. On March 30, 2012, the fund was valued at $3.57 billion.
The state has 9.3 million acres of trust land.
Thirteen beneficiaries receive returns from the fund, the largest being public schools. Returns are distributed according to a formula that measures the average rate of return for the previous five years, adjusted for inflation. This figure is then multiplied by the average market value over the past five years. The result has been wildly fluctuating returns, especially in the wake of the national economic recession. For example, public schools received nothing from the fund in 2010, while in fiscal year 2012, received nearly $78,000.
Proposition 118 would, from fiscal years 2013-2021, change the distribution formula to 2.5% of the average monthly market values of the fund, as measured for five years preceding.
Supporters, including the Arizona Department of Education, the Arizona State Land Department, Arizona State Treasurer Doug Ducey and former Arizona Treasurer Dean Martin, say the newly set rate of the formula would make calculating the returns simpler and lead to more consistent returns.
Dean Martin, Arizona State Treasurer from 2007 to 2011.
“What this does is provide a lot more stability for education and all the other beneficiaries of the trust,” says Martin. The new system under proposition 118 “...is based on how big the trust is...so as we grow the trust, if the economy’s good it’ll grow faster, if the economy’s poor it will still be there.”
What Proposition 119 will do: Change the requirements for how the state exchanges its trust lands with other public or private land. The only previous mandate was that the state sell the lands to the highest bidder. The measure gives the state an exception, provided one of two requirements are met: the exchange must be related to protecting military facilities from encroaching development, or for improving management of trust lands. The process for approving such exchanges includes getting two independent appraisals and analyses, holding public hearings and letting the public vote on it.
Proponents of the measure are broad-based, including The Sierra Club, The Wilderness Society, The Arizona Chamber of Commerce and the Military Affairs Commission. All say it's needed to protect military installations from land exchanges that could threaten their existence.
Arizona State Land Commissioner Maria Baier
Maria Baier, Arizona State Land Commissioner, oversees 9.3 million acres of state trust land. She's also part of the Yes on Prop 119 group. She says the measure will also help with conservation efforts. “Some of the land that we have that should be in conservation can also be traded to the federal government for revenue-producing properties,” says Baier. “So it really is a win-win proposition.”
There is no organized opposition to Proposition 119, but some individual opponents say state trust lands simply should not be exchanged at all.
At least six similar propositions have been referred to Arizona voters in recent years. All were rejected.
Supporters say voters will approve this version because of built-in protections that ensure any proposed exchanges are in the best interest of the state Land Trust and voters. They also say it will protect military installations from adjacent development that may be incompatible with military activity.
Find out where Arizona's state trust lands are, at The Sonoran Institute's Trust Land Profiles
What Proposition 120 will do:
Amend the state constitution to give Arizona exclusive authority over all public lands, water, wildlife and other natural resources within its borders. Military installations, Indian reservations and a few other sites would be excluded. If the measure passes, Arizona could claim title to every piece of federal land in the state. Arizona would also be able to develop the land or sell it into private ownership.
Federal lands in Arizona, the background:
Arizona is unique among the states in that so much of its land is federally owned - most of it in the form of national forests and Bureau of Land Management wilderness areas. When Arizona achieved statehood in 1912, the federal government retained ownership of vast tracts of land. It also granted the state some land to be held in trust.
Some state lawmakers want the federal government to turn over that land. They passed a bill last year declaring sovereignty over federal lands in Arizona, but it was vetoed by Gov. Jan Brewer.
Now, a similar proposal is on this year’s ballot.
Photo: Mark Duggan
Supporters of the measure say it’s meant to send a message to Washington. Joe Sigg, Director of Government Relations for the Arizona Farm Bureau, says a lot of bureau members lease property from the U.S. Forest Service and BLM and feel both agencies have mismanaged federal lands. Sigg says the measure is couched in state’s rights, because the federal government hasn't shown any interest in respecting land within Arizona’s borders.
“The federal government wants the state of Arizona as a cooperator on air quality and water quality issues,” Sigg says. “But when it comes to land management issues…nope.”
Sigg admits that the proposition is more of a message than a plan. “What we hope is that we can create this critical mass of discussion,” he says. “And the target, if you will, is Congress.”
Photo: Arizona State University
Policy analyst E.J. Perkins with The Morrison Institute for Public Policy
Opponents of Proposition 120 include the Coalition for Sonoran Desert Protection. Executive Director Carolyn Campbell says the state doesn't have the money to run its own parks, yet wants control of other lands. She says her organization opposes such moves because federal lands belong to the public.
“America has a real long and proud tradition of federally owned national parks and forests and monuments,” Campbell says. “Americans, and Arizonans too, absolutely love their national public lands.”
The measure may have some trouble in federal courts, as well. Analysts say it would probably violate the Supremacy Clause of the U.S. Constitution, which decrees the Constitution to be "the supreme law of the land."
Similar past attempts in other western states to declare sovereignty over federal lands have been generally known as The Sagebrush Rebellion. Utah lawmakers passed a bill last year staking claim to millions acres of federal land there. The idea was to instigate a court battle.
Policy analyst E.J. Perkins, with Morrison Institute for Public Policy at Arizona State University, says a Supreme Court case years ago specifically dealt with state sovereignty issues.
“The court came down on the side of the federal government in terms of declaring that the Supremacy Clause is indeed the supreme law of the land and that a state cannot opt out of that,” says Perkins.
Read the text of Proposition 118:
Read the text of Proposition 119:
Read the text of Proposition 120: