Treasurer DeWit Raising New Legal Questions About Prop 123

By Howard Fischer, Capitol Media Services
Published: Wednesday, May 25, 2016 - 9:00am

A state board headed by Treasurer Jeff DeWit is asking some new legal questions about Proposition 123.

DeWit, who chairs the Board of Investment, asked Attorney General Mark Brnovich Tuesday whether it's legal to give schools the extra money voters just approved. DeWit reiterated his contention that it takes congressional approval before the state can withdraw more money from a trust account made up of the proceeds of land given to Arizona by the federal government when it became a state.

But the board also wants to know whether it can start the distributions while there's a pending legal challenge in federal court. Deputy Treasurer Mark Swenson said while his boss opposed Prop 123, this isn't a maneuver to undermine it. "The purpose of the request for the legal opinion is to make sure that the Board of Investment does not have any liability if they go ahead and approve the authorization and the treasurer's office makes the distributions," he said.

The federal law giving Arizona that land to support schools requires they must remain under the "exclusive control" of the state. But DeWit noted Prop 123 money would also go to charter schools. And while they're technically public schools, Arizona law allows them to be operated by private, for-profit corporations-- meaning they are not under exclusive government control. An aide to Brnovich said he is reviewing all the questions.