Despite several early attempts in the Arizona Legislature to modify the framework for where the newly-passed Proposition 200 money would go, the four accounts established in the original voter-approved Tobacco Tax and Health Care Act have been maintained as intended since 1995. However, large sums of Proposition 200 revenue – on average $90 million annually – have gone unallocated and unspent by the Legislature.

The purpose of this brief report is to provide information about the past, present, and future of a very significant education reform program and tax increase, commonly known as Proposition 301. Coverage includes the history leading up to the ballot measure approved by Arizona voters in November 2000, its status approximately one year after it went into effect, and its prospects over a 20-year life span.