Rae Ann Rumery; John Skarhus; and Cartwright Elementary School District, Plaintiffs/appellees v. Maria Baier, In…

Summary

The court held that A.R.S. § 37-527 violates Article 10, Section 7(A) of the Arizona Constitution because it diverts up to ten percent of state trust land proceeds to a management fund instead of depositing all proceeds into the applicable permanent fund. Applying the provision according to its ordinary meaning, the court declined to imply an exception for trust-management expenses, even when those expenses may benefit the trust. The court affirmed summary judgment for the appellees, vacated the court of appeals' opinion, and awarded attorney's fees.