This brief report provides information about 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. Four primary questions frame this presentation: (1) What was the genesis of Proposition 301? (2) What did the ballot measure implement? (3) How are Proposition 301 K-12 funds being spent? (4) What does the future hold? To answer these questions, Morrison Institute researchers interviewed stakeholders from the education, political, and business communities and analyzed numerous data sets and reports. A brief list of references for further information is included. (Contains 3 tables.) [Onnie Shekerjian assisted with the preparation of this report.]