AZ Legislative Update 02-03-2023

The legislature advanced a state budget this week, months ahead of the usual schedule, but it’s evidence of partisan divides and not a reason to hope for a short legislative session. The budget passed the Senate and a House committee along party lines, and the Governor is likely to veto the bills when they reach her desk next week.

Republicans say their baseline budget is a fiscally responsible way to protect state resources – it continues funding the government into the next fiscal year without new spending except for formulaic increases to AHCCCS and education programs. They describe it as a backstop for failed budget negotiations, a way to ensure there’s no government shutdown if they can’t agree with Governor Hobbs on a spending plan before June 30.

Democrats say this budget is a waste of the legislature’s time and an irresponsible avoidance of real budget negotiations.

When the Governor and legislative leaders begin detailed budget negotiations, they will face a unique challenge: The state has an estimated $1.8 billion surplus for the fiscal year but faces signs of slower economic growth in the next two years. Legislative economists have urged lawmakers to consider the surplus as one-time funding instead of a resource for ongoing spending priorities.

Priority Bill Update

This week, the Senate Education Committee amended and voted 6-1 in favor of SB 1209 (education and career exploration program). The House Education Committee voted 8-1 to lift the aggregate expenditure limit (AEL) on schools this year. Both bills now await a hearing in the Rules Committee.

The Senate Rules Committee is scheduled to consider another proposal to lift the AEL on Monday.

Other priority subjects await the next step in the legislative process:

• HB 2460 (suspension; requirements; K-4 students) passed a House committee last month and is waiting for a hearing in the House Rules Committee.
• SB 1044 (student discipline; nonattendance; suspension; requirements) passed a Senate committee last month and is waiting for a hearing in the Senate Rules Committee.
• SB 1385 (student discipline profiles; school achievement) awaits a hearing in the Senate Education Committee.
• SB 1417 (students with disabilities; diaper changes) awaits a hearing in the Senate Education Committee.
• SB 1607 (students with disabilities; body cameras) awaits a hearing in the Senate Education Committee.

What’s Next?

The House will vote on the Senate’s budget bills early next week and will likely pass them on a party-line vote. House members will introduce more bills before a deadline at 5:00 p.m. on Monday. Meanwhile, policy committees will focus their attention on some of the more than 1,400 bills already eligible for consideration this year.

On the Bright Side…

Silly walks are good for you.