AZ Legislative Update 10-20-2023

In the first quarter of the new fiscal year, the state is already facing an estimated $400 million shortfall. 

The deficit comes from declines in two major tax sources: Individual income taxes were $243 million lower than expected, and sales taxes only grew by 1.6% – significantly lower than anticipated. The Empowerment Scholarship Account (ESA) program is also a factor because the increased enrollment in the program will cost $40 million more than expected this fiscal year.

The budget update inspired plenty of political accusations on both sides of the aisle. Republicans said the deficit is from “reckless policies being pushed by Democrats at the federal level” and pledged to cut state spending; Democrats said the shortfall is from income tax cuts and expanded access to the Empowerment Scholarship Accounts (ESA) program and called for bipartisan action to change the policies.

There are many more months in the fiscal year and many more details to learn from school enrollment numbers and tax revenue trends. The legislature’s nonpartisan budget office says its estimates and forecasts are likely to “change considerably” as the year continues. 

In the Elections

Election officials want a legislative special session to change the timeline for the 2024 elections. House Speaker Ben Toma (R-Glendale) is one of several lawmakers considering a run for Congress. 

In the News

Superintendent of Public Instruction Tom Horne (R) has a new way to get law enforcement into schools. 

On the Bright Side…

These statues are there to make you smile.