AZ Legislative Update 2-12-2021

Political fights took center stage again this week at the Arizona Capitol, where divisions between and within political parties seem to grow every day.

The Senate started the week with a vote on a resolution declaring the Maricopa County Board of Supervisors in contempt of the Senate because the Board has not turned over all the sensitive election information the Senate demands. It failed to pass when Senator Paul Boyer (R-Glendale) surprised his colleagues by voting against the measure, calling for more time to seek an “amicable” resolution. Unless Boyer changes his mind, the proposal is stalled while the dispute about Senate access to sensitive ballot information goes back into the courts.

The Senate concluded its week with a meeting of the Senate Ethics Committee, which is investigating Senator Wendy Rogers’ (R-Flagstaff) alleged abuse of a staff member. The Committee extended the deadline for the investigation until next month, citing schedule conflicts because of the busy pace of the legislative session.

The House Ethics Committee met to adopt a code of ethics and rules that will govern the Committee’s work this year. It did not address a resolution from House Democrats seeking to expel Representative Mark Finchem (R-Tucson) for his role in events at the U.S. Capitol on January 6.

Amidst the political excitement at the Capitol, a new legislator stepped in to represent Legislative District 7. Jasmine Blackwater-Nygren (D-Red Mesa), an attorney, will fill the seat of former Representative Arlando Teller, who resigned last week for a new job at the U.S. Department of Transportation.

 

Priority Bills

This week, the Senate Education Committee amended and unanimously approved SB 1403 (literacy; dyslexia screening), which alters implementation timelines and requirements for dyslexia training and screening plans.

The House Education Committee:

• Amended and voted 6-4 to pass HB 2063 (schools; student promotions), which requires teachers to fail or retain students in most situations if the student does not meet the standards for promotion.
• Amended and voted 8-2 in favor of HB 2418 (group B weight; gifted pupils), which adds a new Group B weight funding mechanism for gifted students and appropriates $1.7 million for an assessment to identify gifted students.

The House Health & Services Committee voted 6-3 in favor of HB 2155 (early childhood mental health; appropriations), which dedicates $2 million a year for a five-year Early Childhood Mental Health Consultation and Referral Pilot Program.

 

What’s Next?

Last Monday marked the last day for bill introductions, and legislators need special permission from the Rules Committees to add any new proposals to the process. The House and Senate introduced a total of 1,820 proposals this year – higher than any other year on record. More than 1,200 bills still await committee approvals, including proposals that would change standards for citizen initiatives, rename State Route 260, release prisoners during a pandemic, increase penalties for prison escapees, and alter groundwater management rules.

Key Dates

 

Superintendent Hoffman Reviews State of Special Education

Superintendent of Public Instruction Kathy Hoffman gave an update on special education in Arizona to the House Education Committee this week, highlighting successful programs around the state but emphasizing the significant challenges COVID-19 has held for students with special needs. She called on the state to provide more funding for schools so special education programs have more resources, specifically supporting SB 1189, which would increase special education funding through Group B weight adjustments and allocate $5 million to the Extraordinary Special Education Needs Fund. She also expressed support for HB 2015, which would increase funding for preschool programs.

 

Legislators Have Lots of Tax Policy Ideas

Republicans at the state Capitol seem to agree on one thing: They want to pass new tax cuts this year. They’re just not sure yet which taxes to cut. Governor Ducey’s budget proposal sets aside $200 million a year for tax cuts, increasing to $600 million by 2024. The Senate Republican budget framework designates $200 million a year for tax cuts, along with $250 million for one-time tax reductions this year. Neither budget plan identifies which taxes – or which Arizonans – should be impacted.

Legislators have their own ideas, though. Some of the bills they have introduced contain small changes that would have minimal impact on tax revenues, but others are big-picture policy changes that would shift Arizona’s tax landscape. Two bills have already received committee approval:

• SB 1108 (tax omnibus) would make a variety of changes to Arizona property and income taxes, and taxation of electric vehicles. Legislative economists estimate the package would reduce state revenues by $66.1 million this year – the amount would increase to an estimated $201.8 million within three years. The bill passed the Senate Finance Committee last week by a vote of 7-3.  
• When it was first introduced, SB 1252 (corporate income tax; phase-out) would have gradually eliminated the state’s income tax for corporations – a change that would have reduced income tax revenues by approximately $1 billion by the time it was fully implemented. A revised version of the bill removes the first $100,000 from a corporation’s Arizona gross income for purposes of calculating the taxes the business owes to the state. The bill’s sponsor said he changed the proposal in response to feedback from other Republican senators; legislative economists are still working on an estimate of how this would impact state revenues. The bill passed the Senate Finance Committee on a party-line vote of 5-4 this week.

Several other large-scale tax policy changes are still waiting for committee hearings. SB 1783 (small businesses; alternate income tax) would create a new small business income tax category. SCR 1019 (constitutional property tax exemptions) would ask voters to approve a rewrite of the state’s property tax laws, and SCR 1040 (state income tax; phase-out) would gradually eliminate the individual income tax.

Some Democrats are willing to consider changes to tax policy, but most have signaled concern about any bill that would reduce revenues for the state. They say the state should direct its budget surplus toward other programs – like education or social services. Republicans say the tax cuts will create a longer-term boost to the economy overall.

 

State, Local Health Departments Continue Fight against COVID-19

COVID-19 statistics are improving in Arizona, and more than one million doses of the COVID-19 vaccine have been given. Public health officials continue to add vaccination sites across the state – including a new state vaccination site at the University of Arizona. This week, the State and Maricopa County released new data about the populations that have received COVID-19 vaccinations.

 

In the Courts

These legislators want the Attorney General to say Pima County’s eviction protections are illegal. This legislator wants the Attorney General to block Governor Ducey from changing the Arizona Gaming Compact. Proposition 208 advocates won another round in court. The Arizona Supreme Court said government subsidies must have a real public benefit. A federal court said election officials followed the right timeline for voter registration in 2016.

 

In the News

The federal government is making changes to AHCCCS work requirements. The President and Vice President looked to Arizona for ideas about mass vaccination sites. Arizona’s not the only state considering changes to voting laws and procedures. This study has dark forecasts for Colorado River water supplies. The Trump campaign paid this legislator as a consultant. The state launched an Emergency Rental Assistance Program to help Arizona renters. The Super Bowl drew attention to how Arizona cities are addressing electric vehicles. This legislator wants to increase funding for community colleges. This legislator says students are still learning, but the pandemic has slowed some progress. These Arizonans could get new jobs.

 

On the Bright Side…

This U.S. ambassador took a new approach to diplomacy and Arizona has a birthday this weekend.