AZ Legislative Update 5-21-2021

There was budget buzz at the Capitol all week, as House and Senate Republican leaders worked to get the votes to pass a deal they’ve reached with Governor Ducey. They have not succeeded yet, but the talks continue.

While negotiations continued behind closed doors, the House and Senate voted on more than a dozen bills still moving through the process. Some were divisive and passed on a party-line vote – including changes to government contracting requirements, sex education, reduced penalties for some speedy drivers, and a call for more border security.

The Senate failed to pass a change to how cars are impounded after a driver is arrested and a bill to ban mandatory disclosures of COVID-19 vaccination.

In the House, Republicans sidelined Democrats’ efforts to force a vote on ratifying the Equal Rights Amendment.

Most bills, though, drew bipartisan support – including permission for overdose and disease prevention programs, changes to procedures for health care directives, and authority for restaurants to sell take-home cocktails.

Priority Bills

This week, the House:

• Voted 38-21 in favor of HB 2123 (pupil suspensions and expulsions; schools), which limits when students up to 4th grade can be expelled or suspended.
• Unanimously approved HB 2863 (ASDB; local education agencies), which designates the ASDB as local education agencies for purposes of federal funding, state/federal accountability, graduation criteria and procedures, and providing free and appropriate public education. 

What’s Next?

Republicans hope to pass their budget proposal next week, but logistics might complicate their efforts. Several legislators are rumored to have travel plans or family obligations out of town, and the budget deal can’t pass without their vote. It’s not just physical absence that could stall the budget deal, though. Republicans in the House and the Senate say they need changes before they are willing to vote for their leadership teams’ negotiated agreement.

There are approximately 200 bills still eligible to advance before the session ends, but more than 90% of them are related to budget funding or do not have the support needed to pass. Some controversial measures are taking slow steps forward while supporters negotiate changes, but the fact remains: There is very little for legislators to do apart from the state budget.
 

Ducey, Legislative Leaders Seek Votes for Budget

The Republican budget plan has not been introduced, and documents from closed-door budget briefings exclude significant information – like how federal COVID-19 aid dollars could fund state agencies. Preliminary outlines show that the Republicans’ plan spends a total of $12.8 billion in state money and proposes a $1.7 billion tax cut package that would grow to an estimated $2.1 billion in tax reduction by 2024.

The tax cuts would exempt veterans’ pensions from income taxes and reduce corporate property taxes, and would rewrite Arizona’s individual income tax laws to implement a “flat tax.” The change would address the voter-approved education funding by setting a top rate of 4.5%, using state General Fund dollars to cover the dollars that would have been generated by the Prop. 208 surcharge.

The big changes to state taxation are a key component of budget negotiations. While most Republicans want to cut taxes this year, some say they want to cut different taxes and some are concerned about the impact the income tax changes will have on city budgets.

The spending plan in the budget proposal would provide funding for state government and other priorities, including large one-time investments in transportation and infrastructure projects and targeted funding for education initiatives like special education. The proposal outlines pay increases for some state employees, partially funds the state universities’ New Economy Initiative, and raises the weekly rate for unemployment benefits under certain economic conditions. Legislative leaders hope to introduce their budget – and many more details – next week.
 

Democrats Unveil Budget Priorities

House and Senate Democrats published their budget priorities this week, as well, outlining their fiscal priorities. Their framework allocates funding to K-12 and higher education programs, health and human service priorities like expanded KidsCare, and infrastructure projects.

It does not include any cuts to state taxes.

It is not clear whether Democrats are actively negotiating with any Republicans to obtain the majority needed to pursue their budget plan.

Arizona’s New Laws

Governor Ducey signed nine new laws this week – including bills to legalize fentanyl strips and make it a crime to block a sidewalk. He has enacted a total of 371 bills so far this year and vetoed five. Another 17 proposals await his action.

2022 Starts in 2021

It’s official: The 2022 election cycle has started in Arizona. This week, two Republican candidates kicked off their races to be the next Governor – Board of Regents member Karen Taylor Robson and State Treasurer Kimberly Yee. Several current legislators have announced their intention to run for Congress or statewide elected office. Tom Horne wants to go back to his old job as Superintendent of Public Instruction – a job current Superintendent Kathy Hoffman hopes to retain.

Click here for information on every candidate that wants to run in the 2022 elections with a political party, and click here for a list of Independent candidates.

In the Elections

Maricopa County officials took a firm stand against the Senate Republicans’ ballot recount, asking Senate President Karen Fann (R-Prescott) to end the process. Former Governor Jan Brewer wants the recount to stop, too. Fann isn’t interested in ending it, though, and instead hosted an invitation-only briefing from the leaders of the effort. The Secretary of State said the County might need to buy new voting equipment to replace what was used in the Senate’s recount. A national organization is suing the Senate for information about who is paying for the recount. Tension around the audit led to another threat to personal safety. Other states want to follow Arizona’s example for recounts of their own. 

In the Courts

The Supreme Court will consider an abortion case, and Arizona’s not the only state enacting new laws that could go before the Supreme Court. Arizona joined a lawsuit against this internet provider for slow downloads.

In the News

This study says school vouchers help some, but not all, disadvantaged students. Sports betting is coming to Arizona. Rep. Lorenzo Sierra (D-Avondale) wants policymakers to consider COVID-19’s impact on mental health. This new program helps soon-to-be mothers who have substance abuse disorders. Arizona is a tech hub. This report says some Arizona prisons have a pest problem. The state wants to know what you think about stocking fish in state waters. This poll says Arizonans are happier.

On the Bright Side…

Doodling is good for your brain, and this gas station became an unusual garden.