AZ Legislative Update 6-04-2021
Budget talks are not going smoothly at the state Capitol. While legislative Republican leaders met with members of their caucus behind closed doors, other Republicans were out in public criticizing the budget plan they’d been asked to support. Some included Governor Ducey in their criticism, as well, after he vetoed all the bills on his desk last Friday afternoon. The Governor intended his vetoes to serve as a call to action and a motivator for legislators to “work together and pass a budget that provides certainty for taxpayers and citizens”; legislators said it was “a man-child temper tantrum“ and “not helpful” to the pursuit of budget votes.
There are few details about the content and outcomes of ongoing budget negotiations, but legislators have shared some of their main concerns about the current budget proposal:
- The size of tax cuts.
Governor Ducey and Republican legislative leaders say the proposed tax cut, billed as the largest in Arizona history, will return excess state funding to the taxpayers and spur more growth in the economy. All legislative Democrats and a handful of legislative Republicans, however, believe the proposed tax cuts – which total roughly $1.5 billion a year – are too large. Democrats say the state’s surplus should go toward education and other state programs; several Republicans say the state should ensure it does not create a budget deficit in the future. Senators Sean Bowie (D) and Paul Boyer (R) think the tax cuts are based on flawed assumptions about the economy. - The kind of tax cuts.
Some Republicans who support the size of the tax cut object to the specifics of it. In addition to a flat income tax rate, the budget proposal also includes tax credits to incentivize specific actions or industries – like affordable housing and private investment in start-up businesses. The tax credits are contrary to several Republicans’ beliefs that tax policy should not benefit any particular industry. - The spending.
The budget plan includes $12.8 billion in spending for the next fiscal year, and for some conservative Republicans, it’s too much. A coalition of lawmakers announced last week that they would not vote for a budget that included several big investments in infrastructure projects; this week, they reiterated their beliefs with a blistering attack on the “pork-laden budget” crafted by their own political party’s leaders. - The changes to unemployment insurance.
The budget includes changes to the state’s unemployment insurance rate that has been debated at the Capitol all session, but it does not settle the disagreements between Republicans who have differing ideas about the benefits. Like earlier legislative proposals, the budget increases the unemployment insurance rate from $240 to $320 a week – but it delays that increase and reduces the timeline for the benefits. - The legislative pay.
Several key Republican legislators want to vote on a bill that would increase their pay before they approve the Governor’s budget proposal. Lawmakers of both parties say the daily reimbursement rate does not reflect the realities of required travel to and from the Capitol and argue that higher pay could allow more Arizonans to run for office. Governor Ducey vetoed a similar bill in 2019, citing concerns that the pay increase applied to lawmakers in Maricopa County and not just those from rural areas of the state.
House and Senate leaders continue to urge every member of their Republican caucuses to support the budget they negotiated with Governor Ducey, but it seems they may be losing votes faster than they can gain them.
Priority Bills
The legislature did not convene this week.
What’s Next?
The waiting game continues as lawmakers watch for their call to return to the Capitol. The House and Senate are scheduled to reconvene on June 10, but that date could change in response to progress – or lack thereof – on budget negotiations. There are 27 days until the end of the state’s fiscal year.
If there’s no budget in place on July 1, state government could shut down. There’s no record that state leaders have ever let that happen in Arizona, however, and most lawmakers are optimistic they’ll reach a budget deal before the end of the month – even if Republicans have to renegotiate their budget proposal to get Democratic votes.
For Further Study: License Plates
One thing is clear to anyone who spends time on Arizona roadways: Our state has a lot of license plates. The special license plate program has become a way to broadcast support for a cause or a community and a funding mechanism for non-profit organizations around the state. The legislature enacts new license plate options almost every year.
Many Arizona drivers like the options, and the number of cars with special license plates continues to grow. Arizona’s county sheriffs are not as enthusiastic, though, and some have expressed concerns about difficulty in identifying state license plates with so many designs available.
The legislature wants to hear more about how the expanding license plate options could impact road safety in the future. A law enacted earlier this year established a License Plate Standardization Study Committee to evaluate whether Arizona should standardize its license plates. The Committee’s recommendations are due by December 15.
In the Elections
The Arizona Senate’s ballot recount is halfway done, but some want to recount more than the U.S. Presidential votes. Legislators from Pennsylvania toured the Coliseum this week to learn how to mirror Arizona’s recount in their own state. The Secretary of State’s observers are publishing their concerns with the recount procedures.
The race to be the next Governor got more crowded this week, as Secretary of State Katie Hobbs (D) launched her campaign. So did former TV anchor Kari Lake (R), who joined State Treasurer Kimberly Yee and Regent Karen Taylor Robson in the pursuit of the Republican nomination.
Click here for a list of the potential candidates running for election in 2022 with a political party, and click here for the potential candidates who are independent of a political party.
In the Courts
Arizona Supreme Court Justice Clint Bolick has opinions about judicial independence. A judge’s order on mental health encounters in prisons changed the state’s compliance rating. The U.S. Supreme Court will issue an opinion on Arizona’s voting laws soon. The Arizona Supreme Court formed a task force to study the use of plea bargaining in the state. A new website allows those with minor marijuana offenses to ask courts to seal the records.
In the News
The Arizona Commerce Authority wants to help a broadband project get federal funding. Arizona’s mass vaccination sites are closing, but state health officials still want Arizonans to get a COVID-19 vaccine. A task force at the Arizona Department of Education will provide input on how to spend federal funding. There’s international attention on a report that the state plans to use lethal gas for executions. The federal government has new cybersecurity requirements for gasoline that comes into Arizona. Arizona’s IT leaders are award-winning. The state is still working on an implementation plan for new work bonuses to benefit those leaving the unemployment insurance program. It’s wildfire season. The Super Bowl is coming back to Arizona. The Department of Gaming has a timeline for sports betting. The new leader at the Centers for Medicare & Medicaid wants to prioritize expanded health coverage.
On the Bright Side…