AZ Legislative Update 8-27-2021

The debate about mask mandates keeps escalating in Arizona, and the political fights are unfolding in several arenas:

• Funding Governor Ducey has designated two funding sources associated with school decisions on COVID- 19 mitigations: He set aside $163 million in grants that are available only to school districts and charter schools that fully comply with state laws – including those that limit mask requirements – and allocated $10 million in grant funding for students and families that are impacted by school decisions on COVID-19 mitigations.
• Federal Government Arizona is one of several states ramping up a fight against the federal government about school mask requirements. The U.S. Treasury Department asserts that Governor Ducey is misusing COVID-19 aid dollars to reward schools that do not follow CDC guidance. The U.S. Department of Education thinks Arizona’s limits on school district COVID-19 mitigation could be illegal. President Biden plans to act against governors who block mask requirements in public schools. Governor Ducey said the federal government’s actions are “weak and pathetic.”
• Courts Education advocacy groups filed a lawsuit not just against the state’s limits on mask mandates but on the way the legislature enacted a wide range of policies in the state budget. The lawsuit asserts that the budget violated the Arizona Constitution’s limits on how many subject areas may be enacted in one bill, and it seeks to overturn a variety of policy changes that were rolled into the budget. Oral arguments in the case are scheduled to begin on September 13. (The City of Phoenix filed a legal challenge to the legislature’s decision to enact policy changes in the budget bills, as well.)

Arizona leaders continue to disagree about COVID-19 vaccine requirements, as well. Governor Ducey issued an executive order that prohibits local governments from requiring their employees to receive the COVID-19 vaccine – a direct reaction to the City of Tucson’s vaccine requirement for its employees. The Governor says state officials have primary authority during public health emergencies; Tucson attorneys say the City has authority to require vaccines for its employees. Arizona Attorney General Mark Brnovitch sided with the Governor, stating that the state law removes local governments’ authority to issue any vaccination requirements.

Arizona Supreme Court Rules on Proposition 208 

The Arizona Supreme Court handed down a much-anticipated ruling on education funding this month, but the final outcome of the voter-approved Proposition 208 initiative will depend on the outcome of a trial court ruling.   The Supreme Court ruling sided with Proposition 208 advocates about the legality of enacting a new funding mechanism through the ballot: The opinion says that while the legislature must have a 2/3 majority to enact a tax, voters may do so with a simple majority of support. While the ruling allows the Proposition 208 surcharge to be collected, it designates the Proposition 208 funds as school revenues rather than grants to school districts. This puts the new funding under the state’s Constitutional limit on school district spending. If the trial court determines that Proposition 208 funds exceed the limit on school expenses, the Supreme Court ruling says the entire initiative will be considered unconstitutional.

Governor Ducey and other opponents of the initiative celebrated the ruling as a path to victory in their fight against the measure. Supporters of Proposition 208 called it a “destructive, politically motivated decision” and pledged to fight for this and other ways to increase education funding. The Arizona Department of Education is researching whether the ruling will also impact other school funding streams.

Budget Update: Revenues Remain Strong

Arizona’s economy remains strong, according to a new report on state finances from the legislature’s budget staff, and tax revenues in July were higher than anticipated. For the 14th consecutive month, Arizonans boosted sales tax collections through shopping, entertainment, and dining in restaurants – those tax categories are higher than they were before the pandemic. Taxes on medical and recreational marijuana sales generated $16.8 million last month.

The overall tax collections dropped significantly compared to 2020 levels, but the decreases are almost entirely related to later tax payments caused by the delayed income tax filing date this year. Legislative economists are monitoring a 0.9% decline in sales taxes from contracting projects that slowed after double-digit growth last year and are following a dip in Lottery ticket sales. Arizonans spent $110.1 million on Lottery tickets in July – 8.3% lower than they did last July.   The state’s accountants are still finalizing the numbers for the last fiscal year, which ended June 30, so it’s too soon to have a specific number for the current budget surplus. The current estimate is $697 million, and the legislature will get additional details when the Finance Advisory Committee meets in October.

In the Elections

The Senate’s report on its 2020 ballot recount is delayed again. So is the Cyber Ninjas’ report to the U.S. House Oversight and Reform Committee. Two election officials renewed their concerns about the Senate’s efforts. Maricopa County sent the bill for its new voting machines to the Senate. Maricopa County officials say the Senate’s subpoenas aren’t enforceable unless a majority of senators vote for them, but the Arizona Attorney General says Maricopa County broke the law by failing to comply with the subpoenas – a finding that could significantly reduce state funding for County operations. The Arizona Supreme Court hit “pause” on an order that Cyber Ninjas release records while it considers the Senate’s appeal to that order. The National Association of Secretaries of State wants more precise guidelines for post-election audits.

Some Republican lawmakers are supporting a citizens’ initiative that would ask voters to enact stricter ID requirements for mail-in ballots.

In the Courts

Voting rights advocates want courts to overturn Arizona’s new laws on mail-in ballots. The Center for Reproductive Rights filed a lawsuit against Arizona’s new law that bans abortions based on genetic abnormalities. A Court of Appeals said individuals with felony convictions in another state may seek restoration of firearm rights in Arizona. The state is appealing a federal judge’s decision to overturn  Arizona prisons’ health care improvement plan. The U.S. Supreme Court overturned the federal eviction moratorium.  

In the News

The federal government issued an unprecedented declaration of water shortage on the Colorado River. Maricopa County started a process to appoint a new legislator to fill the seat of former Senator Tony Navarrete. The Arizona Department of Health Services got new leaders. The Governor promoted some members of his senior staff. The Arizona National Guard is staying at the border. The state designated $5 million in grants for small businesses impacted by the pandemic and extreme weather. Governor Ducey and House Speaker Rusty Bowers (R-Mesa) say refugees from Afghanistan are welcome in Arizona. Some Arizona businesses are still short-staffed.

On the Bright Side…

Oliver creates a community.