Jun 2009
Why Arizona Needs A Flat Tax: UPDATED
June 29 2009 20:35 Filed in: Tax Reform | Budget
The Arizona Legislature has recently proposed a flat tax that will make Arizona one of the most competitive tax environments in the country regarding individual income and business taxation.
Of all the states with an individual income tax, if passed, Arizona would have the lowest individual income tax rate in the country.
The benefits of a flat tax are numerous. The first $10,000 for single filers are tax exempt ($20,000 for married couples) and every dollar thereafter of taxable income is lowered from 4.54 percent at the highest rate to a flat rate of 2.8 percent which is less than the current marginal rate that every taxpayer pays regardless of earnings.
As Governor Brewer has said, we need a tax structure that promotes job growth, investment in Arizona and revenue stability for the future.
The Flat Tax does exactly that.
Since Arizona must compete with neighboring states for business, lowering the tax rate will incentivize economic growth as it has in Arizona’s neighboring states. Arizona already competes with Utah and Colorado - neighboring states that already have a flat tax.
Arizona also competes with Texas, which has no personal or corporate income tax (or capital gains tax) and has created more jobs in 2008 than the other 49 states combined. Their stellar economic growth can be chalked up primarily to a low tax burden.
While the flat tax necessitates the removal of deductions, it also lowers the rate for everybody. So while certain taxpayers will not continue to receive specific deductions, the first $10,000 for singles, $20,000 for married couples will be tax free, and the rest that is taxable will be at a much lower rate than the current marginal tax rate.
Additionally, the Legislative proposal will still retain credits for public school extracurricular activities, incomes taxes paid in other states, charitable contributions to help the working poor, clean elections, student tuition organizations and increased sales tax for Proposition 301.
Lowering taxes on Arizona’s workers will attract investment capital and will help create sustainable, high-wage jobs as we have seen in Utah, Texas and Pennsylvania.
We cannot cut our way out of a structural deficit, nor can we tax our way into prosperity. Part of the puzzle includes significant tax reform. The flat tax, coupled with the State Property Tax repeal and reforms to the assessment ratio on business property tax will help give Arizona the tools it needs to weather this storm and grow our way into prosperity once again.
Arizona must jumpstart capital accumulation and job creation through tax reform that fosters economic activity. A flat tax rate will help the state do just that.
UPDATE: The Legislature is running an amendment that will make the starting point for the flat tax the federally adjusted gross income (FAGI). What this means is Arizona’s flat tax will correspond to that of Utah, Colorado, Indiana, Illinois, Michigan and Massachusetts which all start with FAGI as the income tax base. Deductions for items such as educator expenses, tuition and fees, health savings accounts, alimony payments, pension contributions, self-employment deductions, IRA and more will all be deducted from taxpayer’s income.
The Legislature wants to ensure small businesses, students, teachers and those that are investing for their future are not unduly burdened.
Of all the states with an individual income tax, if passed, Arizona would have the lowest individual income tax rate in the country.
The benefits of a flat tax are numerous. The first $10,000 for single filers are tax exempt ($20,000 for married couples) and every dollar thereafter of taxable income is lowered from 4.54 percent at the highest rate to a flat rate of 2.8 percent which is less than the current marginal rate that every taxpayer pays regardless of earnings.
As Governor Brewer has said, we need a tax structure that promotes job growth, investment in Arizona and revenue stability for the future.
The Flat Tax does exactly that.
Since Arizona must compete with neighboring states for business, lowering the tax rate will incentivize economic growth as it has in Arizona’s neighboring states. Arizona already competes with Utah and Colorado - neighboring states that already have a flat tax.
Arizona also competes with Texas, which has no personal or corporate income tax (or capital gains tax) and has created more jobs in 2008 than the other 49 states combined. Their stellar economic growth can be chalked up primarily to a low tax burden.
While the flat tax necessitates the removal of deductions, it also lowers the rate for everybody. So while certain taxpayers will not continue to receive specific deductions, the first $10,000 for singles, $20,000 for married couples will be tax free, and the rest that is taxable will be at a much lower rate than the current marginal tax rate.
Additionally, the Legislative proposal will still retain credits for public school extracurricular activities, incomes taxes paid in other states, charitable contributions to help the working poor, clean elections, student tuition organizations and increased sales tax for Proposition 301.
Lowering taxes on Arizona’s workers will attract investment capital and will help create sustainable, high-wage jobs as we have seen in Utah, Texas and Pennsylvania.
We cannot cut our way out of a structural deficit, nor can we tax our way into prosperity. Part of the puzzle includes significant tax reform. The flat tax, coupled with the State Property Tax repeal and reforms to the assessment ratio on business property tax will help give Arizona the tools it needs to weather this storm and grow our way into prosperity once again.
Arizona must jumpstart capital accumulation and job creation through tax reform that fosters economic activity. A flat tax rate will help the state do just that.
UPDATE: The Legislature is running an amendment that will make the starting point for the flat tax the federally adjusted gross income (FAGI). What this means is Arizona’s flat tax will correspond to that of Utah, Colorado, Indiana, Illinois, Michigan and Massachusetts which all start with FAGI as the income tax base. Deductions for items such as educator expenses, tuition and fees, health savings accounts, alimony payments, pension contributions, self-employment deductions, IRA and more will all be deducted from taxpayer’s income.
The Legislature wants to ensure small businesses, students, teachers and those that are investing for their future are not unduly burdened.
Appropriations Hearing Scheduled for 11am
The House is scheduled to have an Appropriations hearing at 11 a.m.
Please click on this link for the agenda.
Please click on this link for the agenda.
Robb: "Arizona Supreme Court Erred in Brewer v. Burns
June 26 2009 10:24 Filed in: Supreme Court | Budget
Bob Robb’s column in today’s Arizona Republic says the Arizona Supreme Court came to a bad conclusion in Brewer v. Burns in which the Governor asked the Court to force the Legislature to transmit bills to her. The Court said after the Legislature finally passes a bill they must send it to the Governor.
Referring to the Court’s decision Robb says “I think that the court is wrong that the bills were unconstitutionally not being transmitted, and grossly so. In fact, I think the court is so wrong that it might actually regret its hasty conclusion when it gets around to explaining itself in a full decision.”
Click on this link for the full article.
Referring to the Court’s decision Robb says “I think that the court is wrong that the bills were unconstitutionally not being transmitted, and grossly so. In fact, I think the court is so wrong that it might actually regret its hasty conclusion when it gets around to explaining itself in a full decision.”
Click on this link for the full article.
When Words Lose Their Meaning...
In a recent article by Daniel Scarpinato, a reporter for the Arizona Daily Star, he noted that many elected officials are using the word “decimating” in the same sentence with education.
Governor Brewer accuses the Republican led legislature of “decimating” education in their budget proposal, meanwhile the Democrats accuse Governor Brewer of “decimating” education in her budget plan.
He went on to explain in his article, “The GOP plan, which has the largest of the K-12 cuts, reduces state aid to K-12 by 5.2 percent out of the more than $4 billion the state provides to K-12. When other funds that K-12 receives are factored in, it amounts to a 2.2 percent cut.”
As Scarpinato pointed out, the total reduction to K-12 in the Legislative budget is about two percent, or conversely, education is funded at 98 percent of what it was funded in fiscal year 2009...either way, one can hardly say the reductions decimate education.
This Legislature contends the budget process was difficult, with only bad and worse options, yet this body has done everything within its power to keep education cuts to a minimum. Given the size of the $3 billion plus state deficit, a 2.2 percent reduction to education is not a “decimation.”
Governor Brewer accuses the Republican led legislature of “decimating” education in their budget proposal, meanwhile the Democrats accuse Governor Brewer of “decimating” education in her budget plan.
He went on to explain in his article, “The GOP plan, which has the largest of the K-12 cuts, reduces state aid to K-12 by 5.2 percent out of the more than $4 billion the state provides to K-12. When other funds that K-12 receives are factored in, it amounts to a 2.2 percent cut.”
As Scarpinato pointed out, the total reduction to K-12 in the Legislative budget is about two percent, or conversely, education is funded at 98 percent of what it was funded in fiscal year 2009...either way, one can hardly say the reductions decimate education.
This Legislature contends the budget process was difficult, with only bad and worse options, yet this body has done everything within its power to keep education cuts to a minimum. Given the size of the $3 billion plus state deficit, a 2.2 percent reduction to education is not a “decimation.”
House Statement - "U.S. Supreme Court Renders Decision in Flores Today"
Today’s decision is a tremendous development for all Arizonans. The U.S. Supreme Court recognized that it is incumbent upon federal courts to adopt a flexible approach that respects both federalism and the separation of powers. After almost two decades of litigation, this direction is a breath of fresh air. Arizona’s public policy assisting ELL students belongs with elected representatives, not in the courts.
There is great reason to be excited about the future. Recent test results have proven that Structured English Immersion works and is the best way to teach our youngsters a command of the English language. Today’s decision will help move past gridlock in the court room, to success in the classroom. That’s good news for students and good news for Arizona. Now we need to roll up our sleeves and get on with it and teach these children English.
Please see our previous post for a link to the Court’s opinion.
There is great reason to be excited about the future. Recent test results have proven that Structured English Immersion works and is the best way to teach our youngsters a command of the English language. Today’s decision will help move past gridlock in the court room, to success in the classroom. That’s good news for students and good news for Arizona. Now we need to roll up our sleeves and get on with it and teach these children English.
Please see our previous post for a link to the Court’s opinion.
Legislature Prevails in U.S. Supreme Court ELL Case
Speaker Adams, President Burns and Superintendent Horne prevailed by a 5-4 decision in the United States Supreme Court ELL case.
You can view the Court’s opinion here - Horne v. Flores (PDF)
You can view the Court’s opinion here - Horne v. Flores (PDF)
AZ Supreme Court Denies Relief To Governor
June 23 2009 17:05
The court took jurisdiction but denied relief to the governor, which means the Legislature does not have to transmit the bills immediately, but no later than June 30.
From the beginning, the Speaker and the President have said these bills will be transmitted in this session. We are pleased the Court will not intervene in the present situation and we will continue to work with the Governor to reach consensus on a budget.
Click on the following link to see the court’s order - Brewer v. Burns Court Order 6_23_9
(PDF)
From the beginning, the Speaker and the President have said these bills will be transmitted in this session. We are pleased the Court will not intervene in the present situation and we will continue to work with the Governor to reach consensus on a budget.
Click on the following link to see the court’s order - Brewer v. Burns Court Order 6_23_9
(PDF)
Speaker Adams Discusses Budget In Six, Two-Minute Videos
Speaker Kirk Adams sets the record straight on the budget, education, economic recovery and Arizona’s future. He does so through six different videos discussing these issues and many more.
Speaker & President File Brief
June 19 2009 17:25 Filed in: Budget | Supreme Court
The Speaker and the President have filed a brief with the Arizona Supreme Court in response to Governor Jan Brewer’s petition.
Please click on the following link to see the brief (large PDF file, 90 pages) - Speaker and President's Response Brief
Oral arguments will be held in the case Tuesday morning at 10am. You can find the live stream at this link.
Please click on the following link to see the brief (large PDF file, 90 pages) - Speaker and President's Response Brief
Oral arguments will be held in the case Tuesday morning at 10am. You can find the live stream at this link.
New Media Resources for Real Time Info
June 19 2009 16:43 Filed in: New Media
In case you’re not already receiving our updates, you can get real time information on budget and policy related issues at the Arizona Legislature by following us on Twitter (@AZHouseGOP), Facebook or signing up for our RSS feed.
Please click on any of the tabs to the left to access all of these new media resources.
You can also view the Senate’s website at this link.
Please click on any of the tabs to the left to access all of these new media resources.
You can also view the Senate’s website at this link.
Taxpayers Urge Legislature To Prevent Tax Increase
Representative David Gowan (R) District 30
This morning, the Arizona Chapter of Americans for Prosperity (AFP) held a press conference at the State Capitol urging legislators to prohibit a $1 billion dollar tax increase on Arizonans.
AFP utilized a gigantic ATM machine titled “Already Taxed to the Max” to make their point.
Representatives David Gowan, David Stevens, Frank Antenori and Senators Pamela Gorman and Russell Pearce all spoke at the event.
The Legislature and Governor are currently negotiating how best to deal with the worst fiscal crisis in Arizona’s history.
Speaker Adams Discusses Budget on KFNN
Speaker Kirk Adams appeared on Arizona’s Financial News Radio KFNN 1510 to discuss the budget, Governor Brewer’s proposed tax increase, education and other budget related issues.
The entire interview lasts a little over seven minutes.
Please click on this link to listen - Speaker Adams KFNN 6_12_9
The entire interview lasts a little over seven minutes.
Please click on this link to listen - Speaker Adams KFNN 6_12_9
Pro-Growth Advocacy Group Supports AZ Legislature In Holding Budget Bills
The Arizona Free Enterprise Club issued a news release earlier today regarding the Legislature’s desire to hold the budget bills while seeking an agreement with Governor Brewer on the budget.
The news release says:
“Steve Voeller, president of the Arizona Free Enterprise Club, a pro-growth advocacy group, today expressed support for the legislative leadership’s decision to hold the budget bills passed two weeks ago while continuing to negotiate the details with Gov. Brewer.
This morning, the governor filed a special-action lawsuit in an attempt to force the legislature to transmit the bills, which she intimated she would likely veto.
“The timing of when budget bills get transmitted to the governor is inside baseball for most people,” Voeller said. “But as a co-equal branch of government, the legislature’s decision to assert their role in this process is a positive development for taxpayers and the direction of the state.”
The legislature intends to pass a budget that does not raise taxes. The governor called for a budget that includes an increase in sales and property taxes.
Senate President Bob Burns (R-Peoria) and House Speaker Kirk Adams (R-Mesa) pledged to transmit the bills before June 30, the end of this legislative session.
The Arizona Constitution does not mandate when legislation that passes the legislature be transmitted to the governor. The budget bills passed the House and Senate on June 4.”
The news release says:
“Steve Voeller, president of the Arizona Free Enterprise Club, a pro-growth advocacy group, today expressed support for the legislative leadership’s decision to hold the budget bills passed two weeks ago while continuing to negotiate the details with Gov. Brewer.
This morning, the governor filed a special-action lawsuit in an attempt to force the legislature to transmit the bills, which she intimated she would likely veto.
“The timing of when budget bills get transmitted to the governor is inside baseball for most people,” Voeller said. “But as a co-equal branch of government, the legislature’s decision to assert their role in this process is a positive development for taxpayers and the direction of the state.”
The legislature intends to pass a budget that does not raise taxes. The governor called for a budget that includes an increase in sales and property taxes.
Senate President Bob Burns (R-Peoria) and House Speaker Kirk Adams (R-Mesa) pledged to transmit the bills before June 30, the end of this legislative session.
The Arizona Constitution does not mandate when legislation that passes the legislature be transmitted to the governor. The budget bills passed the House and Senate on June 4.”
Majority Leadership Responds to Gov. Brewer
June 15 2009 16:43 Filed in: Budget
The Governor issued an ultimatum this morning that either the Legislature transmit the budget bills passed June 4 to her or she would pursue litigation in the Arizona Supreme Court to compel the Legislature to transmit the bills.
Here’s the House’s response:
Letter to Governor Brewer 6_15_9 (PDF)
Here’s the House’s response:
Letter to Governor Brewer 6_15_9 (PDF)
Speaker & President Issue Joint Response To Governor’s Press Conference
“It is regrettable that we now have another delay in negotiations. It is unfortunate the governor is seeking to involve the courts in an ongoing budget negotiation while the Legislature is still in session. It delays and obstructs the process.”
GOP Budget Protects Stimulus Funding
The doom and gloom headlines and predictions about the state losing federal stimulus dollars for education because GOP budget reductions were too “severe” have been proven untrue.
Yesterday news broke that federal officials approved Arizona’s plans for $1 billion in education stimulus funding. The Majority budget did not place stimulus money at-risk when the Legislature passed a balanced FY2010 budget last week.
In fact, Majority members intended all along to utilize federal stimulus funding to backfill education reductions as they worked to ensure education be held as harmless as possible throughout the budget process.
Unfortunately, many legislators received emails and phone calls from concerned teachers, parents and students due to Governor Brewer’s, the Democrats and the universities’ very public concerns about the GOP budget proposal that in the end wasn’t even accurate.
The Majority budget did not endanger the state of losing federal stimulus dollars. The accusations and attacks were unwarranted, unsubstantiated and more importantly, unnecessary.
Yesterday news broke that federal officials approved Arizona’s plans for $1 billion in education stimulus funding. The Majority budget did not place stimulus money at-risk when the Legislature passed a balanced FY2010 budget last week.
In fact, Majority members intended all along to utilize federal stimulus funding to backfill education reductions as they worked to ensure education be held as harmless as possible throughout the budget process.
Unfortunately, many legislators received emails and phone calls from concerned teachers, parents and students due to Governor Brewer’s, the Democrats and the universities’ very public concerns about the GOP budget proposal that in the end wasn’t even accurate.
The Majority budget did not endanger the state of losing federal stimulus dollars. The accusations and attacks were unwarranted, unsubstantiated and more importantly, unnecessary.
Pink Slipped Teachers Re-hired
The teacher’s union and the Democrats owe public school teachers an apology.
The teacher’s union (Arizona Education Association) actively opposed a bill (HB2630) that sought to give school districts more time before notifying teachers about renewal of their contracts for the upcoming school year. The plan was to change the teacher notification period from April 15th to June 15th to allow districts to gain a better understanding of their budgets for the coming school year.
However, the AEA and Democrats severely exaggerated the size of the GOP education cuts, saying Republicans sought to pass the bill to hide huge budget reductions to education. The GOP has been vindicated as the teachers who received reduction-in-force notices in April are now being rehired by their respective school districts.
A recent article in The Arizona Republic, “Valley district recall teachers laid off in April” details the school districts rehiring teachers.
Examples of teachers being rehired include:
John Wright from the Arizona Education Association in particular needs to apologize to teachers for instilling fear and spreading inaccurate information. Wright claimed cuts to education would be over $990 million to K-12 alone.
The recent Majority budget passed by the Legislature consisted of $220 million in cuts to education, or approximately 2 percent of their overall budget. And as the Majority assumed, the federal government has approved $832 million of stimulus funds to be applied towards education in Arizona.
Instead of working with the school districts and this body, the AEA and the Democrats opted to work against school teachers and the students of Arizona.
The teacher’s union (Arizona Education Association) actively opposed a bill (HB2630) that sought to give school districts more time before notifying teachers about renewal of their contracts for the upcoming school year. The plan was to change the teacher notification period from April 15th to June 15th to allow districts to gain a better understanding of their budgets for the coming school year.
However, the AEA and Democrats severely exaggerated the size of the GOP education cuts, saying Republicans sought to pass the bill to hide huge budget reductions to education. The GOP has been vindicated as the teachers who received reduction-in-force notices in April are now being rehired by their respective school districts.
A recent article in The Arizona Republic, “Valley district recall teachers laid off in April” details the school districts rehiring teachers.
Examples of teachers being rehired include:
- Gilbert Public Schools has rehired 130 of 267 teachers who received pink slip notifications in April.
- Peoria Unified School District is recalling 188 of the more than 300 teachers previously laid off.
- Dysart Unified School District has recalled 104 of 209 laid-off teachers.
- Scottsdale Unified School District said last month that it could fill 129.5 of the 221 positions cut in April.
- Deer Valley Unified School District has recalled 71 of 105 teachers.
John Wright from the Arizona Education Association in particular needs to apologize to teachers for instilling fear and spreading inaccurate information. Wright claimed cuts to education would be over $990 million to K-12 alone.
The recent Majority budget passed by the Legislature consisted of $220 million in cuts to education, or approximately 2 percent of their overall budget. And as the Majority assumed, the federal government has approved $832 million of stimulus funds to be applied towards education in Arizona.
Instead of working with the school districts and this body, the AEA and the Democrats opted to work against school teachers and the students of Arizona.
Leadership Discusses Budget Movement
June 10 2009 14:26 Filed in: Budget
House Speaker Kirk Adams and Senate President Bob Burns discuss last Thursday night’s budget passage and recent negotiations with Governor Brewer.
Click on this link or click on the picture below to go to the Horizon website to view the video in it’s entirety.
Click on this link or click on the picture below to go to the Horizon website to view the video in it’s entirety.
Hidden Tax In Legislative Budget Untrue
Recent headlines claim Republican legislators have hidden a tax increase in last Thursday evening’s budget.
It’s simply untrue.
The recent budget proposal passed by the State Legislature does not raise taxes either openly or secretly.
The budget merely introduces a single assessment ratio for both businesses and homeowners. So instead of businesses being taxed on their property at 22 percent and homeowners at 10 percent, both businesses and homeowners will pay the same assessment ratio (if approved by voters). This is not a tax but merely shifts the burden away from businesses to an equitable level with homeowners.
Additionally, the single assessment ratio leaves it up to the voters to decide. This is not imposed upon Arizona citizens by the Legislature, but leaves it up to voter discretion to vote ‘yea’ or ‘nay’ in an override or bond election. Knowing their decisions will no longer be subsidized by businesses, homeowners are empowered to consider whether they would support any future overrides or bond elections, knowing they will be paying on an equitable level with businesses.
The single assessment change is prospective, meaning it will only affect future taxes and as already mentioned, at the voter’s discretion. Moving forward, voters will have a chance to vote on overrides and bond elections giving homeowners more responsibility and accountability for their actions knowing an increase will no longer allow them to be subsidized by a 2 to 1 ratio through local businesses.
Furthermore, the budget proposal also removes the single most punitive tax that disincentivizes businesses from moving to Arizona - the state’s business property tax. The state property tax is a severe handicap on existing Arizona businesses and a sizeable deterrent to business relocation. While Arizona tries to lure businesses into the state, the state property tax makes businesses think twice about moving here.
By prospectively shifting the tax to an equal amount to both businesses and homeowners, the Legislature still keeps in place local control, but includes more responsibility and accountability to the homeowner in voting for a future override or bond election, while also expanding the scope for job creation and capital investment by businesses in the state.
It’s simply untrue.
The recent budget proposal passed by the State Legislature does not raise taxes either openly or secretly.
The budget merely introduces a single assessment ratio for both businesses and homeowners. So instead of businesses being taxed on their property at 22 percent and homeowners at 10 percent, both businesses and homeowners will pay the same assessment ratio (if approved by voters). This is not a tax but merely shifts the burden away from businesses to an equitable level with homeowners.
Additionally, the single assessment ratio leaves it up to the voters to decide. This is not imposed upon Arizona citizens by the Legislature, but leaves it up to voter discretion to vote ‘yea’ or ‘nay’ in an override or bond election. Knowing their decisions will no longer be subsidized by businesses, homeowners are empowered to consider whether they would support any future overrides or bond elections, knowing they will be paying on an equitable level with businesses.
The single assessment change is prospective, meaning it will only affect future taxes and as already mentioned, at the voter’s discretion. Moving forward, voters will have a chance to vote on overrides and bond elections giving homeowners more responsibility and accountability for their actions knowing an increase will no longer allow them to be subsidized by a 2 to 1 ratio through local businesses.
Furthermore, the budget proposal also removes the single most punitive tax that disincentivizes businesses from moving to Arizona - the state’s business property tax. The state property tax is a severe handicap on existing Arizona businesses and a sizeable deterrent to business relocation. While Arizona tries to lure businesses into the state, the state property tax makes businesses think twice about moving here.
By prospectively shifting the tax to an equal amount to both businesses and homeowners, the Legislature still keeps in place local control, but includes more responsibility and accountability to the homeowner in voting for a future override or bond election, while also expanding the scope for job creation and capital investment by businesses in the state.
Legislative Budget Complies With Stimulus Funding Requirements
The Arizona Joint Legislative Budget Committee (JLBC) has responded to a concern by the Arizona Board of Regents that the Arizona legislature passed a budget that would prevent the acceptance of federal stimulus dollars.
The following is the JLBC’s response…
“We understand that the universities are contending that the Legislative budget proposal would place the state out of compliance with the requirements to receive Federal Stabilization Funds from the American Recovery and Reinvestment Act. The Universities’ concerns seemed to be centered on the auxiliary fund transfers and the payment deferrals.
The intent of the Legislative proposal is to draw down all available Federal Stabilization Fund dollars. We are unaware of any provision of the legislation being out of compliance with federal statutory requirements or with subsequent United States Department of Education (USDOE) guidance...”
To read more, please click on this link: ABOR Letter 6-8-09 (PDF)
The following is the JLBC’s response…
“We understand that the universities are contending that the Legislative budget proposal would place the state out of compliance with the requirements to receive Federal Stabilization Funds from the American Recovery and Reinvestment Act. The Universities’ concerns seemed to be centered on the auxiliary fund transfers and the payment deferrals.
The intent of the Legislative proposal is to draw down all available Federal Stabilization Fund dollars. We are unaware of any provision of the legislation being out of compliance with federal statutory requirements or with subsequent United States Department of Education (USDOE) guidance...”
To read more, please click on this link: ABOR Letter 6-8-09 (PDF)
Schedule For The Week 6/8/9 - 6/12/9
June 08 2009 13:13
Tomorrow the House will go to the floor at the usual 1:30 p.m. time.
Wednesday and Thursday the House will start Floor at 10:00 a.m.
There will be large Third Read calendars for all three days.
Please click on this link to see calendars for the Floor.
Wednesday and Thursday the House will start Floor at 10:00 a.m.
There will be large Third Read calendars for all three days.
Please click on this link to see calendars for the Floor.
Saving The State's Budget: The Republican's Plan
GOP tackles deficit without burdening state with tax hike
Senate President Bob Burns and House Speaker Kirk Adams
Arizona Republic
June 8, 2009
Arizona's economy has been severely impacted by the worldwide recession. The recent decline in commercial activity is reflected in the state's record-setting budget shortfall as demands for government spending continue to outpace the economy's ability to generate tax revenues.
The original budget signed by former Gov. Janet Napolitano for fiscal 2009 has had to be repaired several times and has left the new governor and state Legislature with severely limited options.
But to govern is to choose. Your elected leaders have chosen carefully and wisely to manage the state's finances in a manner that prepares government agencies for the near-term realities of the state's tax collections, while doing no harm to an ailing and fragile economy upon which state government relies.
The budget the legislative majority passed takes necessary action to reduce the size of government. Like employers and households across Arizona, state government has to tighten its belt and prepare for what may very well be a long recession and slow recovery.
Opponents of the majority budget say it will decimate state services and education. This is simply not true. Our budget tackles the structural deficit without raising taxes, while continuing to fund essential state services and education out of the general fund. Our budget also directs additional funding toward those services and education with federal stimulus dollars.
The legislative-majority budget allows the state to operate at nearly 95 percent of its funding levels from fiscal 2009. Arizona households and employers have already adjusted their spending levels to deal with the poor economy more significantly than 5 percent. Families and businesses have had to do more with less. Government must, too.
We have taken measured steps toward significant tax reform and improved our potential for recovery by prospectively addressing excessive commercial and agricultural property taxes.
We avoided a property-tax increase that was intentionally programmed to reappear on taxpayers' property-tax statements this fall. Raising taxes now will only exacerbate the situation, and we find it unconscionable to ask the people of this state to endure a tax increase on top of these already crippling economic times.
Clearly, the state's deficit has hit historic lows, with only bad and worse solutions to balance the state budget. With so few options, we can learn from California, where voters refused a tax increase to help balance their budget, opting instead for further cuts to government programs.
Or look to Washington state, where they balanced their budget by cutting $4 billion in government spending over two years. In both states - and with a Democratic majority - voters and lawmakers alike recognized new taxes do not solve their budget problems.
We have long contended there have been no easy choices as we balanced this budget, but our solution is the best for Arizona.
Senate President Bob Burns and House Speaker Kirk Adams
Arizona Republic
June 8, 2009
Arizona's economy has been severely impacted by the worldwide recession. The recent decline in commercial activity is reflected in the state's record-setting budget shortfall as demands for government spending continue to outpace the economy's ability to generate tax revenues.
The original budget signed by former Gov. Janet Napolitano for fiscal 2009 has had to be repaired several times and has left the new governor and state Legislature with severely limited options.
But to govern is to choose. Your elected leaders have chosen carefully and wisely to manage the state's finances in a manner that prepares government agencies for the near-term realities of the state's tax collections, while doing no harm to an ailing and fragile economy upon which state government relies.
The budget the legislative majority passed takes necessary action to reduce the size of government. Like employers and households across Arizona, state government has to tighten its belt and prepare for what may very well be a long recession and slow recovery.
Opponents of the majority budget say it will decimate state services and education. This is simply not true. Our budget tackles the structural deficit without raising taxes, while continuing to fund essential state services and education out of the general fund. Our budget also directs additional funding toward those services and education with federal stimulus dollars.
The legislative-majority budget allows the state to operate at nearly 95 percent of its funding levels from fiscal 2009. Arizona households and employers have already adjusted their spending levels to deal with the poor economy more significantly than 5 percent. Families and businesses have had to do more with less. Government must, too.
We have taken measured steps toward significant tax reform and improved our potential for recovery by prospectively addressing excessive commercial and agricultural property taxes.
We avoided a property-tax increase that was intentionally programmed to reappear on taxpayers' property-tax statements this fall. Raising taxes now will only exacerbate the situation, and we find it unconscionable to ask the people of this state to endure a tax increase on top of these already crippling economic times.
Clearly, the state's deficit has hit historic lows, with only bad and worse solutions to balance the state budget. With so few options, we can learn from California, where voters refused a tax increase to help balance their budget, opting instead for further cuts to government programs.
Or look to Washington state, where they balanced their budget by cutting $4 billion in government spending over two years. In both states - and with a Democratic majority - voters and lawmakers alike recognized new taxes do not solve their budget problems.
We have long contended there have been no easy choices as we balanced this budget, but our solution is the best for Arizona.
Your Thoughts on Arizona Budget
Thank you for your many emails to the House Republican caucus website.
The following is a sampling of emails in response to the fiscal year 2010 budget:
William C. - “Hold fast! No new taxes. Cut what you must.”
John J. - “No new TAXES! Tell Brewer and the Libs to Stick it!”
Nancy Y. - “I support your legislative plan. We cannot raise taxes. Some agencies must be cut back. We must operate like a business. We must have checks on departments. You can't just say "I ran out of money, I need more". Get it under control. We all have had to tighten our belts. All the states must do it as well. There must be ways to consolidate purchase and use of supplies. Salaries must just hold for a while. Raises must wait. Benefits cannot increase. We must make businesses welcome in our state, if they provide jobs and spending in our city.”
Ronald R. - “I agree with your 2010 budget. Please do not support the Governor's plan for sales tax increases. The problem is SPENDING. I know it takes courage to cut expenses but that is what you must do. Every special interest wants to keep their 'goodies'. It is time to take the hatchet to this state's wasteful spending and unnecessary spending. I repeat that the problem is entirely SPENDING. There isn't an area of government that can't be cut...”
The following is a sampling of emails in response to the fiscal year 2010 budget:
William C. - “Hold fast! No new taxes. Cut what you must.”
John J. - “No new TAXES! Tell Brewer and the Libs to Stick it!”
Nancy Y. - “I support your legislative plan. We cannot raise taxes. Some agencies must be cut back. We must operate like a business. We must have checks on departments. You can't just say "I ran out of money, I need more". Get it under control. We all have had to tighten our belts. All the states must do it as well. There must be ways to consolidate purchase and use of supplies. Salaries must just hold for a while. Raises must wait. Benefits cannot increase. We must make businesses welcome in our state, if they provide jobs and spending in our city.”
Ronald R. - “I agree with your 2010 budget. Please do not support the Governor's plan for sales tax increases. The problem is SPENDING. I know it takes courage to cut expenses but that is what you must do. Every special interest wants to keep their 'goodies'. It is time to take the hatchet to this state's wasteful spending and unnecessary spending. I repeat that the problem is entirely SPENDING. There isn't an area of government that can't be cut...”
One Cent Tax Makes AZ 7th Highest In Nation
June 03 2009 13:33 Filed in: Budget
A one-cent sales tax is the largest tax increase in Arizona’s history. Such an increase will make Arizona the 7th highest in sales tax rate in the country. Only California, Indiana, Mississippi, New Jersey, Rhode Island and Tennessee have a higher sales tax rate.
Additionally, a tax that raises $1 billion dollars in tax revenue will cost 14,400 private sector jobs, real economic output will decline by $1.2 billion, and Arizonans total after-tax income will fall by $760 million, or nearly $300 per household on average per year.
Please click on the below link that illustrates how a one-cent tax will put a large majority of Arizona localities at or above a 10 percent combined tax. Kindly note the “Total Rate.”
State and Local Retail Sales Tax (PDF)
Additionally, a tax that raises $1 billion dollars in tax revenue will cost 14,400 private sector jobs, real economic output will decline by $1.2 billion, and Arizonans total after-tax income will fall by $760 million, or nearly $300 per household on average per year.
Please click on the below link that illustrates how a one-cent tax will put a large majority of Arizona localities at or above a 10 percent combined tax. Kindly note the “Total Rate.”
State and Local Retail Sales Tax (PDF)
Legislative Budget Action Today & Tomorrow
June 03 2009 11:03 Filed in: Budget
The House is scheduled to hear budget bills tomorrow afternoon while the Senate is scheduled to hear budget bills tonight at 6pm.
Please click on the below link for the joint House and Senate Budget Plan:
House and Senate Budget Plan 6_3_9 (PDF)
Please click on the below link for the joint House and Senate Budget Plan:
House and Senate Budget Plan 6_3_9 (PDF)