Arizona House Republicans

Statement from Speaker of the House RE: Today's Special Session

AZHouseRepublicans@gmail.com — 2009-12-17T17:23:34-07:00

“Nearly 12 months into the worst budget deficit and economic crisis this State has ever faced, not a single Democrat has voted to reduce government spending by even one dollar. The Democrats have yet to produce a detailed budget proposal, and have decided to use procedural tactics to block these necessary cuts from coming to the Floor, cuts that even they acknowledged are necessary.

The Democrats partisan gamesmanship will result in the wasting of thousands of taxpayer dollars. We ask our Democratic members to stop the stall tactics and get into the game.”

Healthcare "Reform" Hurts AZ Pt. II

AZHouseRepublicans@gmail.com — 2009-11-25T09:50:13-07:00

By Representative Nancy Barto (R-Legislative District 7)

Far from achieving the objectives of providing healthcare to all Americans and lowering costs, Arizona citizens can count on these outcomes instead if healthcare “reform” passes as is:

Increased unemployment
The imposition of $135 billion in new taxes on businesses who cannot afford to finance their workers’ health coverage will increase unemployment.

Even the Congressional Budget Office confirmed that this tax on jobs, called a “pay-or-play” mandate, “could reduce the hiring of low-wage workers,” and that as many as 5.5 million jobs could be lost as a result of the new taxes.

The employer mandate isn’t the only new tax targeting businesses.

The bill includes nearly half a trillion dollars in other taxes – including a surtax on the so-called “wealthy” that actually hit more than half of small businesses right where they live.

This will greatly stifle job creation and hinder expansion at a time when unemployment is at a 26 year high. Together this equals new taxes totaling $729.5 billion just on businesses.

Unfunded mandate on states
Arizona is $2 billion in the red this year and the 2011 budget is looking almost twice as bad - yet Washington’s plan forces states to increase eligibility in their Medicaid programs, costing Arizona as much as $5.9 billion more over five years.

Governor Brewer expressed these concerns in the Arizona Republic, saying, “We can’t afford it. We can’t afford the AHCCCS program we have currently.”

Which is why Congress included a $90 billion Medicaid bailout in the “Stimulus” package and another $23.5 billion bailout in this bill.

Higher insurance costs
Contrary to Congress’ goal to lower healthcare costs, this plan will raise the cost of insurance significantly - for everyone. Here’s why:

First, new Federal rules mandate all plans, whether private, employer or government-run, will have to meet minimum benefits standards and comply with community rating and guaranteed issue mandates. We would basically model the nation’s plan after what the state of New York put in place in the early 1990’s. Their average premiums in the individual market are more than twice the national average and still 14% of the population remains uninsured.

Second, the bill does not allow for lower cost plans, such as high deductible health plans and consumer-directed accounts like HSAs, to exist going forward, removing this option for 5% of Americans under 65.

Third, young and healthy persons, whose insurance premiums now cost about ¼ the average premium paid by individuals aged 60-64, will subsidize the premiums of more disease-prone and older adults under the new plan - and it will cost them. As a result, many will choose or be forced to pay the 2.5% of their income in penalties rather than the high cost of insurance. Mandates don’t work. Hawaii has had an individual insurance mandate since 1973 and a 10% uninsured rate.

Healthcare freedom threatened
Nowhere does the United States Constitution provide Congress the right to force its citizens to purchase health insurance.

This bill usurps fundamental freedoms Arizonans enjoy - to be able to purchase health care privately and whether or not to participate in a health plan.

The Arizona Legislature referred the Arizona Healthcare Freedom Act to the ballot next year so Arizona citizens have the opportunity to preserve these fundamental rights in our state constitution.

Real and substantive health care reforms are critical to Arizona, but only with freedom as a foundation.

AEA Fights Good Policy Yet Again

AZHouseRepublicans@gmail.com — 2009-11-23T16:02:44-07:00

The Arizona Education Association (AEA), Arizona’s largest teacher’s union filed a special action lawsuit in the Arizona Supreme Court against the State Legislature and Governor Jan Brewer for changes to education policy in the 3rd Special Session.

The reasons for the policy changes are numerous and an improvement upon previous policy. The AEA’s actions to file suit has made their self-interest blatantly obvious.

Here are a few questions to help determine where you stand:
- Do you want the best teachers in the classroom?
- Should a teacher be given a contract based on performance?
- Should underperforming teachers be let go?
- Do you want to stop the forced teacher layoffs due to an arbitrary contract signing date?

If you answered ‘no’ to any of these questions, you agree with the AEA.

If you answered ‘yes’ to any of these questions, you’re looking after the best interests of students and teachers.

The policy change allows school districts to retain and reward teachers based on their performance rather than the current procedure of basing promotion and retention solely on years served on the job.

Those who voted for this provision did so for numerous reasons:

- They want the best teachers in the classroom
- They believe a school district's decision to employ or re-employ a teacher should be based on a quality assessment of the teacher and how well they are teaching students.
- Like most jobs, years-of-service is a positive indicator of experience, but it should not be the only indicator of quality. Communication, effectiveness, enthusiasm, work ethic, knowledge, and student progress are all factors that should come into play when employment or promotion decisions are made.
- Parents, and yes, even teachers have told legislators for years that good teachers should be rewarded, while underperforming teachers should be let go.

The new policy allows school districts flexibility in setting timetables for entering teacher contracts. Teachers are one of the few employees, even among State employees, that have guaranteed employment contracts for a set period of time.

Last year when school districts were uncertain about how much money they would have, school districts were forced to lay off many more teachers than they needed to simply because the teacher union wanted the contracts signed by May 15th. For more info on this, click on this link.

If the districts would have been allowed to postpone the contract signing date, only a few teachers would have been laid off and the fear and anxiety caused by massive layoffs would have been avoided.

Arizona school districts issued reduction-in-force notices to about 7,000 teachers on April 15, 2009. By June those same school districts were rehiring those teachers because the school district was not given the flexibility to postpone contract-signing time.

Last, the new policy stops the practice of paying teachers for days that they were using for union activity.

Parents and taxpayers want their money used to teach students, not to lobby for a particular cause. Instead teachers were given extra paid days off in addition to their vacation and sick days to support union activities.

The new law does not prohibit individual employees of school districts from taking compensated leave time for any personal purpose, any professional purpose or any other lawful purpose. Like any other job, if a teacher desires to participate in union activities, they are free to use vacation days. Why should a teacher receive extra vacation days on the taxpayers’ dime to lobby for union activities?

One has to wonder what the AEA, the teacher’s union who claims their main purpose is “to advance the cause of public education” would fight against and now litigate against such good policy…

Healthcare "Reform" Hurts AZ Pt. I

AZHouseRepublicans@gmail.com — 2009-11-23T13:16:42-07:00

By Rep. Nancy Barto (R-Legislative District 7)

Congress’ Healthcare “Reform” bill is a mere handful of votes shy of passage.

Far from achieving the objectives of providing healthcare to all Americans and lowering costs, Arizona citizens can count on these outcomes instead:

Fundamental change in the standard of care. While more people may technically be “covered,” over-utilization of services will lead to longer waits for health care and inevitable rationing of care.

Not to worry, though. The bill plans for this.

A 15-member health commission, much like those in countries with similar nationalized healthcare, will have extraordinary powers to dictate what is covered, for whom and how it will be paid for.

This change will bring a fundamental shift to our system - from doctors providing medical treatment based upon whether it is safe and effective to a cost-effectiveness standard.

Trust between the doctor and patient will be compromised as patients question in whose best interest their doctor may be acting. Reducing medical care to a commodity-driven business model places every patient’s life at the mercy of a panel’s worthiness criteria.

Being denied care or waiting to see your primary care physician, or obtain diagnostic tests results in inferior medical outcomes and higher mortality rates, such as are evidenced in Canada and the U.K. Why these outcomes are not an integral part of the healthcare debate is troubling.

There is a reason medical tourism is booming business in the U.S. We have the best medical care in the world.

Most other nations, especially those with nationalized healthcare, lack what it takes to be the best – a system that rewards the best – the best hospitals, the best surgeons, the best drug therapies available.

Is it a coincidence that the incentives in medicine drive medical innovation? Changing the incentives will also drive physicians out of the profession as they will no longer be caring for patients, but delivering treatment according to formula.

Practicing physicians will be further negatively affected by this bill as it does not address a major cause of rising costs of health care: medical malpractice lawsuits.

An AMA survey reported 93% of physicians report practicing defensive medicine, costing the U.S. $865 billion in indirect costs. Instead, the plan rewards states that ignore this issue and withholds funding from those that cap non-economic damages and pass other tort reforms.

Under the current system people are divorced from health care cost considerations since a third party – either an employer or insurance – is managing them. Fixing this disconnect is key to promoting an economically and physically fit citizenry.

In other words, people taking responsibility for their health, staying well and spending their healthcare dollars wisely. Instead, Congress’ plan emulates failing government programs that do just the opposite. The result is an unsustainable Medicare system with a $38 trillion liability...

Congressional Ds Push Same Failed Policies

AZHouseRepublicans@gmail.com — 2009-11-18T16:03:15-07:00

The Obama Administration promised unemployment wouldn’t rise above 8 percent with the passage of the “stimulus,” however, unemployment currently stands at 10.2 percent nationally, which is the highest unemployment rate this country has seen in 26 years.

Congressional Democrats are now concerned about the 2010 election and as a result will push a “jobs” bill before the end of the year, perhaps to try and convince the public they really are rolling up their sleeves and doing something, anything really, to create jobs.

They hope to get a “jobs” bill out before the House is slated for adjournment on December 18, although this date could change depending on what happens with the job killing “Healthcare reform” bill that’s already passed the House.

Concerning the “jobs” bill, Congressional Democrats have put ideas on the table that merely push the same policies found in the already passed “stimulus” bill. They have communicated a desire to extend unemployment benefits and provide additional funding for highway and other “critical” infrastructure projects.

Sure, government can hire a potentially infinite number of “employees” to dig a hole and then fill the hole, but that doesn’t mean such action is good for the economy, or that it bodes well for long-term growth. It simply means there are now new workers on the public’s dime that may or may not be contributing to long-term growth while saddling taxpayers with massive debt obligations.

According to Andrew Taylor of the Associated Press, all of the ideas Congressional Democrats have proposed don’t directly create new jobs.

Rather, stimulus packages merely fund one-off bouts of consumption spending. By contrast, job creation and economic growth require capital accumulation via savings; firms cannot invest in new production and employees without marshalling the requisite capital. Capital accumulation and the resultant creation of jobs, rising incomes, and economic growth accumulates to the extent government refrains from engaging in activities that impair capital accumulation and increases the cost of doing business (taxes, regulations, price controls, unionization). Siphoning of capital accumulated via savings to fund consumption by government and recipients of its spending hamper job creation and economic growth.

For more info, kindly click on this link.

So why is a proposal to continue a failed policy not raising more questions? Why would we want to continue the same failed policies that have done nothing to prevent the shedding of 3 million jobs? When we are digging a hole deeper and deeper, shouldn’t we stop digging and reevaluate? And aren’t we obligated to actually help businesses, you know, those who actually create jobs?

Although the nearly $1 Trillion price tag for the “stimulus” bill hasn’t stemmed unemployment or created jobs, someone who has certainly kept his job is the guy who makes the signs. You know, the signs that pop up on freeways that spend taxpayer money to tell us…they’re spending taxpayer money?

So we can safely say at the very least, the stimulus has “created or saved” one job…the sign maker’s job!

Not to mention the Recovery.gov website that says the federal government spent $6.4 billion to create 30,000 jobs (or $225,000 per job) in Congressional districts that don’t exist…

The Roadmap To Prosperity - Jobs

AZHouseRepublicans@gmail.com — 2009-11-17T16:26:02-07:00

Arizona is projected to generate $6.5 Billion in revenue this year, however, state spending is hovering above $10 Billion giving us at least a $3.5 billion ongoing imbalance between revenues and spending obligations.

Some have criticized the Legislature for not raising taxes (i.e. “increasing revenue”). Raising taxes in such a down economy will not only fail to bring in the desired revenue, but it will prolong any recovery we could’ve possibly had.

So what then is the solution?

Jobs.

Arizona can neither tax nor cut our way into prosperity. We must grow our way out of what is arguably the second-worst budget in the country behind California and the second-worst level of job losses behind Michigan.

This begs the question…how do we create more jobs?

We need a tax structure that promotes job growth and investment in Arizona now and in the future. Hence, we must pass good business tax policy to make Arizona more competitive.

Unfortunately, Arizona must compete with neighboring states like Texas, which has no personal or corporate income tax (or capital gains tax).

Texas has positioned itself as the highest performing job creation state in the Union due to a favorable business climate, a low cost/low tax environment along with predictable regulations on business. Such good policy has allowed Texas to create more jobs in 2008 than the rest of the 49 states in the U.S. One can make a great case for the causality between Texas’ low tax burden and their astonishing job creation.

Lowering taxes on the most productive aspects of society always attracts investment capital and helps create sustainable, high-wage jobs as we have seen in Texas, Utah and Colorado, the exact kinds of jobs we want to attract and retain in Arizona.

If we truly want to boost Arizona’s economy, we must focus on jobs by way of good tax policy that supports economic activity. State revenue growth will follow, as public spending and employment rely on the fruits of private sector activity.

Private School Tuition Tax Credit Review Committee To Hold Second Meeting Today

AZHouseRepublicans@gmail.com — 2009-11-16T09:50:55-07:00

WHAT: The second meeting of the Private School Tuition Tax Credit Review Committee formed by Speaker Kirk Adams (R-Dist. 19) in October is scheduled to meet today to review information provided from individual STO organizations regarding the application, administration and approval processes for the tax credits.

WHO:
- Dr. Charles North, Associate Professor of Economics, Baylor University will be testifying about his analysis of the economic impact of individual scholarship tax credit program to the state.
- Tax expert Jeff Hill, from Hill & Hill Accounting.
- Staff presentation on information provided by Arizona’s school tuition organizations.

WHEN:  Monday, November 16, 2009 at 1:00 p.m.

WHERE:  House Hearing Room 5, 1700 W. Washington, Phoenix, AZ

Click here to review today’s meeting agenda.

Prescott Wins 2nd Water Ruling In A Week

AZHouseRepublicans@gmail.com — 2009-11-05T18:01:57-07:00

Two recent rulings have occurred affecting the city of Prescott specifically, and Arizona’s groundwater management scheme generally.

In the first ruling last week, after nearly a year and eight different hearings, Administrative Law Judge Thomas Shedden said Prescott’s application to pump 8,600 acre-feet of groundwater from the Big Chino sub-basin meets all of the requirements of an assured water supply under the state’s groundwater management act and related regulations.

In the second ruling this week, Maricopa County Superior Court Judge Robert Oberbillig also ruled in favor of the City of Prescott ruling SRP’s surface water rights in the Verde River did not entitle it to participate in an administrative process concerning Prescott’s groundwater rights in the big Chino sub-basin. Additionally, Judge Oberbillig disagreed with SRP’s claims that the statute limiting objectors to assured water supply applications to residents within an Active Management Area was unconstitutional. Since the challenged statute was part of the original groundwater management act passed in 1980, which included a non-severability clause, had Judge Oberbillig found one of the original acts unconstitutional the entire act could have been struck down.

“In essence, SRP’s lawsuit threatened the very framework for how the state manages its groundwater supplies merely because it could not participate in an administrative process that has no legal bearing on its surface water rights,” Mr. Andy Tobin, House Majority Whip said.

SRP has challenged Prescott and Prescott Valley from importing this water and have lost at every point along the way.

“The court, ruling from the bench, made it most clear that there is no under ground water rights reserved to an owner based solely on the fact that the owner has rights to surface water. Clearly the courts are finding it hard to agree that SRP even has standing on the issue of Prescott’s right to import water from the Big Chino,” Mr. Andy Tobin, House Majority Whip said.

This week’s ruling upholds the city of Prescott’s position that we have legal rights to this imported water supply and there is no harm to SRP’s interests. The court has yet to recognize a harm to SRP. This is a groundwater proceeding, whereas SRP is arguing for both surface and groundwater. If they were successful it would have jeopardized anybody who has a well within that 20 mile zone and would’ve set a bad precedent,” Mr. Andy Tobin, House Majority Whip said.

The City of Prescott eventually plans on constructing a pipeline from the basin into the management area. ADWR issued an initial draft decision stating the supply met the assured water supply nearly a year ago. ADWR now has until on or before November 28 to make a final decision based upon Judge Shedden’s recommendation.

“I am heartened at this point as it appears the state agency and two different court judicial processes have affirmed Prescott’s right to import that water supply,” Mr. Andy Tobin, House Majority Whip said.

For more information about the presentation of this award, please contact Rep. Andy Tobin at 602-926-5172 or via email at atobin@azleg.gov.

About Rep. Andy Tobin:

Rep. Andy Tobin was elected to the Arizona House of Representatives in 2006, where he served as Vice-Chairman of the House K-12 Education Committee. In 2008, he was re-elected to the House and was also elected by his peers to serve as the Majority Whip. In addition to his leadership duties, he also serves on the Banking and Insurance Committee and Rules Committee.

He is the past national president of the U.S. Junior Chamber of Commerce and during his tenure worked hand-in-hand with the Reagan and Bush administrations on passage of the Line Item Veto and Balanced Budget Amendment. Locally, Rep. Tobin has served as a member of the Sharlot Hall Museum Executive Board of Directors; Prescott Good Gun; Arizona Rifle and Pistol Associations; the National Rifle Association; the Phoenix and Prescott Area Jaycees; and the Prescott, Chino Valley and Prescott Valley Chambers of Commerce.

Lowering Arizona's Dependence

AZHouseRepublicans@gmail.com — 2009-11-04T16:50:51-07:00

In the 2009 regular legislative session, both Democrats and a University report titled “Fiscal Alternative Choices Team” claimed Arizona’s sales tax is highly volatile.

In reality, the converse is true. Within Arizona’s tax structure, the Sales tax is one of the most stable components. When looking at collections for the last 20 years, the state sales tax as currently constituted is the least volatile of the state’s taxes.

Of Arizona’s three major tax sources (corporate, personal, sales), the corporate income tax (CIT) remains by far the most highly volatile revenue source for the state.

See this chart, which is a graph of tax collections from FY89 to FY09 and the average growth rate (return) on tax revenues.

Over the years, the CIT has gone from lower lows to higher highs, whereas the personal income tax (PIT) and Sales Tax remain relatively stable. Although in the last few years all three tax revenues are dangerously low, the Sales tax remains remarkably stable with the PIT a close second in stability.

As you can see from the chart, when the state economy lags, corporate income tax revenues lag with it. Thus, by lowering the state’s dependence upon the CIT, we will also take away the temptation by policymakers to depend on expanded tax revenues to boost ongoing spending in the good years, only to have to reverse those decisions when economic activity slows significantly.

Arizona can depend upon CIT for year-to-year spending or “pay as you go,” however, when the state increases new permanent spending and depends upon extraordinary CIT revenues to pay for the permanent increases, legislators have nowhere to turn in the down years except to increase taxes on an already exacerbated economy or cut services - neither option being desirable.

Volatility will occur regardless of tax structure. Down economies will generate lower tax revenues and vice versa. Yet there is much we can do to mitigate the cyclical nature of tax revenue - remove as many economic distortions in Arizona’s economy as possible, or the conditions that create economic inefficiencies. More to follow…

Raising the Corporate Income Tax...Who Really Pays?

AZHouseRepublicans@gmail.com — 2009-11-03T10:26:54-07:00

The Tax Foundation, a non-partisan research group conducted a study and found a causal relationship between states with comparatively low corporate taxes and rising employee wages.

The study specifically found that for every dollar reduction in state-local corporate income taxes resulted in a $2.50 rise in employee wages.

Unfortunately they found the converse to be true as well - for every one-dollar rise in corporate income taxes resulted in a $2.50 loss in employee wages.

Further, the study even found that states with low corporate tax rates have seen an increase in worker productivity.

Lately however, we seem to hear the rhetoric of “let’s tax the rich fat cats since they can afford to give a little more” drowning out any other voice of reason.

Unfortunately if the goal is to boost revenues, then this approach fails miserably. Instead of helping those they argue who need it the most, they end up hurting them by driving down employee wages.

And most states are paying attention…at least in 2009.

Of the 17 States in the U.S. that raised taxes in 2009, none of them raised their corporate income taxes. Interestingly, nine of the 17 tax raising states raised the individual income tax before going after the corporate income tax. Perhaps they know something the rhetoricians don’t?

The real question we must ask is not how can we burden corporations with more taxes, but how best can the corporate tax burden be divvied up amongst those who are in reality impacted by higher corporate taxes - workers, consumers and investors?

Without answering those questions we’re merely harming those we claim we’re helping - employees.

Rep. Seel Discusses IT Issues on Horizon

AZHouseRepublicans@gmail.com — 2009-10-28T15:51:25-07:00

Representative Carl Seel (R-District 6) appeared on Horizon to discuss the House’s new ad hoc committee on Information Technology. Rep. Seel discussed ways the committee can help with cost savings for Arizona, streamlining of government along with more government transparency.

Kindly click on this link or the KAET graphic below to see this brief but informative interview.

Rep. Andy Tobin Receives Award from Arizona Hospital & Healthcare Association

AZHouseRepublicans@gmail.com — 2009-10-27T15:03:59-07:00

Last week House Majority Whip Andy Tobin (R-Paulden) was honored by the Arizona Hospital and Healthcare Association (AzHHA) with a Legislative Appreciation Award for going above and beyond the call of duty this past legislative session in support of Arizona’s hospital community.

“I feel extremely fortunate to be recognized by the Arizona Hospital Association. The importance of access to adequate healthcare in rural Arizona is an extremely important issue for the citizens I represent,” Rep. Tobin said. “I’m glad to know my support helped my community,” he added.

This is the third recognition award Rep. Tobin received this year for his legislative leadership on a myriad of political issues in 2009, including the Legislator of the Year by the Arizona Chamber of Commerce and Industry.

In addressing relationships with Rep. Tobin and other supportive members of the legislature, AzHHA President John Rivers said, “Working together, these lawmakers championed a fiscal year 2010 budget that protected hospitals and the patients they serve. They are dedicated public servants who deserve the hospital community’s recognition.”

For more information about the presentation of this award, please contact Rep. Andy Tobin at 602-926-5172 or via email at atobin@azleg.gov.

About Rep. Andy Tobin:

House Committee On Information Technology Meets Tomorrow

AZHouseRepublicans@gmail.com — 2009-10-26T14:05:45-07:00

Tomorrow the Ad Hoc Legislative Committee on Agency Information Technology will host its first hearing in House Hearing Room 3 at 9:00 a.m. with Rep. David Stevens (R-Sierra Vista) as the chairman.

The interim Information Technology committee will focus on the effective delivery of service, improved interaction with business and industry, increased transparency and the reduction of costs to the public through the use of an e-Government system.

“With the present systems that are nearly 30 years old there doesn’t seem to be a guided vision for the state. We have an opportunity at the Legislature to provide guidance and direction to the state and hopefully to streamline e-Government to modernize and standardize the current infrastructure. I plan on using my 30 years of IT experience to accomplish just that,” Rep. Stevens said.

Committee members will hear testimony from the Department of Revenue, Department of Transportation, Government Information Technology and Arizona Health Care Cost Containment System regarding their current infrastructure and needs. Committee members will also conduct a tour of AHCCCS after the hearing.

The committee is tasked with examining the various city, county and state agency information technology capabilities and will make recommendations to facilitate the modernization and coordination of information technology.

Joining Rep. Stevens on the Information Technology committee are Vice Chair, Rep. Carl Seel and Rep. Rick Murphy, Rep. Laurin Hendrix, Rep. Debbie Lesko, Rep. Anna Tovar and Rep. Rae Waters.

For more information about this Committee, please contact Rep. David Stevens at 602-926-4321 or via email at dstevens@azleg.gov.

Republican Caucus Wins 6 of 10 Top Ten Tech Awards

AZHouseRepublicans@gmail.com — 2009-10-22T15:25:54-07:00

The Arizona House of Representatives Republican Caucus has received six of the ten “Tech Ten” legislator awards for their support of the technology industry in Arizona with the “Representative of the Year” award going to Representative Bill Konopnicki (R-District 5).

A focus on Arizona’s tech industry is especially critical given a recent report suggests the demand for tech exports from Arizona has slipped from $8.7 to $8.1 billion from 2007 to 2008.

Rep. Konopnicki received the highest award from the Arizona Technology Council for “his endless passion and dedication to education and economic development,” according to the Tech Council’s press release. Rep. Konopnicki is a board member of the Morrison Institute for Public Policy at Arizona State University along with chairing the House Natural Resources and Rural Development Committee.

Other legislators of the Republican Caucus receiving the Top Ten Tech award are Representatives Frank Antenori (R-District 30), Tom Boone (R-District 4), Laurin Hendrix (R-District 22), Lucy Mason (R-District 1), Michelle Reagan (R-District 8) and David Stevens (R-District 25).

The Arizona Technology Council seeks to distinguish Arizona as a leader in the technology community and offer resources that are exclusive to its members.

The awards ceremony will take place on Thursday, November 19 from 4p.m. to 10:30p.m. with the theme “Forging the Future,” and is presented by the Arizona Technology Council, the Arizona Department of Commerce and the Governor’s Celebration of Innovation.

Clean Energy Parks For AZ's Energy Needs

AZHouseRepublicans@gmail.com — 2009-10-19T10:30:55-07:00

Arizona House Majority Whip Andy Tobin (R-Paulden) strongly supports clean energy parks legislation and keeping the Navajo generating station running at full capacity.

Mr. Tobin is working with Representative Warde Nichols (R-Gilbert) to develop legislation that supports Arizona’s energy needs now and in the future through the creation of new, clean energy parks that may represent nuclear, wind, solar and other environmentally safe and efficient systems.

“We need to get government bureaucracy out of the way with respect to getting these business ventures started and assure the safety and efficiency for the next generations of Arizonans. We need jobs and investment today, and building our future for tomorrow”.

Arizona could find itself unable to meet current energy needs in addition to the needs of future growth in the state if Arizona does not act quickly. Currently, Arizona relies heavily upon coal burning energy factories on Native American reservations for Arizona’s base load energy needs. Newly proposed EPA regulations, if enacted, could lead to significant cost increases that will more than likely stem output and substantially lessen Arizona’s ability to meet current demands and future growth.

Rep. Tobin and Rep. Nichols seek to coordinate legislation that will develop energy for use and export while working with rural municipalities to help provide funding resources to develop a water grid for augmenting and transporting our water supply and protecting our rivers.

Additionally, by supporting new clean energy parks, Arizona can address multiple issues simultaneously including: job creation, future energy growth and more affordable energy. Such an approach can also include both a rural and urban component dealing with a water transportation grid.

“It’s critical that we support our current infrastructure and support clean energy parks that are environmentally friendly and efficient, Majority Whip Andy Tobin said. “We need both components to meet our current base load needs and also to provide for future growth. Arizona has the potential of becoming an exporter of power to other states. If we do nothing, instead of exporting energy to other states, Arizona will be forced to import energy (along with the associated costs) from neighboring states.”

As one example, the town of Clarkdale currently stands at the end of their planning process for a local clean energy park which includes energy production, water treatment, civic and nature facilities, which will make them self-sufficient and perhaps improve their revenue stream through the exportation of energy.

AHCCCS NOT A Model for The Nation

AZHouseRepublicans@gmail.com — 2009-09-25T09:54:54-07:00

Rep. Matt Heinz recently wrote an op/ed for The Arizona Republic titled, “AHCCCS a model for nation.” Although on many levels AHCCCS is a very well-managed program, without continual cash infusions from the taxpayers, AHCCCS is a model for financial instability and care rationing down the road.

AHCCCS is Arizona’s Medicaid program that provides free healthcare for Arizona’s poor. The state’s program has doubled in size over the past 10 years and just in the past four months, enrollment has increased by another 100,000. AHCCCS is one of Arizona’s largest programs and eats up 16 percent of the state’s entire budget at a cost of $1.5 billion to the General Fund.

The state deficit and the growing need is straining the program to the point where it may be necessary to re-evaluate which medical services may need to be eliminated to control costs. The program may need to cut reimbursement rates to providers even further.

AHCCCS already underpays physicians and hospitals at rates 20 to 30 percent below the actual cost of care, shifting costs onto private insurance. In true trickle down fashion, those costs are passed onto businesses and employees who must pay higher costs to receive the same type of health coverage.

AHCCCS is currently an unsustainable model and from various bills floating around in the U.S. Senate, the program’s costs will likely increase again by $1.2 billion to $5.9 billion depending upon how many people are eligible for the program.

Clearly Arizona’s Medicaid system cannot sustain itself. It is expanding rapidly, and has a detrimental affect on the private sector. Based on these factors it is unclear how AHCCCS can be a national model for the healthcare reform debate.

Some better ideas for healthcare reform may include incentives for wellness and prevention care and perhaps allow individuals to purchase health care plans across state lines, which would drive down costs and provide a wider menu of options.

We Shouldn't Rush To Sell State Land

AZHouseRepublicans@gmail.com — 2009-09-14T09:49:59-07:00

By Representative Lucy Mason (R-Legislative District 1)
I read with interest various news articles advancing the idea that Arizona dispose of its State Trust lands in order to fill the current budget gap. State Trust land is among the most valuable assets Arizona has, and there are a few things to know before we engage in a statewide “fire sale” of it.

Set aside for a moment the issue of whether it would be wise to try to sell any land in this economy, it is important to acknowledge that such a liquidation of Trust land would be legally impossible absent both a voter-approved change in the Arizona Constitution and AN ACT OF CONGRESS! Realistically, this proposal offers NO relief for the current budget crisis.

Arizona’s State Trust lands, which were acquired from the federal government, were placed in a “perpetual trust” so they could be sold when the market demand pushed prices to their peak. The prohibition against wholesaling state land required each parcel to be sold to the “highest and best bidder at a public auction,” was first imposed by Congress in Arizona’s Enabling Act.

Under both federal and state law, Arizona Trust lands must be sold at “true value” based on appraisal in order to make money for Trust beneficiaries. The most significant beneficiaries are the state’s K-12 public schools, who own 87 percent of the Trust lands. Other beneficiaries include the School for the Deaf and Blind, the State Hospital, the Miner’s Hospital, the Pioneer’s Home, and, of course, the three Universities. It would not only be a violation of the Federal Enabling Act, the Arizona Constitution, and Arizona statutes to conduct a proposed fire sale but fool hearty to risk shortchanging these beneficiaries.

Further, it is a well-settled fact that unplanned, unimproved land fetches the lowest price. Almost all of Arizona’s State Trust land falls squarely into that category. However, each year a few thousand acres can be planned, then leased or sold at prices that reflect enhanced values.

A real world example is the Desert Ridge property in Phoenix, north of Highway 101 around Tatum Boulevard. About 30 years ago, it was suggested that, that land be sold for about a thousand dollars an acre. Supporters cited the land’s lack of desirability due to location. It was, after all, pasture land “out in the middle of nowhere.” Meanwhile, the City of Phoenix grew and eventually annexed that land. A freeway was built, utilities arrived, and uses were designated. This proved to be truly lucrative for the beneficiaries. In recent years, some of that land sold for up to $1 million per acre. Nowhere is the axiom, “timing is everything” more true than with the sale of land.

Again, Arizona’s Trust land was intentionally placed into a perpetual Trust. This means that public schools and all the other beneficiaries are entitled to wait until the time is right to sell each parcel. That was what Congress intended, and that is what the framers of Arizona’s Constitution intended. Let’s honor their intent, and not rush to sell out State Trust Land through a hasty lack of vision or panic driven precedence setting policy.

Lucy Mason is the Chair of the House Water and Energy Committee and represents District 1. She can be reached at 602-926-5874 or via email at lmason@azleg.gov.

Rep. Tobin - "Restore Funding to State Parks"

AZHouseRepublicans@gmail.com — 2009-09-14T13:32:20-07:00

By Representative Andy Tobin (R-Legislative District 1)
This past weekend news broke about the state parks’ plan to layoff 30 employees and reduce park hours of operation. Few know about the behind the scenes work being done by Majority Whip Andy Tobin (R-Paulden) to restore funding to the state park system through utilization of the Growing Smarter fund.

“The economic downturn has virtually eliminated growth demands near urban areas,” Tobin explained. “Transferring $20 million from the Conservation Fund in FY10 and 11, while also expanding the lifetime of the fund from 2011 to 2013 ensures Conservation funding will be restored,” he added. “We want to use the money from the fund to ensure the economic contribution of the state parks to Arizona continues.”

According to the Paulden Republican, Rep. Warde Nichols sponsored HB2088 this past Regular Session and had it passed with the required three-fourths vote the measure would have transferred $20 million from the FY09 Conservation Fund to offset land use budget reductions, reversions and suspensions. HB2088 sought to change Proposition 105, the Growing Smarter Act, which provides grants to conserve open spaces in high growth areas.

“I believe this is an excellent use for the Land Conservation Fund since the downturn in the economy has significantly slowed city growth patterns across the state, while the fund has continued to expand by $20 million a year,” Tobin said. “This bill extends the Land Conservation Fund by an additional year and the money we take this year will be restored in 2013.”

Last week Rep. Tobin sent a letter to Arizona mayors, city council members, county supervisors, state department heads, the Governor and stakeholders urging them to contact Legislators who opposed HB2088 last February. The state parks funding restoration issue will be revisited and Rep. Tobin hopes pressure from stakeholders will garner the necessary three-quarter votes to utilize the Growing Smarter funds for state parks.

Arizona State Parks are an extremely valuable attraction for visitors and citizens. Approximately 2.2 million people visit our parks each year and direct spending by those visitors surpasses $160 million each year. Annually, state parks generate $266 million in revenue for Arizona. Rep. Tobin wants to see Prop 105 changed temporarily to allow Growing Smarter dollars to go to state parks this year.

Affordable Coverage W/O More Government

AZHouseRepublicans@gmail.com — 2009-09-21T10:17:25-07:00

By Representative Nancy Barto (R-Legislative District 7)
We all want the same thing – protection from catastrophic illness and the security of affordable health coverage in the future. To their credit, Americans have read the bills working their way through Congress and are objecting to the health care rationing and control over their health care quality and decisions. Can we achieve health care solutions without Obamacare? Absolutely!

The 5 percent of Americans under 65 owning Health Savings Accounts (just since 2003) signals a marked shift toward patients rather than insurance companies directing their health care – and with positive results. Forty-one percent of these were previously uninsured and nearly half have incomes of $50,000 or less. Studies show they are offered more wellness incentives and are more likely to use preventive care. Congress’ plans for insurance standardization and mandates will stop this progress.

Plus, Arizonans will have lower cost insurance options since our reform-minded Legislature changed the law this session. Why should everyone be forced to buy the same “Cadillac” coverage – including such benefits as maternity for adopted children or drug treatment – when one without meets their needs? “Government-approved” mandate-laden insurance, as proposed by Congress and that Massachusetts passed, greatly increases premiums, causes over-utilization of services, under-compliance and fewer choices – especially for the young and healthy who would rather pay penalties than high priced premiums.

Arizona also passed significant medical liability reform this session which will bring doctors to the state and discourage defensive medicine practices to avoid frivolous malpractice lawsuits. Ninety-three percent of U.S. physicians admit to practicing defensive medicine at a cost of $210 billion in 2008 and another $865 billion in indirect costs annually. These are reforms the President and Congress have rejected completely.

Nearly one in five Arizonans lacks health coverage largely due to government’s failure, not market failure, to correct the perverse incentives and over-regulation that drive up costs in both.

Before selling yet another government panacea to the American people – Congress should stop the billions of dollars of waste in the Medicaid and Medicare systems – moving them towards solvency. To increase competition it should enable cross-state purchasing and stop the tax discrimination preventing affordable and portable insurance for individuals.

If, in the end, heavy-handed policies are forced upon the states, Arizona will have Constitutional protection – the Arizona Health Care Freedom Act – as a defense if passed next year at the ballot. At last count 13 other states are taking similar stands against government intrusion into their health care decisions and mandates.

Critics of the vocal opposition to Congress’ plans, such as E.J. Montini (“Uninsured Lost Amid the Shouting”), consistently claim opponents support the status quo and are fine leaving the uninsured problem unresolved. But thorough reporting of the patient-centered reform proposals in Congress – such as individual tax credits – and policies transforming health care in Arizona and other states – like risk pools – would add balance to the discussion.

We are witnessing engaged Americans who stand ready for an honest debate on health care reform. Choosing which direction it takes is not above their pay grade and may even give real hope to those whose only hope, we’re told, lies in more government control and loss of their own.

Nancy Barto is the Chair of the House Health and Human Services Committee and represents District 7. She can be reached at 602-926-5766 or via email at nbarto@azleg.gov

Speaker Adams Forms Official Private School Tuition Tax Credit Review Committee

AZHouseRepublicans@gmail.com — 2009-09-18T08:52:53-07:00

Yesterday Speaker Kirk Adams announced the formation of the Private School Tuition Tax Credit Review Committee, tasked with reviewing and assessing the individual tax credit program for private schools.

“Tuition tax credits are very important to Arizonans, and they merit a formal House committee review process,” Speaker Adams said. “This committee will review the impact of these tax credits and make recommendations for their future use,” he added.

The committee has been formed to ensure the application, administration and approval process for tax credits includes accountability measures for private student tuition organizations.

Speaker Adams assigned Rep. Rick Murphy as the Chair of the Committee. He also appointed Representatives Andy Biggs, Debbie Lesko, Jack Brown and Tom Chabin. The first meeting of the Private School Tuition Tax Credit Review Committee will be announced shortly.

“The tuition tax credit program has provided educational opportunities to many students and options to many parents,” Rep. Rick Murphy (R-Peoria) said. “It is important the process for providing tax credits work the way it was intended.”

The committee will produce a report on the tax credit issue by December 15, 2009, which would include any necessary legislation for the 2010 legislative session.

Legislators To Discuss H1N1 Flu

AZHouseRepublicans@gmail.com — 2009-09-16T09:21:29-07:00

Tomorrow a joint meeting between the House and Senate health committees will hear from state and county officials about the novel H1N1 flu virus, commonly referred to as “swine flu,” and vaccine safety, vaccine supplies and mass vaccination planning.

According to Rep. Nancy Barto, House Health and Humans Services Committee chair, this meeting is timely, important and designed to answer Legislators’ questions about vaccinations.

“Legislators want the opportunity to talk with state and county public officials about the swine flu to address specific questions and concerns they are hearing from their constituents,” Rep. Barto said.

Addressing the joint health meeting will be Interim Director of the Arizona Department of Health Services Will Humble and Dr. Bob England from the Maricopa County Department of Public Health. In addition to discussing vaccine safety, each will also talk about the state and county H1N1 response plans, school readiness and public outreach efforts.

“Arizona needs to be ready to handle this upcoming flu season and this joint meeting will help us see how ready we really are,” Rep. Barto explained. “Federal officials are saying that up to 40 percent of the U.S. population could develop H1N1 symptoms this flu season and thousands could die. Reports are breaking about the fact there is a problem with vaccine production,” she said. “We need to know what this means for the state of Arizona and how we plan to respond.”

This joint meeting will answer that and many other questions about the H1N1 flu season. The meeting is scheduled for Thursday, September 17, 2009 at 2:00 p.m. in Senate Hearing Room 1. All members on both committees are expected to attend.

To review the agenda for the meeting, click here.

Neither Governor Nor Democrats Helping With Arizona's Fiscal Crisis

AZHouseRepublicans@gmail.com — 2009-09-08T20:50:51-07:00

By Rep. Debbie Lesko (R-Legislative District 9)
The Governor’s recent reversal of necessary spending cuts defies logic and I simply don’t understand it. I’ve known Governor Brewer for a long time and I’ve always liked her. That is why it is so difficult for me to understand this recent action that simply makes no economic sense. Meanwhile, Democratic legislators are putting politics over helping the state.

Our state is over $3 billion short and is spending more than it has coming in every single day. Simply put, we are paying for things we can’t afford. So the fiscally responsible Republican legislators made the difficult, but necessary, decision to make modest spending cuts and passed a balanced budget, without a tax increase, three times. Unfortunately, the Governor has vetoed it or threatened to veto it all three times. If she didn’t, the budget could have been balanced on June 4th.

The Governor’s most recent vetoes have increased spending by $714 million and increased property taxes by $250 million a year. Unless changed, a vast majority of this $714 million increase in spending and the entire $250 million increase in property taxes will continue into future years. This action adds to the already huge gap between spending and revenues instead of decreasing it, meanwhile increasing the tax burden on the public at a time when individuals and businesses are struggling to stay afloat. This is obviously the wrong direction we should be moving in.

What’s next? I don’t know. The Democratic legislators don’t want to help. They would rather see the Republicans crash and burn instead of helping the state balance its budget.

Why would they take on the responsibility of having to make cuts when they can just let the Republicans take all the blame? Not one of them voted for the three balanced budget packages. The Republicans can try once again to re-negotiate with the Governor, but she has the final and ultimate vote.

Rep. Debbie Lesko represents Legislative District 9, which includes Sun City, Youngtown, and parts of Glendale and Peoria. For more information, visit: www.DebbieLesko.org. Debbie can be reached at 602-926-5413 or DLesko@azleg.gov.

AZ Needs Comprehensive Budget Strategy

AZHouseRepublicans@gmail.com — 2009-09-01T09:41:51-07:00

By Rep. Steve Montenegro (R-Legislative District 12)
Arizona’s unemployment rate is the highest it has been since 1983, with the private sector sustaining the second-highest job loss in the nation, second to only Michigan. Arizona families and businesses continue to struggle to make ends meet, while government leaders toil to find a solution to get the state moving in the right direction again.

Arizona Republican lawmakers understand we cannot cut the state budget or raise taxes enough to revive the economy. The only solution is to develop a pro-business, job creating, economic growth package that allows the state to emerge successfully from this economic downturn.

Legislators from both sides of the aisle agree on one thing: Arizona’s economy needs to turn around and start working for the citizens in this state once again. However, we are somewhat less agreeable on how to deliver that recovery.

The state’s Democrats want to expand the tax base, increase government spending and consistently vote against a responsible balanced budget package. Whereas, Republican lawmakers think the answer to fixing our economy is found in a comprehensive tax reform plan designed to stimulate job creation and attract businesses to the state.

Our plan begins with the passage of a responsible, balanced budget that works to bring government state spending in-line with actual revenues. Arizona’s spending exponentially expanded during the Napolitano years and is now unsustainable.

The budget plan sent to the Governor has been criticized for inclusion of a tax reduction package even though it benefits individuals and businesses. Opponents of our tax plan would like voters to believe it’s a $650 million give-away in tax cuts to corporations and special interests. Not true.

In order to have a robust economy, solid pro-growth policies must be implemented. No other state in the nation is focused on growing out of the recession. Taking more from taxpayers in a recession is a recipe for disaster and does not create an environment for recovery or job growth.
If passed, Arizona’s tax package would be a major pro-growth package to support Arizona jobs, businesses, and economic activity. Specifically, our plan will:

Repeal the State Equalization Property Tax providing $250M in property tax relief to residential and business property taxpayers in FY10 and beyond;

Reduce the assessment ratio for secondary property tax on commercial property from 20% to 16% beginning Tax Year 2012;

Permanently reduce the Corporate rate from 6.968% to 4.86% ($200 million total), moving Arizona from the 23rd most competitive state to 7th best in the nation, bypassing states such as Utah, Florida, and Virginia, starting Tax Year 2011; and

Permanently cut Arizona’s Individual Income Tax rates across the board by 7% ($200 million total); every taxpayer will receive a 7% income tax reduction starting Tax Year 2011.

Our tax package incorporates pro-job tax reductions designed to encourage Arizona businesses to expand operations, create jobs and restart economic growth; as well as, create a pro-business environment to entice people and businesses from neighboring states and across the nation to come to Arizona to set up businesses.

Rep. Steve Montenegro from District 12 represents the cities of Litchfield Park, Goodyear, Surprise, Glendale, Buckeye, El Mirage, Avondale, West Phoenix and Waddel. Contact Rep. Montenegro at 602-926-5955 or via email at smontenegro@azleg.gov.

Rep. Montenegro on Horizonte

AZHouseRepublicans@gmail.com — 2009-07-23T10:57:02-07:00

Representative Steve Montenegro (District 12) talks about his first year in the Legislature, why he ran for office, the issues that are important to him and his family on Channel 8’s Horizonte.

Please click on this link or click on the picture below to go to the Horizon website to view the video in it’s entirety.

Robb: "Dems Should Come Clean On Health Care"

AZHouseRepublicans@gmail.com — 2009-07-22T10:59:44-07:00

Arizona Republic columnist Bob Robb says Democrats need to be honest when it comes to the actual health care proposals that are being considered. He says:

“On health care, Democrats would do the country a big favor if they could muster the courage of their convictions.

Everyone knows that, in their heart of hearts, Democrats believe that health care should be a public good for which government is responsible.

And everyone knows that, in their heart of hearts, Democrats believe that the best and most effective and efficient way for government to discharge this responsibility is through a government health service such as exists in Western Europe and
Canada.

Politically, however, Democrats fear that is a step too far for the American people. Most people feel that health care can be improved but are generally satisfied with the employer-based coverage they currently have. The Clinton administration's health care reforms are widely believed to have failed because they put the health care coverage people already had at risk...”

To read the rest of the article, click on this link.

House Majority Plan Succeeds

AZHouseRepublicans@gmail.com — 2009-07-16T10:22:59-07:00

Last February, House Leadership put forward the House Majority Plan. All points of the plan passed successfully.

Each bill has a link with more information on the legislation and includes:

- Redefinition of partial birth abortion and increased the penalty from a class 6 to a class 5 felony
- Repeal of the sunset of the corporate income tax credit to student tuition organizations
- Enactment of a policy for public/private partnerships to build transportation infrastructure
- Expansion of the individual income tax credit for contributions to qualifying charitable organizations to include nonprofit organizations that provide services to chronically ill or physically disabled children, which was fixed in Special Session
- Suspension of any rule making that would impose increased monetary or regulatory costs for one year (vetoed by Governor)
- Re-establishment of the Administrative Rules Oversight Committee
- Permanent repeal of the state property tax, which would have prevented the largest property tax in Arizona’s history (vetoed by Governor)
- Establishment of a study committee on Arizona’s position and participation in the Western Climate Initiative

All legislation that was not vetoed goes into effect on September 30 unless otherwise noted.

Summary Of Signed Bills By Gov. Brewer

AZHouseRepublicans@gmail.com — 2009-07-14T15:57:11-07:00

The following is a brief summary of the more notable legislation Governor Brewer has recently signed:

Senate Bill 1003 – specifies that someone who drives while using a prescribed drug is not guilty of driving under the influence (DUI) as long as they are not otherwise impaired.

Senate Bill 1088 – expands the definition of domestic violence to include relationships that are currently or were previously, a romantic or sexual relationship.

Senate Bill 1175 - prohibit persons who are not physicians from performing surgical abortions.

Senate Bill 1449 – shifts the burden of proof from the defendant to the prosecution to all cases in which the defendant did not plead guilty or no contest that were submitted to the fact finder as of April 24, 2006. This bill directly impacts Harold Fish who was convicted of second-degree murder although he claimed self-defense.

House Bill 2287 - allows employers to reduce withholding tax amounts for employees who plan to make contributions to public schools, school tuition organization, or charitable organizations.

House Bill 2288 - allows the corporate scholarship tax credit program that provides scholarships for children to attend private schools to continue beyond 2011.

House Bill 2396 – modifies the requirements of and outlines provisions for the Arizona Department of Transportation to enter into a "public-private partnerships" for developing the state’s transportation infrastructure including construction, financing, operation and maintenance of transportation projects.

House Bill 2400 - makes several clarifying and substantive changes to the partial-birth abortion section of statute.

House Bill 2564 - updates and clarifies Arizona's abortion statutes regarding informed consent, women, parental notification, and the rights of healthcare workers.

House Bill 2572 – allows the Pima County Board of Supervisors to form a Sports Authority District and ask voters to approve taxing and bonding authority for the purposes of building and financing Cactus League and youth sports facilities.

Senator Kyl's Opening Remarks At The Sotamayor Confirmation Hearing

AZHouseRepublicans@gmail.com — 2009-07-13T15:31:53-07:00

U.S. Senator Jon Kyl gives his opening statement at the confirmation hearings for Judge Sonia Sotamayor. Senator Kyl discusses the appropriate role of the judge and if Judge Sotamayor is able to fulfil her obligations should she be confirmed as our next U.S. Supreme Court justice.

Legislature Asks AZ Supreme Court For Reconsideration Of Brewer v. Burns

AZHouseRepublicans@gmail.com — 2009-07-08T15:35:16-07:00

Today, attorneys for Senate President Bob Burns and Speaker of the House Kirk Adams filed a motion for reconsideration with the Arizona Supreme Court in the case of Brewer v. Burns, et al. In the motion, the President and Speaker request the court to reconsider its order of June 23, 2009.

President Burns and Speaker Adams issued the following joint statement about the motion:

“We are pleased that the Court did not take the unprecedented action of ordering the Legislature to present bills to the Governor, but remain concerned about the impact the Court’s order will have on future legislatures.

The Arizona Constitution does not provide a specific time requirement for presentment of bills to the governor. No American court, in the absence of a specific time requirement, has ever required presentment of bills while the Legislature is still in session. We hope the justices will reconsider taking this extraordinary and unjustified step.”

Kindly see the brief at this link - Brewer v. Burns Motion for Reconsideration 7_8_9 (PDF - 6MB)

Joint Statement on Special Session

AZHouseRepublicans@gmail.com — 2009-07-06T18:43:55-07:00

House and Senate leadership on both sides of the aisle have agreed to immediately address the Governor’s veto of more than $3.2 billion in education funding and violation of federal stimulus funding requirements.

With bipartisan support, we introduced and passed legislation today to ensure school districts and charter schools can proceed with adopting their budgets and put the state back in compliance with requirements to receive federal stimulus funds. The bills passed unanimously out of both chambers and are on their way to the Governor.

The four bills to address the issues above are described below:

Appropriates basic state aid to school districts and charter schools at the FY09 level of funding following the spending adjustments passed during first special session in January 2009, plus the full 2 percent inflator.

Allows school districts to budget for career ladders and desegregation at fiscal year 2009 levels until October 1, 2009, prohibits excess utilities budgeting, and reduces spending for soft capital by $175 million. Additionally, funding is eliminated for a second year of kindergarten for children with birthdates after September 1, 2009, grandfathering current kindergarten pupils.

Ensures county contributions to AHCCCS and distributions of Medicaid stimulus monies are consistent with the requirements of the federal stimulus legislation. This language, which was part of one of the BRBs vetoed by the executive, ensures that Arizona receives more than $1.7 billion in federal stimulus monies for Medicaid.

Limits legislator pay during the special session to those days when the legislature convenes and attendance is recorded.

Special Session Summary Of Gov's Vetoes

AZHouseRepublicans@gmail.com — 2009-07-06T13:37:38-07:00

The Executive’s line item veto of the Executive/Legislative agreed upon majority budget and wholesale veto of the attendant budget reconciliation bills (BRBs) decimated a meticulously negotiated budget and created severe problems for the state.

Appalled by the recklessness of the Executive, a bipartisan legislative effort has developed to immediately address two of the most egregious aspects of the Executive’s vetoes.

First, the Executive zeroed out formula funding (more than $3.2 billion) for the state’s K-12 System, denying any funding to Arizona’s school districts and charter schools for FY 2010, which began July 1, 2009.

The ostensible purpose is to compel the Legislature to give the Executive her 18 percent sales tax increase referral to the ballot, which failed to garner sufficient Republican or Democratic votes during the regular legislative session.

By casting enormous uncertainty over the level of funding to the K-12 system, the Governor has effectively orchestrated a shutdown of Arizona’s schools and compromised the state’s Constitutional mandate to maintain public schools.

Second, the Executive jeopardized more than $2.7 billion in stimulus funds coming to Arizona, including over $1 billion in Fiscal Stabilization Fund monies for K-12 and Higher Education and $1.7 billion in Medicaid monies.

The Governor’s decision to zero-out formula funding to the K-12 public schools violates the Maintenance of Effort (MOE) requirements under the federal stimulus package, which requires the Legislature at least maintain a fiscal year 2006 level of funding.

More than $1.7 billion in Medicaid assistance is at risk as the Governor’s veto eliminated a technical BRB provision regarding county cost share and distribution of stimulus monies without which the Medicaid MOE is also violated.

Rep. Barto Corrects Misinformation On Healthcare Referral

AZHouseRepublicans@gmail.com — 2009-07-02T13:31:47-07:00

There is much confusion about Arizona’s “Freedom of Choice in Healthcare Act” in both process and substance.

It’s not a bill in the normal sense, but a referral that will go to the voters to decide in the next General election, which will take place in November 2010.

Regarding the substance of the referral, some people were misled by an interview on MSNBC with Ed Schultz in which he made several quips that said the bill will limit their options for healthcare.

It actually does the opposite.

Instead of being forced to pay for a one size fits all government plan that will limit the quality and care of coverage, this plan does two things:

- Ensures government cannot restrict an individual’s choice of health care
- Ensures government cannot force businesses or individuals to purchase a particular plan

Proponents of the Obama healthcare plan say nationalized healthcare is merely another option people will have and that private insurers shouldn’t be scared of competition.

As Rep. Barto has rightly said “government cannot be the regulator and the competitor at the same time.”

Please see the FOX interview for more information.

Why Arizona Needs A Flat Tax: UPDATED

AZHouseRepublicans@gmail.com — 2009-06-29T20:35:39-07:00

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.

Appropriations Hearing Scheduled for 11am

AZHouseRepublicans@gmail.com — 2009-06-29T10:18:17-07:00

The House is scheduled to have an Appropriations hearing at 11 a.m.

Please click on this link for the agenda.

Robb: "Arizona Supreme Court Erred in Brewer v. Burns

AZHouseRepublicans@gmail.com — 2009-06-26T10:24:16-07:00

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.

When Words Lose Their Meaning...

AZHouseRepublicans@gmail.com — 2009-06-25T13:56:33-07:00

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.”

House Statement - "U.S. Supreme Court Renders Decision in Flores Today"

AZHouseRepublicans@gmail.com — 2009-06-25T10:35:49-07:00

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.

Legislature Prevails in U.S. Supreme Court ELL Case

AZHouseRepublicans@gmail.com — 2009-06-25T08:24:15-07:00

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)

AZ Supreme Court Denies Relief To Governor

AZHouseRepublicans@gmail.com — 2009-06-23T17:05:32-07:00

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)

Speaker Adams Discusses Budget In Six, Two-Minute Videos

AZHouseRepublicans@gmail.com — 2009-06-22T13:42:34-07:00

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.

Difficult Budget Decisions

AZHouseRepublicans@gmail.com — 2009-06-22T13:42:34-07:00

Funding Education

AZHouseRepublicans@gmail.com — 2009-06-22T13:42:33-07:00

Budget Proposals

AZHouseRepublicans@gmail.com — 2009-06-22T13:42:33-07:00

Economic Recovery

AZHouseRepublicans@gmail.com — 2009-06-22T13:42:32-07:00

Arizona's Future

AZHouseRepublicans@gmail.com — 2009-06-22T13:42:31-07:00

Speaker & President File Brief

AZHouseRepublicans@gmail.com — 2009-06-19T17:25:19-07:00

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.

New Media Resources for Real Time Info

AZHouseRepublicans@gmail.com — 2009-06-19T16:43:17-07:00

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.

Taxpayers Urge Legislature To Prevent Tax Increase

AZHouseRepublicans@gmail.com — 2009-06-17T10:24:23-07:00

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

AZHouseRepublicans@gmail.com — 2009-06-17T10:00:19-07:00

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

Pro-Growth Advocacy Group Supports AZ Legislature In Holding Budget Bills

AZHouseRepublicans@gmail.com — 2009-06-16T13:15:02-07:00

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.”

Majority Leadership Responds to Gov. Brewer

AZHouseRepublicans@gmail.com — 2009-06-15T16:43:20-07:00

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)

Speaker & President Issue Joint Response To Governor’s Press Conference

AZHouseRepublicans@gmail.com — 2009-06-15T13:47:53-07:00

“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

AZHouseRepublicans@gmail.com — 2009-06-12T08:39:19-07:00

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.

Pink Slipped Teachers Re-hired

AZHouseRepublicans@gmail.com — 2009-06-11T11:38:46-07:00

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:

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.

Last March 18th, while moving HB2630, Republican lawmakers assured the teacher’s union, school districts and school administrators that much of the education funding would be backfilled by federal dollars (which has happened) and that giving teachers reduction-in-force notices in April was extremely premature.

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

AZHouseRepublicans@gmail.com — 2009-06-10T14:26:26-07:00

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.

Hidden Tax In Legislative Budget Untrue

AZHouseRepublicans@gmail.com — 2009-06-10T14:10:12-07:00

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.

Legislative Budget Complies With Stimulus Funding Requirements

AZHouseRepublicans@gmail.com — 2009-06-08T16:45:01-07:00

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)

Schedule For The Week 6/8/9 - 6/12/9

AZHouseRepublicans@gmail.com — 2009-06-08T13:13:10-07:00

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.

Saving The State's Budget: The Republican's Plan

AZHouseRepublicans@gmail.com — 2009-06-08T12:46:54-07:00

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.

Your Thoughts on Arizona Budget

AZHouseRepublicans@gmail.com — 2009-06-04T15:52:28-07:00

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...”

One Cent Tax Makes AZ 7th Highest In Nation

AZHouseRepublicans@gmail.com — 2009-06-03T13:33:14-07:00

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)

Legislative Budget Action Today & Tomorrow

AZHouseRepublicans@gmail.com — 2009-06-03T11:03:18-07:00

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)

Governor Brewer's Political Advisor Pushes Tax Increase

AZHouseRepublicans@gmail.com — 2009-05-29T17:32:03-07:00

According to recent news stories, Governor Brewer’s political advisor, Chuck Coughlin, seeks to pressure Arizona legislators into accepting a state sales tax increase that would put Arizona in the same tax bracket as California and New York.

The plan would cost at least $225,000 to pressure legislators to support the Governor’s proposal through letters to the editor, telephone calls, interviews, mass emails, talk radio and contacting their local legislators.

If Arizona were to go to a 6.6 percent state sales tax, this would give us the seventh highest rate in the nation. And it would result in the combined state and local tax rates in 30 Arizona cities surpassing 10 percent, putting us at the same infamous rank with California and New York.

Yet an even higher tax would deter people from making major purchases - the kind of purchases on which Arizona’s economy depends to help pay for necessary programs and services.

With the second highest budget deficit in the country, now is not the time to put out the “Not Welcome For Business” signs in Arizona by raising taxes even further.

Do we really want to make it any worse?

Republicans Reject Democrats' Non-Solution to Arizona's Growing Budget Crisis

AZHouseRepublicans@gmail.com — 2009-05-28T16:47:08-07:00

Republicans reject Democrats’ non-solution to Arizona’s growing budget crisis. Their proposal consists of property tax increases, a massive expansion of items and services subject to sales taxation, and a proposed increase in local sales tax collections.

Democrats claim their new budget proposal avoids “high tax increases,” but in fact, they increase the qualifying tax rate to the maximum allowable by law and add a new tax on services. All of this, at a time when any tax increase will further damage Arizona’s economy and make life harder for already struggling families.

Increasing business property taxes is by far the biggest obstacle to attracting and retaining employers in the state. Rather than redressing and learning from past errors by not taking steps to reduce unsustainable government spending, Democrats are asking Arizonans to pay for their fiscal mismanagement.

Instead of proposing reasonable cuts and addressing how spending got over $3 billion dollars out of alignment, Democrats propose to take billions more from Arizonans.

Republicans continue to work on a solution to our fiscal deficit which addresses our structural deficit without raising taxes and further damaging Arizona’s already struggling economy.

Republicans Protect Students, Provide Choice

AZHouseRepublicans@gmail.com — 2009-05-27T17:02:15-07:00

The Arizona House and Senate Republicans voted today to send HB2001 up to Governor Brewer, which will allow disabled and foster children to continue attending the private school of their parent’s choice.

Democrats however, voted “no”.

HB2001 saves the state money, allows parents to choose which school best serves the needs of their students, and allows the state to redirect more money for public education.

How could anyone who says they support education vote against such a good piece of legislation?

“I proudly vote ‘no’,” Rep. Sinema said.

“I’m a proud ‘no’ on this bill,” Rep. Ableser said.

“We support the million plus students who are in public education. And so I am proud to vote ‘no’ on this bill…,” Rep. Lujan said.

Yet even if Democratic amendments would have passed (and there were many), Democrats are on record saying they still wouldn’t have supported the bill.

Since legislation goes into affect 90 days after session, Republicans worked with Governor Brewer, bringing this bill to Special Session when it did to allow students to continue going to the school of their choice and not disrupt their upcoming school year.

“By delaying the bill you compromise the ability of those students to continue at those schools who are serving them well and condemn them to the schools who are not serving them well,” Rep. Murphy said.

School Choice Saves AZ Money

AZHouseRepublicans@gmail.com — 2009-05-26T17:40:01-07:00

Democrats act as if there’s no $3.3 billion dollar budget deficit, as if they have no responsibility for the current fiscal crisis the state faces, nor that the current bill they criticize (HB 2001) actually saves the state money.

The most recent Democratic press release criticizes Republicans for budget cuts in the FY09 budget fix, yet without these cuts, Arizona would face an even higher deficit than the current one.

Democrats act irresponsibly in their pseudo budget proposal and their criticism of Republican proposals, yet like the Obama budget plan, would only indebt current and future Arizonans to more permanent spending and debt.

Democratic leadership has given us growth in state government at an unprecedented level. We’ve seen an increase in spending of $3.7 billion dollars in the last five years alone!

In another act of irresponsibility, Democrats attack contributions to School Tuition Organizations saying it costs the state more money when in reality it actually saves the state money. Arizona could definitely use any savings wherever we can find it in the midst of a historic budget deficit.

The Institute for Justice reports the corporate tax credit scholarships will save the State of Arizona an estimated $57.2 million over the life of the program, or an average of $11.4 million annually. This means the state could educate many more students at a private school than what the state would have spent had they remained in the public school system.

Additionally, the bill gives current students the ability to stay in the schools they currently attend, and parents with limited options will now have enhanced options in sending their child to a school that best fits their child’s educational needs.

Democrats have instead decided to take a vulnerable population and use them as political pawns to attack Republicans for a budget crisis due largely to the last several Democratic budgets that obligated the state to permanent spending the state could never afford.

Not only should we be finding ways to save the state money as in the case of HB 2001, but we should also look to find ways to enact good policy, another benefit of HB 2001.

Unfortunately this program is capped at $5 million when there are approximately 120,000 students who could potentially qualify for and benefit from this program.

Statement From The State Treasurer's Office

AZHouseRepublicans@gmail.com — 2009-05-26T14:06:57-07:00

Due to complications from childbirth, Kerry Martin, 34, wife of State Treasurer Dean Martin, passed away late Monday night on May 25, 2009. Kerry and Dean’s son, Austin Michael Martin, was born on Monday at 7:31 p.m. weighing eight pounds and measuring 21.5 inches in length. Austin remains in grave condition.

Dean is standing vigil at his son’s bedside with family. Dean and his family ask that you join him in prayer for his son’s health.

Kerry was a loving wife of 13 years, as well as a mother, sister, aunt, and daughter. Prayers for the family are also appreciated.

Kerry is survived by her father Edward Mabey, her aunt Phyllis Pulice, her sister Tracy Smitherman, her brother John Mabey, and a niece and two nephews. Funeral arrangements for Kerry are pending.

The family kindly requests no cards or flowers be sent at this time. Notes of encouragement can be sent to Treasurer Martin at dean@americanvisuals.com.

House To Hear Health Care Freedom Act

AZHouseRepublicans@gmail.com — 2009-05-22T16:51:35-07:00

Health and Human Services Committee Chairwoman Nancy Barto is holding a hearing on Tuesday, May 26th on HCR2014, “The Arizona Health Care Freedom Act,” which is designed to secure the rights of Arizonans by allowing them to spend their money on the health care of their choice.

The resolution, if passed by the Legislature, will go to the ballot in 2010. While a similar measure, Prop. 101, was narrowly defeated in 2008, HCR2014 has been specifically re-worked to address concerns the Arizona Health Care Freedom Act (AHCFA) might interfere with government programs for low-income residents.

“It is not the intent of the legislation to risk publicly-funded programs but to prevent the state from forcing residents to be subject to the practice of medicine by government,” Rep. Barto says.

According to John Graham of the Pacific Research Institute, “the plain language of the AHCFA makes clear the state cannot forbid any Arizonan from buying private health insurance, but neither can it compel him to do so. It protects Arizonans from either a government-monopoly system (like Canada’s), or mandatory private health insurance (imposed in Massachusetts in 2006).”

Citing examples from the British government imposed National Health Service (NHS) and Canada’s taxpayer-funded “universal” healthcare, Mr. Graham describes how other single-payer health care systems have prevented citizens from ‘topping up’ government-rationed health care with their own funds.

“A recent NHS scandal involves breast-cancer patients taking the new drug, Avastin, for which the NHS would not pay. The NHS told some patients that the bureaucracy would give them no breast-cancer care at all if they paid for Avastin with their own money, although their doctors had prescribed it. Supporters of government monopoly argued that it was unfair that some citizens were able to pay for Avastin and others not - even though the state would not provide it at all.”

HCR2014 supporters are concerned that new federal legislation will mandate similar laws and regulations in the U.S., making it illegal for medical providers to deliver certain kinds of health care at a price that both the patient and provider agree upon. And an Arizona constitutional provision protecting patients’ rights will provide stronger protection against such mandates, if enacted, than a regular statute.

McComish, Pollack and Bidwill Discuss Changing Tax Policy, Budget

AZHouseRepublicans@gmail.com — 2009-05-22T16:51:34-07:00

House Majority Leader John McComish, economist Elliott Pollack, and Arizona Cardinals President Michael Bidwill discuss the need to cut corporate taxes and the state’s budget.

Click on this link or click on the picture below to go to the Horizon website to view the video in it’s entirety.

Legislature Aids Disabled & Foster Kids

AZHouseRepublicans@gmail.com — 2009-05-21T13:29:05-07:00

Governor Brewer has convened a Special Session of the Legislature today to enact new state income tax credits for disabled and foster students since the Arizona Supreme Court ruled vouchers unconstitutional.

Without the state’s voucher program, 473 disabled and foster children will be pulled from the private schools they currently attend and be placed in public schools. This Special Session is designed to correct that.

Critics of the Special Session have said the Legislature needs to focus on overall funding for education and not concern itself with this specific population.

The Legislature is able to multitask and can do both budget and policy issues simultaneously.

Critics of the Special Session also say tax credit programs take away money from the public schools. What they fail to mention is the state will pay LESS since the tax credit they give to the parent or foster parent is less than what the state would have to spend in per pupil spending.

Meanwhile the Democratic budget proposal is not only $1 billion short of a balanced budget, but it would also increase taxes by almost $1 billion and ultimately hurt those same disabled and foster children they claim to support.

Critics’ view of a “humane and forward-looking budget” includes increasing permanent spending and harming every single Arizonan by obligating us to debt we cannot afford now or in the future.

State Superintendent of Public Instruction Tom Horne is quoted as saying “nobody knows better than parents what’s best for their children, and that’s especially true for a child’s educational needs.”

He’s talking about school choice and he’s right. This is why the Legislature seeks to allow these parents to continue sending their children to the schools that best meet the child’s needs.

As reported by the Arizona Republic, Andrea Weck is the mother of a 6-year-old daughter with autism and used one of Arizona's voucher programs to send her child to a small, private Tempe academy. Weck said her daughter wasn't thriving in a public school setting.

"The opportunity created by the scholarship program changed Lexie from the inside out," Weck said

CA Voters Reject Excessive Spending

AZHouseRepublicans@gmail.com — 2009-05-20T16:29:04-07:00

Due to overspending and a structural deficit that obligates California to spend much more than it can afford, Governor Schwarzenegger and many unions pushed for a list of ballot proposals that would help narrow California’s projected $21 billion budget deficit.

California voters rejected five out of six of these budget proposals yesterday by an overwhelming margin in spite of substantial union support and supporters outspending the ballot opposition ten to one.

The powerful California Teachers Association and the National Education Association collectively spent $12.2 million in support of the propositions alone, not to mention the other 146 unions who supported the propositions.

The ballot propositions would have increased taxes $15 billion dollars, borrowed and diverted voter protected funds into the General Fund.

Californians voted no as the propositions merely maintained the status quo in terms of spending yet did nothing to decrease the size of state government.

"No more budget gimmicks, no more legislative shenanigans. Balance this budget by making the type of structural cuts you need to make," the Santa Barbara County Taxpayers' Association said.

California voters were unimpressed with an expensive marketing campaign that did nothing to address the state’s structural deficit but instead insulates the public sector from the same strains and stresses felt by families and businesses.

They realized for every threatened teacher or state employee that would be laid off there are businesses that will close and employees that will lose their jobs to pay for unsustainable levels of state spending.

Meanwhile, 75 percent of voters disapprove of the job performance of the California State Legislature.

Here’s a list of the propositions and how they fared:

Proposition 1A would have extended tax increases on income, sales, vehicles, and gasoline to as much as 5 years. Outcome - Failed by 2:1 margin

Proposition 1B would have agreed to pay back schools for any cuts that were made to education; a measure added to appease the California Teachers’ Union and get their support for the fixes. Outcome - Failed by 2:1 margin

Proposition 1C would have allowed the state to bond for more than $5 billion through an enhanced Lottery. Outcome - Failed 2:1 margin

Propositions 1D & E would have diverted dedicated money from certain state programs to pay for general government operations. Outcome – Failed 2:1 margin

Dems Broadcast False Narrative

AZHouseRepublicans@gmail.com — 2009-05-20T08:44:40-07:00

Democratic Leadership and their surrogates are pushing a false narrative – they continue to repeat the mantra of “there’s a ‘better’ way to balance the budget and fix the $3.3 billion dollar budget deficit.”

The problem - it’s simply untrue.

Arizona faces an enormous budget deficit. Even if the Democratic budget proposal were passed and signed into law, it’d be at least $1,000,000,000 short of being balanced.

Their proposal of a ‘better’ way includes raising taxes in “fair and practical ways” that is somehow supposed to keep us competitive with other states.

Their tax increases include:

$360 million in property taxes on homeowners and businesses
$80 million in additional income taxes
$100 million from the elimination of tax credits for contributions to public and private schools
$233 million in utilities taxes
$45 million on consumer and business warranty and service contracts

The biggest problem with the Democrats’ proposal is Arizona’s already uncompetitive.

Since Arizona sits geographically in a seven-state region, we must compete with surrounding states for business.

Arizona is higher in corporate income taxes than the region with the exception of California and New Mexico.

Arizona business property taxes are not only the highest in the region, but the fifth highest in the nation!

Sales tax collections in Arizona are already the fourth highest per $1,000 of income in the nation!

So while we’re competing with these six other states for retaining and inviting businesses into our state, there are those who would seek to make our uncompetitive playing field even less uncompetitive – something bad for all of Arizona.

A sales tax as one example would deter people from making major purchases - the kind of purchases on which Arizona’s economy depends to help pay for necessary programs and services.

The ‘better’ budget solution is certainly not the Democratic proposal, nor their surrogates.

Critics Refuse To Help Disabled/Foster Kids

AZHouseRepublicans@gmail.com — 2009-05-19T17:16:15-07:00

The Arizona Supreme Court recently ruled that school vouchers are unconstitutional for appropriating public money for private or religious schools.

Without the state’s voucher program, 473 disabled and foster children will be pulled from the private schools they currently attend and be placed in public schools. It’s never a good idea to rip a student out of a school they’re already attending.

This is why the Legislature and the Governor are working together to develop a solution in a possible Special Session.

The voucher program saves the state money since the tax credit covers up to 90 percent of the tuition, while the parent covers the difference in cost. Without this tax credit, the state would have to pay 100 percent of the per pupil spending at a public school.

The savings from the voucher program can go to help offset other education spending. Critics of school vouchers have said the Legislature is kowtowing to “corporate interests.”

Those critics need to explain how allowing disabled and foster children to go to the school of their choice is a bad thing. They also need to explain how lowering state expenditures in this historic deficit is a bad thing too.

The voucher discussion is about kids, parents and educational choices. Critics will find something to condemn with the voucher program for the sake of political mileage. This time the causalities are disabled and foster kids.

CA Voters Decide ANOTHER Tax Increase

AZHouseRepublicans@gmail.com — 2009-05-19T08:30:54-07:00

California voters will decide today if they want to help solve their state’s gaping budget deficit through a series of ballot propositions including: tax increases, securitizing the lottery and ballot reform.

Tax increases – taxes would increase by $15 billion including sales, income, vehicles and gasoline taxes.
Securitizing the lottery – this would authorize California officials to borrow $5 billion that would be repaid by profits from the California state lottery.
Ballot reform – Similar to Arizona’s First Things First Initiative, this would allow the state to divert a portion of voter protected funds for childhood development and mental health into the General Fund to help fund other basic programs and operations.

Most polling shows California voters are averse to another tax. The Public Policy Institute of California shows the key propositions are trailing by an average of nearly 12 points.

California already passed a nearly $15 billion annual tax last February. If passed, today’s ballot proposals would allow these taxes to last as long as five years.

Arizona voters should pay particularly close attention to how one of the most (arguably) liberal states in the country and the world’s ninth largest economy votes on these propositions. Would they like to see the tax and spending continue to increase permanent spending?

Legislators have offered one-time sales of state assets including the L.A. Coliseum and San Quentin as potential solutions for California’s cash deficit, but, like Arizona, this would do nothing to fix the state’s overall permanent obligations in spending.

House Awaits Action On Student Religious Liberties Bill

AZHouseRepublicans@gmail.com — 2009-05-18T08:36:35-07:00

The Student Religious Liberties Act (HB2357) prohibits a public educational institution from discriminating against students or parents on the basis of their religious viewpoint or expression.

Rep. Rich Crandall sponsored the bill due to Deborah Chambers, a seventh grade charter school student who had a picture of Jesus dying on the cross. A fellow student complained and the principal told her she couldn’t bring the folder to school any more.

The bill passed the House 37 to 23 on May 6 and is awaiting action at the Senate. Since the Senate is only hearing budget related bills, it’s unknown when this legislation will get a hearing.

If HB2357 passes, students will be able to pray or participate in religious activities in public schools in the same manner students can engage in non-religious activities.

Students will also be allowed to wear clothing, jewelry or other apparel displaying religious messages to the same extent students can display non-religious apparel.

If this bill passes out of the Senate and is signed into law by the Governor, it will be known as, “The Students’ Religious Liberties Act.”

photo by Cronkite News Service

Speaker & President Discuss Excess Cash Balances/Budget On Horizon

AZHouseRepublicans@gmail.com — 2009-05-14T14:06:40-07:00

As reported yesterday, Democrats have voted once again to harm education by voting “no” on two bills that will allow school districts to utilize excess school cash balances.

House Speaker Kirk Adams and Senate President Bob Burns explain this issue with Horizon Host Ted Simons. They also discuss the overall state budget.

Click on this link or click on the picture below to go to the Horizon website to view the video in it’s entirety.

State Reps. Discuss Budget On Horizon

AZHouseRepublicans@gmail.com — 2009-05-14T10:58:40-07:00

House Appropriations Chairman John Kavanagh and Assistant Minority Leader Kyrsten Sinema debate the state budget including the deficit and potential fixes.

Click on this link or click on the picture below to go to the Horizon website to view the video in it’s entirety.

Democrats Harm Education Once Again

AZHouseRepublicans@gmail.com — 2009-05-13T16:33:46-07:00

Democrats have voted once again to harm education by voting “no” on two bills that will allow school districts to utilize excess school cash balances.

With this legislation, school districts will be allowed to spend dollars they are otherwise not legally allowed to spend on school operations during one of the most severe deficits in the state’s history.

HB2028 and HB2029 avoid sweeping these excess cash balances into the General Fund to be used for state general operating purposes.

These bills also avoid additional cuts to K-12 spending in FY09.

So instead of harming education, it helps education by allowing districts to use their funds the districts currently have no legal authority to utilize.

Not only does it protect school funding but it also helps the State solve our deficit in 2010 so budget cuts will not have to be any deeper towards Education.

In an effort to score political points, Democrats have chosen to continue their false narrative of Republicans balancing the state budget on the backs of children and teachers.

This is simply untrue.

These bills attempt to address the larger than anticipated FY09 deficit that has grown to $650M since February 2009.

“Every month, revenues decline further. It’s just in the last few days we’ve discovered a decline in revenue from April of $200 million dollars. It is irresponsible if we do not act quickly and decisively to fix this problem. There has been much talk about the budget process. I’ve received bills from the minority leadership that still does not solve the $650 million dollar deficit problem,” Speaker Kirk Adams said.

AZ Spends More Than It Brings In

AZHouseRepublicans@gmail.com — 2009-05-13T14:04:42-07:00

The Legislature and Governor may utilize unexpended taxpayer monies the schools have to close the state’s $650 million FY09 budget shortfall.

While legislators argue over whether this is the right approach to fixing the state’s Constitutional obligation to balance its budget every year, we have yet to address the real issue – the State’s structural deficit. The State’s spending is not in line with its revenue.

“You’re literally out of cash and living paycheck to paycheck,” State Treasurer Dean Martin said.

Martin testified to the House Appropriations committee that before the fiscal year 2009 budget fix, the state was spending $28 million a day and bringing in $22 million a day. This is what led to the $2.2 billion budget deficit.

Since the fiscal year 2009 budget fix, the state has lowered the spending from $28 million a day to $26 million a day but the state must still reduce its spending to make its expenditures line up with its revenues.

Clearly the State is spending more money than it brings in.

The Legislature can fix its cash deficit in any given year through one-time payments.

However, structural deficits are a permanent, year-to-year deficit that needs permanent revenue streams to cover these expenses. Chronic year after year cash deficits are a consequence of a structural deficit.

There are only two options to balance a structural deficit – permanent cuts or permanent revenue increases. Unless the structural deficit is balanced by either or both of these options, recurring cash deficits will follow.

There is no third option.

The budget bills passed out of the House Appropriations Committee on May 5 use more stimulus money so the State would not have to borrow as much to close the FY09 budget gap. These bills allow the Legislature to reduce the State’s structural deficit in FY10.

Instead, the current agreement solves the statutory problem of tomorrow’s deadline but does nothing to address the State’s structural deficit.

“There are some scenarios where even a consortium of banks could not provide us [State of Arizona] enough cash. That’s why it’s so important to get your expenses and revenue in line,” Martin said.

The JLBC 2010 baseline summary report says if current policies are continued, the projected structural shortfall is $3.33 billion in FY 2011 and $3.14 billion in FY 2012.

Exploring the Great Indoors

AZHouseRepublicans@gmail.com — 2009-05-13T08:38:53-07:00

Yesterday, House Democrats voted against continuing funding for state parks. HB2088, proposed by Rep. Warde Nichols, would have transferred $20 million from the Land Conservation Fund to offset cuts earlier in the year and prevent the reduction of services or closure of state parks.

The Land Conservation Fund was approved by voters in 1998 to help prevent urban sprawl. Since the economic downturn has essentially frozen construction, the $70 million in the Land Conservation Fund currently has no use.

A three-quarters vote was needed to pass the measure and keep parks open, however only two rural Democrats joined the Republicans to support the measure. Unfortunately, this kind of partisan approach to common-sense measures has been the norm for House Democrats all session.

So this summer, leave the sleeping bags in storage and thank your nearest Democrat for voting to cancel your family’s summer camping trip.

First Things First Brief

AZHouseRepublicans@gmail.com — 2009-05-12T16:06:14-07:00

The Speaker and President have filed a brief asking the Arizona Supreme Court to find that the First Things First initiative (Proposition 203 from 2006) is constitutionally defective.

The brief argues the proposition has an inadequate revenue source and a negative impact upon the State’s General Fund.

You can view the brief here - EARLY CHILDHOOD BRIEF (PDF)

In 2004, Arizona voters amended the State Constitution to respond to problems with initiatives that created ongoing funding obligations where the State is obligated to spend money for initiatives without an adequate funding stream.

Because of these problems, the voters enacted Article 9 Section 23, the constitutional Revenue Source Rule, which creates special protection for the State’s General Fund.

As a result, initiatives are now required by the State Constitution to identify a revenue source for current and future costs and it cannot have an impact on the General Fund.

So far, the First Things First initiative has had an approximately $50 million negative impact upon the State General Fund.

In November 2006 Arizona voters approved Proposition 203 that established the First Things First Initiative. The Fund consists of revenues generated by an 88 cents tax on every pack of cigarettes. A pack of cigarettes went from $1.18 per pack to $1.98 per pack.

The brief says “The Revenue Source rule requires that programs prescribed through the ballot measures must be funded from a new revenue source that meets the entire needs of the programs, both at inception and in the future. And, the funding source cannot cause a reduction in State general fund revenues. Proposition 203 failed to meet both of these requirements, because the tobacco tax it imposed caused an immediate reduction in State general fund revenues. Also the funding source cannot meet the future needs of the Board’s programs.”

Setting the Tax Record Straight

AZHouseRepublicans@gmail.com — 2009-05-11T14:56:55-07:00

Arizona Republic columnist Robert Robb sets the record straight on Arizona taxes.

Whereas the tax and spenders have argued Arizona remains low in the amount of taxes Arizonans must pay, their data failed to include nearly $2 billion dollars in unreported tax collections.

So instead of Arizona being 39th in the nation in tax collections per capita, Arizona is 32nd in the nation including ALL taxes.

Additionally, Arizona taxpayers earn less per capita than most other states.

What this means practically - higher taxes coupled with lower wage paying jobs amounts to the average Arizona taxpayer paying the 15th highest tax rate in the entire country!

Other states can offset their higher tax rate due to local businesses offering higher wage paying jobs. Arizona doesn’t have this luxury.

As Robb says, “So, rather than being a low-tax state, Arizona actually ranks more toward the middle in terms of nominal tax load and higher than average based upon ability to pay.”

ABC's of a Bad Budget

AZHouseRepublicans@gmail.com — 2009-05-08T09:44:29-07:00

The Arizona Budget Coalition (ABC) announced their formation yesterday and presented what appears to be not much more than the current Republican proposal with a tax increase.

They want a budget that “works for Arizona” and say “massive” cuts to education, health and human services take Arizona in the wrong direction.

The problem is that Arizona government is simply too large to pay for itself, even if we were to increase taxes.

For Arizona to emerge from this financial crisis, we must work to solve the state’s cash and structural deficits.

By using federal stimulus dollars, we chip away at the “cash” deficit, but until we bring government spending in line with revenues, we cannot correct the structural deficit.

ABC said they oppose cuts and provide an alternative. The only problem with their alternative is it’s impossible, and irresponsible.

The problem with the ABC alternative is we’ve already tried it with the last three state budgets. It’s a large part of why we’re where we are today – an obligation to spending that we cannot afford.

Cutting Government Easier in Theory

AZHouseRepublicans@gmail.com — 2009-05-07T17:59:31-07:00

As Americans we like to read polls. Some of us like to answer questions from pollsters, but mostly we like to read about polls and see what the “average Joe” thinks.

O’Neil Associates conducted a poll in late 2008 asking citizens what they thought about the state’s budget shortfall and if Legislators should increase taxes or cut government spending.

Interestingly, 93 percent of respondents said the state should cut government spending to fix the budget shortfall.

Here’s where the poll gets interesting…

Since 93 percent of respondents said the state should cut spending, respondents were asked EXACTLY what they would cut.

When given actual agencies with actual budgets to cut, respondents time and again answered they did not want to cut K-12, Mass Transit, Freeways, Police services, Universities or Fire services.

Instead they actually wanted to see those budgets increased.

The point is this – it’s very easy to say “cut government spending,” but when presented with what comprises that spending, they wanted more money to go to those services, not less.

This is the challenge this Legislature faces every day as they work to balance a huge state budget with a deficit of $3.3 billion.

It’s easy to criticize a process…what’s far less common are actual solutions to the problems.

Lawmakers are working very diligently to produce a responsible budget that maintains our quality of life, which the poll clearly demonstrates.

School Districts Suffering From Poor Economy Too

AZHouseRepublicans@gmail.com — 2009-05-06T14:35:12-07:00

The teacher’s union would love you all to believe the Legislature is to blame for the funding problems within the state’s school districts. That, however, simply isn’t true! The poor economy actually is the culprit – not the Legislature.

Several issues impacting the state’s educational system have nothing to do with legislative action like declining enrollment, declining Proposition 301 revenues and a loss of gaming funds.

Declining enrollment is having a huge impact to school districts because fewer students means fewer dollars for districts; and with funding at $9,700 per pupil, depending on how badly enrollment numbers are off, the district may be losing out on significant funding. Not the Legislature’s fault.

Declining Proposition 301 revenues has hurt districts too because this funding is tied to the state’s tax revenue. Unfortunately, Arizona’s state tax revenues are down 21.5 percent from where they were last year – making fewer dollars available for education.

Declining gaming revenues are off because people just aren’t gambling as much in this poor economy. Districts receive a portion of gaming revenues for dropout prevention programs, school readiness and reading programs.

Setting the record straight is important; and although it is true the Legislature made reductions to the state’s K-12 education budget, the fiscal year 2009 Special Session DID NOT decimate public education as critics would have you believe.

In fact, the K-12 budget was reduced by $133 million, but even after that reduction, the funding levels for education in ’09 were still $61 million more than they were in FY08.

Lawmakers have tough budget decisions ahead, but they will do everything within their power to keep education cuts as low a possible as they work to balance the budget.

Budget Moves Without Raising Taxes

AZHouseRepublicans@gmail.com — 2009-05-05T17:12:26-07:00

Today the House Appropriations voted 10 budget bills out of Committee, moving one step closer to finalizing and delivering a balanced budget to the Governor that does not include a tax increase.

The fiscal year 2010 budget had to solve a $3.3 billion shortfall, which lawmakers were successfully able to balance by utilizing a combination of $989 million in stimulus funding, $670 million in spending reductions, $394 million in fund transfers, $51 million in additional revenue and $615 million in non-tax revenue enhancements.

According to Speaker Kirk Adams he is pleased the appropriations process has been allowed to work. “The FY10 budget that passed out of the Appropriations Committee today effectively tackles the state’s structural deficit and makes thoughtful reductions to agencies in an effort to limit impact to government services and the citizens in the state,” Rep. Adams said.

Arizona’s economy is in bad shape, but with few options and a Constitutional mandate, Lawmakers have no choice but to reduce agency budgets to solve the state’s deficit and balance the budget.“ Regardless of what critics say about the FY10 budget, the cumulative budget reductions DO NOT decimate state services. The fact of the matter is that state government is simply too large to pay for itself,” Majority Leader John McComish said.

“General Fund spending has increased by $3.7 billion since 2004, a third of the General Fund is voter protected and tax revenues in the state are down by 25 percent from this time last year. Lawmakers have no choice but to reduce state agency budgets to help solve the budget shortfall,” Rep. McComish explained.

“The Legislature was asked to keep permanent reductions to state agencies reasonable." Majority Whip Andy Tobin said and added, “Lawmakers have tried very hard to deliver on that request.”

“We have been looking at all options, everything is on the table. It is clear that a crisis of this magnitude will require us to think out side of the box and we must work hard to limit mistakes. Clearly, we could simply make an assumption that the economy will grow at 8 percent, like last year, and balance the budget. We know that number is irresponsible, just as it was last year. Trying to fool the public to push off our crisis to someone else is Napolitanoesque,” Tobin explained.

“Tough choices are being made and compromises will be made by everyone. I welcome the opportunity to look into any idea that does not harm the working community by driving more people to the unemployment line,” Tobin added.

Lawmakers understand citizen’s concerns about education, health services and other state service reductions and struggle with how to maintain quality of life for Arizonans. Reducing state agency appropriations to balance the budget is an extremely difficult process and in many cases, just plain agonizing for Legislators.

Speaker Pro Tem Steve Yarbrough said, “I applaud the work of the Appropriations Committee. The budget that passed today is distinctly different in size and scope from the reduction options released in the Chairmen’s Options in January. The FY10 budget will provide more flexibility for state agencies by allowing directors to make decisions about where and how to implement reductions within their own organizations.”

The House is moving toward delivering a final budget and is looking forward to working with the Governor on finalizing the FY10 budget.

For more information about the House budget bills, please review the fact sheets at: HB2633;HB2634;HB2635;HB2636;HB2637;HB2638;HB2639;HB264;HB2641; and HB2642. Or view the entire list of bills at www.azleg.gov

What Would YOU Cut and Why?

AZHouseRepublicans@gmail.com — 2009-05-05T08:47:51-07:00

Citizens often criticize the Legislature for many different reasons.

Some think government is too big, whereas others think the money should be spent more in areas they think are important.

Put yourself in the legislator’s shoes…

What would you cut and why?

Facing the largest fiscal crisis in Arizona’s history would you cut K-12? AHCCCS? Department of Economic Security? Do you cut the Department of Health Services? Universities? Corrections?

These agencies help provide for the developmentally disabled, the blind, vaccinations, health care for the poor, public safety and the future of Arizona amongst many, many others. Of these, which one do you cut and why?

Arizona’s budget shortfall is the largest in state history at $3.3 billion dollars.

There are no good options.

Only horrible and worse options.

A third of the budget is off limits as Arizona statute prevents legislators from managing it. Another third of the budget is protected by the will of Arizona voters. This leaves you only a third of the state budget to actually manage and balance.

Of this, K-12 already comprises 42 percent of the budget, with another six state agencies making up 92 percent of the entire state budget, leaving just eight percent left over for all other state services.

Unlike the federal government, Arizona cannot print money and the State Constitution mandates a balanced budget every year.

In spite of the enormous budget shortfall, more emails and phone calls come in telling you “not to cut,” and to increase spending in certain areas. If you increase spending in one area you must cut more spending in another. This is already on top of the cuts that must be made to balance the current $3.3 billion shortfall.

So the million dollar question once again becomes “what do you cut and why?”

In theory it’s easy to say government should cut from a specific agency, but in practice there are no easy solutions.

Parental Involvement & Student Achievement

AZHouseRepublicans@gmail.com — 2009-04-30T14:12:14-07:00

Many sources have recently said Arizona is near the bottom in per pupil spending. For sake of argument, say this is true. Say Arizona is near the bottom in per pupil spending…what exactly does this mean?

The goal of education should never consist of how much money we spend on education, but what comes out - student achievement. Yes, funding is extremely critical but so is parental involvement and teacher discipline.

Critics have held an obsessive, tunnel-vision focus on per pupil spending to the detriment of student achievement.

Yet higher student achievement does not necessarily correspond with more money.

Let’s take Utah and Washington D.C. as a practical example.

Utah spends roughly $7,215 per pupil in overall expenditures whereas Washington D.C. spends roughly $17,600 per pupil. Yet Utah continuously scores well above Washington D.C. in student achievement. So money, although necessary, is not sufficient.

Arizona spends roughly 42 percent of the ENTIRE state budget on education. In fact, six state agencies comprise over 91 percent of our state budget.

And despite the $133 Million in Fiscal Year 2009 budget correction reductions in K – 12, education still received $61 Million more than their Fiscal Year 2008 budget.

Most people value quality education and most people believe that a highly qualified workforce is critical for the emerging economy. This is not disputed.

These same critics who say Arizona is near the bottom in per pupil spending assume that student achievement in Arizona is extremely poor and thus the ONLY way to increase student achievement is to increase per pupil spending.

The literature suggests that parental involvement remains the number one indicator of student achievement.

Higher student achievement directly corresponds to higher parental involvement.

Although we cannot legislate parental involvement perhaps we can reduce taxes and allow parents to keep more of their own money thus giving them the opportunity to spend more time with their children.

House Democrats Propose More Than $1 Billion Dollars in Tax Increases

AZHouseRepublicans@gmail.com — 2009-04-29T11:45:56-07:00

During the worst economic crisis in Arizona’s history, members of the House minority caucus have proposed several measures to increase taxes on items crucial to the lives of every Arizonan. They have introduced legislation that would increase taxes on electricity, food and gas.

“I would like to thank Ways and Means Chairman Rick Murphy and Commerce Chair Michelle Reagan for not letting these harmful pieces of legislation see the light of day. Especially at a time when Arizonans need more help…not more taxes,” House Majority Leader John McComish said.

On the heels of recent utility rate increases as high as 17 percent in some parts of the state, Representative Steve Farley, Minority Whip Chad Campbell and Representatives Tom Chabin and Nancy Young Wright proposed HB2490, which increases utility rates on residential and business customers again. Increasing utility rates at a time when requests for assistance have increased by 77 percent in parts of the state is irresponsible and short sighted.

Representative David Bradley introduced two pieces of legislation with massive tax implications. HB2107 increases the tax on soft drinks and HB2447 increases the tax on liquor, both by unspecified amounts, which would likely result in tax increases of more than half a billion dollars.

With gas prices hovering at $2 per gallon and rising, two pieces of legislation have been introduced to increase the fuel tax. HB2165, introduced by Representative David Bradley, increases the fuel tax by 33 percent per gallon, for an estimated total tax increase of $222.4 million a year.

HB2586, introduced by Representatives Phil Lopes, Clovis Campbell, Matt Heinz, Daniel Patterson, Steve Farley and Minority Leader David Lujan, increases the fuel tax by 22 percent or $.04 per gallon in 2010, $.08 in 2011 and $.12 in 2012 for a total increase of $890.2 million by 2013. Each $.04 increase in fuel taxes results in an additional tax increase of approximately $148 million.

The House Minority tax plan does nothing to solve the state’s structural deficit, which is the root of this state’s economic woes. “We cannot tax our way out of this financial crisis and believe we have solved our budget problems,” Rep. McComish said. “Adding new taxes to citizens in this struggling economy is not a solution to our problem. New taxes will only create bigger problems for the state by prolonging the economic crisis plaguing families, businesses and this Legislature.”

Washington Democrats - "No New Taxes"

AZHouseRepublicans@gmail.com — 2009-04-28T15:36:13-07:00

The State of Arizona and the State of Washington have a lot in common. They both have roughly the same population, state budget size and each are faced with historic budget deficits.

Last week, the State of Washington balanced their state budget by cutting almost $800 million from K–12, $255 million from healthcare and $250 million in government spending by instituting furloughs.

Washington did not raise taxes to balance their budget. They instead opted to utilize federal stimulus, one time sweeps of construction accounts and skipped pension payments to balance their budget.

The Seattle Times Editorial Board praised their work and said, “In the end, lawmakers knew constituents had no stomach for higher taxes. Nixing a planned sales-tax hike for a range of health services was the wise course considering the state’s sputtering economy.”

Washington Democrats in the Legislature felt a tax increase was not the right approach to solve the state’s fiscal crisis and solved their problem without new taxes.

Arizona Republican lawmakers are of the same mindset. Washington is proof a balanced budget can be done without a tax increase, but Arizona Democrats believe only taxing will solve our state’s budget deficit.

In Washington, Democrats balanced a budget without raising taxes and the press praised them.

Legislature Releases Detailed Joint Draft Budget Proposal

AZHouseRepublicans@gmail.com — 2009-04-28T09:13:13-07:00

The Legislative FY2010 budget has been released as a DRAFT Monday, April 27. Click here to see a copy – Joint Draft Budget Proposal 4_27_9 (PDF)

Democratic "Budget Proposal" Takes State in Wrong Direction

AZHouseRepublicans@gmail.com — 2009-04-27T09:59:54-07:00

The Democratic “budget proposal” was never a serious proposal. Not only do they want to raise taxes by $1 Billion dollars, their “proposal” leaves a $1 Billion dollar hole they cannot fill.

There also isn’t any discussion on what a $1 Billion dollar tax increase would have on an already flailing Arizona economy. Arizona unemployment has gone from 7.4 percent to 7.8 percent and Democrats would like to raise taxes by a Billion dollars? What kind of impact would this have on the private sector?

Although the Legislature has helped to extend unemployment benefits utilizing federal stimulus funding, we still have much to do in solving and preventing future unemployment. Stemming an increase in taxes is the first step.

Democrats $1 Billion dollar tax increase includes an increase of $360 Million on property taxes for businesses and homeowners, $80 Million in additional income taxes, an additional tax of $233 million in utilities, a new tax of $45 million on consumer and business warranty and service contacts and an elimination of $100 million of tax credits for contributions to public and private schools which will mean higher costs to the state.

Democrats cannot consistently talk about job creation and taxes in the same breath, as these are mutually contradictory concepts. While they blame Republicans for cutting government, Democrats hurt those who provide the economic tax base in Arizona – the private sector. Ultimately, Democrats end up harming those they claim to represent.

As Robert Robb said, research has been conducted and found that states that are decreasing taxes have a higher growth rate than states that are increasing taxes – the lower the taxes the higher the growth.

Federal Stimulus To Aid Arizonans Now

AZHouseRepublicans@gmail.com — 2009-04-23T15:48:11-07:00

Today the House of Representatives passed two emergency measures with overwhelming bipartisan support designed to immediately tackle obstacles related to accepting $93 million available in federal stimulus funding for out-of-work Arizonans and another $1.6 billion in stimulus for the state’s Arizona Healthcare Cost Containment System (AHCCCS) program; the bills will be enacted without delay upon the Governor’s signature.

Rep. Russ Jones (R-Yuma) sponsored the bill that will utilize 100 percent of federal stimulus funding to extend unemployment benefits by 13 weeks for the state’s out-of-work citizens for this year. A sunset clause for the measure has been included and pursuant to the federal stimulus legislation the federal funding will begin to be phased out January 1 and will cease by June 30, 2010.

“Arizona’s unemployment rate jumped from 7.4 percent in February to 7.8 percent by March, which is the state’s highest unemployment rate since 1983,” Rep. Jones said. “Rural Arizona has been hit particularly hard by the poor economy, posting double digit unemployment rates. In Yuma, the unemployment rate is at 22 percent. I believe this legislation will bring immediate aide for many families struggling to make ends meet as they look for work,” he added.

According to Rep. Frank Pratt (R-Casa Grande), the primary sponsor on the bill that changes the eligibility re-application requirement for AHCCCS from every six-months to a year, this bill makes a technical change and clears the way for Arizona to receive $1.6 billion in federal stimulus.

“The bipartisan actions of lawmakers today demonstrates our willingness to work together to implement solutions that immediately help the citizens in this state,” Rep. Pratt said. “We have been criticized for not getting these funds out sooner, but people need to remember the federal stimulus package wasn’t even voted on by Congress until mid-February. I believe the state and this Legislature did an excellent and responsible job of accepting these funds as quickly as possible,” he explained.

Appropriations Chairmen Discuss Budget

AZHouseRepublicans@gmail.com — 2009-04-23T10:48:22-07:00

Appropriations Chairman John Kavanagh and Russell Pearce discuss the State budget deficit, a tax increase and education with Channel 12’s Mark Curtis.

Key quotes include:

Representative John Kavanagh - “Year after year she [Governor Napolitano] oversaw double digit increases in state spending in years of single revenue growth. And when it became apparent that the economy was tanking last year, rather than cut back then, she created overly optimistic projections of future revenue and she continued to go into fund sweeps…”

Senator Russell Pearce - “We voted in mass against the Democratic budget.”

Representative John Kavanagh - “A tax increase will give us revenue but at the cost of massive job losses.”

Politics & the New Media

AZHouseRepublicans@gmail.com — 2009-04-22T16:27:26-07:00

Last week Pew Internet reported that 74 percent of internet users (55 percent of the adult American population) used the internet to get information about the election in 2008. This is the first time in history that more than half of Americans were politically engaged online.

1 in 3 internet users forwarded each other political content in 2008. While young adults became engaged politically at an unprecedented rate, seniors also forwarded political content to their friends and family at a high rate.

The Pew Internet also reported social networking is becoming increasingly popular, especially among young people. Last year, 83 percent of 18-24 year olds had active profiles on social networking sites including Facebook and Twitter.

Legislature To Hear AHCCCS & Unemployment Insurance Bills Today

AZHouseRepublicans@gmail.com — 2009-04-21T10:36:32-07:00

The House and Senate are hearing identical bills today in their respective Commerce Committees dealing with AHCCCS eligibility and Unemployment Insurance.

HB2631 (eligibility determination; AHCCCS) fixes a problem with last year’s Democratic budget that changed the AHCCCS requirement of re-applying every six months instead of the annual application requirement.

Federal stimulus dollars are contingent upon compliance with a prohibition of reducing the maintenance of effort. The “stimulus” legislation required all modifications to have been made by July 1, 2008. Since the modification did not take affect until September 26, 2008 the Legislature is now required to fix it.

HB2632 (unemployment insurance; benefits) extends the length of unemployment benefits with no programmatic changes. When the federal money is no longer available, the state will not have to continue the extension.

If the bills pass out of Commerce Committee, they will go to Caucus tomorrow and more than likely onto the Committee of the Whole (COW) and Third Read on Thursday. This means both bills could go up to Governor Brewer’s desk as early as Thursday.

Both bills have an emergency clause meaning they have to pass with a two-thirds majority so the bills need 41 votes in the House and 21 votes in the Senate.

SCOTUS Hears Oral Arguments in ELL Case

AZHouseRepublicans@gmail.com — 2009-04-21T10:28:36-07:00

Yesterday the United States Supreme Court heard oral arguments in the ELL case.

You can find the transcript to the oral argument here at the SCOTUS website.

Additionally, a good article by the Arizona Republic on yesterday’s oral arguments can be found here.

Some key graphs include:

“The bottom line is these kids are going to learn English and quickly," David Cantelme said.

"Our fundamental quarrel with the approach of the District Court is it blinded itself to the significant changes structurally, as well as the progress that had been made, and just said it doesn't matter because this is all about funding," Starr told the court. "And that is not true."

AZ's ELL Issue Before SCOTUS Today

AZHouseRepublicans@gmail.com — 2009-04-20T09:50:53-07:00

Today the U.S. Supreme Court heard oral arguments in Speaker of the Arizona House and President of the Arizona Senate v. Flores, 08-294. The Court will render a decision before June 30, 2009.

The Nation’s High Court will consider whether the lower federal courts improperly refused to modify an eight-year old injunction addressing the state-wide funding that Arizona provides for programs for English language learners. Specifically, the Supreme Court will decide whether the refusal to modify the injunction complies with its earlier precedents given the significant changes that have occurred over the last eight years both in Arizona’s schools and in federal educational policy.

Ken Starr argued the case on behalf of Speaker of the Arizona House of Representatives, Kirk D. Adams, and President of the Arizona Senate, Robert L. Burns. “It is clear from the Justices’ questions that they understand the importance of this case,” Starr said. “We are hopeful that the Court will restore local control back to Arizona’s Legislature over funding the state’s ELL school programs.”

“One size does not fit all,” Speaker Adams explained. “Only the Legislature has the authority and the ability to tailor policy solutions that meet the diverse educational needs of our state. It’s time for the federal courts to return this area of policy to the elected representatives of the People of Arizona.”

Speaker Adams continued: “I hope the Court issues a decision that enables Arizona to return to the task of implementing its highly-effective, intensive, four-hour a day program of immersion in English language instruction. This program was designed by national experts to immerse Arizona ELL students in a course of reading, writing, grammar, and listening and speaking skills. We are confident that this program will work, and will quickly and cost-effectively teach these students English.”

For more information about this case please see our previous post at this link.

Tea Party Draws Sizeable Crowd Protesting Higher Taxes, Big Government

AZHouseRepublicans@gmail.com — 2009-04-17T16:23:02-07:00

This past Wednesday, thousands of Arizonans showed up to protest government spending and high taxes. There were more than a dozen tea parties statewide with the tea party at the State Capitol receiving around 5,000 visitors.

"Can't Fix Budget w/o Fixing Economy"

AZHouseRepublicans@gmail.com — 2009-04-16T10:38:32-07:00

House Speaker Kirk Adams and Senate President Bob Burns discuss Budget solutions, transparency and taxes with Horizon’s Ted Simons last Tuesday evening.

"Mr. Speaker, Don't Raise Taxes!"

AZHouseRepublicans@gmail.com — 2009-04-15T14:58:10-07:00

The Speaker received a constituent call yesterday morning by an 80 year old lady who is adamantly against a tax increase.

Please click on the following link to hear the call.

Constituent call 4_15_9

GPEC Budget Presentation Pt. I

AZHouseRepublicans@gmail.com — 2009-04-15T08:45:44-07:00

The following presentation was delivered last Thursday (4/9/9) at the Greater Phoenix Economic Council (GPEC) by Speaker Kirk Adams and President Bob Burns.

The purpose of the event was to better educate the community regarding Arizona’s multi-year budget shortfall and provide potential solutions.

The presentation is broken up into three segments.

GPEC Budget Presentation Pt. II

AZHouseRepublicans@gmail.com — 2009-04-15T08:45:44-07:00

GPEC Budget Presentation Pt. III

AZHouseRepublicans@gmail.com — 2009-04-15T08:45:43-07:00

Education Receives More Money Than What's Reported

AZHouseRepublicans@gmail.com — 2009-04-15T08:27:31-07:00

Despite the $133 Million in Fiscal Year 2009 budget correction reductions in K – 12, education still received $61 Million more than their Fiscal Year 2008 budget.

Lack of Transparency Claim False

AZHouseRepublicans@gmail.com — 2009-04-14T09:36:34-07:00

Majority lawmakers are being criticized for not being transparent as they continue to work on the budget. Critics are claiming the budget process is being “cloaked in secrecy” and that most GOP Members are not involved in the process.

Majority Members are in fact working hard with their Caucus to find a solution for this budget and providing more information than in years past. There was a time when Members used to meet behind closed doors and Democrats never got to see the budget until it was presented in a bill format.

This session, multiple public budget meetings have taken place, including business and municipal leader’s public roundtable discussions. There has also been a public release of DRAFT budget documents that list proposed solutions and cut options. Neither of these took place last year and releasing a draft of the budget before memorializing it in a bill is unprecedented.

A Caucus website has been established in order to open up transparency to the public. The web site includes budget updates and documents. The public also had the opportunity to attend discussions in multiple cities around the state where Leadership traveled to discuss the budget and explain the legislative process. The Education Committee also traveled the state discussing the Education Budget with the public.

Members of the Caucus are kept informed through a newsletter developed by the Majority Whip and are asked for their input. It is a top priority of the Majority Staff to involve all members of the Caucus in the budget process. In creating this budget, Leadership has been working with all of the Caucus Members by meeting with them in small groups.

It may seem that Majority Leadership is leading the budget from the outside with little input, but the House Appropriations Committee, made up of both Republicans and Democrats, has played a primary role in developing the budget and the committee reflects the actual body of the House.

In a push for transparency, Leadership has also established a Speaker’s Bureau and they are holding weekly Chairmen’s meetings.

Majority Leaders are not hiding the budget behind closed doors, and are instead introducing new steps in making the process more transparent than it ever was in the past.

Dems would rather have teachers protesting than in the classroom

AZHouseRepublicans@gmail.com — 2009-04-13T15:46:43-07:00

Numerous school districts are laying off teachers at an unprecedented rate.

It could have been avoided.

Democrats decided to support the teacher’s union (Arizona Education Association) instead of supporting teachers.

Here’s what Democratic Representative Tom Chabin had to say on his refusal to support school districts in having more time to deal with the state’s fiscal crisis:

“The hesitancy really revolves around putting a face on a decision that we make. The truth is, the truth is, that if we give notice to teachers on April 15th and their families, and the schools, and the children they teach, we will see who is affected by our decisions. They will be here and it will put more pressure on us to develop a budget in education sooner. Now that’s honest.”

Honest indeed.

Democrats would rather have teachers protesting at the Capitol than teaching in the classroom.

SCOTUS to hear AZ ELL case next Monday

AZHouseRepublicans@gmail.com — 2009-04-13T13:00:11-07:00

Next Monday morning, April 20, the U.S. Supreme Court will hear oral arguments in Speaker of the Arizona House of Representatives and President of the Senate v. Flores. The issue involves the interference of the federal courts with the authority of the Arizona legislature to establish education policy for English Language Learners.

The Court will decide whether the judgement put in place in 2000 should be modified or ended given significant developments in the intervening years.

Developments include: Prop 203 (2001), the Federal No Child Left Behind Act, and HB2064 (2006).

Here are the Speaker’s legal filings with the Supreme Court:
1. Petition for writ of certiori brief (PDF)
2. Petitioner's Opening Brief (PDF)
3. Petitioner's Reply Brief (PDF)

For more resources on this case, click here.

Additionally, from the Arizona Republic, read Robert Robb’s most recent column on ELL issues.

Republican Leaders Working to Balance Budget

AZHouseRepublicans@gmail.com — 2009-04-09T13:49:36-07:00

Speaker of the House Kirk Adams said a tax increase would hinder Arizona’s economic recovery because it would burden both businesses and consumers...

Click here for entire story

GPEC presentation by Speaker Adams & President Burns

AZHouseRepublicans@gmail.com — 2009-04-09T11:10:00-07:00

The following presentation was delivered this morning at the Greater Phoenix Economic Council (GPEC) by Speaker Kirk Adams and President Bob Burns.

The purpose of the event was to better educate the community regarding Arizona’s multi-year budget shortfall and provide potential solutions.

Click on the following link to view the presentation.

GPEC Presentation 4_9_9

Budget Discussions Continue

AZHouseRepublicans@gmail.com — 2009-04-08T14:26:21-07:00

Please click on the link below to view a working draft of the FY2010 budget reductions. This is a WORKING document and should not be treated as an official budget proposal.

When the Appropriations Chairmen develop a full budget proposal with input from members, we will release it as an official proposal.

Working Document 3_26_9

Teacher Layoffs Could've Been Avoided

AZHouseRepublicans@gmail.com — 2009-04-08T10:37:07-07:00

The following links consist of a few headlines regarding teacher layoffs.

These layoffs could have been avoided if Democrats had voted with Republicans to give school districts more time to make teachers aware of their employment status.

State law requires notices go out by April 15.

The following news stories are more than likely just the beginning of Reduction-in-force (RIF) notices...

Gilbert School District votes to cut 400 teachers

TUSD Board approves layoffs for 605 workers, mostly teachers

Chino Valley sends out 227 RIF letters to employees

Peoria School District approves layoff of 300 teachers

Deer Valley Unified School District laying off 121 Employees

Dysart Unified School District to recommend elimination of 175 jobs

Queen Creek School Board approves cutting 35 teachers

34 teachers leaving Kingman Unified School District

Mayer School Board RIFs 8 employees

Mesa school jobs in ‘confusing’ limbo

Torren Eilhelmsen, a Desert Ridge High School student recently wrote a letter to the Gilbert Public Schools Governing Board. The student’s experience is not unlike many of her counterparts in schools all across Arizona.

Eilhelmsen wrote, “I am very involved with student leadership. Specifically, I am part of the Principal's Advisory Council that helps deal with different issues at the school. This morning, April 6, 2009, students walked into class knowing something wasn't right. Then, when the bell rang, distraught first-year teachers gave their students the news that they very likely would not have a job with Gilbert Public School District next year. This announcement was made to them on Friday, April 3, 2009, after school. This announcement comes after Dr. Allison told the parents of the Parent Superintendent Council, that he and the governing board would do everything in their power not to cut teachers and increase class sizes. We all trusted that was what was to happen. Now, they have said that first year teachers may not get to teach with Gilbert Public Schools next year. This would raise the class size at Desert Ridge to approximately double the size of this year's classes. Now I ask you, are we supposed to still trust you when you tell us something? I find it hard to believe that there would be logic in that in the least amount. There are other things that can and should be cut long before it comes to teachers.”

Democrats Side With Union Against Teachers

AZHouseRepublicans@gmail.com — 2009-04-07T16:10:31-07:00

By Andy Tobin
House Majority Whip

Instead of doing what’s right for teachers and students, the teachers union (Arizona Education Association) has decided politics are more important. This same teacher’s union colluded with the House Democrats to make sure school districts do not have the ability to have more time to notify teachers about whether or not they will be retained for the following school year.

The Democrats voted party line against HB2630 with the exception of one Democrat. This bill would have given school districts the time they needed to make teachers aware of their employment status and not frighten or lose good teachers because of unnecessary contract termination letters.

In March the Legislature attempted to pass HB2630, which would have extended the statutory teacher notification deadline for all Arizona school districts. The Republicans attempted, at the request of the Arizona School Boards Association, to give an emergency extension so school districts could finalize their budgets without frightening or losing good teachers with contract termination letters that were based on worst-case scenarios.

Unfortunately, the Arizona Education Association went against the school districts and convinced all but one of the House Democrats to vote ‘no’ on HB2630. Rep. Rae Waters voted with the Republicans on this issue. In addition to the 35 Republicans, five Democrats needed to vote ‘yes’ to pass the emergency measure. Instead, the Arizona Education Association and the Democrats decided to play political games with teachers’ livelihoods and killed the emergency measure.

- Click here to see Highlights of the HB2630 Debate

If you are truly concerned about the situation Arizona teachers are in, I suggest you contact your Democratic legislators and ask them why they voted to send layoff notices to teachers that may still have jobs.

You can find their contact information at this link.

Welcome to the AZ House Republicans New Website!

AZHouseRepublicans@gmail.com — 2009-04-06T15:27:25-07:00

Welcome to the official website of the Arizona House Republican Caucus!

We will be posting on issues that are of importance to Arizona and we look forward to communicating more fully and transparently regarding our actions here at the State Capitol.

We look forward to hearing from you. Please drop us a note at the “Contact Us” tab.

Additionally, you can find us on Facebook, follow us on Twitter (AZHouseGOP) and sign up for our RSS feed so you can follow up-to-date, accurate information on what’s happening at the Arizona State Legislature.

AZ Desperately Needs Tax Reform

AZHouseRepublicans@gmail.com — 2009-04-06T15:27:25-07:00

Arizona needs tax reform, and we need it now.

The Legislature has received countless letters and emails from businesses that talk of the stifling effect government – both state and federal, has had on their companies, their innovation and their desire to grow.

Instead of forcing businesses to base their saving and investment decisions on taxes, we should provide the grounds that foster economic growth meanwhile encourage innovation and investment.

Not every economist (or politician) will agree that lowering taxes on capital income fosters greater investment, greater economic growth and higher standards of living. Yet every business takes capital income taxes into consideration when deciding whether to move into a state or even move out...as in the case of California.

The question we must ask – is Arizona as business friendly as we could be?

In comparison to our neighboring states (with the exception of California), we lag far behind in terms of having a business friendly environment.

Raising taxes on an already flailing economy will only harm businesses and in turn harm families – the very families that help sustain our great state.

Even if Democrats were able to squeeze $1 billion more from businesses and families that are already struggling, they would still be unable to close the $1 billion budget deficit that they’ve admitted they are short in their budget proposal.

As Speaker Pro Tem Steve Yarbrough said, “Instead of reducing unaffordable expenditures to bring them into alignment with revenues like every other household, business, and local government is doing, the House Minority wants to take more from Arizonans.”

The question we must answer is how can we make Arizona a more business friendly state and what can we do to foster long term growth?

This will take real leadership who can provide for a qualified workforce and a business friendly environment.

Stemming the Size of Government

AZHouseRepublicans@gmail.com — 2009-04-06T15:27:25-07:00

While we’re cutting government growth in Arizona, the Federal government is expanding at an unprecedented rate. The “changed” Washington seems to be eerily similar to what Reagan said “if it moves...tax it, if it slows down...regulate it, if it stops moving...subsidize it.” Now we can say “if it fails...bail it out!”

Meanwhile, Arizona faces an unprecedented fiscal crisis never seen before in the history of our great state. Our ongoing expenses greatly outweigh our incoming revenue – to the tune of $3 Billion dollars.

We must cut non-essential services and grow our way out of this topsy-turvy imbalance and provide pro-growth tax policy that accomplishes this.

We are trying to align our structural deficit, which has come about due to a doubling and sometimes tripling of state services in the last several years.

Last January, the Legislature passed a fix to the Fiscal Year 2009 budget that became the largest reduction in government in Arizona’s history. While House Republicans are trying to stem the growth of government and fix our structural deficit, Democrats are seeking to bring it back and even increase the size and scope of government with their most recent budget proposal.

Conversely, the ongoing discussions of the House and Senate FY10 Republican budget proposal includes not raising taxes nor growing government.

The minority proposal includes an increase in taxes by $1 billion in FY10. These taxes include increases of $360 million in property taxes on homeowners and businesses, $80 million in additional income taxes, $100 million from the elimination of tax credits for contributions to public and private schools, a new assessment of $233 million on the generation of electricity, and a new levy of $45 million on consumer and business warranty and service contracts.

We can and we must continue to attract and retain businesses as a major piece to fixing our fiscal crisis.
Additionally, spending reductions, non-tax revenue enhancements, and federal stimulus funding will help us to correct the state's budget shortfall.

AZ Speaker & President on Horizon

AZHouseRepublicans@gmail.com — 2009-04-06T15:27:24-07:00

Arizona House Speaker Kirk Adams and Senate President Bob Burns discuss the budget deficit, the upcoming FY2010 budget and how to bridge the shortfall without raising taxes.

Abortion Consent Act Defies Argument

AZHouseRepublicans@gmail.com — 2009-04-06T15:27:24-07:00

By Representative Nancy Barto

HB 2564-the Abortion Consent Act-passed out of the House Health and Human Services committee 5-0 with hardly a dissent. Several committee members decided to leave the scene during deliberations of the bill.

Even Planned Parenthood and NARAL, predictably opposed to the bill, did not speak against it in committee even while facilitating hundreds of stock e-mails to Legislators’ inboxes - spreading all manner of misinformation. Interestingly, not one of the e-mail senders testified in committee.

Perhaps they simply could not refute the fact that the legislation would not prohibit one abortion.It may be a number of other reasons, though. Perhaps they did not want to admit that current parental consent laws, supported by an overwhelming majority of Americans, are meaningless without the legislation.

Perhaps they didn’t want to go on record opposing women seeking an abortion should receive the complete and accurate information she needs before making her decision. After all, specific informed consent protocols are required for a number of medical circumstances including HIV-related testing, admission of a minor to a hospital, genetic testing and immunizations, to name a few. And it is standard practice for virtually every other medical surgical procedure that a physician communicate to their patients a raft of information, including the available alternatives, before they consent.

Except for abortion.

Maybe it is the fact that the bill’s provisions, including the 24 hour reflection period in which to process the information, are already law in 30 other states. Even a woman deciding whether to give a baby up for adoption must be given a full 72 hours within which she has the right to change her mind.

Perhaps they couldn’t make the argument that the availabililty of emergency contraception would not be affected even while protecting a pharmacist’s right not to fill an abortion-inducing prescription. After all, emergency contraception (Plan B) is now available over the counter and on the internet for $29.99!

Whatever the reasons the opposition chose not to make their case in committee, testimony in favor of the bill was powerful. And 37 Arizona physicians, many of whom are OB/GYNs, signed onto a letter recommending these changes to our abortion laws. If legislators had any doubt as to the need for the legislation, by the end of the hearing, they were erased.

To access committee testimony, click here. Then click on 2/25/09 House Health and Human Services meeting.

With the passage of the Abortion Consent Act, chances are excellent vulnerable minors will be less at risk of being taken advantage of, the doctor-patient relationship will be strengthened and the quality of care for women seeking abortions will improve. These are common sense provisions that are hard to argue with.

State Property Tax Kills Jobs

AZHouseRepublicans@gmail.com — 2009-04-06T15:27:23-07:00

Arizona has the dubious distinction of being ranked fifth in the nation for having the highest business property tax burden. Regionally, Arizona is the worst (with the exception of California).

This means when a business is considering moving to a state, they factor in the additional costs state government will impose, along with regulations. In comparison to Nevada, Colorado, New Mexico and Utah, Arizona has a much lower business friendly environment than our neighbouring states.

Allowing the State Property Tax to return this fall without a complete repeal is a tax increase - the worst possible thing we could allow in a troubled economy. Our businesses and homeowners cannot afford an added financial burden during a time when many are struggling to hold onto what they have.

It is an extremely dangerous proposition to raise taxes during an economic crisis. As lawmakers we must make wise tax decisions to grow our economy, expand our economic base and create jobs. We do that by attracting business and innovation to Arizona.

Tax cuts didn’t lead to the state’s recent budget crisis. We must correct the $3B deficit in Arizona now because the two previous budgets under Governor Napolitano ignored the economic warning signs and relied heavily on borrowing and accounting schemes.

If the State Property Tax is not permanently repealed, it will be incorporated into property tax bills in the fall of 2009 and we will fail to attract and encourage greater diversity and investment in our state among businesses that could bring jobs to Arizona.

We must do all we can to retain and invite business into Arizona. We can continue this process by passing HB2073, the State Property Tax Repeal.

Small Businesses Can't Afford State Property Tax

AZHouseRepublicans@gmail.com — 2009-04-06T15:27:23-07:00

I am a small business owner. My business was created from an idea thirty-one years ago. Today, I employ 28 people and my business generates more than $5 million in annual sales. The business is profitable but earns only about 1.5 percent of sales. Over the past ten years, earnings during the most profitable year were 2.5 percent. As you might imagine there is little room for error or frivolous spending in our operations. Focus, discipline, and hard work by everyone involved make my company function.

The biggest beneficiary of my company…GOVERNMENT. The taxes we paid or generated during 2008 were $654,602.

While I earned $72,000 to sustain and grow my business, government received $654,602 from my effort. Small business is being taxed to death. The small business engine of the U.S. economy is being suffocated with taxes. Business is at the heart of America and always has been. To restart it, you must stimulate it, not kill it. Remove or lessen some of these taxes so I can invest more to develop jobs, grow my company and stimulate economic growth.

Unfortunately one of the consequences of high taxation is to discourage individuals from going into business. New ideas are left dormant because the obstacles to success seem too great or the reward too little. Our tax system should support individuals with new and creative ideas to develop their potential, provide jobs and create wealth. I ask you to support such a system and to oppose programs that restrict entrepreneurial spirit.

Sincerely,

Keith Stephens, President
Woodworkers Source

________________________________________________________________________

Although I do not own any real estate at this time, the State Property Tax Relief provision should remain as it is and not be allowed to expire. In light of all the new developments out of Washington, D.C., and the new taxes that are going to be levied, businesses do not need any further taxes. To do so would force businesses to increase its prices, possibly lay off employees, and/or reduce employees’ hours to that of part time, thereby saving on benefits i.e. vacations, health, sick days, workman’s compensation. We could not keep our businesses open longer or add hours, as this would only increase our overhead costs.

Frank de Rosa , PhD, President. Advance Paper & Maintenance Supply, Inc.

________________________________________________________________________

In spite of the Temporary Property tax relief provisions passed in 2006, I have seen my property tax payment increase over 25 percent in the last two years while the full cash value of my property has declined 43 percent. In other words, the state revenues collected for 2008 and 2009 will be based on the higher cash values from the housing bubble since it takes two years for declines in value to equate to tax liability.

By my estimate I will not see relief from taxes caused by declines in my property values until tax payments are due in 2010. We need this relief provision to be extended for this reason alone.

We are a small service business, employing and paying healthcare for five employees. We are experiencing a significant reduction in revenues and are struggling to keep our workers employed. Our business credit line has been closed by our bank. Our house which we have owned since 2005 is upside down according to our lender. We have cut back on all unnecessary expenses. The next step will be to cut salaries, hours or benefits.

Linda M. Day
Day Enterprises, Inc.

AZ Chamber of Commerce Supports State Property Tax Repeal

AZHouseRepublicans@gmail.com — 2009-04-06T15:27:23-07:00

By the Arizona Chamber of Commerce

Introduction

In 2006 the Arizona Legislature passed the Omnibus Tax Relief Act suspending the State Equalization Property Tax Rate for three years. According to research from the Joint Legislative Budget Committee, this legislation saved property owners a projected $250 million a year.[1]

Bills currently in the state legislature would make this temporary suspension permanent. Repealing the statewide property tax will prevent further job loss and will make Arizona more competitive by lowering taxes for homeowners and businesses in this struggling economy. If the Legislature does not act, businesses will face a dramatic tax increase when the tax returns following fiscal year 2009. Businesses both large and small will undertake the difficult decision of whom to layoff when the new property tax bill comes due. Taxing our citizens and businesses in a time of economic crisis will result in a longer recession and less capital to retain employees and create jobs.

Background

The State Equalization Property Tax Rate was enacted in 1981 to support local communities’ public school financing. The state legislature sets the rate for this property tax.

Prior to 1981, Arizona’s public schools, like in most states, received their funding from local property taxes. If real estate in a particular area had high valuations, the town or city could impose a relatively low tax rate and still meet its school system's financial needs. In areas where valuations were low, property owners were forced to bear a greater burden to pay for schools.

In an effort to comply with the state constitution's call for "a general and uniform public school system,”[2]the legislature established a formula to determine an "equalization base" of guaranteed funding. If local property taxes fail to meet this minimum, money raised from the State Equalization Property Tax Rate is used to top those districts’ coffers until they reach the set equalization base level.[3]

Because a fixed statewide property tax rate combined with rising real estate values meant owners’ tax bills were constantly increasing, the legislature passed Truth in Taxation (TNT) laws in 1998. TNT was intended to lower tax rates to offset the rise in property valuations, thereby stabilizing owners’ tax liability.

From 2001 to 2006, TNT lowered the State Equalization Property Tax Rate from 51 to 44 cents per $100 valuation –a 16 percent drop. However, statewide primary valuations jumped 55 percent over the same period resulting in property tax increases for many residents.[4] In Maricopa County the increase was nearly 60 percent.[5]

Although most property taxes are collected at the local level, state lawmakers wanted to provide some form of relief from this tax surge. They negotiated a three-year suspension of the State Equalization Property Tax Rate (one of the two property taxes the state controls) saving owners over $250 million a year.

The degree to which education and statewide property taxes are truly separate issues was made clear in the Joint Legislative Budget Committee's December 2007 fiscal note. The Committee reported that the Department of Education had a $61.1 million budget surplus. Additionally, the legislature appropriated $145 million in additional funding last year.[6] In the FY 2009 budget adjustments signed into law on January 31, 2009, the legislature cut $133 million from education, which translates to only 3.2% of its General Fund budget.

It is important to remember that the State’s General Fund counterbalanced the loss of this revenue stream, ensuring no school district fell below the base funding level. The business community supports a strong educational system. High property taxes, however, detract from the ability to create wealth and employment for Arizona.

Property Tax Differences for Business and Homeowners

In Arizona, property is divided up into nine classes. A property’s valuation will vary depending on its classification,.

Owner-occupied homes are listed in Class 3 and assessed at 10 percent of full cash value (market value). Business property, however, is placed in Class 1 and subject to 22 percent of full cash value.[7]That means if a home and business have the same market value, say $200,000,[8] the business will pay primary tax on $44,000 while the home will pay tax on only $20,000 worth of value.

A further distortion comes in the form of the Homeowner’s Rebate. In 2006, the State covered 36 percent of homeowners’ primary school district tax rate. In Phoenix Union School District the primary property tax rate for a business was 9.76 cents per $100 valuation. The primary tax rate for a home, on the other hand, was 7.29 cents per $100 valuation. By applying those rates to the above valuations, we find a tax bill of $4,294 for the business and $1,458 for the home —a difference of $2,836.[9]

The State Equalization Property Tax portion of these two tax bills is similarly affected. Applying the State Equalization rate of $0.33 cents per $100 valuation to this example results in a $145 tax for business owner and a $66 tax for the homeowner —120 percent less.

Many businesses, however, own property worth more than $200,000. Perhaps a more realistic example is that of a commercial development valued at $3.9 million in Tempe. The State Equalization Tax part of the owner’s property tax bill would come to over $15,000.[10]

Competitive Arizona

High property taxes are particularly damaging. A growing body of research has found property taxes, because they must be paid regardless of a company's profitability, negatively impact business start-ups.[11]According to the Minnesota Taxpayers Association and the Arizona Tax Research Association, Arizona ranked 5thhighest in the nation for industrial property taxes payable in 2007.[12]Furthermore, business property in Arizona suffers much higher taxes than neighboring states.

To remain a competitive and attractive location for business, to preserve and create more jobs, and to increase individual incomes, Arizona needs to eliminate the state equalization property tax.

To Critics of the Repeal

Some worry repealing the statewide property tax would unfairly benefit big business. What it would actually do is benefit everyone. According to the Arizona Department of Commerce, property-intensive industries employ over 20 percent of the civilian labor force.[13]Lower property taxes would provide companies with additional financial resources to stave off job loss in the short term and support higher wages and expansion in the long term. The ongoing result would be the creation of more jobs to keep Arizona’s economy healthy. Lowering the cost of business in Arizona by cutting property taxes will benefit the future of all residents.

Another criticism of the repeal focuses on the state’s looming budget deficit, projected to reach $3 billion for fiscal year 2010. Opponents question how the legislature can contemplate eliminating the State Equalization Property Tax when revenue is coming in below expectations?

There are a few problems with this argument. First, if the State Equalization tax had been collected in fiscal year 2009, it would have added approximately $250 million in revenue, leaving a deficit of at least $1.35 billion.[14]This suggests the Arizona budget problem lies with too much spending and an antiquated tax system that does not promote investment, capital formation, and job creation.

Second, while sales and income tax collections are down approximately 11 percent from last year, the corporate income tax is down 24.6 percent.[15]Simple economic rationale affirms that increasing taxes on homeowners and business by $250 million is not the way to grow an economy that is in crisis. When business suffers during an economic downturn workers suffer. Now is the time to aid in the sustainability and development of the private sector.

Position

In a globalized economy, Arizona can no longer set fiscal policy as if it were in a vacuum. Companies and individual entrepreneurs are watching to see what Arizona does in comparison to other states and countries. Then, they will react accordingly.

To make sure they react in a positive way, the Arizona Chamber of Commerce and Industry supports the permanent elimination of the State Equalization Property Tax Rate. Now is the time for Arizona to position itself for economic growth and job creation. The repeal is a critical and important step as Arizona looks to improve its competitiveness.

[1] Joint Legislative Budget Committee, “Fiscal Impact of Statutory Tax Changes,” September 20, 2007,http://www.azleg.gov/jlbc/taxchanges07.pdf
[2] Arizona State Constitution, Article XI Section 1,http://www.azleg.gov/FormatDocument.asp?inDoc=/const/11/1.htm
[3] In addition to the State Equalization Property Tax, which is actually collected by the counties, revenue from the Qualifying Tax Rate and Basic State Aid from the General Fund is used to guarantee funding levels. If a district collects enough money on its own to meet the equalization base level, then the State does not provide any funds.
[4] Joint Legislative Budget Committee, “State of Arizona 2006 Tax Handbook,” September 12, 2006, p 82,http://www.azleg.gov/jlbc/06taxbook/06taxbk.pdf
[5]Maricopa County Department of Finance, “Tax Rate 2001-2006,”http://www.maricopa.gov/Finance/tax_pub.aspx
[6] Joint Legislative Budget Committee, “FY2009 Appropriations Report,” August 2008,http://www.azleg.gov/jlbc/09app/apprpttoc.pdf.
[7] For Tax Year 2007; the percent will drop .5 percent each year until it is reduced to 20 percent for business in 2015
[8] The Arizona State University Real Estate Center records the median sale price for a single family home in Greater Phoenix between 2004 and 2007 at $255,000. For more information seehttp://www.poly.asu.edu/realty/marketupdate/sales/Annual%20Sales.xls.
[9] For a full explanation see the Arizona Tax Research Association’s “An Explanation of Property Tax,” 2007,http://www.maricopa.gov/Finance/tax_pub.aspx
[10] EJM Developers, Co., “Good Cents Presentation,” January 16, 2008
[11] For more seeTimothy J. Bartik (1989). “Small Business Start-Ups in the United States: Estimates of the Effects of Characteristics of States,”Southern Economic Journal, pp. 1004-1018; Stephen T. Mark, Therese J. McGuire and Leslie E. Papke (2000). “The Influence of Taxes on Employment and Population Growth: Evidence from the Washington, D.C. Metropolitan Area,”National Tax Journal,Volume 53, pp. 105-123; Sanjay Gupta and Mary Ann Hofmann (2003). “The Effect of State Income Tax Apportionment and Tax Incentives on New Capital Expenditures,”The Journal of the American Taxation Association,Supplement 2003, pp. 1-25.
[12]Minnesota Taxpayers Association, Arizona Tax Research Association, “Residential Property Tax Rankings vs. Industrial Property Tax Rankings,” March 3, 2009
[13] Arizona Department of Commerce – Research Administration, “State of Arizona Labor Force and Non-Farm Employment,” 2007,http://www.workforce.az.gov/admin/uploadedPublications/1970_aznaics01-06.pdf
[14] Joint Legislative Budget Committee “Joint Caucus Budget Update: FY 2009 and FY 2010 Revenues and Budget Shortfall Estimates,” January 14, 2009,http://www.azleg.gov/jlbc/JointCaucusBudgetUpdate 011409.pdf.
[15] Joint Legislative Budget Committee, “2009 Revenue Update,” February 12, 2009http://www.azleg.gov/ jlbc/09janrevupdate.pdf.

More Taxes Means Less Growth

AZHouseRepublicans@gmail.com — 2009-04-06T15:27:22-07:00

Background

In 2006, the Arizona Legislature and Governor were faced with extraordinary uncertainty in the property tax system. Property valuations in many counties skyrocketed, forcing county assessors to increase values on some homeowners up to 60 percent. Angry citizens began circulating initiatives to roll back the valuation increases and cap overall property taxes.

The Legislature and Governor responded by reducing its property tax rate while also prohibiting local governments from increasing primary property taxes. In addition, the Legislature referred Proposition 101 to the 2006 general election ballot to ensure that the constitutional levy limits of counties, cities and community colleges would limit future primary property taxes to 2 percent plus growth.

Regrettably, the state property tax relief was made temporary in last minute negotiations with Governor Napolitano. Unless the Legislature takes further action, the state equalization tax rate will return to tax bills this year, resulting in a $247 million tax increase.

Arizona Tax Research Association’s (ATRA’s) Recommendation:

Clearly, the environment that led to the reduction in property taxes in 2006 has changed. Residential property valuations are decreasing substantially and home foreclosures are at record levels. Moreover, theArizonaeconomy continues to contract and businesses shed workers to try to stay afloat. Arizona’s unemployment rate is up to 7 percent and more than 155,000 Arizonans have lost their jobs over the last year.

ATRA recognizes that the depth of Arizona’s budget crisis leaves very few good options to balance the FY 2010 budget. The federal stimulus money provides some short term relief and a potential bridge to better economic times. However, a statewide property tax increase this year will only serve to dampen and delay any potential economic recovery.

Study after study has demonstrated that Arizona’s tax system discourages business location and expansion in the state. In particular, Arizona’s high business property taxes (ranked 5th highest nationally) are a major impediment to economic growth. As the attached table reflects, whileArizonabusinesses account for only 16 percent of the property tax base, they will pay 33 percent of the $247 million tax increase.

Simply put, ATRA believes that a major tax increase in the area of our tax system that is already a major impediment to economic growth is the worst possible option for balancing the FY 2010 budget.

Legislative Leadership Discusses Fiscal Crisis

AZHouseRepublicans@gmail.com — 2009-04-06T15:27:07-07:00

Speaker Adams and President Burns discuss Arizona’s historical fiscal crisis and the best way we can get out of it.