As one of the longest legislative sessions in Arizona history comes to a close, we come to the customary conclusion that no one is totally happy with the results. That is to be expected. No individual or group of individuals should expect to get all they want.
However, this session fell considerably short of conservative goals in several areas. Most prominent among these were election integrity and balance of power. Balloting irregularities and dictatorial executives are anathema to good governance.
Still, we did not do so badly considering the current composition of our legislature. Hopefully, that composition may be improved during the next election cycle.
Two areas in which we did better than many had expected were the budget and tax reform. But these are precisely the two areas in which we are getting tremendous pushback from organizations that support unionism, socialism, and radicalism (please excuse the redundancy).
One major radical group is Save Our Schools Arizona. They are already calling for a citizen’s initiative to undermine the hard-earned progress we made in the areas of budgeting and taxation.
In fact, Save Our Schools AZ, in their June 28 Legislative Report made the following outrageous, irresponsible, and patently false statements:
“The Bad: House lawmakers passed a K-12 budget bill packed with myriad attacks on schools and teachers.” And…
“The Brutally Awful: Both the House and Senate passed identical bills pushing Arizona’s largest tax cut in history into law”.
Let us evaluate the second claim first. It should be pointed out that whenever these radical organizations bitch and moan about “tax cuts” they are bitching and moaning about “tax cuts for the rich”. They don’t bitch and moan about the portion of the tax relief that helps low- and middle-class taxpayers. With that in mind let us look at the overall taxation of the rich, to determine whether this is a giveaway to the wealthiest among us, or simply a much-needed tax relief to prevent job providers from fleeing Arizona.
Marginal income tax rate paid by the wealthiest Arizonans:
Before Prop 208
4.5%
After Prop 208
8.0% (4.5% + 3.5%)
After Tax Relief
6.0% (2.5% + 3.5%)
Can someone, with a straight face, explain how going from a 4.5% tax rate to a 6.0% tax rate constitute a “tax cut”? Tax relief would be a much better name for it.
It should also be noted that there is nothing in the omnibus tax relief tax relief bill (SB1828), or in any of the budget reconciliation bills to remotely suggest that the Education industry will not get their 3.5%. This brings us to addressing the other claim made by the Save Our Schools cabal.
The only way that a thinking person can agree with the SOS’s claim that the legislature gave us a “K-12 budget bill packed with myriad attacks on schools and teachers” is to conclude that a whopping 24% increase in funding constitutes “myriad attacks”. Let us look at some numbers taken from the JLBC’s and the Governor’s websites:
FISCAL YEAR
TOTAL BUDGET
EDUCATION BUDGET
2021
$11.5 BILLION
$6.7 BILLION ($5.0 B K-12 + $1.7 B HIGHER ED)
2022
$12.8 BILLION
$8.2 BILLION ($6.2 b K-12 + $2.0 B HIGHER ED)
While the overall budget went up by a relatively modest 11%, the education budget increased by 22%, and the K-12 portion increased by 24%.
Under this new budget, the portion allocated to education is 64%, leaving only 36% for healthcare, law enforcement, border security, street repairs, infrastructure, etc.
The SOS and other groups that claim to support students should be praising our legislature and thanking them for their generosity, instead of plotting to undermine their work via mob rule.
Gov. Doug Ducey grew frustrated in May with the legislature’s slow pace of action on the Fiscal Year 2022 budget packet. So Ducey thought he would send the state’s 90 lawmakers a message by vetoing 22 bills, several which had passed with bipartisan support.
The vetoes did little to motivate either chamber to action and it would take more than one month before all 11 budget bills finally passed, and even then several bills were amended from what Ducey’s staff and legislative budget negotiators wanted.
But Ducey’s vetoes were not forgotten by many legislators. The Senate passed reintroduced versions of the 22 vetoed bills but was motivated enough to symbolically override one of the governor’s 22 snubs, something no other Arizona governor had faced in nearly 30 years.
The House did not follow the Senate’s suit, choosing instead to pass 20 of the Senate’s reintroduced bills. As of July 2, the governor had signed 10 of the reintroduced bills and the other 10 were transmitted to Ducey by the Senate prior to Sine Die on June 30.
Under current legislative rules, Ducey must act on the bills on his desk within 10 days after Sine Die of the bills automatically become law. The remaining two bills passed by the Senate died in the House.
The 10 bills Ducey has already signed:
SB1830 authorizes the creation of an individual and corporate state tax credit for the donation of real property to a school district of charter school. It passed with bipartisan support
SB1841 requires the Department of Law (the Arizona Attorney General’s Office) to review a federal executive order for constitutionality if requested by any member of the Legislature
SB1833 addresses proficiency testing by the Arizona Department of Health Services (DHS) of third-party marijuana laboratories and marijuana testing facilities
SB1834 allows DHS to conduct unannounced inspections of a medical marijuana dispensary
SB1835 requires that an election challenger or party representative must be a resident of Arizona and a registered voter of the state
SB1831 mandates that the State Registrar provide a person a copy of his or her original birth certificate sealed due to adoption if the person was born before June 20, 1968
SB1832 modifies Arizona’s DUI laws and requires traffic survival instruction courses to include information about aggressive driving. Such instruction is to be completed in person unless the Governor declares a state of emergency
SB1838 replaces the term “product of human conception” with “unborn child”
SB1839 outlines changes to Arizona Psychiatric Security Review Board
SB1843 changes the classifications of excessive speed and the statute related to waste of finite resources
The bills on Ducey’s desk:
SB1844 modifies the maximum Arizona adjusted gross income subtraction for college savings plan contributions authorized by section 529 of the Internal Revenue Code and allows subtraction of Achieving a Better Life Experience (ABLE) account contributions
SB1848 requires the Arizona Department of Housing to provide emergency shelter beds in western Maricopa County for homeless persons who are at least 55 years old
SB1846 exempts containers of spirituous liquor from prescribed labeling requirements under specified delivery conditions
SB1849 makes some changes to health and medical services offered to female inmates and allows a prisoner is to receive a certificate upon successful completion of training programs to work in a specific field or trade
SB1847 mandates DHS to provide grant monies from the Medical Marijuana Fund for research on the correlation of marijuana use and mental illness and requires DHS to develop a warning label to be affixed to the packaging of marijuana
SB1842 addresses the security, packaging, and labeling of marijuana and marijuana products
SB1845 requires the Department of Economic Security to implement a Produce Incentive Program
SB1850 contains technical corrections relating to multiple, defective, and conflicting statutory text
SB1851 outlines data required for the Arizona State Hospital financial and programmatic report, and establishes the Joint Legislative Psychiatric Hospital Review Council
SB1836 modifies sex offender registration requirements
HB2905 specifies that a county recorder or other election officer may not deliver or mail an early ballot to a person who has not requested an early ballot for that election.
HB2906 requires the certified public accountant (CPA) or auditor to present audit results to certain members within 90 days after a statutory audit and outlines requirements for training of certain employees (prohibits Critical Race Theory-based material/curriculum).
The other vetoed bills:
SB1837 would have banned a county recorder or other election officer from delivering or mailing an early ballot for an election to a person who did not requested an early ballot for that election
SB1840 would have required in certain instances that a certified public accountant or auditor present audit results within 90 days after a statutory audit, and it outlined requirements for employee training
One thing is certain about the landscape of Arizona politics – it will look much different after the 2022 general election due to a guaranteed change of governor, secretary of state, attorney general, and state treasurer.
There will also be several changes in the state legislature in 2022 as more lawmakers announce runs for state office, including Sen. David Livingston (R-LD22) who announced his candidacy last week for treasurer; Rep. Aaron Lieberman (D-LD27) who announced he is running for governor; and Rep. Shawnna Bolick (R-LD20) who has kicked off her campaign for secretary of state.
Bolick is seeking the Republican nomination against Sen. Michelle Ugenti-Rita (R-LD23) and Rep. Mark Finchem (R-LD11) who previously kicked off campaigns for secretary of state to serve as Arizona’s top elections official and the first in line to succeed the governor in the event of death, resignation, or removal from office.
Other announced Republican candidates for secretary of state include Beau Lane, Remo Paul, and Wade Wilson. The Republican primary winner will likely take on either Rep. Reginald Bolding (D-LD27) or former Maricopa County Recorder Adrian Fontes, both of whom publicly announced their candidacies in June. One other Democrat, Dennis Florian, is also running.
Lieberman hopes to move on from his seat in the House to become Arizona’s next governor. He will go up against current Secretary of State Katie Hobbs and former Nogales Mayor Marco Lopez Jr. in the primary, along with fellow Democrats Peggy Betzer, Steven Noon Jr., and Trista DiGenova-Chang.
The winner of the Democrats’ primary will take on the Republican nominee from a growing candidate list which now includes Steven Gaynor and former Rep. Matt Salmon, both of whom recently threw their hats in the ring.
Previously announced Republican candidates for governor include current State Treasurer Kimberly Yee, Board of Regents Secretary Karrin Taylor Robson, and former Phoenix-area news anchor Kari Lake. They are joined by Ameer El Bey, Kelly Garett, David Hoffman, Bryan Masche, Callie Morgan, Michael Pavlock Jr., Julian Tatka, and Paola Tulliani.
Four Libertarians -Robert Baxter, Barry Hess, Bill Moritzky, and Steve Remus- have also filed a statement of interest for the governorship.
With Yee not running again for state treasurer, Livingston is currently the only candidate who has filed a Statement of Interest for the office with the secretary of state.
But it is not only state races that are garnering lots of attention. Many eyes are on the U.S. Senate seat currently held by Mark Kelly, a Democrat.
Kelly is expected retain his party’s nomination but whose name appears on the ballot for the Republican Party will be heavily contested, not only by Brnovich but also corporate executive Jim Lamon and retired Arizona Adjutant General Michael McGuire. In addition, Blake Masters -president of the Thiel Foundation- is rumored to be announcing his candidacy to challenge Kelly later this week.
Other Republicans already vying for the nomination are Wendy Acuna, Craig Brittain, David Buechel, Dan Butierez Sr., Ronald Coale, Eric Corbett, Mark Fisher, Kelly Garett, Vlad Hermann, Josh McElroy, Rob Paveza, Thomas Tripp, and Chad Yosick.
With Brnovich running for Congress, Andrew Gould recently resigned his seat on the Arizona Supreme Court to seek the Republican nomination. Gould will likely face Lacy Cooper and Tiffany Shedd in their party’s primary.
For the Democrat Party, former Arizona Corporation Commissioner Kris Mayes announced her candidacy for attorney general last month. She is expected to be joined in the primary by January Contreras and Diego Rodriguez. One Libertarian, Michael Kielsky, is also running for attorney general.
There are also several current state representatives who will be leaving the legislature to make runs for Congress in 2022. They include Walt Blackman (R-LD6) who is running for CD1 and Sen. Kirsten Engel (D-LD10) who is running against Rep. Randy Friese (D-LD9) for CD2.
Tucked here and there among the $12.8 billion budget package signed into law last week by Gov. Doug Ducey are numerous water-related funding opportunities for rural counties across Arizona.
Among the budget items in SB1823, the general appropriations bill, are allocations of $3 million for water project assistance grants to cities and towns that provide water in Navajo and Apache counties. Another $2 million of water project assistance grants are available to irrigation districts in Cochise and Graham counties.
Those funds are in addition to $160 million moved from the state’s general fund on June 30 to the Drought Mitigation Revolving Fund. Of that, up to $10 million may be used for grants which facilitate the forbearance of water deliveries by June 30, 2025, while another $10 million may be used for Arizona State Land Department grants related to water use.
Ducey also signed into law changes to Arizona’s tax code which allow water utilities regulated by the Arizona Corporation Commission (ACC) to deduct contributions toward construction from their Arizona gross annual income. This can be particularly beneficial for companies which serve smaller communities where it can be difficult to spread out the cost of construction projects.
In addition, the Legislature passed a bill sponsored by Rep. Gail Griffin (R-LD14) to provide $40 million for the Water Supply Development Fund for assistance to water providers for improvements to water infrastructure and projects located in rural communities.
The ACC is encouraging owners and operators of small water utility companies which are regulated by the Commission to take advantage of the funding, which can go as high as $1 million per project, to improve their water systems and benefit customers. There is also an option of a $100,000 grant which does not require repayment.
Eligible water utility companies must serve at least 15 customers or at least 25 people for at least 60 days of the year, be located outside of an active management area, and be within a county with a population of less than 1.5 million people. The funding can be used for myriad purposes, including acquiring water or water rights; purchasing or refinancing debt related to water supply development projects; conveying, storing, or recovering water; reclaiming or reusing water; capturing or controlling stormwater; and replenishing groundwater.
Utilities can apply for the WSD Fund loans or grants to the Arizona Water Finance Authority.
“I encourage every regulated water utility that qualifies for these funds to take advantage of them as expediently as possible for the benefit of their customers,” ACC chair Lea Marquez Peterson said last week.
House Speaker Rusty Bowers (R-LD25) acknowledged the importance of the water funding allocations in a post-budget signing statement, calling the funding for infrastructure projects a “key to securing Arizona’s future, and one of our highest priorities.”
The Biden/Harris administration is ignoring established budget tradition in their determination to spend yet more money.
Since the Reagan era, each federal budget has included a list of achievable spending cuts. The final Obama/Biden budget boasted of their averaging 140 cuts, saving $22 billion, yearly. Then-VP Biden headed up these cost cutting efforts as he did the spending reductions in the 2011 Budget Control Act.
Obama praised Biden‘s leadership in the Campaign to Cut Waste, calling him “the right man to lead it because nobody messes with Sheriff Joe.”
So Biden was justified in campaigning on his record of cost-cutting, which he did (although overall spending never fell during his tenure). But, as we have seen on almost every front, the rhetoric of candidate Biden meant nothing.
His initial budget was the first in 40 years to not include a section on savings. Instead, he withdrew President Trump’s final 73 rescissions, which would have saved taxpayers $24.4 billion, including several, such as the Commission on Fine Arts and the Presidio Trust, that had been included in earlier Obama/Biden reductions. His address to Congress in April in lieu of the SOTU contained no mention of waste reduction, nor has any other communication so far.
The contrast is striking. In 2011, President Obama proposed a $4 trillion deficit reduction over 12 years. We now know he fell far short of the mark, yet 10 years later, President Biden proposed a $14.5 trillion increase in deficits over 10 years. Success seems quite probable this time.
What’s going on here? Biden’s inference that there is no waste available in federal spending is laughable. State and local governments are awash in newfound largess. Unemployed beneficiaries have received so much compensation that millions have understandably quit their jobs.
Americans in no financial stress, nursing home residents and dead people by the millions have received COVID stimulus checks. Meanwhile, the Department of Education, an inconsequential agency that has overseen the decline of American education at all levels despite a massive funding surge, was given a $67 billion boost.
The tsunami of spending is relentless. Our national debt has now reached $28 trillion, including a 30 percent increase from spending on the Covid shutdowns alone. Federal spending this fiscal year is about $8 trillion, fully half of which will be put on the tab.
Biden’s next budget is $6 trillion, plus $6 trillion or so of additional spending on anticipated campaign promises. If Biden’s budget plan is adopted, the projected national debt would be $44,800,000,000 by 2031. Moreover, the current value of obligations to finance legal entitlement programs is $132 trillion more.
We are clearly on an unsustainable course. Easy money and goosing the economy with government spending can only take us so far. Eventually, our luck will run out when interest rates return to normal, creditors run out of confidence, inflation and lack of productivity gains take their toll or all of the above.
Technology may help some to delay the deterioration of our standard of living. But our descendants will be far worse off and America will be permanently damaged from our foolish selfishness.
Yet there is a preternatural calmness in Washington circles over the consequences of pushing massive debt out to future generations. When the ruling Left discusses their multi-trillion dollar spending proposals, they typically don’t bother to address the revenue problem. The fact that they are politically popular (and Biden’s “free” spending proposals are) is rationale enough in Dem World.
The spenders act as if spending itself is a social good. Deeply in debt, they spend for unnecessary frills like taxpayer-supplied benefits for illegal immigrants and middle class social programs.
They profess to believe that money will always be available so long as government can figuratively print more, but that is patently ludicrous. More likely, they just don’t care.
These are people who fervently believe in the power of Big Government to make life better, the overwhelming evidence to the contrary notwithstanding. The more money that is spent on anything, the larger their constituent base grows. As in the border crisis, the chance to maintain power drives policy.
Literally nothing else matters.
Dr. Thomas Patterson, former Chairman of the Goldwater Institute, is a retired emergency physician. He served as an Arizona State senator for 10 years in the 1990s, and as Majority Leader from 93-96. He is the author of Arizona’s original charter schools bill.
