By Jonathan Eberle |

A bill designed to direct more tax revenue toward Arizona’s K-12 classrooms has been vetoed by Governor Katie Hobbs, prompting criticism from Republican lawmakers who say the measure would have strengthened public education funding.

SB 1050, sponsored by Senator Vince Leach (R-LD17), sought to amend the Government Property Lease Excise Tax (GPLET) program by prohibiting the abatement of school district-designated tax revenues. Under current law, cities and towns can lease government-owned property to private developers with reduced tax obligations, an incentive intended to promote commercial development.

The bill would have excluded school-related tax revenues from such incentives, allowing those funds to flow directly to local school districts instead of being waived under development agreements.

“This was a missed opportunity by the Governor,” said Leach. “She says she supports education funding, but her veto suggests otherwise.”

In her veto letter, Governor Hobbs explained that SB 1050 could “stunt Arizona’s economic development” by weakening a tool used by local governments to attract private investment. The GPLET program, though controversial, has been credited with revitalizing parts of urban Arizona by lowering upfront development costs in exchange for long-term gains.

Arizona schools continue to face funding pressures despite recent increases to the state’s education budget. Republican lawmakers have often pushed for reallocating existing tax revenues, while Democrats have generally sought new funding sources or changes to the state’s tax structure.

SB 1050 passed both legislative chambers before being vetoed, signaling at least some bipartisan concern about the balance between development incentives and education funding.

Senator Leach and other supporters of the bill may pursue similar legislation in future sessions or attempt a veto override, although success would require significant bipartisan support. Meanwhile, the broader debate over how to equitably fund Arizona’s public schools is likely to continue.

“This is about priorities,” Leach said. “We should be making sure our tax dollars are going to classrooms, not corporate subsidies.”

The Governor’s office has not indicated whether alternative proposals to increase school funding through tax reforms are in the works.

Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.