For the last three weeks the Arizona Legislature has spent more time not working on the state budget slated to start July 1 than they have spent working on it. But optimism is rising -particularly within the Republican caucus- that the impasse may be over.
Gov. Doug Ducey warned lawmakers at the end of May that he did not want to see any legislation hit his desk unless it was the 11 bills contained with the budget packet. He even vetoed 22 bills, all of which had Republican supports, to show he was serious.
On Monday, a number of people involved in the budget process signaled that compromises were being worked out to ensure 31 House and 16 Senate “aye” votes will be put forth for all 11 bills, or at least a significant number to get things moving forward.
According to Sen. Vince Leach, the proposed budget compromise provides money for education, public safety, road infrastructure, debt reduction, and “significant tax relief.” The first four of those items have been the key areas of disagreement, while the latter involves both tax cuts and a transition to a flat rate income tax.
Ducey also released a letter of support for a revised budget package which would now provide cities and towns with an 18 percent share of the state’s Urban Revenue Sharing Fund rather than 15 percent. The increased percentage is intended to cover $225 million in revenue municipalities were estimated to lose if Ducey’s proposed flat rate income tax is approved by lawmakers.
The transition to a flat tax would take place over a few years, and would limit the top rate at 4.5 percent, although Arizonans making less than $250,000 would have a rate of 2.5 percent.
Another compromise expected to be introduced would cap the amount of tax cuts next year at $1.3 billion unless certain revenue thresholds are hit. In that case, the tax cuts could go as high was $1.8 billion.
The Arizona Education Association has come out against the tax cuts and the flat tax. However, the Home Builders Association of Central Arizona threw its support behind Ducey’s efforts to reach a compromise on the budget package. According to a statement released Monday by HBACA, the budget “enhances Arizona’s economic environment, provides more resources to keep Arizona growing, and promotes housing affordability.”
The mayors who signed the letter to Ducey are from Avondale, Buckeye, Camp Verde, Chandler, El Mirage, Gila Bend, Gilbert, Glendale, Goodyear, Lake Havasu City, Kingman, Marana, Mesa, Payson, Peoria, Prescott, Sahuarita, Surprise, Winkenburg, Youngstown, and Yuma.
The failure of the Patriot Party of Arizona to properly circulate petitions in its effort to recall House Speaker Rusty Bowers is the latest example of how difficult it can be for the average citizen to comply with confusing laws written by legislators to protect themselves from recalls.
On Thursday, the Arizona Secretary of State’s Office (SOS) announced it would not count any of the estimated 24,500 signatures contained on 2,040 recall petitions submitted by the Patriot Party of Arizona. The reason given by the SOS is that the petitions sheets were not attached to a “time-and-date marked copy” of the recall application.
A recall petition states the reason a recall election is being sought against a current elected official. It also includes room for several registered voters within the jurisdiction of the elected official to affix their name, address, and signature.
The number of signatures needed to get a recall election on the ballot is determined by state statute; for Bowers’ recall organizers it was 22,311. But before any signatures can be gathered someone had to apply for a recall serial number by which all paperwork will be filed and tracked.
It is two other recall statutes which have tripped up at least two other recall efforts in recent years due to the fact the two statutes have to “taken together,” the Arizona Supreme Court ruled in 2019. Such an interpretation requires a “time-and-date marked copy” of the recall application with the official serial number to be “attached” to each petition sheet.
The Patriot Party of Arizona declined to comment on the SOS’s determination about the non-attached applications.
Bowers attracted the wrath of the Republican-spinoff group by not supporting 2020 election fraud claims and not pushing back against Gov. Doug Ducey’s handling of the COVID-19 pandemic. Public support for the recall effort came from well-known pro-Trump names, including attorney Sidney Powell, America Restored executive director Tomi Collins, and My Pillow CEO Mike Lindell.
For his part, Bowers (R-LD25) publicly stated this week he expected to stand later this year for a recall election. “I was gearing up to go through a recall,” he said.
The non-compliance by the Patriot Party of Arizona is somewhat similar to the situation Tanya Duarte found herself in when trying to recall then-Mayor Robert Uribe of Douglas in 2019. Duarte applied for a recall number and made dozens of copies of the time-date copy of the application, which were placed behind each petition on a clipboard.
This made the application readily available for anyone to read, Duarte later testified. The Douglas city clerk initially certified 668 petition signatures, more than enough to force Uribe to stand for election 10 months before the end of his term.
But Uribe’s wife -as a Douglas voter- challenged all of the signatures due to the lack of applications attached to the petitions.
Judge David Thorn of the Cochise County Superior Court heard the case and noted that lawmakers failed to include a description in the recall statutes for how the application copy is to be attached to the petition. He even pulled out an ordinary dictionary to review definitions of the word attached.
In the end Thorn ruled the common language definition requires the application copy to be affixed or adhered to the petition whether “it be tape, staple, glue” or some other manner to ensure the two documents are not easily separated.
Thorn also commented that the Legislature “gets to make laws, to make it more exacting” for average citizens to recall public officials.
The Arizona Supreme Court also tackled the recall process in 2019 after the Urban Phoenix Project political action committee (Committee) ran into the “attached” issue during its attempt to recall then-City Councilman Michael Nowakowski in 2018.
The group submitted petitions containing more than 2,300 signatures from which the city clerk deemed enough were valid to make Nowakowski stand for election again. But a voter of Nowakowski’s district challenged the city clerk’s decision, arguing in part that a copy of the application was not attached to any of the petitions.
A Maricopa County judge ruled the City Clerk should not have counted any of the petitions due to missing copies of the application. The case went to the Arizona Supreme Court where then-Chief Justice Scott Bales authored a unanimous opinion which acknowledged the effort it takes to collect so many signatures.
The opinion also noted the recall statutes can be confusing for most citizens. But the two separate statutes related to circulating petitions have to be read together in order for any signatures to be valid, Bales wrote.
“The time-and-date-marked copy of the application –unlike the petition sheets– both identifies the applicant (including any organization, certain officers, and contact information) and reflects that the application has in fact been filed. Requiring the attachment of a such a copy also helps ensure that signatures are not obtained before the application is filed,” consistent with state law, he wrote.
“Our state constitution guarantees voters the right to recall elected officers for whatever reasons they choose…That right, however, must be exercised pursuant to constitutional and statutory provisions,” Bales added.
In a very efficient use of 72 hours, the Arizona Legislature finished a special session called by Gov. Doug Ducey to approve a $100 million supplemental appropriation bill which will fund fire suppression and fire mitigation efforts across the state.
“This will help our brave firefighters, at-risk communities and so many Arizonans,” said Ducey, who is expected to sign the HB2001 on Friday. The bill passed with bipartisan support from 24 of 30 senators and 56 of 60 house members.
Much of the funds are earmarked for the Arizona Department of Forestry and Fire Management (DFFM) but millions will also be spent for inmate and non-inmate labor related to work crews from the Arizona Department of Corrections.
The legislation addresses targeted investments toward the labor and equipment needed for wildfire prevention and preparedness, as well as response and recovery operations. Some of the funding is also earmarked for economic assistance for those displaced by fires or post-fire floods.
Only minimal amendments were made to the proposed legislation which had been sent to lawmakers earlier this week with Ducey’s blessing. One amendment changed a job title while another set a $10 million cap for funds to be used as a last resort for private landowners who experience infrastructure damage related to a fire or post-fire flooding.
That reference to landowners triggered one of the biggest debates in the House after Rep. Andres Cano (D-LD3) sought to include $5 million dollars of “last resort” funds for small business owners, many of whom may suffer losses from wildfires but do not own the land on which their business operates.
Rep. Gail Griffin, who chairs the House Committee on Natural Resources, Energy, and Water, opposed the amendment even though she understood Cano’s concern. The problem, explained Griffin (R-LD14), is that a lot of effort was put into drafting the special session legislation and any extra items lawmakers want to fund should be addressed once back in regular session.
Cano’s amendment died on a voice vote. But he attempted to add the amendment back on via a motion once the main bill made it to the House floor. Cano’s effort failed, but it triggered a roll call vote by each representative.
It was revealed during the roll call that Rep. Travis Grantham (R-LD12) had been given permission by House Speaker Rusty Bowers to vote via text message because Grantham was in an aircraft at the time. A rules challenge was sustained which forced Bowers to disallow Grantham’s no vote on Cano’s motion. It also meant Grantham was unable to cast a vote for the fire suppression bill.
Arizona State Forester David Tenney, who is also DFFM’s director, warned lawmakers during a meeting Wednesday that the destructive Telegraph and Mescal wildfires near Globe are just a glimpse of what is expected to be a severe wildfire season in Arizona. He said last year more than 900,000 acres burned statewide; as of Thursday 300,000 acres have burned in 2021 with months of other fires expected.
One-quarter of the $100 million appropriation will serve a dual role: it will fund several ongoing fire industry positions in addition to 720 ADC inmates who will perform fire fuel or vegetation mitigation at sites throughout the state. Tenney says he hopes the crews can clear 20,000 acres annually.
In addition to Grantham, several lawmakers did not participate in the final vote on the fire bill even though remote “Zoom” voting is allowed. They were Rep. Joseph Chaplik (R-LD23) along with Sens. Lela Alston (D-LD24), Sally Ann Gonzales (D-LD3), Tyler Pace (R-LD25), and Kelly Townsend (R-LD16).
Those who voted against the bill were Sens. Michelle Ugenti-Rita (R-LD23) and Juan Mendez (D-LD26), as well as Reps. Melody Hernandez (D-LD26) and Athena Salman (D-LD26).
Up next for the legislature is trying to pass an 11-bill budget package which had the blessing from Ducey after it was announced Arizona had a nearly $2 billion surplus. The current fiscal year ends June 30 so no new budget would mean a partial state government shutdown.
There has been a stalemate in both chambers related to the three key points of the package: how much to allocate for new spending versus paying down debt, how much of the surplus to refund to taxpayers, and whether or not to transition Arizona to a flat-rate income tax.
To pass any of the 11 bills requires 31 votes in the House and 16 in the Senate. That happens to coincide with the number of Republicans in both chambers, but some members of that caucus have refused at different times to vote for the bills unless changes are made. Everyone is expected back to work Monday in hopes of resolving enough differences to secure the required votes.
Then attention will need to turn to 22 bills which Ducey vetoed when he grew frustrated with the lack of progress on the budget. The House and Senate have reintroduced all 22 bills but have not taken final action to reapprove them. There is also a chance that all or some of the governor’s vetoes could be the subject of a veto override vote.
The grand opening of a 60,000 square foot refrigerated warehouse in Nogales was used by Gov. Doug Ducey this week to draw attention to Arizona’s strong trade relationship with Mexico, the state’s top trading partner.
Ducey traveled to the Santa Cruz County border city Wednesday at the invitation of Jaime Chamberlain, president of Chamberlain Distributing which imports fruits and vegetables from the northern Mexico state of Sonora. The governor toured the facility and took part in an economic roundtable with local business and community leaders focused on Arizona’s economic relationship with Mexico.
I’m eager to see the success of Chamberlain Distribution’s St. James Cooler and the continued growth of Nogales. Grateful to all the businesses and everyone who makes Santa Cruz County a shining example of international commerce and trade! pic.twitter.com/RIkbaZLIqd
Nearly $16 billion in trade occurred between Arizona and Mexico in 2020, with more than $13 billion of that passing through the Nogales Port of Entry. And this month, the University of Arizona released its First Quarter 2021 AZMEX report of economic indicators showing Arizona exports into Mexico reached its highest level since mid-2019.
Ducey said commercial truck traffic into Arizona from Mexico increased by more than 2,500 vehicles in 2020 despite the COVID-19 pandemic which continues to restrict border crossings to essential traffic only. The new Chamberlain facility will help further Arizona’s relationship with Mexico and improve economic growth once the Biden Administration lifts cross-border travel restrictions, the governor said.
However, the UA AZMEX report also reveals the nearly $1.3 billion in fresh produce imports through Arizona’s ports of entry represented a nine percent decrease from the same period in 2020. And that lower supply will likely cause retail food prices to increase across the United States, according to Chamberlain.
Chamberlain noted the company’s new warehouse will help get produce into the United States faster and fresher, but farmers in Mexico are facing a variety of challenges that will boost production costs, something that will be passed along to consumers.
“The drought will curtail planting season and farmers will think twice what they’re able to plant and plant successfully,” Chamberlain explained, adding that higher production expenses for seeds and fuel are also driving up costs for farmers.
After a mini-Wildfire 101 course from the Arizona State Forester, 18 of the 19 members of legislature’s Joint Committee on Natural Resources, Energy, and Water voted in favor of Gov. Doug Ducey’s proposed $100 million fire suppression and mitigation legislation.
Next up for the bill during this Special Session is a quick trip through two Rules Committees on Thursday morning. That should be followed by the House and Senate convening to consider amendments to the two identical bills, SB1001 and HB2001, which are tracking in both chambers.
Wednesday’s hours-long meeting featured a questions and answers session with David Tenney, director of Arizona’s Department of Forestry and Fire Management (DFFM) on the same day that two ongoing destructive wildfires near Globe -the Telegraph and the Mescal- merged with nearly 150,000 acres burned.
Ducey called the Special Session for the sole purpose to pass a wildfire-related supplemental appropriations bill. The joint committee discussed many of the bill’s targeted investments for wildfire preparedness, response, and recovery, including $76 million toward fire suppression efforts, recovery efforts, mitigation of post-fire floods, economic assistance for those displaced by fires or post-fire floods, and assistance to landowners for emergency repairs from wildfire-related infrastructure damage.
There is also nearly $25 million appropriated in the bill for DFFM and the Arizona Department of Corrections (ADC) to partner on wildfire mitigation efforts such as removing hazardous vegetation and fire fuels. The funds include hiring 720 ADC inmates, working in 72 teams of 10 inmates, to target DFFM-designated areas across the state where mitigation is needed. The goal, said Tenney, is for the crews to cover 20,000 acres annually.
Among the questions Tenney was asked was whether Arizona should own a fleet of firefighting aircraft instead of contracting with providers. Tenney was also asked whether DFFM should purchase a handful of $500,000 firetrucks designed for off-road wilderness access that could be “borrowed” to smaller fire departments.
Tenney also noted that as of this week, Arizona’s 2021 fire season will have impacted nearly 300,000 acres. That puts the state of track for its worst fire season in history due to the combination of excessive heat in all 15 counties as well as drought conditions.
Some committee members tried to get Tenney to discuss whether Arizona’s increasingly larger wildfires are the result of climate change, but the director stuck to the purpose of the legislation -and the Special Session- which is to ensure funding for activities which can have an immediate affect on reducing fires or limiting the damage from fires.
The climate change comments received pushback from Sen. David Gowan (LD-14), who said no one is disputing there is climate change.
“Climate change happens every decade, happens every century, millennium, we have climate change,” he said.
Some Democrats questioned whether the Ducey-backed appropriations bill goes far enough as they preferred legislation addressing more than the immediate critical need. However, committee chairs Rep. Gail Griffin (R-LD14) and Sen. Sine Kerr (R-LD13) guided the discussion back onto the purpose of the legislation – to address the wildfire and post-fire flooding crisis facing Arizona now.
The only no vote was cast by Sen. Juan Mendez (D-LD26).
