by Daniel Stefanski | Feb 26, 2024 | News
By Daniel Stefanski |
Arizona’s Attorney General is taking the Internal Revenue Service to court.
Last week, Democrat Attorney General Kris Mayes issued a press release to announce that “the State of Arizona has sued the IRS to prevent it from taxing the state-issued Arizona Families Tax Rebate.”
Mayes’ lawsuit was filed in the U.S. District Court of Arizona.
The legal issue at hand stems from the Arizona Legislature’s May 2023 passage of a “General Welfare Income Tax Rebate to offer financial relief to eligible taxpayers.” Few – if anyone – in the state expected this rebate to be taxable by the federal government, but that all changed earlier this year when a notice came from the IRS. The Arizona Attorney General’s Office confirmed that “the IRS did not confirm its decision in writing until late last week.”
In a statement that accompanied the release, Mayes said, “This lawsuit is about standing up for Arizona taxpayers. The federal government’s decision to tax these rebates is unfair and unlawful – and I will do everything I can to ensure the tax relief provided to Arizonans by their state government remains in the pockets of Arizona taxpayers, as intended.”
Mayes had previously sent a letter to the IRS Commissioner over the issue, arguing that “the full Tax Rebate should be excludable from federal tax under the general welfare exclusion,” and that “at a minimum, the Tax Rebate should be excluded from federal tax to the extent it does not exceed state taxes that were actually paid and that were not deducted from federal income.”
According to the State Attorney General’s Office, the legal challenge makes the following allegations:
- Unlawful Taxation: The IRS’s decision to tax the rebates lacks legal basis and contradicts prior IRS guidance and precedents.
- Arbitrary and Discriminatory: The decision by the IRS is arbitrary, capricious, and unfairly targets Arizona taxpayers.
- Economic Impact and Violation of Taxpayers’ Rights: Taxing these rebates affects not only the individual taxpayers but also the broader economic well-being of Arizona, reducing the disposable income of taxpayers and state sales tax revenue.
Mayes’ public involvement in the matter over the IRS taxing these rebates appears to have followed that of Arizona Senate President Warren Petersen, who, in January, shared that he was “working diligently to come to a resolution that will protect the more than 700,000 recipients from having to give the federal government a portion of [the rebate] this tax season.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Feb 26, 2024 | Education, News
By Daniel Stefanski |
A bill to help educate Arizona students about the history of communism is one step closer to the Governor’s desk.
On Thursday, the Arizona House of Representatives passed HB 2629, which “establishes November 7 of each year as Victims of Communism Day and requires the State Board of Education to create a list of recommended resources for mandatory instruction on the topic in certain public school courses” – according to the chamber. The proposal was sponsored by Speaker Ben Toma and received a vote of 33-26 (with one seat vacant).
In a statement, Toma said, “Teaching Arizona students about the evils of communism shouldn’t be a partisan issue, yet here we are. Thankfully, Republicans get it. As someone who lived in communist Romania, I can attest that Marxist ideology has left a lasting scar on our world. For more than 100 years and over 100 million lives lost, the legacy of communism is death, oppression, deprivation, economic suffering, and families being torn apart. It’s important to educate about this dark history, to ensure that the atrocities of communism are never forgotten, and future generations can learn from those who suffered in the past and gain a deeper appreciation for the democratic principles that underpin our free society.”
According to the State House of Representatives, if the bill was enacted, the “State Board of Education (SBE) would be tasked with developing a list of recommended resources on the history of communism that align with academic standards in statute. Starting in the 2024-2025 school year, high school taking American government courses will have at least 45 minutes of classroom instruction on the history of global communist regimes, encompassing figures such as Mao Zedong, Joseph Stalin, Fidel Castro, Vladimir Lenin, Pol Pot, and Nicolas Maduro. Students would learn about how victims suffered under such regimes, through poverty, starvation, forced migration, lethal violence, and the suppression of speech.”
Only two House Democrats supported the proposal on the floor, which was something that Representative Quang Nguyen, the bill’s cosponsor, highlighted. Nguyen stated, “I think if my colleagues on the other side of the aisle grew up under a communist regime, as Ben and I both did, this vote would have been unanimous. Opposing the education of Arizona students on the history of communism and those who have suffered from it is an extreme and shameful position that’s hard for Democrats to defend. And it’s certainly far from where most Arizona parents stand.”
On the Arizona Legislature’s Request To Speak system, representatives from the Arizona Education Association and Save Our Schools Arizona, signed in opposition to the bill.
Last month, the legislation passed the House Judiciary Committee with a 6-3 vote. All Republicans voted in favor, and all Democrats voted to oppose.
HB 2629 now heads to the Arizona Senate for consideration.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Feb 26, 2024 | News
By Daniel Stefanski |
Arizona voters may have the opportunity to help crack down on illegal immigration if the state legislature refers a new measure to the ballot.
Last week, the House Appropriations Committee passed HCR 2060, which was sponsored by Speaker Ben Toma. The proposal would “submit a proposition to the voters relating to employment and the use of the E-Verify program,” according to the overview provided by the State House.
In a statement accompanying the announcement of this introduction, Speaker Toma said, “We need to ensure illegal aliens don’t stay in Arizona to illegally obtain work and free benefits. The invasion of illegals into our country is a cultural and financial catastrophe! It is incumbent upon Arizona to do its part to ensure that if you break our laws, there are real consequences. We need to make sure illegal aliens can’t take advantage of hardworking American pocketbooks.”
On Monday, Toma held a press conference outside the state capitol with fellow members of the Legislature. Afterwards, he posted on the platform “X,” “Today, I announced my ballot referral to crack down on illegal immigration. The ‘Protecting Arizona Against Illegal Immigration Act’ expands the use of E-Verify and cuts off welfare programs to illegal aliens. If the Biden Administration won’t provide deterrents to stop the illegal invasion, Arizona will.”
According to Speaker Toma, HCR 2060 would accomplish the following:
- Make it a class 6 felony to knowingly assist illegal aliens in their efforts to break the law.
- Give Arizona’s law enforcement agencies greater resources to enforce immigration laws by instituting tough financial penalties for violations ($10,000 per offense).
- Require any state funded government agency or program which provides social welfare benefits to individuals to run them through E-Verify.
- Require businesses to run E-Verify when hiring independent contractors for the first time.
- Require any state agency that issues documentation, licensing, accreditation, or identification that is not immigration related to run an applicant through E-Verify.
Democrats on the committee expressed their strong opposition to the Speaker’s legislation. Representative Lorena Austin said, “I’m proud to serve with other members of the SB 1070 generation. We got involved, we got educated, we’re here now and we’re not going anywhere because we’re here to protect the rights of all Arizonans.”
Representative Marcelino Quiñonez added, “This sort of rhetoric, this sort of branding does not benefit Arizona. This is not who we are anymore.”
On the Arizona Legislature’s Request to Speak system, a representative from Heritage Action for America signed in support of Toma’s measure. Representatives from Chicanos Por La Causa, Living United for Change in Arizona, CHISPA Arizona, American Civil Liberties Union of AZ, State Conference NAACP, Rural Arizona Action, All Voting is Local Action, Planned Parenthood Advocates of Arizona, and WM E Morris Institute for Justice, indicated their opposition to HCR 2060.
HCR 2060 awaits final action in the State House of Representatives. If passed by both chambers, it would appear on the November General Election ballot.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Corinne Murdock | Feb 25, 2024 | News
By Corinne Murdock |
The city of Tempe houses the nation’s first planned car-free community: a rental neighborhood called “Culdesac.”
The community is a smaller version of the 15-minute city concept: a design concept in which residents can access daily essentials like work, stores, and schools within a walkable or bikeable 15-minute radius. Culdesac, located on Apache Boulevard, covers 17 acres of land and offers over 700 pet-friendly apartments for rent.
Since Culdesac residents would live without the ability to travel with ease outside the community, the real estate developer partnered with city government and vehicle rental companies to provide transport outside the community.
Valley Metro will provide free rides on the light rail. Lyft, the ridesharing service, will offer 15 percent off their rides. Envoy, an electric carsharing service, will offer reduced rentals at $5 an hour. The company will also have Bird scooters on site, and allocate over 1,000 bike parking spots.
Other partners include Lugg, an on-demand moving company; Lectric eBikes; Cocina Chiwas, a restaurant; and Archer’s Bikes, a bike sales company.
The community has a single central mailroom, one resident gym, one restaurant, one coffee shop, two boutique community shops, one grocery store, and a bike shop.
Many of the staffers behind Culdesac have roots with Opendoor Technologies, an online company based out of San Francisco, California that purchases, flips, and resells residential real estate.
The co-founder and CEO of Culdesac, Ryan Johnson, was on Opendoor’s founding team and their vice president of operations for four years. Additionally, Johnson previously worked for Bain Capital, New York Metropolitan Transportation Authority, and the Chilean government’s urban planning initiatives.
Other former Opendoor colleagues include Tom Barta, Culdesac’s engineering lead who built the software foundation for Opendoor home loans; Vanessa Valenzuela Erickson, Culdesac’s founding team member and advisor who was one of Opendoor’s managers, and formerly an employee for Teach for America and the Salt River Project; Megan Meyer Toolson, Culdesac’s president of sell direct and services who held the same role at Opendoor; and Evan Moore, Culdesac’s partner at Khosla Ventures who was Opendoor’s vice president of product and the co-founder and COO of Doordash.
Studio apartments start at $1,300 a month, while three-bedroom apartments start at $3,200 a month.
The real estate developer said that it also designed its buildings to mitigate the harsh desert heat and sun.
Though its first by design, Culdesac isn’t the first community to be car-free in the nation or in the state. One in Arizona is car-free, but not by choice: Supai, the capital of the Havasupai Indian Reservation located within the Grand Canyon, is a remote community accessible only by an eight-mile hike by foot or mule, or a 3,000-foot helicopter ride.
Several other communities have been car-free, for a variety of reasons: Bald Head Island in North Carolina, Colonial Williamsburg and Tangier Island in Virginia; Daufuskie Island in South Carolina; Fire Island and Governors Island in New York; Halibut Cove in Alaska; Mackinac Island in Michigan; and Santa Catalina Island in California.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
by Corinne Murdock | Feb 25, 2024 | Education, News
By Corinne Murdock |
Arizona’s public schools have over $1 billion in surplus, according to the Arizona Department of Education (ADE).
Tim McCain, chief financial officer for ADE, announced the surplus during last week’s meeting in the House Appropriations Subcommittee on State & Local Resources. According to McCain, the maintenance and operations (M&O) budget carry forward is now over $1 billion.
Additionally, the M&O budget carry forward has a generally positive trajectory, growing from $400 million in 2020 to over $1 billion this year. These budgetary increases carried forward function to raise schools’ budgets.
“Budget balance carry forward goes to the next year for their increase, so their budget will be increased by the amount that they carried forward to the next year,” said McCain. “[Schools] would be able to spend those monies in the future as they go forward.”
McCain also reported that the cash not committed to the M&O budget currently amounts to about $300 million, a decrease this year compared to last but an overall increase since 2020.
The school district fund balance increased from $3.5-$3.6 billion for all districts in 2017, to $6.4 billion for all districts in 2023. The percentage of revenue has remained in the 40-50 percent range since 2018.
McCain clarified that some of the funds within the latest balance consists of bond building funds, around $2 billion.
The school district M&O balance has continuously increased from $355 million in 2017 to $1.38 billion in 2023, with the percentage of revenue likewise increasing steadily from six percent in 2017 to 19 percent last year.
McCain explained that these factors contributing to the budgetary growth could be attributed to increased K-12 funding; districts mitigating risk due to inflation, minimum wage increases, current year funding, and drop in enrollment; the teacher shortage; and the lack of a budget balance carry forward cap. Prior to 2017, there was a four percent cap that incentivized a “use it or lose it” approach to budgeting.
Further, McCain said that the federal COVID-19 relief funds served as another factor contributing to budgetary growth. Arizona received over $4 billion in Elementary and Secondary School Emergency Relief (ESSER) funding. Over $277 million expired in September 2022, and over $1.1 billion expired last September. The remaining $2.5 billion are set to expire this September.
“The districts have been able to utilize ESSER funds where they would have normally utilized M&O funds for certain purposes, and be able to carry those funds over into the future,” said McCain.
Another budgetary growth factor according to McCain was the Classroom Site Fund expansion to include Student Support Services in 2022, and a $300-per-student increase in CSF funds.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
by Corinne Murdock | Feb 25, 2024 | News
By Corinne Murdock |
Tucson Mayor Regina Romero played host to President Joe Biden’s senior advisor last week to discuss public infrastructure.
Tom Perez, senior advisor and assistant to the President and director of the White House Office of Intergovernmental Affairs, visited the city of Tucson on Tuesday. Perez, the former chairman of the Democratic National Committee, visited as part of the Investing in America tour highlighting initiatives funded by the Bipartisan Infrastructure Law (BIL) and Inflation Reduction Act (IRA).
In a press conference, Perez said that the Biden administration prioritizes giving awards to those projects rooted in equity.
“There has never been in our lifetime a more robust investment in building America, building out our infrastructure, making sure in that process that we view everything through that equity lens, understanding that zip code will no longer determine destiny,” said Perez. “We have this opportunity folks, and we are not going to squander this opportunity to build an Arizona, and to build an America where everybody has access to good middle-class jobs, where high speed, affordable internet is a reality so that if you have a behavioral or mental health issue, you can do telemedicine.”
Among the initiatives for which Tucson received millions in federal funding under IRA and BIL was the 22nd Street Bridge revitalization, TARP Facility, Tucson Million Trees (TMT), and relinquishment of their water rights.
The Biden administration gave Tucson $25.9 million to build the 22nd Street Bridge. According to the Department of Transportation (DOT), it was the city’s focus on equity for the project that secured the funds.
Tucson also received a $5 million grant from the USDA last September for TMT. Despite the funding, TMT has fallen far short of its goal to plant one million trees by 2030. Only about 100,000 trees were planted as of last year.
However, Romero claimed in a one-on-one meeting with President Joe Biden earlier this month that TMT was on track.
Tucson also traded its water rights for $44 million in federal infrastructure funds last summer: over 110,000 acre-feet through 2025.
Perez also made a stop with another major Arizona city that has received millions in BIL and IRA funds.
Last Monday, Perez visited with Phoenix Mayor Kate Gallego to discuss the availability of funds to both public and private entities for “clean” energy initiatives, such as electric buses for schools or solar panels for churches.
Earlier this month, Perez and National Economic Advisor Lael Brainard met with county elected officials through the National Association of Counties Legislative Conference to discuss Biden’s Investing in America agenda. Santa Cruz County Supervisor Manuel Ruiz was among those elected officials to attend.
Per White House data on federal awards, the Biden administration has issued over 1,800 BIL discretionary and formula grants in Arizona. USDA data reflects that Arizona has requested over $2.1 billion in clean energy funding.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
