by Terri Jo Neff | Jul 1, 2021 | News
By Terri Jo Neff |
On Wednesday, Gov. Doug Ducey signed what he called “a fiscally conservative, forward-looking budget” for Fiscal Year 2022, cutting taxes for all taxpayers for every Arizona taxpayer no matter what their income.
“While we’re giving money back to taxpayers, this budget makes responsible, targeted and substantial investments in the things that matter,” Ducey said. “Under this budget plan, Arizona is paying off more than $1 billion in debt, we’re helping to protect families with the most sweeping child care package in the nation, and we’re making record investments in K-12 and higher education, infrastructure, public health and public safety.”
Ducey received high marks for the budget from the Washington Post and the Wall Street Journal’s editorial board, particularly the transition of Arizona’s income tax system from a tiered rate to a 2.5 percent flat rate over a three-year period starting Jan. 1, 2022. There are also provisions in the budget for nearly $1 billion in debt payments, as well as another $1 billion to reduce Arizona’s pension liabilities.
Public safety was also a major part of the budget, with $1.5 billion allocated for things like border security and other critical safety investments such as body cameras, increased recruitment funding, and cybersecurity.
K-12 funding was another priority for Ducey, with more than $6 billion allocated, including $47.2 million to develop early literacy programs for children across the state, $30 million for school transportation, and $50 million in student disability aid. One K-12 education bill, HB2898, signed by Ducey makes it easier for families to utilize Empowerment Scholarship Accounts (ESAs) to help fund lower-income students who wish to attend private schools.
“Arizona’s budget puts students first,” Ducey said after signing HB2898. “Under this plan, we will continue to ensure K-12 students, teachers and schools have resources necessary to help Arizona kids excel in and out of the classroom.”
Ducey has several other bills on his desk which were transmitted this week by the Legislature. Many are do-overs of 22 bills which Ducey vetoed at the end of May in an effort to prod lawmakers to get to work on the budget package.
Although passage of the budget bills took longer than anyone expected in the Republican-controlled Legislature, Ducey’s comments Wednesday stayed focused on the final product, including more options for parents in need of childcare.
by Terri Jo Neff | Jul 1, 2021 | Education, News
By Terri Jo Neff |
The Democrats in the Arizona Legislature may have held firm on their complete opposition to the proposed K-12 budget bill, but all 47 Republicans worked through their differences in the House and Senate to get the multi-faceted House Bill 2898 to Gov. Doug Ducey’s desk Wednesday.
The major holdup with the 200-plus page HB2898 involved a Senate amendment which expanded eligibility for Empowerment Scholarship Accounts (ESAs) from about 250,000 students to more than 700,000. ESAs give credit to an eligible child for most of the government education funding that would have been paid to that student’s public or charter school.
Those funds can then be used toward expenses at private schools as well as other educational costs.
Most House Republicans supported the Senate’s amended version of the K-12 bill but opposition from Reps. Joel John (R-LD4), Michelle Udall (R-LD25), and Joanne Osborne (R-LD13) meant the House ended up approving a K-12 bill which differed from the Senate’s version.
The 16 Republican senators and 31 Republican representatives could pass any bills if they all vote together. But the differing positions on HB2898 required members of both chambers to negotiate a compromise. The result was changes to how soon certain students can qualify for an ESA, although the bill will not benefit another 450,000 students.
Rep. Bret Roberts (R-LD11) supported a larger ESA expansion in the Senate’s bill, but noted the final version still “gives parents more choices.” He added that it “brings the free market into the education system.” Meanwhile, Rep. Jake Hoffman (R-LD12) liked the “opportunities and power” the new legislation gives to parents.
Ducey signed HB2898 on Wednesday along with the 10 other bills which make up the $12.8 billion Fiscal Year 2022 budget package. The new fiscal year starts Thursday.
ESA eligibility was not the only compromise necessary to get HB2898 to Ducey’s desk. An amendment added to the bill with limited debate earlier this week mandated controversial standards for civics curriculum. It faced pushback from Sen. Paul Boyer (R-LD20). Without Boyer’s vote, the entire K-12 budget bill was in peril.
Another compromise led to removal of the last minute civics amendment and Boyer then voted for HB2898.
Other education-related bills were sent to Ducey on Wednesday, including HB2241 which requires information about the Holocaust and other genocides to be taught at least twice between grades 7 and 12. The bill passed both chambers with overwhelming bipartisan support.
The other bill, SB1572, involves early literacy policy at the State Board of Education and the Arizona Department of Education. It impacts dyslexia training and screening requirements, establishes a literacy endorsement for qualified teachers, creates an entry evaluation tool for kindergarten pupils with parental notification requirements, and mandates a K-3 Reading Program report.
by AZ Free News | Jul 1, 2021 | News
On Wednesday, a bill which revises state tax structure passed out of the Arizona House of Representatives on a bipartisan vote and is on its way to Gov. Doug Ducey’s desk. HB 2838, sponsored by Rep. Joseph Chaplik, has no fiscal impact on Arizona cities and towns.
Chaplik says the bill “protects small business from over taxation by the federal government, without impacting the state general fund.”
“Providing Arizona’s small businesses with more working capital and tax relief at this critical moment, without having a negative fiscal impact to the state, is responsible public policy,” said Chaplik.
The 2017 Federal Tax Cuts and Jobs Act (TCJA) placed a cap of $10,000 on the amount of state and local taxes (SALT) that an individual can deduct on their federal taxes. Experts say this hurts employers organized as S Corporations, partnerships and limited liability companies that pay taxes on business profits at the individual level. This has negatively impacted main street businesses by:
- Increasing federal taxes for main street employers.
- Putting main street employers at a disadvantage when compared with C corporations, which are not subject to the new SALT cap.
- Putting Arizona’s main street employers at a disadvantage when compared to businesses operating in states that have already adopted SALT parity reform.
Fifteen states have already adopted SALT parity legislation since 2017, including: Connecticut, Wisconsin, Oklahoma, Oregon, Louisiana, Rhode Island, New Jersey, and Maryland. SALT parity legislation is currently advancing in North Carolina, Pennsylvania, Michigan, Illinois, Colorado, Massachusetts, Ohio, and California.
On November 9, 2020, the Department of Treasury and the IRS announced proposed regulations supporting state enacted SALT reform: “The Department of Treasury and IRS are taking the necessary steps to provide fairness for America’s small businesses. These proposed regulations will offer clarity for individual owners of pass-through entities.”
The bill was amended in the Finance Committee to ensure that the mechanics of the legislation are consistent with Arizona law, and the Senate Floor Amendment to the Finance Committee amendment was the result of successful discussions with the Executive and the Arizona Department of Revenue. The amendment clarifies how partners and shareholders can opt out of the election, and changes the retroactivity date from January 1, 2018, to January 1, 2021. This is consistent with other states that have adopted SALT parity.
by AZ Free News | Jun 30, 2021 | News
Governor Doug Ducey ordered flags at all state buildings be lowered to half-staff on June 30, 2021, in honor of the 19 Granite Mountain Hotshots who lost their lives protecting fellow Arizonans from the Yarnell Hill Fire in 2013.
“Arizona lost 19 heroic firefighters eight years ago to one of the most devastating wildfires in state history,” said Ducey in a press release on Tuesday. “These brave men gave their all in defense of our communities, and their service remains among the greatest ever known to our state. We will never forget their sacrifice.”
“When the Yarnell Hill Fire struck, the Granite Mountain Hotshots defended Arizona communities against the flames without hesitation,” stated Ducey. “They didn’t shy away from their duties, and did everything they could to protect those in harm’s way. Today we remember the heroism of these firefighters, and send thoughts and prayers to their families, loved ones and the entire wildland fire community.”
by AZ Free News | Jun 30, 2021 | News
On Tuesday, Republicans were stunned to discover that a popular bill, SCR 1003, had opposition in the Senate. The bill, sponsored by Sen Warren Petersen, passed with the support of all Republican legislators through the Senate earlier in the session.
The bill was amended in the House and needed the nod of the Senate before heading to the governor. However, Sen. TJ Shope, who had previously supported the bill, is now saying he is opposed.
Because the bill deals with reining in the governor’s executive powers, Capitol insiders believe Shope’s opposition stems from his allegiance to the governor.
As amended the bill:
1. Authorizes the Governor to proclaim a state of emergency as provided by law.
2. Stipulates that a state of emergency, except for a state of war emergency, terminates by proclamation of the Governor or by concurrent resolution of the Legislature.
3. Directs the Governor to call a special session to assemble the Legislature within 10 days to determine whether to terminate or modify the state of emergency and to address matters by enacting laws or issuing legislative orders.
4. Asserts that legislative orders have the same authority as executive orders.
5. Outlines the powers, processes and procedures of the Legislature when called into a special session during a state of emergency.
6. Specifies that a special session may not adjourn until the state of emergency that caused the special session is terminated.
7. Provides requirements for when the Governor protests any actions due to the issuance of a legislative order or terminations or modifications of an executive order.
8. Prohibits the Governor, if the Legislature terminates a state of emergency, from proclaiming a new state of emergency arising out of the same conditions.
9. Stipulates that if the proclaimed state of emergency is terminated by the Legislature, the Governor may not proclaim a new state of emergency arising out of the same conditions for which the terminated state of emergency was proclaimed.
10. Directs the Secretary of State to submit this proposition to the voters at the next general election
by AZ Free News | Jun 29, 2021 | News
At its June 28 meeting, the Arizona State Board of Education did not approve the SAT for the Menu of Assessments for the 2021-2022 school year. The decision requires all schools to only administer the ACT Aspire and ACT in high school as the statewide assessment.
In June 2020, the Board awarded ACT, in partnership with NCS Pearson, the contract for the statewide assessment beginning in the 2021-2022 school year. As part of the 5-Year Assessment Plan, the Board intended for the nationally recognized college exam that failed to win the bid for the statewide assessment, in this case SAT, to be on the Menu of Assessments.
This would have allowed schools to administer either the ACT or the SAT to high school students.
However, in January 2021 the College Board decided to remove the essay portion from the SAT. In order to be federally compliant, the state needs to assess writing. The Board determined that it was better to not approve the SAT for the Menu rather than risk federal funds again.
The State Board indicated it would consider approving the SAT for the Menu should the College Board offer an essay portion in the future.
In 2019, the U.S. Department of Education placed Arizona on “high-risk status” due to its assessment system and threatened to withhold hundreds of millions of dollars of federal funds.
