AZFEC: Arizona’s Real Budget Problem? Too Much Spending, Not Too Little Taxing

AZFEC: Arizona’s Real Budget Problem? Too Much Spending, Not Too Little Taxing

By the Arizona Free Enterprise Club |

A recent op-ed in the Arizona Republic by the Arizona Center for Economic Progress argued that the legislature’s budget “doesn’t add up” and that Arizona needs a “reality check.” We agree a reality check is in order, but definitely not the kind being offered. 

The argument, which has become the standard refrain from the Left on tax policy, is that Arizonans have enjoyed too many tax cuts over the years (the fault of Republican lawmakers), and that this has left the state anemic in revenues and starved of the ability to provide essential government services. 

But the average middle-class, tax-paying resident would probably scratch their head at this. They still have roads to drive on. The police still come when they call (except maybe if they live in Tucson). There are still bureaucrats employed to receive their tax filings and permit fees.  

No matter how much the Left likes the story that government is running on fumes, people don’t believe it – and their intuition is right, because none of the actual data supports it. The reality is the very opposite. Arizona’s state budget has been ballooning for years. Our welfare programs have never been more riddled with fraud. And governments of every size in the state just keep sizing up. But most concerning about the myth that state government is poor and taxpayers are too rich is that it belies a philosophy that every Arizonan should find alarming…

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PAUL PARISI: The Danger Of AI Rewriting History

PAUL PARISI: The Danger Of AI Rewriting History

By Paul Parisi |

In 1949, George Orwell wrote the novel 1984, in which the fictional character Winston works for the Ministry of Truth in a totalitarian government. His job is to manipulate historical records to justify the Party’s present and future actions. Orwell captures this idea in the chilling line: “Who controls the past controls the future. Who controls the present controls the past.”

Today, there is a growing concern that Artificial Intelligence (AI) could play a role in shaping and distorting our understanding of history. AI systems rely on vast and ever-expanding databases of information to generate responses and conclusions. As more data is added the interpretation of what is considered “true” shifts over time.

We can already see examples in modern society where new revelations about historical figures lead to dramatic changes in how they are remembered. Statues are removed, holidays reconsidered, and achievements reevaluated or diminished. In Orwell’s dystopian vision, this process was called being “unpersoned”—erased from history altogether.

Orwell’s story was influenced in part by real events, particularly the manipulation of information in the Soviet Union. It served as a warning about the dangers of centralized control over truth and historical narrative. Today, while our society is very different, some see parallels in how information is shaped and distributed through AI and social media, raising concerns about influence over public thought.

As the United States approaches its 250th anniversary, an important question emerges: will our nation’s rich historical heritage remain intact, or will it be reshaped by evolving interpretations amplified by AI? Some critics argue that certain modern historical narratives present interpretations that are more opinion-driven than fact-based. An example is the book 1619 that paints a distorted view of the history of the United States of America. This type of invented history is part of the data base AI uses to determine truth

Truth is a human characteristic. The Constitution of the United States contains passages that reflect truth. The words in the Declaration of Independence that refer to the “Laws of Nature and of Nature’s God” reflect absolute truth as does the reference to “Unalienable Rights”. As AI becomes a more prominent tool in our daily lives, it is essential that we remain aware of its limitations.

AI can be a powerful resource, but it does not replace human judgment, critical thinking, or a commitment to truth. If we are to preserve an accurate understanding of history, we must remain engaged, thoughtful, and discerning in how we use and interpret the technologies shaping our world.

Paul Parisi is the Arizona Grassroots Director for Our America.

ARMAN SIDHU: Underwater And Overbuilt: Scottsdale’s $375 Million Bond Bailout

ARMAN SIDHU: Underwater And Overbuilt: Scottsdale’s $375 Million Bond Bailout

By Arman Sidhu |

On May 12, the Scottsdale Unified School District (SUSD) Governing Board voted 5-0 to place a $375 million capital bond on the November 2026 ballot. Five months earlier, the same body voted 3-2 to close Pima Elementary and Echo Canyon K-8 over declining enrollment and its poor fiscal management.

SUSD has lost roughly 6,250 students since 2010-11, a 24% decline. Applied Economics, the district’s own demographer, projects another 2,400-student loss by 2035-36. Six additional campuses sit on the Phase II repurposing list and are likely the next to close. Yet, the district wants a bond 64% larger than the last one approved by voters to renovate buildings it is in the process of closing.

In 2019, Pima was rebuilt with funds from the last school bond approved in 2016 to boost the school’s enrollment. Seven years later, the Pima renovations are a startling example of hubris that comes at a colossal cost to taxpayers. 

The Arizona Auditor General’s January 2026 financial risk analysis flags SUSD on five high-risk measures:

  1. State-funded enrollment is down 7.19% over four years, which directly reduces the per-pupil dollars the district receives.
  2. The day-to-day operating reserve lost nearly half its value in a single year, falling from $18.86 million to $10.60 million.
  3. SUSD spent more than it took in two years running, by 4.14% in FY25 and 8.52% in FY24.
  4. The General Fund savings account fell 25% in FY25 and 31% in FY24, a combined $28 million drawdown.
  5. SUSD pulled $4.2 million of its state capital aid, money meant for buildings, technology, and buses, and used it to cover payroll and operations instead.

In other words, SUSD is so operationally distressed that it is cannibalizing its capital fund to make payroll. A bond cannot fix that. By law, bond proceeds can only be spent on capital projects, not on salaries or classroom costs.

If this bond is approved, SUSD will still have to make cuts, most likely to staff while throwing away money to maintain spaces it cannot afford to operate.

This pattern is statewide. Chandler Unified has similarly delayed school closures and narrowly forced through a bond in 2025 after a 2024 bond request led to the district’s first school bond rejection in 30 years. Kyrene passed a $161 million bond in 2023 and is still closing six schools. Bonds do not solve enrollment declines, nor do they save jobs. Scottsdale Governing Board member Pittinsky put it plainly in the December 2025 closure vote: “SUSD is nearly 25% smaller than we were 15 years ago, yet we have closed only one program in that timeframe.”

The political machinery behind school bonds runs on the profit motives of vendors and not on the genuine needs of students, families, or the school district. The Arizona Center for Investigative Reporting documented that three architects, three construction firms, and three subcontractors captured more than half of Arizona K-12 contracts from 2013 to 2016, doing so through hundreds of thousands in political contributions to pro-bond PACs statewide.

SUSD voters have seen the worst side of school bonds co-opted by the greed and financial interests of vendors. In 2018, former Superintendent Denise Birdwell steered architectural work to Hunt and Caraway without competitive bidding, accepted $30,000 in payments during contract negotiations, and appointed an unlicensed architect with a prior felony theft conviction on the contractor selection committee. She was later indicted on 18 felony counts. Yet, the same conditions that enabled this malfeasance still remain in place with no real guardrails to protect taxpayers from the too cozy relationship between district leaders and vendors.

Before SUSD asks taxpayers for $375 million, the Governing Board and Superintendent Scott Menzel owe the district three deliverables that address the Auditor General’s findings.

  1. Complete Phase II closures before any new funding request.
  2. Align capital planning to the 2035-36 enrollment projection of 17,340 students.
  3. Cut district-level overhead and stop diverting capital to operations. Non-instructional positions in SUSD grew while enrollment fell and instructional spending dropped to a 20-year low at 54.0%.

These actions would constitute rightsizing in earnest through fewer schools, a smaller operational footprint, and a proportionally smaller payroll.

A district carrying five high-risk flags from the Auditor General has not earned the right to ask voters for $375 million. Scottsdale voters would be well-advised to reject the request this fall. 

Arman Sidhu is a lifelong Arizonan, a professional educator, and a doctoral candidate at Arizona State University, where his research focuses on school bonds and K-12 education funding. The opinions presented are solely his own.

AZFEC: No Means No: Why Tucson Voters Should Reject TEP’s Repackaged Climate Deal

AZFEC: No Means No: Why Tucson Voters Should Reject TEP’s Repackaged Climate Deal

By the Arizona Free Enterprise Club |

This November, Tucson voters are being asked (again) to approve a 25-year franchise agreement between Tucson and Tucson Electric Power (TEP). Franchise agreements are generally standard arrangements that allow utilities to use public rights-of-way for poles, wires, and infrastructure. But there is nothing standard about this deal. Bundled with it is an “Energy Collaboration Agreement” that will quietly embed climate policy into Tucson’s governance for the next quarter century. Voters should read the fine print (and the price tag) before checking the box. 

If Tucson voters are having déjà vu reading this proposal, it’s because it is awfully similar to what they have already said no to. In May 2023, Proposition 412 put a nearly identical TEP franchise agreement before the public, and voters rejected it by a 55-45 margin. That deal included a new 0.75% “community resilience fee” on top of the existing 2.25% franchise fee, with proceeds earmarked for undergrounding utility lines as well as funding the city’s Climate Action Plan. Despite voters already telling the city they don’t want it, city leaders and TEP have assumed residents really just want a more expensive version of the same thing – rebranding and trying to ream through for a second time the same agenda but at a cost of $64 million instead of $56 million.  

What the franchise agreement really does is help TEP maintain infrastructure, expedite permitting, and improve outage response. But TEP can still operate without a franchise agreement, meaning this vote is not about whether Tucson continues receiving electricity. Instead, it creates the legal foundation for a broader political partnership between the city and the utility…

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