The 2024 report from the Joint Legislative Budget Committee could potentially silence opponents of Arizona’s Empowerment Scholarship Account (ESA) Program once and for all. This week, Superintendent of Public Instruction Tom Horne called the myth that the ESA program was ever a threat to the budget: “utterly demolished.”
In a press release from the Arizona Department of Education, Horne explained that for Fiscal Year 2024, which concluded on June 30th, the Basic State Aid payments for education programs at district and charter schools and the controversial ESA program all finished well under budget with a net savings to the state of $4.3 million. The news comes just days after the Goldwater Institute debunked the narrative that the ESA program harmed students and blew up the state budget as previously reported by AZ Free News.
Horne said in the press release, “Having a surplus of more than $4 million is proof positive that the critics who have claimed the ESA program will bust the not only the state’s education budget but the entire budget itself were always wrong. It was always a myth, and that myth is utterly demolished.”
The report revealed that out of $6,309,352,100 appropriated toward education funding, even with the ESA, the state only spent $6,305,050,851.55 leaving behind a $4,301,248.45 surplus.
Horne, who was previously State Superintendent of Schools from 2003 to 2011 before being elected State Attorney General, continued:
“Budget figures are stubborn facts and they do not stand up to the political posturing that ESA critics have consistently and wrongly thrown at the program. The universal ESA scholarships are a vital part of making sure that parents are able to choose the schools that best fit the needs of their children. For example, we have families with three children. Two are doing fine in the neighborhood public school, but the needs of the third are not being met. ESAs enable the parents to find a school that meets the needs of the third child. How can anyone be so immersed in ideology that they would deny the parents that ability?”
He concluded, “Having choices such as charter schools, open enrollment for district schools and ESAs are a valuable tool for Arizona parents. As today’s announcement shows, these choices do not result in any part of the budget deficit. It resulted from overly optimistic projections of state revenues. ESAs are enabling parents to find the best schools to meet their children’s needs. No rational person should oppose that.”
The revelation from the JLBC report could severely undermine the political arguments of Democrats running against the state’s ESA program in November such as Democrat John McLean who is seeking to gain a State Senate seat in Arizona Legislative District 17. McLean is challenging Republican Vince Leach.
In a statement to AZ Free News in early August, Leach warned, “John McLean is going to have to defend the actions of the Democrat party both at the state level and the national level. He owns the damage to the state of Arizona by Governor Katie Hobbs, and also the radical policies that President Joe Biden and Vice President Kamala Harris are inflicting on our country. If voters elect McLean to office, that will help the Democrats take over the state legislature, which means that taxes will increase, school choice will disappear, and commonsense election laws will be reversed.”
The latest official employment report finds once again that the federal government and state-and-local government hiring spree is still in full gear. Over the past year health care and government hiring has outpaced every private sector industry.
So, even though there are a lot more government workers, good luck finding them or getting them on the phone.
This is because so few of them are actually physically on the job.
What is happening in the federal government (“Club Fed”) these days borders on the absurd — or should I say the obscene. A recent survey by Federal News Network of federal workers finds only 6% are working full time in the office. Thirty percent are full time remote. Office buildings in Washington have become city-block long zombies. Especially on Fridays.
While exact comparisons between public and private employees are tricky and inexact, best estimates are that in 2023 roughly 30% of private workers were working from home or remotely either some or all of the time. In the private sector, the percentage of employees working from home has actually declined from about 50% during Covid (2020).
This means that federal employees are three times more likely to be working remotely either some or all of the time.
I am all for employees working remotely a few days a week and this is likely to become more common in the information and digital age. I do that myself.
But one has to wonder how many of these workers are really necessary. And what are the chances that these remote government workers who can almost never get fired for bad performance are putting in an honest day’s work. My suspicion is very few.
The irony is that three years ago the federal government issued an order for federal employees to return to work post-Covid. Many thousands have blatantly ignored the order.
Remember, government workers have some of the cushiest and least stressful jobs on the planet. And they get paid roughly 30 to 40% more than comparably skilled private workers — when taking account exorbitant benefits.
Here is my solution. Uncle Sam is losing almost $2 trillion a year. Stop hiring new people. Every federal agency including the biggest bureaucracy in the world — the Pentagon — should impose a hiring freeze — except for extraordinary circumstances — until the budget is balanced. Then impose a 30% across the board reduction in force (RIF).
Finally, if the government needs more revenues, start by selling federal buildings that are less than one-half occupied. Many buildings are less than 20 percent occupied.
Former President Donald Trump’s most popular rallying cry in 2016 was to “drain the swamp.” But today the swamp is deeper than ever and the deep state swamp creatures are more numerous than ever after four years of the Biden-Kamala administration. If Trump wins, he and Republicans should get draining.
Stephen Moore is a contributor to The Daily Caller News Foundation, visiting fellow at the Heritage Foundation, and a co-founder of the Committee to Unleash Prosperity.
Last weekend, the Arizona legislature completed its constitutional duty and finally passed a state budget, concluding its business for the year. Looming over the entire process was a budget deficit that needed to be filled—fluctuating from around $1.6 billion to just over $2 billion over the 3-year budgeting period.
Though the left and the media wanted to blame historic tax cuts and landmark school choice expansion for the shortfall, the real problem was record spending that resulted in Arizona’s budget growing by over 50% in the last five years. So, when lawmakers gaveled into session in January, the solution was to right-size state spending. Our organization even provided a roadmap for a successful budget process:
Cut spending to align with current and future funding projections
Don’t raid the rainy-day fund
Don’t use budget gimmicks to balance the sheets
Don’t roll back our school choice programs
Don’t raise taxes
So how did the legislature do? Here is a breakdown of the good and the not so good results from the budget:
The State of Arizona has passed a balanced budget through the Republican controlled House and Senate not only hammering down a $1.4 billion shortfall in projected tax revenues but actually expanding and reforming the state’s Empowerment Scholarship Accounts (ESA), and School Tuition Organization (STO) eligibility, much to Democrat Governor Katie Hobbs’ chagrin. Hobbs, despite her opposition toward the ESA program, implied her acceptance of the budget in a Saturday post to X, and on Monday evening signed the budget into law.
As reported by 12News, the budget was approved in a marathon of votes that stretched throughout the Saturday workday and landed on Hobbs’ desk where it was approved at the end of the business day. Many agencies in Arizona are now working with a budget cut of approximately 3% that arose primarily from depressed sales tax collections in 2023-24. Hobbs and her fellow Democrats have tried to assign the blame to former Republican Gov. Doug Ducey for tax cuts and expansion of the ESA program to allow all students access to the education of their choice.
In spite of this rhetoric, the GOP led legislature successfully prevented a reduction in the funds directed to putting students in underperforming schools into private schools and under the tutelage of homeschooling parents. The budget even included a 2% inflation-driven increase in the K-12 public schools budget.
Senate Majority Whip Sine Kerr explained in a statement from the AZ Senate Republicans:
“What’s not included in the $16.1 billion budget is an elimination of the historic Universal Empowerment Scholarship Accounts program or our School Tuition Organizations program providing tens of thousands of Arizona families the freedom to pick the best schools to meet their children’s unique learning needs.
We are continuing our commitment to providing every family in the state of Arizona with a quality education, no matter their zip code or economic status. Additionally, we said ‘no’ when Governor Hobbs and Democrats proposed eliminating our Arizona Freedom Schools at our public universities, which are dedicated to civics education and ensuring students are equipped down the road to lead our state to a brighter tomorrow.”
In the new budget, the ESA program sees an expansion to “allow the use of account monies to reimburse the parent of a qualified student or a qualified student for the purchase of a good or educational service that is an allowable expense.” Reforms to the ESA will be extensive with the Arizona Department of Education to work in consultation with the Auditor General to generate risk-based audits of the program and ensuring that educators being paid through the program are not subject to disciplinary action by the State Board of Education and requiring all teaching staff and personnel with unsupervised contact with the students be fingerprinted as public school teachers already are. Expansion to the STO program grew the student eligibility to include any students who “are placed in foster care … at any time before the student graduates from high school or obtains a general equivalency diploma.”
In her comments posted to X, Hobbs commented, “While this bipartisan budget delivers reforms to ESAs, they are not enough.” She added a commitment to bring “accountability and transparency” to the program referring to it as “unsustainable.”
Despite that deficit, we made important investments in delivering childcare to working families, combatting the fentanyl epidemic and securing our border, and protecting critical health and human services for vulnerable Arizonans.
— Governor Katie Hobbs (@GovernorHobbs) June 16, 2024
But I know we still have more work to do. While this bipartisan budget delivers reforms to ESAs, they are not enough. I stand committed to bringing much needed accountability and transparency to the unsustainable ESA program.
— Governor Katie Hobbs (@GovernorHobbs) June 16, 2024
In addition to the preservation and expansion of Arizona’s ESA and STO programs, the AZ Senate GOP offered the following highlights from the budget:
Reduces state spending by $1.7 billion below the 2023-2024 enacted budget (a 10% reduction).
Reduces ongoing spending by $330 million.
Protects school choice programs—both Empowerment Scholarship Accounts and School Tuition Organizations are funded for continued growth.
Protects Arizona Freedom Schools.
Does not pull dollars from the rainy-day fund.
No new taxes or tax increases.
No new debt.
Reduces ongoing funding of state agencies by 3.5%, including cuts to universities by $23 million.
Maintains law enforcement funding, while adding $5 million for local border security support and $4 million for fentanyl interdiction and law enforcement response.
Prohibits board fee increases for 2 years.
Lowers vehicle emissions testing fees by 5%.
Ends ongoing funding for COVID federal programs.
Maintains road infrastructure funding.
Adds additional full-time employees to reduce concealed carry permit application and renewal time frames.
Makes conservative policy and spending reforms to the Arizona Commerce Authority, the Arizona Department of Transportation, the Industrial Commission of Arizona, and the Board of Technical Registration.
Senate President Warren Petersen summarized the contentious budget in statement, “Following last year’s state budget, where Republican lawmakers provided inflationary relief to everyday Arizonans through $274 million in tax rebates distributed to struggling families, as well as a ban on the tenant-paid rental tax taking effect this January, Republicans are again successfully supporting our hardworking citizens while simultaneously reining in spending.” He added, “In this year’s budget, we defended more than $520 million allocated last year for much-needed transportation projects statewide. We also cut fees for Maricopa County drivers on emissions testing by 5%, and we banned fee increases on Arizonans from state boards for the next two years.”
“Arizonans can rest assured that their state has a balanced budget. I’m thankful for members of the legislature who came together, compromised, and passed this bipartisan agreement,” Gov. Katie Hobbs said in a statement reported by AZ Mirror. “But I know we still have more work to do.”
Despite the modest gains of the budget, not all Republicans supported the compromise. The Arizona Freedom Caucus seemed very displeased and took their case to the public in a post to X, writing, “It’s a perfect example of the Swamp that establishment Republicans at the Arizona Capital are saying ‘the Freedom Caucus is the problem’ on this budget The reality is that this is what happens when weak Republicans negotiate a budget in secret with Democrats.”
It’s a perfect example of the Swamp that establishment Republicans at the Arizona Capital are saying “the Freedom Caucus is the problem” on this budget 🤡
The reality is that this is what happens when weak Republicans negotiate a budget in secret with Democrats.
The result is…
— Arizona Freedom Caucus (@AZFreedomCaucus) June 15, 2024
The Caucus cited a dozen shortcomings in the budget, namely that the Democrat and Republicans who formulated it, “Fail to appropriate any new meaningful border security money for local Sheriffs, kneecap a school choice tax credit, regulate private faith-based schools, weaponize public schools’ ability to stop conservative teachers from providing instruction to ESA students, impede parents’ right to educate their children as they see fit, gift hundreds of millions of your tax dollars to the healthcare industrial complex, refuse to do anything meaningful to fix our elections, use budget gimmicks to pretend to solve the state’s deficit, rather than actually solving it, sweep $430M of water funding intended to help solve our state’s water crisis, fail to hold Hobbs accountable for her illegal pay-to-play scheme, fail to hold Mayes accountable for weaponizing the justice system against her political opponents,” and “fail to hold Fontes accountable for his totally illegal Election Procedures Manual.”
They added, “In the case of the current budget, when @AZFreedomCaucus members approached leadership, raised concerns with some of the nonstarters in the budget, offered solutions, and indicated that with changes we could achieve Republican unity… Warren Petersen and Ben Toma rejected the changes instantly without even considering them, and then spent the rest of the day attacking, defaming, and insulting the members of the Freedom Caucus for not just blindly following orders. Unfortunately, establishment Republicans’ failure to see the present battlefield for what it really is will cost us the legislature. When Democrats take control, whether it’s in November or in two years… you can look back at who voted YES on this year’s budget to figure out who to blame.”
The budget is also likely to draw a legal challenge from Arizona Attorney General Kris Mayes regarding the ‘sweep’ of funding from the $1.14 billion, 18-year opioid One Arizona Agreement. The agreement, long a bone of contention between the AG, Governor, and Legislature, stems from a lawsuit that capped the Big Pharma opioid scandal and resulted in then-Attorney General Mark Brnovich signing onto to a $26 billion national settlement with Cardinal, McKesson, and AmerisourceBergen and Johnson & Johnson, which distributed, manufactured and marketed opioids respectively.
The funds are held by the AG’s Office as steward for the money designated for opioid treatment, prevention, and education. Mayes told 12 News’ Brahm Resnick, “I am not giving that money to them. It’s in my bank account at the Attorney General’s Office. It’s not going anywhere.”
In a lengthy statement posted to X, Mayes said, “I have stated publicly + very clearly that I refuse to release these funds in this way as it would violate the agreement, & I stand by those words today. This is an egregious grab, and I will do everything in my power to protect these opioid settlement funds for all Arizonans.”
Arizona Republicans again got the better of Governor Katie Hobbs with their second installment of a state budget amid a tenuous divided government.
On Saturday night, the Republican-led Arizona Legislature passed the 2024-2025 state budget and adjourned for the year after finishing its tasks. This latest budget was negotiated between Senate President Warren Petersen, House Speaker Ben Toma, and Democrat Governor Katie Hobbs.
“Following last year’s state budget, where Republican lawmakers provided inflationary relief to everyday Arizonans through $274 million in tax rebates distributed to struggling families, as well as a ban on the tenant-paid rental tax taking effect this January, Republicans are again successfully supporting our hardworking citizens while simultaneously reining in spending,” said Senate President Warren Petersen. “In this year’s budget, we defended more than $520 million allocated last year for much-needed transportation projects statewide. We also cut fees for Maricopa County drivers on emissions testing by 5%, and we banned fee increases on Arizonans from state boards for the next two years.”
🚨FOR IMMEDIATE RELEASE: Republicans Eliminate Deficit, Increase Border Security Spending, Fully Fund Public Safety, Protect School Choice, Shrink Government in 2024-2025 State Budget
House Speaker Ben Toma added, “At a time when Arizonans are having to tighten their financial belts, so is state government. The Arizona House of Representatives has passed a fiscally conservative, structurally balanced state budget that solves the nearly $1.5 billion deficit, without touching the rainy-day fund or using budget gimmickry. The budget trims government and protects conservative priorities. It increases funding for local border support operations and assists fentanyl interdiction efforts by law enforcement. It funds transportation and infrastructure and maintains our state’s commitment to water security.”
✅House Approves Fiscally Conservative State Budget that Trims Government and Protects School Choice
“At a time when Arizonans are having to tighten their financial belts, so is state government. The Arizona House of Representatives has passed a fiscally conservative,… pic.twitter.com/yJRtoKAZqb
— Arizona House Republicans (@AZHouseGOP) June 16, 2024
According to a press release from the Arizona Senate Republicans Caucus, some of the highlights from the agreed-upon budget included the following:
Reduction of state spending by $1.7 billion below the 2023-2024 budget (10%);
Reduction of ongoing spending by $330 million; and
Addition of $5 million for local border security support and $4 million for fentanyl interdiction and law enforcement response.
The Senate Republicans also noted that their efforts this year produced a budget that did not add any new taxes, tax increases, or debt. Additionally, the budget did not pull dollars from the rainy-day fund, ensuring that the state would have sufficient funds to draw upon should it experience more stormy weather in future years.
“We tightened the state’s belt by trimming fat from state agencies, and we reallocated unspent tax dollars to the general fund to eliminate the deficit, without irresponsibly tapping into our rainy-day fund,” said Senate Appropriations Chairman John Kavanagh. “Most government operations within the state received a healthy and manageable 3.5% reduction in spending, with a few exceptions. Safe communities free of crime and a secure border are the biggest priorities to Arizonans and Republicans alike, and we want to ensure our budget reflects that. As a result, funding for the Department of Public Safety, the Department of Corrections, and the Arizona Auditor General remains intact, while we’re also investing millions in border security, all without raising taxes or creating new debt.”
“Our budget also reflects our support for our citizens’ Second Amendment rights,” said Senator David Gowan, Chairman of the Senate Committee on Military Affairs, Public Safety & Border Security. “We’re funding two full time positions at the Department of Public Safety to address a backlog of concealed carry permit applications and renewals, with a requirement to prioritize Arizona residents first. This move can have a positive impact in our state by ultimately strengthening the safety and security of our communities as our citizens seek avenues to protect themselves, their families, and their private property. Additionally in this budget, we’re infusing crucial dollars into the Critical Access Hospitals (CAH) located in our rural communities, so these residents have convenient access to emergency care.”
Not every Republican was on board with this budget, however. State Representative Matt Gress explained his “no” vote on the most-recent edition, writing, “This year’s [budget] seems more focused on just ‘getting it done’ than ‘doing it right.’ There’s a reason there is bipartisan opposition. This is not a budget that reflects the shared priorities of Arizonans.”
Gress’ fellow Republican colleague in the chamber, Representative Jacqueline Parker, opined, “Literally the ONLY ones saying good things about this budget are Democrats…”
Literally the ONLY ones saying good things about this budget are Democrats… 🤔 pic.twitter.com/NIW1tSc4KF
— Rep. Jacqueline Parker (@electjacqparker) June 16, 2024
Senator Wendy Rogers weighed in after the vote in her chamber, posting, “This was a solid Republican budget and I voted for it.”
State Representative John Gillette agreed with Rogers’ sentiments, saying, “After a hard fight and two days of voting, we finally passed the 2024-2025 budget with tax cuts and NO new debt. Fiscal responsibility and conservative values prevailed.”
After a hard fight and two days of voting, we finally passed the 2024-2025 budget with tax cuts and NO new debt!
Fiscal responsibility and conservative values prevailed.
Republicans will now have to make the case to Arizona voters in the all-important November General Election about why they should return to power in the state legislature for another two years in a divided government with Governor Hobbs. Throughout the past two years, Republicans have been mostly united and focused on protecting several of their priorities from the clutches of Democrats eager to dismantle values and principles. That balance of power, though, hangs on a knife’s edge as fall awaits.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
