by Daniel Stefanski | May 10, 2023 | News
By Daniel Stefanski |
Amid a growing dispute with Governor Katie Hobbs and the Arizona Legislature over water issues, Democrat Attorney General Kris Mayes is adding another grievance to her tab: the Arizona Fiscal Year 2024 budget.
On Saturday, Attorney General Mayes transmitted a letter to Governor Hobbs and the Arizona Legislature, expressing her “alarm concerning what is currently under consideration for the Arizona Fiscal Year 2024 budget.” According to Mayes’ knowledge of the state of budget negotiations at the time, “most state agencies, including executive offices established by the Constitution such as the Arizona Attorney General’s Office, would not receive any new ongoing monies from the state’s General Fund in FY24.”
In her letter, Mayes noted that her office had requested “a 15 percent pay increase equal to $3,864,700 in ongoing General Fund dollars for the DCS Attorney General Special Line Item to protect Arizona’s children;” an appropriation of “$3,014,500 from the General Fund for 18.5 full-time employees in the Criminal Division that are currently funded from a temporary appropriation from our Consumer Protection Revolving Fund (CPRF);” $1,750,000 to backfill that (National Mortgage) Settlement funding with a CPRF appropriation (for 13 employees in the Consumer Protection Section of our Civil Litigation Division);” and another “$2,150,400 from the General Fund to replace this funding (from the Anti-Racketeering Revolving Fund) we will lose (because of recent statutory changes).”
General Mayes explained her reasoning for this letter in a statement issued Monday, writing, “Over the weekend, I expressed my alarm over a budget proposal that ignores vital needs of Arizonans – including much-needed funding for our office to continue to crack down on crime and fraud. Today, we see a budget proposal moving forward that appears to be politically expedient for a few, but wholly inadequate for the majority of people in our state. As I said, I am opposed to any statewide budget proposal that does not adequately fund Arizona’s ability to fight the fentanyl crisis and the drug cartels, protect Arizona’s children and combat elder abuse and consumer fraud.”
The State’s Chief Law Enforcement Officer also challenged the governor and members of the Legislature to come up with the requested funds, saying, “The Legislature and Governor need to go back to work and produce a budget that is in the best interest of all Arizonans. We need a budget that funds essential state services that protect the well-being and safety of all Arizonans. I will continue to fight, especially for our most vulnerable residents, as well as the dedicated, hard-working public servants in the Attorney General’s Office.”
Mayes, however, saved her most contentious declaration for the end of her letter, mentioning the “talk of the Legislature sweeping the authority of the Attorney General to direct funds received through consent judgments against several pharmaceutical companies for their roles in the opioid crisis.” She warned, “Sweeping this authority from the Attorney General would be a breach of the consent judgments, and as Attorney General I will not stand by and allow this to happen. I fully intend to consult with the Legislature as the judgments dictate. Any proposal that contradicts this provision by having the Legislature instead direct how the state funds will be used is not acceptable, and I am prepared to go to court to ensure that the State is able to obtain and properly direct those funds for opioid treatment, prevention and education if warranted.”
“Attorney General Mayes should learn the facts first, and accurately convey those facts in committee hearings, before making demands and threats to sue the Legislature and the Governor over the budget,” tweeted Livingston with a copy of his letter to her in which he points out that the Legislature does in fact have a say in how the funds are used.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Feb 15, 2023 | News
By Daniel Stefanski |
Two weeks after the Arizona Senate passed the state’s budget for 2023-2024, the House followed suit, setting the stage for another early legislative session showdown with Democrat Governor Katie Hobbs’ office.
Last week, the Arizona House attempted to pass a budget, but Republican Liz Harris voted with Democrats to stop progress on this front in a narrowly divided chamber. Rep. Harris tweeted after her February 9 vote that she “will reject this budget until we right size and restore it to a level that is commensurate with our economic growth.”
Time was ultimately on Speaker Ben Toma’s side, and this week, all House Republicans came together to join their Senate colleagues in passing the $15.8 billion budget. According to the communication from the Arizona Senate Republican Caucus on February 1, this budget is “$2.3 billion less than the state budget that was approved last year and $1.3 billion less than the Governor’s proposed budget.”
Also, “to absorb any revenue loss, this approved budget leaves $1.8 billion in cash available by the end of fiscal year 2024, in addition to the $1.4 billion available in the state’s Rainy-Day Fund.”
In a release sent out by the Arizona House Republicans touting the passage of this budget, Speaker Toma proclaimed victory and challenged the governor to sign the legislation for the good of all Arizonans:
“House Republicans have acted today to pass a responsible state budget. It’s one that was crafted with the needs of the state, and of Arizona’s families in mind, families who are struggling during this economic recession caused by reckless federal overspending and far-left priorities….This budget passed today continues the same budget which was approved less than a year ago with a bipartisan majority and was cheered at the time by Governor Hobbs and Democratic Minority Leader Cano.”
Speaker Toma’s reference to then-Secretary of State Hobbs supporting the last budget was highlighted by Rep. Jacqueline Parker, who shared a tweet from Hobbs from the conclusion of last year’s process:
Arizona Senate Republicans also cheered this week’s action by the House:
Other House Republicans celebrated the budget passage after their votes on the floor. Rep. Austin Smith tweeted, “I voted YES on the budget today to keep the government running so no Arizonan is held hostage to special interests. Democrats keep threatening a veto from Katie Hobbs. They are willing to shutdown the government to protect special interests. SAD!”
Rep. David Livingston wrote, “Great news, the Arizona House just passed the 2023-2024 Budget! Now we transfer the budget bills to Governor Hobbs.”
House Majority Leader Leo Biasiucci stated, “Arizona House passes budget to avoid Arizona shutdown. Will Governor Hobbs Veto this bipartisan budget or will she do what’s right for every resident of Arizona?”
Arizona House Democrats were much less complimentary of this week’s action to pass the budget and transmit to the governor’s office.
Rep. Laura Terech tweeted, “This is a budget that is destined for a veto. Hopefully, we will be sitting down together soon to do the real work of finding meaningful bipartisan solutions for Arizonans.”
Minority Whip Marcelino Quiñonez said, “The dynamics in Arizona politics changed in November 2022, & this rushed budget headed to the Governor’s desk ignores that reality. The final budget we pass as a body this session must be bipartisan, everything until then is only a distraction. The work starts after the veto.”
The Republican-led budget is dead on arrival at the Ninth Floor. Governor Hobbs released a statement in opposition to the incoming budget, saying, “The issues Arizonans are facing require more than business as usual. I will not sign a budget that is just more of the same and does nothing to demonstrate a desire to move our state forward.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Terri Jo Neff | Jan 14, 2023 | News
By Terri Jo Neff |
The Republican-controlled Arizona House of Representatives took its first steps this week to lower the state’s corporate income tax rate in four successive years starting Jan. 1, 2026
House Bill 2003 would gradually decrease the current 4.9 percent business tax rate to only 2.5 percent. The bill sponsored by Rep. David Livingston was approved Wednesday by the House Ways & Means Committee and the House Appropriations Committee.
All of the Democrats on the two committees cast nay votes.
Arizona’s current corporate income tax rate in place since Tax Year 2017 is the greater of $50 or 4.9 percent of net income. Under HB 2003, that rate would drop to 4 percent for Tax Year 2023, then 3.5 percent the next year, and 3 percent the following year. For Tax Year 2026 and each year thereafter the rate would be only 2.5 percent.
Livingston (R-Peoria), who serves as chair of the House Appropriations Committee, said reducing Arizona’s corporate income tax (CIT) rate is a matter of fairness and sound tax policy.
“Cutting the corporate rate continues the state’s commitment to creating a low tax environment,” Livingston said after the two committee votes. “We’ve done great work to lower the rate on personal income and now we must take the next step to equalize our rate for C-Corps to make them even with other businesses who file via the personal income tax, such as S-Corps and partnerships.
The Joint Legislative Budget Committee (JLBC) advised lawmakers it is difficult to determine the revenue impact from the proposed change, due to the fact most corporations do not follow a calendar-year fiscal year. A final note issued by JBLC includes a “highly speculative” estimated impact on state coffers of nearly $1.7 billion.
But such estimates must be interpreted with caution at this time, according to JLBC.
“Finally, we would note that the estimates above do not reflect the potential behavioral response of taxpayers to the changes under the proposed CIT rate reduction,” the final note explained. “For example, all else equal, a reduction of corporate income taxes can serve as an incentive for businesses to invest in more capital and hire more labor than they would otherwise. Such ‘dynamic’ effects may result in an increase in economic output, which in turn may generate more tax revenue dollars for the state General Fund than what a ‘static’ analysis assumes.”
HB 2003 will move on to the House Committee of the Whole on a date to be announced.
READ HB2003 HERE
Terri Jo Neff is a reporter for AZ Free News. Follow her latest on Twitter, or send her news tips here.
by Corinne Murdock | Dec 3, 2022 | News
By Corinne Murdock |
On Thursday, Arizona House Speaker-elect Ben Toma (R-LD27) announced the committee and chair appointments for the upcoming session.
The House GOP clarified that committee membership is forthcoming.
The appointments are as follows:
Appropriations Committee — Chair: Rep. David Livingston (R-LD28), Vice Chair: Rep. Joseph Chaplik (R-LD3)
Appropriations Subcommittee on Education — Chair: Rep. Matt Gress (R-LD04)
Appropriations Subcommittee on Health & Welfare — Chair: Rep. Selina Bliss (R-LD01)
Commerce Committee — Chair: Rep. Justin Wilmeth (R-LD02), Vice Chair: Rep. Michael Carbone (R-LD25)
Education Committee — Chair: Rep. Beverly Pingerelli (R-LD28), Vice Chair: Rep. David Marshall (R-LD07)
Ethics Committee — Chair: Rep. Joseph Chaplik (R-LD03), Vice Chair: Rep. Travis Grantham (R-LD14)
Government Committee — Chair: Rep. Tim Dunn (R-LD25), Vice Chair: Rep. John Gillette (R-LD30)
Health & Human Services Committee — Chair: Rep. Steve Montenegro (R-LD29), Vice Chair: Rep. Barbara Parker (R-LD10)
Judiciary Committee — Chair: Rep. Quang Nguyen (R-LD01), Vice Chair: Rep. Selina Bliss (R-LD01)
Land, Agriculture & Rural Affairs Committee — Chair: Rep. Lupe Diaz (R-LD19), Vice Chair: Rep. Michele Pena (R-LD23)
Municipal Oversight & Elections Committee — Chair: Rep. Jacqueline Parker (R-LD15), Vice Chair: Rep. Alexander Kolodin (R-LD03)
Natural Resources, Energy & Water Committee — Chair: Rep. Gail Griffin (R-LD19), Vice Chair: Rep. Austin Smith (R-LD29)
Military Affairs & Public Safety Committee — Chair: Rep. Kevin Payne (R-LD27), Vice Chair: Rep. Rachel Jones (R-LD17)
Regulatory Affairs Committee — Chair: Rep. Laurin Hendrix (R-LD14), Vice Chair: Rep. Cory McGarr (R-LD17)
Rules Committee — Chair: Rep. Travis Grantham (R-LD14), Vice Chair: Rep. Gail Griffin (R-LD19)
Transportation & Infrastructure Committee — Chair: Rep. David Cook (R-LD07), Vice Chair: Rep. Liz Harris (R-LD13)
Ways & Means Committee — Chair: Rep. Neal Carter (R-LD15), Vice Chair: Rep. Justin Heap (R-LD10)
The Senate announced its committee chairmanships and leadership last month.
The session opens Jan. 9.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
