Arizona

Arizona lawmakers face big deficit due mostly to massive tax cut and school voucher expansion

Published

2 years ago

January 5, 2024

Arizona lawmakers face big deficit due mostly to massive tax cut and school voucher expansion

PHOENIX (AP) — Democratic Gov. Katie Hobbs and the Republican-controlled Arizona Legislature return to the state Capitol on Monday with a nearly $1 billion problem on their hands.

Less than six months after they celebrated passing a bipartisan budget, lawmakers face a steep deficit due mostly to plummeting revenues from a massive tax cut that took full effect last year and skyrocketing costs from a school voucher program expansion.

A year ago, the state had a budget surplus of $1.8 billion. Now, it has a shortfall of about $400 million for the current fiscal year and another $450 million shortfall in the following year. Budget analysts say the shortfall will likely grow when the state’s next revenue forecast is released later this month.

The tax cut approved by legislators in 2021 and signed into law by Hobbs’ Republican predecessor, Gov. Doug Ducey, had eliminated the state’s graduated income tax and replaced it with a flat tax, which was phased in and took full effect during 2023.

From July through November, Arizona saw a decrease of over $830 million in revenues from income taxes, marking a nearly 30 percent decline.

The voucher program lets parents use public money for private-school tuition and other education costs. It started in 2011 as a small program for disabled children but was expanded repeatedly over the next decade until it became available to all students in 2022.

Originally estimated to cost $64 million for the current fiscal year, budget analysts now say it could top $900 million.

Stan Barnes, a political consultant in Phoenix and a former Republican state lawmaker, said it’s hard to say how legislators and Hobbs will confront the growing costs, but he predicted they’ll be forced to compromise.

“It’s going to be one of the most difficult exercises in recent memory, given the Grand Canyon-sized space between the Republican legislature and the Democratic governor,” Barnes said. Sen. John Kavanagh, chair of the Senate Appropriations Committee, disputed a budget crisis, saying Arizona could balance its books by postponing building projects, having state agencies return unspent state money and other measures.

“In an $18 billion budget, it’s easily manageable,” Kavanagh said. Rep. Oscar De Los Santos, a Democrat who serves as assistant minority leader in the Arizona House, blames Republican policies for the budget problems. The tax cut likely won’t be repealed, he said, but he believes the voucher program can be limited.

“This is a self-created, self-inflicted wound that the Republicans have caused,” he said. “Now we don’t have the resources we need to tackle the important issues in our state.”

The income tax cut championed by Ducey had eliminated the state’s previous graduated tax scale, which started at 2.59% and had a maximum of 4.5% for income over $159,000 a year for a single person. All taxpayers now pay a maximum of 2.5%.

Democrats have criticized the cut as a windfall for the wealthy, while offering fewer benefits for most taxpayers. Supporters have trumpeted the overall effects of the cut on the state’s economy and said citizens want to see lower taxes.

The changes in Arizona’s voucher program led to a sharp increase in the number of participants. Before the expansion, nearly 12,000 students — including disabled children, those living on Native American reservations and children in low-performing schools — took part in the program.

Now that all students can apply for the vouchers, nearly 73,000 students participate. The average scholarship is roughly $9,700 per student.

Critics say the expansion is a drain on the state’s coffers, while backers say the expansion lets parents choose the best school for their children.

About 75% of the students who got vouchers immediately after the program was expanded had no prior record of attending an Arizona public school, according to Department of Education data reported in 2022. That suggests the state subsidies went largely to students whose families already were paying private school tuition.

Water issues will also be key for the Legislature amid a severe long-term drought in the arid southwestern state. Concerns are growing in Arizona about shortages from the Colorado River system, which provides the state with about 40% of its water, and about shrinking supplies of groundwater and regulation in rural areas.

Hobbs has cast drought as the “challenge of our time.” Her administration has limited housing development in parts of metro Phoenix over concerns about water canceled state land leases that for years gave a Saudi-owned farm nearly unfettered access to pump groundwater.

On the voucher program, Hobbs vowed to bring accountability when she began her term a year ago as the first Democratic governor since 2009. Despite her criticism, the budget proposals negotiated by Hobbs last year didn’t include any caps on the expansion, leading Democratic lawmakers to express dissatisfaction with the lack of action.

She’s now proposing changes like requiring private schools that receive voucher funding have minimum education requirements for teachers and that students attend public school for 100 days before becoming eligible for the vouchers. She reiterated a desire for accountability and transparency in the program.

“Arizonans deserve to know their money is being spent on educating students, not on handouts to unaccountable schools and unvetted vendors for luxury spending,” like ski resort passes and pianos, she said.

Kavanagh said controls to the Empowerment Scholarships Account voucher program — such as Hobbs’ idea to require fingerprinting for teachers at private schools that receive tax dollars — make sense. But he believes the program will remain on the books.

“We are not getting rid of ESAs,” Kavanagh said.

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Related Topics:arizona budget Deficit Economy empowerment scholarship account ESA Featured Katie Hobbs Legislature Phoenix Politics school voucher taxation taxes

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Arizona

Arizona gas prices rise above national average amid Middle East conflict

Published

6 hours ago

March 9, 2026

Press Room

Arizona gas prices rise above national average amid Middle East conflict

PHOENIX (AZFamily) — The average price of regular gasoline in Arizona surged more than 30 cents in just a few days, according to AAA, leaving the state’s average at around $3.84 per gallon as of Sunday. The national average stands at $3.45.

Arizona is now one of the most expensive states in the country to fill up, topping the national average by nearly 40 cents.

AAA said the war in Iran is affecting crude oil prices, which are now trading at more than $100 per barrel. Arizona’s Family also reported a slowdown in a major ship channel in the Middle East, adding further pressure to the market.

A seasonal factor is also contributing to the spike. The transition to summer-blend gasoline, which is required in spring, is driving prices higher as well.

Drivers at a central Phoenix gas station said they were caught off guard by the rapid increase.

“I was appalled,” one driver said.

“It was ridiculous,” said another.

“That is a lot, especially in such a short period of time,” said Andrea Webb.

The gas station attendant said some drivers are limiting how much they spend per fill-up, putting in only $10 to $20 at a time. Others said they are actively searching for the lowest posted price.

“I feel like I’m always on the hunt for whatever is the cheapest gas,” said Bailey Mitchell. “This was $4.09 versus $4.15, so I’ll take it.”

Not all drivers said they are cutting back.

“I’m gonna bite the bullet. I need gas in my car. I’ll fill it up,” said Webb.

ASU professor of supply chain management, Hitendra Chaturvedi, said oil prices could approach $130 per barrel if the war in Iran continues. That scenario could push Arizona gas prices close to $6 per gallon, the professor said. No timeline was given.

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Arizona

Ryan Waldschmidt among Diamondbacks sent to minors camp – Arizona Sports

Published

18 hours ago

March 8, 2026

Press Room

Ryan Waldschmidt among Diamondbacks sent to minors camp – Arizona Sports

Several of the Arizona Diamondbacks’ standout young hitters in spring training are heading back to minor league camp, a list that includes outfielder Ryan Waldschmidt and infielders Jose Fernandez and Tommy Troy.

The Diamondbacks announced a series of roster moves on Sunday to shrink the major league camp roster to 47 players with Opening Day less than three weeks away on March 26.

Arizona will have to get down to 26 players by then, and Sunday’s announcement provides more clarity of what the team will look like at Dodger Stadium.

Optioned to Triple-A Reno:

LHP Mitch Bratt
RHP Juan Burgos
LHP Kohl Drake
RHP Grant Holman
INF Jose Fernandez

Reassigned to minor league camp:

RHP Gerardo Carrillo
RHP Hayden Durke
RHP Junior Fernandez
LHP Spencer Giesting
RHP Taylor Rashi
INF LuJames Groover
INF Cristofer Torin
INF Tommy Troy
OF A.J. Vukovich
OF Ryan Waldschmidt

That does not mean these players are done playing in Cactus League games, they will continue getting opportunities to compete ahead of the minor league season. Waldschmidt, Troy and Groover will start Sunday’s game, for instance.

There had been plenty of speculation that Waldschmidt, Arizona’s top prospect could start the year in the major leagues based on his advanced approach at the plate, dominant second half last season in Double-A and big moments he’s had this spring, including a three-hit game and several balls smoked over 100 mph off the bat.

Waldschmidt, 23, has not played in Triple-A, and while it is not unheard of to make the jump from Double-A to the major leagues, that is the less common route than going through all the steps of the minor league ladder. Waldschmidt has three doubles, a home run and nine strikeouts in 25 at-bats this spring.

Jose Fernandez, 22, is another player who has yet to play for Triple-A Reno but turned heads this spring.

He was under the radar entering camp, not ranked highly on many national prospect lists like Waldschmidt, but he has struck the baseball hard consistently this spring and can play multiple infield positions. He leads the D-backs with three home runs this spring.

Troy, 24, has been a hits machine this spring at 12-for-24 after getting his feet wet in Triple-A last season.

That potential Reno Aces lineup, which should include Groover and Vukovich, is primed to be one to watch this spring with players who are knocking at the major league door.

Bratt and Drake have had their ups and downs this spring but will represent Arizona’s starting pitching depth entering the season after they came over at the trade deadline from Texas for Merrill Kelly.

Arizona’s list of non-roster invitees has dwindled with notable remaining names including reliever Jonathan Loaisiga, first baseman Luken Baker and infielder Ildemaro Vargas.

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Arizona

What Tommy Lloyd said after Arizona’s win over Colorado

Published

1 day ago

March 8, 2026

Press Room

What Tommy Lloyd said after Arizona’s win over Colorado

After clinching the Big 12 Conference regular season title outright with a win over Iowa State on Monday night, Tommy Lloyd gave his team a few days off from practice. The break was well earned, but when the team returned they didn’t look like the group that had just romped through the Big 12.

“It’s been a long season. Thursday, we came back and practiced, I didn’t even recognize the team,” Lloyd said after Arizona’s 89-79 win over Colorado. “That’s to be expected.”

Arizona showed signs of a conference championship hangover on Saturday night, falling behind by 11 points to the Buffaloes in the first half. The Wildcats closed the half on a run, and eventually put themselves in position for a program-record 29th regular season win.

Whether it was the altitude, the extended break from practice, or the 9 p.m. start time, Arizona didn’t quite like right … until it did.

”You could probably try to find lots of reasons,“ Lloyd said. ”But I know this: human nature is tough to beat. Human nature is almost undefeated, So a lot of these seasons is just figuring out how to endure the ups and downs, and the emotions that go with the season.“

Our recap of the game can be found here. Below is what Lloyd said postgame.

Lloyd on Arizona overcoming a sluggish start: “I knew it was going to be a tough game down here. As you guys know, I have a lot of respect for Tad and their coaching staff and the program. They play spirited. It was a great test for our guys. I had been bouncing around a few plans to change our rotation, play more guys, and then when I saw the way we came out, a little bit flat, not great energy, I thought it was more important that we figured out how to dig back in the game and be able to draw on that rather than then maybe play some other guys. We’ve rode hard with these eight guys. They’re really good players. I think our energy is good right now, once we got to got it figured out in that game, we were pretty good. But I think it’s important for us to understand, as you head into the postseason that, you’re going to have games like that where you’re playing against a team that’s playing their ass off and playing really good, and maybe your energy’s not quite where you want it to be, but you got to be able to dig deep and respond. I was really proud of our guys’ effort. Hopefully this was a lesson learned, you know, because obviously it’d be great if we could continue to play for a long time.”

On the significance of the team’s late first half run: “Well, obviously it’s a massive benefit getting closer. Then basically you get in a neck in neck game right away, and then we can kind of set up our next run, is what you’re hoping. We were down 11, I think we just told our guys, like, ‘Hey, it’s one of these situations. Let’s just climb our way back in this game, possession by possession. See if we cut into this lead a little bit and put ourselves in and position in the second half to make it a ball game.‘ I think that’s a great skill to learn how to do, to kind of figure out how to not let the let the game get away from you too early. And I thought our guys did a great job with a nice little run there towards the end of the first half.”

On what may have contributed to Arizona’s first half play: “I don’t know. You’ll have to ask our guys. I don’t know, altitude. I know we played obviously Monday night against Iowa State. And you know, there’s a lot of emotions in the game, and a lot of pats on the back so to speak. And then we took Tuesday off. We took Wednesday off. It’s been a long season. Thursday, we came back and practiced, I didn’t even recognize the team. That’s to be expected. And then Friday we were a little bit better. I thought we had a good practice. I was hoping we’d come out and play really well from the start today, but we didn’t. And the ability to figure it out, it’s really important. And I thought the guys really showed some resolve, and I’m proud of them.”

On the fan support in Boulder: “Oh for sure. Our fans are a force. Our fans are the backbone of our program. Arizona’s had a long, strong basketball tradition way before I was even born. So we wanted to tap into that, and we love coming on the road and hearing the U of A chants and all of our fans out there. It just reminds us how special it is for us to be representing University of Arizona basketball.”

On facing Colorado’s backcourt: “Two good players. I felt like we weren’t on it defensively for long stretches in the game today. And let’s give Colorado a lot of credit on offense, I mean they’re a good offensive team. Their offensive numbers, they show that. Those two guards are good, and those guys were important parts of the scout, but their bigs also hit a few jump shots that maybe you’re not you’re not counting on. It was kind of a collective effort by them. I thought we made a lot of defensive mistakes, and I don’t want to take any credit away from Colorado, but we got to be a little more disciplined in some situations with our coverages and our recoveries and things of that nature. We’ve been a really, really good defensive team at times this season. We’re at our best defensively when we’re limiting our mistakes.”

On facing Isaiah Johnson: “He’s a really good player. Obviously the most I’ve ever watched him was this week, and obviously on the court today. I mean, everything he did impressed me. He’s got a great handle, he’s a lefty, and he knows how to get right, to get back left, consistently. And then he’s got a knack for getting fouled, which is a great skill to have.”

On Brayden Burries and Koa Peat’s performances: “I thought Brayden obviously didn’t have a good start to the game. I thought I looked down there. and I don’t know what he was like 1-6 or something like that. We just don’t really have to challenge him. He’s a competitor, and he kind of figured it out on his own and got himself going a little bit. I didn’t realize he had 31 points, but for him to do that was great. And then obviously let’s mention Koa. Koa goes 12 for 15, 25 points. I think he had about 19 in the first half. When your team’s not playing good, it’s great to have a guy like that step up and kind of keep your team in the game. Koa did a great job of that in the first half.”

On what spurred Peat’s 19-point first half: “I think Koa is just a really good basketball player. I think he got to his spots, he made a few shots, he finished with force at the rim. He’s just a really good player. I don’t think it was anything in particular, but he got a good rhythm going and he had a great game.”

On Bangot Dak’s play: “His length impacts the game around the rim, and I think he made those three (field goals), I didn’t realize he was only 3-8, but he made them all in a row, and in the second half, we were trying to kind of pull away a little bit, and he kept them in the game. Just a good player. He’s just a good player and it has been fun to watch him, kind of from afar, develop. He’s obviously gotten better over the course of three years. But I got a lot of respect for him.”

On playing a late Saturday night game and whether that contributed to the slow start: “You could probably try to find lots of reasons. But I know this: human nature is tough to beat. Human nature is almost undefeated, So a lot of these seasons is just figuring out how to endure the ups and downs, and the emotions that go with the season. The fatigue that comes with the season. I can’t give you like one thing in particular. But again, in closing, I want to give a lot of credit to Colorado. I thought they came out with great energy, and they kind of got us on our heels a little bit. And then I want to give our guys credit for being able to respond to an adverse situation and a tough road environment, just a tough situation.”

On the adjustment of playing later in the day: “It is what it is. I love Saturday afternoon games and you know that. We got a Saturday night game, you know? And you know what? I do know this, it’s great to be on national TV a lot. And if you want to be on national TV a lot, you’re going to have, especially on the West Coast, you’re going to get some of these hops, some of these 9 pm games. So no complaints for me. Just want to get on the bus, get on the plane, get home and get rested up.”

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