Arizona
Cash-flush Arizona lawmakers seek options to budget impasse
PHOENIX (AP) — Arizona is flush with money however lawmakers are weeks into an deadlock over the approaching yr’s state funds and now taking a look at uncommon options to attempt to break the logjam.
Republicans who maintain simply one-vote majorities in each the Senate and Home started overtly speaking about enacting a “continuation funds,” that funds authorities at solely the present yr’s degree plus inflation changes final week.
That plan surfaced Monday within the Home, though its prospects seem iffy at finest.
The present funds is $12.8 billion, and Republican Gov. Doug Ducey had proposed will increase for the approaching fiscal yr to being spending to $14.3 billion.
The brand new plan would depart a whopping $5.3 billion in surplus money sitting within the state treasury, even after accounting for $1.7 billion in earnings tax cuts enacted by the Legislature over unified Democratic opposition final yr. The precise tax cuts are on maintain as a result of opponents collected sufficient signatures to dam them till voters can approve or reject them in November.
Republican-aligned teams sued over the referendum, however a decide in December mentioned voters have a proper to resolve the problem. The Arizona Supreme Court docket is listening to an attraction of that call on Tuesday, the identical day lawmakers hit the one hundredth day of the 2022 session, when they’re alleged to adjourn for the yr. GOP lawmakers hope to keep away from the referendum by repealing the tax cuts and reenacting them.
A number of different priorities would even be bypassed, with a watch towards enacting them after the principle funds or in a particular session.
“We’ve got one constitutional obligation and that’s to move a funds,” Republican Senate President Karen Fann mentioned final week. “We’ve got been ready 5 weeks to get shifting on the funds and now we have not been in a position to do it as a result of now we have a member who’s attempting to barter the funds all on his personal.”
Home Republican Majority Chief Ben Toma additionally used the “constitutional obligation” time period.
“And passing a continuation funds seems to be only a good possibility at this level,” Toma mentioned. “We don’t should (adjourn) straight away afterwards. Nonetheless, that’s an possibility. And as soon as now we have completed with our constitutional obligation, then we are able to do this, and if members need to keep unreasonable then a minimum of we did what we have been alleged to do.”
The one individual that Fann was referring to is Republican Sen. Paul Boyer of Glendale, who desires to make use of $850 million to spice up Okay-12 college funding almost to the extent voters accredited in 2020 the now-dead Proposition 208.
Boyer additionally desires college vouchers for all low-income college students, which doesn’t have the votes within the Home. He is looking for the elimination of a constitutional spending cap on colleges that nearly led to a statewide shutdown earlier this yr, and a everlasting answer to a looming college funding “fiscal cliff” looming from Proposition 123. Voters accredited that measure designed by Ducey in 2016.
It boosts yearly withdrawals from the state land belief and added new state money to extend college funding by about $300 million a yr however these cease after 2025. Boyer desires voters to proceed that funding and to get rid of a provision that caps college funding at 50% of the state’s normal fund spending.
College spending is near that mark, and any funding will increase or cuts in different components of the state’s spending would set off an finish to yearly college inflation will increase.
Additionally left behind if a primary funds is enacted can be a number of priorities Ducey specified by his January funds proposal for the fiscal yr that begins July 1. The $14.3 billion spending plan envisions spending $1 billion over three years for brand spanking new water initiatives, spending on a brand new earned earnings credit score for low-income taxpayers and far more.
“I could possibly be fallacious, however I don’t know that he desires his legacy to be leaving $5 billion for his predecessor and never sort out water,” Boyer mentioned.
Boyer mentioned he additionally believes it’s unrealistic to imagine something might be completed in a particular session. That is very true in an election yr when members need the session to finish to allow them to marketing campaign.
Ducey spokesman C. J. Karamargin mentioned Monday that the governor is assured a funds deal might be reached contemplating his shared priorities with GOP lawmakers and settlement on essential coverage issues.
“And due to the insurance policies now we have labored on collectively now we have created a $5 billion surplus,” Karamargin mentioned, “This can get labored out.”
Home Speaker Rusty Bowers mentioned weeks of deadlock has left the Legislature “stymied.”
“We are able to transfer round, however the governor’s mentioned he’ll veto something that isn’t a part of the funds plan that he desires,” Bowers mentioned.
Sen. Rebecca Rios, the Democratic minority chief, acknowledged that there is an curiosity amongst Republicans to get round Boyer by passing a primary funds with some Democratic help. However she mentioned she doubts if anybody really believes Ducey will signal it given his said spending priorities, which incorporates large raises for the Division of Public Security and a number of different new spending.
“I actually don’t see him unexpectedly saying OK, yeah, by no means thoughts,” Rios mentioned. “So why spin our wheels and ship one thing to the governor that we’re fairly darn positive he’s going to veto?”