Dear Friends,
Here are a few highlights of the $9.9 billion spending plan sent to the governor. If you have any questions do not hesitate to contact me, Trish Groe by phone at 928-279-3332 or by email at TrishGroe@frontiernet.net. My website is www.TrishGroe.com.
The centerpiece of the budget is the historic tax relief package aimed at hard-working families and businesses.
The $545 million tax relief package, the largest in state history, was approved and is comprised of $311 million in individual income tax cuts during the next two years, $215 million in a three-year suspension of the state-set property tax and the elimination of the state income tax for active military members.
Among other Republican initiatives included in this year’s budget:
Reduced gridlock
• To accommodate an exploding population, the Legislature took action to provide money to expedite freeway construction and put more money into local communities to build roads. The Legislature spent $307 million to accelerate freeway construction throughout the state to help move commerce and reduce gridlock. In addition, the Legislature funded highway patrol from the General Fund, freeing up $38 million of gas taxes for local governments to use on transportation needs.
Education•
$524 million for education, $300 million above new student growth and inflation. $100 million is designated for teacher salary increases and another $160 million over two years can be used for any purpose a district deems necessary, including voluntary full-day kindergarten.
The Legislature, however, ensured that districts are not allowed to “game the system” by barring schools from seeking additional capital dollars for kindergarten programs that the majority of districts already provide. This important reform will save the state hundreds of millions of dollars.
Another $2 million is going to the gifted student program and $19 million will go to build new schools for the School for the Deaf and Blind.
• In a major victory for children and families, school choice programs receive an additional $13 million. With a doubling of the amount businesses can contribute to tuition organizations through tax credits and an automatic 20 percent increase every year, more low- and moderate-income families can move their children out of failing schools. Two voucher programs were also approved for $2.5 million apiece; one goes to disabled students and another for foster and adopted children.
• $155 million for the three state universities, including $74 million in salary increases and $20 million in discretionary dollars spread amongst the universities based on student population, which can be used by each campus to address individual needs such as ASU’s expansion of its Williams Gateway campus.
Public safety
• The last several years have seen a concentrated effort to raise the salaries of our correctional officers. Earlier this year, all state employees received a 2.5 percent increase plus $1,650. The budget gives an additional $2,900 pay raise for correctional officers, for a total of $5,300 salary increase this year. That amounts to a 20 percent raise this year.
• The governor vetoed the Legislature’s $162 million comprehensive border security package but we have kept $26 million for the Gang and Immigration Task Force (GITEM), which will allow DPS to hire 100 immigration officers and provide $10 million to allow local communities to enter into agreements with the federal government to combat illegal immigration.
• Methamphetamine abuse is a scourge of our communities, both in our cities and rural areas. The Legislature set aside $8 million to fight meth abuse, including education, treatment and prevention.
• The Legislature allocated $5 million for 46 new DPS patrol officers.
Fiscal accountability (smoke and mirrors)
• Tricks and gimmicks are becoming a thing of the past.
This year, the Legislature eliminated the K-12 rollover of $191 million. And to begin to correct a budget gimmick started two decades ago, we increased the June estimated sales tax level from $100,000 to $1 million, meaning most businesses will no longer have to make two sales tax payments to the state each June.
• $484 million into the Rainy Day Fund to save for the next economic downturn.
• The federal government is now requiring states to verify the citizenship of people on the welfare rolls. This follows Arizona’s Prop. 200, which limits public benefits to legal residents.
The Legislature approved $5 million for eligibility workers to verify citizenship of all welfare recipients.
Legislative initiatives
• The Legislature gave $10 million for a veteran’s home in Southern Arizona to acknowledge the sacrifice made by Arizona veterans and provide them a safe and comfortable living environment.
• Continuing the Legislature’s recent practice of funding biomedical research, $7 million is going to autism research and $3 million is going to Alzheimer’s research.
Friday, June 23, 2006
All Aboard!
All Aboard!
Democrats boarding the school choice train
by Clint Bolick
June 23, 2006
The Arizona legislature’s 2006 session set a record for school choice legislation by enacting four new or expanded programs allowing disadvantaged children to attend private schools. Even more remarkable: The programs were enacted with a Democratic governor.
School choice has experienced unprecedented legislative success over the past two years for a few underlying reasons. First and foremost, the school choice movement is acting smarter. Advocates are pursuing small programs addressing specific problems that are difficult for politicians to oppose.
Another factor inducing a more tolerant attitude toward school choice among Democrats is that they are running out of viable alternatives. The U.S. Department of Education reported recently that three million children are attending schools that have failed to satisfy minimal state standards for at least six consecutive years.
For Democrats who truly believe in social justice, that presents a terrible dilemma: Either forcing children to remain in schools where they have little prospect for a bright future, or enlisting private schools in a rescue mission. Democrats are increasingly unwilling to forsake the neediest children.
Arizona is evidence of the possible. Although she could have allowed them to become law without her signature, as she did with the corporate scholarship tax credits, Gov. Napolitano yesterday became the first Democrat to sign new voucher programs into law. For children with disabilities or in foster care, how the bill became law is of little moment; but by affixing her imprimatur, Ms. Napolitano conveyed powerful symbolic evidence that the future for school choice is bright.
Clint Bolick is president and general counsel of the Alliance for School Choice and a Goldwater Institute senior fellow. A version of this article appeared in the Wall Street Journal
Democrats boarding the school choice train
by Clint Bolick
June 23, 2006
The Arizona legislature’s 2006 session set a record for school choice legislation by enacting four new or expanded programs allowing disadvantaged children to attend private schools. Even more remarkable: The programs were enacted with a Democratic governor.
School choice has experienced unprecedented legislative success over the past two years for a few underlying reasons. First and foremost, the school choice movement is acting smarter. Advocates are pursuing small programs addressing specific problems that are difficult for politicians to oppose.
Another factor inducing a more tolerant attitude toward school choice among Democrats is that they are running out of viable alternatives. The U.S. Department of Education reported recently that three million children are attending schools that have failed to satisfy minimal state standards for at least six consecutive years.
For Democrats who truly believe in social justice, that presents a terrible dilemma: Either forcing children to remain in schools where they have little prospect for a bright future, or enlisting private schools in a rescue mission. Democrats are increasingly unwilling to forsake the neediest children.
Arizona is evidence of the possible. Although she could have allowed them to become law without her signature, as she did with the corporate scholarship tax credits, Gov. Napolitano yesterday became the first Democrat to sign new voucher programs into law. For children with disabilities or in foster care, how the bill became law is of little moment; but by affixing her imprimatur, Ms. Napolitano conveyed powerful symbolic evidence that the future for school choice is bright.
Clint Bolick is president and general counsel of the Alliance for School Choice and a Goldwater Institute senior fellow. A version of this article appeared in the Wall Street Journal
2007 State Budget Win For AZ Families
GROE NOTE: I do not agree with this perspective from the AZ Department of Commerce, a bloated government agency, but am including this press release to highlight a different perspective.
This week, the legislature passed and Governor Janet Napolitano signed into law Arizona’s budget for fiscal year 2007. It is a win for Arizona families, especially when it comes to jobs.
As you know, the scientific research, technology and innovation are keys to the future of the Arizona economy. This budget includes the $35 million 21st Century Fund, proposed by the Governor in her State of the State as Innovation Arizona. Its goal is to attract world-class researchers, accelerate the state’s technology market and bring innovative products to market. The result will be more high-paying jobs for Arizonans, and that will expand industrial growth and increase Arizona’s prosperity.
The Arizona Department of Commerce looks forward to the strong statewide collaboration in this endeavor. It will certainly move Arizona forward.
Gilbert Jimenez, Director
Arizona Department of Commerce
Our Job is JOBS!
This week, the legislature passed and Governor Janet Napolitano signed into law Arizona’s budget for fiscal year 2007. It is a win for Arizona families, especially when it comes to jobs.
As you know, the scientific research, technology and innovation are keys to the future of the Arizona economy. This budget includes the $35 million 21st Century Fund, proposed by the Governor in her State of the State as Innovation Arizona. Its goal is to attract world-class researchers, accelerate the state’s technology market and bring innovative products to market. The result will be more high-paying jobs for Arizonans, and that will expand industrial growth and increase Arizona’s prosperity.
The Arizona Department of Commerce looks forward to the strong statewide collaboration in this endeavor. It will certainly move Arizona forward.
Gilbert Jimenez, Director
Arizona Department of Commerce
Our Job is JOBS!
Tuesday, June 20, 2006
Predictably, tax-cut foes aren’t logical
Guest Opinion: Predictably, tax-cut foes aren’t logical
Kirk Adams
The East Valley Tribune
June 20, 2006
Rep. Kirk Adams represents District 19.
It’s the middle of June, and predictably the temperatures are well above 100 degrees. No one who has lived in Arizona for even a short period of time would reasonably expect anything different
Likewise, the arguments put forward by those opposed to broad-based tax relief are expected and predictable. Like Bill Murray’s character in the iconic movie “Groundhog Day,” they keep doing and saying the same things over and over. The fact that they are consistently wrong is no deterrent. A factual review of the Republican tax-relief proposal exposes the stale rhetoric of the tax-and-spend lobby.
For example, the $525 million in tax relief is little more than 5 percent of the total $10.1 billion budget. Furthermore, the entire amount of tax savings is derived from surplus money. State government collected nearly $1.5 billion in surplus revenue in the last fiscal year. This is money that was not expected, nor was it appropriated in the previous year’s budget.
Even with tax relief, state spending will increase by over 10 percent, not even accounting for needed onetime expenditures. K-12 education will see a nearly $600 million increase. This is in addition to $4 billion of state money it already receives and the millions more in federal dollars. Transportation needs will get $345 million, correctional officers will receive needed pay raises, and many other priorities will see significant increases. Moreover, the 10 percent increase in state spending this year is on top of the 36 percent increase over the last three years. Since 2003 the state budget has grown from $6.5 billion to over $10 billion. This highlights how modest this proposed tax relief really is.
Opponents of tax relief continue to assert that cuts are bad because they permanently obligate future budgets. However, they never seem concerned that spending on new or expanded government programs also obligates future budgets. New government programs bought with new spending will only grow and demand more resources over time. Tax relief actually returns dollars to state coffers by increasing economic activity.
Opponents have also raised the tattered red flag of public safety. They mistakenly state reductions in income taxes reduce the cities’ take of state-shared revenues, bringing imminent peril to the ranks of police and fire. The fact is the dollar amount cities receive will actually increase, barring an economic downturn. Should such a downturn occur everyone will feel its effect, with or without a tax cut. However, the most likely scenario is that Arizona cities will continue to receive more state shared revenue each year.
The Republican proposal will bring welcome relief to property owners laboring under the burden of drastically increasing property taxes. The Republican plan dedicates $210 million in property tax reductions. It cuts income taxes by 10 percent, benefiting families, consumers, and small businesses.
Musty rhetoric can obscure the facts only if we let it. Citizens of Arizona would do well to remember the words of that great Democratic statesmen, Daniel Patrick Moynihan, who said, “Everyone is entitled to his own opinion, but not to his own facts.”
Kirk Adams
The East Valley Tribune
June 20, 2006
Rep. Kirk Adams represents District 19.
It’s the middle of June, and predictably the temperatures are well above 100 degrees. No one who has lived in Arizona for even a short period of time would reasonably expect anything different
Likewise, the arguments put forward by those opposed to broad-based tax relief are expected and predictable. Like Bill Murray’s character in the iconic movie “Groundhog Day,” they keep doing and saying the same things over and over. The fact that they are consistently wrong is no deterrent. A factual review of the Republican tax-relief proposal exposes the stale rhetoric of the tax-and-spend lobby.
For example, the $525 million in tax relief is little more than 5 percent of the total $10.1 billion budget. Furthermore, the entire amount of tax savings is derived from surplus money. State government collected nearly $1.5 billion in surplus revenue in the last fiscal year. This is money that was not expected, nor was it appropriated in the previous year’s budget.
Even with tax relief, state spending will increase by over 10 percent, not even accounting for needed onetime expenditures. K-12 education will see a nearly $600 million increase. This is in addition to $4 billion of state money it already receives and the millions more in federal dollars. Transportation needs will get $345 million, correctional officers will receive needed pay raises, and many other priorities will see significant increases. Moreover, the 10 percent increase in state spending this year is on top of the 36 percent increase over the last three years. Since 2003 the state budget has grown from $6.5 billion to over $10 billion. This highlights how modest this proposed tax relief really is.
Opponents of tax relief continue to assert that cuts are bad because they permanently obligate future budgets. However, they never seem concerned that spending on new or expanded government programs also obligates future budgets. New government programs bought with new spending will only grow and demand more resources over time. Tax relief actually returns dollars to state coffers by increasing economic activity.
Opponents have also raised the tattered red flag of public safety. They mistakenly state reductions in income taxes reduce the cities’ take of state-shared revenues, bringing imminent peril to the ranks of police and fire. The fact is the dollar amount cities receive will actually increase, barring an economic downturn. Should such a downturn occur everyone will feel its effect, with or without a tax cut. However, the most likely scenario is that Arizona cities will continue to receive more state shared revenue each year.
The Republican proposal will bring welcome relief to property owners laboring under the burden of drastically increasing property taxes. The Republican plan dedicates $210 million in property tax reductions. It cuts income taxes by 10 percent, benefiting families, consumers, and small businesses.
Musty rhetoric can obscure the facts only if we let it. Citizens of Arizona would do well to remember the words of that great Democratic statesmen, Daniel Patrick Moynihan, who said, “Everyone is entitled to his own opinion, but not to his own facts.”
Monday, June 19, 2006
Losers few after state budget gets approval
Robbie Sherwood
Arizona Republic
June 18, 2006
This state budget was supposed to be easy.
The bad old days of recession and billion-dollar deficits of 2001-04 were a bad memory. A surging economy has driven revenues to a record $1.5 billion surplus.
But election-year posturing and deep divides among Republican legislative leaders and Democrat Gov. Janet Napolitano over virtually every issue with a price tag pushed the state to the brink of a shutdown.
Now it's over. And as painful and drawn out as the budget debate was, it's hard to find any losers.
The House and Senate overwhelmingly approved a $10 billion budget plan shortly after 1 a.m. Saturday that delivered huge investments in education, bioscience research, law enforcement and health care. Lawmakers also secured the largest single-year reduction in taxes in state history.
Want more roads and freeways? Got 'em. Want full-day kindergarten? Got it. Looking for money to help fight meth, diabetes, child abuse, obesity and a host of other social ills? It's there.
With only a handful of bills still alive, plus several potential ballot referendums, lawmakers could wrap up one of the state's longest-ever legislative sessions by the middle of this week. If the Legislature adjourns Wednesday, it will be the 164th day of the session. Here's how the winners and losers in the budget battle break down.
Winners:
Teachers and public schools. Napolitano and fellow Democrats won the perennial battle to expand full-day kindergarten statewide and scored every schoolteacher in the state a pay raise to boot.
Business community. Lawmakers cut taxes for the second straight year and threw down some serious cash, $35 million, to jump-start potentially lucrative bioscience and medical research through the 21st Century Fund. The plan includes a permanent income tax cut that grows to 10 percent and $300 million in two years, as well as a three-year timeout for the state's education property tax.
Senate President Ken Bennett, R-Prescott. He gave up on an artificial rule that required all the necessary 16 Senate votes to pass a budget come from Republicans. Instead, he worked hard to make the best deal possible and in the end was even lobbying reluctant House members to get on board.
The glassy-winged sharpshooter. This dangerous little pest just arrived in southern Arizona and could devastate the state's wine industry. A last-second push for $700,000 so the Department of Agriculture can fight the bugs didn't work out. The wine industry was a big winner this session with a new law allowing direct shipments to consumers, but it won't matter if the sharpshooter gets to the grapes first.
Probably winners, time will tell:
Napolitano. Napolitano got her way on full-day kindergarten and teacher pay and landed $95 million for a raft of other social-service, health-care and economic-development programs. But she had to eat income- and property-tax cuts that were both more than she and her now peeved Democrat base were comfortable with.
House Speaker Jim Weiers, R-Phoenix. Weiers was the last on board with the budget agreement among the House, Senate and Napolitano. And he had the hardest time rounding up support for the plan while quelling potential rebellions from Republican conservatives and moderates on either side. But he eventually delivered at least 31 Republican votes for the key budget bills and likely preserved his job as speaker.
Losers:
Sen. Jack Harper, R-Surprise. Harper led with his chin when he went from fiscal hawk to the pork king when he sold his support for a Senate budget plan for a $17 million road project in his legislative district. Harper had earlier criticized his colleagues for pork spending while holding a live baby pig.
When fellow lawmakers nixed the Jomax Road expansion, dubbed "the Harper Highway," Harper's support for the budget melted away.
House Minority Leader Phil Lopes, D-Tucson. House Democrats were the most upset with Napolitano for giving in to Republicans on a $300 million permanent income-tax cut and a three-year suspension of a state-levied property tax that will cost $200 million a year. While most of the 21 Democrats realized the deal was the best they were going to get, Lopes led a small band of five to six members on the far-left wing of his caucus to vote against nearly all the budget bills.
Too soon to tell:
Shared state revenues. Mayors and other city leaders were hitting the panic button over the income-tax cut because it threatened to reduce shared state revenues for public safety and other services. Cities wanted their 15 percent haul increased so the tax cuts wouldn't hurt their budgets. Instead, lawmakers promised to "hold cities harmless" in two years, when cities collect their share of this year's tax haul. The Senate tax cut includes a clause setting aside $717 million in 2009 so cities won't see a drop in revenue that year. But the "pre-appropriation" can be changed by future Legislatures and doesn't address what happens to shared revenues after 2009.
Arizona Republic
June 18, 2006
This state budget was supposed to be easy.
The bad old days of recession and billion-dollar deficits of 2001-04 were a bad memory. A surging economy has driven revenues to a record $1.5 billion surplus.
But election-year posturing and deep divides among Republican legislative leaders and Democrat Gov. Janet Napolitano over virtually every issue with a price tag pushed the state to the brink of a shutdown.
Now it's over. And as painful and drawn out as the budget debate was, it's hard to find any losers.
The House and Senate overwhelmingly approved a $10 billion budget plan shortly after 1 a.m. Saturday that delivered huge investments in education, bioscience research, law enforcement and health care. Lawmakers also secured the largest single-year reduction in taxes in state history.
Want more roads and freeways? Got 'em. Want full-day kindergarten? Got it. Looking for money to help fight meth, diabetes, child abuse, obesity and a host of other social ills? It's there.
With only a handful of bills still alive, plus several potential ballot referendums, lawmakers could wrap up one of the state's longest-ever legislative sessions by the middle of this week. If the Legislature adjourns Wednesday, it will be the 164th day of the session. Here's how the winners and losers in the budget battle break down.
Winners:
Teachers and public schools. Napolitano and fellow Democrats won the perennial battle to expand full-day kindergarten statewide and scored every schoolteacher in the state a pay raise to boot.
Business community. Lawmakers cut taxes for the second straight year and threw down some serious cash, $35 million, to jump-start potentially lucrative bioscience and medical research through the 21st Century Fund. The plan includes a permanent income tax cut that grows to 10 percent and $300 million in two years, as well as a three-year timeout for the state's education property tax.
Senate President Ken Bennett, R-Prescott. He gave up on an artificial rule that required all the necessary 16 Senate votes to pass a budget come from Republicans. Instead, he worked hard to make the best deal possible and in the end was even lobbying reluctant House members to get on board.
The glassy-winged sharpshooter. This dangerous little pest just arrived in southern Arizona and could devastate the state's wine industry. A last-second push for $700,000 so the Department of Agriculture can fight the bugs didn't work out. The wine industry was a big winner this session with a new law allowing direct shipments to consumers, but it won't matter if the sharpshooter gets to the grapes first.
Probably winners, time will tell:
Napolitano. Napolitano got her way on full-day kindergarten and teacher pay and landed $95 million for a raft of other social-service, health-care and economic-development programs. But she had to eat income- and property-tax cuts that were both more than she and her now peeved Democrat base were comfortable with.
House Speaker Jim Weiers, R-Phoenix. Weiers was the last on board with the budget agreement among the House, Senate and Napolitano. And he had the hardest time rounding up support for the plan while quelling potential rebellions from Republican conservatives and moderates on either side. But he eventually delivered at least 31 Republican votes for the key budget bills and likely preserved his job as speaker.
Losers:
Sen. Jack Harper, R-Surprise. Harper led with his chin when he went from fiscal hawk to the pork king when he sold his support for a Senate budget plan for a $17 million road project in his legislative district. Harper had earlier criticized his colleagues for pork spending while holding a live baby pig.
When fellow lawmakers nixed the Jomax Road expansion, dubbed "the Harper Highway," Harper's support for the budget melted away.
House Minority Leader Phil Lopes, D-Tucson. House Democrats were the most upset with Napolitano for giving in to Republicans on a $300 million permanent income-tax cut and a three-year suspension of a state-levied property tax that will cost $200 million a year. While most of the 21 Democrats realized the deal was the best they were going to get, Lopes led a small band of five to six members on the far-left wing of his caucus to vote against nearly all the budget bills.
Too soon to tell:
Shared state revenues. Mayors and other city leaders were hitting the panic button over the income-tax cut because it threatened to reduce shared state revenues for public safety and other services. Cities wanted their 15 percent haul increased so the tax cuts wouldn't hurt their budgets. Instead, lawmakers promised to "hold cities harmless" in two years, when cities collect their share of this year's tax haul. The Senate tax cut includes a clause setting aside $717 million in 2009 so cities won't see a drop in revenue that year. But the "pre-appropriation" can be changed by future Legislatures and doesn't address what happens to shared revenues after 2009.
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