State Budget Overview

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.