Yesterday marked the passage of Arizona's latest budget, and I think it is safe to say that no one is happy.
Fundamentally, revenues have crashed since the implementation of the 2.5% flat tax rate statewide pushed by former governor Doug Ducey. As a reminder, the flat tax was proposed after Proposition 208 passed in the 2020 election, which would have taxed income exceeding $250k/year to go toward schools and teacher salaries. While the proposition was eventually declared unconstitutional, the legislature's attempts at curtailing its effects by implementing the flat tax has wreaked havoc on our state budget.
Additionally, the Empowerment Scholarship Account (ESA) (School Voucher) program is costing the state and its taxpayers $1 billion a year. While school choice has been a popular mantra in recent years, results have shown that the program is mostly benefiting wealthy families that already send their children to private schools. Costs are soaring, and how does the newest budget accommodate? No changes, no accountability, and absolutely no program spending limit. I personally would like to see the program reverted back to the way it was years ago: restricted in use for students with special needs that are not met by their local public schools.
When it comes to the public institutions that the state is responsible for funding, we are seeing cuts across the board. With education, dollars are being diverted away from low-income K-12 schools, the Arizona Promise Program has had its funding cut, the Arizona Teachers Academy, the front line for getting teachers into classrooms in Arizona, has also had its funding cut. Our weakening public universities have had their funding cut. We continue to see a political prioritization by the legislature in giving a blank check to for-profit institutions while gutting educational institutions that teach the public. The clause that education should be "as nearly free as possible" in our state constitution is a faint rallying cry that we stray further from every year.
Education is something I care deeply about, so it is the main focus of this rambling; the budget is full of examples of prioritizing everything except what will help people.
The $1.14 billion opioid settlement is being paid to the state and local governments over 10+ years; its money is set (and is required) to tackle the opioid epidemic. With this budget, the legislature has illegally allocated funds from the settlement to cover budget shortfalls instead of using the existing rainy day fund for the exact purpose it exists for. Attorney General Kris Mayes said she will sue over the illegal use of these funds.
We have this awful budget, but it is important to note how we got here. The democratic party isn't used to being in power - Arizona had a "red trifecta" for two decades before Katie Hobbs was elected to the governorship. There seems to be an inability for the governor to flex some political muscle and negotiate anything for the benefit of the people of Arizona - is it fear or inexperience? We have ended up with a budget deficit self-inflicted by our state government resulting in a crisis that requires bold leadership where none is to be found. The casualties are, and will continue to be, the people of the great state of Arizona.
At the end of the day, we are the only ones who can fix our state government. State primaries are July 30th (registration deadline July 1) and the general election is November 5th.