Arizona Education Network

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It’s beginning of a new year and a new legislative session began this week. This update recaps the end of the last legislative session and provides information on what to expect going forward.

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End of Year Wrap Up.  How did 2009 end?

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The Arizona Legislature ended the year without a balanced budget.  In the fifth and final special session, the Legislature cut $194 million from the general budget but was unable to muster the votes to send the Governor’s sales tax increase to the ballot or to ask voters to rollback voter-approved measures, such as Prop. 301, which helps fund teacher pay.  In November, the Legislature cut an additional $144 million from K-12 education.  School districts had already budgeted for this anticipated mid-year cut, so it did not affect day-to-day school operations.

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The Legislative Session Began This Week.  What should we expect?

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Sadly, more of the same.

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Arizona is facing an unprecedented budgetary crisis.  Not yet through the current fiscal year, our state begins 2010 with a $1.5 billion deficit and an estimated $3.4 billion deficit for the 2011 fiscal year.  Read more in The Arizona Daily Star, House gives preliminary OK to budget bill, cuts, fund transfers.  The state’s financial situation continues to be precarious, with the Treasurer’s office borrowing money to keep the state afloat.  Arizona’s bond rating has also been downgraded, which means the state will have to pay higher interest rates on the money it borrows.For more information, see:  The Arizona Republic, Brewer OKs $194 mil in budget cuts despite concerns.

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Last week, House Speaker Kirk Adams and several other legislators from the majority party said they plan to introduce legislation to decrease corporate income and property taxes.   The proposal also includes cuts to individual income taxes.  Read the Associated Press article. Adams said these tax cuts are aimed at job creation and encouraging economic development.  The package’s corporate income tax would reduce the current rate of nearly 7 percent to 4.5 percent over four years starting in 2012.

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Given the fact that Arizona faces a major budget crisis, this is not the time to reduce revenues further. Arizona already has a long history of tax cuts.  In 2006, the state Legislature gave away $600 million in income and property tax cuts.  Arizona reduced its individual income tax by 10 percent in 2006 and 2007, and the new proposal would cut it by another 10 percent over four years starting in 2012. (Adams said that reduction is needed to benefit small business owners who don’t file corporate returns.)

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If past is prologue, it would be worth noting that the 2006 tax cuts didn’t grow the economy or create job growth.  In fact since 2007, almost 300,000 Arizonans have lost their jobs. It’s time Arizona learned from its past and invested in its future.  We need to protect funding for public education and core state functions.

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In addition, Adams’ income and property tax cuts also conflict with Governor Brewer’s sales tax increase proposal.  The Legislature refused to pass the governor’s tax increase without these tax cuts during the December special session.

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Governor Brewer:  What’s her plan?

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Gov. Brewer gave her “State of the State” address on Monday.  In it, she reiterated that the state’s budget problems cannot be solved by cuts alone. “The damage done to education and public safety would be far too great,” she said.  While she may support tax cuts down the line, she said we must raise revenue now to get out of the current crisis.  With regard to education, she also called for allowing individuals without formal education training to teach and holding children back who can’t read after third grade. Read Governor Brewer’s Speech.

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After the “State of the State” address, Brewer told the Arizona Education Network that she understands the value of public education, especially as to job creation.  Her aides said that she will not ask the federal government for a waiver that would allow the Legislature to cut K-12 education below the 2006 funding levels.  After last the December cuts to education, we are currently at 2006 spending levels. If the state cuts below those levels without a waiver, it risks losing millions in federal stimulus funds and being knocked out of competition for a new federal education grant called ”Race to the Top”.

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On Friday, Brewer will release her specific budget proposals, which will detail the additional cuts and revenue increases she will support.

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Take Action

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·        2010 is an Election Year.  All state legislators, as well as the Governor and Superintendent of Public Instruction will be up for election. Vote for Public Education! Former state representative Pete Hershberger (LD 26) recently wrote a column in the Arizona Daily Star, “When Legislature Fails Education, Parents, Community Must Pick Up Slack.”  Hershberger, a member of the majority party, emphasizes the importance of parental and community involvement in supporting public education.  He stresses that the number one thing community members can do in support of our schools and students is to vote.

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·        Know who represents you and hold them accountable, Find your legislator! How did they vote?

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·        Call, write and email Gov. Brewer and tell her to continue to defend public education and ask her to stand firm when legislators pressure her to ask for a federal waiver to cut below the 2006 K-12 funding levels, Governor Brewer’s Record on Education.

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·        Register to Vote!

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·        Sign up for the Permanent Early Voter List.  You will receive every ballot in the mail, which makes voting much easier.

o   Pima County Early Permanent Ballot Request

o   Maricopa Early Permanent Ballot Request

o   All Other Counties Early Permanent Ballot Request

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·        Join Us! If you have not done so already and forward this information to a friend.

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