Proposition 100: The 1% Temporary Sales Tax Increase–Your Questions Answered
Your Questions Answered! Updated 4/24/10
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The Arizona Legislature is asking voters to temporarily raise the sales tax by 1%, until May 31, 2013. To see the transmitted bill, click here. The election will take place on Tuesday, May 18, 2010. The following is information that will explain the proposition’s potential impact.
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What are the specifics of Proposition 100?
Proposition 100 proposes a 1% increase (one-cent per dollar) in the Arizona state sales tax. Two-thirds of the revenues generated would fund k-12 education and the other one-third would fund health and human services and public safety. The sales tax would automatically repeal on May 31, 2013.
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Will it really repeal automatically?
Yes, it will repeal on May 31, 2013. It would take a two-thirds vote of the legislature or another voter proposition to keep the tax increase in place.
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Why didn’t the legislature just pass the sales tax increase?
Governor Brewer asked legislators to pass it but it failed. In Arizona it takes a two-thirds vote to raise revenues and there are 31 legislators who have signed an oath to Washington special interest lobbyist Grover Norquist, promising to never raise taxes in Arizona–no matter what the situation. To read more about the Norquist Pledge, click here.
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What is the state of education funding now?
Arizona per-pupil funding is currently among the lowest in the nation. In addition, Arizona schools have already absorbed several rounds of cuts in 2009. Due to these cuts, Arizona schools are experiencing increased class sizes; cuts to extra-curricular activities and athletics; and the loss of PE, music, librarians, books and even paper.
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What happens to education funding if Proposition 100 does not pass?
If the temporary 1% sales tax does not pass, as much as twenty percent of all public education funding could be cut! This could mean 1.5 to 2 of out of every 10 teacher positions may be eliminated.
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Will there be additional cuts to public schools even if Prop 100 passes?
YES. Even if Proposition 100 passes the revenue raised is not enough to close the budget gap. Additional cuts to education proposed include:
- Reduction of state funding per-student from current levels to FY2005-06 funding levels.
- Elimination of state funding for Gifted Programs, Teacher Training, Adult Education and GED, and the Early Education Block Grant.
- The elimination of the Full-Day Kindergarten funding rate ($218 million)
- Reduced funding for Charter Schools ($10 million)
- No funding for regular School Building and Maintenance. Only $5 million for emergency maintenance state-wide.
- Reduction of support for Community Colleges and Universities to FY 2005-06 levels. Per-pupil support would drop for universities from $9,480 to $7,100 per student
Updated information – click on the following for specific school district or university/community college information: Conditional Cuts to Arizona School Districts, Conditional Impact on Arizona Universities. According to the conditional budget, if Proposition 100 fails to pass the following cuts to education funding would occur: $428 million loss to K-12, $107 million loss to universities, $15 million loss to community colleges.
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Since the election isn’t until May 18th, will there be a budget before then?
Two budgets have been passed by the legislature and signed by the governor. The first budget includes the revenue raised by the one-percent sales tax increase. The second is a contingent budget – passed in case Proposition 100 fails on May 18. The contingent budget makes further cuts to programs to make up for the $900 million deficit that would persist if Proposition 100 is defeated.
The contingent budget includes cuts so drastic that the state would lose millions of dollars in federal matching funds. This loss of federal funds would far outweigh the savings to the state from the cuts. If Proposition 100 fails, the legislature will likely return to address the potential loss of federal funds even though they have passed this contingent budget.
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The amount from the sales tax apportioned to primary and secondary education is $600 million but there is only $428 million in conditional cuts to K-12 education in the FY2011 budget if Proposition 100 is defeated – why is that?
This is not some kind of bait-and-switch tactic as suggested by opponents of Proposition 100. It is simply the result of the choices made from where to cut in the conditional budget –the budget that was prepared and passed in case Proposition 100 fails on May 18. The initial estimate in cuts to K-12 was closer to $600 million however when the state’s conditional budget was drafted there was such an outcry from constituents and stakeholders over the cuts to K-12 that the Legislature responded by lessening the cuts to K-12. Instead they apportioned an additional cut of $107 million to universities, $15 million to community colleges and universities and the balance of $50 million to health and human services. Keep in mind that the contingent budget that would be put in place if Proposition 100 fails includes cuts so drastic that the state would lose millions of dollars in federal matching funds. This loss of federal funds would far outweigh the savings to the state from the cuts. If Proposition 100 fails, the legislature will likely return to address these issues regardless of the conditional budget. If Proposition 100 is approved the beneficiaries will be education, public safety and health and human services.
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What does Proposition 100 mean for the economy of Arizona?
A new study by researchers at the Economic and Business Research Center at the University of Arizona finds that a yes vote on Proposition 100 would save more than 13,000 jobs and preserve more than $442 million in federal matching funds for Arizona. For more details and a link to the study, go to our post Passage of Proposition 100 Will Save 13,000 Jobs, UA Study Predicts.
Education is inextricably linked to a healthy Arizona economy. In order to attract businesses to Arizona, the state must provide a strong public education system. If these drastic cuts are made, companies may not only fail to relocate to Arizona–they may leave. These cuts may also imperil Arizona’s military bases. Many civilian jobs already remain unfilled at bases due to the lack of qualified workers. In addition, military families may choose to avoid a state with diminished funding for education. See Presidents of DM-50, Ft. Huachuca-50 & Fighter County Partnership Pen Letter to Gov. Brewer about Education Cuts.
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Why am I hearing that’s Proposition 100 is really an 18% increase?
The 18% refers the increase in the current tax rate of 5.6% to the proposed rate of 6.6% (if Proposition 100 passes). That is a simple mathematical difference of 17.85%. What opponents of Proposition 100 have done is spin that to create the perception that the increase is really 18 cents on the dollar. Proposition 100 is a one-percent sales tax increase or one-cent on each dollar spent–ONE PENNY! If you purchase a DVD player for $100 you would pay an additional $1 not an additional $18.
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Will money raised by Proposition 100 be used to pay for corporate tax cuts?
Money raised by the one-cent sales tax increase is mandated to go to education, health and human services and public safety. While a corporate tax cut is being discussed, the latest information we have is that it has been significantly reduced in scope and the governor is threatening to veto the corporate tax cut if it overlaps with period of the sales tax increase (i.e. it cannot begin until after May 31, 2013).
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Will Arizonans pay higher property taxes if the temporary sales tax is not passed?
If Proposition 100 does not pass, Arizonans could pay more in permanent property taxes. Why is that? The Department of Corrections will shift prisoners to county jails, which do not have the capacity right now to house them. Counties will have to increase property taxes in order to fund new jail cell construction.
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Why is Proposition 100 important to our senior population?
Arizona seniors have a stake in education too. The link between education and economic growth is key to the future of our state and no one understands that better than our seniors who have seen the economic benefits of education throughout their lives. Moreover, if Arizona fails to fund quality public education, our professionals–doctors, lawyers and accountants–may leave for states that provide better educational opportunities for their families. High-quality education also correlates to higher property values and lower crime rates. Seniors will also benefit from the one-third of the temporary sales tax devoted to public health and safety. No one wants to see the early release of convicted criminals.
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Who supports Proposition 100?:
This proposition has a broad spectrum of bi-partisan support throughout Arizona. For a list of corporations, businesses, advisory groups and citizens showing their support, visit here.
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What can you do?
- Register to VOTE and apply to receive a permanent early ballot. Click here for links to your county board of elections.
- Early voting begins on April 22, 2010; the last day to request an early ballot is May 7, 2010.
- Stay informed: Sign up for our newsletter.
- Talk to your family, friends and neighbors about Proposition 100 and its importance to the economic future of Arizona. To download a version for distribution, click Proposition 100 flyer.
- Go to our Proposition 100 Tool Kit: Everything You Need to Get the Word Out in Your Community
Downloadable PDF Proposition 100 Fliers:
In English: Proposition 100 Flyer
In Spanish: Proposition 100 Español
- Check out the debate
On April 11, 2010 Arizona Public Media hosted a Proposition 100 Debate/Panel Discussion called “Proposition 100 Fix or Folly: The Pros and Cons of Sales Tax Measure to Fix Arizona’s Budget Shortfall.” Below is a feed of the 60 minute debate represented by both sides of the issue.
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* COMMENT POOL / MODERATOR UPDATE *
We all hear conflicting information about Arizona’s tax rates, and some of the more common misconceptions have been repeated in this comment thread.
We hope that people who are interested in this issue will look beyond the sound bites. If you have questions about our state tax rates or would like to verify claims that you have heard about Arizona tax levels, we recommend the following resources:
- Riding the Fiscal Roller Coaster: Government Revenue in Arizona, 95th Arizona Town Hall, November 2009
- The Tax Burden in Arizona, ASU Office of the Economist
- Tax Foundation – Conservative tax watch-dog group. Recent articles on Arizona that can be found on this page include:
- Arizona’s State/Local Tax Burden Below National Average
- Arizona’s 2010 Business Tax Climate Ranks 28th
- Arizona’s Individual Income Tax System
- Arizona Sales and Excise Taxes
- Arizona Property Taxes Comparatively Modest
- Federal Tax Burdens and Expenditures: Arizona is a Beneficiary State
- Arizona General Fund Spending as a Percent of Arizona Personal Income, Joint Legislative Budget Committee (JLBC)
- Retirement Living, Tax Burdens by state.
I am voting yes. I want my three young children to have an educational experience that does not include class rooms that are over populated or at the expense of an over worked teacher because there is not enough funding to hire more qualified teachers. Our children will be our future leaders, I want to invest in my future.
I have a couple of concerns: The language in the bill says the 1% in taxes collected will be put in the general fund and it “shall” be distributed as follows: 2/3 to primary and secondary education and 1/3 to health, public safety, etc. I take this to mean that intention of the Governor and Legislators is to distribute the tax as described. My concern has to do with putting this money in the general fund and then using it for other purposes since there is no command to use it as stated. I firmly believe that we need these funds as described on the ballot, but I simply don’t trust the conservative make-up of the Legislature to adhere to the “intention”.
I don’t understand why people don’t care about education in general in this state. I am AZ high school graduate, was a high school teacher in Mesa for three years, and now I’m working for Maricopa Community College. I have seen the need for funding from all these different levels. If PROP 100 doesn’t pass it will hurt our economy in the long run. In the next few years a number of AZ teachers are retiring, and there will be a shortage of teachers again, similar to 5 years ago when I started teaching.
Please vote Yes!!
I want to vote. I live in El Mirage AZ where can I go vote??
Hi Angie:
Here is the link to the City of El Mirage’s voting information website. The place where you vote is determined by your home address.
If you still aren’t sure where to go, please call Maricopa County’s election office (602-506-1511) and they will give you the exact address of the polling place!
Stop funding Charter Schools! Down size Administrators in the public school system, go to a 4 day school week for High Schools, make high school dropouts pay for their own adult education and GEDs, ensure the illegals are not sponging off the public health system, stop frivolous health care (treat necessary ailments). There is so much that can be done instead of paying additional taxes.
Keep funding Charter Schools! I went to a public high school and the classes were way too big for me to learn anything. Now I go to a Charter School called xxx (AEN admin: Edited to remove additional identifying information on a student). They have a lot of great teachers and students. I have learned so much in my past three years being here. Charter Schools are the way to go.
I don’t think it has to do with conserative or liberal, I think it just has to do with trusting politicians in general. Unfortunately, it doesn’t sound like we have much choice because the alternative is do nothing and that is much worse, I think. Yes, there is much government waste like Ric says, but the issue goes much deeper than that even.
I will be voting yes and praying that our Governor does the right thing for the people of Arizona. After all, it is up to us to ensure that she does.
I will be voting no. It is time to reduce spending. It is unfortunate they cut from education, however all of the state’s funding needs to be looked into and reduced. And if you think this will go way after May 2013 you live in a fantasy world. Once they have it in place it will be easy or them to get a revote and keep it or re-ballot it. If you think I am wrong look at history and see how many taxes have been repealed in the past.
@John H Pavkovich
Tax the people that have children in public school. More than likely Jon, you don’t have kids in school. I will pay the extra 1 cent per dollar to see that my child has a reduced population in his class. Send me the bill, I will pay!
I just voted NO to Prop 100 today via early ballot. If 51% of AZ voters agree w/ me don’t blame us for cuts in education, healthcare and public safety – blame whoever cuts them! There are many other government programs to cut. Why don’t the people who want more of our money threaten to take all the other programs away? Because they know you don’t care about them as much and it won’t cause you to vote to give them more money.
When has the government not needed more money for schools? They ALWAYS need more money for schools. Why is nobody talking about where all of our tax money is going. Why isn’t there a greater %age allocation to the schools if AZ is really one of the lowest ranking in the country for school funding? Why is it that the city and state government employees don’t have to take the same paycuts that their private sector counterparts are taking right now? Has anybody looked at the costs for government pention liabilities?
Please think about this!!! More money is the easy answer for the government while a tax of this sort is hardest on the poorest families in this state.(the lower the income, the bigger the impact of an increase in the price of essential goods and services).
I have not yet heard the argument for why so many cuts are being proposed to education and basic public safety as opposed to other areas where the government spends. Why are we giving our government a free pass on blowing all of its revenue(our money) by simply saying, “well, if you need more for the children than how can we object to that.”
This proposition sets a bad precedent for the government to continue being irresponsible!
Between the last two years,the state has cut about $3 Billion in different areas. Most schools are raising class sizes and cutting services. There has been 145,000 new students since 2004 while we are now back at the money level of 2004. Please think of the long term consequences.
@our country is going bankrupt
I am a kindergarten teacher and my students would be falling very far behind with half day kindergarten. What they are required to learn in kindergarten now is what I learned in both first and second grade when I was in school. If we do not pass this, many students will fall farther behind and loss many different services. Almost all extracurriculars besides sports are being cut and even some sports will be cut. Think about the long term, how will these students become productive citizens with well paying jobs if they do not learn now. Will we have the money to build the extra prisons for those students that have not received a proper education and have no other option? I would prefer to have my students to become a productive member of society instead of a criminal. In addition, some states have much higher taxes on homes. Which would you like a major hike in your home taxes or a miniscule jump in sales tax? I know which one I would choose.
@Melanie
They said here on this page that they are cutting funding for full day Kindergarten whether this passes or not.
@Alie
Hi Alie:
While it is true that funding for all-day Kindergarten has already been eliminated, many school districts are trying to figure out how to keep their existing program. Some districts have already elected to introduce a fee-based program, while others have made contingent plans to continue paying for the program if Proposition 100 passes. If Prop 100 fails, it will obviously be more difficult for school districts to make this accommodation.
The decision on how to handle the loss of all-day Kindergarten funding is being made on a district to district basis, so people should refer to their local district’s website for more information.
It doesn’t say who/what “health, human services and public safety” is exactly. That’s a pretty broad area?
Voting ‘no’… it is wrong to continue increasing taxes and not act fiscally responsible. Stop cutting education, and cut what really needs to be cut. Forcing a tax increase to cover education (which appeals to peoples emotions) is not fair to avoid addressing the real cuts that need to occur.
Everytime I see a bill with the wording “public safety” on it I read “photo enforcement”. Our government is desperate to keep these obomonations, because if funded they will make a ton of money. I think that it is dispicable that they may try and sneak it through the door with education as the cause. Give all three thirds to education and I’ll vote yes. Until then NO.
Does anyone know how much postage the early ballot requires?
@Barb
no postage required as indicated in the upper right hand corner of the envelope
@John H Pavkovich
“It is unfortunate they cut from education, however all of the state’s funding needs to be looked into and reduced.” This won’t help schools now!
@Micah
Copied from:by Jack Lunsford – Apr. 25, 2010 12:00 AM
One question I’ve heard often: Will Prop. 100 really be temporary, or is it a trick being played on the voters of Arizona, who, having agreed to pay an extra penny for three years, will then find ourselves paying that increase forever after?
The answer is simple because it will actually be written into the Arizona Constitution: Prop. 100 will terminate on May 31, 2013. That’s it. End of story, barring either one of two extraordinary events:
This tax, while needed, is merely the tip of a much greater problem. Wouldn’t you to see more than one proposition on the voting ballot? Talk about waste of money! The last several ballots I’ve seen had only one proposition.
Wouldn’t you also like to see only one issue per proposition, no trailers (the bailout was 14 pages yet there were over 400 pages in the bill that padded all the congressional pet projects along with it). There is so much they do not tell the public.
Remember, when you vote, what the AZ legislature is doing to this state when they come up for re-election. I don’t believe they should serve more than 2 terms and then not consecutive. Too many of these people have literally made a career out of raping the state which they claim to serve. They have more power than they deserve.
The government agencies that serve the people work at or greater than 15% below the current rate of similar private sector jobs in exchange for security in position and are not legally allowed to accept gifts AT ALL. So why are legislatures allowed to receive gifts, perks, and even vacations yet not claim the value on their taxes like waitresses have to claim tips? Don’t believe It? Stop by the Capital building and see the tent on the east side with the perpetual buffet laid out for the legislators and their staff any day of the week they are in session. Try and partake of that buffet as a citizan and get escorted away! Why do legislators get paid a per diem for doing their job????
Looking at the big picture, stimulating the economy in the state goes beyond bringing more industries in and offering them tax breaks and incentives. Encouraging tourism doesn’t work when the parks and rest stops are closed. Having an industry pillaging state resources and polluting the land and water while getting tax breaks is counter productive as well. (If they pollute, slap a fine AND make all tax incentives null and void the way a credit card company does if you miss a payment).
Running a state is a business, how does someone who has never had to worry about a personal budget create a budget to run a state? Time to hire an accountant!
Will the tax increase go into the general fund? If this happens what guarantee is there that the money for education will not be diverted to something else. That is my biggest concern. I want to vote yes, but only if the money will go to education.
Didn’t you just read that adult education and GED are going to be cut? What is a penny per dollar to you? It could mean the difference in a child’s education and future. You’re lucky Arizonan’s are taxed so little. This is in the interest of the community and state. @Ric
@Darren Eyring
My feelings to the exactly!
Arizona needs to change the way they fund education. Most states pay higher property tax and that revenue goes to public education. I’ve heard the argument that if they “stick it to the kids” the parents will finally get involved and “force a change”. I am not willing to offer up my children’s education to get our legislators to realize there is a serious problem in this state. It is criminal what is being proposed to my children’s education. This is our future and it’s not okay to hurt our children in a political game. Please vote yes for the future of our country.
Does the money for education go directly to fund instruction adn the materials to do so? Will these monies be used to fund pensions?
Will teachers be getting pay raises if prop 100 passees? If the answer is yes, I will never. Vote for this prop!
Hi Jamie:
Proposition 100 will not be providing ‘additional’ funding for education – it will just provide another source of temporary revenue to help reduce the cuts to education and community services. Our Arizona schools have already seen a wave of budget cuts over the last few years, and this year the cuts are deep enough that we will see more teachers lose their jobs regardless of whether or not Proposition 100 passes.
Voting ‘Yes’ for Proposition 100 will help bridge a small part of the deficit and allow schools to hang on to existing teachers. Arizona already has the highest classroom sizes in the nation, so any reduction in teaching staff puts a tremendous amount of pressure on students, existing teachers and school resources. Though wages are decided on a district-by-district basis, pay raises aren’t even on the radar when so many jobs are at stake and essential positions (librarians, etc.) have already been eliminated in many schools.
I appreciate the media blitz for Prop 100. It would be advantageous if you would give a date for voting. Every advertisement I have seen on TV never mention when the voter can vote. I hope this is done soon.
Peace,
Marv
Hi Marv:
Thanks for the great idea – we’ll definitely pass this along to the Vote for Proposition 100 committee!
Though the Arizona Education Network has endorsed Proposition 100, we are a volunteer group that operates with very minimal funding. I’m afraid that we can’t take the credit (or the criticism!) for any television advertisements surrounding the Proposition 100 election.
I agree Micah,
“Forcing a tax increase to cover education (which appeals to peoples emotions) is not fair to avoid addressing the real cuts that need to occur…”
The real issue is no one is being held accountable for the irrespobsible spending. But for me, I am voting Yes, because regardless the government will get their money. As stated if Prop 100 doesn’t pass property tax will go up…
“If Proposition 100 does not pass, Arizonans could pay more in permanent property taxes. Why is that? The Department of Corrections will shift prisoners to county jails, which do not have the capacity right now to house them. Counties will have to increase property taxes in order to fund new jail cell construction”
It is what it is at this point and we Arizona citizens will pay for it regardless, so if I must choose the less of the two it will be to fund schools etc and not increase my property taxes and than who knows where the money will go from that increase…(shaking my head) it seems we will be at a lost either way
As a parent in Arizona I am concerned that the first place we start to cut spending is education and Public Safety. These are 2 things that should be our first concerns. We need to look to our future and not just to the end of our noses. We need to find a permanent solution to our financial burdens not just put a “bandaid” on it. I agree that the tax increase would help and am willing to support it but, we need to figure out where we can fix the issues. If our electric bill is too high, we would look for where we could fix the leaks…wouldn’t we? If our car was leaking oil, we would fix it without sacrificing the gas to run it. Education and Public Safety are like the gas, they are a necessity.
No and NO!!!! No more taxes!
People are just crazy. We are 50th in the states for funding in schools. If this prop fails are children will suffer. Many people are upset that they have to pay taxes. Many other states have higher taxes. You have to PAY FOR A GOOD EDUCATION IT DOES NOT COME FREE! wAKE UP PEOPLE AND VOTE YES ON 100!!!!
Prop 100 conundrum:
I voted yes … begrudingly.
As a strong advocate of quality education in our state, the vote on Prop 100 is surprisingly difficult for me. I believe that investment in the education of our children is paramount to a quality future for all Arizonians. My problem is giving more money to the state to administer on our behalf for the education of our children. I feel like it is strikingly similar to seeing undernourished children and my only option is to give money to their crack-head parents and hoping that they actually buy food with it.
Living in Arizona for some 35 plus years I remember when the lottery was going to fix education and the tobacco lawsuit, not to mention tobacco taxes, was going to fix healthcare and here we are with both in shambles. I have no faith in our legislature, locally or nationally, as accountability for both seems to be non existent.
As I sit here congress is “interviewing” the Goldman Sachs people and I have watched similar dog and pony shows for the banks and the automakers. I have no idea what good comes out of any of this. I agree we need some answers on many of these topics. My question is when do we get to sit in the big chairs and grill our representatives about the crap that they pull … but I digress.
I’ve already voted yes and have written on my car windows to VOTE YES PROP 101. Please vote yes….think of our children.
THANK YOU Sara good idea!
Please vote yes!!!!!!!!!!!!!
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Thank you,
Your AEN moderators.
Would you please tell me when Proposition 100 goes into effect. I totally support the Proposition and voted for it. I am unsure when the new tax goes into effect.
Thank you for a prompt reply.
Hi Don:
The temporary sales tax will go into effect on June 1, 2010 and the constitutional repeal date for the tax is on May 31, 2013. You can find a link to the full legislative bill here .
Thanks for your question!
Lisa Hawkins, today’s site moderator