Before we move on to  the statistics, however, we want to send a big THANK YOU out to everyone who helped support the Yes on Proposition 100 campaign.  The strong coalition of parents, educators, business people, retirees and students was remarkable.  Many people put in a tremendous amount of volunteer hours to get the word out, and many more people took the time to look past the soundbites and thoughtfully analyze our state, school and public service budgets.

Thank you, thank you to all of you.

The most recent results from the Arizona Secretary of State:

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Stephen MacCarthy, Vice President External Affairs, University of Arizona: The university sustained $100 million cut in 2009 with 600 positions eliminated.  If Proposition 100 fails, there will be an additional $42 million in cuts.  Another cut would impact personnel, as well as financial aid and resources to students who are already facing a tuition hike. In addition to the 2009 cuts and the contingent cuts if Proposition 100 fails, there is also ”a cliff” in July, when the federal maintenance of effort protections “disappear.”  “What this means,” MacCarthy said, “is that it is not unrealistic to expect that in a 36-month period, we could be looking at a cut at the University of Arizona of as much as 50% of our original state funding. That is the steepest, fastest decline in the history of higher education funding.” During the great depression, funding for universities actually went up.  We risk losing professors and the grants they receive, which bring revenue to the community.
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Dr. Nic Clement, Superintendent of Flowing Wells, Co-Chair of the Tucson School Superintendent Collaborative: In order to attract quality teachers, employees and workers, you have to offer competitive pay.  “If I thought we were wasting money, I wouldn’t be up here today.” If Proposition 100 doesn’t pass, approximately $91 million won’t be coming to schools in Pima County. “You have to think of it as [$91 million] not coming to our economy.” What’s more, Dr. Clement pointed out, laying off teachers and paying their unemployment benefits will be a significant cost to districts.  Districts will have approximately 1,000 layoffs in addition to salary cuts. Layoffs could result in the payment of approximately $9 million for unemployment benefits for teachers.  In addition, unemployed teachers result in the loss of state income taxes that won’t be collected due to those layoffs. “If you have questions, call your school. Talk to your school board members. They want you to know the facts.”
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Part Two
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Sue Krahe, Our Family Services, Director: “Many of us who work within the human service field, especially in the area of mental health, are just appalled by what is going to happen if Proposition 100 fails.” Services to our states most vulnerable are going to decline further.  Calls from individuals in crisis/need will continue.  “I don’t know where the help is going to come from. So we’re going to fill up your jails . . .  police are going to get busy again, and there aren’t enough police to get busy again.” Services that protect children concern Krahe the most should Proposition 100 fail.  “The number of homeless is skyrocketing. Take ten people with you to the polls. We need to vote ‘Yes’ on 100.”
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Penelope Jacks, Children’s Action Alliance, Southern Arizona Director:  Ms. Jacks spoke about the impact on children and children’s services.  She provided a Children’s Action Alliance handout for the forum.  Specifically, there will be an additional $50 million reduction from the Department of Economic Security (DES).  There are no details as to where the cuts will be made or how the cuts will impact services.  Jacks suspects the reason specifics have intentionally been left out is “any time you name a service to be cut, you create an interest group around that service.”  Jacks stated that if Proposition 100 does not pass, “the blood that is gushing from these cuts already will be falling on the floor.  Not one dollar that would come from Proposition 100 goes to restore a cut.  All it does is go to avoid greater cuts to come . . . If Proposition 100 does not pass, the budget that we will see will make our state unrecognizable.”
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On March 24, 2010 the Arizona Education Network held two press conferences in Phoenix and Tucson to release the 2009 Legislators’ voting record regarding public education funding.  You can visit the post with the table of records here.  Please see below for the press conference transcript as well as resulting publications.

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Press Conference Transcript:

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Thank you for joining us today.

We are all parents with the ARIZONA EDUCATION NETWORK–we are a group founded a year ago by parents from various school districts who were concerned about what was happening to Arizona school funding.

We are a non-partisan, independent, non-profit organization with no ties to any outside groups. We have a website where we regularly post analysis of education issues as well as breaking news.

Recently, we decided to take a closer look at the voting records of our legislators on education funding issues during the 2009 legislative session. As you know, because of decisions made during that session, our schools experienced deep, deep cuts.

And we weren’t starting from a very healthy place to begin with, considering we consistently rank at the bottom nationwide in per-student spending.

Our children this school year have experienced the effects of those cuts in the way of much larger class sizes; the loss of teachers at their schools; the elimination of librarians, counselors, art and music teachers; the lack of funding for basics such as books, computers, paper and even toilet paper.

What’s on the horizon is even more bleak: All of those cuts will be continued, plus the loss of all-day kindergarten and funding for gifted programs are guaranteed. If PROP. 100 doesn’t pass on May 18, our schools won’t just be on a starvation diet; they will start losing limbs.

Many legislators, when they return home to their districts tout themselves as education supporters. No one likes to be seen as being against education. However, clearly these voting records prove that some legislators were willing to stick up for schoolchildren and others were not.

We think it’s important for voters to see who supports education funding and who voted against public education funding 100 percent of the time in the last legislative session.

Forty of our ninety legislators, almost half, voted against public education funding 100 percent of the time.

When parents start to get mad at their principals, or their superintendents, or their school board members because of what’s happening at their children’s schools, we want them to remember who really is to blame for the predicament we face.

And, we want them to remember that when they go to vote in the August primaries and the November general elections.

We also want to remind Arizonans that it’s not just our state’s schoolchildren who are affected by these votes. These aren’t just votes against children–they are votes against every Arizonan.

Why?

A vote against education funding is a vote against businesses.

A vote against education funding is a vote against our military bases.

A vote against education funding is a vote against higher property values.

A vote against education funding is a vote in favor of more and more incarceration. (As we can see here today, that’s a booming business in Arizona. [A private prison event was happening at the same time at the Capitol.])

Everyone knows that businesses are attracted and remain in states with strong education systems because they are guaranteed an educated workforce and good schools for their employees’ children.

Everyone knows that our military bases have told the legislature that they will be at risk of closure during the next round of base closures if Arizona’s education rankings don’t rise.

Everyone knows that areas with strong schools have higher property values.

And everyone knows that if you don’t educate, you incarcerate instead.

This particular legislature has been a disaster for our schoolchildren. It’s pretty clear that the wheels are coming off the bus. What we want everyone to know is who unscrewed the lug nuts.

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Thank you.

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Media Publications:

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State Representatives’ Voting Record, Fox News Channel 11, March 25, 2010
Failed State, The Tucson Weekly, March 24, 2010
Cronkite News Service, by Cristine Harvey, March 24, 2010
GOP Lawmakers Chided on Education Funding, The Arizona Republic, March 25, 2010
Area Legislators Blasted on Education Funding, Today’s News Herald, March 24, 2010
Parents’ Non-Profit Spotlights Anti-Education Voting Record, KGUN9, March 24, 2010
Parents Group Presents Scorecard for Lawmakers on Funding Education, Arizona Capital Times, March 25, 2010
Early Childhood Education is Vital, The Arizona Daily Star, March 28, 2010

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Video via the Arizona Guardian Ustream.  This 16 minute video is of the Phoenix press conference that took place at the state capital on March 24, 2010.

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.Legislative Districts are grouped by color for visual differentiation only.
*Resigned in 2010 to run for a Congressional Seat.

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Our Methodology:

The Arizona Education Network has compiled a summary of all legislators’ voting records pertaining to their support of public education at all levels (K-University) during the 2009 Regular and Special Sessions.  Sifting through all the bills that were passed by the Legislature and sent onto the Governor’s office, AEN found twenty-one (21) different pieces of legislation that dealt directly with public education budgets and the dollars allocated to it.   AEN totaled each legislator’s votes “FOR” and “AGAINST” public education.  AEN also tallied the number of times a legislator did NOT vote on the legislation pertaining to public education budgets. In our state, which is ranked last in education funding,  AEN defines a vote to protect dollars allocated to public education as a vote “FOR” public education.    Conversely, AEN defines a vote to take budget dollars away from public education as a vote “AGAINST” public education.

The summary is organized by district and then by house:  Senate first, followed by the House of Representatives.  The first set of numbers following a legislator’s name provides the percentage of times the legislator voted “FOR” and “AGAINST” public education, as well as the percentages of times that legislator did NOT vote on the legislation.  This percentage was derived using the total number of bills on which the legislator could have voted.

The second set of numbers for each legislator shows the percentage of times he or she voted “FOR” and “AGAINST” public education, adjusted for the number of public education votes missed.  In some cases, adjusting for the number of missed votes resulted in a significant change in a legislator’s numbers.

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Missed Votes:

Several special sessions of the Legislature were called during 2009, requiring legislators to report to the Capitol many times outside of the regular session.  This could be part of the reason your legislator missed votes.  If you are concerned with the number of public education votes your legislator(s) missed, AEN encourages you to contact your legislators to find out why.

For a short summary of each piece of legislation included in this analysis, please see the links below the table.

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Link to Individual Legislation Summaries, PDF Format
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2009 Regular Legislative Session:

First Regular Session SB1029 & HB2640

First Regular Session SB1035 & HB2636

First Regular Session SB1036 & HB2635

First Regular Session SB 1187 & HB2639

First Regular Session SB 1188

First Regular Session HB2028 & SB1189

First Regular Session HB2029 & SB1190

First Regular Session HB2643 & SB1470

First Regular Session HB2648 & SB1480

First Regular Session HB2649 & SB1477

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2009 First Special Legislative Session

First Special Session SB1001 & HB2001

First Special Session SB1006 & HB2006

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2009 Second Special Legislative Session

Second Special Session HB 2001 & SB1001*

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2009 Third Special Legislative Session

Third Special Session HB2001 & SB1013*

Third Special Session HB 2002 & SB1016

Third Special Session HB2006 & SB1020

Third Special Session HB 2011 & SB1027

Third Special Session HB2012

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2009 Fourth Special Legislative Session

Fourth Special Session SB1001

Fourth Special Session SB1002

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2009 Fifth Special Legislative Session

Fifth Special Session SB1001

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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, 95^th 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.

For additional information see below:

AZ Legislature Called into Sixth Special Session **Updated 2/12/10**

As the Arizona budget continues to increase, legislators have been busy finding ways to further diminish the general fund.  Several bills are making their way through the legislature under the guise of private school tax credit reform that would drastically increase the amount of the tax credit deductions for private school tuition.

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One proposal triples the deduction for private school tax credits  to $1,500 for  individuals and $3,000 to those filing jointly.  The Arizona Republic reports that “[ t]he average tax owed by an Arizona resident in 2008 was $1,150.” There is no doubt that this legislation would have a profound impact on the Arizona budget deficit.

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At the same time, the Governor’s  budget is proposing the elimination of state funding for Adult Education and GEDs.  According to the National Center for Educational Statistics, Arizona has a drop out rate of 7.6%.  Moreover, nationally, the NCES has shown that high school drop outs are disproportionately poor Americans.  In 2006, the drop out rate for all incomes was 3.8% while the drop out rate for those in the bottom 20% of family incomes was 9.0%.

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Considering these factors, the elimination of funding for adult education programs that helps Arizona’s poor work toward a GED seems economically unsound.  Without these programs, which channel Arizona drop-outs to higher education and better jobs, it seems likely that there will be more Arizonans on AHCCCS and possibly even larger prison populations – greatly increasing costs to Arizona taxpayers.

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The following is a list of related bills in the legislature that seek to increase tax credits and reduce general fund revenues.  For further information on both these topics, see the related news links below.
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HB 2496 School Tuition Tax Credit; Contribution Date: Allows a donation made to a school tuition organization (STO) between the close of the tax year and the income tax return filing deadline to be applied to either the current or preceding tax year for the purpose of claiming an income tax credit.
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Status: On the February 8th agenda for the House Ways and Means Committee..
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SB 1274 STOs; Contribution Date: [Senate version of HB 2496 ]
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Status: Passed out of Senate Committee on Education Accountability and Reform on Wednesday, February 3rd.
View Senate committee vote detail by clicking here.
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HB 2663 STOs; Corporate Tax Credit Requirements:Reorganizes the current provisions regulating school tuition organizations (STOs) that accept corporate income tax credit donations and implements additional regulatory measures for STOs based on the recommendations of the Ad Hoc Committee on Private School Tuition Tax Credit Review.
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Status: On the February 8th agenda for the House Ways and Means Committee.

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HB 2664 STO; Tax Credit Requirements:Increases the maximum private school tax credit contributions to an STO from $500 to $750 for a single or head of household taxpayer and from $1,000 to $1,500 for married couples filing joint; and adjusts the maximum individual tax credit amounts annually for inflation, but prohibits the amounts from being adjusted below the amounts for the prior taxable year.
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Status: On the February 8th agenda for the House Ways and Means Committee.
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**Note: AEN is tracking down details on bills scheduled for February 8th’s House Ways and Means Committee. Specifics of bills will be updated as information becomes available.

Related News:
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Cutting GED money will ‘cut our dreams’, Arizona Daily Star, February 5, 2010
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Arizona lawmakers consider tax-credit overhaul, Arizona Republic, February 4, 2010

Rigged Priviledge: An investigation into Arizona’s Private School Tax Credits Program, East Valley Tribune,  August 1, 2009

Governor Brewer proposes to slash funds for all adult ed. protesters ready to rally, KOLD-13, February 4, 2010

Economic and Non-Economic Outcomes for GED Credential Recipients, General Educational Development Testing Service of the American Council on Education, 2008

High School Dropout and Completion Rates in the United States: 2007, U.S. Department of Education, September 2009

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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Today’s articles in both the Arizona Daily Star and the Arizona Republic highlight the crisis — that which is seen, as well as that which is unseen. Rest stops have been closed. State parks could be shut down by July of 2010. Our state’s disabled and poor have lost needed services. And “78 percent of the K-12 dollars that aren’t protected by voter mandates or federal requirements” have been cut.
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With a current budget-year deficit of nearly $1.4 billion, the second session of the 49th Legislature promises more cuts with very little mentioned in projected plans for revenue.  State employees could see a 5% pay cut, as well as layoffs in various department/agencies. As reported in the Arizona Republic, a bill to end all-day kindergarten is expected to be introduced this week, and will be one of the cuts to Education. Representative Lucy Mason (LD-1 Prescott) who once supported the all-day approach to educating our state’s kindergartners, is now supporting ending the program because “[W]e can’t afford it….It’s not that our hearts aren’t in the right place.”  In addition, voter protected funds, as well as Health and Human Services, are also seen as vulnerable.
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Be sure to tune in to your local news Monday evening for coverage of Governor Brewer’s “State of the State” address. Additionally, many media outlets will be covering the address live, as well as in review. Channel Eight Arizona PBS (Phoenix) will air a special one-hour HORIZON at 7 PM featuring Governor Brewer’s address followed by commentary.

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Where to find live coverage:

Television:
KUAT Channel 6 – Tucson at 1 PM

Live stream on the radio & Internet:
KUAZ 89.1 FM – Tucson
KUAZ 91.7 FM – Sierra Vista
KUAS 1550 AM – Tucson

KJZZ 91.5 FM – Phoenix

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Related news:
I plan to right our ship and restore common sense ~ Governor Jan Brewer, Arizona Republic “View Points”, 1/10/10
Gov. Brewer to Talk Taxes, Economy ~ KJZZ 91.5 FM, Mark Brodie, 1/10/10
AZ running out of accounting gimmicks ~ Arizona Daily Star, (Bodfield, AZ Star; Fischer, Capitol Media), 1/10/10
The unseen pain of cuts to state budget ~ Arizona Republic, Mary Jo Pitzl, 1/10/10
CVBugle – Editorial: State of the State: Tough times for Brewer ~ Campe Verde Bugle, 1/9/10
CRUNCH TIME: Lawmakers face grueling decisions Monday ~ The Daily Courier [Prescott], Joanna Dodder Nellans, 1/9/10

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1) $200 million in lump sum cuts and sweeps of agencies, which does NOT include K-12 education due to recent cuts
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2) A one-cent temporary sales tax referral for three years.
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3) Now a four-year suspension of the Voter Protection Act (VPA) in which a State Emergency Fund is created consisting of 50% of monies collected by seven measures, including Propostion 301.

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So, what does this all mean?

The Governor has asked the legislature to include a provision that would send a ballot measure to the voters allowing legislators to overturn the Arizona Voter Protection Act, a constitutional provision that protects spending on programs passed by the voters from legislative tampering.
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Such a measure would allow the legislature to access monies put aside under Proposition 301 and Arizona’s Early Childhood Initiative. Proposition 301 was passed by Arizona voters in 2000 for the purpose of providing funds for smaller class sizes, soft capital costs (such as books, computers and classroom supplies), utilities and teacher pay incentives.

Arizona’s Early Childhood Initiative (also known as “First Things First“), is a voter-approved initiative passed in 2006 to help support early childhood development and health care programs. Under the initiative, a tax on tobacco products was specifically created to fund these programs.

Since Governor Brewer included Voter Protected Acts in the Special Session, it is now only in the hands of the legislators.
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Please contact YOUR legislator today! For a link to their contact information, click here.
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Talking Points:

• Let them know that you want them to defeat the Voter Protection Act submission.

• Let them know that you value public education and oppose further cuts.

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Media Links:

Brewer makes official call for 5th special session, AZ Capital Times, December 15, 2009

Brewer calls special session on Thursday, AZ Republic, December 15, 2009

Dem says special session won’t be smooth, AZ Republic, December 15, 2009

Legislative Handout:

Special Session Proposed Cuts , pdf

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State Financial Update – Where we Stand Today

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From the latest Joint Legislative Budget Committee (JLBC) reports:

• Projected Arizona state budget deficit for FY2010 = $2 Billion* +
• Projected deficit for 2011 = $3.3 Billion

• Arizona’s Operating Fund (the fund from which we pay our state bills) is negative for the first time since the 1930’s.
• Arizona borrowed $700 million from Bank of America in November.  This loan was necessary to cover the Dec 1^st funding for K-12 schools and to maintain cash reserves for ongoing expenses.  Treasurer Dean Martin estimates that interest payments for this loan will equal about $3.1 million.

• The JLBC and three other economic forecasting groups hope for 6-7% growth in 2011, but even with this projected growth our state sales tax and individual income tax collections would not reach FY06 levels until at least FY2013. Corporate tax collections in FY13 are still projected to be lower than FY05 numbers.

*This estimate was released prior to the latest $400 million in additional budget cuts this month.  We expect the projected deficit number to be lowered somewhat in next week’s JLBC report, though probably not in a dollar-for-dollar due to increased interest payments, further declines in revenue, etc.
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Budget Cuts for December 2009

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The Budget November 2009 – $144 Million from K-12 Education

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The legislature held a special session last week to enact a series of cuts that closely resemble the reductions that Governor Brewer vetoed earlier this year.  Brewer acknowledged that the cuts to education were pretty much equivalent to the cuts that she called “unacceptable” a few months ago, but now says that “We have no other alternative other than to go in and make some adjustments, some cuts, and to continue working forward in an effort to see how we are going to solve a possibly $4 billion deficit.”
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The latest “adjustment” to K-12 education translated into a $144 million dollar cut to this current fiscal year’s soft capital funds (books, classroom materials, buses, other student supplies, etc.)  The legislation exempted school districts with fewer than 600 students, so charter schools were not impacted by the recent reductions.
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I thought that the legislature was originally trying to cut $175 million in soft capital?  Why did they choose to cut $144 million instead?

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Ah –ha!  Great question!
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In order to receive federal stimulus money, all US states had to agree not to cut education spending below their 2006 state expenditure of education, otherwise known as the Maintenance-of-Effort (MOE) requirement.  This latest cut of $144 million sets us back to the 2006 number for this fiscal year.
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If our legislature decides to cut anything else from the overall education budget this year, Arizona would be in danger of losing the $1 billion + in State Fiscal Stabilization Fund money that we are scheduled to receive between 2009-2011.
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Governor Brewer is reportedly going to ask for an exemption to the federal guidelines so our legislature can continue to cut below 2006 funding levels.  More on that in the ‘What’s Next’ section below.

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Was there any attempt at all to address our declining state revenue, tax loopholes or any other fiscal measures?

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No.  Despite some speculation that Governor Brewer’s proposed 1-cent sales tax increase might gain some airtime in the legislature, there has been little public discussion of the measure and no serious move within the legislature to review any revenue measure, including any of the alternative plans already put forward by the minority party and outside groups.
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How will this impact our schools?

While the $144 million reduction represents yet another financial blow directly to the classrooms, school districts had been told right from the beginning of the year that this cut was highly probable.  All of the school officials we have spoken to had made ‘worst case scenario’ contingency plans for soft capital cuts this year and had not allocated all of the initial budget funds they had been assigned at the beginning of the year.
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That said, this additional round of reduced payments will certainly impact our classrooms.   As more dollars are allocated to the most basic mandated services, many schools are already reporting that they expect to run out of their already-rationed classroom material (paper, etc.) before the end of the year.

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What’s Next?

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Legislators are already discussing a second special session for December, and we anticipate that leadership will meet again before the holidays.
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Now that the education budget is cut down to the 2006 Maintenance of Effort threshold and state agencies are shutting down offices and facilities, do you think that revenue discussions might be on the table?  It’s doubtful.
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Senator John Nelson recently remarked pointedly that too many of his fellow legislators are still devotedly beholden to Washington DC Lobbyist Grover Norquist and the anti-tax pledge they signed earlier in the year.  When asked by the Capitol Times if there was any hope for a serious examination of our revenue situation, Sen. Nelson, who did not sign the pledge himself, told the Az Capitol Times that “Grover (Norquist,) is not going to allow that to happen.  Everyone who signed that no-tax pledge is going to be told (to vote) no.”
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So…while you reflect on the fact that a special interest lobbyist and non-Arizona resident is instructing our elected officials how to vote, here’s the skinny on the latest legislative leadership proposals for bridging our budget deficit:
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Plan One:  Let the Lottery Ticket Buyers of 2020 Bail Us Out.

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The latest proposal is seeking to borrow off of future lottery earnings…though we can’t call it that, because the Arizona Constitution strictly prohibits long-term borrowing.  To get around these silly semantic details, “borrowing” in this case will be known as  “securitization”.

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Though the plan is somewhat convoluted, legislators would like to avoid the constitutional restrictions by pledging future funds off a single source – in this case it would be the Arizona Lottery – and therefore ‘secure’ the future funds for this year’s budget rather than ‘borrow’ them.

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State lottery director Jeff Hatch-Miller reports that the lottery contributed $43.2 million to the state treasury last year.  Legislators are looking to “secure” anywhere from 20-30 years worth of future lottery revenue; though this plan is further hampered by the fact that Arizona voters only authorized the state lottery through 2012.  We’re not convinced that circumventing the Constitution or borrowing today from a program that doesn’t legally exist 3 years from now is a viable plan.

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Plan Two:  State Fundraiser!
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Legislator Judy Burges has gathered 33 majority party legislators to sponsor a voluntary donation option on the upcoming Arizona State Tax return forms.  The hope is that each Arizona household would forgo some of their tax return money to help bridge the state budget deficit.
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Is this a viable idea?  Capitol News Service reports that Arizonans donated $7.6 million to various causes (Clean Elections, veteran’s health, etc.) via their tax returns this last fiscal year.  That said, even if the legislature collects a similar sum under this scheme, it would only amount to roughly .25% of our $3 billion dollar projected deficit.  In other words…it’s a bit like running a lemonade stand this weekend in the hopes of covering your yearly mortgage.
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Plan Three:  Cuts, Cuts, Cuts!
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Prime target this time?  You guessed it – Education!
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House Majority Whip Andy Tobin and Senator Russell Pearce, head of the Appropriations Committee, have already stated that the federal stimulus education maintenance-of-effort (MOE) waiver should itself be waived.  Senator Pearce has stated that he “wants all those political handcuffs removed” so that the Senate can extend further cuts to education.  Rep. John Kavanagh, the Appropriations Chair in the House, also agrees with this assessment:  “These cuts we’re making today barely make a dent in the problem…this is cosmetic.”
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If those words aren’t enough to give us all pause, Senator Pearce has gone further to suggest that the legislature should perhaps cut deeper into education in spite of the potential loss of federal stimulus dollars.  When asked what the legislature should do if the federal Department of Education refuses to waive the MOE requirement, Pearce opined:  “Let’s cross that bridge when we get there. It’s worth asking, and it’s worth maybe ignoring.”

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What to do?
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At the risk of sounding like a broken record, we encourage you to continue contacting your legislators to insist that they seek a balanced, measured plan.  Right now we aren’t finding evidence of a plan at all…just random cuts without much foresight into the future of our state.
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We also encourage you to write to local papers and TV stations.  Whether you chose to write an editorial or just a simple email to a reporter, it is important to let them know that we want relevant and factual information about our state budget and that we hold education in the highest priority.
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Find Out More:
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Bill:  Won’t you donate to ailing state? Arizona Daily Star, November 30, 2009

Governor, lawmakers slash $300 million from budget, YourWestValley.com, November 24, 2009

Borrowing plan using lottery weighed, Arizona Daily Star, November 23, 2009

State lawmakers to hold another special session, Yuma Sun, November 20, 2009

Lawmakers consider seeking exemption from stimulus requirements, Arizona Capitol Times, November 20, 2009

Trimming Around the Edges / Lawmakers attempt to cut state spending – but Arizona remains on the edge of a financial disaster, Jim Nintzel, Tucson Weekly, November 19, 2009

Budget agreement fails; Senate will try again Monday, Arizona Republic, November 20, 2009

GOP deal to OK $450M in budget cuts falls apart, AZ Daily Star, November 20, 2009

State borrows $700M; first external loan since Great Depression, AZ Capitol Times, November 19, 2009

Loan to Pay Arizona’s Bills (Video) State Treasurer Dean Martin discusses the $700 million load the State of Arizona is seeking to meet its financial obligations, November 19, 2009

Voters still locked out of budget process, Douglas Dispatch, November 11, 2009

Billion-dollar deficits to plague Arizona through 2013, Arizona Capitol Times, September 8, 2009

Beyond California:  States to Watch, (Arizona Report), Pew Center on the States, October 2009

Finance Advisory Committee, Revenue & Budget Update, Arizona Joint Legislative Budget Committee (JLBC), October 22, 2009

JLBC – Monthly Fiscal Highlights, October 2009
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Legislature approves $300 million in cuts ~ Mary Jo Pitzl, Arizona Republic, 11/23/09
Gov., lawmakers cut budget by $300 million ~ Howard Fischer, East Valley Tribune, 11/23/09
Arizona governor approves $300 million in spending cuts ~ Tim Vetscher, ABC 15, 11/23/09

Budget agreement fails; Senate will try again Monday, Arizona Republic, 11/19/09

Arizona lawmakers end special session without budget deal, Arizona Daliy Star, 11/19/09

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The Governor called the Arizona state Legislature into special session to address the $2 billion budget deficit.  The session was only to address potential cuts including a proposed $137 million cut to soft capital for K-12.  Soft capital pays for items like books, technology and school buses.  Any cut to education mid-year would be on top of a $133 million dollar cut in K-12 education funding in January of 2009.

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In addition, other groups met this week to present alternative to the cuts. including revenue increases and reform. See the articles below for additional information.

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State, for 1st time, forced to get loan, Patching the budget sidebar, Arizona Republic, 11/18/09

Group urges options to budget cuts, KPHO Phoenix, 11/18/09

Forum Discusses Fixing Budget, Arizona Republic, 11/18/09

Arizona Budget Coaltion echoes Democrat’s budget proposals, Arizona Capitol Times, 11/18/09

Legislators must skip ideology, rescue the state, Editorial Arizona Republic, 11/17/09

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Arizona is an “equal funding” state for education.  This means that each school district receives the same funding per student from the state.  The only local option or local control permitted to school districts are overrides and bonds.  Overrides are generally for maintenance and operations (M&O) and are limited to 15% (recent legislation raises the limit to 17%) of the district M&O budget based on equalization funding.  Capital outlay (soft capital items that cannot be bonded for) overrides are also allowed but  recent legislation will now restrict them to 10% of RCL (Revenue Control Limits).   Finally, local communities are also still permitted to bond for building and maintenance of schools.

National surveys on per pupil spending place Arizona at the bottom of most lists; and these surveys were completed before last year’s mid-year cuts.  The following are Arizona’s most recent per-pupil spending rankings:

National Education Association: 51^st

U.S. Census Bureau: 49^th

National Center for Education Statistics: 48^th

Education Week: 50^th

Even the very conservative American Legislative Exchange Council (ALEC) ranks Arizona 50th.

(For a full explanation of Arizona rankings click here.)

There are 89 overrides,bonds or other school funding issues on the ballot for November 3rd, 2009.  Local Arizona communities are exercising the control they have in order to raise more money to spend on educating their students.  Arizona Education Network encourages voters to vote “YES” to these overrides, bonds and other funding issues so these Arizona school districts will have additional funds available for educating the next generation of Arizonans.

The following is a list of school district override and bond ballot initiatives by county. (Information provided by county election offices or county school district offices.):.

Apache County

St. John’s School District #1

• Override

Ganado School District #20

• Override

Cochise County

Sierra Vista School District #68

• M&O Budget Override

Douglas School District #27

• Bond Election

Coconino County

Flagstaff Unified School District #1

• M&O Budget Overrides

Freedonia Mocassin Unified SchoolDistrict #6 (also part of Mohave County)

• K-3 Budget Override
• K-12 Budget Override

Tuba City Unified School District #15

• Capital Outlay Override.

Gila County

Miami School District #40

• M&O Budget Override

White River Unified School District #20

• M&O Budget Override.

Graham County

Thatcher School District #4

• M&O Budget Override

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Greenlee County

Morenci Unified School District #18

• K-3 M&O Budget Override
• K-8 M&O Budget Override

La Paz County

Parker Unified School District #27

• K-3 M&O Budget Override
• K-12 M&O Budget Override.

Maricopa County

Arlington Elementary School District #47

• K-3 Budget Override

Cave Creek Unified School District #93

• K-3 Budget Override

Creighton Elementary School District #14

• M&O Budget Override
• Bond Election

Dysart Unified School District #89

• M&O Budget Override
• K-3 Budget Override

Fountain Hills Unified School District #98

• M&O  Budget Override
• K-3 Budget Override

Fowler Elementary School District #45

• Capital Outlay Override

Gila Bend Elementary School District #24

• Bond Election

Glendale Elementary School District #40

• K-3 Budget Override

Glendale Union School District # 205

• M&O Budget Override

Higley Unified School District #60

• K-3 Budget Override

Liberty Elementary School District #25

• M&O Budget Override
• K-3 Budget Override

Litchfield Elementary School District # 79

• Bond Election

Littleton Elementary School District # 65

• Bond Election

Madison Elementary School District # 38

• Bond Election
• Capital Outlay Override

Mesa Unified School District

• M&O Budget Override

Morristown Elementary School District # 75

• M&O  Budget Override

Osborn Elementary School District #8

• M&O Budget Override
• K-3 Budget Override

Paradise Valley Unified School District #69

• M&O Budget Override

Pendergast Elementary School District #92

• M&O Budget Override

Peoria Unified School District #11

• M&O Budget Override

Phoenix Elementary School District #1

• M&O Budget Override
• K-3 Budget Override

Phoenix Union School DIstrict #210

• M&O Budget Override

Saddle Mountain Unified School District #90

• Bond Election
• M&O Budget Override

Scottsdale Unified School District #48

• K-3 Budget Override

Temple Elementary School District #3

• Bond Election

Union Elementary School District #62

• M&O Budget Override

Washington Elementary School District #6

• K-3 M&O Budget Override

WickenburgnUnified School District  #9

• M&O Budget Override

Mohave County

Lake Havasu Unified School District #1

• K-3 M&O Budget Override

Topack Elementary School District #12

• K-3 M&O Budget  Override

Peach Spring Unified School District #8

• K-3 M&O Budget  Override
• K-12 M&O Budget Override.

Navajo County

Pinon Unified School District #4

• K-3 M&O Budget Override
• K-12 M&O Budget Override

Winslow Unified School District #1

• M&O Budget Override.

Pima County

Amphitheater United School District #10

• M&O Budget Override
• Capital Outlay Override

Catalina Foothills Unified School District #16

• Bond Election

Indian Oasis-Baboquivari Unified School District #40

• K-3 Budget Override
• K-12 M&O Budget Override

Sahuarita Unified Schol District #30

• M&O Budgwet Override
• Bond Election
• Bond Investment Income Question (details not provided)

Tanque  Verde Unified School District # 13

• M&O Budget Override
• Bond Election

Tucson Unified School District #1

• M&O Budget Override
• Capital Outlay Override

Vail Unified School District

• M&O Budget Override
• Bond Election

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Pinal Couty (Did not provide District Numbers)

Apache Junction Unified School District

• M&O Budget Override

Casa Grande School Elementary School District

• Override Election

Casa Grande High School District

• Override Election

Coolidge Unified School District

• M&O Budget Override

Eloy Elementary School District

• Override Election

Maricopa United School District

• M&O Budget Override

Picacho Elementary School District

• M&O Budget Override

Ray Unified School District

• Override Election

Red Rock Elementary School District

• M&O Budget Override

Superior Unified School District

• Special Election (details of special election not provided)

Toltec Elementary School District

• M&O Budget Override Election

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Santa Cruz County

Nogales Unified School District #1

• K-12 M&O Budget Override

Santa Cruz Valley Unified School District #30

• JTED (Joint Technology Education District) Election

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Yavapai County

Beaver Creek Elementary School District #26

• Bond Election

Mingus Union High School District #4

• M&O Budget Override

Cottonwoood-Oak Creek Elementary District #6

• M&O Budget Override.

Yuma County

Hyder Elementary School District #16

• M&O Budget Override