UPDATED: Multiple Bills Look at Housing, Homelessness (video)

I published this original blog post and video on March 30, 2019– back when I thought the Arizona Legislature would take some serious steps toward solving the state’s housing crisis.

The original article focused on five housing-related bills that passed the Senate and passed through my committees (SB1471, SB1336, SB1539, SB1383, and SB1098) and on the issue of restoring full funding to the Housing Trust Fund.

Early last Tuesday morning, May 28, 2019, was sine die, the last day of the session. The Housing Trust Fund was not restored to full pre-recession funding ($40 million of designated funds from unclaimed property), but it did get $10 million. The only bill from the above list that made it to the Floor of the House was SB1539, but it was changed dramatically, which resulted in a party line vote.

I really regret the demise of SB1471 (help for homeless youth and families) and SB1383 (property tax assistance for widows and the elderly).  The community groups backing SB1471 came up with a procedure to collect capitol gains tax on sales of Arizona property by out-of-state sellers. The Legislature said “thanks for the collection idea”. That procedure was adopted and put into the budget, but the earmark for homeless youth and families was eliminated. (Grrr…) SB1383 is a Maricopa County only program that helps widows and the elderly pay their property taxes; I think it should be expanded to statewide to help these people age in place. Instead, it was no heard in House Appropriations or Rules.  On a bright note, the affordable housing tax credit bill– which would have costs the state over $90 million in the coming years– died again.

Multiple Bills Look at Housing, Homelessness (original post and video)

Homelessness, transitional housing, low-income housing and affordable housing are obviously big problems in the state of Arizona. Currently, the Arizona House is considering a mixed bag of bills that tackle different parts of the housing problem.

Today’s video focuses on SB1471 which provides a creative funding mechanism to put up to $10 million per year in the Housing Trust Fund for homeless youth and families. There are no federal HUD funds for this population.

SB1471 sets up a process for the state of Arizona to collect capital gains taxes on sales of Arizona property owned by out of state individuals. Apparently, compliance with capital gains taxes owed by out-of-state investors is less than 30%. This bill is projected to make around $8 million of year and could go higher. If more than $10 million is collected, the excess goes into the general fund.

We heard SB1471 in Ways and Means this week, and several other housing bills related to the seriously mentally ill (SB1336), AHCCCS members, youth (SB1539), widows and the elderly (SB1383), and other vulnerable populations (SB1098) passed out of the House Health and Human Services Committee unanimously. (I am on both of these committees.)

Why is there so much need? Because the Republicans have repeatedly swept the Housing Trust Fund since the dark reign of the Tea Party began in 2011.

All of the housing bills passed out of the Senate and out of the House committees. Will they make it into law? I hope so. (There is one caveat to this hopeful housing post. A housing tax credit bill, which passed out of House Ways and Means but died, has been revived in the Senate as a striker.  Affordable housing tax credit bills sound good but cost the state tens of millions of dollars over time. Direct help to people is easier and more cost effective.)

Are we done? No.

Instead of a scatter shot approach of random bills to tackle housing and homelessness, what we need is a comprehensive approach, with adequate funding to make a difference.

#AZ Republican Budget Cuts Taxes by $386 Mil & Shortchanges K-12 (video)

One of the prevailing messages from the grassroots in 2018 was: no more tax giveaways until the schools are fully funded. Republicans didn’t get that message. They also didn’t get the Invest In Ed message that we — the people– think the rich could pay more in taxes to help fund education.

The Republican budget cuts income taxes, TPT and fees by $386 million and leaves education and other needs underfunded (or unfunded).

We started the year with a $1 billion surplus to invest in the People’s To-Do List: education, infrastructure, healthcare and safety and security. The Republicans have added bits of money to these areas — just enough to make it look like they’re doing something— but the need is much greater.

Republicans are ignoring multiple crises that are brewing in our state including unnecessary maternal and child death; rock bottom education funding; crumbling roads, bridges and school buildings; lack affordable and low-income housing; the shortage of teachers, doctors and nurses; too many people living in poverty; lack of access to affordable healthcare… need I go on?

Continue reading #AZ Republican Budget Cuts Taxes by $386 Mil & Shortchanges K-12 (video)

What’s the News on the #AZ Budget? Check Out Video & Town Hall

Many constituents have asked me where the budget is and what’s going on– after all, it is May. On the budget, the status quo of the past month still exists. All of the budget action continues to be behind closed doors, among a closed group of Republicans.

In addition to the Democrats, there are a significant number of House Republicans who are not part of the budget process, and they’re grumbling about it. This is a state budget– not the budget for a small town church. The deacons and the pastor don’t get to decide the budget on their own in the back room. The budget should be negotiated with all parties at the table– not just a handful of those close to power. Democrats make up 48 percent of the Arizona House. When more than 50 percent of the Legislature is kept in the dark and has to rely on rumors, that is not a fair process, and it ultimately hurts the people of Arizona.

Except for the Governor’s budget, which has been public for months, and some leaked details about the Senate Republican budget, little is known about the budget, beyond a few trial balloons. What we do know is that the Senate Republican budget is far more conservative and not even close to Governor Doug Ducey’s budget.

This chasm in the GOP has left an opening for Democrats. The House Democrats will unveil our balanced budget ideas on Wednesday morning at 9:30 a.m.  We have been saying since January that we agreed with parts of the governor’s budget– like full tax conformity and more money for P-20 education. [Stay tuned for details.]

On the right, Senator J.D. Mesnard and other tax cut fans still want to zero-out the money the state could bring in from tax conformity (~$150 million) and Wayfair (~$85 million). There are multiple trial balloons about making the income tax rates flatter. One proposal is to have only two personal income tax brackets. This is a horrible idea– unless, of course, your goal is to return to austerity and Draconian budget cuts, while making your rich donors happy. Under the Republican proposals to eliminate or lower tax brackets, rich people would pay less, and the rest of us could pay more. (Think of the Republican tax bracket plan as Arizona’s mini-Me to the Trump Tax Cut and Jobs Act. Both significantly lower taxes for the wealthy by reducing the top tax rate.)

Continue reading What’s the News on the #AZ Budget? Check Out Video & Town Hall

With ‘Wayfair’ Bill Stalled, Will Republicans Stop New Revenue Streams? (Video)

The budget is still being negotiated behind closed doors. The Republicans have passed several tax cut bills, but not all of them have been heard in Committee of the Whole (COW, where the real debates happen).

We also have not heard the “Wayfair Bill” in COW because it is stalled in House Rules (with several other bills). HB2702 passed House Ways and Means unanimously several weeks ago but never got to the Floor for debate or a vote.

South Dakota vs Wayfair Inc. is the supreme court case that said states can charge sales tax on online sales. States, local governments, and brick and mortar businesses have been losing trillions of dollars to online retailers. Just look around town, and you will see fewer local businesses, less stock on the shelves, and many vacant store fronts. Taxing in-person purchases but not online purchases is unfair to local small businesses, hurts our local economy, reduces the General Fund (thus reducing education funding), and ultimately reduces consumer choice.

Arizona residents made $1.7 trillion worth of online purchases in 2018. That is how much Arizona businesses lost in sales. On those purchases, the state lost $85 million in sales tax (TPT). Cities and counties lost more than $45 million. Prop 301 (the education sales tax) lost $10.2 million.

Continue reading With ‘Wayfair’ Bill Stalled, Will Republicans Stop New Revenue Streams? (Video)

‘Democracy in Chains’ Connects Dots on Libertarian & Republican Strategies (video)

Affordable Care Act

If you often scratch your head at the bad bills that the Republicans pass in Congress and in the state legislatures and wonder what their end game is, you should read Democracy in Chains by Nancy McClean.

What you may think are random bad ideas that have somehow gotten into law are actually part of a grand scheme that has been playing out since Brown versus the Board of Education attempted to desegregate public schools in the United States.

An academic, McClean has studied the articles, books and letters of James Buchanan, the economist not the former president. Buchanan was the primary theorist of public choice theory. In the 1950s, public choice theory was used as a rationale to close all of the public schools in the state of Virginia (rather than comply with desegregation) and is being used today to support state-funded vouchers for private and religious schools. In Virginia in the 1950s, the state gave money to white parents for private school vouchers and allowed hundreds of black children to go uneducated for years. Needless to say, this was a travesty of justice.

Continue reading ‘Democracy in Chains’ Connects Dots on Libertarian & Republican Strategies (video)

#AZ House Republicans Pass $7.25/hour Minimum Wage for Students (video)

The worst vote of the 54th session has to be the Republican passage of the sub-minimum wage on Thursday. Rep. Travis Grantham’s HB2523 would allow employers to pay full time students, who work part time and are under 22, the federal minimum wage of $7.25/hour, instead of the voter-approved minimum wage of $11/hour.

Republicans and Democrats debated HB2523 for more than one hour the day before during Committee of the Whole (COW) and again when we explained our votes on Thursday. It passed on a strictly party line vote.

After mulling over the speeches from both sides of the aisle, I think there are some of the Republicans who truly believe paying $7.25/hour to full-time students is good idea. I wonder how many of them own restaurants, farms, retail stores, or other small businesses that would benefit from cheaper labor. Hmmm…

This vote needed 3/4 on HB2523 because it is an attempt to change the voter-approved Prop 206 Citizens Initiative that raised the minimum wage in 2016. During the COW debate, I proposed an amendment to add a Prop 105 vote to HB2523, but Republicans said it was not necessary. (The Rules Attorneys said it was necessary. Who are you going to believe?)

Continue reading #AZ House Republicans Pass $7.25/hour Minimum Wage for Students (video)

John Nichols of ‘The Nation’ Returns to Tucson (video)

John Nichols

For many years, author and historian John Nichols has been coming to Tucson for the Festival of Books. In addition to his popular appearances at the Book Festival, Nichols has a tradition of speaking on Saturday evening at a free event hosted by Progressive Democrats of American (PDA Tucson) and the Pima Area Labor Federation (PALF).

2019 is no exception. Nichols will appear at the IBEW Hall on Saturday, March 2, with doors open at 6 p.m. and the event beginning at 6:30 p.m. Rep. Pamela Powers Hannley will warm up the crowd with local political news from the Arizona Legislature. Powers Hannley was recently named “most valuable state Legislator” by The Nation magazine.

Nichols is a consummate storyteller and political historian. He writes for The Nation and is a frequent commentator on MSNBC and Democracy Now. He is the author of Uprising, Dollarocarcy, and more recently Horsemen of the Trumpocalypse: A Field Guid to the Most Dangerous People in America.

If you have never heard Nichols speak, I urge you to take advantage of this free event– away from the crowds and parking hassles of the University of Arizona. Here are a few video clips from past years. The 2019 event is sponsored by PDA Tucson, PALF, and Our Revolution- Arizona for Bernie Sanders. Facebook event here.

Continue reading John Nichols of ‘The Nation’ Returns to Tucson (video)

Gosh Darn Podcast Interview with Rep. PPH Delves Deep into Education Views

Red for Ed

University High students Rose Long and Grace Proebsting have been interviewing political candidates and others for their podcast on economics entitled Gosh Darn Podcast (GDP). My interview is linked below, but if you go to their Sound Cloud page, you will see interviews with other locals.)

During my interview with them we delved deep into public education, vouchers, charter schools, teacher pay, Red for Ed, tax giveaways and strategies for funding public education. Check out the interview link below.

 

#StopThief Fair Tax Forum: It’s Time to Review Corp Tax Giveaways (video)

Fair Tax Forum

#RedForEd lifted the veil from our eyes and put the issue of corporate tax giveaways front and center in the fight to restore public education funding in Arizona.

As many of you are aware, the Arizona Legislature is giving away more than $13 billion in taxes every year and using only $10 billion to run the state. It is not sound fiscal policy to use accounting gimmicks and 50 fund transfers to “balance” the budget. It is no surprise that the state owes K-12 education around $1 billion. Thanks to scheduled corporate tax cuts passed by the Tea Party*, beginning in 2011, Arizona’s corporations got to keep an extra $1 billion in 2017. These corporate tax cuts continue through 2019, even though we can’t afford them.

As a result of the anger and frustration that many Tucsonans feel about the Arizona Legislature’s performance, the Stop Thief! Let’s Restore Fair Taxes Community Forum drew a standing room only crowd of diverse participants. The event was hosted by the Pima Area Labor Federation (PALF) and Progressive Democrats of America (PDA Tucson), with support from many other unions and community groups.

Tax giveaway banner
The star of the tax forum was the 20-ft banner listing 195 of Arizona’s 334 tax giveaways. Arizona is giving away $13+ billion is taxes each year and using only $10 billion to run the state. It is not sound fiscal policy when you use accounting gimmicks and 50 fund transfers to “balance” the budget.

Heart-felt testimonies from current high school students, who explained how school budget cuts have impacted their lives and their schools, opened the forum.

LD9 Rep. Randy Friese gave a detailed presentation on tax revenue and how it has been siphoned off by special interest groups and corporate tax cuts for decades. (Video after the jump.)

My talk focused on specific tax giveaway votes in the 53rd Legislature. focused specific tax giveaway bills and the drama that swirled around the bills that passed and the ones that failed. (Video after the jump.) Excluding any votes related to budget appropriations, all of the tax giveaway votes in the 53rd Legislature were bipartisan— with Democrats and Republicans on both sides.

The Legislature’s mindset on tax giveaways shifted from January 2017– when two Progressive Democrats made a pact to vote against every tax giveaway until the schools were fully funded– to budget night in May 2018. The Progressive viewpoint was: If the state “can’t afford” to fully fund K-12 public education (due to self-imposed austerity), then we “can’t afford” to give away or excuse any more taxes until the schools are on stable footing and fully funded. Thanks to the #RedForEd movement, on budget night 2018, hundreds of teachers, parents, and supporters filled the House gallery and the Capitol lawn and demanded that public education take priority over corporate tax cuts.

As I mentioned in my talk, a thorough tax giveaway review bill and several tax reform or repeal bills were proposed in the Legislature in 2018. Unfortunately, due to the gamesmanship at the Capitol, these bills were not heard because they were proposed by Democrats: Senator Steve Farley and Reps. Mark Cardenas, Randy Friese, and Pamela Powers Hannley.

It’s time to review all of the tax cuts, tax exemptions, tax credits, tax subtractions, and other tax loopholes. Some of these tax giveaways benefit narrow interests– to the detriment of the general fund and the general public. We must determine which tax exemptions benefit the people of Arizona (like the TPT exemptions for food and prescription drugs); which ones benefit special interest groups (like gold bullion enthusiasts); which ones benefit individual corporations (like the infamous four-inch pipe); which ones we are effective and affordable; and how we can spark economic development without breaking our budget and starving all of our educational institutions, as we are now.

Several people told me that they felt hopeful after my talk because so many costly tax giveaways were stopped on a bipartisan vote.  If fact, all of the tax giveaway votes were bipartisan— with Democrats and Republicans on both sides.  This is why it is important to ask every candidate in the 2018 election what their stance is on tax giveaways, the #RedForEd movement, the Invest In Ed Citizens Initiative (to secure long-term funding for K-12), and the Outlaw Dirty Money Citizens Initiative.  Will these candidates fight for the people or will they “take the money and run”?

Continue reading #StopThief Fair Tax Forum: It’s Time to Review Corp Tax Giveaways (video)

Stop Thief! Community Forum on Restoring Fair Taxes

Arizona Legislature

LD9 House incumbents– Dr. Randy Friese and I– will be the featured speakers at the Stop Thief community forum on tax giveaways on July 31 at the IBEW Hall.

As many of you are aware, Arizona is upside down on its mortgage. Thanks to years of Republican tax cuts, our state gives away more than $13 billion in taxes and spends just $10 billion to run the state. For years, the people of Arizona believed the lie that our state is broke. Now the veil has been lifted. The people realize that our state has plenty of revenue. The problem is that the majority of our Legislators vote to give the money away–rather than spend it on much-needed services– like public education.

Austerity is a lie. Arizona has the money to fund public education. The problem is: the Legislature gives our taxes away. It’s time to end crony capitalism in Arizona.

When the Arizona budget comes up short because of the tax giveaways, loopholes, and sweetheart deals, Republicans cut funds from K-12 education, the universities, the community colleges, healthcare, and environmental protections. OR they suggest raising sales tax to fill in the budget gaps caused by tax cuts for the rich and for the corporations. (Unfortunately, some Democrats go along with more tax cuts for the powerful and more sales tax for the rest of us.)

The Arizona Legislature should be funding the People’s To-Do List– education, healthcare, infrastructure, and safety and security– not the corporate wish list.

Continue reading Stop Thief! Community Forum on Restoring Fair Taxes