I have had two phone meetings already this morning [March 19, 2020] about the Democratic response to the novel Coronavirus on the state and federal level.
The first call was with House Dems, and we discussed our budget amendments that address the Coronavirus crisis. The second call was with Senator Kirsten Sinema, who outlined what the Congress is doing. She strongly emphasized that we lean on Governor Doug Ducey and Legislative Republicans to take the crisis and the potential loss of life seriously.
Currently, House Republicans plan to push the FY21 budget through with no Coronavirus Crisis Response Plan attached.
I recorded this video just a few minutes ago as I wait to be joined in to the Arizona House Floor debate on the budget.
Continue reading #AZHouse Republicans Push ‘Skinny’ Budget with Little Attention to #Coronavirus (video)
On Thursday afternoon, we debated HCR 2020 in the Arizona House. This is the Republican Party’s latest attempt to create … wait for it … more government!￼
You may remember that since Democrat Katie Hobbs became Secretary of State, Governor Doug Ducey decided to remove the Department of Administration from the secretary of state’s job duties and create a new top-level government position￼ as head of ADOA and appoint former Speaker of the House Andy Tobin to the position.
The next step in the grand plan is to pass HCR 2020, which is a ballot referral creating a lieutenant governor’s position.￼ I spoke against and voted against this bill.￼
With HCR2020, after the gubernatorial primaries, the Democratic and Republican candidates will pick a lieutenant governor as a running mate, and they run as a team for the top two slots in our government. If something happens to the governor, lieutenant governor becomes governor and that person has the ability to choose their successor– another lieutenant governor. This would give us to appointed people in the top spots of our state, removes the voters from the process, and keeps the party in charge. I disagree with this idea because it is a way to game the system. There are far too many political appointees in the government, thanks to the changes that Governor Jan Brewer and Ducey have made. Our government should be run by people who are elected by the people not by political appointees.￼￼
Continue reading #HCR2020: Should the Government Be Run by Political Appointees? (video)
The sheer volume of tax credits, tax cuts, tax shifts, and miscellaneous tax giveaways in this Legislative session is mind boggling. Will the Arizona House pass one billion dollars in tax giveaways in 2020? It could happen. To say that this behavior is fiscally irresponsible is a gross understatement.
The House Ways and Means Committee has passed 18 tax giveaways in 2020, and those bills are now hitting the House floor for debate and votes. Six of the 18 already have passed the House: HB2355, HB2356, HB2293, HB2732, HB2778, and HB2779. (See descriptions below.) These six will eliminate hundreds of millions of dollars in future revenue from the General Fund, and there are 12 more tax giveaways to be voted on. As noted in previous blog posts, these tax giveaways primarily benefit large corporations– like Microsoft, APS, TEP, SRP, SW Gas– specific business groups or industries, and wealthy Arizonans.
It is often said that a budget is a moral document. In our state budget, the Legislature supports corporations and wealthy Arizonans with never-ending, multi-year tax giveaways, that often have inflation adjusters. Arizona wouldn’t have an affordable housing problem, crumbling infrastructure, and grossly underfunded education system if the Legislature had long-term plans and multi-year, inflation-adjusted budgets to address those problems. Instead, programs and services that benefit the people of Arizona are lucky to get one-time funding and beg for more each year (or pass citizens initiatives). We don’t have a budget surplus; we have chronically underfunded programs.
Continue reading What Is the Cost? 18 Tax Giveaways Pass #AZ House Ways & Means (video)
All 12 tax giveaways or revenue reductions heard in the House Ways and Means Committee in the past three weeks passed– many on bipartisan votes. For the record, I was the only person who voted “no” on all of the tax giveaways.
To be clear, none of these tax reductions do anything to: increase education funding, increase access to healthcare, increase prenatal care, reduce adverse birth outcomes, reduce Adverse Childhood Experiences, reduce student debt, increase wages, foster workforce development, reduce poverty, or provide food and housing security for Arizonans. If you are not Microsoft, APS, TEP, SRP, SW Gas, qualified investors, resort owners, developers, contractors, or just rich people, you are not getting a tax break from the Republican Party.
In fact, to pay for education, the Republican Party wants to raise your sales tax while lowering taxes for corporations and elites.￼ Do you want to pay 10 or 11% of sales tax on every purchase? If you don’t, just say no to tax breaks for Microsoft, APS, SRP, TEP, SW Gas, and the richest Arizonans.
- Many of these tax breaks increase over time.
- Most of them have no sunset date.
- Most of them have no cost estimate.
- None of them have clear economic impact or job creation numbers– beyond the nebulous trickledown economics figures normally given by the Arizona Commerce Authority.
- None of them have clear performance measures.
- It takes 2/3 vote to get rid of them.
- No one has done the math on the total cost of all of them on an annual basis going forward.
We are creating a giant revenue hole in the future. This is fiscal irresponsibility.
Continue reading #AZLeg UPDATE: 12 Tax Giveaways Pass House W&M Committee in 3 Weeks (video)
How can a “pro-life” state be #50 for Adverse Childhood Experiences? Because the Arizona Legislature prioritizes corporate welfare over child welfare. It’s that simple.
The House Ways and Means Committee has passed six tax breaks in the past two weeks. Tomorrow’s agenda has 12 bills, including eight additional bills that are tax breaks or other means to reduce revenue. The Microsoft tax break (HB2771) that I warned you about a few weeks ago in on the agenda.
Ways and Means has passed six tax cuts so far in 2020. Has anyone done the math to determine the future annual hit if all of these tax breaks are passed. Probably not. We don’t have any JLBC costs estimates for some of them, and several are structured to automatically increase over time. The Tea Party– under Governor Jan Brewer, Senate President Russell Pearce, and several Legislators who are still in office– passed massive annual decreases in corporate income taxes, the results of which have been felt in the classrooms. When she left office, Brewer suggested that they may have gone overboard with the tax cuts. When Governor Dough Ducey took over, he said real men aren’t afraid to cuts taxes and has continued to cut, cut, cut. Let’s stop cutting and start investing. We have hundreds of millions of dollars in extra funds this year. Don’t let them give it away like they did last year.
Just to be clear– none of these 14 tax reductions would do anything to directly help public education, access to healthcare, reduction in poverty, workforce development or infrastructure. They are all about cutting taxes or giving tax credits to business.
Here are the bills that could reduce general fund revenue in the queue for Feb. 12. If you want the Legislature to invest in education, healthcare, and infrastructure– the People’s To Do List– instead of the corporate wish list, please voice your opinion on Request to Speak (RTS) or by phone or email to your Legislators (regardless of party).
Continue reading Tax Cuts R Us: Third Round of Massive Tax Cuts in House Ways & Means (video)
“How can Arizona increase education funding?” has been an ongoing question since the Tea Party started hollowing out public education and doling out tax breaks ten years ago.
This week the Legislature is hearing a few education funding bills. The Senate Education Committee is hearing two bills related to education funding on Tuesday, January 28: SCR1002 (Brophy McGee) and SB1059 (S. Allen).
SCR1002 is a ballot referral to extend the Prop 301 “temporary” sales tax for education that was passed by voters during the Great Recession, make it permanent, and raise the sales tax from 0.6 cents on a dollar to 1 cent (on top of what you are paying in sales tax now).
SB1059 dictates how the new money from the ballot initiative should he spent. (There’s a lot of detail in there. Check it out.)
Obviously, we need more money for public education at all levels. My question about SCR1002 is: who should be paying more in taxes? Sales tax (AKA Transaction Privilege tax or TPT) is a tax on the poor. Continuously raising sales tax at multiple levels of government is also not “business friendly” because it artificially raises prices to consumers. When some Arizona cities and towns are bumping up against a 10% sales tax, is it smart to continue to raise sales tax to fund state government? Some cities and towns have rent taxes and sales taxes on food. Those really double down on the poor. With a 10% sales tax rate, people would pay $10 in sales tax on $100 of food. Sales tax is one of the more volatile income streams for our state because it depends on consumer purchasing. When consumers are strapped for cash, their purchases go down, and the states revenue goes down.
Continue reading How Should Arizona Pay for Education? Tax the Rich? Or Tax the Poor? (video)
Monday, January 13, 2020, was opening day at the Arizona Legislature.
Opening day is always fun and full of political drama because there are protests, press conferences with multiple Progressive groups (labor unions, Planned Parenthood, teachers, and others), the House and Senate Democratic Caucus Press Conference, and a big party with great food hosted by House Dems on the 3rd floor.
Southern Arizona unionists filled two buses to come to the Capitol on Monday. Striking ASARCO miners were out in force. Recently, I have been seeing these guys on the strike line down at the ASARCO Mission Unit, when I am wearing a T-shirt, boots and jeans. One of them did a double take when he saw me in a dress, stockings, short high heels, and my power pearls at the Legislature.
Continue reading On Opening Day of #AZLeg, Right-Wing Ideology & the Peoples’ Response on Display (video)
For years, Democrats in the Legislature have been calling for a review of the tax credits and the other tax giveaways. The goal of the review process is to recommend continuation, amendment or repeal of tax credits.
Decades of “business friendly” bipartisan votes in the Legislature to reduce income taxes and boost the economy have left us with $661 million in income tax credits claimed (AKA lost revenue) and more than $1.6 billion in unclaimed tax credits, ready to be cashed in, according to David Lujan, executive director of the Center for Economic Progress. This is not sustainable.
For the first time since 2014, the Joint Legislative Committee to Review Income Tax Credits met on Dec. 19, 2019. This was an historic day, and I was proud to be part of it.
According to statute, this committee is supposed to meet before the end of each calendar year and review tax credits that were passed in designated years. For this meeting, we reviewed tax credits that were passed in years ending in four and nine. We reviewed three tax credits that were recommended for elimination in 2014 (motion made by then Rep. J.D. Mesnard), but no action was taken by the Legislature to actually repeal them. Two of those– Healthy Forest Tax Credit and the Agriculture Pollution Control Tax Credit– were again recommended for elimination at 2019 meeting because they have been mostly unused for years. Income tax credits that are not used for more than four fiscal years are supposed to disappear, but somehow they hang around in the code, even Senator and Committee Chair J.D. Mesnard complained about this at the meeting. The majority voted to continue the other tax credits with additional performance measures attached in some cases. (For the recorded, I voted to repeal all of them. Read on and learn why.)
Continue reading Progressives & Libertarians Debate Tax Credits at #AZLeg Income Tax Credit Review (video)
Drama, rumors, secrecy, backroom deals, coup attempts, flexible rules, and a bit of chaos are commonplace during the waning days of each session of the Arizona Legislature. This is the atmosphere in which our state’s budget is crafted each year.
The First Session of the 54th Legislature ended in the wee hours of May 28, 2019. The new budget took effect on July 1, 2019. New laws that had “emergency clauses” are already in place. All other laws take effect 90 days after the end of the session, which is August 27, 2019.
Here is a peak behind the curtain during the last days of the session and some high and low points in the legislation that was passed.
The Game Plan
In 2019, secrecy and chaos reigned supreme as the Republicans desperately clung to their standard game plan: hear and pass primarily Republican-sponsored bills; ignore all Democratic ideas, bills and constituents; make enough pork barrel deals with their members to get 100% of them on one budget; and ram the budget through in the middle of the night when voters are asleep and Legislators want to be.
There was more chaos than usual in 2019 because a few Republicans realized that the slim D-R margins in both the Senate and the House gave each R a lot of power. (Rep. Kelly Townsend showed the Republican leadership her power back in March when she starting voting “no” on every bill one day. Here’s the blog post and video.)
The chaos was amplified by totally random floor schedules…
Continue reading FY2020 Budget & #AZLeg Session Wrap-Up: What Just Happened? (video)
Where do the mayoral candidates stand on affordable housing, low-income housing, and homelessness?
I think that’s a great question, and I hope to find the answers at the upcoming Mayor and Ward 1 City Council Candidate Forum on Saturday, June 22. The event will be held at El Rio Center, from 12 noon – 2:30 p.m. and will moderated by Nancy Montoya from Arizona Public Media. According to the Blog for Arizona Calendar, the three Democrats running for Mayor and the four running for Romero’s Ward 1 seat are expected to participate.
What is the state of housing in Arizona?
Arizona’s Housing Crisis: Has the Legislature Done Its Part?
As rents and evictions increase, housing has become a huge issue across Arizona. Housing– like prison reform and charter school reform– got a lot of lip service in the Arizona Legislature in 2019. During the session, there were many opportunities to tackle the housing crisis in a meaningful way, but those bills died.
On a high note, the Legislature allocated $10 million for the Housing Trust Fund in the FY2020 budget, which begins in a few weeks. The Housing Trust Fund used to be $40 million per year until the Tea Party Reign of Terror swept the funds and left only ~$2.5 million in it. (Of course, back then, tax cuts were far more important than helping people keep roofs over their heads.)
Continue reading Housing, Homelessness & Gentrification: What Is the Path Forward?