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.)