
As Arizona’s legislative stop-and-start carnival ride resumes this Monday, ESA voucher cost estimates continue to balloon to nearly $1 billion while future revenue projections evaporate. Hobbs and legislative Republicans are celebrating an early and “bipartisan” budget, but there’s zero guarantee our state will have the money to pay for it.
On Friday, the legislature’s nonpartisan budget analysts issued new projections of a $175 million shortfall in the revenue that is supposed to pay for this most recent budget. Individual income tax collections plummeted last month — in other words, the massive tax cuts former Gov. Ducey and Republican lawmakers passed in 2021 are now (as predicted) decimating our budget. To make matters worse, lawmakers spent every cent of our state’s surplus, leaving a very small $8 million margin for error, and leading analysts to warn that this year’s budget may not end up being balanced after all.
Save Our Schools Arizona warned when the flat tax was being debated, “This dangerous and permanent tax cut will impact our state for many years to come” — making it all but impossible to fund our state’s many priorities, including public education. If you’ll remember, our volunteer network joined other education advocacy groups in 2021 to collect hundreds of thousands of signatures to refer the flat tax to the ballot for a vote and stop this damage, but the state Supreme Court tossed the referral in the trash.
SOSAZ also cautioned this year, “Tax cuts subtracting from the general fund keep a competitively funded public education system forever out of reach.” We repeatedly warned lawmakers that Arizona was heading for a fiscal train wreck, necessitating immediate corrective action. JLBC was already projecting that future years would have little to no surplus due to Ducey’s ill-considered flat tax and the wasteful drain of universal ESA vouchers. If you’re frustrated and infuriated to see all of it coming true, you’re not alone. With federal COVID relief dollars drying up and Prop 123 about to go off a fiscal cliff, our schools are in serious trouble. We need our leaders to take this crisis head-on instead of hoping for a solution to drop from the sky.
Incredibly, even in the face of these projections, Republican lawmakers plan to advance bills this week that would slash state revenues even further. SB1577, forcibly choking off revenues if Arizona ever sees another surplus, and SB1559, a tax cut for corporations, are both on the House’s floor calendars for Monday.
Republican lawmakers also plan to push through SCR1015, which would ask voters to restrict Arizona’s initiative and referendum process by requiring ballot measures to collect signatures from a percentage of voters in each of Arizona’s 30 legislative districts: 10% for initiatives, 15% for a constitutional amendment. This anti-democracy measure would give any single district veto powers over the rest of the state, and would make citizen initiatives, including future education funding proposals, nearly impossible in Arizona.
The toxic combination of ESA voucher costs and flat tax impacts means the dream of funding public schools is exactly that — a pipe dream. We call on Gov. Hobbs and the legislature to rein in the unaccountable, wasteful ESA voucher program before it bankrupts not just the public schools that 92% of Arizona families choose, but the state as a whole. Use our newest one-click email here: bit.ly/K12Emergency