Arizona lawmakers have some big-ticket issues to address when they go back into session in less than two weeks. Neither of those issues is school vouchers, but each political party is trying to tie them in.
Tax cut conformity
The Arizona Legislature must address the issue of federal tax conformity when lawmakers go back into session in less than two weeks.
Earlier this year, President Trump passed significant tax cuts in his so-called Big Beautiful Bill. Democratic Gov. Katie Hobbs then announced she wants to implement tax cuts for Arizona’s middle-class families, which mirror some of the cuts in the federal bill.
But she didn’t call for adopting other tax cuts.
Republicans like state Sen. John Kavanagh (R-Fountain Hills) argue the state needs to conform fully with the federal cuts.
“The governor wants to do just individual tax breaks, which is about $220 million, and the Republicans would like to do the full $440 million, which includes businesses,” he said.
GOP lawmakers argue that having different tax cuts for state and federal forms will be confusing for residents. The matter is expected to be one of the main issues for lawmakers to address early this year.
As for how to make up for lost tax revenue, Hobbs has indicated she wants to cut down on Arizona’s universal private school voucher program, called Empowerment Scholarship Accounts.
That’s considered a nonstarter with GOP lawmakers.
They in fact want to tie ESA protections into another pressing financial matter: extending Proposition 123.
Prop. 123
Arizona lawmakers will have to come to an agreement this year on putting an extension on the ballot for Prop 123, which helps fund public schools with state land trust revenue. Not sending it to voters sooner led to lawmakers spending a lot of money last session.
Kavanagh said getting the issue done is a priority.
“We didn’t send it to the voters for renewal and we had to backfill it. We don't want to do that again this year, but a lot of members want to have some protections for ESAs, along with that Prop. 123, which goes to district schools,” he said.
Democrats and Republicans are in a standoff over whether the Prop. 123 measure voters get in the next election should include protections for private school vouchers.
Democrats want that to be separate, but Republicans want to make the Prop. 123 extension contingent on enshrining ESAs much deeper into state law.
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