Introduction
It's long been said that our state's budget reflects the
priorities of those who crafted it and that is as true this year as any. Arizonans
sometimes view what happens at the Legislature as specific to each session but
the reality is that it often takes work over several sessions to build
consensus and support for policy initiatives. Despite being a part-time
Legislature, our members of the Senate Democratic Caucus, working with staff,
are on the job throughout the year to build stakeholder support for sound
public policy that addresses the many and varied issues facing our constituents
and the state. We are committed to working across the aisle on the issues that affect
the lives of Arizonans and, when bipartisan consensus cannot be achieved,
advocating for issues that will move us forward as a state.
The challenges facing Arizona are many and range from
increasing investments in our education system from preschool through college,
responsible stewardship of our environment, criminal justice and prison reform,
common sense gun safety measures, investing in our infrastructure, protecting a
woman's right to choose and improving access to voting and the initiative
process for every citizen.
There were efforts this year to create a bipartisan budget that
addressed those challenges. After all, every Arizonan contributes to our state
budget and how their hard-earned tax dollars are spent is supposed to be determined,
at least in theory, by those they elect to represent them at the state capitol.
This year's budget, however, was ultimately approved along partisan lines. While
some of our Democratic ideas were included, this year's budget was entirely
crafted by, and largely reflects the priorities of, the party that holds the
majority in each chamber and the executive.
As we prepare for the upcoming legislative session in
January, the Senate Democratic Caucus is sharing this look back at last session
to answer the question, "What would the Democrats do if they were in
power?"
We offer this as a glimpse into an Arizona that could be.
Budget
Our caucus took the rare step this year of crafting our own
budget that reflects our priorities for Arizona. We went through this
time-consuming process with the hope that it would earn us a seat at the budget
negotiating table for the first time in well over a decade. We did it because
we believe that the 43% of Arizona voters who chose us to represent them
deserve to have their priorities reflected in our state budget. That did not
happen.
We went into the budget process with $840 million in
one-time revenue due to a combination of a healthy economy and deliberate cuts
to state government over the past decade.
But rather than invest in key services like education and
infrastructure, Republicans once again chose to permanently reduce Arizona's
ability to raise revenue. These tax policy choices have made Arizona's revenue
structure less progressive and increased the tax burden on the poor and middle
class.
Democrats fought another year of massive tax cuts. We fought
for better schools for all of our children, we fought for repairing our
crumbling highways, roads and bridges, and we fought for working locks in our
prisons and funding to help our most vulnerable populations.
Our budget proposed a much more substantial commitment to
address the crisis of homelessness that is gripping our state, which has grown
150 percent since 2015. Rather than helping our most vulnerable, however, this
budget prioritized handing out $346 million in tax cuts, which balloon to $531
million by 2022.
We had an opportunity this session to work in a bipartisan
way and take the next big step, building upon 20 by 2020, in restoring funding to our desperately underfunded
classrooms. Instead, this budget puts funding for Arizona schools at serious
risk with the sunset of the Trump tax cuts in 2025, the looming Prop 123 cliff
that same year and the possibility of a future recession. Permanently forgoing
this revenue for a half-billion-dollar tax cut is irresponsible.
This year's budget leaves human services providers further
squeezed, forced to provide mandatory services without sufficient funding and
underserve those who desperately need help. It chooses to stash cash in the
bank instead of investing in our schools, just so the governor can have his
billion-dollar talking point.
Unlike previous years, Democrats had a rare moment of
leverage this session and we used it to help increase Arizona’s statute of
limitations for victims of childhood sexual abuse. We also were able to invest
$68 million in District Additional Assistance so our public schools can replace
outdated textbooks and computers, while Republicans initially wanted to
allocate nothing. These are victories that will leave a lasting legacy for our
state.
Revenue
Over the last three decades Arizona's Republican legislators and
governors have systematically
decreased state revenues. In 29 of the last 30
years, the Legislature has cut taxes worth over $5 billion in annual revenue,
when adjusted for inflation and population growth.
Fiscal conservatives have long claimed that inflation plus
population growth should be the measuring rod of fiscal discipline. However,
given our Republican colleagues’ zeal for cutting taxes, the FY’20 budget is
less about fiscal discipline and more about deliberately and systemically
underfunding state government. The JLBC analysis of the historical trend of tax
cutting is illustrated in this graph below showing government spending as a
portion of economic activity (personal income).
If the tax cuts over the past 30 years were restored, the General
Fund budget would be over $5 Billion greater. The result is that Arizona simply
does not and cannot, without a two-thirds vote of each chamber and the
Governor’s signature, raise the revenue that is necessary to fund essential
governmental functions.
The tax cuts included in this year's state budget are the
continuation of that legacy and will leave our citizens, and the businesses we
need to thrive, facing a fiscal disaster in five years.
In 2017, the passage of the Trump tax cuts required the Legislature
to conform Arizona's income tax code to the federal changes. Simple conformity
would have resulted in an additional $274 million that could have gone toward
fixing our neglected roads and meeting the millions of dollars of capital needs
our schools and universities have accrued after years of underfunding.
Republicans used conformity as another excuse to forgo state
revenue via tax cuts. They claimed the cuts were necessary to make conformity
revenue neutral, but the cuts are in excess of $300 million, expanding to $500
million in five years – far more than needed to "offset" the
increase.
Compounding the issue is the fact that the federal
individual income tax provisions expire in 2025, while the state's
"offset" cuts stay in place. This means the money Republicans
allegedly "offset" to pay for their cut will disappear, leaving a
significant hole in state revenue. Coupled with the end of Prop 123's public
education funding that same year means a fiscal cliff that will further
complicate Arizona school financing and support.
Infrastructure
Across Arizona our roads and bridges are in disrepair due to
years of the Legislature sweeping highway funds to pay for tax cuts. Only
recently have we begun to restore those funds, but the damage has been done. A
modern infrastructure system is crucial, not only for the safety of Arizona
drivers, but for businesses to be competitive in getting their product to
market. This year's budget saw some good investment in projects like widening
I-17 north of Phoenix, but it also saw more than $30 million go to road
projects in Republican districts. Tax dollars should be prioritized for the
roads and bridges that are in critical need of repair, not projects in specific
lawmakers' districts.
Education
K-12
Arizona students are sitting in overcrowded classrooms,
using outdated textbooks and technology, and lack basic school supplies. Many
students do not have a permanent or prepared teacher and are likely missing a
nurse, counselor, or librarian. Despite 20
by 2020, funding for K-12 is still far below 2008 levels. When adjusted for
inflation, the state funds every student at $947 dollars less than we did in
2008.
That is why our proposed budget accelerated the restoration
of District Additional Assistance by appropriating additional $150 million ongoing
to replace outdated curriculum, textbooks and computers, fund non-classroom
personnel and repair crumbling buildings. Republicans initially wanted to give less
than half of that amount, but thanks to our efforts this year's budget included
an additional $68 million for DAA, though only as a one-time investment.
Arizona's student to counselor ratio is the worst in the nation, with
905 students for every one school counselor. That is why we pushed for, and
Republicans agreed to, allocate $20 million for schools to fund either a school
counselor, social worker, or school resource officer. If all of these funds
were used for counselors, the ratio would be lowered to approximately 373
students per counselor. While this will not address all our school safety
needs, this is a critical step in ensuring the social-emotional needs of all
children are met.
Arizona's tribal leaders have for years been requesting
additional help in the Office of Indian Education, which serves as a liaison
between tribal schools and outside agencies to provide resources for Native
American students to meet their educational and cultural needs. Our budget
would have allowed the Department of Education to add four full-time staff to
its existing staff of one full-time and one part-time. It's time we prioritize
the education of our Native American students.
The allocations made towards K-12 education in our budget
represent what Arizonans have demanded time and time again: fund our schools
properly. 88% of Arizonans believe there is a need for additional funding for our
public schools and voters support investments in education. Our budget reflects
those values of Arizonans by putting education first.
For years, Democratic legislators have introduced bills to
provide financial transparency and accountability of Arizona's charter schools
and this year saw an opportunity for meaningful charter school accountability
reform. We support charter schools and send our own children and grandchildren
to them. But we have known for quite a while that there are charter school operators
who take advantage of the system to enrich themselves with taxpayer dollars
meant for educating students. We have consistently asked for the same thing
that is expected of any entity that utilizes public dollars: be accountable, be
transparent and demonstrate that all your decisions are in the best interest of
the children that charter schools serve. Unfortunately, wealthy charter school
operators, their lobbyists and lawmakers who support them, and even some who profit
themselves, were able to derail this effort. We will push for reform once again
next session.
This year the Legislature made positive changes to how English
language learners (ELL) are taught in Arizona. This is a good first step that
must be followed by a full repeal of Prop 203, the harmful "English
only" law that forces students with no or limited English language skills
into a one-size-fits-all program known as structured English immersion. Our
teachers must have the flexibility to teach to each student's needs.
Higher Education
The budget we put together made a critical investment in
higher education – for both our public universities and community colleges.
We believe making a commitment to fund our state
universities beyond providing "one-time" investments is the best way to
ensure tuition costs remain as low and as stable as possible. Per student
funding for Arizona universities is 56% below 2008 levels, which equates to
$3,742 cut in per-student funding and has shifted costs from the state to
students and their families.
Working with Republican colleagues, we were able to include
provisions in this year's budget to address the severe physician shortage that
Arizona faces by funding an increase in the U of A medical school's capacity to
educate students in medicine. This physician shortage is felt most acutely in
our rural communities.
In 2015, along with a $99 million cut to universities, the Legislature
completely eliminated funding for Maricopa and Pima Community College District
operating state aid and STEM and workforce development state aid, and we have
failed to restore their funding since then. Our budget proposed fully restoring
these funds immediately because investing in our two largest community college
districts is vital to keep pace with the growth of our state – especially for
high-demand careers in healthcare, public safety, IT and manufacturing.
We believe these long-term investments in higher education
are responsible and pragmatic because the best way to see future economic
success in Arizona is with a highly skilled workforce.
Social Safety Net
Homelessness
Currently, there are over 36,000 homeless people in Arizona,
of which 37% are families, usually a single mom with children. In fact, the
U.S. Department of Education reported almost 25,000 public school students
experienced homelessness during the 2016-2017 school year. Arizona's Housing
Trust Fund represents the only state monies solely dedicated to housing needs,
but during the Great Recession its funding was slashed to just $2.5 million dollars
until this year's budget made a modest increase. Arizona’s wonderful
non-profits that provide critical services and housing for our homeless rely on
the Fund for grants to keep their services going. But as the Fund was cut, so
was their ability to help our most vulnerable Arizonans. That's why the Senate
Democrats made substantial restoration of the State Housing Trust Fund a
cornerstone of our budget with a $30 million deposit in Fiscal Year 2020 and $20
million annually thereafter. Investing in the Housing Trust Fund not only
brings matching federal dollars back to Arizona, it also encourages private
investment in low-income housing. In fact, according to the Arizona Housing
Coalition, for every $10 million invested in the Fund, there is the potential
for $23 million in economic impact and the creation of 200 jobs annually.
Kinship Care
When DCS removes a child from their home, 43% are placed
with relatives, usually grandparents, as it's the first choice of placement.
National research confirms that abused and neglected children placed in kinship
care experience increased stability, higher levels of permanency and better
behavioral and mental health. Kinship caregivers in Arizona caring for a family
member typically removed for abuse or neglect, however, receive just $75 per
month. That isn't nearly enough to give a child the support they need and keep
the household financially stable. That's why our budget would have raised the
monthly stipend to $250 while streamlining the child-only application process
for Temporary Assistance for Needy Families, which would result in an
additional $164 monthly support for kinship care. We must step up for our
kinship families who have already stepped up for Arizona's children.
Sexual Violence
Someone is sexually assaulted every 92 seconds in America
and a child is sexually assaulted every 9 minutes. Despite the fact that in
2014 there were 2,445 cases of rape reported and 200 cases of attempted rape,
Arizona does not have any state sexual violence funding. That is why our budget
directed $5 million to DES for sexual violence programs, including innovative
community-based Rape Crisis Centers, available 24/7 and open to survivors
without barriers or judgement. Funding comprehensive support for survivors of
sexual violence will help them heal and return to life and work.
Healthcare
Women's Reproductive
Health
An Arizona woman's right to determine whether, when and how
to have children is a fundamental constitutional right that has been chipped
away over many years by extremist conservative groups and their legislative
allies at the State Capitol. This year saw Republicans gut the state's 211
community information referral program and instead give $7.5 million in
unaccountable tax dollars to a questionable Texas non-profit that discourages
women from having an abortion. Democrats fought against this outrageous use of
state resources for ideological propaganda and will stand vigilant against
further erosion of woman's right to choose.
Dental Services for
Pregnant AHCCCS Recipients
Gum disease affects approximately 40% of pregnant women and
is even more prevalent among low-income women. Left untreated, this can lead to
progressively worse oral diseases for the mother. Our budget committed over $4
million to provide comprehensive dental care to eligible pregnant women.
Prevention and education on oral hygiene and nutrition would save money by
avoiding costly treatments and improve the overall health of both mother and
child.
Equal Rights
Democrats made a concerted and prolonged effort this session to have
Arizona be the 38th and final state to ratify the Equal Rights
Amendment because we believe women deserve to earn equal pay for equal work and
to be viewed as equal under the law under all circumstances. Sadly, Republicans
who supported our effort were bullied by their colleagues to defeat the
measure.
We will continue this effort next session along with
measures to protect and expand rights for LGBTQ+ Arizonans because no one
should be fired from a job or denied housing just because of who they love.
Environment
After months of stakeholder meetings and negotiations, the
Drought Contingency Plan was adopted this session. This important measure buys
Arizona time before Lake Mead drops to levels where dramatic water reductions
will be required. One thing is clear: this action will only be a first step of
many needed to ensure our state’s water security. We must work toward a
sustainable water future, not spend millions on drilling deeper wells that
further drain our already depleted aquifers as this year's Republican budget did.
This is a drought and climate change issue, so our state's leaders must convene
discussions with a large variety of stakeholders, including scientists, the
environmental community and the agricultural community as we move this
discussion forward.
While this year's adopted budget begins to address a few
environmental issues - like eradication of salt cedars in riverbeds, which we
have been advocating for years – Arizona Republicans continue to ignore the
ongoing climate crisis. Instead of taking steps to mitigate and adapt to a changing
climate by supporting measures like our SCR 1004 and SB 1542, which would have
urged a transition to renewable energy and prohibited utility shutoffs in the
summer and winter, Republicans swept existing environmental protection funds to
avoid spending general fund dollars on the Water Quality Assurance Revolving
Fund.
The state needs to make an ongoing commitment to best land
management practices that prevent wildfires, promote healthy forests and
protect vital watersheds. Our SB 1477 would have been a step in this direction
but was thwarted, despite passing the Senate with bipartisan support.
This budget also lacks any additional funding for the State
Historic Preservation Office which, among other important roles, ensures
compliance with the Antiquities Act. Just last year we saw a state agency
completely disregard the Antiquities Act and destroy sacred tribal cultural
artifacts. A small appropriation for some more staff would have gone a long way
to prevent this from happening again. Instead, Republicans chose to spend a
comparable amount on wine promotion. This sends a very clear, insulting message
about the Legislature's priorities when it comes to respect for our natural
resources and our tribal heritage.
Criminal Justice
When Republicans work with Democrats, the Legislature works
for all Arizonans. HB 2466 is a perfect example of Republicans working across
the aisle to pass legislation that makes our state safer from those who prey on
our most vulnerable. This legislation expands the statute of limitations from 2
years to 12 years after a person reaches the age of 18 for them to file a civil
action on damages a person suffered as a minor for either sexual conduct or the
failure of a person or organization in authority to report the conduct. This
bill will allow Arizonans to finally find justice and closure against their
childhood abusers.
Mostly, however, bills sponsored and supported by members of
the Senate Democratic Caucus were not considered in crafting the 54th
Legislature legislative footprint. Bills that would provide real second chances
to individuals who have repaid their debt to society, fund programs that curb
incarceration and reduce recidivism, and allocate resources wisely in
incarcerating individuals who continue to pose a threat to society were
stonewalled by Republicans.
Our SB 1437 would have allowed a person who has successfully
complied and completed his or her sentence a chance to be judged on merit instead
of a checkbox on an employment application disqualifying them from further
consideration. A person who has a job and the ability to be self-sufficient is
a person who is less likely to be incarcerated. For most former inmates,
finding a job after release is almost impossible.
Gun Safety
Since January 1 of this year, there have been more than 250
mass shootings in the United States. Rather than confronting this epidemic that
is ravaging our communities, small and large, Republicans wanted to make it
easier for people to carry their loaded weapons into polling booths and on school
campuses.
As we do every year, Democrats sponsored several
common-sense gun safety bills but, just as happens every year, none of these
even got a hearing. Our proposals for universal background checks for gun
purchases, extreme risk orders of protection to get guns out of the hands of
dangerous individuals and strengthening our laws to prevent children's access
to guns in their homes are commonsense measures to address the plague of gun
violence that are overwhelmingly supported by the public. A recent poll put
public approval for universal background checks at 93% and 80% for extreme risk
orders of protection.
Elections
The right to vote is sacred and essential to our democracy.
We should have policies that modernize our elections and make it easier, not
harder, for eligible Arizonans to vote. Firm in that belief, Senate Democrats
sponsored multiple bills this session that would have expanded the hours of
operation for early voting locations, allow voting to continue through the
weekend before Election Day, and create same-day and automatic voter
registration as simple and commonsense proposals to streamline our elections
system and make voting as free and fair as possible in Arizona.
Republicans have instead focused their energy on making it
harder and more intimidating for people to vote. They passed a bill that
requires a person to affirm under penalty of perjury that they are experiencing
an emergency in order to vote during the weekend prior to election day.
We should be fully funding our elections to ensure that these are
administered in a manner that is secure and timely. This year's Republican
budget doesn’t come close to funding our elections, and yet the budget
appropriates half a million dollars to the AG’s office for a voter fraud
prevention unit even though there is no proof of fraud. We should instead be
funding the Secretary of State's office for cybersecurity measures that will
secure our elections systems and in fact help prevent the hacking of our elections.
The initiative process, which upholds the will of the
people, has been under attack by Republicans for several years. This past
session was no exception. SB 1451, which passed along a party-line vote, added restrictions
that make it so burdensome and costly for engaged citizens and grassroots
organizations to collect signatures that only initiatives backed by special
interests will make it to the ballot.
Dark money has hijacked the will of the people. Monies from
corporate and special interests that cannot be traced have flooded political
campaigns. Democrats believe in transparency and accountability and our SB 1596
would have allowed the identification of original contribution sources of
campaigns so the electorate can know to whom the candidates are beholden. Just like
all of our elections bills, SB 1596 was never given a hearing in the
Republican-controlled Senate.
Conclusion
This is a glimpse into an Arizona that could have been and
could still be – a more fair, forward-looking, inclusive state government that
provides the building blocks for a better future and offers every Arizonan a
chance to achieve their full potential.
Our Republican colleagues love to say that Arizona is the
best state in the nation for business. That may be true if you own a large
corporation and benefit from corporate taxes that are near zero but is less
true if you're a small business owner who pays taxes and relies on government
to provide the infrastructure and services needed to succeed.
The fact that Arizona is also the 47th worst
state to be a child is a stark indicator that we've neglected our future
generations in pursuit of quick business growth. It's possible to be both business
friendly and provide education and healthcare for our children, our leaders just
need the political will to do so.
Taxpayers understand that government plays an irreplaceable
role in their lives and they're willing to pay taxes to fund those services
only the state can provide. The decades-long practice of slashing education,
roads and healthcare to pay for corporate tax cuts, while shifting most of the
cost of state government onto the backs of Arizona's hard-working taxpayers,
must be stopped and reversed.
Our vision for Arizona respects every one of our citizens
and their right to equal treatment under the law, free from discrimination;
their right to collectively bargain for fair pay and working conditions; their
right to feel safe from gun violence; and their right to pursue their dreams.
Thank you for taking the time to read our ideas for Arizona.
While lengthy, this document does not fully encompass all the issues we dealt
with last session or the many issues facing our state.
In the coming months we will continue our work to identify
and research pragmatic, commonsense solutions that improve the lives of every
Arizonan and further our economic development.
As we turn to preparing our legislative agenda for the
upcoming session we will continue our work with stakeholders, legislators of
both parties and the people of Arizona. We invite you to participate in our
process by emailing
SenateDems@azleg.gov and sharing your thoughts on any of
these or other issues that should be considered by the Legislature.
