Many thanks to the PLAN subscribers who are taking time to contact legislators about the state budget plan that surfaced this week. That plan includes a $210 million hit to cities' impact fee funds -- a hit that ultimately will hit residents of established neighborhoods. The Legislature should not balance its budget by forcing local governments to raise taxes. It's clear -- if cities can't charge developers impact fees to make growth pay for itself, cities will either freeze growth or be forced to spread the costs of growth to all city residents.
Phoenix created its impact fee program in 1988 to pay the costs of new infrastructure development in our rapidly growing city. The philosophy is simple: the costs of new roads, water and wastewater systems and other infrastructure should not be borne by residents of established areas; rather, new growth should “pay for itself.” Phoenix’s impact fee program charges the costs of new infrastructure development directly to builders, with credits and offsets available on a case-by-case basis. Impact fees are NOT a tax -- by law the fees are actually a form of land use regulation that must meet strict constitutional requirements in order to be valid. As a result, the money that cities collect in impact fees is dedicated only to building the infrastructure that has been planned for the area they're collected in.
Phoenix is a great community because of engaged residents like you -- your calls and e-mails to legislators make all the difference! Keep up the great work.
Source: P.L.A.N.
Wednesday, April 29, 2009
Wednesday, April 22, 2009
Good News from the Legislature
Thanks to the advocacy of Children’s Action Alliance and other community partners, as well as legislative champions, the House and Senate Commerce committees both heard emergency legislation today that will help Arizona families, the state budget, and our economy. Both bills are expected to go through the legislative process in the next couple of days and be sent to Governor Brewer for her signature by Thursday.
S.B. 1322/H.B. 2632 will authorize the acceptance of federal funds to extend unemployment insurance benefits for 13 additional weeks for 34,000 Arizonans who are still looking for new jobs. This change comes at no cost to the state. Without this change, benefits would expire for these families, leaving them vulnerable to losing their homes and not being able to take care of their children. The extended benefits will bring $97 million into Arizona’s economy between now and the end of December, 2009.
S.B. 1102/H.B. 2631 will change the rules for renewing AHCCCS health coverage for childless adults. The change will mean that these adults will renew their coverage every 12 months instead of every 6 months. Without this change, Arizona would not qualify for $1.7 billion in enhanced federal match funds as part of the federal stimulus law. Lawmakers have already counted $500 million of these funds to balance this year’s budget. The remaining funds can be used to help balance the budget for next fiscal year.
Source: Children's Action Alliance
S.B. 1322/H.B. 2632 will authorize the acceptance of federal funds to extend unemployment insurance benefits for 13 additional weeks for 34,000 Arizonans who are still looking for new jobs. This change comes at no cost to the state. Without this change, benefits would expire for these families, leaving them vulnerable to losing their homes and not being able to take care of their children. The extended benefits will bring $97 million into Arizona’s economy between now and the end of December, 2009.
S.B. 1102/H.B. 2631 will change the rules for renewing AHCCCS health coverage for childless adults. The change will mean that these adults will renew their coverage every 12 months instead of every 6 months. Without this change, Arizona would not qualify for $1.7 billion in enhanced federal match funds as part of the federal stimulus law. Lawmakers have already counted $500 million of these funds to balance this year’s budget. The remaining funds can be used to help balance the budget for next fiscal year.
Source: Children's Action Alliance
Wednesday, April 8, 2009
Taxes Cost Jobs, Period.
Whether proposed by Republicans or Democrats, tax increases cost jobs. And some taxes are even worse for employment than others. That's what a recent economic analysis of Arizona's proposed tax increases by the Beacon Hill Institute demonstrates.
A $1 billion sales tax increase would cost Arizona 14,400 private jobs. A $1 billion state income tax increase would cost even more jobs, about 26,000.
While a $1 billion increase in the sales tax would reduce investment by an estimated $141 million, reinstituting the $250 million state equalization property tax would cost even more with $189 million in lost investment. The state equalization tax, even at a quarter of the size, would have a larger negative impact on investment than a sales tax increase.
The income tax is not quite so hard on investment and the property tax not so hard on employment, but combining the two as Democrats have proposed destroys both more jobs and investment than would a sales tax increase.
Arizona's budget deficit can be closed without tax increases. From comprehensive tax reform to reducing spending to creatively structurally reforming the way we fund education and healthcare, legislators have many options to consider that will speed our economic recovery now--without ushering in a new era of unemployment--and make Arizona a magnet for jobs in the future.
Source: Byron Schlomach, Ph.D for The Goldwater Institute
A $1 billion sales tax increase would cost Arizona 14,400 private jobs. A $1 billion state income tax increase would cost even more jobs, about 26,000.
While a $1 billion increase in the sales tax would reduce investment by an estimated $141 million, reinstituting the $250 million state equalization property tax would cost even more with $189 million in lost investment. The state equalization tax, even at a quarter of the size, would have a larger negative impact on investment than a sales tax increase.
The income tax is not quite so hard on investment and the property tax not so hard on employment, but combining the two as Democrats have proposed destroys both more jobs and investment than would a sales tax increase.
Arizona's budget deficit can be closed without tax increases. From comprehensive tax reform to reducing spending to creatively structurally reforming the way we fund education and healthcare, legislators have many options to consider that will speed our economic recovery now--without ushering in a new era of unemployment--and make Arizona a magnet for jobs in the future.
Source: Byron Schlomach, Ph.D for The Goldwater Institute
Friday, April 3, 2009
Fireworks and Finances
Today is Day 82 of the legislative session and Senate President Burns is still holding firm to his promise to hear only budget bills until the FY10 budget is completed (with one exception described below). The Senate has been hearing agency testimony and budget updates from the Joint Legislative Budget Committee. To see and hear the video of the committee hearing for any of the bills mentioned in this message, click on the bill link, then on "Show Bill Video" at the bottom of the bill page.
Fireworks!
The House, however, has been hearing bills. HB2258 Consumer fireworks; novelties; sales (NOW: consumer fireworks) (Andy Biggs, R - Gilbert) allows for the sale of “consumer fireworks” and “novelties” by dealers licensed by the state fire marshal. Licensing revenues would go into a new fund and be used for enforcement of the fireworks regulations required by the bill. The bill allows a city or town to regulate use of consumer fireworks and prohibits sale of consumer fireworks to anyone under sixteen years of age. Arizona has never permitted "consumer fireworks" and fire safety officials have expressed serious concerns about this bill. HB 2258 passed the House Committee of the Whole and now awaits Third Read action in the House.
Pennies in Your Paycheck
SB1185 Technical correction; disincorporation (NOW: conformity; internal revenue code) (Bob Burns, R - Peoria) conforms Arizona law to the Internal Revenue Code. This conforming bill is needed every year, but is complicated this year by the federal economic stimulus legislation that includes the "Making Work Pay" individual income tax credit. The new tax credit comes in the form of reduced federal income tax withholding -- which increases most employees' take-home pay. Under current Arizona law, state income tax withholding rates are tied to the federal withholding rates, so "Making Work Pay" has the unwanted effect of decreasing state cashflow by about $73 million. SB 1185 temporarily adjusts the state withholding rates to offset the withholding reduction, and then beginning in FY11 decouples state withholding rates from federal rates. Since it contains an emergency clause, the change in withholding rates can take effect immediately upon signature of the Governor.
Other Money Matters
On Tuesday, the Finance Advisory Committee (FAC), a group of economists that provides input to the Joint Legislative Budget Committee (JLBC), painted a grim picture of Arizona’s current state of fiscal affairs. The FAC reported that revenues are dropping faster than previously anticipated and recovery is still one year away. The FAC also estimates the state’s FY 10 budget to be $2.93 billion in the red, less than the $3.5 billion that was reported last month. With this information, legislative leaders continue to work behind closed doors on addressing both the current FY 09 budget shortfall of more than $500 million and the FY 10 budget.
State legislators asked the universities and other experts to noodle ideas to solve the budget shortfall other than cuts. Yesterday, they presented their recommendations. Read about their ideas in University experts recommend Ariz. tax changes, the Associated Press article by Paul Davenport.
Remember to SHOP PHOENIX and tell your legislators to protect city revenues!
Source: P.L.A.N.
Fireworks!
The House, however, has been hearing bills. HB2258 Consumer fireworks; novelties; sales (NOW: consumer fireworks) (Andy Biggs, R - Gilbert) allows for the sale of “consumer fireworks” and “novelties” by dealers licensed by the state fire marshal. Licensing revenues would go into a new fund and be used for enforcement of the fireworks regulations required by the bill. The bill allows a city or town to regulate use of consumer fireworks and prohibits sale of consumer fireworks to anyone under sixteen years of age. Arizona has never permitted "consumer fireworks" and fire safety officials have expressed serious concerns about this bill. HB 2258 passed the House Committee of the Whole and now awaits Third Read action in the House.
Pennies in Your Paycheck
SB1185 Technical correction; disincorporation (NOW: conformity; internal revenue code) (Bob Burns, R - Peoria) conforms Arizona law to the Internal Revenue Code. This conforming bill is needed every year, but is complicated this year by the federal economic stimulus legislation that includes the "Making Work Pay" individual income tax credit. The new tax credit comes in the form of reduced federal income tax withholding -- which increases most employees' take-home pay. Under current Arizona law, state income tax withholding rates are tied to the federal withholding rates, so "Making Work Pay" has the unwanted effect of decreasing state cashflow by about $73 million. SB 1185 temporarily adjusts the state withholding rates to offset the withholding reduction, and then beginning in FY11 decouples state withholding rates from federal rates. Since it contains an emergency clause, the change in withholding rates can take effect immediately upon signature of the Governor.
Other Money Matters
On Tuesday, the Finance Advisory Committee (FAC), a group of economists that provides input to the Joint Legislative Budget Committee (JLBC), painted a grim picture of Arizona’s current state of fiscal affairs. The FAC reported that revenues are dropping faster than previously anticipated and recovery is still one year away. The FAC also estimates the state’s FY 10 budget to be $2.93 billion in the red, less than the $3.5 billion that was reported last month. With this information, legislative leaders continue to work behind closed doors on addressing both the current FY 09 budget shortfall of more than $500 million and the FY 10 budget.
State legislators asked the universities and other experts to noodle ideas to solve the budget shortfall other than cuts. Yesterday, they presented their recommendations. Read about their ideas in University experts recommend Ariz. tax changes, the Associated Press article by Paul Davenport.
Remember to SHOP PHOENIX and tell your legislators to protect city revenues!
Source: P.L.A.N.
Wednesday, April 1, 2009
The Budget! Which One?
A wide variety of budget balancing proposals have been released within the last few weeks and state agencies were required to submit budget cut options totaling 5, 10, 15 and 20 percent of their appropriations. Legislators are far from making firm decisions about any of the options and are meeting in small groups to weigh in on their priorities.
The House and Senate Republicans have developed a budget plan – not yet balanced - which relies heavily on agency budget cuts and fund transfers. On the other side of the aisle, House Democrats have released a “Roadmap for Arizona’s Future” which relies less on agency cuts by increasing revenues by suspending tax credits and increasing selective taxes.
Last month, Senate Democrats announced budget strategies which also avoid deeper agency cuts by proposing revenue-generating options such as securitizing the state lottery and suspending tax credits. Meanwhile, Governor Brewer proposed a five-point plan that includes $1 billion in agency budget cuts. Specifics have not been released.
Source: Children's Action Alliance
The House and Senate Republicans have developed a budget plan – not yet balanced - which relies heavily on agency budget cuts and fund transfers. On the other side of the aisle, House Democrats have released a “Roadmap for Arizona’s Future” which relies less on agency cuts by increasing revenues by suspending tax credits and increasing selective taxes.
Last month, Senate Democrats announced budget strategies which also avoid deeper agency cuts by proposing revenue-generating options such as securitizing the state lottery and suspending tax credits. Meanwhile, Governor Brewer proposed a five-point plan that includes $1 billion in agency budget cuts. Specifics have not been released.
Source: Children's Action Alliance
Arizona School Districts Receive $9,500 in Per-Student Funding
Phoenix--Funding for Arizona public schools is a passionately debated subject. But the truth is, the state's complex accounting system makes it hard for policymakers to know exactly what is being spent on education. New figures released today take the guess work out of it and show that per-pupil funding in Arizona is more than $9,500.
The state provides funding to school districts in various categories. In addition to state funding, school districts receive money from local property taxes and other sources. The $9,500 figure is supported by a recent Joint Legislative Budget Committee study. It is also about $1,000 more per-pupil than the state spent during the 2003-2004 school year.
"One result of this many-layered approach is a general inability to easily determine how much money is associated with a single student in a single district or to understand how balance sheets are affected as students move around the state," said Dr. Susan Aud, senior fellow at the Friedman Foundation and author of the updated Goldwater Institute report "Student-Based Funding: How to Make Arizona Public Education Finance More Transparent and Accountable."
This study is an update of two previous studies Dr. Aud conducted for the Goldwater Institute. The first and most comprehensive explanation of public education funding, "A Guide to Understanding State Funding of Arizona Public School Students," was published in 2005. It was followed by the 2006 report "Opening the Books: 2006 Annual Report on Arizona Public School Finance." Both found that per-pupil funding was consistently under-reported in the news media and by education-related interest groups.
Dr. Aud calls on education policymakers to make school funding more transparent and easier to understand by simplifying the funding databases and using standardized terminology. She also recommends converting funding formulas to a standard per-child formula that would allow for easier accounting and funding portability.
Source: Goldwater Institute
The state provides funding to school districts in various categories. In addition to state funding, school districts receive money from local property taxes and other sources. The $9,500 figure is supported by a recent Joint Legislative Budget Committee study. It is also about $1,000 more per-pupil than the state spent during the 2003-2004 school year.
"One result of this many-layered approach is a general inability to easily determine how much money is associated with a single student in a single district or to understand how balance sheets are affected as students move around the state," said Dr. Susan Aud, senior fellow at the Friedman Foundation and author of the updated Goldwater Institute report "Student-Based Funding: How to Make Arizona Public Education Finance More Transparent and Accountable."
This study is an update of two previous studies Dr. Aud conducted for the Goldwater Institute. The first and most comprehensive explanation of public education funding, "A Guide to Understanding State Funding of Arizona Public School Students," was published in 2005. It was followed by the 2006 report "Opening the Books: 2006 Annual Report on Arizona Public School Finance." Both found that per-pupil funding was consistently under-reported in the news media and by education-related interest groups.
Dr. Aud calls on education policymakers to make school funding more transparent and easier to understand by simplifying the funding databases and using standardized terminology. She also recommends converting funding formulas to a standard per-child formula that would allow for easier accounting and funding portability.
Source: Goldwater Institute
PHOENIX TEA PARTY
Wow: KFYI 550 AM will be broadcasting live from the rally!
When: Wednesday, April 15, 2009 5:30 to 7:00 pm
Where: Arizona State Capitol, Senate Lawn
Who: The AZ chapter of American for Prosperity (www.aztaxpayers.org), KFYI 550 AM, Prop 13 Arizona, Arizona Tax Revolt, AmericanPoliticalAnalysis.com, FreedomWorks, many other allied pro-taxpayer organizations, a thousand-plus taxpayer activists from around the state, Arizona Senator Russell Pearce and Arizona’s best legislators, and several local media personalities, including J.D Hayworth, Bruce Jacobs, Mike Broomhead, from KFYI and Austin Hill from KTAR 92.3 FM.
Why: We need to protest (and stop!) the tax increases proposed by big-spending politicians at the federal, state, and local levels. Our message in a nutshell: NO NEW TAXES!
Parking: We are arranging for overflow parking near the Legislature, but early-birds will be able to park in the lots next to Wesley Bolin Park (east of 17th Avenue), and west of the Executive Tower (east of 19th Avenue). Carpooling with friends is a good idea!
How: Please let us know you will attend by sending an email to infoAZ@afphq.org. If you can send us your state legislative district (not your Congressional district), or if you can send us your city and zip code, we will let your state legislators know how many of their constituents will be joining them at the Capitol on April 15th.
Source:
Tom Jenney
Arizona Director
Americans for Prosperity
(Arizona Federation of Taxpayers)
When: Wednesday, April 15, 2009 5:30 to 7:00 pm
Where: Arizona State Capitol, Senate Lawn
Who: The AZ chapter of American for Prosperity (www.aztaxpayers.org), KFYI 550 AM, Prop 13 Arizona, Arizona Tax Revolt, AmericanPoliticalAnalysis.com, FreedomWorks, many other allied pro-taxpayer organizations, a thousand-plus taxpayer activists from around the state, Arizona Senator Russell Pearce and Arizona’s best legislators, and several local media personalities, including J.D Hayworth, Bruce Jacobs, Mike Broomhead, from KFYI and Austin Hill from KTAR 92.3 FM.
Why: We need to protest (and stop!) the tax increases proposed by big-spending politicians at the federal, state, and local levels. Our message in a nutshell: NO NEW TAXES!
Parking: We are arranging for overflow parking near the Legislature, but early-birds will be able to park in the lots next to Wesley Bolin Park (east of 17th Avenue), and west of the Executive Tower (east of 19th Avenue). Carpooling with friends is a good idea!
How: Please let us know you will attend by sending an email to infoAZ@afphq.org. If you can send us your state legislative district (not your Congressional district), or if you can send us your city and zip code, we will let your state legislators know how many of their constituents will be joining them at the Capitol on April 15th.
Source:
Tom Jenney
Arizona Director
Americans for Prosperity
(Arizona Federation of Taxpayers)
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