Arizona Superintendent of Public Instruction Diane Douglas offered a stamp of approval for Governor Ducey’s proposed fiscal year 2019 state budget. Douglas, who has been willing to take on the governor in the past, praised the restoration of funds cut in past budgets.
The Governor’s plan outlined a five-year phase-in of funds to both district and charter additional assistance funds. The funds can be used for school facilities, but will provide districts and schools with the flexibility to support such needs as teacher salaries.
“It is great to finally see a path forward to restoring recession-era cuts to Arizona’s school facilities,” Superintendent Douglas said. “It was most encouraging to see one of the plaintiffs in the pending school facilities lawsuit discontinue its litigation in response to this proposal.
“I have always preferred paying teachers instead of lawyers. I am pleased to join Senate President (Steve) Yarbrough, House Speaker (J.D.) Mesnard, as well as local school superintendents and officials in supporting the plan.”
The Governor’s budget also designates $7.4 million towards important needs at the Arizona Department of Education.
This includes $5.3 million to ensure the continued maintenance of the Department’s student data system, $1.1 million for the continued development and implementation of Arizona academic standards, as well as an additional $1 million for statewide assessments.
“I’m pleased that the proposed budget acknowledges real needs at the Department,” Superintendent Douglas continued.
The anti-school voucher group, AZ Schools Now, is not as enthusiastic. They claim that the proposal “closes only a small portion of the funding gap that has persisted since the recession. Under the governor’s proposal, public school operational funding would remain $950 million below 2008 levels.’
AZ Schools Now issued a statement saying the group “remains committed to working with the governor’s office and the Legislature to find sustainable, permanent and equitable solutions to strengthen our public schools.” The group is considered inflexible and appears to be determined to solve the funding issue by collecting more taxes, increasing existing taxes, and gutting the school voucher system:
| Distribution Description | Amount |
| Hire back collectors and audit staff at the Arizona Department of Revenue to collect taxes that are owed | $70 million |
| Freeze individual and corporate income tax cuts still phasing in | $22 million |
| Eliminate the four private school tax credits and the public school extracurricular tax credit | $207 million |
| Increase the minimum corporate income tax to $500; must be paid after credits claimed | $17 million |
| Extend the transaction privilege tax to warranties and service contracts | $24 million |
| Issue bonds for new school construction instead of paying cash up front | $90 million |
| Require all property taxpayers to pay the full qualifying tax rate (QTR) property tax for education funding | $208 million |
| Raise the state equalization property tax rate by $0.05 per $100 of assessed valuation to contribute more to total school funding ($7.50 more per year for a $150,000 house) | $29 million |
| Raise income tax rates for households with incomes above $500,000 | $250 million |
| Redirect “results-based” funding that’s only going to “A” rated schools | $38 million |