Arizona Legislative Sessions Ends After Passing “Most Conservative Budget” In Over A Decade

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After heated debate, on Saturday the Arizona Legislature passed what is described as the “most fiscally conservative budget in over a decade. The budget was negotiated between House Speaker Ben Toma, Senate President Petersen, and Governor Hobbs.

“At a time when Arizonans are having to tighten their financial belts, so is state government. The Arizona House of Representatives has passed a fiscally conservative, structurally balanced state budget that solves the nearly $1.5 billion deficit, without touching the rainy-day fund or using budget gimmickry. The budget trims government and protects conservative priorities,” said Toma. It increases funding for local border support operations and assists fentanyl interdiction efforts by law enforcement. It funds transportation and infrastructure and maintains our state’s commitment to water security.

“I’m most proud of the fact that this budget fully protects the state’s universal Empowerment Scholarship Account (ESA) program which provides educational freedom for Arizona families. Democrats have long vowed to dismantle the program,” continued Toma. “As the sponsor of the universal expansion of ESAs, I was never going to let that happen. Eligibility for the program is unchanged and we have included several smart, commonsense reforms that improve this popular school choice program and increases accountability.”

“Following last year’s state budget, where Republican lawmakers provided inflationary relief to everyday Arizonans through $274 million in tax rebates distributed to struggling families, as well as a ban on the tenant paid rental tax taking effect this January, Republicans are again successfully supporting our hardworking citizens while simultaneously reining in spending,” said Petersen. “In this year’s budget, we defended more than $520 million allocated last year for much-needed transportation projects statewide. We also cut fees for Maricopa County drivers on emissions testing by 5%, and we banned fee increases on Arizonans from state boards for the next two years.”

“We tightened the state’s belt by trimming fat from state agencies, and we reallocated unspent tax dollars to the general fund to eliminate the deficit, without irresponsibly tapping into our rainy-day fund,” said Senate Appropriations Chairman John Kavanagh. “Most government operations within the state received a healthy and manageable 3.5% reduction in spending, with a few exceptions. Safe communities free of crime and a secure border are the biggest priorities to Arizonans and Republicans alike, and we want to ensure our budget reflects that. As a result, funding for the Department of Public Safety, the Department of Corrections, and the Arizona Auditor General remains intact, while we’re also investing millions in border security, all without raising taxes or creating new debt.”

“What’s not included in the $16.1 billion budget is an elimination of the historic universal ESA program or our School Tuition Organizations program providing tens of thousands of Arizona families the freedom to pick the best schools to meet their children’s unique learning needs,” said Majority Whip Sine Kerr. “We are continuing our commitment to providing every family in the state of Arizona with a quality education, no matter their zip code or economic status. Additionally, we said ‘no’ when Governor Hobbs and Democrats proposed eliminating our Arizona Freedom Schools at our public universities, which are dedicated to civics education and ensuring students are equipped down the road to lead our state to a brighter tomorrow.”

“Our budget also reflects our support for our citizens’ Second Amendment rights,” said Senator David Gowan, Chairman of the Senate Committee on Military Affairs, Public Safety & Border Security. “We’re funding two full time positions at the Department of Public Safety to address a backlog of concealed carry permit applications and renewals, with a requirement to prioritize Arizona residents first. This move can have a positive impact in our state by ultimately strengthening the safety and security of our communities as our citizens seek avenues to protect themselves, their families, and their private property. Additionally in this budget, we’re infusing crucial dollars into the Critical Access Hospitals (CAH) located in our rural communities, so these residents have convenient access to emergency care.”

The legislative session is now over.

Highlights of the $16.1 billion State of Arizona budget for 2024-2025:

• Reduces state spending by $1.7 billion below the 2023-2024 enacted budget (a 10% reduction).
• Reduces ongoing spending by $330 million.
• Protects school choice programs- both ESAs and School Tuition Organizations are funded for continued growth.
• Protects Arizona Freedom Schools.
• Does not pull dollars from the rainy-day fund.
• No new taxes or tax increases.
• No new debt.
• Reduces ongoing funding of state agencies by 3.5%, including cuts to universities by $23 million.
• Maintains law enforcement funding, while adding $5 million for local border security support and $4 million for fentanyl interdiction and law enforcement response.
• Prohibits board fee increases for 2 years.
• Lowers vehicle emissions testing fees by 5%.
• Ends ongoing funding for COVID federal programs.
• Maintains road infrastructure funding.
• Adds additional full-time employees to reduce concealed carry permit application and renewal time frames.
• Makes conservative policy and spending reforms to the Arizona Commerce Authority, the Arizona Department of Transportation, the Industrial Commission of Arizona, and the Board of Technical Registration.

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