Our 7th year, week 22
The Arizona legislature has finally adjourned sine die, after finalizing the FY2027 budget. This session went considerably longer than 100 days, but it did not have to. We could have had this budget deal over a month ago. But Katie Hobbs had to engage in her usual practice of delaying, misleading, and obfuscation. At least we can be thankful that the session did not go until the last day in June, as it did last year.
Key Provisions of Arizona’s FY 2027 Budget
General Fund Spending
- Total general fund spending is projected at $18.7 billion.
- This represents a 4.9% increase compared to the previous fiscal year.
Tax Relief Measures
- The budget includes historic tax cuts at the state level, aligning with federal tax reforms.
- Approximately $1.45 billion in tax relief is planned over four years.
- Key tax relief features:
- Increased standard deduction.
- New deductions for seniors and eligible tipped and overtime income.
- Property tax relief for disabled veterans.
Investments in Essential Services
Area of Investment Where Allocated Education Significant funding for K-12 education, including literacy coaching and additional assistance. Public Safety Funding for corrections operations and law enforcement support. Child Welfare Investments in child safety operations and foster care support. Spending Growth Control
- Overall spending growth is limited to 3.05%, below the combined rate of population and economic growth.
- The budget aims to maintain essential services while reducing net ongoing spending by $68 million.
Conclusion
Arizona’s FY 2027 budget emphasizes fiscal responsibility, prioritizing tax relief and essential services while controlling spending growth.
During the last few days of the session, there was a mad dash to finalize over 100 bills that were pending. Most of these bills dealt with housekeeping items, but there were some exceptions.
Most notably, we saw action on over 30 ballot referral bills that were pending. A list of those bills may be seen at https://shorturl.at/XmVD9
These are bills that, if approved by both chambers, go to the Secretary of State for inclusion on the November ballot. The voters have the final say by voting them up or down. The governor is totally out of the loop in this process.
Since the ballot is already rather crowded, there is a limit to how many bills can be placed on it, and prioritizing is essential. That is why we have only seven such bills going to the Secretary of State. Here are the seven that made the cut.
For more information on any bill, click on its bill number
| HCR2001 | citizenship; identification; contributions; early voting |
| HCR2003 | interscholastic; intramural athletics; biological sex |
| HCR2040 | NOW: school districts; labor organizations; resources |
| HCR2044 | preferential treatment; discrimination; prohibited acts |
| HCR2048 | NOW: military families; scholarship accounts |
| SCR1004 | NOW: photo enforcement systems; voter approval |
| SCR1032 | educator salary increases; school reporting (NOW: instructional expenses; operational spending; enforcement) |
It is now time for these Reviews to take a break until the first week in January, 2027, when the next session of the Arizona legislature convenes. Have a great rest of the year.
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