Arizona Economic Council

Our Mission

New Ad: Dodgeball


Our new Internet ad highlights the hits Arizona’s kids will take as a result of Governor Jan Brewer and the Legislature’s deep cuts to education.

 

Unfortunately, Governor Brewer and the Legislature have taken a “cut schools first” approach to balance the budget.  Protecting our schools is critical to building a strong foundation for Arizona’s economy.

Background for Dodgeball

Governor Brewer and the State Legislature cut $133 million from K-12 schools in a FY 2009 budget that was signed into law on Jan. 31.  As a result of the cuts, 7,400 Arizona teachers have been told they may not have jobs next year.  [Source: Capitol Media Services, Jan. 31, 2009; KPHO, April 27, 2009]

Governor Brewer said she would sign legislation to permanently repeal the education equalization tax, which could raise approximately $250 million for Arizona schools for FY 2010.  One of the largest beneficiaries of repealing the measure would be a N.Y.-based insurance company.  According to The Arizona Republic, "Calculations, based on Maricopa County property assessment records, show the biggest savings in 2006 went to the Phoenician resort and to New York-based Metropolitan Life Insurance Co. in 2007 and 2008.  If the tax is repealed, MetLife also would receive the biggest savings, nearly $150,000, for the upcoming tax year."  [Source: The Arizona Republic, April 4, 2009]

Governor Brewer made deep cuts to education after shrinking the state’s expected revenue.  Her $9 million cut to the state’s Department of Revenue cost the state $174 million in lost revenue – more than $40 million higher than her FY 2009 cuts to K-12 schools. [Source: Garriott Testimony, March 10, 2009]

Instead of making deep cuts to schools, Governor Brewer could have increased revenue through the collection of unpaid taxes. Brewer Administration official Anthony Forschino, who serves as assistant director of the Department of Revenue, said that severe cuts to the agency as a result of the Jan. 31 budget hampered tax enforcement efforts.  Of the $400 million in unpaid taxes owed to the state treasury, “businesses owe more than 60 percent of those taxes” and “451 businesses owe a total of $117 million.”  [Source: The Arizona Republic, April 2, 2009]


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