June 17, 2006
FOR IMMEDIATE RELEASE

Legislature Increases Funding for State Priorities, Passes Half-Billion in Tax Relief – After getting governor’s agreement to sign balanced budget

(State Capitol, Arizona) – Senate President Ken Bennett and House Speaker Jim Weiers heralded passage today of a state budget that returns more than a half-billion dollars to Arizona’s tax payers, accelerates statewide freeway construction, provides for substantial teacher and correctional officers pay raises and expands school choice.

The $9.9 billion balanced budget, which takes affect July 1st, followed negotiations that resulted in the governor accepting the core Republican principles of broad-based tax relief, school choice and investment in infrastructure and public safety. The budget/tax relief package includes the following major provisions:

• The largest tax relief package in Arizona history that provides $310 million of permanent income tax reductions over two years and suspension of the $215 million state property tax for at least the next three years. This fuels Arizona’s vibrant economy while returning money to the Arizonans who earned it in the first place.

• A $345 million increase for highway and road construction throughout the state, an investment that is critical for a rapidly growing state.

• An 11% increase – over a half-billion dollars -- for the K-12 education system. This includes an additional $100 million this year to increase teachers salaries and $160 million doled out over the next two years to fully fund all-day kindergarten should local districts choose to do so. There is also $18 million to expand school choice for lower income, disabled and foster children contained in bills to follow next week that are part of the budget agreement.

• A $141 million bump for state universities that allows Arizona State University to expand its Williams Gateway campus and helps the University of Arizona retain experienced faculty and Northern Arizona University update aging buildings.

• $128 million for investments in public safety, including money for more meth interdiction, hiring 46 DPS officers, a $5,300 annual pay increase for corrections officers and prison beds.

• Nearly a half-billion dollar deposit to the “Rainy Day Fund,” giving the state protection against hard times with a balance of more than $600 million.

• A quarter-billion dollar boost to healthcare, including over $10 million for cutting edge research to help combat Autism and Alzheimer’s.

• More than a quarter-billion dollars to eliminate accounting tricks and gimmicks used to balance previous budgets, including the $191 million K-12 rollover and substantially eliminating the onerous practice of forcing businesses to make sales tax payments prior to when they would actually be due.

• A $60 million positive ending balance, without the aid of accounting tricks and gimmicks.

Unfortunately, Governor Janet Napolitano refused to allow $160 million to provide critical border security for Arizona. The comprehensive measure addressed the funding needs for Arizona to combat illegal immigration and its severe impact on our economy, environment and public safety, but was vetoed by the governor.

President Bennett said, “We do the things our government should do in this budget –build roads, fund education, better protect the public and put more money back into the state’s economy by putting more money back into the pockets of taxpayers. The one missing piece in this budget – and it’s a big one – is addressing illegal immigration. Time after time, we just could not get past the governor’s vetoes on this.”

Speaker Weiers said, “The real winners this year are hard-working Arizonans who get to keep more of their money through tax cuts. Businesses can be assured of lowered tax rates as they look to relocate or expand and can count on property tax relief as well. More money for freeway construction should free up our congested freeways and improve commerce. And our students throughout all grades can count on increased money for public schools and new vouchers to help special-needs children excel in school.”

President Bennett added, “We have an agreement with the governor on this budget, I fully expect her to fulfill that agreement and sign the bills.”

The legislature held firm to a balanced budget despite Governor Napolitano’s original deficit- laden spending plan.

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For further information contact:
Nick Simonetta, Communications and Policy Advisor to the Majority
 Arizona State Senate
Office: (602) 926-5418, e-mail: nsimonet@azleg.gov
OR
Barrett Marson, Director of Communications
 Arizona House of Representatives
Office: (602) 926-3233, e-mail: bmarson@azleg.gov