After nearly a year of laboring, the Legislature has finally
referred to the ballot the governor’s one cent sales tax increase proposal. The
vote will be held on May 18.
The motion of expanding the sales tax base to some services
was scrapped – the sales tax base will remain the same. The estimate is that
the increase which will be effective from June 1, 2010 to June 1, 2013 will
raise roughly one billion dollars per year for the state. The one cent increase
will not be shared with cities and counties as is the extant sales tax.
Passage of the tax increase in May of this year will ease the
budget strain, but there will still be major cuts ahead in state government
since next year’s shortfall is estimated by the legislature to be $2.5B, and
$3.2B by the Governor. However, the infusion of the additional sales tax
revenue will make it easier for the State to adhere to the federal maintenance
of effort rules attached to the stimulus money.
The Sixth Special Session bills that accomplish the extension
of the lottery and the $100M university rollover have not yet been passed. What
is troubling is that the Sixth Special Session is still alive. Until
adjournment sine die, the effective date clock does not start to run. The bill
establishing the May 18 special election on the sales tax will not be effective
until ninety days, not counting Sundays, after sine die. If the special session
is not adjourned by the middle of the month there will be no special election.
(It should be noted that state law prohibits the use of
university resources to influence the outcome of an election (15-1633 ARS).)
Bills
S.B. 1011 Concealed Weapons; Faculty, School Grounds
This bill was heard on February 3 in the Senate Public Safety
and Human Services Committee, and was held pending some clarification regarding
the definition of faculty and the consequences of some other gun bills. The
universities strongly opposed the bill, with university police testifying along
with lobbyists. The bill does have a good deal of support and will require
strong, constant opposition to stop it. We are taking this bill very seriously and
will keep working against it.
H.B. 2311 University Funding; Education Plans
This bill from two years ago is back and on the House
education Committee agenda for 2/8/10. It is an attempt to work toward the
equalization of State General Fund support for students at State universities,
thus ignoring history, and mission differentiation. The university system is in
opposition.
Greg Fahey
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