AZ Legislature Refers Sales Tax to May Ballot

by: Zelph

Thu Feb 04, 2010 at 20:43:07 PM MST

... the estimated $940 million the tax increase would raise would not be available until the fiscal 2011 budget year. Next year's deficit is about $3 billion.

There remains a $1.4 billion deficit for the 2010 budget year that this tax won't help with, even if it passes, which is seriously in doubt.  $1.2 billion of this gap is expected to be eliminated by borrowing against the state lottery and against state buildings, as well as rolling over payments to schools to the following year.

Democrats have complained that there is no guarantee that the tax, if it passes, will be used to fund education and health care as stated:

Some of the Democratic opponents complained that voters have been lulled into thinking that the sales-tax hike is a silver bullet. Even if voters approve sales-tax hike, said Rep. Kyrsten Sinema, D-Phoenix, Brewer's budget still calls for big cuts to education, health care and public safety.

Rep. David Schapira, D-Tempe echoed that. Although the sales-tax measure is written to direct two-thirds of the proceeds to education and the rest to health care and public safety, there is nothing to prohibit lawmakers from cutting other dollars from those funds, he said.

Some Democrats believe it was a mistake to give bipartisan cover to the governor's tax referral which "which won't work to stop big cuts or balance [the] budget."  Just what will happen if voters shoot down a regressive sale tax and Republicans in the State Legislature use this as a justification for slashing and burning education and health care even further?  

The Republican Dark Lord will be in Arizona today and tomorrow and he is not pleased with the betrayal of some of his minions in referring a tax increase to Arizona voters.  You better believe that many of them will heed their master's voice and do all they can to make sure that this ballot referral goes down in flames at the polls.

Farley Report, Feb. 2, 2010

by: Zelph

Tue Feb 02, 2010 at 19:35:09 PM MST

Howdy,  Friends O'Farley...

Remember the classic Bill Murray movie Groundhog Day? Where he keeps re-living the same day over and over again, and eventually starts trying to change his behavior to end the cycle? His attempts never work until he finally decides to do the right thing and take care of the most vulnerable citizens in town and do other kind things to help make his community a better place.

It is SO appropriate that today is Groundhog Day, since we are now in our SIXTH Special Session and are once again considering the Governor's sales tax referral. If only we could skip to the ending of the movie and have the guts to do the right thing for our state by approving a real budget plan that really provides the revenues we need to provide the services our citizens need.

Unfortunately, we seem to be stuck in the middle of the movie where we are changing our behavior in destructive ways, without solving the problem.

About two hours ago the Senate passed a series of special session bills including (for the first time) the sales tax referral with the bare majority of votes -- seven Democrats and nine Republicans. This action was indeed different from the past five special sessions.

What was not different was the fact that, even if the sales tax makes it through the House and passes muster with voters on May 18, it will still not fix our deficit.

Everyone in Arizona knows Governor Brewer has been pushing for a three-year, one-cent sales tax proposal and calling it her silver bullet to get us out of our crisis. The problem is, even her own budget proposal admits that the extra billion dollars a year won't even fill one-third of the hole we are in.

Here's just a few examples of what will happen EVEN IF THE VOTERS APPROVE this sales tax:

Farley Report, Jan. 26, 2010

by: Zelph

Tue Jan 26, 2010 at 20:02:58 PM MST

Howdy, Friends O'Farley...

It's been a quiet week in State Wobegon...

Actually, it has been anything but a quiet week. More legislators are declaring their intentions to run for more offices, committees are pumping out some really suspect bills, House Republicans are trotting out their corporate-bailout deficit-expansion package, teachers and historic neighborhoods are under attack, rumors of yet another Special Session are in the air, and the Republicans are still not willing to work with Democrats on budget solutions.

But there is some good news.

First, one of the best U.S. Transportation Secretaries we have ever had, Ray LaHood, put in to effect today a ban on driving while texting for all interstate truck and bus drivers. Violators will be fined $2,750, so our roads will be a little safer as of today. I will fill you in on our latest efforts to ban DWT in AZ in a couple of weeks.

Second, in even better news, the efforts of the payday lending industry to stave off their imminent demise have failed in their current form. These predators, spreading out all over the capitol, have been trying to reverse the clear mandate of the voters and gain a new lease on life through legislation sponsored by House Republican Whip Andy Tobin, R-Paulden.

Yesterday in the House Banking and Insurance Committee, Tobin pulled his bill at the last minute when it became clear that all Democrats and even some Southern Arizona Republicans will not budge in their opposition to payday lenders.

The predators and their lobbyists are not yet completely defeated -- they are now desperately shopping around concessions in their efforts to stay alive, so we must remain vigilant to assure that the stake goes through their heart as of June 30. I'll keep you posted on their ongoing attempts to make a comeback and will continue to push for their elimination.

Now on to the bad news.

Better Business for Arizona

by: jamesboyce

Tue Jan 19, 2010 at 10:28:05 AM MST

Farley Report, Jan. 19, 2010

by: Zelph

Tue Jan 19, 2010 at 19:39:43 PM MST

Howdy,  Friends O' Farley...

The Capitol is emptying out a bit this week:  Three Republican Senators have already announced their intention to resign and run for Congress -- Paton against Giffords, and Waring & Gorman for the vacant seat left by Shadegg's retirement.

Perhaps they were not looking forward to spending the rest of the session dealing with budget issues. Here's hoping that four more Republican Senators follow suit, giving Democrats a temporary Democratic majority in the State Senate until their replacements are named!

Last year the Governor decided to wait until June to issue her proposed budget. This year, it's right on time. Unfortunately, it's wrong on almost everything else.

Before we get to the bad news, let's start with the three things she did right. She did give a nod to a few Democratic ideas for revenues. She wants to slightly expand the sales tax to cover certain repair services, hire a few more auditors to bring in money from tax cheats, and stop the sales tax accounting credit which gives $20 million a year back to mostly big retailers as payment for filling out their tax forms.

These are good ideas, although there are a whole lot of additional ideas (billions of dollars worth, in fact) for closing tax loopholes that should also be on the table. Why only choose repair services, which would bring in $13 million a year? Why not also tax extended warranty sales -- the ones the Best Buy salespeople pressure you to buy when you get a big-screen TV? That would bring in $30 million. Or country club memberships? Or any of thousands of other products and services currently exempted from taxation?

She also is pushing her temporary one-cent sales tax increase to shore up revenues, but it is unlikely that this would be sent to her desk without being accompanied by the big tax giveaway package being heard in the House this Thursday. That's the one I previewed last week that will slash corporate income tax which shifting property taxes off big businesses and onto residential homeowners, including retirees on fixed incomes. This package combined with a sales tax increase would simply mean a shift off the rich and onto the middle class.

The rest of the Governor's budget is an all-out attack on the middle class, seniors, kids, education, cities and counties, jobs, hospitals, health care, and our future. Yes, she proposes a billion dollars in new revenues, (and $2 billion in new debt) but she still proposes more than a billion in new cuts, including $750 million to education. We pay more and get less.  Here are a few examples of how we all get whacked:

Shadegg announces his intent to retire, again - maybe.

by: Mackinac

Thu Jan 14, 2010 at 23:53:57 PM MST

Rep. John Shadegg has once again announced his intention to retire from Congress. He claims that this time, he is for real.

"While it would be difficult to leave this position at any time," Shadegg said in a statement, "it is particularly hard to do so now with the challenges we face as a nation, but it is necessary for me to do so."

- snip -

"Two years ago I considered retiring and briefly announced my intention to do so," Shadegg said in a statment, adding, "This time, however, my decision is irreversible."

In the 2008 election John McCain carried the 3rd district with 56% of the vote while Shadegg only managed to gain 54%. The district has been turning lighter shades of red over the past couple elections. In 2004 a Democrat did not even run, and Shadegg received over 80% of the votes cast.

Bob Lord was the Democratic candidate in the last election. I'm not sure if he plans on running again. One person who has announced plans to run for this newly opened seat is attorney Jon Hullburd. He released a statement today after the announcement of Shadegg's decision not to seek re-election.

Like many people, I was surprised to hear John Shadegg announce his retirement earlier today. His 16 years of service have been a defining part of this district and Arizona politics.  No matter who emerges from the Republican primary, I look forward to a spirited debate about the issues facing our country and our state.

I am deeply gratified by the broad community support I have received in the first three months of the campaign.  Our recent fundraising effort in the fourth quarter yielded $315,000, making us the Democratic challenger who raised the most in the West.  I plan to work hard over the coming months to ensure we have the resources on hand to bring independent leadership to the district and focus on getting our nation back on track. (Emphasis mine)

The Hill also gives us some teabaggers who might run as well.

-Former Shadegg Chief of Staff Sean Noble

-State Treasurer Dean Martin (who could also run for governor)

-State Sen. Pamela Gorman

-Former Arizona State University quarterback and NFL free agent Andrew Walter

-State Sen. Jim Waring

-State Rep. (and former Speaker) Jim Weiers

-State Rep. Sam Crump

Hold on tight, it's going to be a wild ride in Arizona politics this year!

Farley Report, Jan. 12, 2010

by: Zelph

Tue Jan 12, 2010 at 19:48:16 PM MST

Howdy,  Friends O'Farley...

It's Opening Week of Regular Session, but this legislative reunion doesn't quite have the same excitement to it after meeting more or less constantly for the previous year.

What does add to the excitement is the vastness of our fiscal crisis, and the persistent lack of leadership from the Governor and the legislative Republicans as we seek to address the crisis.

Here are the facts:

--> $1.5 billion deficit for this fiscal year, which is half over already
--> another $3 billion deficit for next fiscal year
--> We've already in debt to our necks, so there's very little left to borrow against.
--> It's too late to increase revenues by a vote of the people.
--> The state could simply run out of money by February or March.

Here are the Republican responses to the crisis:

--> The Legislative Republicans want to make the deficit bigger by enacting a huge package of corporate tax bailouts and a massive shift of property taxes off of big businesses and onto homeowners, including retirees on fixed incomes. They also want to cut another couple of billion dollars from education, health care, and universities, eliminating tens of thousands of additional jobs.

--> Governor Brewer wants an unspecified revenue increase to pay for future tax cuts for big corporations and the rich while making another billion in cuts. She announced this in her State of the State while blaming every Democrat from Governor Napolitano to the Attorney General to Congress to the President for "stealing our freedom". She did not say what we would have done without our $5 billion in stimulus money provided by these freedom thieves.

The governor did not tell us many details, but did unveil her plan to throw 300,000 Arizona citizens off their healthcare.

She wants to ask voters to rollback the eligibility level to qualify for AHCCCS health insurance from 100% of the federal poverty level to only 33% of the federal poverty level. Voters in 2000 decided to expand that coverage to cover all those in poverty, and we specifically rejected a competing initiative that would have done what the Governor now wants to do.

Let's parse this proposal a little more closely.

Senate President Bob Burns said yesterday that he believes that poor people were choosing to buy other things besides health insurance, so kicking them off AHCCCS would help them prioritize better.

The federal poverty level for a family of 3 is $18,310 in income per year. If that family were able to buy the same health insurance available to state legislators, without any subsidy from the state, they would have to pay $14,400 a year just in premiums, not including co-pays. That leaves $325 a month to pay for those non-essential luxuries like food, clothes and shelter.  I wonder what choices President Burns might decide to make in that situation.

These 300,000 will no longer get regular preventive care, so they will show up terribly sick at emergency rooms with no way to pay. Hospitals will have to turn them away to get sicker and possibly die, or take them in with no source of reimbursement and risk their own fiscal health.

That's why even the Republican- and business-friendly Arizona Chamber of Commerce opposes this terrible idea -- we will all pay for that in reduced availability of hospitals and clinics, and skyrocketing insurance premiums and medical costs.

Governor Brewer claims this will save us $700 million a year to kick these 300,000 people off healthcare. But as I learned this morning, we would also lose up to $1.5 BILLION a year in lost stimulus funds.

I am a member of a new committee to examine more closely the federal stimulus money and how it has worked in Arizona. We learned that there is another stimulus bill working its way through Congress that would offer us a desperately needed lifeline for this fiscal year and next. It could mean that we would get up to $1.5 billion or more over that period of time to help shrink our deficit.

But if we changed AHCCCS eligibility, we would violate that bill's eligibility requirements and lose that lifeline completely.

Environmental scorecard released

by: Mackinac

Sun Jan 10, 2010 at 20:10:32 PM MST

Ann Kirkpatrick (D - 1st district) 83%
Trent Franks (R - 2nd)  7%
John Shadegg (R - 3rd) 7%
Ed Pastor (D - 4th) 100%
Harry Mitchell (D - 5th) 73%
Jeff Flake (R - 6th) 7%
Raul Grijalva (D - 7th) 87%
Gabrielle Giffords (D - 8th) 93%

Jon Kyl (R - senator) 0%
John McCain (R - senator) 0%

It looks like there is a little room for improvement (from both parties) this year.

John McCain: Foreign Policy Expert?

by: Zelph

Wed Dec 30, 2009 at 21:38:17 PM MST

Would it be too much to ask for him to learn how to use the Google?  I guess at his age, you can't ask him to learn new tricks, but surely he has staff who know how to use the internet.

Do You Believe in the Tax Fairy?

by: Zelph

Mon Dec 28, 2009 at 22:37:27 PM MST

Actually it's impossible to balance the Arizona state budget without additional revenue.  Sadly, the RepubliKooks in the State Lege still believe in Voodoo Economics and answer, not to the voters of Arizona, but to their Lord and Master Grover.  They think if they cut taxes even more, the frickin' Tax Fairy will leave money under the pillow to balance the Arizona state budget.  It's bullshit and even many Republicans realize it's bullshit.  Sadly, it's the kooks who tend to win Republican primaries, because it's the RepubliKooks who vote in them.

So why are Dems in Arizona too timid to speak the truth?

I don't want to seem like a Concern Troll, but Republicans, isn't it time you stop electing kooks and morons?  Do you really want to be known as the "I'm With Stupid" Party that gets blamed for driving Arizona into insolvency?

Oh, don't worry.  Dems don't have the stones to call you on your bullshit anyways.  At least not the ones I've seen in the State Lege.  They're all listening to overpaid political consultants who say you should never ever attack Republican political philosophy in a "Red State".  Until they learn, Dems in Arizona will always be the Washington Generals.  Tell me again why Arizonans should bother to vote?  Why shouldn't we just pack up and move to some state that isn't self-selecting to be occupied by idiots?