If it sounds too good to be true…

Okay, so maybe Governor Ducey and the Legislature really are trying to solve the problem. You know, the one they, and those before them, created by pushing tax cuts, corporate welfare, and school privatization. But, it is REALLY hard to have the faith, when they throw out words like “advance-appropriated.” As in, “we can’t give you all 20 percent right now teachers, so we are going to advance-appropriate it in the next two budgets.”

I googled “advance-appropriate” and got nothing on the first page of search results. On the second page, there was a report from the New America Foundation titled, “Advance Appropriations: A Needless and Confusing Education Budget Technique.”

The New America Foundation appears to be fairly non-partisan with a vision that includes, “Equitable, accessible high-quality education and training over a lifetime”, “A society that promotes economic opportunity for all”, and “Equal representation in politics and participation in accountable governance.” Its Board of Directors includes New York Times Op-Ed Columnist David Brooks, ASU President Michael Crow, and many others from business, higher-education, and journalism.

Their report on advance appropriations referenced above, discusses the practice of this funding mechanism in Congress, and calls such a, “rarely understood budgeting approach that shifts funding into the fiscal year following the year covered by the appropriations process.”

In the report’s summary on the first page, it states that,

Advance appropriations add complexity to the education funding process and are of no practical benefit to recipients…Congress should end advance appropriations for education programs by providing a one-time funding shift that moves advances back a fiscal year so that they align with the current funding cycle. A new scoring rule to prevent future advances should also be enacted. The combined effect will reduce complexity and increase transparency in the federal education budget process. Such a change does not increase or decrease education funding. But it does promote transparency, simplicity and clear decision-making in federal education budget matters.

Likewise, the Government Accountability Office’s Glossary of Terms Used in the Federal Budget Process states,

The use of the advance appropriations technique makes it difficult to assess the actual level of funding…because the program is funded in three pieces…Education advance appropriations also make it difficult to compare spending to the rest of the federal budget, because virtually all programs funded through appropriations receive only one regular appropriation.

Fast forward to yesterday and Arizona Capitol Reports writing that,

The budget appears to fix what has been a source of contention among teachers who worried that the raises promised in future years would never materialize. To ensure that teacher pay raises in future years get funded, the raise money will be advance-appropriated. The budget advance appropriates the five-percent raises in FY20 and FY21, an allocation that could only be reversed if a future Legislature votes to take the raises out of the budget. The $371 million that Ducey promised in district additional assistance is also advance-appropriated in the proposed budget.

Call me cynical, but what’s the difference between “advance-appropriated” and “a promise”. The statement above, that “an allocation that could only be reversed if a future Legislature votes to take the raises out of the budget” doesn’t provide me much peace of mind. After all, our Legislature routinely approves budgets at the last-minute, in the dead of night, to provide the least amount of transparency possible. And, even when we have laws that provide dedicated funding to education, they have managed to refuse to pay in accordance with the law – Prop. 301 inflation funding (that resulted in Prop. 123) ring a bell?

This latest workaround to the REAL solution – finding or creating new, dedicated, sustainable funding for K–12 education, isn’t the only such shell game obfuscating the truth. You may have heard that even with the state trust lands money Prop. 123 delivered, our districts are still funded at almost one billion less per year than in 2008. What you may not have heard, is that for the past decade, the state has rolled over each year’s final K–12 payment of $930 million to the next fiscal year. The Grand Canyon Institute (GCI) reported in its January 2018 report titled: “The State of the State Budget 2018: The Revenue Systems is Broken” that,

The lack of revenue resources means the state will likely enter the next recession with this rollover still on the books.” The report goes on to say, “With dollars extremely tight, the state has been unable to allocate funds to eliminate rollovers, so continues the $930 million K–12 rollover whereby the last payment of the past fiscal year is rolled over into the next one. This rollover represents 9.5 percent of the General Fund expenditures, more than three times as large as the use of rollovers in FY2008…The rollover is twice as large as the budget stabilization fund of $460 million – and consequently hides a significant ongoing deficit.” When the General Fund per capita real dollars (the state now has only $3 for every $4 it had in 2007), and the rollovers as a % of the General Fund are combined, Arizona is not running a balanced budget, but a deficit of “$5 billion ($1 billion in rollovers and $4 billion in lost revenue not recovered since FY2007 – half of the General Fund).

These funding schemes may work in good times, but what happens when the inevitable downturn arrives and the bills come due? Don’t think we want to take out a second mortgage on the Capitol buildings sold and leased back at a considerable cost to the state under Jan Brewer’s reign. It is way beyond time that our Governor and Legislature give up on the gimmicks and make the tough decisions to truly deliver for the people of Arizona. That is, oh by the way, what REAL LEADERS do. ASU economists have credited 90 percent of the state’s decline in revenue on tax reductions and analysis by GCI shows that the reliance on trickle-down as a viable economic policy has not produced the jobs promised. “Actual state employment growth” writes GCI, “has lagged below the ”natural growth“ estimated by the JLBC in 2011 [with the New Employment Tax Credit]…Arizona’s employment performance here is far less with about one-third of the actual employment growth actually translating into jobs being eligible for the tax credit.”

Unfortunately, Governor Ducey and this Legislature, seem blind to the truth and unwilling to do what needs to be done. Just think back if you will, to May 2017, when AZ education advocacy groups were fighting for 4 percent for the teachers and were told 1 percent was all the state could afford. How can we now, without ANY new revenue, afford 20 percent? Reminds me of that old saying, “if it sounds too good to be true…”

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The Perfect Haboob

There are a lot of unique things about living in Arizona and our storms rank near the top. I know, I know, people who don’t live here are thinking what storms, thought it is always sunny and hot? Well, there is that, but we also have our crazy monsoon rains and wild walls of dust called “haboobs”, an Arabic word meaning “blown”.

According to Arizona’s ABC15.com, “Haboobs are giant walls of dust created from high winds rushing out of a collapsing thunderstorm. Cold air in front of the storm rushes down at an incredible rate, picking up massive amounts of dust and sand and blowing them into the air.” A 2011 haboob in Phoenix, was almost a mile tall and stretched across the entire valley, over 50 miles long. These storms can stretch as far as 100 miles wide and are dangerous not only to drive in, but to just be outside in, as rocks and debris thrown around by winds of up to 50 mph can be dangerous, and bad air quality causes many people difficult breathing.

What’s going on with public education right now in Arizona feels a lot like that. First of all, our Governor and Legislature have turned a cold shoulder to the crisis facing our teachers and the districts they serve. The assault on our public schools has been fast-paced and fueled by out-of-state monied interests like the Koch Brothers’ Americans for Prosperity and Betsy DeVos’ American Federation for Children, despite overwhelming support for our public schools from Arizonans. And, all of this serves to obscure the real truth, which is that the focus on tax cuts and the push to privatize, are draining our public schools of available resources, making it very difficult for them to “catch their breath” and make the strides our state needs.

So, the big question at the beginning of this Legislative session was whether SOS AZ’s voter initiative would make it on the ballot. A couple of court decisions later and it looks like yes, it will. Of course, the Legislature might still repeal and even try to replace, the law that fully expanded vouchers last year (although that effort seems overcome by other events for now). There is also the possibility that the Prop. 305 (the name of the initiative), might be left on the ballot so that a Koch Brothers’ backed effort can produce the first-ever win on vouchers at the ballot box. This of course, would set them up for a full-court, across the country, privatization sweep. Either way, our mighty warriors at SOS AZ have vowed they “will continue to fight for public education because in order to have a strong state, we need strong schools.” Amen!

The second major issue for AZ public education was the decision by a Federal judge, that the funding plan for Prop. 123 to increase aid to schools from additional withdrawals of state trust lands money, was unconstitutional. Remember that? Can you believe that was announced just a month ago?

Changes made at the Federal level may fix the problem going forward, but whether the state must repay at least $344 million into the state trust lands is yet to be decided. Arizona has pushed back on the Federal ruling, but this fight is a long way from over and may even require the issue to go back to the voters according to former State Treasurer Jeff Dewitt. When it first aired, this was big news, but just as a haboob can blot out the sun, it’s been totally eclipsed by subsequent events.

Meanwhile back at the ranch, Arizona education groups had been working for some time on a plan to get new funding for our schools. They looked at a variety of potential solutions, including sales and income tax increases, and the elimination of tax credits and loopholes. The effort was largely sidelined though (at least temporarily) when the wave of teacher strikes, from West Virginia, to Kentucky, to Oklahoma, finally hit the shores of Arizona.

With teacher salaries at the bottom of the barrel, a Governor and GOP-led Legislature prioritizing corporate welfare over adequately funding our schools, and a kick-ass #RedForEd movement in the news, it was only a matter of time before AZ educators said “no más”. They began to organize as Arizona Educators United, and made their demands, (including a 20% pay raise for teachers), known.

In a presumed attempt to head them off at the pass, Governor Ducey announced a 20% teacher pay raise and $100 million to [begin to] restore District Additional Assistance (capital funding). But his plan, writes the Phoenix New Times, includes no new state revenue, relying on overly optimistic revenue forecasts according to the Joint Legislative Budget Committee who says it could result in a $300 million budget shortfall. This, coupled with the other unaddressed demands, pushed 78% of 57,000 (out of 60,000) teachers to vote to walkout on April 26th.

Fast forward to yesterday, when AZ Representative Noel Campbell, Republican, LD 1, announced “he will introduce a budget amendment – whenever Republican legislative leaders introduce a budget – for a three-year, 1-cent education sales tax increase.” His plan would raise $880 million in new revenue and required the state restore full funding for kindergarten, but also requires approval by two-thirds of the Legislature and the Governor.

Although in favor raising new revenue, AZ Dem legislative leaders made it clear yesterday that they do not support it coming in the form of an increase in sales tax. In a letter to Governor Ducey they wrote, “We should consider broadening the sales tax base for certain services, reversing decades of unproductive, revenue draining tax cuts for the wealthiest Arizonans, closing tax loopholes, and at a minimum capping tax credits that divert state revenues away from neighborhood public schools and into private schools.” The letter went on to say that, “These and other options – including federal tax conformity – are available and would more fairly and equitably restore the cuts to education and bring our educator pay to parity with our neighboring states.”

Ultimately, no matter what happens between now and our Primary election on August 26th, and the General on November 6th, Arizona’s voters will have the final say. My most sincere hope is that they will use that say to elect candidates at all levels, who understand education is an investment, not an expense. Candidates who understand that quality companies care about more than a tax credit, they want quality schools for their employee’s children, they want an educated workforce and they want modern, well-maintained infrastructure. Candidates who understand that they work for the people, ALL the people, not just those who are from the same party or support them with campaign contributions.

Arizona teachers will take a brave stand tomorrow, one that does not come without cost to them personally. The best thing we can do to support them, is to work to bring more parity to our Legislature, forcing all sides to be heard and all good ideas to be considered. To do this, we need only flip two seats in the AZ Senate and 5 seats in the House.

Arizonans understand we aren’t getting the results we want from our Governor and Legislature. We have the power to make positive change. Let’s hope we wield it wisely and forcefully.

Not Fake News, Just Propaganda

Yesterday, a friend emailed me a copy of a Goldwater document that had been placed in all the “mail” boxes at his “Life Plan Community” (retirement/assisted living). The document was titled, “The Truth about Teacher Pay”, and dated April 12, 2018.

Even without the Goldwater logo at the top, I could have easily identified it as a right-wing propaganda piece. In it, the Goldwater Institute Director of Education Policy, Matthew Simon, began by making the point that “though fingers are pointed at state legislatures with calls for higher teacher salaries, the reality is that in many cases, locally elected school district governing boards are responsible for the size of paychecks.” He went on to write that, “independently elected governing boards wield considerable power in their positions by creating policies, crafting school district budgets and setting teacher pay.”

Simon provides a couple of examples of the significant difference in pay between various school districts to make his point. He then writes that, “teachers in Arizona have launched their demands at legislators in a well-coordinated campaign.” Of course, this “well-coordinated campaign”, is just a dog-whistle to infer the big bad “union” is driving the train. Truth is, the #RedForEd effort comes from a grassroots movement. There is no statewide collective bargaining unit in Arizona, because our state is a “Right to Work” state. Which means, employees really have no rights at work.

“If Arizona teachers and the public have a gripe with elected officials”, Simon continued, “the elected officials they should be targeting with this anger need to be their locally elected school district governing boards. When a school district governing board prioritizes teacher pay, teacher pay is higher.”

The problem with Simon’s piece isn’t that it isn’t factual, but rather, that he propagandizes the facts. As defined by Merriam-Webster, is “ideas, facts, or allegations spread deliberately to further one’s cause or to damage an opposing cause.” I believe, the “particular political cause” in this case, is to try to take the pressure off the state legislature for their failure to adequately fund public education, and instead, put it on the backs of governing board members. If I wanted to be really cynical, I could say it is just another attempt by the Goldwater Institute and monied out-of-state interests, to force the privatization of our public schools down Arizonans’ collective throats. You know, discredit governing board members and local control and tout that the only way to fix the resulting dysfunction is to turn our kids over to the profiteers.

Yes, it is true that the Arizona Constitution gives school board members the authority to set salaries for their district’s teachers. Arizona Revised Statute 15–341.A.17 states, “The governing board shall: Use school monies received from the state and county school apportionment exclusively for payment of salaries of teachers and other employees and contingent expenses of the district.” The phrase “contingent expenses of the district” however covers a wide range of other costs governing board members must ensure are not only budgeted for and appropriately allocated.

Therein, they say, lies the rub. You see, governing board members can only allocate that which the state Legislature, (which oh by the way, has responsiblity for the “establishment and maintenance of a general and uniform public school system”), provides. In fact, education, along with public safety, roads and infrastructure, is one of the three constitutionally-mandated functions the Legislature is responsible for. Thing is, over the past decade, that has been woefully inadequate. You’ve probably already heard that Arizona had the highest cuts per pupil in the nation, 2008 to 2014, that the average salary of our elementary teachers is 50th in the nation and high school teachers is 49th, and that our capital funding, (for facility maintenance and repair and other big-ticket items like buses), was cut 85% in the last decade. You’ve also probably heard that the Legislature continues to funnel public tax dollars to private and religious schools with almost zero accountability and transparency; passing the full expansion of vouchers for all school children last year.

You may not have heard, that in the past couple of years, two non-partisan, serious studies of education funding determined that there can be no meaningful fix to the way Arizona’s education funding is allocated, until additional funding is resourced. In 2016, the Governor Ducey appointed chair of the Governor’s Classrooms First Council said, “that, ”the schools aren’t going to significantly improve unless they get more money.“ In a previous post, I wrote about the statewide, non-partisan 2017 AZ Town Hall on PreK–12 Education Funding, which determined that the problem is not so much the percentage of the state budget allocated to our districts, but the size of the overall state budget ”pie”.

And yet, Arizona governing board members continue to lead to deliver with the resources they are provided. After Proposition 123 was passed, they ensured 90% of the additional funding was allocated to teachers. Between FY 2015 and FY 2018, they enabled their districts to hire almost 1,800 more full-time equivalent teachers, and raised teacher salaries across the state by an average of $2,044.

Governing board members know that the number one in-school factor for determining student success is a high-quality teacher and with our ongoing critical shortage of teachers, they are eager to incentivize good teachers to stay in their classrooms. But, teachers aren’t the only critical need. After all, when 30% of Arizona buses fail safety inspections, schools are closed for emergency repairs to fix unsafe facility conditions, and some classrooms are forced to use 12-year old computers, governing board members must make tough decisions about resource allocation.

Matthew Simon did not write his piece to inform, but rather, to deflect blame for the funding crisis we find ourselves in. A funding crisis which is largely self-manufactured. Yes, our Legislature also had to make tough calls during the recession in 2008, but “economists say the real culprit is the cumulative impact of two decades of Arizona governors and lawmakers chipping away at the bottom line.” In 2016, tax cuts over that period cost the state’s general fund $4 billion in revenue according to an analysis by economists with Arizona State University. These economists also wrote “More than 90% of the decline in revenue resulted from tax reductions.”

According to an AZ Capitol Times article from May 2017, data compiled by the Arizona Department of Revenue showed that more than 50% of all state taxes hadn’t been collected for at least the past ten years. ‘Called “tax expenditures,” they amount to $136.5 billion since fiscal year 2007, roughly equivalent to the sum of the state budgets spanning the past 15 years.’ In FY 2016 alone, over $12 billion was excluded from sales tax collection. Governor Ducey has continued the trend, vowing (and thus far keeping that promise) to cut taxes every year he is in office.

Governing board members share no more, and no less blame for this situation than does the average voter. After all, they are also voters and the reason our lawmakers have gotten away with pursuing the repeatedly failed “trickle-down” (Kansas anyone?) philosophy is that Arizona voters continue voting the same lawmakers into office. The bottom line is that until voters truly draw the nexus between the results they want and the candidates they elect, we can’t expect any different or better.

Focus People, Focus!

I was at a SOS AZ presentation on public education funding last night and after a slide about corporate tax credits, one young woman advocated for holding the corporations responsible for not supporting our schools. Although I would normally be one of the first to vilify corporate America for their greed at the expense of the rest of us, I think her ire was a little misplaced. Arizona corporations after all, are just taking advantage of the laws incentivizing them to act a certain way. These aren’t loopholes that corporations are paying high-powered lawyers and accountants to find for them, but incentives the Legislature has directly handed to them to. It isn’t after all, like the tax credits allow the corporations to pocket more profit, they are still paying out the same amount of money (whether in taxes or credits), they just get to choose where their taxes go.

THEREIN lies the rub. THEY get to choose where their tax dollars go…not us, the people. That’s the problem with all these tax credits and exemptions, 331 is the number I heard last night, that the Arizona Legislature has granted. You see, ideally, tax credits should be granted to incentivize behavior that voters want and that produces good for all of us. We’ve all heard the saying though, that “power corrupts and absolute power corrupts absolutely.” When all the power in a government is consolidated on one side, the tendency is not to look at the common good, but the good of “your” people. And, when it is apparent to lawmakers that they can act with impunity because they will continue to get reelected despite their failure to provide for all the people in their care, the tendency is for them to do whatever they want.

Yes, corporations also have a responsibility to care about the common good, but I really don’t blame them for taking advantage of legal incentives for directing their tax dollars where the Legislature wants. The rest of us suffer though, because these incentives reduce the size of our general fund “pie”. We also suffer because the diverted funding, essentially our tax dollars, then has no accountability nor transparency associated with it. We don’t know if it is being used for the purpose intended and we certainly don’t know the return on our investment.

This is a huge problem in Arizona with at least 75% of corporations paying the minimum $50 in state taxes. Again, it isn’t like they aren’t giving up the money, but it isn’t coming into the general fund in the form of tax dollars that we can then hold the Legislature accountable for. In fact, on a budget of less than $10 billion, Arizona gives away almost $13 billion in corporate sales tax relief alone. This is just one of the reasons the Arizona Town Hall on PreK–12 Funding last year, wrote that it is the “size of the pie” that is the problem, not the relative percentage given to our public schools. This was clearly illustrated by the SOS AZ briefing when a slide comparing state populations versus annual budget was shown. AZ has about 7 million people, with a budget under $10 billion versus Wyoming with 585,00 people and a budget of $8.8 billion and Maine with a population of 1.33 million people and a budget of $7.6 billion. To be sure, there is a lot to unpack here, but it is interesting none the less.

None of this is by accident, the AZ Legislature is just following the “drown it in the bathtub” playbook to reduce the size of government. No sense, (I’m guessing they think), in having government do something the private sector could do better and cheaper AND…make a profit on.

Only problem is, that often isn’t the case. Take the privatization of Arizona prisons for example. Arizona’s corrections annual budget is over $1 billion—at 11% of the General Fund, the third largest appropriation of any state agency. When the decision was made to privatize them in 2005, bids by the prison companies no doubt touted lower operating costs than the state. Since then though, spending on prisons has grown by at least 45%. Of course, we aren’t entirely sure of the exact amount because in 2012, the state Legislature repealed the statute requiring cost and quality comparison reviews between the state’s public and private prisons. Before that repeal, the Arizona Department of Correction found in a 2010 review, that medium-security state prison beds cost $48.16 while medium-security private prison beds cost $55.30. In fact, between 2008 and 2010, Arizona overpaid for its private prisons by about $10 million. Now, the lack of transparency and accountability for our tax dollars is most assuredly guaranteeing skyrocketing costs, lackluster results, and pay-for-play abuses between lawmakers and the private prison corporations.

The same thing is happening with our public schools. Tax credits and Empowerment Scholarship Accounts (ESAs), divert or withdraw funding from our General Fund and the public schools it resources, and give it to private entities with no responsibility for transparency and accountability. And, because there are huge out-of-state monied interests that are using Arizona as ground zero for war against public education, our lawmakers are being bought off (via campaign contributions or influence peddling) to do their bidding. Numerous charter school operator abuses that have recently come to light are, no doubt, just the tip of the iceberg.

The Washington Post tag line, “Democracy Dies in Darkness” says it all. If our democratic republic is to stay strong and vibrant, we must have transparency and accountability so that our government, at all levels, can remain one of the people, by the people, and for the people. The privatization of programs and services that provide for the common good (the military, public schools, prisons, police, fire, etc), is simply a way to take “the people” out of the equation…to ensure we no longer have a say in how we are governed. It is absolutely critical for these “common good” programs and services to be paid for by all of us so that we retain ownership, the authority and yes, the responsibility, to ensure they produce OUR desired return on investment. It is really this simple, to have a government that works for us, we must work for it.

What IS glaringly obvious…

After I became an Arizona school board member and public education advocate, I was routinely asked, “doesn’t the Legislature understand what they are doing to our public schools?” I would respond with, “of course they do, it is all part of their plan.” That was five years ago and although we are still fighting the same battles, some things have changed.

Today, many more people understand that the privatization of America’s system of public education is actually the end game. The public is more “woke” than ever to the privatizers’ pursuit of profit and power via the $500B+ K-12 education market in the United States. Of course, the privatizers don’t refer to it that way. Rather, as reported in the Washington Post, they couch their war on public education as a benign attempt to improve the system. As Stacy Hock, a major Koch donor and co-founder of Texans for Educational Opportunity, said, “The lowest hanging fruit for policy change in the United States today is K-12, I think this is the area that is most glaringly obvious.”

What is glaringly obvious to me is that this fight isn’t just about a “policy change” and it definitely isn’t about improvement for all students. It is also glaringly obvious, that Arizona’s Governor Doug Ducey is chief water carrier for the movement with Koch donors seeing the state “as ground zero in their push.” Ducey’s been a member of the Koch network since 2011, the same year the Empowerment Scholarship Account (ESA) program (or vouchers) was passed in Arizona. Pushed by the Goldwater Institute, it was the first of its kind in the country. The AZ Legislature has increased the scope of the program every year since, and in 2017, with significant Koch network investment, Ducey was able to sign into law, a full expansion of the program.

It is also obvious to anyone willing to face facts, that vouchers are not the panacea to anemic academic outcomes. On EducationNext.org, Robert Pondiscio writes, “If shares in the education reform movement could be purchased in the stock market, neutral analysts would grade them ‘underperform’ and probably ‘sell.’ We’ve seen gains in student outcomes particularly among disadvantaged subgroups. But those gains have been mostly in math and almost entirely in the younger grades. The ‘historic’ rate of high school graduation is frothy at best, fraudulent at worst. It is not possible to look at the big indicators of K–12 performance over the last few decades—NAEP, PISA, SAT, and ACT scores—and claim that ed reform at large has been a success. The payoff is simply not there.”

None of that matters to the privatizers though, because in the end, it isn’t the kids they are focused on. “Tom Jenney, the senior legislative advisor for the Arizona chapter of Americans for Prosperity, says “We believe in competition. That’s the most important thing. … Competition is the only reason why, frankly, anything in the world improves without monumental effort and luck.”

I find that viewpoint incredibly cynical. What about those who do a good job because of pride in a job well done? Also, competition pits individuals and groups against each other and, it produces winners and losers…is that what we want for our children?

The Washington Post article also claimed, “Teacher unions, worried that this will undermine the public system, collected enough signatures to put the law on hold and create a ballot proposition to let voters decide in November whether to expand vouchers.” That claim comes from either sloppy or totally biased and purposefully misleading reporting. First of all, as a “right to work” state, Arizona has no statewide collective bargaining unit for our teachers. Secondly, Save Our Schools Arizona, the grassroots organization who collected the signatures, is not a union, but rather, a dedicated group of mom’s who ignited an army of volunteers tired of out-of-state monied interests forcing on Arizonans legislation we don’t want. “SOS Arizona enlisted about 2,500 people to help with its referendum. They ended up paying about six people to collect signatures, but the rest of its base was a patchwork of volunteers.”

Those gathering at a recent Koch brothers’ meeting outside Palm Springs, CA, are definitely not grassroots volunteers, but rather, those monied interests referred to earlier. Governor Ducey was also there, touting Arizona’s 2017 voucher expansion as further reaching than anything that’s been tried in other states. Now though he warned, that achievement is under attack with Prop. 305 set to go to be on the ballot in November”, saying that under Arizona law, if advocates lose at the ballot box, they will not be able to legislate on the topic in the future. “This is a very real fight in my state,” Ducey said. “I didn’t run for governor to play small ball. I think this is an important idea.” Ducey also introduced the headmaster of Capital Prep Charter Schools, who has been traveling Arizona to speak in support of the law. “The teacher unions are unencumbered by the truth,” he told the Koch donors. “It is a distant relative that is never invited to dinner.”

Maybe it takes one “unencumbered by the truth” to try to manufacture the same in others. What seems apparent though, is that it is much easier for Ducey and his gang to blame “teachers’ unions for “working to deny parents school choice options” than it would be to acknowledge that a group of concerned mom’s are the ones fighting for our public schools to ensure ALL children have equitable opportunity. Seems to me that if vouchers and school choice were really the end all/be all, the privatizers wouldn’t have to work so hard to convince us of that. Problem is, they are working really hard and they are throwing an awful lot of money into their effort.

Which brings me to my constant mantra of late. I received several concerned emails and phone calls from people who had read the Washington Post article and wondered what they could do to combat the incoming Koch network onslaught. My answer is simple. If we want to save our system of public education, that system which helped build the strongest middle class in the world, we simply must elect more lawmakers who care about that system and the children it serves. And, we must start right here in Arizona. If you care about our public district schools and the one million children in them, you must learn which candidates share your concern and will fight for the full accountability, transparency, and locally elected governance that district school boards provide. And remember, that although “they” have the money, we have the many. We can fight back, but we must do it together, and we must do it now.

 

One Big Ass Shell Game

Governor Doug Ducey has pledged to reduce taxes every year he is in office and likes to tout he is doing just that. The GOP-led Legislature also seems to be totally on-board with doing less with less unless that is, they are handing out corporate welfare. At least that is, while they still need corporate donations to help fund their reelection campaigns.

Evidently though, once out of office, GOP “leaders” can see the error of their ways as with former Governor Jan Brewer who just told Capitol Media Services that, in hindsight, the tax cuts she approved were “a little bit too aggressive.” She went on to say that the result has been a reduction in revenues for necessary state services and that “sooner or later, you have to pay the fiddler.” Just like GOP leadership today though (who claim school boards, not they, are responsible for teacher salaries), she passes the buck by saying her approval of the cuts was a political compromise because “the boys at the Legislature…wanted more.”

The tax cuts Brewer and “her boys” put in place a decade ago will in the FY2018 budget year alone for example, reduce state revenues by another $107.2 million. Since 2015, the 30% reduction in the corporate tax rate has amounted to $400 million. Unfortunately though, economist Dennis Hoffman of the W.P. Carey School of Business at ASU says, “There is no discernible evidence that corporate economic activity accelerated in response to the cuts.” He went on to say that “net corporate collections this fiscal year will likely be less than 60 percent of the net flows observed in fiscal year 2012 or 2013 despite the moderate growth we have seen in the overall Arizona economy since then.” Or, as Howard Fischer, of Capitol Media Services writes, “if the cuts were supposed to convince more corporations to move to Arizona and start to pay taxes, that hasn’t been the experience.” Need I mention how Sam Brownback’s Kansas experiment with “trickle down has worked out?”

The tax cuts aren’t though, the only form of corporate welfare GOP lawmakers are really good at handing out. In fiscal year 2016, state law allowed $13.7 billion in taxes to go uncollected via a long list of exemptions, deductions, allowances, exclusions or credits. That number, the AZ Capitol Times reports, is likely to grow by another $1-to–2 billion once individual income tax deductions are added to it. The Arizona Department of Revenue estimates that more than half of all state taxes haven’t been collected for at least a decade. These “tax expenditures,” amount to $136.5 billion since fiscal year 2007, about the same as the sum of state budgets over the past 15 years. Most of these tax expenditures (exemptions) come from a variety of “carve-outs” to the transaction privilege tax, Arizona’s version of a sales tax. In fiscal year 2016 alone, almost $12.3 billion was excluded, about half of it due to services being exempted.

Of course, any attempt to reign in these tax exemptions has been met with resistance from GOP legislators and in fact, an amendment to the AZ Constitution passed by voters in 1992 requires any changes to the tax code that would increase revenue, to be approved by a two-thirds supermajority in each legislative chamber instead of a simple majority. This is a tall order, but even so, Senator Steve Farley (D) and Senator David Farnsworth (R) introduced SB 1144 this year to require a review of tax expenditure to TPT every ten years. Representative Vince Leach (R) was one of the many opposed to the bill, making it clear he didn’t like the word “expenditure” in the name of the review committee (Joint Legislative Tax Expenditure Review Committee) the bill called for. Leach said the name would give the impression that the Legislature is appropriating funding with the exemptions rather than just not collecting it. I would call that a serious splitting of hairs. The bottom line is whether you call them tax exemptions or tax expenditures, the affect is the same…they are making our state poorer and ultimately, due to cut services and programs, meaner.

But wait, there’s more. Not content with all the giveaways they already have in the pipeline, GOP legislators agreed this year, to cut another $10 million from state revenues by allowing Arizonans an additional $100 exemption of their income from state taxes. This is definitely more show than go though, since even the wealthiest Arizonans – those making more than $150,000 a year – will see a difference of just $4.54 when they file their taxes;those making less will see even less.

Of course, there’s nothing like political spin to put a different face on facts. Of the $100 increase in personal exemption, gubernatorial press aide Daniel Scarpinato said, “Any time you’re improving the tax code and letting people keep more of the money they earn, you’re going to see an impact. This is money that people will be keeping of their own and putting into the economy rather than just going into government.” Really? A max of $4.54 per taxpayer will get our economy moving? Why didn’t we think of this before?

The state needs to find the balance of “providing enough revenue to pay for all the other stuff that businesses and the public want to make a nice environment to live in” says economist Jim Rounds. And, although it doesn’t take an economist to figure that out, some voters still may not realize that many of the tax cuts the AZ GOP has handed out aren’t cuts at all for the citizens of Arizona. Rather, they are part of a complex shell game that lets the Governor and legislators look like they are cutting taxes while just shirking their responsibilities to fund our schools, repair our highways, and care for the neediest amongst us. Instead, they increasingly pass the costs down to the taxpayers at the local level in the form of increased sales taxes, overrides and bonds for school districts, and local taxes to repair our roads. In the case of monies for road repair specifically, the revenue for the repairs has been raised year after year, but then also each year, swept up by the Legislature to use elsewhere.

Yes, the funding of our state is one big ass shell game which we are currently losing. Want to start winning? Elect legislators by their commitment to giving Arizonans what they deserve: well funded public schools with adequately compensated teachers, well maintained highways and roads without potholes, a Child Protective Services agency that actually protects children, and much more. Face it, we are effectively in a war between care for the people and their common good and care for corporations and the wealthy. Your vote is your most effective weapon in that war; use it wisely.

Chair of AZ Senate Ed Cmte Needs Education

AZ Senator Sylvia Allen, Senate Education Committee Chair, recently asked, “When is it [funding for education] ever enough?” That depends on what kind of educational opportunities we want to offer our students. Additional funding alone can’t assure high quality schools, but it can provide a broader curriculum, more experienced teachers, smaller class sizes, better maintained facilities more conducive to learning, and much more.

It might be better to ask how much IS NOT enough. I believe there is not enough when: our educational performance is ranked 44th in the nation, our per pupil funding 48th, and our teacher salaries 50th; 2,000 of our classrooms are without a teacher and another 2,000-plus are filled by uncertified personnel; and our districts received only two percent of the facility repair and maintenance funding they needed from 2008 to 2012, creating a backlog impossible to clean up under current funding constraints.

Senator Allen refers to the Proposition 204 vote as proof Arizonans aren’t willing to pay higher taxes to support education. Well, that was five years ago, and polling data from December 2016 shows 77 percent of Arizonans believe the state should spend more on education and 61 percent (about the same percentage that defeated 204) support paying higher taxes to do just that. Yes, Proposition 123 was “creative”, but it didn’t provide enough to move us up even one place in per pupil funding and as the AZ Daily Sun points out, those in charge at the Capitol are “running out of non-tax gimmicks to tap.”

She also asks if people are willing to move funding from another area — should we let our roads deteriorate or sex offenders out of prison or reverse the millions spent on child safety? Bad examples in my mind since the AZ Legislature has consistently raided the HURF monies to fund the Department of Public Safety essentially causing residents to be taxed again when car repairs are forced by deteriorating roads, and private prisons cost us $4.60 per day per prisoner more than the public ones they replaced $4.60 per day per prisoner in 2010. Yes, this figure is dated, but a more current one is not available because the Legislature mandated the collection of that data be halted.

I’m guessing Senator Allen has her own ideas about how to better support the 80 percent of Arizona students in our district schools. Since she specifically asked for recommendations from readers, though, I will offer mine:
1. Curtail the tax cuts and credits for corporations;
2. Stop attempts to allow even more siphoning off of our district funds to private and religious schools via voucher (Empowerment Scholarship Accounts) expansions;
3. Close corporate loopholes in the tax code;
4. Renew Proposition 301 (which expires in 2020) and increase it to a full penny (currently at one-half cent). Sixty-five percent of the respondents to the December poll supported this idea which will bring in an estimated $400 million more per year; and
5. Convene stakeholder meetings to discuss recommendations from the Governor’s Classrooms First Council (which state additional funding was needed) and long-term funding solutions that include new revenue sources and an update of Proposition 301.

Senator Allen concludes by saying, “I understand as legislators we’re an easy target…”, As an Arizona taxpaying citizen, I would remind her that she and her colleagues get paid to ensure the state’s business is taken care of, including the constitutional mandate to provide for, maintain and enrich our public schools. President Teddy Roosevelt said, “Complaining about a problem without proposing a solution is called whining.” I’ve offered five realistic solutions to get our district schools the resources they need. How about you Senator Allen?