Civil Arizona June 2010 Debate:
The Level of State Spending
This policy discussion issues really asks one simple question: "What level of services does Arizona want and need?"
Civil Arizona State Spending Debate Information
Policy Proposal #1A:
Reduce Spending by $2.6 Billion
Additional Spending Reductions:
On March 5, 2010, the Arizona legislature passed and the Governor signed legislation to reduce state spending by an additional $1.1 billion. This cut is in addition to the $1.5 billion already cut from the state’s $10.6 billion annual budget.
Summary of budget cuts approved in HB2001:
$385 Million Spending Reduction:
Roll back of Arizona public health system (AHCCCS) to the eligibility requirements prior to the year 2000 when the voters increased coverage to federal poverty levels.
$385 Million Spending Reduction:
Reduce kindergarten through twelfth grade public education ($218 million is from eliminating all day kindergarten).
$124 Million Elimination of Voter Mandated Spending:
Seek November voter approval to "raid" the Growing Smarter Fund.
$325 Million Elimination of Voter Mandated Spending:
Seek November voter approval to raid the First Things First childhood education fund.
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to Reduce Spending by $2.6 Billion
Policy Proposal #1B:
Reduce Spending by $1.3 Billion
Combine Spending Reductions with New Tax Sources:
This proposal, named the “Third Party Plan”, was developed in January outside of the capitol and balanced spending reductions with generating new revenues. This proposal is modeled after the FAIR proposal developed by the three Universities in 2009.
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to Balance Cuts with New Taxes
Close Tax Loopholes & Strengthen Collections:
This proposal finds alternative sources of revenues to fund the $1.1 billion of spending cuts enacted in HB2001. These revenues will come from investments in tax auditors, new charges of sales tax for services, elimination of the school tax credit and increased sales tax on liquor.
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Close Loopholes & Strengthen Collections
Income Tax Increase:
Raise new revenues, between $141 and $170 million, from a 1% personal income tax increase for individuals who make over $150,000 and couples who earn over $300,000. This revenue will be used to fund KidsCare, graduate medical education programs and help restore AHCCCS coverage for those below federal poverty level.
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to Increase Income Taxes