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This Session’s Schemes Will Make It Harder For Lawmakers To Hold The Line On Taxes Next Year

Arizona Capitol Reports Staff//June 27, 2003//[read_meter]

This Session’s Schemes Will Make It Harder For Lawmakers To Hold The Line On Taxes Next Year

Arizona Capitol Reports Staff//June 27, 2003//[read_meter]

Some characterize the 2003 regular session of the Arizona Legislature as a junior high school dance with the executive and legislative branches casting uneasy looks across the gymnasium at each other, unsure what to do next.

Others liken the session to two prizefighters warily circling each other in the ring, landing only glancing blows, sizing up their opponent.

We faced an unbalanced 2003 budget and a billion-dollar deficit for 2004. A Democratic governor confronted a Republican Legislature. Both legislative chambers sported completely new leadership rosters with the House welcoming 33 freshmen to fill out its 60 seats.

Longtime railbirds squawked about how this new cast would never get its act together.

But as certain as day follows night, lawmakers worked long (158 days) and hard (17 bills vetoed plus 35 line-item vetoes) to get business done with (a little) time to spare.

The Legislature did not pass nor did the governor sign a job-killing, recovery-squelching tax increase this year. Though the compromise budget may actually be in balance on paper, too many one-time fund sweeps, rollover tricks and good old-fashioned debt financing schemes ensure that it will be very difficult to hold the line on taxes next year.

Through our newly formed State Budget Committee, the Arizona Chamber is working closely with legislative leaders to reform the state’s appropriations and budgeting processes and with the Citizens’ Finance Review Commission to improve our tax code.

Like this year, next year’s goal is a balanced budget with no new taxes.

Critical to making that goal a reality is an emerging star, Rep. Steve Huffman, R-Dist. 26, chair of the House Ways and Means Committee. In his first year leading the committee, he has focused the Legislature’s attention on tax fairness (school desegregation property tax reform) and building Arizona’s 21st century economy through high-wage, capital-intensive industry (corporate income tax sale factor).

Another star this year was Sen. Carolyn Allen, R-Dist. 8. She was the driving force behind one of the few non-budget issues that reached escape velocity from the gravitational pull of the budget.

Sadly, due to labor union negligence or malevolence, the bill was vetoed, denying tens of thousands of Arizona workers a 17 per cent increase in jobless benefits.

The sound pro-business leadership displayed by Sen. Allen and Rep. Huffman earned them the Arizona Chamber’s highest legislative honor this year. [House and Senate members of the year were awarded this honor at the group’s annual lunch on June 26.]

Moreover, Senate President Ken Bennett, R-Dist. 1, House Speaker Jake Flake, R-Dist. 5, Sen. Barbara Leff, R-Dist. 11, Sen. Dean Martin, R-Dist. 6 and Rep. Phil Hanson, R-Dist. 9, all deserve recognition for their steadfast defense of job creation and a vital economy.

We urge lawmakers to rededicate themselves to finishing the good work begun this year on a host of issues.

The State Compensation Fund’s status must be settled protecting policyholders and ensuring quality coverage for injured workers.

How do we get control of growing health care costs, the No. 2 expense behind salaries for employers≠

And how do we avoid shortsighted tax increases that would anchor the Arizona economy in recession≠

Next year’s budget and legislative agenda are clearly visible. The Arizona Chamber will continue to work with all willing partners to find solutions to these and other critical issues facing our great state.

Robert Shuler is senior vice president of public affairs for the Arizona Chamber of Commerce. The chamber bills itself as the voice of Arizona business. It has 250,000 members. Its Web site is www.azchamber. com

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