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Veto stamp: Brewer comes to endangered wolves’ rescue

Mexican Gray Wolf (Jim Clark/U.S. Fish and Wildlife Service)
Mexican Gray Wolf (Jim Clark/U.S. Fish and Wildlife Service)

Gov. Jan Brewer vetoed a pair of bills allowing ranchers and state officials to kill endangered Mexican gray wolves if the wolf is caught in the act of killing livestock or threatening humans.

The bills, SB1211 and HB2699, were part of a push this legislative session taking on the wolves, which were reintroduced into Arizona in 1998 after being eradicated in the mid-1900s. The legislation comes as the U.S. Fish and Wildlife Services is proposing changes to the rules governing how the wolves are protected under the Endangered Species Act and considering an expansion of the Mexican Gray Wolf Recovery Program.

In her veto letter, Brewer wrote that SB1211 “is unnecessary and conflicts with federal law.”

“The bill would have directed the Arizona Department of Agriculture to engage in an issue that is being properly managed by the Arizona Game and Fish Department,” she wrote. “The legislation also attempted to manage the Mexican wolf like other ‘protected’ predators such as mountain lions and bears. A state simply does not have the power to allow a take on federal lands.”

SB1211, which was sponsored by Republican Sen. Gail Griffin of Hereford, would have given ranchers broader authority to kill wolves that attack livestock and authorized the killing of endangered wolves if they were actively engaged in killing or biting livestock. It would have also allowed Arizona Game and Fish officials to kill wolves that have been documented killing, or engaged in an attempt to kill, livestock.

Griffin said she sponsored the bill because the 83 wolves that have been reintroduced into the wild in Arizona and New Mexico are terrifying residents and putting their lives in danger.

“Their prey base in Cochise County, if they expand (the wolf recovery program), are cattle, a few white tail (deer), pets and our children,” she said.

But Sandy Bahr, lobbyist for the Sierra Club Grand Canyon Chapter, called the measures part of the Legislature’s longstanding “war on wolves” and said Griffin’s claims simply aren’t true.

“It would be almost laughable if it weren’t for the fact that she is serious,” Bahr said, noting that the Mexican gray wolves that have been reintroduced by the U.S. Fish and Wildlife Service in Arizona and New Mexico have never attacked anyone.

HB2699, by Republican Rep. Bob Thorpe of Flagstaff, would have also allowed ranchers to kill wolves, but only in the defense of their own lives or the lives of other humans.

The bill also threaten to pull the state out of the Mexican Gray Wolf Recovery Program and remove all Mexican Gray Wolves from state and private land, if the federal government doesn’t enter into an agreement to compensate the state and private landowners for the use and devaluation of their lands as a result of the program.

SB1212 would have appropriated $250,000 from the state general fund for legal fees associated with an expected fight over the challenge against any expansion of the U.S. Fish and Wildlife Service’s Mexican Wolf Recovery Program. But that bill was never heard in the House Appropriations Committee.

And Griffin’s SCR1006, which was approved by both chambers and does not require the governor’s signature, sent a letter to the Congress stating that the Legislature doesn’t support any expansion of the program in Arizona “unless and until it has been determined that wolves cannot be introduced successfully in northern Mexico” among other points.

Brewer vetoes bill to allow concealed weapons in public buildings

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Arizonans will not be allowed bring their guns into public buildings, at least not this year.

Gov. Jan Brewer this afternoon vetoed HB 2339 which would have allowed those who have a state-issued permit to carry a concealed weapon to ignore a “no guns” sign posted at the door. The only way a government agency could keep out all weapons would have been to install metal detectors and place armed guards at each public entrance.

In her veto letter, Brewer noted that she vetoed similar measures in 2011 and 2012 and said the majority of her concerns were not addressed in HB2339.

“I am a strong proponent of the Second Amendment and I have signed into law numerous pieces of legislation to advance and protect gun rights. However, I cannot support this measure in its proposed form,” she wrote. “I also am concerned about the fiscal impact of this legislation. This bill would establish an unfunded mandate on our state and local governments. It is an unnecessary diversion of limited resources.”

Separately, Brewer vetoed legislation to add more teeth to existing laws that pre-empt the right of cities to enact their own gun laws.

HB 2517 would have required a court to assess a fine of up to $5,000 against any elected or appointed government official, or the head of any administrative agency, if there is a knowing and willful enactment of a local gun law that exceeds the restrictions permitted by the state.

That same measure also would have precluded the use of public funds to defend or reimburse someone found guilty of breaking the law for his or her legal costs. And it would have permitted individuals and gun-rights groups to sue local officials and, if they are successful, get reimbursed for actual damages of up to $100,000.

But the measure with the larger impact would have been HB 2339.

Current law says anyone carrying a weapon has to surrender it at the door of a public building if there are lockers immediately available. But only some buildings have armed guards and metal detectors to ensure compliance.

Proponents of the legislation said the result is that those who obey the signs are defenseless if someone else enters the building and starts shooting.

Brewer has proclaimed herself a strong supporter of the Second Amendment right to bear arms. But the governor has previously vetoed other measures she said would endanger public safety.

House budget stalemate continues

AHouse Republicans failed for a second day Tuesday to reach accord on a new budget, even as state senators continued to find new ways to spend money.

Dissident Republicans met off and on all day behind closed doors in their bid to have the nearly $9.2 billion spending plan approved last week by the Senate expanded to deal with their own priorities. At least part of that includes additional spending for the new Division of Child Welfare, created by Gov. Jan Brewer to replace the troubled Child Protective Services.

Other issues also remain, including whether the state will eliminate the ability of school districts to create their own charter schools. That provision was inserted into the Senate version of the budget but is opposed by many House members.

But Rep. Kate Brophy McGee, R-Phoenix, one of the holdouts, said late Tuesday she remains optimistic that a deal will be hammered out.

“We’re meeting, we’re talking, we’re continuing to converse,” she said. More to the point, Brophy McGee said that’s more than was happening earlier this week when the GOP leadership tried to run the budget plan through the Republican-controlled House without bothering to consult all members.

And Brophy McGee said she believes the House leaders are negotiating in good faith.

Talks are set to continue today.

The stalemate in the House did not keep members of the Senate Appropriations Committee from approving several measures Tuesday that actually would add to the spending plan.

Potentially the most costly would end the practice of funding much of the operating costs of the state Department of Public Safety not from general tax dollars but instead from the Highway User Revenue Fund, made up largely of gasoline taxes and vehicle registration fees. That practice has drawn fire especially from cities and counties who share in those revenues.

Ken Strobeck, executive director of the League of Arizona Cities and Towns, said that has left Arizona communities short of the money they would otherwise use for road construction and repairs. And he suggested that taking funds from local governments might even violate state constitutional provisions which limit how gas taxes and vehicle registration fees can be used.

HB2692 would undo that — to the tune of adding nearly $120 million to what has to be paid for to run DPS out of the state budget.

On a separate matter, the same committee approved extra funds to give raises to DPS officers.

HB2691 would provide $8.1 million immediately this coming year for pay hikes above what the state already is spending. That amount would increase to $13.1 million the following year and $18.8 million the year after that.

Kelsey Lundy, a lobbyist hired by the Associated Highway Patrolmen of Arizona, said officers are now paid about 23 percent less than what they would make at other Arizona police agencies. She said the money is needed to ensure the state can fill both existing vacancies and replace the more than 100 senior officers who are expected to retire by the end of 2016.

Sen. Chester Crandell, R-Heber, agreed to go along. But Crandell, noting the current budget stalemate, said it remains to be seen whether the funding will become part of the final package.

Lack of GOP support for Senate budget derails House vote

money dollar bill eagleHouse Republican leaders late Monday gave up trying to corral the votes for a new budget, at least for now.

House Speaker Andy Tobin stopped debate in the middle of a bill when it became clear he lacked the necessary votes for the spending plan. He then went behind closed doors with some of the more fiscally moderate members of the GOP caucus in a bid to see what they needed to add their support.

The problem is that some of Republicans said the nearly $9.2 billion spending plan approved March 20 by the state Senate falls short of what they say is needed to meet the state’s priorities. It also is about $175 million less than Gov. Jan Brewer requested, with much of that difference in funding for the new Division of Child Safety.

Tobin needs 31 votes in the 60-member chamber for any budget. And with Democrats firmly opposed, he cannot afford to lose more than five votes among the 36 Republicans in the House.

And even if Tobin can line up the GOP votes today for some sort of spending package, it remains to be seen whether even that can get the governor’s blessing.

That funding for the child welfare agency, designed to replace Child Protective Services, remains a major sticking point.

Brewer demanded about $74 million for the agency.

That includes $21.5 million for new caseworkers and support staff to deal with the fact the agency has a backlog of 10,000 child abuse cases that have been listed as inactive because they have not been addressed in at least two months. By contrast, the Senate-approved budget proposes spending just $15.3 million.

There’s also less money than Brewer sought for everything from one-time costs of setting up a new agency to a new computer system to track cases.

Rep. Kate Brophy McGee, R-Phoenix, said those numbers also are unacceptable to her.

She chaired a special task force formed last year in the wake of the discovery that about 6,500 abuse complaints had never been investigated despite state laws to the contrary. So Brophy McGee prepared amendments to the budget to restore not only Brewer’s original $21.5 million request, but also to add $6.8 million to boost funding for the separate Office of Child Welfare Investigations.

Another fight is whether the state should retroactively eliminate the ability of public schools to set up their own charter schools.

Some districts made that move because state provides more per-student aid for charter schools.

The Senate wants to eliminate that option — even for schools already in existence — because of the price tag for that of more than $30 million a year. But there is resistance in the House.

There are other spending priorities for House members, things not included in the Senate plan.

For example, Rep. Heather Carter, R-Cave Creek, wants the state’s Medicaid program to provide coverage for emergency dental care. She said the alternative is people being treated in hospital emergency rooms at a far higher cost.

Other Republicans have different issues they want discussed.

For example, Rep. Ethan Orr, R-Tucson, wants $4.2 million to establish a veterinary school at the University of Arizona. And Rep. Jeff Dial, R-Chandler, wants a mandate for police and sheriff’s departments to put a law enforcement officer in every public school.

“I think we need to get crime out of our schools,” Dial said, including drugs and gangs. “I think just having a police officer walk around helps with bullying, helps with everything.”

The House is scheduled to resume work at 9 a.m. Tuesday, though it is unclear when a vote on the budget will take place.

House preparing to move own budget as Tobin expresses concern about Senate plan

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The House is taking its first steps toward introducing its own budget proposal as a counter to the proposal the Senate introduced late Monday.

The House Rules Committee is scheduled to host a special meeting Wednesday to allow for a late introduction of the House budget package, which even Republican members of the House Appropriations Committee have not yet seen.

The House budget is expected to include more new spending than the ly $9.13 billion Senate budget proposal, but less than Gov. Jan Brewer’s requested $9.4 billion budget.

House Speaker Andy Tobin said he has problems with the Senate budget package, which was heard in the Senate Appropriations Committee Tuesday after the chamber voted to suspend the rules to bring it forward more quickly.

Tobin on Monday said he had seen “bits and pieces” of the Senate budget, but nothing completed, and was not included in the drafting of the Senate proposal. Likewise, the House appears to be acting unilaterally with its budget proposal.

Still, Tobin worried that it didn’t include enough funding for rural communities like his that have gotten the short end of the stick since the recession hit.

“We have a lot of member priorities as it relates to rural communities, and speaking as a rural lawmaker, there’s a lot of rural pieces missing,” he said, rattling off a list of areas where rural House Republicans have asked for increased spending, including Highway User Revenue Fund, water, public lands, public safety, the University of Arizona, Joint Technological Education Districts and the State Lakes Improvement Fund.

“These things have been requested by the rural members for years, and because of the crisis we’ve been in, they were the ones who always seemed to acquiesce and said, ‘Well, this is for the good of the state.’ Now, they seem more entrenched and concerned about that,” he said.

9th Circuit questions Brewer’s denial of driver’s licenses for ‘dreamers’

Driver license formA federal appeals court may be poised to void a decision by Gov. Jan Brewer to deny driver’s licenses to “Dreamers” the Obama administration has allowed to stay and work in this country.

During a 45-minute hearing before the 9th U.S. Circuit Court of Appeals in California on Dec. 9, Judge Marsha Berzon repeatedly chided Tim Berg, the governor’s lawyer, for his contention that those denied licenses are not being irreparably harmed. She said the testimony of the five plaintiffs in the case shows that their lives have been affected.

Berg told the three-judge panel that the plaintiffs said they do manage to get to work and school. And he said there is evidence that some are actually driving.

Berzon said that argument makes no sense.

“For many reasons it seems strange for the state to be standing up here and saying, well, this is all not a problem for people to work because they can just drive illegally,” she said. “There are problems for everybody else in your state if you have people driving around illegally. And you’re just saying they can just break the law.”

The issue is crucial because Victor Viramontes, the attorney for the Mexican American Legal Defense and Educational Fund, has to show that his clients are suffering “irreparable harm” if he is to convince the appellate judges to enjoin Brewer from denying licenses to the Dreamers, at least while the issue is litigated in federal court in Phoenix.

Berg acknowledged that there was testimony from one person who said there are jobs she would have applied for but cannot because of the lack of a legal driver’s license. But he said the record shows she had another job.

“So what?” Berzon shot back. “Because she’s not starving, she doesn’t have irreparable harm?”

Berg pointed out that U.S. District Judge David Campbell, in refusing to grant an injunction, said he found no irreparable harm, including from driving without a license. That provoked an angry response from Judge Harry Pregerson.

“They’re living in fear all the time,” he told Berg. “Don’t you understand that? That’s what it’s all about.”

The 2012 order

Hanging in the balance is the enforceability of Brewer’s 2012 executive order declaring that those in the federal program, known as Deferred Action for Childhood Arrivals, are not entitled to licenses.

The program allows those who meet certain qualifications to stay in the U.S. for two years — permission that is renewable — and be issued documents allowing them to work. The most recent figures from U.S. Citizenship and Immigration Services show that more than 20,000 Arizonans have applied and nearly 17,000 already have been accepted into the program.

But the state Department of Transportation, on order from Brewer, is refusing to issue licenses to anyone in the DACA program.

Brewer is citing a 1996 state law that says licenses are available solely to those whose presence in this country is “authorized by federal law.” The governor takes the position that an administrative decision by the president and the Department of Homeland Security not to deport the Dreamers does not make their presence “authorized,” even if they are given work papers.

That issue goes to the question of whether the Arizona law — or at least Brewer’s interpretation of it — is preempted by federal law.

Viramontes argued that the law — or at least Brewer’s interpretation of it — interferes with the prerogative of the president to decide how to enforce immigration laws.

But Berzon pointed out that the Department of Homeland Security has never claimed those who are granted DACA status are entitled to state-issued driver’s licenses. She questioned whether that allows Arizona to decide whether those in the program meet the state’s legal requirements.

Viramontes countered that the Arizona statute on which Brewer is relying specifically refers to authorization under federal law. He told the three-judge panel that limits Arizona’s ability to draw its own conclusions.

Irreparable harm

Berg had his own take on DACA recipients.

“They are here illegally,” he said.

Berg said the only thing DACA status means is that the Department of Homeland Security is not going to attempt to have them deported. And he said Arizona can regulate who operates a motor vehicle in the state.

“Driving is a privilege,” Berg said. “The state has chosen to categorize the people to whom it extends that privilege.”

But Berg conceded under questioning from Berzon there are limits on the state’s right to decide who can drive. He said it is unlikely Arizona could deny licenses to “resident aliens,” those who are not citizens but who the federal government has said are here legally.

Federal preemption aside, that still leaves the question of the harm to DACA recipients from not being able to legally drive. Berg said they do get around, whether driving illegally, being driven by others or using public transportation.

“If somebody took your driver’s license away and told you to take the bus, you don’t think you’d be irreparably harmed?” Berzon asked him.

“I think I would be horribly inconvenienced, your honor,” he responded. “But I don’t think I would be irreparably harmed.”

Berzon seemed unconvinced.

“You’re harmed, and it’s irreparable,” she said.

Judge Morgan Christen did get Berg to admit that Arizona could not legally say that DACA recipients, given federal permission to work, could not hold a job in Arizona.

“When you’re saying somebody can’t drive, you’re essentially saying they can’t work,” Christen said, given the urban sprawl and limited mass transit in Arizona. “And many people can’t get jobs without a license.”

Berg reiterated his point that people are driving without a license, saying there’s no evidence anyone is being denied the legal ability to work.

“I don’t think this court should presume it’s true just because it seems intuitive to you,” he told the judges.

“We shouldn’t assume it’s true because it is true,” Pregerson shot back.

“With all due respect, your honor, we disagree about that,” Berg said.

“That’s all right,” Pregerson responded. “I don’t need your respect.”

 

Arizona official: 5 CPS staffers placed on leave

(AP Photo/Ross D. Franklin)
(AP Photo/Ross D. Franklin)

A state official says five senior staffers in the state’s troubled child welfare agency have been placed on leave.

Juvenile Corrections Director Charles Flannery says Department of Economic Security Director Clarence Carter decided to place the five Child Protective Services staffers on leave. They haven’t been publicly identified.

The Arizona RepublicAi??reports that personnel moves are the first since Carter announced nearly two weeks ago that more than 6,000 child abuse and neglect reports received by CPS were closed without investigations.

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Brewer eyes electricity tax break for manufacturers

ElectricityThe next frontier in Arizona’s efforts to woo manufacturers may be an exemption on the sales taxes they pay on electricity usage.

Gov. Jan Brewer is working on a proposal to eliminate the sales taxes that manufacturers pay on their electricity, according to gubernatorial aide Michael Hunter. Arizona is one of only 13 states that charges its full sales tax rate on energy usage, he said.

The 37 other states, including many that Arizona competes with in trying to lure new businesses, either don’t tax energy usage at all or have exemptions or lower rates for manufacturers, Hunter said.

“There are certain tax problems in our tax code that just jump off of a spreadsheet,” Hunter said. “It’s just one of those not very interesting, not very exciting areas of the tax code where we’re not competitive. And our system is providing a level of sticker shock that we could probably manage better by providing an exemption.”

The plan provides an early glimpse at what may be in Brewer’s 2014 agenda. Hunter said Brewer has pursued some kind of tax agenda every year, and this is a potential feature of that agenda for the upcoming session, expected to be her last as governor.

Hunter, Brewer’s director of policy and the administration’s resident tax policy expert, said the governor isn’t considering a wholesale elimination of the state’s transaction privilege tax on utilities. The state can have a larger conversation in the future about whether Arizona should tax energy usage at all, he said.

For now, the governor wants to focus on manufacturers, who generally use large amounts of electricity, Hunter said The state collects nearly $500 million on utility sales taxes annually, Hunter said. A spokesman for the Arizona Department of Revenue said the agency doesn’t yet have any details on how much of that money comes from manufacturers.

“A principle for the governor has always been that tax reductions have to be affordable,” he said.

Hunter said there are still a lot of details to be worked out, including which of several statutory definitions of “manufacturer” the potential plan will use. One possibility is that the governor could use the definition in the North American Industry Classification System, a classification system used by businesses and governments in Canada, Mexico and the United States.

Hunter said the Governor’s Office is meeting with tax experts and manufacturers to determine exactly what shape the plan may take.

Rep. Debbie Lesko, R-Glendale, announced Brewer’s plans at a Nov. 15 conference of the Arizona Tax Research Association. Lesko said she supports the overall concept and is waiting to see more details in January.

“I think it’s always a good idea when we try to attract more businesses into the state of Arizona,” Lesko. “And manufacturing business — typically, they’re pretty good paying jobs. And then there’s secondary local business from when manufacturers move here.”

Arizona has ramped up its efforts in the past few years to attract manufacturers to the state, and manufacturing is a top priority for the Arizona Commerce Authority. According to ACA data, there are 4,500 manufacturers in Arizona.

Arizona has created a plethora of new tax credits and incentives over the past few years, most of which require companies to meet certain benchmarks to qualify, such as the number of jobs created, the amount of capital invested and the median wage of the jobs created. But Hunter said Brewer wants the electricity exemption to be as across-the-board as possible.

Arizona Tax Research Association President Kevin McCarthy said he hopes Brewer takes an across-the-board approach as well.

“It’s no secret that this is something that has surfaced in the last couple of years with companies that have been looking to relocate to Arizona,” McCarthy said. “My hope would be that, if they find it’s an impediment to job growth, that whatever would be proposed would be broad-based.”

Many Republican lawmakers are resistant to passing tax credits and incentives that can be viewed as government “picking winners and losers.” But some conservative lawmakers say they like what Brewer is planning, in part because of that broad-based approach.

Rep. David Stevens, R-Sierra Vista, said he thinks Brewer’s plan is a “conservative approach.” He said he wants to know why the governor isn’t looking to exempt homeowners from sales taxes on energy usage, but is intrigued by the possibility of a plan that would exempt all manufacturers, regardless of size.

“Whenever you reduce the cost of manufacturing, everything drives off of that — wholesale, retail, consumer purchasing,” Stevens said. “I think that’s a legitimate way of stirring some economic activity.”

Stevens said he’d like to know how the state will define “manufacturer” when deciding who is eligible for the exemption.

“I’ve got a sister-in-law who makes wax candles in her basement. I wonder if she would be considered a manufacturer,” he said.

Rep. J.D. Mesnard, R-Chandler, said he doesn’t like that Arizona taxes electricity usage at all. But he said it would unrealistic to eliminate a tax that generates more than $400 million a year in revenue.

If the exemption is broad-based, Mesnard said he could support the plan.

“At least conceptually, I think that sounds good,” Mesnard said. “I’d want to see the details.”

Governor gives vote of confidence to DES director

Arizona Gov. Jan Brewer (Photo by Evan Wyloge/Arizona Capitol Times)
Arizona Gov. Jan Brewer (Photo by Evan Wyloge/Arizona Capitol Times)

Gov. Jan Brewer voiced her confidence in DES Director Clarence Carter today as she announced a special team to oversee the investigation of thousands of child abuse cases CPS disregarded under his watch.

Brewer said she believes there was a failure in the command of CPS that led to more than 6,000 cases that were classified as “NI,” or not investigated since2009, and she intends to get to the bottom of it and hold people accountable.

“We need a complete, full investigation and we need to know where all the bodies are buried, if you will, no pun intended,” Brewer said. “We’re not going to start attacking people until we know that we’ve got a basis to do that.”

Brewer’s statements came after a press conference in which she announced the formation of the eight-member special team, dubbed the Child Advocate Response Examination, or CARE.  It will oversee the review of all the reports designated NI, and examine the CPS system and submit its findings to her.

The reports were phoned into the Child Abuse Hotline.  Certain supervisors determined they weren’t worthy of investigation and pulled them from the CPS database before they made it to the desk of an investigator.

Brewer’s team is led by Charles Flanagan, director of the Department of Juvenile Corrections.  It includes Sen. Leah Landrum Taylor, a Phoenix Democrat, and Rep. Kate Brophy McGee, a Phoenix Republican, both of whom are on the CPS Oversight Committee. Carter is also on the team.  So is Det. Greg McKay, the Phoenix homicide investigator on loan to CPS who discovered all of the uninvestigated cases.

The special team adds to the number of investigations already underway to address the failure. Among others, the Department of Public Safety is going to investigate how the NI designation, which is not authorized in rule or statute, came to be.

McKay said on Nov. 21 that he had been able to pinpoint the unofficial policy to brief periods in 2009 and 2011 as cost-saving measures, but the practice of not investigating reports became rampant in 2012 and 2013.

The CPS staff is also in the middle of reviewing the uninvestigated cases and plans to finish by Jan. 31.

Brewer said the purpose of the special team is to make sure each of the uninvestigated reports is thoroughly investigated.

“Moreover, it serves to restore public trust in the child welfare system,” Brewer said.

Since the Nov. 21 revelation, many have called for more funding and legislative solutions.

Scott Smith, Brewer’s chief of staff, said Brewer could push legislative proposals in the upcoming session based on the CARE Team’s findings.

“We would expect, with them being involved in this process, that they will see things from a personnel standpoint, an operations standpoint, a process standpoint. We would expect them to bring those to light and, if there are deficiencies, then make recommendations,” Smith said.

In its annual budget request in September, DES asked Brewer for an additional $4.6 million for the Office of Child Welfare Investigations.  The figure was part of requested $212 million budget increase for the agency.

Smith said the Governor’s Office will evaluate the request. But it would be irresponsible to draw up budget plans for CPS without first knowing the findings of the CARE Team and the Department of Public Safety’s investigations, especially considering that the DES budget request was made before the uninvestigated cases came to light.

“I think we will look to hear from the DPS administrative review and this CARE Team. And their input, I think, will be essential as we evaluate the DES and CPS budget request moving forward,” Smith said.

 

CARE Team

Charles Flanagan (Chair), Director Arizona Department  of Corrections

Deb Gullett, Child Advocate

Jan Strauss, Arizona Association of Chiefs of Police (Former Mesa Chief of Police)

Sen. Leah Landrum Taylor

Rep. Kate Brophy McGee

Rob Bell, Child Help

Greg McKay, director Office of Child Welfare Investigations

Cindi Nannetti, Maricopa County Attorney’s Office

Extracting funds for K-12

PullingFundsCrandell’s overhaul of school finance plan attracts skepticism and support

It’s a puzzle that has vexed policymakers, education leaders and business groups for decades, but it’s one that Sen. Chester Crandell hopes to solve: How can the state revamp education funding to be both fair and simple?

Crandell, a Heber Republican and retired superintendent of a vocational school, has been traveling the state giving a slide-show presentation containing bullet points of his colossal task.

Critics have long complained that the tangle of formulas, tax rates and layers of taxation aren’t in line with the Arizona Constitution’s mandate of a “general and uniform public school system,” and aren’t friendly to taxpayers.

The reception to Crandell’s plan, which he hopes to begin implementing in the upcoming legislative session, has ranged from snickering laughter to avowals of support, but many say the time has come to at least begin a serious dialogue.

“It’s trite, you know, (but) the longest journey begins with the first step, and this is what that is,” said Dick Foreman, who sits on the board of directors of the Arizona Business and Education Coalition, one of the groups that has heard Crandell’s presentation. “The little bit I know of Senator Crandell, and I don’t know him very well, but I detect a little fire in his eyes.”

Crandell wants to put the state in charge of doling out the money to school districts from a single fund, which he hopes to tackle in the next legislative session.

His longer-term plans are to phase out the use of bonds and budget overrides as a finance method for school districts, close the disparity in funding between school district students and charter school students, and ask voters to continue the funding provided by Proposition 301 after the 2000 voter-approved tax hike for funding education expires in 2021. Crandell proposes raising Proposition 301’s six-tenths of a cent tax to 1-cent and redirecting funding in the measure that is currently earmarked for higher education to K-12.

Some people familiar with Crandell’s plan agree that changes to school financing are necessary and they commend him for his efforts, though they remain skeptical he can succeed because of the magnitude of the changes he is seeking and the lack of political will to make them now.

The combination of complicated public policy, changes that will result in shifting the tax burden and the specter of an election give Susan Carlson, executive director of ABEC, a dim view of Crandell’s chances next year.

“There’s no single issue that has more devils in the details than school finance, and it takes time to examine those details to see how they work together and impact other elements of the school budget,” she said.

Crandell said the skeptics may be correct, but lawmakers have been “beating this thing around” for 20 years.

“I’m saying, put your money where your mouth is,” he said. “Let’s stand up and do something about it or let’s quit and quit complaining.”

Arizona overhauled its school finance system in 1980 to its current model and the Arizona Supreme Court has concluded that the state Constitution’s “general and uniform” provision requires equalization. The idea is that a student attending a school in a district with little property wealth to tax gets as much funding as a student in a district with great property wealth.

The state makes up the difference from the general fund: School districts with less property value get more state money than districts with high property values.

Kevin McCarthy, president of the Arizona Tax Research Association, said the Legislature in recent years has created more disparities among school districts by allowing districts to tax local property owners more.

The ability of school districts to raise money with voter-approved bonds and budget overrides means there is still a disparity in public school funding. And charter schools, which are public schools, aren’t allowed to hold bond or override elections, so they get less per-pupil than districts.

“It’s getting worse instead of better, so we just need to fix it,” Crandell said.

McCarthy knows about monumental change and the groundwork that needs to be laid before embarking on it.

ATRA was the most ardent advocate of a 2013 bill reforming the state’s complicated sales tax system, an issue that had been lingering for 20 years. It helped craft and shape the bill, which passed with near-unanimous support after an acrimonious, session-long fight from the cities and their allies, which initially opposed some of the measure’s key provisions.

Though reform is necessary, McCarthy said he doubts Crandell’s plan will gain much traction in 2014.

Succeeding in such a massive undertaking would require a significant amount of the preliminary consensus-building work to be done by late November, like it was with the sales tax reform.

And even in that case, a “battle-royale” still ensued, McCarthy said.

“The (sales tax) would pale next to a school finance rewrite,” he said.

Foreman, of ABEC and a lobbyist with Southwest Gas, said one of the problems with the Crandell proposal is it would create an incredibly intricate shift in tax burden, and major taxpayers like corporations are going to have to figure out the scope of the shift and the impact on their operations.

Foreman said the battle that would arise at the Legislature would be between interests that lose money from the change and those that gain money.

Comparing school funding to the 2013 sales tax reform, Foreman said, “If you thought you had a lot of problems with 30 or 40 cities, throw in 230 school districts and you begin to see the difference. Now, you’re dealing with a statewide monumental shift, tax assessment, analysis with lots of different spokespersons from lots of different causes other than just education. You’re talking taxation.”

He doesn’t think it can be done in the next session.

“It’s going to require arduous study and smoke-filled rooms,” Foreman said.

Crandell shrugs off the skepticism, saying he’s an optimist and if he “gets slammed down,” then maybe he doesn’t belong at the Legislature.

Complicating things further is that the reforms are likely to trigger a three-fourths majority requirement in both chambers because of the sales tax increase component. The state Constitution requires the super-majority approval on legislation increasing state revenues.

He also knows he would have to convince Gov. Jan Brewer, who needed the help of Democrats and a handful of moderate Republicans to pass her Medicaid legislation last session.

“The governor may not sign it, I didn’t vote for Medicaid expansion, so the talk is she may not sign it anyway even with a two-thirds vote,” Crandell said.

 

Plan to overhaul K-12 funding at a glance

2014

• Create a single source of K-12 funding administered by the state.

• Eliminate bonds and overrides.

Long term

• Increase the General Fund and Proposition 301 funds.

• Eliminate the School Facilities Board.

George W. Bush joins GOP governors at lunch

Former President George W. Bush talks to a book store customer while signing a copy of his book "Decision Points" at a store near his Dallas home, Tuesday, Nov. 9, 2010. (AP Photo/LM Otero)
Former President George W. Bush talks to a book store customer while signing a copy of his book “Decision Points” at a store near his Dallas home, Tuesday, Nov. 9, 2010. (AP Photo/LM Otero)

SCOTTSDALE, Ariz. (AP) ai??i?? Former President George W. Bush has made a surprise visit to the nation’s Republican governors.

The former president joined a group of about two dozen governors for lunch at an annual meeting of the Republican Governors Association at an Arizona resort.

Spokesmen for the former president say New Jersey Gov. Chris Christie asked Bush to come to lunch as a surprise and share some of his experiences from his time as Texas governor and U.S. president.

Christie became the chairman of the influential governors group on Thursday.

Arizona Gov. Jan Brewer says Bush spoke with the governors over two hours and encouraged them ahead of the 2014 elections.

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