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Axios
02-05-2025
- Politics
- Axios
Capitol Roundup: Republicans eye school choice protections in Prop. 123 renewal
Republican lawmakers plan to include school choice protections in a proposal to renew Proposition 123 when the expiring K-12 funding measure goes to the ballot next year. The big picture: Lawmakers and Gov. Katie Hobbs are trying to renew Prop. 123, which expires at the end of June. Rather than put the several hundred million dollars it generates annually toward general school funding, GOP lawmakers want to focus exclusively on teacher pay. Sen. J.D. Mesnard, R-Chandler, is working on an amendment to add protections for Arizona's array of school choice programs in the state constitution. Zoom in: Mesnard told Axios the amendment hasn't been finalized but that it would protect charter schools, homeschooling, open enrollment, tuition tax credits and the controversial voucher-style Empowerment Scholarship Account (ESA) program. Mesnard said the provision would protect "what we believe is the fundamental right to direct the educational upbringing of their kids" Mesnard noted the original Prop. 123 very narrowly passed in 2016, and he said he believes the school choice provision would increase voter support. The intrigue: Lawmakers have been at odds over whether the new Prop. 123 would only increase pay for teachers, as Republicans have proposed, or include non-teaching support staff, which Democrats support. Hobbs pitched a new plan in March that raises only teacher salaries, while Senate Democrats unsuccessfully backed a proposal to renew Prop. 123 in its current form. Adding school choice to the mix would likely ensure opposition from Democrats, who are largely hostile to the ESA program. Democrats and public education advocates began sounding the alarms Thursday after the Arizona Education Agenda first reported that Prop. 123 renewal would include ESA protections. Yes, but: Republicans don't need Hobbs or Democratic votes to refer measures to the ballot. The other side: Arizona Education Association president Marisol Garcia told Axios she would prefer Prop. 123 to be renewed in its current form so school districts have flexibility in how they spend the money. She questioned why protecting an ESA system she described as "fraught with abuse" and lacking guardrails and transparency should be a priority. Hobbs spokesperson Christian Slater told Axios that Prop. 123 renewal has a greater chance of passage if it's bipartisan and has a broad coalition of support. What's next: Mesnard said the House and Senate could vote on an amended Prop. 123 plan as early as next week. In other Capitol news this week: 👋 Hobbs accepted the resignations of Carmen Heredia, who leads the Arizona Health Care Cost Containment System, and Jennie Cunico, the director of the Arizona Department of Health Services, on Wednesday, saying it became clear Senate Republicans wouldn't confirm them. ₿ The Senate sent Hobbs a bill Tuesday that would allow the state to invest up to 10% of state funds in cryptocurrency.
Axios
25-03-2025
- Business
- Axios
Arizona lawmakers debate Chase Field renovation funding
Legislation to fund Chase Field repairs and improvements moved forward Monday with several notable changes, but there's more work ahead. The big picture: House Bill 2704 seeks to resolve a long-running dispute over how to pay for ballpark improvements by using sales taxes generated by the Arizona Diamondbacks. The team's 30-year lease ends in 2027 and managing partner Ken Kendrick said last year that the Diamondbacks "may run out of time in Phoenix" without public funding for renovations. Driving the news: The Senate Finance Committee on Monday passed an amended version of the bill on a 4-3 vote. While the vote fell mostly along partisan lines, one Republican voted against it and one Democrat for it. The intrigue: Phoenix Mayor Kate Gallego last week sent Gov. Katie Hobbs a letter outlining several objections to the bill. Gallego argued that legislative budget analysts incorrectly calculated the tax revenue it would divert, which she said would be about $1 billion. She added there's no limit on how much could be spent on repairs and upgrades, which the Diamondbacks have said would require $400 million to $500 million. The mayor also wants to ensure the team puts in a significant amount of its own money. And she wants restrictions on the types of buildings and amenities the team can invest in, such as luxury clubs in the ballpark and hotels and restaurants on adjacent land. State of play: Committee chair Sen. J.D. Mesnard, R-Chandler made several changes to address Gallego's concerns, including: Imposing a $500 million aggregate cap over the 30-year span of the bill; Removing a provision that redirected income tax revenue from team employees to the stadium fund; Redirecting Maricopa County sales tax revenue to the fund. Zoom in: Gallego told the committee she still wants more changes. Meanwhile, Senate minority leader Mitzi Epstein, D-Tempe, questioned why the team doesn't pay for its own repairs, and said more tinkering is needed. The other side: Supporters emphasized the economic, civic and ancillary benefits the city and state see from having the Diamondbacks. While Gallego focused on the tax money that would disappear, Sen. Vince Leach, R-Tucson, argued Phoenix would lose significantly more if the team left the city. Meanwhile, Maricopa County switched its position from neutral to opposed over the amendment provision that diverts county tax revenue to the stadium fund. In a letter to Mesnard on Monday, assistant county manager Zach Schira noted the county doesn't own the ballpark and gets no direct tax revenue from it. What's next: Mesnard emphasized that negotiations remain ongoing and said his amendment likely won't be the last.
Axios
11-02-2025
- Business
- Axios
No timeline for Prop. 123 renewal plan
GOP lawmakers have a starting point for negotiations on a Proposition 123 renewal plan that would increase teacher pay, but no timeline for when they'll move forward. Catch up quick: Voters approved the original Prop. 123 in a 2016 special election. The plan, which ended years of litigation over K-12 funding, increased school disbursements from the state's land trust fund. That expires at the beginning of July. The big picture: Sen. J.D. Mesnard, R-Chandler, and Rep. Matt Gress, R-Phoenix, introduced identical proposals at the end of January to renew the plan. Mesnard told Axios that the latest draft is a placeholder while lawmakers work out the details. State of play: Mesnard said there are no details for when a Prop. 123 renewal will go up for a committee vote. The only time constraint lawmakers face is the Feb. 21 deadline for bills to receive committee hearings in their original chamber. If lawmakers can't reach an agreement soon, Mesnard said they'll have to pass a bill out of committee with the understanding it'll be amended. Friction point: There are several variables lawmakers must work out before sending something to the ballot. Whether they increase the 6.9% disbursement rate from the land trust fund. Whether they go with another temporary plan or make it permanent. Whether they put it on the November 2026 ballot or pursue a special election this year. Whether they increase pay only for teachers or school support staff, too. The intrigue: Republicans largely support using the Prop. 123 money to increase teacher pay but not support staff, while Gov. Katie Hobbs and other Democrats have advocated for higher salaries for everyone. GOP lawmakers can send a renewal plan to the 2026 ballot on their own but need the governor's approval if they want a special election. But because the expiring Prop. 123 will be backfilled in the next budget, no funding cliff would necessitate a special election. Mesnard said there's a "strong preference" among Republicans for a teacher-only plan, but he also wants broad enough support to ensure it passes at the ballot, noting the original Prop. 123 election was a nail-biter. What they're saying: "I'm going to be as open-minded as I can," with the understanding that most if not all Republican legislators want to focus on teacher pay to ensure the pay raise is meaningful, Mesnard said. The other side: The Hobbs administration is in negotiations with stakeholders and lawmakers in the hope of reaching "a bipartisan solution that raises teacher pay, funds our schools and delivers a high-quality education," gubernatorial spokesperson Christian Slater said.
