Not every outcome of November’s frustrating and poorly run election was a disaster. While Maricopa County certainly dropped the ball, and we await the results of any lawsuits and investigations, voters passed some important initiative reforms.
One of those came from Proposition 129, which earned 55 percent of the vote. This measure amends the Arizona Constitution to limit ballot initiatives to a single subject. It also requires the subject to be included in the title of the measure.
The passing of Prop 129 is critical because for years, out-of-state special interest groups have made it a habit to shove multiple provisions on many different subjects into their ballot initiatives. That would often lead to confusion for voters who didn’t always understand what exactly they were voting for or against. And it would put voters in the difficult position to vote on the entirety of an initiative even though they may support some parts of it and oppose others. Now, with the single subject rule, ballot initiatives will have the same requirement for bills to pass the state legislature. And voters will gain some much-needed clarity when they cast their vote.
But Prop 129 wasn’t the only important initiative reform to pass in this November’s election. In a big win for taxpayers across the state, Arizona voters also passed Prop 132. This measure requires a 60 percent majority vote of the people on any ballot measure that seeks to raise your taxes.
Requiring broader support like this puts a check on out-of-state special interests who want to increase Arizona’s taxes to fund their schemes. After all, just look what they tried to do with Prop 208 back in 2020. This disastrous piece of legislation passed with only 51% of the vote and would have made Arizona a high tax state had it not been for litigation challenging the constitutionality of the plan killing it once and for all. Now, any measure aimed to raise your taxes will require a super majority, just like it does at our state legislature. And Arizonans can breathe a sigh of relief knowing that it won’t be so easy to take more money out of their wallets.
Of course, the big loser in all of this is out-of-state special interests, who spent millions in an effort to defeat Props 129 and 132. In fact, one group that called themselves Will of the People Arizona, was so concerned with stopping these initiatives that it raised and spent around $2 million to defeat Prop 132 alone. Of course, they didn’t bother to tell voters that only $33 from their massive fundraising haul came from people who actually live in Arizona. The overwhelming majority of their cash came from unions and liberal groups residing in California and Washington, D.C.
But this time, the people of Arizona saw through the lies. They passed Props 129 and 132, which should help stop groups in others states from bringing their radical ideas to Arizona’s ballots. And that is a significant step to protect the future of our state.
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When groups outside of Arizona have more interest in stopping an initiative reform than groups inside Arizona, that should tell you everything you need to know. And so it is with Will of the People Arizona, a group so concerned with our state that it raised nearly $325,000 in the third quarter of 2022.
That’s impressive, isn’t it? But do you know what’s even more impressive? Only $33 of the money raised by Will of the People came directly from people who actually live in Arizona!
You read that right…$33.
Despite its claim at the bottom of its website that only 20 percent of contributions are “coming from out of state,” the group received 11 payments from the Washington, D.C.-based The Fairness Project totaling more than $254,000. In addition, $70,000 came from the Berkeley-based Every Single Vote, and another D.C.-based group called Ballot Initiative Strategy Center contributed $326.11.
That’s well over 99% of the contributions to Will of the People Arizona coming from groups based in California and D.C. whose primary goal is to ensure our state is susceptible to their big money power plays. Specifically, these groups are trying to stop good initiatives like Props 129 and 132 which are designed to stop these out-of-state special interests from pumping money into Arizona to buy their way onto the ballot.
Currently, in the ballot initiative process, there is a lack of a single subject rule. This often gets exploited by out-of-state groups that want to shove multiple provisions on many different subjects into their ballot initiatives. Prop 129 would require ballot initiatives to pertain to a single subject, which is the same requirement for bills to pass the state legislature.
But stopping Prop 129 isn’t the only target of their big spending.
Prop 132 would require any new tax or tax increase on the ballot to receive at least 60% of the vote to pass. This is a critical initiative in this year’s election. Allowing 51% of the population (which may not have to pay the tax increase) to vote to tax the other 49% is wrong. We saw this most recently with Prop 208 back in 2020. This disastrous piece of legislation, which was pushed by out-of-state special interest groups, passed with only 51% of people voting for it. Had it not been for the court system killing Prop 208 once and for all, Arizona would right now be a high tax state.
The fact that Will of the People—or should we say “Will of Out-Of-State Unions and Special Interests”—is willing to spend big dollars to stop Props 129 and 132 proves exactly why Arizona needs these important initiatives.
It’s time to stop groups in California, Washington, D.C., or any other state from bringing their radical ideas to Arizona’s ballots. As you vote in this November’s election, protect your wallet, our state’s economy, and the future of Arizona by voting YES on Props 129 and 132.
Help Protect Freedom in Arizona by Joining Our Grassroots Network
Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!
Join our FREE Grassroots Action List to stay up to date on the latest battles against big government and how YOU can help influence crucial bills at the Arizona State Legislature.
Among the potential eleven ballot measures voters will see on their ballot this November, two make critically important reforms to the ballot measure process itself: Proposition 128 and Proposition 129.
Arizona is a target for out-of-state special interest groups that spend millions of dollars to put their radical ideas on the ballot. They take an issue that is unpopular with the electorate, like tax hikes, spend a few million dollars to park circulators in Phoenix and Tucson for a couple months, and throw bad policy on our ballots.
Take, for example, Prop 208, which narrowly passed in 2020. The out-of-state teachers unions in Oregon and DC spent more than $30 million over four years in their effort to buy the largest tax hike in state history. They lied to Arizona voters to get signatures, and they lied to get the slimmest of majorities to approve it.
There was one problem, though. It was unconstitutional, and they knew it! The nonpartisan Legislative Council told them so, but they went ahead with it anyway. After months in litigation, the Arizona Supreme Court ruled that it is, in fact, unconstitutional and was struck down in its entirety.
This is an example of a measure that, having part of it struck down by the court, invalidated the entire measure. However, there could come a time when a measure is not struck down in its entirety, leaving just fragments of the law that was approved by voters.
Currently, that means a broken measure stays in statute with no simple mechanism to fix it except to go back to the voters—which is confusing and costly.
Voters expect when they are presented with a proposition that the language before them is thoughtful and has been legally scrutinized. When that isn’t the case, Prop 128 provides a solution, with a narrow modification to our constitution to allow the legislature to amend the measure, only after the Arizona or U.S. Supreme Court have found it to contain unconstitutional or illegal language.
Proposition 129: Limiting Initiatives to a Single Subject
Another exploited aspect of the initiative process is that, unlike the legislature, there is a lack of a single subject rule. Lawmakers are bound by the Arizona constitution to craft bills that pertain to only one subject, and the provisions of the bill must be properly reflected in the title.
This requirement became very relevant just last summer, when the Arizona Supreme Court struck down many of the provisions in the state budget for violating it.
These two requirements serve a purpose, as the court noted in its decision. The single subject rule prevents “‘logrolling,’ or combining different measures into one bill so that a legislator must approve a disfavored proposition to secure passage of a favored proposition.” And the title requirement ensures that “a reasonable person should be expected to know what an act deals with based on its title.”
But these requirements do not exist for statutory initiatives. Initiatives can contain however many provisions that out-of-state special interests want to shove into them, on as many different subjects as they want. Take, for example, the so-called “Arizona Fair Elections Act.” It contains more than 60 different provisions ranging from radical Washington, D.C. style election changes to campaign finance law and even tax hikes all crammed into 26 pages in 9-point font.
Just as lawmakers shouldn’t be compelled to hold their nose on bad provisions in exchange for good ones, ballot initiatives should include only provisions logically and naturally connected to one another to limit confusion of the voters, obfuscation by proponents, and a “Sophie’s Choice” for the electorate.
Prop 129 would place the same requirement lawmakers have for the bills they craft on initiative measures, protecting our ballots from sprawling measures with various unrelated provisions.
Both Proposition 128 and 129 are measured, thoughtful, and necessary reforms to our constitution to ensure voters aren’t presented with confusing measures, and to provide a mechanism to fix broken language. VOTE YES on Prop 128 and 129.
Help Protect Freedom in Arizona by Joining Our Grassroots Network
Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!
Join our FREE Grassroots Action List to stay up to date on the latest battles against big government and how YOU can help influence crucial bills at the Arizona State Legislature.
It seems nowadays, the only ones who want to raise taxes are the government and far-left elites. That shouldn’t come as a big surprise. They’ll do whatever it takes to further their radical agenda—especially when their bank accounts go unaffected. But in a country that’s supposed to be governed by representation, too many tax increases in America—including right here in Arizona—are coming down to a simple majority.
Of course, we just saw this at the federal level when the so-called “Inflation Reduction Act” passed on a 51-50 vote in the Senate thanks, in large part, to Senators Mark Kelly and Kyrsten Sinema. Now, because of the slimmest majorities along party lines, taxpayers are left with a $700 billion repackaged version of President Biden’s Build Back Broke plan.
But this issue isn’t limited to the federal government, Congress, or even state legislatures. Just look at what happened with Prop 208 in 2020. This disastrous piece of legislation, which was pushed by out-of-state special interest groups, passed with only 51% of people voting for it. And it would’ve turned Arizona into a high tax state had it not been for the court system killing it once and for all.
Allowing 51% of the population (who probably don’t have to pay the tax increase) to vote to tax the other 49% to pay it, is wrong. And while today’s tax increase may not affect you, tomorrow’s most certainly will.
Introduced as HCR2015 by Rep. Tim Dunn (R-LD13), Prop 132 would require a 60% majority vote of the people on any ballot measure that wants to raise your taxes. Requiring broader support like this puts a check on out-of-state special interests who want to increase Arizona’s taxes to fund their schemes. This already happens in our state legislature where any tax increase requires a super majority. It’s only fair that voters have the same safeguard at the ballot box. We’re a representative government, and if we are asking Arizonans to part with more of their paycheck, it needs to be for something that has broad agreement from every part of the state.
After all, the reality is that at some point, you will be on the wrong end of a close vote. You will be in the minority. Crafting tax policy at the ballot box in this manner only creates class warfare and a tax code of winners and losers.
But it’s not even just about your wallet. These policies harm Arizona’s economy too. Thankfully, we avoided the Prop 208 tax that would have crushed small businesses in our state. But there will be more efforts like it to turn Arizona into a high-tax state like New York or California—the latter having driven away thousands of businesses from the state because of its taxes. In fact, California’s taxes and woke policies got so bad, the state actually ran out of one-way U-hauls!
This isn’t what the people of Arizona want. And it’s not what the people of Arizona deserve. Now, you have the opportunity to make your voice heard. Protect your wallet, and protect Arizona’s economy this November. VOTE YES on Proposition 132.
Help Protect Freedom in Arizona by Joining Our Grassroots Network
Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!
Join our FREE Grassroots Action List to stay up to date on the latest battles against big government and how YOU can help influence crucial bills at the Arizona State Legislature.
Republicans in the Arizona legislature are on the cusp of passing significant tax relief for hardworking families and small business. With historic levels of surplus cash sitting in the state coffers (over $4 billion for FY 2022 alone), returning this money to taxpayers makes sense. In fact, it would have already happened if not for two lone holdouts within the Republican caucus, claiming the $1.9B tax cut is just “too big.”
Are they right? Should the size of the tax package be reduced to avoid a funding cliff in the future?
For an answer to this criticism, it makes sense to examine current revenue projections being provided by the Joint Legislative Budget Committee (JLBC). For years JLBC has been relied upon as an independent source for revenue and budget projections by the state legislature. JLBC has never been accused of partisanship or of “cooking the books” to produce rosy budget scenarios. If anything, they have historically been too conservative in their figures, often because they don’t use dynamic modeling for their growth projections.
With this in mind, JLBC is projecting that by FY2024, baseline revenue for the state will be over $14.5 billion, a figure that has been growing with each month. For perspective, legislators were budgeting just shy of $11.1 billion in ongoing revenue prior to the pandemic—meaning that Arizona is expected to see a 31% increase in state revenue in four years.
Where is all this new revenue coming from? While a portion of this surplus is expected from economic growth, that is not the only source. Much of this new revenue is from a series of tax increases that continued to be ignored by opponents of the budget.
Remember the “monumental” new gaming compact Ducey signed in April—the one allowing for sports and fantasy sports betting? That is projected to rake in $300 million of new revenue annually by FY2024.
Another recent tax hike occurred when voters passed Proposition 207 last November, which is projected to bring in $46 million a year to the state (and millions to local governments).
While local governments have been sharing an analysis by Rounds Consulting Group to generate opposition to the tax cuts, that samememo from Rounds Consulting also highlights the projected economic growth and revenue benefits of the tax cuts. According to Rounds, by mitigating the impacts of Prop 208 through a tax rate ‘cap’ and corresponding tax cuts, new revenue for the state will be $500 million dollars.
And what about Wayfair, the 2019 legislation allowing for the taxation of online purchases? When passed, this was scored to bring in $85 million to the state. But now, OSPB is estimating that the General Fund will benefit to the tune of at least $465 million ongoing. That’s over 400% more over what legislators expected, and it must be included in the discussion of this tax “cut” mostly being an offset for prior tax increases.
Finally, though a new analysis by the Joint Legislative Budget Committee staff would need to be produced, another bill that could be added to the mix to reduce the cost of a tax cut package is SB 1783. JLBC previously projected the impact of Prop 208 on small business to be as much as $377 million each year. Protecting small business from paying the Prop 208 tax and not requiring the general fund to backfill under the “max tax” proposal would free up hundreds of millions in general fund costs.
So when factoring in the collection of the remote sales tax increase, gaming tax increase, Prop 207 tax increase, and economic growth caused by mitigating Prop 208, the total package does not “cost” $1.9 Billion. The actual figure is well under $1 Billion, or less than 1/3 of the projected revenue growth over the next three years.
Proposition 207 (in millions)
$46
Wayfair
$465
Gaming
$300
Proposition 208
$377
Revenue Growth
$500
Total
$1.69 billion
The state would still be collecting $14.2 billion in FY 2024—a 28% increase in revenue compared to the aforementioned, pre-covid FY2020. This will not cut funding for any state programs or agencies, in fact the budget proposal continues to increase funding for priorities like education. It is clear, the tax package does not “cut too deep.”
But these holdout Republicans also say we should be paying down debt. That prioritizing debt payoff is actually the true conservative position—not cutting taxes.
First, this budget does pay off debt. A lot actually—nearly a billion dollars of it. And there is room for more one time debt payoff with one-time monies. That’s the key though—one time. You don’t use ongoing revenues for one-time spending. We have billions in one time money available, and it can and should be used to expire as much debt as possible. But that can be done while also ensuring historic, permanent tax cuts with the monumental ongoing surplus.
The truth is, Arizonans have shouldered too many tax increases in recent years that aren’t even included on this list. Where do taxpayers go to get their refund from the $32 “Highway Safety Fee” enacted in 2019 (resulting in approximately $500 million for the state) that never should have happened?
The fees, new taxes, and inadvertent tax increases over the years have added up, and they have added up to the tune of a $4 billion surplus this year.
A tax cut of $1.9 billion is easily sustainable (and we could probably afford more). Any package that is less than $1.6 billion would not properly offset the recent slate of tax hikes or take into account dynamic revenue growth identified by Rounds.
The only question these Republicans legislators should be asking, is this tax cut package too small?
Help Protect Freedom in Arizona by Joining Our Grassroots Network
Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!
Join our FREE Grassroots Action List to stay up to date on the latest battles against big government and how YOU can help influence crucial bills at the Arizona State Legislature.
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