On Tuesday, as Arizona legislators met in their respective caucuses, Superintendent of Public Instruction Diane Douglas said she is very pleased by reports that Gov. Doug Ducey and legislators will call a special session on Thursday and that a deal has been reached to settle the ongoing education funding lawsuit.
Meanwhile, Arizona State Senator Steve Farley, whose hyperbolic rants have nearly lost him all credibility, said Governor Ducey’s proposed infusion of $2.2 billion in additional funds into Arizona’s K-12 schools over 5 years “looks like a bad deal for kids right now.”
Lawmakers were summoned to the Capitol on Tuesday to discuss the details of an agreement in the 2010 Cave Creek v. DeWit lawsuit, in which K-12 public school districts and charters alleged the state shorted them by not fully funding a voter-approved inflation formula during the Great Recession.
In his rant, Farley admitted that the “plaintiffs don’t want to continue to press the suit through additional appeals because they believe it will take too long and the outcome may be uncertain.” Despite that fact however, both democrat and republican lawmakers recognize the need for more school funding. For Farley, the sticking point is the involvement of the voters.
The Republican’s plan requires voter approval for increasing the amount of money used from the State Land Trust, the Democrat’s plan would give schools less money, but the voters would not have the right to vote on the matter as the money would come from the State’s current surplus and Rainy Day Fund.
Farley also objects to what he calls the “poison pills built into the deal.” Farley is outraged that the State would not pay inflation cost adjustments if job growth or sales tax growth is less than 2 percent annually. Farley acknowleges that Arizona is a poor state with a shaky economic future, but says that although it is a “fairly common occurrence in AZ” to have job growth or sales tax growth at less than 2 percent annually, he blames the problem on the State “artificially” reducing state revenues through tax cuts.
Contrary to Farley’s claims, Arizona’s tax scheme relies on one of the highest regressive sales taxes in the country. According to the Tax Foundation’s 2015 State Business Tax Climate Index, Arizona ranks 23rd among the states in terms of taxing for a positive business climate.
For her part, Douglas says she strongly supports “the decision makers who have come together to address the need for increased education funding, including Gov. Ducey and leadership at the Legislature.” Douglas says she is “excited and pleasantly surprised to hear that the plaintiffs and defendants in the lawsuit were able to reach a compromise that will result in immediate new funds for our schools.”
The Superintendent had previously expressed her disappointment that the state was only able to afford an additional $74 million for education in its FY 16 budget given increases in state revenues. This led her to call for an immediate appropriation of $400 million for classroom teachers, a plan that would have been supplemented in future years by Gov. Ducey’s land trust proposal.
With respect to the proposed settlement, the Superintendent said that while she is relying on a broad description of the compromise, the specific details will be key. However, she said she is confident that both parties are well represented and will do what is right for Arizona children.