Budget Rumors

The Arizona Guardian reports that a "fragile" budget deal is near completion. They have no information on direct cuts to public education, but do have a few details.

Remember, this is not official.

The state will not reduce home builder impact fees, but cities will have a two-year freeze on raising their rates. Impact fees are generally levied by local municipalities on new construction (homes, businesses, etc.) to help offset the "impact" on public services (e.g. roads, sidewalks, emergency services) needed to support the new construction.

So-called "sweeps" of revenue from vehicle license fees normally reserved for towns and cities have been "substantially reduced." This will lessen the impact on municipal budgets.

One piece which will impact education funding is a "step down" of the assessment rate for businesses (currently 20%) until they are equal to homeowners (currently 10%). The business rate would "step down" 1% per year for 10 years, which would gradually place the burden of taxation from property (read: school district overrides) onto home owners.

So far, the Democrats in the legislature are still forced to sit on the sideline. Neither the governor nor the Speaker or Senate President have brought them into budget negotiations. Only if legislative leadership cannot get enough Republican votes to support the compromise budget will they try to peel off a few Democratic votes for passage.

Stay tuned.