We are thirteen days into the legislative session for 2020. Several bills have been introduced. Also recently released the Governor’s budget for Fiscal Year 2021 and its counterpart, the Legislative budget for FY 2021. Here is a quick overview of what we are seeing:
Governor’s Budget:Released Jan. 17, 2020
Budget Summary
Governor’s FY 2021 Budget
Includes:
$12.3 Billion for spending
$300 Million ongoing
$685 Million one time
$447 Million K-12 (58% of discretionary spending)
$11.1 Million community college STEM & Workforce programs
$10.6 Million rural community colleges
$35 Million one time university operating and capital improvements
$35 Million Az’s New Economy initiative university
$10 Million additional for research university
$1 Million additional Teacher’ Academy university
Public Universities and Community Colleges:
Increase funds Az Teachers Academy
Enhance ability to graduate students in “critical areas”
Expands adult learners’ access, job training, employment opportunities
Fully funds community college STEM programs
Expands education opportunity in rural Az and support tech advancement
Total investment in education since 2015 $6.6 Billion. More than 60% of the budget is spent on education.
Finances widening I-10 to Tucson including the bridge at Gila River, widening I-10 from Varrado Way to Miller Way, and several bridge and intersection improvements.
$10 Million rural broadband
Senate Tax Act (Mesnard) – change commercial property tax – reduction
Reduces commercial assessment rate from 18% to 17%. As always, we need to ask where the costs shift to? Arizona REALTORS® has already stated cost shifting to homeowner property taxes is not acceptable.