Gov. Doug Ducey’s newly proposed budget has come under fire for its large tax cuts and its lack of sustainable funding for education.

The budget totals $12.6 billion in spending — a growth of 7.3% from the previous year. The revenue from the general fund is expected to grow by 5.3%. Additionally, there is currently $954.4 million in Arizona’s rainy day fund.

The increase in proposed spending as well as the increase in expected revenue come despite dire predictions last spring of what the COVID-19 pandemic would do to the state’s economy. It also comes amid continued restrictions at many businesses that limit customer counts.

Among the highlights of Ducey’s proposed budget:

• $389 million to help students with the learning loss caused by the pandemic;

• $10 million to help expand school choice to families by providing transportation options;

• $33.1 million to expand the broadband connectivity along the Interstate 40;

• $200 million in tax cuts this year, totaling in $1.2 billion over the next three years;

• $92.7 million in supplemental funding for the 2021 fiscal year to support COVID-19 relief programs for child care providers;

• $24 million to the Arizona Healthy Forest Initiative — a program aimed to help reduce the risk of wildfires by removing overgrown vegetation.

• $25 million to implement the Family First Prevention Services Act, which aims to support children and their families by preventing foster care placements whenever possible.

Education

The state has allocated $5.8 billion, which makes up 46% of the state’s budget, toward education. About 30% of these funds, approximately $1.9 billion, come from federal money such as the two federal stimulus bills, the Governor’s Emergency Relief Fund and the Coronavirus Relief Fund through the Enrollment Stabilization Grant Program.

Some have criticized the governor for not providing more sustainable funding for education.

Arizona’s Superintendent of Public Instruction Kathy Hoffman said in a statement that though the budget includes “significant one-time federal dollars” that will help provide schools with relief from the pandemic, it lacks “sustained investment” for public schools.

“What our students need most are fully funded public schools equipped to meet their unique needs,” she said. “Public schools need sustainable, predictable operational funding to recruit and retain highly qualified educators and staff, support their students’ mental health, and bridge the opportunity gap for every student in our state.”

The $389 million, which was left over from the previous year because of a reduction in attendance and enrollment during the 2020-21 school year, will be reinvested into K-12 education by funding a grant program.

The program is aimed to support students through the learning loss that was caused by the pandemic. Allocations of this fund include aiming to provide at least $500 for each of the 600,000 students in the state eligible for free and reduced-price lunches programs.

It also aims to provide additional support to help students who are in the critical grades of kindergarten through third grade, eighth grade and 12th grade stay on track.

Tax Cuts

One of the most notable elements of the proposed budget is the substantial income tax reductions. A total of $1.2 billion spread over the next three years has been allocated to tax reform — $200 million in fiscal year 2022, $400 million in the fiscal year 2023 and $600 million in the fiscal year 2024.

The initiative aims to provide cuts to individuals and small businesses while also promoting Arizona’s economy.

“After many months of adjustments and uncertainty, we want to make sure everyday Arizonans and small businesses get to keep more of the money they earn,” Gov. Ducey said in a statement. “Arizona’s economy is resilient, and this budget will support that.”

Phoenix Mayor Kate Gallego disagrees with Ducey’s decision to employ such tax cuts.

She said in a statement the proposal is “shortsighted and does tremendous damage to Arizona cities like Phoenix.” She added the tax cut could cost the city of Phoenix $25 million, causing damage first to the police and fire departments as well as to Phoenix libraries and community centers.

Internet Access

The expansion of internet connectivity continues to be a noteworthy facet of the state budget.

In June 2020, $40 million in federal funds from the Coronavirus Aid, Relief, and Economic Security Act were allocated to expand broadband connectivity on the Interstate 17 from Anthem to Flagstaff and on the Interstate 19 from Tucson to Nogales in response to students’ transition to online learning brought on by the pandemic.

Arizona’s new budget proposal expands on these investments with $33.1 million will go to expanding connectivity on the I-40 from Flagstaff to the California border.

Additionally, $10 million will go to supporting a grant program that aims to provide broadband planning and infrastructure to rural communities.