Legislative Bill Targets Repeal of State Equalization Rate

Phoenix, AZ Among the first ten bills to be introduced and discussed by Arizonas 49th Legislature is a repeal of the State Equalization Rate, a tax investment contributed mostly by large corporations which benefits Arizonas public school children. The legislation, designed by Senator Jim Waring, will eliminate state revenue totaling nearly $250 million. Building new schools and roads, upgrading state technology for 21st-century proficiency, and meeting the needs of all Arizona families are issues incoming legislators will face this January. More than a third of Arizonas legislature will be made up of first-time Representatives and Senators, and they will be asked to deal with these issues while also solving the states $1.5 billion deficit. John Wright, president of the Arizona Education Association, said, Arizona must keep all options available to solve the deficit. Eliminating a consistent source of revenue such as the State Equalization Rate seems irresponsible. During the 2006 legislative session, a deal was struck between Governor Napolitano and Republican legislative leaders. That deal withheld collection of the State Equalization Rate for three years. At the time of the suspension, state revenues were at record levels. When the deal was made lawmakers, business interests, and community groups agreed to a temporary suspension of the State Equalization Rate. Lets keep this promise, Wright said. Government officials estimate the average impact for residential property owners is between four and seven dollars per month. Small business owners pay approximately $600 annually, and, on average, the largest property owners in the state pay less than $2,500. Continuing this small individual contribution can bring Arizona closer to solving its budget crisis and achieving adequate funding for its public schools, Wright said. According to the Joint Legislative Budget Committee, the State Equalization Rate would have generated more than $200 million each year for the last three years. The amount totals more than $700 million during its suspension.