Budget conversations at the AZ Legislature. As the Legislative session is slowly winding down, all eyes are focused on the budget for next year. Both party caucuses have proposed budgets at this point, and negotiations are underway. The budget is the very last thing the Legislative body will focus on, but is still a very difficult process.

As of now, Republicans have created a budget deal that would implement a flat 2.5% income tax that cuts $1.5 billion a year from the state revenue. It would also ensure that the highest-earning taxpayers will be capped at a 4.5% tax surcharge, preventing them from indirectly adding to education funding.

The tax cuts proposed in this legislation are some of the largest Arizona has ever seen. These cuts could have a widely negative impact for schools and teachers across the state. As discussions are still underway, it is crucial to ensure schools and teachers have heavier consideration in this next fiscal year’s budget.