ARIZONA

Gov. Doug Ducey signs $9.6 billion Arizona budget

Alia Beard Rau
The Republic | azcentral.com
Arizona Gov. Doug Ducey

Gov. Doug Ducey has signed into law the $9.6 billion state budget passed by the Legislature last week.

"This budget is balanced, it's values-based and it tackles our greatest challenges," Ducey said in a statement. "It makes critical investments in K-12 education, child safety and public safety -- all without raising taxes."

The budget, which takes effect July 1, restores some funding to K-12 education and provides an $8 million tax cut for business owners.

According to the Joint Legislative Budget Committee, the budget is expected to leave the state with $66 million in the bank by the end of next fiscal year and a $1.5 million structural balance.

MORE: While you were sleeping: Legislature approves a budget

K-12 education 

The budget holds schools unharmed for the coming year, delaying more than $30 million in policy changes that would have led to cuts for numerous school districts with declining enrollment, among other measures.

The budget:

  • Delays for a year a change lawmakers enacted last year to fund schools based on current-year attendance instead of prior-year attendance. The move is expected to cost schools $31 million.
  • Provides funding to mitigate cuts approved last year to district-sponsored charter schools. The cuts would have cost about $1.2 million.
  • Provides funding to mitigate cuts approved last year to decrease funding to smaller charter schools. The cuts would have cost about $6.5 million.
  • Eliminates a change in the original budget that determined how schools qualify for new construction. The change would have affected projects in the Agua Fria and Chandler high school districts. If Agua Fria doesn't meet the existing threshold, it won't get the promised money.
  • Provides $100,000 for a new geographic literacy program. 

University funding

The budget gives state universities an additional $32 million.

It includes $5 million earmarked for so-called freedom schools aimed at advancing free-enterprise concepts at Arizona State University and the University of Arizona.

The billionaire Koch brothers, whose network of "dark money" supported Ducey’s 2014 campaign for governor, have provided funding for the freedom centers. ASU has two and UA has one.

The budget includes:

  • $8 million more annually to cover an increase in baseline funding due to population increases. 
  • $3 million in ongoing money to an ASU economic freedom school; $2 million in ongoing money for a UA freedom school.
  • $8 million in one-time money to UA.
  • $7 million in one-time money to ASU.
  • $4 million in one-time money to Northern Arizona University. 

ROBERTS: Ducey (read: the Kochs) scores monster wins in Arizona

Tax cuts

Ducey's promised income tax is included in the budget. It allows businesses to more quickly depreciate the deduction they can take for purchases of new equipment. It is estimated to cost $8 million next year, doubling to $16 million in fiscal 2018.

Child welfare

According to Ducey, the budget includes a $116 million two-year investment in child safety, "while focusing on safely reducing the growth rate of children in state care."

Key funding includes:

  • $2.7 million this year and $2.7 million next year to have outside contractors work on the backlog of cases of abuse and neglect that have not had services provided to the child or parents for two months or that have not been worked on for at least 60 days.
  • $13.8 million for investigations and operations.
  • $10.3 million for out-of-home placements in foster homes. 
  • $12.5 million for out-of-home support-services growth.
  • $8 million for emergency and residential placement. 
  • $2 million for foster families.
  • $5 million for preventative services for families.
  • $6.4 million for adoptive families. 
  • $2 million for child-care growth.

Public safety 

Ducey has been running a Border Strike Task Force out of the Department of Public Safety since September and sought to permanently fund it, hire troopers, buy equipment and maintain it. The task force would partner with federal and county law enforcement to fight drug and human smugglers. Ducey proposed spending $21.5 million of general-fund money to get the program up and running and $10 million in general funds for ongoing expenses.

The budget includes $26.6 million for the program.

Transportation

The budget includes $86.5 million for road improvements and transportation projects.

The state money will combine with federal money to widen Interstate 10 near Picacho Peak, widen State Route 189 west of Nogales and pave a portion of road that connects the Hopi and Navajo reservations.

Interstate 10 near Picacho Peak has been of particular concern in recent years. Blowing dust in the area has contributed to numerous fatal crashes.