Tax cuts, no new debt

In a victory for the Grand Canyon state, Arizona's Republican-led state legislature has passed its most conservative budget in more than a decade. The 2024-2025 state budget, praised for its fiscal discipline and strategic allocation, eliminates a $1.4 billion deficit while strengthening public safety, school choice and infrastructure investments.

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Fiscal Responsibility and Strategic Investments
The newly approved budget cuts state spending by $1.7 billion, a 10 percent reduction from the previous fiscal year. This reduction includes reducing ongoing spending by $330 million and strategically reducing funding for state agencies by 3.5%. Despite these cuts, essential services and critical investments remain intact.

“Following last year's state budget, where Republican lawmakers provided inflationary relief to Arizonans through $274 million in tax credits handed out to struggling families, as well as the rental tax ban paid for by the tenant that goes into effect this January, Republicans are successfully once again supporting our hardworking citizens while reining in spending…” Senate President Warren Petersen stated.

Improving border security and public safety
To improve border security, the budget allocates $5 million for local border security support and $4 million for fentanyl interdiction and law enforcement response. Senator David Gowan, chairman of the Senate Committee on Military Affairs, Public Safety and Border Security, highlighted the positive impact on community safety. “We are funding two full-time positions at the Department of Public Safety to address a backlog of concealed carry permit applications and renewals, with the requirement to prioritize Arizona residents first,” Gowan explained.

Support for education and school choice
The budget ensures robust funding for empowerment scholarship accounts and school enrollment organizations, reaffirming the state's commitment to school choice. In addition, Arizona's freedom schools receive protection under this budget, ensuring that students have access to a quality education regardless of their economic status.

Majority Whip Sine Kerr reaffirmed that commitment, stating, “We remain committed to providing every family in the state of Arizona with a quality education, regardless of their zip code or economic status. Additionally, we said “no” when Governor Hobbs and the Democrats proposed to eliminate our Arizona Freedom Schools at our public universities, which are dedicated to civic education and ensuring students are equipped on the path to lead our state to a brighter tomorrow.”

Infrastructures and Environmental Policies
The budget continues to fund vital infrastructure projects, allocating more than $520 million for transportation across the state. It also cuts vehicle emissions test fees by 5 percent and prohibits rate increases for Arizona residents for two years.

No new taxes or tax increases
One of the signature achievements of this budget is a firm commitment to no new taxes or tax increases. Arizona Republicans have long championed lower taxes as a core principle, understanding that keeping more money in the hands of hardworking citizens fuels economic growth and personal freedom. By ensuring no additional tax burden, this budget provides relief to Arizona families and fosters a more prosperous business environment, encouraging investment and innovation across the state.

Challenges with a slim majority
Passing this historic budget was no easy task, especially with Republicans holding a slim majority in the state legislature. Every Republican vote was critical, and when a few party members voted “no,” Democratic votes had to be found to get a “yes.” This need for bipartisan support meant that some concessions had to be made. While Republicans are steadfast in their principles and prefer not to bend to the left, the reality of legislative negotiation requires compromise to avoid deadlock. We cannot let the whole ship sink over perceived principles when vital policies are at stake.

Additional highlights

• No new taxes or tax increases.
• Maintains law enforcement funding.
• End ongoing funding for federal COVID programs.
• Adds full-time employees to expedite concealed carry permit processing.

This budget represents a major achievement for Arizona Republicans, showing a commitment to fiscal responsibility, public safety and education without raising taxes or creating new debt. As Arizona continues to grow and evolve, the legislature has set a conservative and sustainable path for the state's future.