PHOENIX – Arizona’s Joint Legislative Budget Committee just released a new analysis showing that state revenues have fallen 44% compared to this time last year, with revenues now projected to be $183 million less than initially forecast.
This decline in state revenues is due in large part to the 2.5% flat tax established in 2021. The flat tax, which was passed by the Republican-controlled legislature and signed by Governor Doug Ducey, disproportionately benefits the very rich.
In response, AEA President Marisol Garcia released the following statement:
“In 2021, extreme politicians chose to side with their campaign donors and lobbyists and pass a huge tax break for the 1%. We’re seeing the impact of that decision today. Our state budget, already hit hard by the out-of-control voucher program, is now even further in the red.
Every Arizona student deserves to attend a well-resourced school with art and music programs, sports, and classes small enough for individual attention. And all of us deserve clean water, reliable transportation and affordable housing. But we’ll never get there if we insist on funding tax breaks and loopholes for the wealthy instead.”