Phoenix Tax Law Blog

Arizona Educators Brace for Temporary Funding to Expire

The temporary sales tax benefiting Arizona education are set to expire early 2013.

Arizona voters voted against Proposition 204 this election season, a proposal to make a temporary increase to state sales tax in benefit of Arizona schools. Many educators are concerned about a ‘fiscal cliff’ separate from the national dilemma.

The end of the temporary sales tax bonus to Arizona schools could signal massive layoffs, larger classrooms and absence of certain education programs altogether. The education system in Arizona is already working its way out of a lengthy recession from recent years, the cut in funding could trigger similar bleak conditions into happening again.

Governor Jan Brewer has publically stated the loss of funding to public schools will be compensated for, yet allocating necessary funds to compensate for losses measuring millions of dollars in loss remains unclear. With uncertainty reaching a new high, those in the education industry are beginning to brace themselves for the potential consequences.

The failure of Proposition 204 ushering in penalties to an already ailing education system in Arizona could potentially be a blessing in disguise. Should conditions worsen, immense scrutiny would be placed on the necessary changes to be made to rectify the situation going into the future.

Posted in State Taxes |