Public education supporters rail against Ariz. Gov. Katie Hobbs' new budget deal: Here's what you should know

PHOENIX - Arizona Democratic Governor Katie Hobbs and Republican Party lawmakers have negotiated a deal on Arizona's budget for the next fiscal year.

The budget for next fiscal year is expected to be the largest in Arizona's history, but already, some Democratic Party lawmakers and education organizations are pushing back, urging the budget to be rejected.

Here's what you should know about the budget.

How big is the proposed budget?

The budget, as proposed, is $17.8 billion.

What does it include?

The budget deal includes, among other things:

• A one-time $77 million appropriation in 2024-2025 for the New School Facilities Fund
• $50 million to increase school safety grants
• A $250 tax rebate for parents with dependents younger than 17 ($100 for those 17 and older)

Didn't Gov. Hobbs vetoed a budget proposal earlier?

On Feb. 16, Gov. Hobbs vetoed a series of 13 bills related to the budget.

In her veto letter to the State Legislature, Gov. Hobbs accused GOP state lawmakers of "presenting Arizonans with false choices" with the budget they passed.

"It says that as Democrats and Republicans, we can't disagree with each other and work together in the best interest of the state," read a portion of the letter. "I am confident that we can work together on a budget that addresses our state's housing crisis, lowers costs, prepares our workforce, and invests in public education."

Read More: More bills vetoed by Arizona Gov. Katie Hobbs: here's a list of the bills affected

Why are some opposed to the budget deal?

Among the people opposed to the budget deal are those with a group called Save Our Schools Arizona. Members of the group held a rally outside the Arizona State Capitol on May 9, where they demand lawmakers to reject the budget.

"We’ve got uncapped, unfettered ESA program that is running rampant with taxpayer funds, and threatens to bankrupt our state, so we are asking the Governor to fix the budget," said Beth Lewis.

According to Save Our Schools Arizona officials, the proposed budget fails to cap the Empowerment Scholarship Account program, which they say threatens the future of public education in the state.

"The money that was passed for universal vouchers last year would actually fund $10,000 teacher pay raises for 35,000 educators this year alone, and that number is growing and growing," said Lewis.

In her proposed budget, which was released in January, Gov. Hobbs proposed an undoing of the ESA expansion, returning the program to what it was before GOP lawmakers approved the expansion.

Read More: Universal school vouchers: What you should know about the bill that Arizona Gov. Doug Ducey signed into law

In a joint statement released by State Senate Democratic Leader Mitzi Epstein and State House Democratic Leader Andrés Cano, the ESA expansion was compared to the botched alternative fuel subsidy program Arizona officials launched in 2000.

"Republicans 23 years ago acted quickly to address the Alt-Fuels fiasco, another misguided subsidy for the purchase of SUVs and luxury vehicles. That program quickly grew out of control and was halted when the projected cost to the state grew to nearly $700 million," read a portion of the statement. "A Republican Governor and Legislature wisely approved a moratorium and imposed new eligibility requirements to reduce the state's expense. Alt-Fuels, like the Republican’s Alt-Schools ESA voucher program was supposed to cost a tiny fraction of what it actually cost."

State Sen. Epstein represents the state's 12th Legislative District, which covers Ahwatukee, as well as portions of Tempe, Chandler, and the Gila River Indian Community. State Rep. Cano represents the state's 20th Legislative District, which covers a portion of Tucson.

It should be noted that State Rep. Cano has announced his decision to resign when the current legislative session ends, as he pursues a graduate degree at the Harvard Kennedy school.'

Read More: Arizona House Democratic leader Cano leaving for Harvard

What was the alt-fuels program that Cano and Epstein were talking about?

According to an article by the Associated Press in 2000, the alt-fuel fiasco involved an expansion of an alternative fuels program that was approved by lawmakers that year.

In a report by the Washington Post, it was stated that some Arizonans were offered an tax credit of about 30% to 50% of a new SUV's cost, with a condition the vehicles had a second tank that burned fuel considered to be cleaner at the time, such as propane or condensed natural gas.

The program proved unexpectedly popular, as many residents rushed to take advantage of the tax breaks that the program's costs spiraled. Furthermore, according to Washington Post's report, the law did not require the vehicle's owner to actually use the cleaner fuel. 

When legislators passed the alt-fuels expansion, it was supposed to cost about $3 million, according to the AP. Later estimates, according to the Washington Post, put the program's cost at $600 million, which, according to a state legislator at the time, represented 10% of the state's budget then.

The program, according to Washington Post, was later capped to those who took possession of their new cars, or those who had fully financed them, by a certain date.

What are GOP lawmakers saying about the proposed budget?

State Sen. John Kavanagh said they worked hard on the budget, and a majority of the funds are going to education.

"If you look at overall education spending for district and schools, this budget increases it by 6%, which is pretty good," said State Sen. Kavanagh. "For charter schools, they are up 5%, so this budget is actually weighted towards education."

State Sen. Kavanagh represents the state's 3rd Legislative District, which covers a portion of rural Maricopa County northeast of the Phoenix area.