Arizona Republican disappointed with Hobbs’ veto of his school funding bill

PHOENIX – A Republican Arizona lawmaker expressed his disappointment Wednesday after Gov. Katie Hobbs vetoed his school funding bill.

“I was hopeful that a Democrat governor would sign this bill, but she saw otherwise,” state Sen. Vince Leach said.

SB1050 would have shifted the burden of some school funding to developers who receive a certain tax incentive.

The legislation dealt with the Government Property Lease Excise Tax (GPLET), which encourages development by exempting projects that meet specific conditions from property taxes.

What was included in vetoed school funding bill?

If the bill had become law, developers within the GPLET program would have to pay the portion of the abated property tax that goes toward school funding.

“We have been trying … to abate the abatement, if you will, and get the money that the schools should be getting,” said Leach, who represents District 17 in southern Arizona.

Hobbs vetoed the bill on Monday and explained the decision in her veto letter.

“This bill has the potential to stunt Arizona’s economic development and negatively affect opportunity in the state,” the governor wrote.

Senator disagrees with governor’s reasoning

Leach said Hobbs is missing an opportunity to address school funding, one of her top priorities. He also doesn’t think the proposed GPLET change would discourage developers.

“I don’t believe that for one for one second,” he said. “People are coming here left and right because of our taxes and our weather and just because we’re in Arizona.”

With the veto of SB1050, the school funding mechanism remains unchanged in regards to the GPLET.

“If the taxpayer on the property doesn’t pay it, that responsibility falls back on the Legislature to make up that money, which means we must take it out of the General Fund, which comes from all the people that are in the state,” Leach explained.

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