Ducey won’t promise to veto tax cuts

PHOENIX — Gov. Doug Ducey won’t promise to veto new tax cuts even as he says the state is putting as much money as it can into public education.

In fact, the governor is already committed to sign at least one measure that will cut state revenues by up to $15 million a year.

The issue arises amid rising complaints from teachers and educators that the state is short-changing public schools. That comes not only because per student funding is actually less than it was a decade ago after inflation is taken into account but that teacher salaries in Arizona are at or near the bottom of the nation.

Ducey, for his part, said he is doing what he can to turn around the situation which was made worse by the Great Recession. His current budget includes an additional $400 million in state aid to education, which he said is 80 percent of new spending for the coming fiscal year.

More than a quarter of that is mandatory, accounting for student growth and inflation. There’s also $34 million for the second half of the 2 percent pay hike for teachers lawmakers approved last year.

Ducey also proposes adding $100 million in what’s called “district additional assistance,’’ money that can be used for things like computers, books and school buses, as well as $88 million for new school construction.

Both of those, however, come in response to a lawsuit filed against the state which points out that the governor and lawmakers have ignored the legal requirement to provide those funds every year. In fact, Ducey himself cut more than $100 million from the formula in prior budgets.

In the meantime, Republican lawmakers have been pushing their own ideas for changes in the state tax code that would reduce future revenues.

Ultimately it could be Ducey who gets the last word. But the governor is unwilling to say those are off the table.

“I need to see the bill before I give you a comment,’’ he told Capitol Media Services, saying he will look at any such measures in the context of the total state budget.

“The commitment is to get 80 percent of new spending in this budget to K-12 education,’’ Ducey said.

He did not dispute, however, that any cut in revenues, by definition, means a smaller amount available for total new spending — and, by extension, fewer dollars for K-12 education.

The governor said he will review bills beyond his pre-endorsed tax break for military retirees and would veto them “if they’re in conflict with what I’m saying. But Ducey also said he does not necessarily see a conflict between focusing on K-12 education and tax cuts to spur business.

“I think people have seen our record on economic development, our success there,’’ he said.

“We want to continue to be consistent,’’ Ducey continued. “And we can improve the tax situation of the state while putting $400 million into K-12 education.’’

Ducey made a special pitch for his own tax cut proposal: Exempting the first $10,000 of military pensions from the state’s income tax.