Jan Brewer gets one wrong, one right

Posted by AzBlueMeanie:

Last week Governor Jan Brewer signed special legislation by Rep Terri Proud, R-Tucson, before the ink was even dry on the engrossed bill. The law requires a forensic audit of Pima County bond projects because the Town of Marana felt it is not getting its "fair share" of Pima County taxpayer property without having to pay for it, such as the waste water treatment facility our Tea-Publican legislature handed over to the Town of Marana last year. Brewer OKs Pima County audit.

"Brewer sees nothing wrong with singling out one county for special treatment." That's known as special legislation, and it is unconstitutional. Pima County should consider suing.

One would think that Governor Brewer would jump at the chance to diss the City of Tucson as well. So it was somewhat of a surprise that Governor Brewer vetoed a bill drafted by Fletcher McCusker, one of the key promoters of downtown Tucson redevelopment, in an effort known as the "Downtown Tucson Initiative." Brewer vetoes bill to revitalize Rio Nuevo plans:

Changes proposed to revitalize Tucson's Rio Nuevo redevelopment project were shot down Monday by Gov. Jan Brewer, an apparent victim of the standoff between her and lawmakers on a new state budget.

In an extensive rejection letter, Brewer said HB 2647 would have created more opportunities for businesses willing to invest in the area because they would be able to recover some of their costs by keeping some of the state and local sales taxes they generate. [This is an abatement of the transaction privilege tax (sales tax) "incentive" allowing developers of new development in the Rio Nuevo District to keep sales taxes collected by their business.] The change was designed to get businesses to locate and expand in Rio Nuevo's downtown redevelopment zone.

But the governor said she was not interested – at least not now.

"It is unwise to enact legislation that has a fiscal impact or changes tax policy until we have reached an agreement on projected revenues and appropriated expenditures as part of a state budget," she wrote in her second veto of the session.

Rep. Ted Vogt, R-Tucson, who was carrying the legislation, said the veto caught him by surprise.

"I'm afraid it got caught up in the budget," he said.

Gubernatorial press aide Matthew Benson said that if lawmakers thought Brewer was bluffing about wanting a budget first, "they're all on notice at this point." Ooooh, "you are all on notice!"

Brewer saw the measure as having an impact on the state general fund. And that, she wrote, made it unacceptable – especially with no clear plan on how to fund her other priorities.

Vogt said the effect would have been minimal, perhaps just $1 million a year. But Benson said any plan that potentially taps state revenues, for whatever reason, has to be part of a bigger budget solution.

Closed-door negotiations since January have failed to produce a significant breakthrough on the budget.

For an explanation of what is in HB 2647 see Downtown developers, 'crony capitalism' and the Arizona legislature's Rio Nuevo Board.

A few years ago the Arizona legislature passed a bill outlawing this very kind of incentive in the Phoenix metropolitan area between cities that were engaged in "tax incentive wars" to attract business. In July 2007, "Arizona [enacted] A.R.S. Sec. 42-6210, which bars municipalities in the Phoenix metropolitan region from providing tax breaks or incentives to retail development. The penalty for cities that violate the law is a reduction in the revenue that they receive from the state equal to the amount of the incentive." Bans on Tax Abatements – Arizona | The New Rules Project.

Like Terri Proud's bill, the "Downtown Tucson Initiative" is also special legislation. Update: Downtown developers, 'crony capitalism' and the Arizona legislature's Rio Nuevo Board:

Since the Rio Nuevo Board is the only improvement district in Arizona directly under the control of the Arizona legislature, this is special legislation that favors the Arizona legislature's political subdivision, the Rio Nuevo Board, over similarly situated governmental entities,for which the benefits inure to the Board's favored developers in Dowtown Tucson over other similarly situated developers and business owners. The Arizona legislature and favored Downtown Tucson developers are engaged in crony capitalism. This presents a colorable claim for a violation of constitutional equal protection.

Brewer's veto is on solid ground. Her signing the forensic audit special legislation is indefensible. It was a political favor to Southern Arizona Tea-Publican legisators.