State House Rejects Budget Bills And Goes Into Recess Until Thursday

The state House of Representatives resumed session Monday morning in hopes of passing the budget onto the Senate. The House defeated a bill opponents argue provided a way for higher income tax payers to avoid a surcharge on Prop 208, the Red for Ed initiative that passed in 2020. Part of that bill was a provision that would have charged the City of Flagstaff over $1.1-million for being over the state’s minimum wage. The state is able to do that, thanks to legislation that was passed into law in 2017, which was meant to discourage cities from enacting minimum wage and benefits laws. The current minimum wage in Arizona is $12.15 an hour, while the minimum wage in Flagstaff is currently $15 an hour and will increase to $15.50 an hour in January. The bill was deadlocked at 30-30, but fails under state law. That provision could return for a vote later in the week, if it is still in the bill. The House also rejected House Bill 2900, which involved a flat tax, which Governor Ducey is championing. The House recessed and will go back into session on Thursday.