No budget passed following division on portions of funding
YUMA, Ariz. (KYMA, KECY) - The speaker and president of the Arizona House of Representatives have decided to adjourn until June 10th. That means, no budget has been passed.
Everything is up in the air with the $12.8 billion budget being drafted up by state congressional members.
Republican lawmakers are divided on portions of it including a state tax cut that would eliminate the state’s graduated income tax rate and replace it with a flat 2.5%. Thats a cut of more than 25% of all income tax revenue.
Supporters like Republican Rep. Tim Dunn tells us, “the state income flat tax is a historical chance for arizona tax revision to keep the tax payers money in their pocket. I am working on a hold harmless provision to make sure this does not have an impact on the City of Yuma."
On the other hand, Rep. Charlene Fernandez - a Democrat - says it could hurt the whole state.
“Our mayor in Yuma, is against the flat tax, San Luis [and] Somerton [also]. I mean it could be the difference of, you know, our city's doing well or having to file for bankruptcy. So I am fighting against that flat tax. This is not the time to do it.“
If the budget is passed, Yuma County will receive funds for a few projects. Money will be made available to expand the highway that takes you to YPG and funding for Yuma Union High School District. The county is also set to get funds for the fairground relocation.
Stay with News 11, CBS 13, and KYMA.com for more developments on the budget and proposed flat tax rate.
