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Amanda Rusing, Eric Emmert, Tom Dorn, Heather Wilkey

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Amanda Rusing, Eric Emmert, Tom Dorn, Heather Wilkey

3MACE Cash ExpressArizona Assn. for Economic Development American Coalition for Clean Coal ElectricityArizona DiamondbacksAmerican Medical ResponseArizona Petroleum Marketers Association Arizona Physical Therapy AssociationArizona Planning AssociationArizona Western Coal CompanyArizona Wine Growers AssociationB.J. Alan Company

Bulletproof Securities, Inc.CignaCore – Cold PlasmaDream Green, Inc.East Valley Chambers of Commerce AllianceEducational Options, Inc.HDR Engineering, Inc. John C. Lincoln Health NetworkMcLane CompanyPeabody EnergyPhysical Therapist Provider NetworkYuma County

Amanda Rusing, Eric Emmert, Tom Dorn, Heather Wilkey

Republicans – 40 Republicans – 36 Democrats – 20 Democrats – 24

Republicans – 21 Republicans – 17 Democrats – 9 Democrats – 13

Republican Leadership Republican Leadership

Democrat Leadership Democrat Leadership

Freshmen Freshmen

President Andy BiggsMajority Leader John McComishMajority Whip Adam Driggs

Minority Leader Leah Landrum-TaylorAsst. Min. Leader Linda LopezMinority Whip Anna Tovar

2

Speaker Andy Tobin Speaker Pro Tem J.D. Mesnard Majority Leader David Gowan Majority Whip Rick Gray

Minority Leader Chad Campbell Asst. Min. Leader Ruben Gallego Minority Whip Bruce Wheeler

25

Source: OSPB

Cash on Hand $697 million

Revenues $8.4 billion

Expenditures $8.8 billion

Balance $304 million

Structural Balance ($446) million HIGHLIGHTSHIGHLIGHTS

- Includes Medicaid expansion with safeguards Est. $130 million- Establishes the School Performance Fund- Includes university parity- Increases K-12 by 3.5%- Increases university and community college by 4.1% and .4%- Includes ACA funding- Includes data center incentives

Source: JLBC

Jobs Package – 2011Establishes the Arizona Commerce Authority High wage employment tax creditNew R&D tax credit Establishes the Arizona Competes FundRecalculates the business personal property tax Business property tax phase downCapital gains tax elimination for business investment Single sales factor corporate income tax Corporate income tax phase down Job Training Fund reform

Corp Tax Allocation; Sales Factor - 2012

Jobs 2.0 - 2012Net Operating Loss Carry Forward Personal Property Tax Re-Indexing Bonus Depreciation Capital Gains Reduction (10% - 25%)Expands Renewable Energy Tax Incentive Premium Tax Credit Cap RemovalJob Training Study Committee

Number of Days 151

Bills Introduced 1158

Bills Signed 282

Bills Vetoed 26

General Effective Date Sept. 13, 2013

HB 2456 – Revenue Allocation Districts•Allows a municipality to establish a RAD

•Allows the RAD to bond against the increase in municipal valuation revenue

•Allows the RAD to bond against the increase in TPT

•Includes taxpayer safeguards

HB 2264 – Job Incentives; Tax Relief Act

• Export oriented manufacturing • Reclassifies commercial property to a Class 1 to a Class 6• Rural and urban capital investment ($2M & $25M)• Rural and urban qualified job creation (125 & 15 FTE)• ACA certification• 10-year program• Taxpayer safeguards• Income tax reduction to offset federal payroll tax increase

HB 2488 HB 2213 SB 1435

BUDGET•Establishes state and municipal retail sales and use tax exemptions•Exemption can be taken over a 10-year period •Sustainable centers can take the exemption over 20-years•ACA administered •Newly constructed data centers - $50,000,000 urban / $25,000,000 rural during a 5-year period  •Existing data centers get future equipment purchase exemption if they made an investment of $250,000,000 over the past 6 years•Data centers cannot generate electricity for resale purposes

• Increase AHCCCS from 100% to 133% of FPL

• Assesses hospitals

• Eases the “hidden healthcare tax”

• Includes “circuit breaker”

• Draws down federal funds in a 10:1 match

• Included in the budget

SINGLE PAYMENTPayment through Arizona Dept. of

Revenue (DOR)Prompt payment from State

SINGLE AUDITAudits conducted by DORMunicipalities may do audits DOR lead on multijurisdictional audits

CONTRACTINGPrime contracting – status quoTrades - point of sale

TPT Reform

UI Implementation

Ballot Reform

Transportation Funding

Electric Deregulation

NGS

Water