What happened: Arizona Governor Katie Hobbs (D) June 20 vetoed a Republican-backed bill that would allow Maricopa County voters to consider extending the county’s half-cent transportation sales tax. Hobbs wanted lawmakers to pass a different bill that she said would create jobs and grow the economy. The GOP-version reduced the amount of money spent on public transit. Avondale Mayor Kenn Weise, Mesa Mayor John Giles (R), and Phoenix Mayor Kate Gallego (D) spoke out against the GOP measure.
Why it matters: Proposition 400, first approved by voters in 1985 and then again in 2004, is set to expire at the end of 2025. The half-cent transportation sales tax helps fund road and freeway projects and public transportation in Maricopa County. In 2022 alone, it generated nearly $650 million in revenue.
What’s next: The Arizona State Legislature will continue negotiating the issue and may introduce a new version of the bill when they return from a break July 31.
Further Reading:
- Arizona Gov. Katie Hobbs vetoes bill to extend Prop. 400 transit tax (azcentral.com)
- Governor Katie Hobbs Vetoes Partisan SB 1246, Encourages Legislature to Send Bipartisan Compromise | Office of the Arizona Governor (azgovernor.gov)
Written by Casey Wible, Economics Intern- ARTBA