Special Session Update
The legislature was called into a fourth special session last week to address the budget deficit by reversing the governor's previous vetoes. Despite their failure to get the votes last week, the proposed legislation is now being passed. This legislation will further cut the budgets of the Departments of Education and Economic Security with more harm to Arizona kids and families. The bills also allow certain state agencies to spend special funds in place of general fund dollars that were cut during the previous special session and allow some agencies to assess or increase fees that will be used in place of general fund dollars.
In education, $144 million will be cut to soft capital for public schools. "Soft capital" includes technology, textbooks, library resources, instructional aides, furniture and equipment. DES will take a $113.2 million in lump sum cuts (plus a payment deferral of $42 million). This will continue cuts begun last fiscal year as well as add new cuts. These cuts:
- Cut child protective services to help children who have been abused or neglected;
- Cut hunger, emergency services and domestic violence programs;
- Continue to turn away qualified children from child care assistance;
- Reduce TANF Cash Assistance to poor mothers and children by 20%;
- Cut independent living supports for the elderly;
- Reduce home and community-based services for individuals with developmental disabilities;
- Eliminate all general fund support for the Healthy Families prevention program;
- Eliminate the Homeless Youth Intervention program;
- Cut Arizona Families FIRST (a substance abuse treatment program for families involved in the CPS system).
CAA continues to urge state legislators to work together to come up with revenue solutions to avoid further erosion to services and damage to Arizona.
Brenda Aguirre
Children's Action Alliance
"Sun Must Set on 400%"
The special provisions that have enabled the payday lending industry to flourish in Arizona are scheduled to “sunset” (expire) on July 1, 2010. If this happens, the industry will be forced to stop charging 400% interest on small loans. In states that ended 400% loans, responsible small dollar lending increased. Payday lenders will be able to do business like every other legitimate lender in this state under the Arizona small loan act capping interest rates on small loans at 36% APR. If their inefficient business model won’t support 36% interest rates, they will be forced to cease issuing payday loans in Arizona. However, this multi-billion dollar business is not going to give up and go away without a fight. A strong campaign is underway to lobby the legislature to keep this industry alive in Arizona. They are investing millions of dollars in their campaign, hiring well-known and respected lobbyists such as former Attorney General Grant Woods to be their spokespersons.
You will recall that Prop 200 on last November’s ballot proposed elimination of the sunset provision in exchange for so called, reform measures that would have kept the industry in business. The ballot outcome delivered a resounding "NO" on Prop 200, defeating the initiative by a hefty 60-40% vote. Opposition to the proposition was throughout all counties. Despite that fact, the payday lending industry is making a valiant effort to quash the voice of the majority of Arizona citizens by, this time, appealing directly to the legislature.
We urge your opposition to their efforts. We urge you to prepare to advocate with your legislators to oppose the industry’s efforts. We urge you to adopt the slogan "THE SUN MUST SET ON 400%". Remind our legislators that the voters of this state have already given them the clear mandate that payday lending institutions are not wanted in Arizona.
Please visit www.nomoreloansharks.com.
Locate Your Representatives
Register Your Position on a Bill
Did you know that, if you have registered with AZ Legislator, you can log in and formally state your position on a bill - even if you are not able to be there to personally to give testimony? Your position will be noted during the committee hearing.
Go to azleg.gov; Click the link "Request to Speak" in the middle of the page on the right hand side of the page; Enter Username & Password; Select Body (House or Senate) in which the bill will be heard; Enter the bill number (preceded by SB for Senate bill or HB for House bill); Enter your position (with comments, if you wish.)
To register, you must go to the Capitol and visit one of the computer terminals in either the House or Senate. You will be guided through the registration process. The KEY to success in using this system in the future is remembering your User Name and Password. (The system is CAPS sensitive.)