Arizona Supreme Court Upholds Prop. 208, Won’t Allow It to Break Education Spending Limit

Arizona’s high court didn’t strike down a voter-approved tax increase on the wealthy, but it’s not going to let the influx of new revenue break a constitutional cap on education spending, either.

The Arizona Supreme Court remanded Fann vs. Invest in Education back to a trial court Thursday morning, saying it’s too early to say whether the ballot initiative is entirely unconstitutional.

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Lawsuit Filed Against Referendums That Attempt to Reverse Arizona’s Historic Tax Cuts

The Arizona Free Enterprise Club filed a lawsuit recently against Invest in Arizona over the organization’s attempt to get three referendums on the Arizona ballot that would reverse Arizona’s recently passed tax cuts. The lawsuit contends that since the tax cuts “provide for, and directly relate to, the generation of revenues that are remitted to the general fund and appropriated to various agencies, departments and instrumentalities of the state government,” they cannot be the subject of a referendum and are unconstitutional.

AFEC President Scot Mussi, who is one of the plaintiffs, said, “All three bills directly provide for the support and maintenance of the state, were key aspects of the state’s budget, and therefore are not referable by Invest in Arizona.”

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