What Democratic majorities would look like in the Arizona Legislature: Cutting costs

(The Center Square) – If victorious in November, Arizona Democrats aim to institute laws they say would cut costs for Arizonans. Republicans say these measures would only hurt Arizona’s economy and lead to higher taxes.

Only two seats away from having a Democratic majority in Arizona's legislative chambers for the first time in six decades, the Democratic Caucus has established a plan they say would allow them to hit the ground running in 2025 should they take control of the Legislature. This story is part of an ongoing series of what a Democratic trifecta would look like for Arizona taxpayers.

“In the event that we flip, we want to be ready to govern,” Sen. Christine Marsh, D-Phoenix, told The Center Square.

Paid Family & Medical Leave

One of the Democratic Caucus’ priorities is to ensure that all Arizonans receive paid medical and family leave. This legislation would reflect a bill that ran in this year’s legislative session, but was held in committee.

Senate Bill 1632, proposed by Sen. Juan Mendez, D-Tempe, said that beginning in 2027, family and medical leave benefits could be paid to an individual who meets one of the requirements outlined in the bill: caring for a new child whether through birth, adoption or foster care, caring for a family member with a “serious health condition,” pregnant or recovering from childbirth, injury, impairment or a physical or mental condition requiring hospitalization, exigency leave due to a family member being on active duty or if someone is in need of safe leave.

Additionally, the bill states that the individual would be allowed 26 weeks of paid leave. However, an individual cannot be paid more than $1,000 a week. The commission would determine an amount to be paid by employers and employees at a 1:1 ratio dependent on how much is paid from the Family and Medical Leave Insurance Fund that would be established.

Republicans claim that this would hurt the economy, and an economic analysis of the proposition supports that thought.

According to a report by the Common Sense Institute of Arizona, over 70 bills that were killed in this last legislative session would have been detrimental to the economy, including SB 1632.

The report compares Arizona to Colorado, who has had similar laws proposed, but they have actually been enacted. According to the report, Colorado has had this law since 2019 and it has cost the economy there over $3 billion.

“If you look at the largest economic impacts, they are not necessarily tax increases,” said Katie Ratlief, executive director of the Common Sense Institute, “they are imposing incredibly burdensome regulations upon employers about how they manage their employees.”

Affordable Childcare

Another point of importance for Democrats is creating more affordable childcare.

“We have some goals to lower costs for Arizonans by making childcare more affordable, providing access to reliable childcare for folks,” Marsh said.

Examples of these efforts include SB 1389, sponsored by Sen. Lela Alston, D-Phoenix, that would remove the current waiting list for government-funded childcare. In the current statute, it states that those at 100% of the state poverty level will be given preference moving up by 10% brackets no matter the time spent on the waiting list. Democrats want to appropriate enough money from the state general fund to eradicate the waiting list.

The total number of funds had yet to be determined when the bill was killed by Republicans, who maintain control of Arizona's Legislative chambers.

Sen. John Kavanagh, R-Fountain Hills, said that Democratic policies like these would raise taxes for Arizonans.

“You would lose the check and balance [without] having at least one Republican going against the more extreme left-wing measures,” Kavanagh said.

Sen. Priya Sundareshan, campaign chair for the Democratic Caucus’ efforts to take the majority, said it is the Republican majority that “left us in a budget hole,” and that Democrats are interested in building revenue for the state. She also said that it is unlikely Democrats would raise taxes soon after winning the majority.

“Raising taxes is difficult, so I don’t think Democrats winning the majority automatically means we’re going to raise taxes,” Sundareshan said. “In this state you need at least a two-thirds majority in order to raise taxes. So, unless we can get a two-thirds majority or we can get some Republican participation, their claim that we’re going to immediately raise taxes rings pretty hollow.”

Lowering Prescription Drug Costs

The final measure the Democrats have listed as a caucus to cut costs is lowering the costs of prescription drugs.

Sen. Eva Burch, D-Mesa, sponsored two bills this legislative session, both of which were blocked. One, Senate Bill 1532, states that anyone who purchases a prescription drug that is subject to a “maximum fair price” determined by the federal government, cannot be required to pay more than that price.

The other, SB 1533, would establish the Prescription Drug Affordability Division within the Department of Insurance and Financial Institutions. This division would study and promote consumer cost saving mechanisms for prescription drugs, approve or deny prescription drug price increases – a requirement for pharmacies established in the bill – and ensure that the state-regulated health insurance premium rates accurately reflect the actual cost of the prescription drug.

House Bill 2558, proposed by Rep. Judy Schwiebert, D-Phoenix, would have added more restraints to the price paid for prescription drugs, but was also held in committee.

The bill states that “a manufacturer or wholesale distributor may not engage in price gouging in the sale of an essential off-patent or generic drug.” It goes on to define price gouging as an “unconscionable increase in the price of a prescription drug,” an essential off-patent or generic drug as prescription drug that meets a multitude of criteria.

These would be that all exclusive marketing rights have expired, it either appears on the model list of essential medicines adopted by the World Health Organization or has been designated by the Secretary of the U.S. Department of Health and Human Services as an essential medicine, it is actively manufactured and marketed for sale in the U.S. by three or fewer manufacturers and is available for sale in Arizona.

Schwiebert’s blocked bill is listed in the Common Sense Institute’s report as a bill that would hurt the economy. According to the report, while saving consumer’s money, it might lead to a shortage of necessary medicine by placing a price control on essential drugs.

Economical Concerns

According to Kavanagh, there are multiple legislative actions intended to cut costs for Arizonans that would actually hurt the economy and raise taxes exponentially. He is most concerned about there being bills that would expand Medicaid availability, provide medical benefits to non-U.S. citizens and require government health programs to pay for gender transition surgeries.

Ratlief said the Democratic initiatives appear to be an earnest attempt at addressing issues, but the government regulations affect the state's economic engine.

“It can be this over-regulation that kills innovation, kills jobs and makes job-creators want to take those jobs elsewhere,” Ratlief said. “They can be incredibly well-meaning and very well-intentioned, but if they are not balanced with allowing job-creators to thrive and to grow the economy, they can have a very detrimental effect very quickly.”