Phoenix Mayor Launches Bold Attack on School Choice While Opposing AZ Diamondbacks Funding Bill

By Staff Reporter |

Phoenix Mayor Kate Gallego has publicly criticized Arizona’s school choice programs in a bid to persuade Governor Katie Hobbs to oppose a funding bill for the renovation of the Arizona Diamondbacks’ Chase Field. In a letter addressed to Hobbs, Gallego voiced her objections to HB2704, which seeks to allocate sales and employee income taxes to finance the facility renovation.

The bill has already received bipartisan support in the House and is now pending approval from the Senate. Gallego labeled the legislation a “boondoggle,” arguing that it fails to accurately reflect its financial implications. She pointed out that the Joint Legislative Budget Committee (JLBC) model underestimated taxpayer costs by nearly 50%, comparing it to the Empowerment Scholarship Account (ESA) Program.

“Like the state’s ESA Program and the controversial Alt-Fuels bill, this legislation lacks a cap to protect taxpayers,” stated Gallego. She urged Hobbs to collaborate with the Legislature to impose stricter guidelines on taxpayer expenditures.

The JLBC’s projections estimate a $471 million cost over 30 years, excluding input from the Department of Revenue, while Phoenix’s own estimates suggest a figure closer to $825 million. Gallego predicted that accounting for lost revenue and inflation could push the cost to over $1 billion in public funds.

Earlier last month, Gallego publicly condemned HB2704, expressing concern over the diversion of significant funds that would have otherwise supported the city’s budget. She emphasized that two-thirds of Phoenix’s general fund is directed towards public safety, advocating for a focus on essential services rather than subsidies for affluent entities.

Jenny Clark, a recently removed member of the Arizona State Board of Education and supporter of the ESA Program, suggested that Mayor Gallego should redirect her focus toward improving the city’s own budget instead of criticizing school choice funding. Clark also raised questions regarding Gallego’s past education at an out-of-state private school.

Phoenix recently faced a $39 million budget deficit, prompting the city to pass the financial burden onto taxpayers. This situation follows an $85 million annual loss due to changes in state tax policies, including the removal of the residential rental tax and a flat income tax implementation.

On Tuesday, Gallego and the Phoenix City Council voted to raise the sales tax rate from 2.3 percent to 2.8 percent, a measure intended to prevent cuts to city programs and services. Only Councilman Jim Waring opposed the increase. This tax hike has already resulted in a lawsuit from the Goldwater Institute, which claims the move is unconstitutional, following a similar suit last year over tax breaks for developers.