Hear Me Out: Is Proposition 302 good or bad for Arizona?

PHOENIX - The nation faces tough questions in tough times, and there are people on both sides of every issue.

Arizona is no different. But who’s saying what about the issues important to Arizonans?

Each Sunday, ABC15.com debuts an Arizona issue - along with two opposing sides on the topic.

Don’t worry, you always have the opportunity to make comments at the bottom of the page. Yeah, your opinion matters too.

This week we're tackling the debate over controversial Proposition 302.

The measure would repeal Arizona's early childhood services program, "First Things First", moving its $324 million into the state's general fund.

Supporters of Prop 302 say the recession is still affecting Arizona's economy, leaving the state with a massive budget deficit that would be greatly helped by the program's $324 million.

Opponents contend the "First Things First" program is vital to Valley families, who should not be penalized for Arizona legislators' overspending.

So, is Proposition 302 good or bad for Arizona?

Click "next" to read the first of two positions, "Prop 302 needed in economic crisis"

PROP 302 NEEDED IN ECONOMIC CRISIS: By Kevin McCarthy, President, Arizona Tax Research Association

The Arizona Tax Research Association (ATRA), Arizona’s only statewide taxpayer organization, supports Proposition 302.

As all Arizonans are now painfully aware, the recession has had a devastating effect on the Arizona economy.

Almost 300,000 Arizonans have lost jobs in recent years. The recession has also created historic budget challenges at the state level. Since the high-water mark in Fiscal Year 2007, state general fund revenues have fallen $3.6 billion or 37%. The state’s current structural budget deficit is $1.7 billion.

In struggling to close state budget deficits over the last three years, state policymakers have faced a myriad of difficult decisions. Taxes have been increased over $1.2 billion. On-going state spending has been reduced $1.1 billion. However, despite the progress that has been made, Arizona will continue to be faced with major budget deficits for the foreseeable future.

If there is any silver lining with budget deficits, it is that policymakers are forced to re-prioritize spending within available revenues.

However, in Arizona, those budget decisions are complicated by a series of voter initiatives that handcuffed lawmaker’s budget authority. Those initiatives have mandated expenditures for education, low income health care, early childhood programs, and land conservation. Each has played a role in increasing the deficit.

Proposition 302 would redirect 80 cents of our current tobacco taxes that are earmarked for the Early Childhood Development and Health fund to the state general fund to be appropriated for health and human services for children.

If passed, Proposition 302 will plug a $324 million hole in the current state budget. Failure will result in further reductions in the programs that receive state support: K-12 schools, universities, low income health care, and prison spending. Or worse, taxpayers will once again be looked upon to close this chronic budget deficit.

When “First Things First” passed in 2006, ATRA correctly pointed out that the huge tobacco tax increase would actually have a negative impact on overall tobacco tax collections. The proponents of “First Things First” were remarkably unconcerned in the fact that their idea to increase tobacco taxes would strip the state general fund of millions in annual tobacco taxes.

Unlike previous tobacco tax increases that recognized that cigarette sales decrease as taxes are increased, the drafters on “First Things First” failed to hold harmless the existing recipients of tobacco tax dollars. The result has been a $59 million dollar decrease in available funds at the state level for primarily low income health care programs.

Finally, the prolonged recession that has gripped Arizona has impacted every segment of our society.

The financial decisions that have been made in both the public and private sectors have had major impacts on many Arizonans. In the public sector, policymakers have been forced to prioritize spending toward the most critical programs.

It is ironic and sad that at a time when lawmakers are forced to consider eliminating health care for 310,000 Arizonans and 47,000 children on KidsCare, that “First Things First” has the money to waste on a half-billion dollar marketing campaign. In good times, such a waste of taxpayer funds would be inappropriate.

In our current crisis, it is offensive and provides further evidence that you should vote YES on Proposition 302.

Do you agree with this opinion? Add a comment below to sound off.

Click "next" to read the second position, "Early childhood systems work: Vote no on 302"

EARLY CHILDHOOD SYSTEMS WORK, VOTE NO ON 302: By Nadine Mathas Basha, Co-chair of No on 302 and member of the First Things First Board of Directors

Arizona voters have never wavered when it comes to supporting education and health care for kids in their earliest years. In 2006, voters said a loud “yes” to First Things First, a comprehensive statewide system of services for children age 5 and under. That system – funded entirely by a new tax on tobacco – engages children and parents even before birth, to make sure our kids start school ready to succeed.

Nor did voters stop there. In May, in the midst of the worst economic crisis since World War II, 64 percent of Arizona said yes to Proposition 100.

The message behind that penny sales tax increase devoted to education and health care could not be more clear: Arizonans, many of whom believe government should be as small possible, nonetheless absolutely want to protect core services for children, especially the education system and vital health and human services efforts.

Of course, sometimes even the most obvious message gets missed. Especially by our Legislature, busy as ever spending the state deeply into debt.

It took the Legislature more than a year to refer Prop 100 to the ballot. Having misjudged the people’s will, now the Legislature is ready to simply overturn what voters said loud and clear. They’ve created Proposition 302, a measure that, if it passes, will gut First Things First and hand its accumulated funds and revenue stream over to – you guessed it – legislators themselves.

To me a “no” vote on Prop 302 is a must. Only in the Legislature does it makes sense to break a system that’s working on behalf of young children and hand its resources over to the same legislative leaders who have broken not only programs but the state’s bank.

And make no mistake, First Things First is working, allowing children and their families to benefit from 90 percent of the funds that come into the system, leaving on only 10 percent to be used for administration costs. Consider these results from just the past three years:

More than 30,000 young kids have received improved child care; more than 2 million pounds of food and tens of thousands of diapers have been distributed across Arizona; more than 300,000 children have benefited from doctor outreach programs and nearly 3,000 kids are receiving treatment from specialized therapists. This is only the beginning: This new revenue stream has created a $300 million fund designated by voters to improving childhood in our state, and making sure that our youngest kids begin school ready, with an equal chance to learn and succeed.

Parents also benefit from programs and services funded by First Things First. Arizona Parent Kits are given to the family of each newborn when they are discharged from the hospital. Because more than half of our state’s children age 5 and younger live in homes where all adults work, childcare is a necessity.

Through the Quality First program, parents can trust that quality learning opportunities are made available to their families including: safe and healthy learning environments staffed with highly educated teachers, low child to staff ratios – so students get the attention and support they need.

All that will end immediately if Prop 302 passes. So will the positives for Arizonans who don’t have kids: Just as pediatric research shows that children’s earliest years are critical for brain growth and socialization, studies also show that superior early childhood development is likely to lead to more success in school and a lower likelihood of learning problems and criminal behavior in adulthood.

A clear, scientifically-driven focus on early childhood development works, not only for the children who benefit, but for the adults around them.

Perhaps that explains why voters were clear in 2006, just as they were in 2010: In Arizona, even in hard times, children come first. Not politics. This makes sense economically, because we know that children who are successful early on create the educated workforce our state so badly needs, and it makes sense scientifically, because we know from research that 90 percent of a child’s brain development occurs before age 3.

The only people who don’t seem to get this reside in the Arizona Legislature.

Despite abundant clarity from the voters, the Legislature has put Prop 302 on the ballot to destroy First Things First. Their goal? To seize that $300 million set aside for kids and plunk it into the General Fund, for use according to their whims. Additionally, a “yes” vote on 302 will allow the Legislature to terminate the entire system, and siphon off all future revenues for the General Fund.

It’s as if, having overdrawing their own account, now legislators want to dip into the kids’ education fund – which might be a sitcom plot if it wasn’t so true and so sad. They’ve even gone so far as to turn down First Things First’s offer of $300 million interest-free loan, in