Pub. 10 2020 Issue 2

5 PUB. 10 2020 ISSUE 2 of the session saw an efficient legislature on track to adjourn earlier than usual. And then came March. With the novel coronavirus or COVID-19, sweeping the nation and world in March, it was only a matter of time until it affect- ed policymaking at the Arizona Capitol. While at first legislators tried to continue their work with galleries and hearing rooms closed to the public, it soon became appar - ent the Legislature would have to suspend its activities. After Governor Ducey issued a Declaration of Emergency on March 11th, the Legislature suspended the session indef- initely on March 23rd. The Governor then issued his “Stay Home, Stay Healthy, Stay Connected” order on March 30th. Before the Legislature suspended session, a few key pieces of legislation were enacted. The Legislature’s only constitutional respon - sibility for each session is to pass a budget, and it soon became clear the best option was to pass a “skinny budget,” or a budget that only funds baseline growth with no discre- tionary spending. Despite some grumbling from legislators, passing this baseline budget was the most politically expedient way to ensure the state has an enacted budget for the fiscal year 2021 that reflects a changing revenue environment. As part of the limited budget package, the Legislature also passed a bill expanding state unemployment benefits and appropriated $50 million to the Governor to use for COVID-19 relief. In April, the legislature’s Finance Advisory Committee (FAC) met remotely to discuss the state’s fiscal position in light of the pandemic and the associated shutdown. In January, Ari- zona had a $1 billion budget surplus. By April, the state was looking at a budget shortfall of about $1 billion. This dramatic change in Ari- zona’s financial fortunes promises to affect both short- and long-term policymaking. Not only does the shortfall end many members’ dreams of funding increases, but it also hamstrings the legislature’s ability to appropriate more pandemic relief dollars. Due to this, economic relief measures will most likely focus on regu- latory reform and other efforts to make it easier for businesses to get back to work. The uncertain future of COVID-19 and the need to campaign for August and November elections has complicated the legislature’s reconvene. As of early May, the tentative plan was to adjourn the 2020 regular session and come back in June or July for a special session dedicated to pandemic relief mea- sures. However, frustration by some legisla- tors who want to continue regular work has complicated this plan and has resulted in the Senate and House operating independently of each other. What happens next depends on whether the two chambers and the governor can find agreement and, of course, what transpires with the pandemic. w We work alongside your clients’ investment advisor The Advisors’ Trust Company ® Zia Trust, Inc. 602.633.7999 www.ziatrust.com 11811 N. Tatum Blvd. Suite 1062, Phoenix, AZ 85028 Zia Trust is Growing! • We have opened an office in Sun City West to cater to the West Valley. • We have added a new and experiened trust officer to the staff, Josh Moore. • Contact us to find out about the independent trust services we can offer for your clients. • We serve on accounts of all sizes. • Complimentary appointments are available. Kathy Moriarity , Vice President & Seinor Trust Officer Dave Long , Vice President & Senior Trust Officer Josh Moore , Trust Officer 13912 W. Stardust Blvd. Suite 110, Sun City West, AZ 85375 John Fetherston is an Associate Director at Veritus.