What’s the difference between a tax increase and a fee hike? According to Arizona Gov. Doug Ducey’s administration, there’s a big distinction.
On Monday, Ducey and Republican state lawmakers unveiled their budget plan to give teachers a raise and increase school funding. He has declared they can do it with “no tax increase.”
But the governor’s budget does rely on revenue from a new, roughly $18 car-registration fee that all motorists will have to pay starting next year.
The fee is expected to free up hundreds of millions of dollars over the next few years —money the state will use to balance its budget so Ducey can pay for his plan to give schools more money and teachers a 20 percent raise by 2020.