Gov. Hull proposes large tax decrease

During her first-ever State of the State address before a joint session of the Legislature, Hull gave only a broad blueprint for $210 million in cuts in the vehicle license, personal and corporate income, and property taxes.

The Republican governor also set a starting figure of $125 million to change the state's school capital funding system. The state Supreme Court in 1994 declared the system unconstitutional and has since set a June 30 deadline for the Legislature to fix it.

"Arizona is at a crossroads. This Legislature and this administration must confront a set of issues reaching a crisis point," Hull said. She then spelled out her priorities on public education, health care, the protection of children and tax cuts in a 36-minute speech.

Hull, who took office Sept. 5 after Gov. Fife Symington resigned following a felony fraud conviction, steered clear of specifics and confined herself mainly to how much money she would like the state to spend on her proposals.

Senate President Brenda Burns, R-Glendale, said the governor's speech didn't have a lot of surprises and reiterated the Republican stance that the school capital funding crisis holds a top priority.

"We will not close the budget until we deal with this," Burns said.

She called for quick legislative action on the funding problem, as about 200 Phoenix schoolchildren milled about on the Capitol Mall.

Other proposals Hull discussed included:

• $114 million in increased funding for K-12 education statewide

• $13.2 million to phase in a federally supported program to expand health insurance coverage for poor children

• More than $50 million in prison-related privatization and funding for more beds

• About $15 million divided among land conservation, air quality and clean water issues.

Arizona Democrats treated the governor's address with skepticism, as 1998 gubernatorial candidate Paul Johnson delivered the first-ever Democratic response to the State of the State address.

"From an economic standpoint, Governor Hull's proposed tax cut is not necessary. It's purely a political move," Johnson said during an interview in Tucson Monday evening. "I believe that we should have a tax cut, but we should deal with our educational problem first."

House Minority Leader Art Hamilton, D-Phoenix, said he agreed with some facets of Hull's speech, but thought the address was short on specifics.

"I don't think there was much of a plan in the plan," he said.

Wildcat reporter Michael Jacobs contributed to this report.