Friday’s Final 48: “Sine Die”

BREAKING: Liberty school board recall, Political fallout from the budget, Tempe taxes nonprofits

State 48 News has closely been watching a recall effort in the Liberty Elementary School District targeting board member Kristopher Kenyon after months of unrest from what opponents say is over leadership, finances, and staff morale. Parents and community members submitted signatures to trigger a possible recall election, but those signatures have been contested. The official statement exclusively provided to State 48 from Superintendent Boggs is as follows:

This morning the Arizona Senate will pass its original budget as negotiated with Governor Hobbs with a few minor tweaks. Late last night the House bipartisan $17.6 billion budget was passed, but the GOP-controlled House who initially resisted, insisting on a more conservative version— “caved” according to Freedom Caucus Jake Hoffman(R-LD15) in a blistering rebuke.

Hoffman’s line “beat their chest” was no doubt in reference to Petersen’s statement on the Senate floor that State 48 News covered in detail. ICYMI, take a look:

Arizona Budget: Hoodwinked By Charlatans?

Here are some of the budget items:

• Firefighters: Permanent 15% pay raise

• State Troopers: 5% raise

• Corrections Officers: 4% bonus

• Public Safety: +$78 million (fire suppression, border security grants)

• K‑12 Education: +$280 million, including $183 million for facility repairs

• ESAs: Fully funded, over Democratic opposition

• Higher Education: +$28 million, including $16 million for Promise scholarships

• Health & Disability Services: +$180 million (developmental disability programs, behavioral health, graduate medical education)

• Infrastructure: $54 million for SR‑347, $25 million for I‑10 widening (Citrus to SR‑85), plus $40 million in local projects (totaling $119 million)

• Veterans & Small Business Support: Disabled veterans property tax exemption; small business equipment exemption doubled to $500,000

• Family Tax Break: Adoption expense deduction increased from $5,000 to $10,000

Some conservative critics flagged lack of budget “guardrails” on priorities championed by Governor Hobbs. Conservatives also balked at giving $4.1 million and $1 million for Maricopa and Yuma recorders, without safeguards against local Board of Supervisors controlling the money.

The House dropped its own plan and voted 40–16 to adopt the Senate-Governor compromise—“not my favorite budget,” said Rep. David Livingston(R-LD28), “but shutting down the state would be unacceptable.”

House Speaker Steve Montenegro (R-LD29) acknowledged the fragile unity: Republicans “held the line” on spending, while Democrats secured key priorities. Senator T.J. Shope (R-LD16) praised it as a classic “give-and-take,” and Senate Appropriation Chair Kavanagh (R-LD3) called it “a true bipartisan budget.”

As a reminder, the Arizona Freedom Caucus say they negotiated several conservative “wins¹” with the House majority—but most were discarded once the final budget was sent to the Senate. It wasn’t a failure on their part they claim; it was the result of GOP leadership folding under the pressure of a shutdown and embracing the bipartisan deal instead.

The political fallout over SCR1002 -Photo Radar failure in the House, is still playing out on in the legislature and on social media. It is such a major development that it deserves its own special report later today. Stay tuned for that one.

In Tempe, small‐business advocates slam the proposed $25 licensing fee: A looming business license/registry ordinance in Tempe has drawn sharp criticism from small-business advocates, nonprofits, libertarians—and even some local entrepreneurs—who say the proposal amounts to little more than a hidden tax on homegrown ventures and civic organizations.

Under the plan, effective August 1, 2025, all individuals and entities conducting business in Tempe,including home-based operations and nonprofits, would be required to register during a six-month free period. Beginning January 1, 2026, participants would pay a $25 annual fee and face requirements like license display, annual renewal, random inspections, and public address listings.

State 48 News contacted Senator Lauren Kuby (D‑LD8) about the proposed fee. She responded:

“The proposed $25 license fee is a low-cost way to bridge a troublesome data gap and improve support for Tempe’s businesses and nonprofits. It enables more proactive communication and quicker access to City resources—especially in crises, such as COVID.”

“This represents a disturbing trend in local government overreach,” said Neil A. Schneider, founder and CEO of Go Local Arizona. “They’re calling it a license fee, but it’s really a tax—and like most taxes, it won’t stay at $25.”

A string of leaders have echoed Schneider’s warnings. Joe Forte, Tempe-based entrepreneur and council candidate, stressed the lack of tangible return. “It’s just bad policy. It adds friction, discourages entrepreneurship…and costs money to enforce. If Phoenix, the fifth largest city, doesn’t require a general license, why should Tempe?”

From the tech world, Jason Turnquist, co-founder of Fyresite, called the program “a slippery slope.” “What starts at $25 can easily become $50 or more…this is a gross overstep of government oversight.”

Libertarian voices have also entered the fray. Eric Fowler of the Maricopa County Libertarian Party cautioned that the measure “goes against individual liberty and free‑market principles…forces home‑based entrepreneurs to expose their private addresses…that’s not just invasive—it’s dangerous.”

Supporters, including the Tempe Chamber of Commerce, argue the license would build a comprehensive business database, improve city outreach, and foster economic development . Some small-business owners even back the modest fee: Troy Scoma, owner of Cactus Sports, called $25 “a pretty nominal amount” and suggested the city likely has “a good reason for it.”

The Tempe City Council is scheduled to vote on the ordinance at 6 p.m. on July 1, 2025, at Tempe City Hall.

Here is a press release from the Maricopa Libertarian Party about the measure.

1. Freedom to Move was approved and will move to the ballot. The Yuma and Maricopa Recorders were given funds but without the protection language requested by the Freedom Caucus. One legislator told us the following when we asked if any of these items made it into the final budget, “Not really. They put in some fake stuff that kinda looks like one or two of these asks but actually does nothing.”