Lawmakers try to sidestep block on Prescott rodeo funds

Republican lawmakers are working to sidestep a court challenge that has kept $15.3 million earmarked for improvements at the rodeo grounds in Prescott locked up for more than two years.
But like the fight in court, the Legislature is wrangling with how to craft a plan to actually get the money to the rodeo despite differing opinions on how to legally do it.
The money included in the state budget that passed in 2023 has been sitting in the state treasurer's bank account since a lawsuit was filed that year alleging that the Legislature violated a provision in the state constitution forbidding the state from making a gift of public money to a private group -- in this case, the non-profit that runs the Prescott Frontier Days rodeo.
Maricopa County Superior Court Judge Scott Blaney heard arguments on the case on March 3 and is expected to rule any day on whether the spending violates the constitution. If he finds the Legislature acted illegally, the money reverts to the state general fund under a provision included in last year's budget.
Riding to the rescue are two lawmakers who represent the Prescott area: Sen. Mark Finchem, R-Prescott, and Rep. Quang Nguyen, R-Prescott Valley, They want to ensure the money gets to the rodeo -- even if the court rules in favor of the two Prescott residents who sued.
But they and lawyers for the House and Senate disagree on just how to legally do that.
Finchem wants to simply redirect the money to the City of Prescott, which owns the rodeo grounds and has a $40 million plan to repair and renovate major parts of the facility that dates to 1913, with the grandstand built in 1933.
His plan passed the Senate on a 17-2 vote last month, garnering two votes from minority Democrats to counter the objections of two Republicans who opposed Senate Bill 1583. That sent the bill to the House for action.
On Monday, the House Appropriations Committee took up the bill, with Finchem imploring the panel to approve it without changes. He noted the Prescott Frontier Days Foundation has spent $250,000 on legal fees.
"What the underlying bill does is, No. 1, would make the case that's currently before the court moot because it would eviscerate the whole argument that you can't give money to a private entity,'' Finchem said. "It would redirect the funds to the city of Prescott for management and improvements of the rodeo grounds themselves.''
But instead, the committee replaced Finchem's language with an amendment crafted by Nguyen.
His plan also sends the money to the city instead of the "nonprofit volunteer organization'' that runs the rodeo. But it only does so only if a court finds the 2023 appropriation that was meant for the Prescott Frontier Days to use to fix up the rodeo grounds was illegal.
Both measures essentially do the same thing, but the details are important, according to Rep. David Livingston, R-Peoria, who chairs the Appropriations Committee."
"On the House side, we believe this is necessary,'' he explained. "We believe this clarifies things. We believe that it allows the court to finish the lawsuit that's in process, and that should happen.''
The original appropriation stems from the 2023 budget negotiations, when the state was flush with cash.
Republicans who lead the House and Senate came up with a plan to allow each lawmaker to dole out between $20 million and $30 million each to projects of their choice.
House and Senate Democrats generally pooled their cash to put into schools and other programs. Some GOP lawmakers put their money into a pot to be returned to taxpayers with children.
But many others, including Nguyen, spent their money on projects in their districts. He worked with Rep. Selina Bliss to earmark the $15.3 million to jump start the renovations at the rodeo grounds. And he still believes it was legal to send it to a non-profit.
"When I was fighting for this, and along with my seat mate, Selena Bliss, we met with every single representative and every single senator, and we all had the agreement that this was in no way a violation of the gift clause,'' Nguyen said during the bill's Monday hearing. "And so I'm always perplexed to why this this money is in court.''
He noted that the Legislature routinely ensures that money goes to non-profits for projects like a recent appropriation to a group to build apartments for homeless veterans
Prescott Mayor Phil Goode and two council members who testified for the bill Monday were split on which version to support. But all three noted that the rodeo was a major economic driver that each year draws tens of thousands of people to the area who spend millions of dollars.
And Goode noted that the rodeo grounds are used for many other events.
"This was intended as an important infrastructure project to make significant and important safety improvements in the Prescott rodeo ground,'' Goode said,
"Obviously, the seven days or so that the rodeo occurs every year would significantly benefit from this allocation, but there are many more activities that happen on those grounds,'' he said. "We have the county fair. We have an equine related event called Equifest. We have high school rodeos. We have concerts.''
And he said the grounds need major updating, including water and sewer lines and electrical service, grandstand repairs and renovations and changes to make the area accessible for disabled people.
Council member Cathey Rusing emphasized the huge economic impact the Prescott Frontier Days, known as the "World's Oldest Rodeo,'' has on the city and region. She noted its eight performances over a week are always sold out and draw about 80,000 people from around the state, nation and world.
"This event supports hundreds of jobs, generating $13 million in labor income and $33.5 million in economic impact from goods and services," Rusing said, plus $2.6 million in state and local taxes. "In total, approximately $50 million is generated annually in the economic impact by this one-week event.''
Fixing the rodeo grounds is crucial to maintain that flow of tourism and tax dollars, she said.
For lawmakers, Monday's committee debate on the Prescott funding bill—it passed on a 10-8 vote -- triggered a reexamination of the earmarks used in the 2023 budget process. Members from both parties agreed it was not a good idea.
"We should not be passing bills that mitigate lawsuits, and that's exactly what this would do," said Rep. Nancy Gutierrez, who voted against the budget and giving lawmakers the chance to fund what she called "pet projects.''
"I'm sure my city would love $15 million,'' said the Tucson Democrat. "I would much rather see this money go to feeding children, (developmentally disabled) services."
Rep. Matt Gress, R-Phoenix, echoed that sentiment.
"I don't think that there's much daylight between the House Democrats and House Republicans when it comes to earmarks in this budget,'' Gress said. "I agree that there are statewide initiatives that we should be looking at, and I think that has been the posture of the House in my conversation moving forward."
Livingston agreed—while broadly supporting Prescott's rodeo and the legislative fix.
"I think the economic value of the rodeo to the state of Arizona, and especially Prescott, Prescott Valley, Flagstaff, Sedona, is huge, just remarkably huge,'' he said.
"People from all over the world come to Prescott to go to their rodeo,'' Livingston said. "It's pretty cool,'' he told colleagues with his own suggestion that they attend. "If you have kids, take them they're going to have a great time.''
But Livingston acknowledged that he was not happy with giving each lawmaker money for "direct earmarks.''
"I was against them two years ago and I am against them today,'' he said. And Livingston said he wants such earmarks, whether for individual members or their legislative districts kept out of the budget now being negotiated for the new fiscal year that begins July 1.