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Proposition 204 Not as Advertised

October 30, 2014

Phoenix, AZ—If Proposition 204 passes this November, Arizonans will be subjected to the second-highest sales tax in the country, according to a policy memo released by the Goldwater Institute Tuesday. Prop 204, which is estimated to raise $1 billion a year in new tax money, is primarily promoted by supporters as a new revenue source for education, yet the proposition dedicates a significant amount of tax revenues to special-interest projects. The new tax guarantees $100 million annually to highway contractors, and tax revenue raised in excess of $1 billion will further fund special-interest projects. Nearly half of the almost $1 million raised to pass Prop 204 has come from highway contractors.

According to today’s policy memo by economist Byron Schlomach and Education Director Jonathan Butcher, none of the tax revenue generated by Prop 204 is required to go to the classroom, and there is no money dedicated to teachers, despite claims made by the Quality Education and Jobs Committee, the group supporting Prop 204.  A mere 10 percent of Prop 204 funds received by schools will be tied to any outcome.

Goldwater Institute policy analysts Byron Schlomach and Jonathan Butcher will be available throughout this election cycle to present opposing viewpoints to advocates of Prop 204.

To schedule an interview with a Goldwater Institute policy analyst, please call or email Communications Director Michael Kelley at (602) 633-8965 or



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