News Summary
Arizona Attorney General Kris Mayes has ruled a $1 million funding for Turf Paradise unconstitutional, siding with plaintiffs who argue it violates the state’s Gift Clause. The decision could lead to the funds being deemed illegal, impacting the Arizona Department of Racing. As public funds previously allocated for horse racing face scrutiny, the ruling may prompt a reexamination of how taxpayer money is distributed to private entities.
Phoenix – Arizona Attorney General Kris Mayes has officially declared a $1 million legislative appropriation aimed at improving Turf Paradise unconstitutional, siding with plaintiffs who argue that the funding violates the Gift Clause of the Arizona Constitution. This determination is expected to lead to Maricopa County Superior Court Judge Michael Herrod declaring the funding illegal, thus preventing the Arizona Department of Racing from distributing those funds.
The attorney general’s recent agreement comes after challenges by plaintiffs Howard Mechanic and Ralph Hess, who argue that the appropriation does not serve a legitimate public purpose. Under the Arizona Gift Clause, the state is prohibited from donating or granting public funds to private entities without demonstrable taxpayer benefits. This situation is particularly significant as Turf Paradise is a privately owned racetrack, creating complications that do not arise with public facilities, such as the Prescott Frontier Days rodeo, which previously faced similar legal scrutiny.
In exchange for Mayes’ agreement regarding Turf Paradise, Mechanic and Hess have agreed to drop their objections to another $1 million funding for the Arizona Thoroughbred Breeders Association. This points to a broader trend in Arizona, where public funds have previously been allocated for horse racing, including $10 million each in 2021 and 2022, though the amounts have been decreasing for the current and upcoming years, with specified appropriations of $6 million in 2023 and $5 million in 2024.
Both Mechanic and Hess contend that Turf Paradise and the Arizona Thoroughbred Breeders Association are not obligated to perform any public functions in exchange for the public funds. They argue that the appropriation lacks necessary state control or oversight over how the funds are utilized. This argument reflects ongoing concerns regarding the use of taxpayer money for private ventures that may not provide direct benefits to the public.
State Senator John Kavanagh, who supported the Turf Paradise appropriation, posits that the funding serves a public purpose through potential economic benefits from tourism and recreational amenities. However, Danny Adelman from the Arizona Center for Law in the Public Interest disagrees, emphasizing that without legally required benefits from the recipients, public appropriations lack justification.
Mayes, in addressing the issue, has highlighted the critical need for lawmakers to approach the Gift Clause with caution to avoid future litigation and to ensure prudent use of taxpayer money. Previously, Mayes has criticized certain state expenditures, including those made by the Arizona Commerce Authority for corporate initiatives, which he argued also violated the Gift Clause.
As this legal situation unfolds, the implications extend beyond Turf Paradise’s funding. The agreement and the subsequent expected ruling could potentially lead to a reevaluation of how Arizona allocates public funds to private entities. Mechanic hopes that this development will curtail similar appropriations in the future, signaling a shift in accountability and oversight regarding state expenditures.
The ongoing legal discourse surrounding the utilization of public funds sheds light on broader issues of state financial management and the necessity for transparency and accountability, particularly when dealing with private enterprises that may not have direct obligations to serve the public good.
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Additional Resources
- Tucson.com: Arizona Attorney General Declares Funding Unconstitutional
- AZCentral: Lawsuit Seeks to Stop Arizona Horse Racing Funding
- Mohave Daily News: Mayes Calls Horse Racing Funding Unconstitutional
- Wikipedia: Arizona Constitution
- AZCentral: Legal Challenge to Arizona Horse Racing Budget
Author: STAFF HERE PHOENIX WRITER
PHOENIX STAFF WRITER The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
