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SUPREME COURT OF ARIZONA En Banc KEN BENNETT, President, Arizona State Senate; FRANKLIN "JAKE" FLAKE, Speaker, Arizona House of Representatives; TIMOTHY BEE, Majority Leader, Arizona State Senate; EDDIE FARNSWORTH, Majority Leader, Arizona House of Representatives, ) ) ) ) ) ) ) ) ) Petitioners, ) ) v. ) ) JANET NAPOLITANO, Governor of ) the State of Arizona; ARIZONA ) DEPARTMENT OF ADMINISTRATION and ) BETSEY BAYLESS, Director; GENERAL ) ACCOUNTING OFFICE of the Arizona ) Department of Administration; ) D. CLARK PARTRIDGE, Arizona State ) Comptroller; ARIZONA DEPARTMENT OF ) AGRICULTURE and JACK PETERSON, ) Director; ARIZONA DEPARTMENT OF ) ECONOMIC SECURITY and WILLIAM ) BELL, Acting Director; ARIZONA ) DEPARTMENT OF HEALTH SERVICES and ) CATHERINE R. EDEN, Director; ) ARIZONA STATE LAND DEPARTMENT and ) MARK WINKELMAN, Commissioner; ) ARIZONA HEALTH CARE COST ) CONTAINMENT SYSTEM and C.J. ) HINDMAN, Acting Director; ARIZONA ) DEPARTMENT OF EDUCATION and TOM ) HORNE, Superintendent; and ) ARIZONA STATE PARKS BOARD, ) ) Respondents. ) ) ___________________________________)

Arizona Supreme Court No. CV-03-0245-SA

O P I N I O N

Special Action JURISDICTION ACCEPTED; RELIEF DENIED _________________________________________________________________

SNELL & WILMER L.L.P. by John J. Bouma Andrew F. Halaby Danielle J. Malody Jeffrey C. Warren Attorneys for Petitioners Office of the Governor by Timothy A. Nelson, General Counsel Nicole D. Davis, Deputy General Counsel and LEWIS AND ROCA LLP by Scott Bales Kimberly A. Demarchi Attorneys for Governor Napolitano TERRY GODDARD, Attorney General by Mary O'Grady, Solicitor General Attorneys for Respondent State Agencies and Related Officials Logan T. Johnston, III Attorneys for AHCCCS and C.J. Hindman Arizona Center for Law in the Public Interest by Timothy M. Hogan Amicus Curiae for School Finance Reform Group

Phoenix

Phoenix

Phoenix

Phoenix

Phoenix Phoenix

_________________________________________________________________ J O N E S, Chief Justice I. INTRODUCTION

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Arizona Law