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TED: COMING UP NEXT ON "ARIZONA HORIZON," DETAILS ON PRESIDENT BIDEN'S EXECUTIVE ORDER LIMITING THE NUMBER OF MIGRANTS SEEKING ASYLUM IN THE U.S. >>> ALSO TONIGHT, FIRST LADY JILL BIDEN WILL BE IN ARIZONA THIS WEEKEND TO RALLY OLDER ARIZONANS TO VOTE AND LOOK AT THE IMPACT OF VOTERS AGE 50 PLUS.

>>> AND SCHOOL DISTRICT OWES MILLIONS OF DOLLARS AFTER PROPERTY OWNERS FIND THEY'VE BEEN OVERTAXED.

THOSE STORIES AND MORE NEXT ON "ARIZONA HORIZON."

.

TED: GOOD EVENING, AND WELCOME TO "ARIZONA HORIZON."

I'M TED SIMONS.

THE U.S. JUSTICE DEPARTMENT TODAY RELEASED A LONG ANTICIPATED REPORT ON THE CITY OF PHOENIX AND THE CITY'S POLICE DEPARTMENT.

THE 126-PAGE REPORT FOLLOWS A NEARLY THREE-YEAR INVESTIGATION AND FOUND THAT PHOENIX PD AND THE CITY ACTED IN WAYS THAT DEPRIVE PEOPLE OF THE RIGHTS UNDER THE U.S. CONSTITUTION AND FEDERAL LAW.

SPECIFICALLY THE REPORT FOUND THAT PHOENIX POLICE OFFICERS DISCRIMINATED AGAINST BLACK, HISPANIC AND NATIVE AMERICAN PEOPLE IN THE ENFORCEMENT OF LAWS AND FOUND THAT OFFICER USE EXCESSIVE FORCE INCLUDING UNJUSTIFIED DEADLY FORCE THAT THE CITY AND THE POLICE DEPARTMENT VIOLATE THE RIGHTS IN THOSE ENGAGED IN PROTECTED SPEECH AND EXPRESSION, AND HOMELESS PEOPLE AND THOSE WITH BEHAVIORAL HEALTH ISSUES ARE UNLAWFULLY ARRESTED AND DETAINED AND BELONGINGS ARE UNLAWFULLY DISPOSED OF.

IN RESPONSE TO THE REPORT, PHOENIX CITY MANAGER JEFF BARTON FOUND THE CITY IS, QUOTE, TAKING ALL ALLEGATIONS SERIOUSLY AND PLANNING TO REVIEW THE LENGTHY REPORT WITH AN OPEN MIND.

PHOENIX MAYOR KATE GALLEGO SAID THE PHOENIX COUNCIL WILL MEET IN EXECUTIVE SESSION TO RECEIVE LEGAL ADVICE AND DISCUSS NEXT STEPS.

>>> OTHER HEADLINES, U.S. SUPREME COURT UNANIMOUSLY UPHELD ACCESS TO THE WIDELY AVAILABLE ABORTION PILL MIFEPRISTONE, JUSTICES REJECTED THE FDA'S APPROVAL OF THE PILL.

THE COURT HELD THAT THE PLAINTIFFS DIDN'T SHOW SUFFERING OR INJURIES IN THE FDA'S APPROVAL OF MIFEPRISTONE AND THUS LACKED STANDING TO CHALLENGE THE FDA'S ACTIONS.

>>> ONE MORE HEADLINE, SIX HOMES DESTROYED BY A BRUSHFIRE BURNING SOUTHEAST OF WICKENBURG.

EVACUATIONS IN THE AREA ARE IN PLACE.

U.S. 60 CLOSED IN BOTH DIRECTIONS SOUTH OF WICKENBURG.

THE ROSE FIRE WAS FIRST REPORTED YESTERDAY AFTERNOON, AND BURNED MORE THAN 150 ACRES AND AT LAST COUNT ZERO PER SENT CONTAINED.

>>> PRESIDENT BIDEN ISSUED EXECUTIVE ORDER THAT PUTS LIMITS ON THE NUMBER OF ASYLUM-SEEKERS ALLOWED TO CROSS THE U.S.-MEXICO BORDER ONCE THE DAILY NUMBER HITS A CERTAIN LEVEL.

DELIA SALVATIERRA EXPLAINS WHAT THE ORDER DOES AND DOESN'T DO.

THIS COULD BE COMPLICATED.

THANKS FOR SHOWING UP AND DOING THIS FOR US, APPRECIATE IT.

>> THANK YOU.

TED: WHAT EXACTLY DOES THE ORDER MANDATE?

>> THIS ORDER IS A PROCLAMATION UNDER THE IMMIGRATION NATIONALITY ACT THAT PERMITS THE PRESIDENT TO HAVE WIDE, SWEEPING POWER TO EXCLUDE INDIVIDUALS, NONCITIZENS, WHO POSE A THREAT TO THE UNITED STATES, AND THE PRESIDENT HAS DETERMINED THAT THE LARGE NUMBER OF PEOPLE COMING ACROSS THE BORDER IS A THREAT TO THE UNITED STATES BECAUSE BORDER PATROL DOES NOT HAVE THE RESOURCES TO PROCESS THESE INDIVIDUALS IN A TIMELY AND LAWFUL WAY.

TED: FOCUSES ON THOSE WITHOUT PRIOR AUTHORIZATION, CORRECT?

>> CORRECT.

IT IS ONLY NONCITIZENS WHO DO NOT HAVE AUTHORITY TO ENTER.

SO IN ESSENCE, INDIVIDUALS WHO PRESENT THEMSELVES AT A PORT OF ENTRY ALONG THE SOUTHERN BORDER SEEKING ASYLUM.

TED: TURNS THEM AWAY MEANS WHAT?

WHAT HAPPENS TO THESE PEOPLE?

>> THERE IS A NEGOTIATION WITH MEXICO THAT THESE INDIVIDUALS CAN RETURN AND REMAIN IN MEXICO.

TED: AND THAT'S ABOUT IT, HUH?

>> THAT'S ABOUT IT, BUT INDIVIDUALS WHO ARE INTERCEPTED TRYING TO ENTER THE UNITED STATES ILLEGALLY RATHER THAN JUST PRESENT THEMSELVES AT A PORT OF ENTRY, THERE'S A NEW DOCKET FOR THEM, AND THAT'S AN EXPEDITED REMOVAL PROCEEDING, WHICH IS AN EXPULSION, A QUICKER EXPULSION PROCESS FROM THE UNITED STATES AND THAT PROCESS OBVIOUSLY REQUIRES A TREMENDOUS NUMBER OF JUDGES ADJUDICATING THESE CASES AT THE BORDER, REMOTELY, APPARENTLY, AND CBP OFFICERS.

THEY CAN BE REMOVED IMMEDIATELY.

TED: AND AGAIN, THE LIMIT HITS AT A CERTAIN POINT OVER A CERTAIN PERIOD OF TIME, CORRECT?

>> CORRECT.

SO SINCE BEFORE THE OBAMA ADMINISTRATION, THERE HAVE BEEN OVER 5,000 TO 7,000 DAILY ATTEMPTS TO ENTER THE UNITED STATES SEEKING ASYLUM.

THIS PROCLAMATION BY PRESIDENT BIDEN LIMITS THE NUMBERS BY NO MORE THAN 2500 IN A SEVEN CALENDAR-DAY PERIOD.

THEREFORE, IF MORE THAN 2500 INDIVIDUALS ATTEMPT TO ENTER THE SOUTHERN BORDER IN A SEVEN CALENDAR PERIOD TIME FRAME, THEN THE PROCLAMATION GOES INTO EFFECT.

TED: BUT IS IT 2500 TOTAL OR IS IT LIKE A SEVEN DAY DAILY AVERAGE.

>> DAILY AVERAGE.

TED: THAT'S STILL A LOT OF FOLKS.

>> ABSOLUTELY.

ABSOLUTELY IT IS, BUT UNDER THE BIDEN ADMINISTRATION, THEY WERE TEMPERED IN THIS PROCLAMATION BY LAWSUITS, PRIMARILY THOSE LAWSUITS THAT PRESIDENT TRUMP LOST WHILE IN OFFICE USING THE SAME AUTHORITY TO BAN NONCITIZENS DURING THE COVID-19 PANDEMIC.

TED: AS FAR AS THE NUMBER IS CONCERNED, THOUGH, AT THE PORT OF ENTRY, ARE THEY IN CONTACT WITH EACH OTHER?

WE'RE GETTING CLOSE, WE HIT THE LIMIT?

HOW DOES IT WORK?

>> THE ADMINISTRATION CALLS ON THE HOMELAND SECURITY SECRETARY TO DETERMINE HOW MANY INDIVIDUALS ARE PROCESSED AND COME TO THE PORT OF ENTRY ON ANY GIVEN DAY.

SO THERE IS NOW VERY MUCH SO, EFFECTIVE IMMEDIATELY, AT 12:01 A.M. JUNE 5, THE BORDER HAS TO REPORT, I'M ASSUMING HOURLY ON THE NUMBERS THAT ARE COMING ACROSS.

TED: OKAY.

>> THAT MEANS THAT THAT GOES INTO EFFECT BECAUSE THERE NEVER HAS BEEN PROBABLY IN THE LAST 10, 12 YEARS, ANY NUMBER LOWER THAN 4,000 IN A DAY.

TED: WOW.

>> THIS PROCLAMATION IN EFFECT WILL REMAIN IN EFFECT.

TED: OKAY, AND ALREADY THERE IS A COURT CHALLENGE ON THIS.

WE KNEW IT WAS GOING TO HAPPEN.

DIDN'T TAKE LONG.

>> ABSOLUTELY.

VERY SIMILAR TO THE LITIGATION AGAINST PRESIDENT TRUMP DURING THE COVID-19 PANDEMIC, WHERE THE TRUMP ADMINISTRATION LOST, HERE AGAIN, I THINK THAT THE BIDEN ADMINISTRATION ATTEMPTS TO MAKE THE PROCLAMATION NARROWLY TAILORED SO THAT IT'S TIED TO THE WELL-BEING OF THE INTERESTS OF THE COUNTRY, BUT AGAIN THEY WERE SUED BY THE ACLU, I BELIEVE, TWO DAYS AGO, AND IT RAISES SIMILAR CHALLENGES THAT THE PRESIDENT DOES NOT HAVE AUTHORITY UNDER THE INA TO EXCLUDE CERTAIN NONCITIZENS UNDER THE STATUTE.

AGAIN, I THINK THE PROCLAMATION MAKES VERY CLEAR THAT WHO MUST ACT IS CONGRESS.

TED: WELL, AND THE ADMINISTRATION MADE IT VERY CLEAR THAT THE REASON THEY'RE DOING THIS IS BECAUSE CONGRESS, WHICH HAD A FRAMEWORK AND READY TO GO, AND THEN IT WAS SCUTTLED FOR POLITICAL REASONS.

COMPARE THAT FRAMEWORK AND WHAT WE KNOW OF THE FRAMEWORK WITH WHAT THIS IS.

>> IF CONGRESS HAD ACTED, IT WOULD HAVE WITHSTOOD LEGAL CHALLENGES.

TED: INTERESTING.

>> MUCH MORE SO THAN A PROCLAMATION, EXECUTIVE HEARD THAT IS SIMILARLY A TEMPORARY PATCH.

IN CONGRESS, THE LAW WOULD HAVE THE BIPARTISAN BILL THAT WAS STRUCK WAS MUCH MORE FOCUSED ON ENFORCEMENT.

IT HAD MUCH MORE PERMANENT ABILITY TO EXCLUDE INDIVIDUALS SEEKING ASYLUM OR ENTERING THE COUNTRY ILLEGALLY AND PROVIDED GREATER FUNDING FOR BORDER OFFICIALS, IMMIGRATION JUDGES AND TO CREATE A SYSTEM THAT DEALT WITH THOSE WHO HAVE ALREADY BEEN LET IN, AND DEAL WITH THE BACKLOG THAT THAT IS CREATING, AND I'M DISAPPOINTED THAT CONGRESS DID NOT ACT LEAVING THE EXECUTIVE BRANCH TO MAKE PATCHWORK EXECUTIVE ORDERS THAT WILL NOT WITHSTAND SCRUTINY IN COURT.

TED: I WAS GOING TO SAY PROBABLY IT WOULD HAVE IF THE LEGISLATURE WENT THROUGH WITH THE LEGISLATIVE ASPECT OF IT.

HOW BIG A SHIFT IS THIS, THE EXECUTIVE ORDER, IN IMMIGRATION POLICY?

>> IT IS HUGE WHEN YOU LOOK AT ASYLUM LAW, RIGHT?

OUR BORDERS, OUR SHORES HAVE ALWAYS BEEN IN THE UNITED STATES, A PLACE OF REFUGE FOR PEOPLE WHO LEGITIMATELY SEEK PERSECUTION.

HOWEVER, IN RECENT YEARS DUE TO HOW THE WESTERN HEMISPHERE HAS DEALT WITH TRAGEDY, WARS, HUNGER, FAMINE, MORE AND MORE PEOPLE ARE COMING TO OUR SHORES, AND THEY'RE NOT COMING TO SEEK ASYLUM.

THEY'RE COMING FOR ECONOMIC REASONS, BUT OUR LAWS, OUR ASYLUM LAWS DO NOT EMBRACE ECONOMIC REASONS, THEY EMBRACE PERSECUTION BY GOVERNMENTS AND PEOPLE THAT GOVERNMENTS IN FOREIGN COUNTRIES CAN'T CONTROL.

SO IT DOES LIMIT IT, BUT THERE ARE PROVISIONS HERE THAT IF SOMEONE IS A VICTIM OF TRAFFICKING, IF SOMEONE DOES HAVE A LEGITIMATE ASYLUM CLAIM, IT DOES GIVE BORDER PATROL THE OPPORTUNITY TO INVESTIGATE THOSE CLAIMS TO VET THEM MORE EASILY AND ALLOW THOSE INDIVIDUALS TO COME ON A CASE-BY-CASE BASIS, BUT NOT TO PROCESS THEM WHOLEHEARTEDLY AS THEY'VE BEEN DOING FOR THE LAST COUPLE OF YEARS ALLOWING PEOPLE TO COME IN AND NOT HAVING THE RESOURCES AND PROCESSING AND LETTING THEM COME IN.

THAT HAS STOPPED WITH THIS PROCLAMATION.

TED: DELIA SALVATIERRA OF SALVATIERRA LAW GROUP, VERY INTERESTING STUFF.

APPRECIATE YOUR INSIGHT.

>> THANK YOU FOR HAVING ME.

.

TED: OLDER ARIZONANS ACCOUNTED FOR 55% OF ALL ARIZONA VOTERS IN THE LAST PRESIDENTIAL ELECTION AND THOSE 50+ MADE UP 64% OF THE STATE'S VOTERS IN THE 2022 MIDTERMS.

OLDER ARIZONANS ARE EXPECTED TO HAVE AN OUTSIZED IMPACT IN THIS YEAR'S ELECTIONS, AND FOR MORE ON THE IMPACT, WE WELCOME WES GULLETT PARTNER AT NEXUS STRATEGY GROUP.

>> THANKS FOR COMING IN.

YOU NEEDED AN OLD GUY TO TALK ABOUT THIS.

TED: YOU FIT THE BILL.

WE BOTH FIT THE BILL.

WITH THAT IN MIND, HOW MUCH OF AN IMPACT DO WE HAVE?

>> A HUGE IMPACT BECAUSE WE GO TO THE POLLS.

WE VOTE.

OLDER PEOPLE VOTE.

55+, THEY TURN OUT 100%.

TED: TRADITIONALLY VERY HIGH, YOU SEE THE SAME THING GOING THIS TIME AROUND?

>> YES, YEP.

AND HISTORICALLY THAT'S BEEN THE CASE.

TED: YES.

>> SO IT'S NOT GOING TO BE DIFFERENT.

TED: TRADITIONALLY MORE CONSERVATIVE AS WELL, IS THAT WHAT WE'RE SEEING OUT THERE?

>> TYPICALLY.

TYPICALLY.

IN THIS NEW POLL THAT AARP BROUGHT OUT, IT WAS INTERESTING TO ME BECAUSE PROTECTING SOCIAL SECURITY WAS THE NUMBER ONE ISSUE ON THAT POLL, AND THAT'S TYPICALLY A DEMOCRATIC ISSUE.

TED: AND PROTECTING MEDICARE AS WELL, WAS ALSO VERY IMPORTANT.

ALSO THINGS LIKE HELPING FOLKS STAY IN THEIR HOMES AS THEY AGE, IT'S A BIG DEAL?

>> RIGHT.

AND SO THOSE ARE CORE DEMOCRATIC ISSUES.

SO, YOU KNOW, BUT OLDER PEOPLE TEND TO BE MORE CONSERVATIVE.

THEY'RE CONCERNED ABOUT THEIR RETIREMENT.

THEY'RE CONCERNED ABOUT THEIR 401(k)s, AND YOU KNOW, AS WE'VE TRANSITIONED FROM A PENSION-SUPPORTED ELDERLY POPULATION TO NOW MORE SOCIAL SECURITY SUPPORTED, I THINK THAT IT WILL LEVEL OUT.

THE POLL WAS A LITTLE SKEWED, I THINK, TO THE RIGHT.

TED: WELL, I THINK THAT TONY FABRIZIO, THE FORMER POLLSTER FOR TRUMP.

STILL, SOME OF THE THINGS, HELP FOR CAREGIVERS, COST OF HOUSING, COST OF UTILITIES.

THESE ARE TOP OF MIND, AND I WONDER, AGAIN, IS THERE A CLEAR DECLINEIATION, DEMOCRAT/REPUBLICAN ON THESE?

>> YEAH, I THINK, IF YOU LOOK AT THE UNDERLYING NUMBERS ABOUT WHAT BIDEN AND HIS APPROVAL RATING, I THINK HE'S UNFAIRLY BLAMED FOR THE CONCERN THIS PEOPLE HAVE ABOUT INFLATION, AND I THINK IT'S GOING TO BE DAY BY DAY, TOO.

AS INFLATION COMES UNDER CONTROL AND PEOPLE REGISTER THAT IN THEIR MINDS, YOU'LL SEE UPTICK FOR THE PRESIDENT.

>> I WAS GOING TO SAY ALL POLLS ARE SNAPSHOTS ANYWAYS.

THIS IS A PARTICULAR SNAPSHOT FROM A PARTICULAR ANGLE.

50+, THE IMMIGRATION ISSUE, BORDER SECURITY, A TOP ISSUE.

>> TYPICALLY, TED, WHEN WE SEE IMMIGRATION AT THAT KIND OF LEVEL, IT'S GOING TO BE A REPUBLICAN CYCLE.

SO AND I'VE BEEN CONCERNED ABOUT THAT ALL ALONG IN TERMS OF THAT NUMBER BEING SO HIGH, I THINK THAT'S WHY YOUR LAST SEGMENT WAS TALKING ABOUT WHAT BIDEN IS TRYING TO DO ON THE BORDER.

TED: RIGHT, RIGHT, AND AGAIN INFLATION AND THREATS TO DEMOCRACY, THOSE ARE UP THERE AS WELL, THREATS TO DEMOCRACY.

THREATS TO DEMOCRACY?

THAT WAS NEVER AN ISSUE IN THE PAST.

IT IS NOW.

THAT WOULD SEEM TO SKEW MORE TOWARD THE LEFT.

>> IF YOU LOOK AT THE UNDERLYING NUMBERS IN THE POLL, THAT'S WHO WAS CONCERNED.

TED: YES, YES.

>> FRANKLY, THIS IS THE MOST IMPORTANT ELECTION OF MY LIFETIME BECAUSE I'M SCARED ABOUT OUR DEMOCRACY.

I THINK THAT WHEN YOU CHALLENGE THE UNDERPINNING OF WHAT WE DO, AND YOU MAKE BASELESS ATTACKS ON THE WAY THAT VOTES ARE COUNTED, AND PEOPLE WORRY ABOUT THAT, AND THAT NUMBER COMES UP, THAT'S A SCARY THING.

THAT'S A VERY SCARY THING, AND OUR DEMOCRACY IS FRAGILE, ALL DEMOCRACIES ARE.

TED: INDEED, AND VOTERS IN THIS AGE GROUP, I DON'T THINK THIS IS A SURPRISE, 68% THINK THE COUNTRY IS HEADED IN THE WRONG DIRECTION.

>> I KNOW.

TED: YOU KNOW WHAT?

YOU COULD PROBABLY FIND 50+ PEOPLE IN GENERATIONS PAST, EVERYONE IS COMPLAINING ABOUT THIS, BUT 68%?

>> IT'S TRAGIC, YOU KNOW, THAT OUR COUNTRY, WE'VE COME TO THIS PLACE, AND ESPECIALLY IN ARIZONA, THE LAND OF MILK AND HONEY, YOU KNOW.

THIS IS THE PROMISE LAND, AND PEOPLE STILL THINK WE'RE ON THE WRONG TRACK, I DON'T KNOW.

TED: AND ONE LAST THING ABOUT THIS, A FORM LEAD POLLSTER FOR DONALD TRUMP PUT THIS UP FOR AARP, KEEP THAT IN MIND, BUT THE 50+, TRUMP'S LEAD IS TEN POINTS OVER BIDEN IN THIS THING?

>> IT IS, BUT WHEN YOU LOOK AT IT, TRUMP'S NOT OVER 50, IF IT WAS 10 POINTS IT WAS 55-45, THERE WOULD BE ENORMOUS CONCERN ABOUT THAT, BUT WHEN YOU -- AND ALSO YOU LOOK AT 78% OF DEMOCRATS WERE VOTING FOR TRUMP.

I THINK WHAT HAPPENS IS THE THIRD-PARTY CANDIDATE IN THIS CASE, JOHN KENNEDY -- OR ROBERT KENNEDY IS GOING TO COME DOWN.

THAT NUMBER ALWAYS COMES DOWN.

TED: THEY HAVE HIM AT 11%.

>> YES, EXACTLY.

AT THE END OF THE DAY WHEN VOTES ARE COUNTED, IT WILL BE MORE LIKE FIVE.

SO PEOPLE WANT TO PLAY WITH THAT, THEY WANT TO FLIRT WITH IT, BUT THEY ALSO WANT TO COME HOME TO SAFETY AND WHAT THEY KNOW, AND I THINK THAT PEOPLE WILL COME HOME TO PRESIDENT BIDEN, I REALLY DO, BUT IT'S GOING TO TAKE A LOT OF WORK.

TED: LAST QUESTION, RUBEN GALLEGO, THREE-POINT LEAD OVER KARI LAKE AMONG THE 50+ CROWD.

LAKE HAS A ONE-POINT LEAD OVER GALLEGO, OTHER WAY AROUND FOR ALL VOTERS.

50+ CROWD WITH LAKE, WOMEN VASTLY SUPPORT GALLEGO MORE THAN LAKE.

50+ CROWD.

>> AND I THINK THAT'S GOING TO BE VERY CLOSE.

IT'S GOING TO BE A VERY CLOSE SENATORIAL ELECTION, AND I THINK THAT IT'S GOING TO BE VERY INTERESTING.

THE MOST IMPORTANT THING IS THAT EVERYBODY NEEDS TO VOTE.

THIS IS THE ONE TIME YOU GOT TO GO VOTE.

YOUR "ARIZONA HORIZON" CROWD VOTE, EXCELLENT VOTERS.

THEY NEED TO TELL THEIR NEIGHBORS TOO, AND ESPECIALLY THEIR CHILDREN AND GRANDCHILDREN.

TED: ALL RIGHT, I THINK YOU JUST DID, WES, GOOD TO HAVE YOU HERE.

THANK YOU FOR JOINING US, APPRECIATE IT.

>> GOOD TO BE WITH YOU.

>> THANKS.

.

TED: SCHOOL DISTRICTS ACROSS MARICOPA COUNTY HAVE BEEN ORDERED TO PAY BACK NEARLY $150 MILLION IN FUNDS AFTER THE ARIZONA COURT OF APPEALS UPHELD A RULING THE COUNTY OVERTAXED SOME PROPERTY OWNERS FROM 2015 TO 2021.

SCOTT THOMPSON IS THE ASSISTANT SUPERINTENDENT FOR BUSINESS AND SUPPORT SERVICES AT MESA PUBLIC SCHOOLS.

GOOD TO HAVE YOU HERE, THANK YOU FOR JOINING US.

>> THANK YOU.

TED: $150 MILLION.

THIS IS BASICALLY FOLKS GOT OVERTAXED, WENT TO THE COURT AND THE COURT SAID YOU'RE RIGHT.

>> YEAH.

TED: HOW DOES THAT AFFECT YOUR DISTRICT?

>> IT'S IMPORTANT TO TALK ABOUT THE HISTORY AND THE BACKGROUND OF HOW SCHOOLS GET FUNDED.

REAL QUICKLY I'LL TRY TO BREAK THAT DOWN.

WE HAVE AN EQUALIZATION SYSTEM HERE IN ARIZONA, SO WE AS A SCHOOL DISTRICT GET THE SAME AMOUNT PER KID NO MATTER WHERE THEY GO TO SCHOOL.

SCOTTSDALE, MESA OR BUCKEYE, WE GET FUNDED THE SAME WAY.

WHAT'S UNIQUE ABOUT THE SYSTEM IS IT'S CALLED EQUALIZATION AND EQUALIZATION IS A WAY TO TRY TO HAVE THE TAX RATE FOR THE SCHOOL TAXES BE EXACTLY THE SAME ACROSS THE STATE, AND THE WAY THEY DO THAT IS TO BASICALLY TAKE THE EVALUATION THAT THE TAXES ARE BASED ON AND FIGURE OUT WHETHER YOU'RE A HIGH-WEALTH OR LOW-WEALTH DISTRICT WHEN IT COMES TO PROPERTY.

IF YOU'RE A HIGH-WEALTH PROPERTY DISTRICT LIKE SCOTTSDALE, YOU PRETTY MUCH GENERATE TAX LOCALLY OFF THE LOCAL PROPERTY TAX, WHEREAS IN MESA WE'RE LIKE A 60/40.

60% COMES FROM THE STATE AND 40% FROM LOCAL TAXPAYERS AND THE LOCAL TAXPAYER IS THE PART THAT'S GETTING AFFECTED BY THIS.

TED: AND THEY'RE GETTING AFFECTED BECAUSE RECLASSIFICATION, CORRECT?

>> YES.

TED: THESE FOLKS HAD A RESIDENTIAL HOME BUT CHANGED IT OVER TO A RENTAL OR THESE KINDS OF THINGS, AND THAT DIDN'T MATTER AS FAR AS THE ASSESSOR IS CONCERNED AND SAID IT SHOULD MATTER.

THE COUNTY SAYS IT DOESN'T MATTER BECAUSE IT'S ALL RESIDENTIAL?

IS THAT WHAT'S GOING ON HERE?

>> THAT WAS THE COUNTY'S ARGUMENT, APPARENTLY THEY LOST.

THE SYSTEM IS BASED ON THAT EVALUATION, SO NOW TO PAY BACK THOSE INDIVIDUALS WHO WERE WRONGED OR GOT THE WRONG EVALUATION, ALL THE PROPERTY TAXING ENTITIES LIKE A SCHOOL DISTRICT COULD BE A CITY, A FIRE DISTRICT, COULD BE A COMMUNITY COLLEGE ARE ALL GOING TO BE BASICALLY ASKED TO RECOUP THESE DOLLARS AND DISTRIBUTE THOSE TO THE ONES WHO ARE WRONGFULLY TAXED.

TED: HOW ARE THEY GOING TO RECOUP THE DOLLARS?

>> WE HAVE TO RAISE TAXES ON SOME LEVEL.

TED: IS THERE ANY WAY TO GO TO THE LEGISLATURE AND GET THE FORMULA YOU WERE TALKING ABOUT EARLIER.

MONKEY AROUND WITH THAT A LITTLE BIT?

>> THEY ARE.

INTERESTINGLY, THEY'RE IN THE MIDDLE OF THE BUDGET RIGHT NOW AND THAT IS PART OF THE CONSIDERATION.

THE STATE AID OR STATE PORTION IS RECALCULATED FOR THE PORTION IT HAD TO CONTRIBUTE BECAUSE OF THE CALCULATION, SO THAT'S PART OF IT, BUT STILL DOESN'T COVER THE WHOLE THING, SO YOU STILL HAVE LOCAL AREA TAX THAT HAS TO BE COLLECTED SOMEHOW.

TED: BONDS?

OVERRIDES?

ARE THEY AT PLAY?

>> THEY ARE AT PLAY.

PART OF THE EVALUATION.

HOW MUCH TAX WAS GENERATED?

SO THAT CATEGORY WILL BE GENERATING THE ADDITIONAL MONEY THAT NEEDS TO GO TO THE SETTLEMENT.

TED: WE SHOULD MENTION THAT THE RECLASSIFICATION ISSUE WHICH THESE HOME OWNERS BROUGHT UP AND THE TAX COURT AGREED, THEY OVERCHARGED, THEY OVERTAXED YOU FOR THIS, THAT HAS BEEN SETTLED BY THE STATE.

THAT'S NOT THE ISSUE ANYMORE.

>> THAT'S NOT THE ISSUE.

WHAT'S AT ISSUE IS THIS IMPACT TO LIKE A DISTRICT AND THE FACT THAT WE'RE BASICALLY CHARGED WITH COLLECTING THESE DOLLARS WHEN WE REALLY HAD NOTHING -- WE DON'T SET THE EVALUATION, WE DIDN'T HAVE ANYTHING TO DO WITH EVALUATING WHAT PROPERTY WAS, AND YET JUST BECAUSE WE'RE A TAXING ENTITY, WE'RE GOING TO BE CHARGED WITH KIND OF COLLECTING THE SETTLEMENT, AND THAT'S KIND OF FRUSTRATING, AND I'M HOPING TO GET THE WORD OUT THERE THAT THIS INCREASE IN YOUR TAXES MAY LOOK LIKE A SCHOOL BOARD SETTING A HIGHER TAX OR MAYBE A TOWN OR CITY OR EVEN A COMMUNITY COLLEGE, BUT WE'RE NOT INCREASING TAXES BECAUSE OF THE ACTIONS OF OUR BOARDS OR DIFFERENT SPENDING INSIDE THE SCHOOLS.

IT'S JUST LITERALLY THIS JUDGMENT HAS TO BE, THE MONEY HAS TO BE GENERATED SOMEWHERE, AND IT'S GOING TO COME THROUGH THE ENTITIES WHO QUOTE, UNQUOTE BENEFITTED FROM THE HIGHER EVALUATION THAT'S LOWER.

TED: IS THERE A TIME FRAME TO RECOUP THE FUNDS?

>> I THINK THAT'S STILL BEING DISCUSSED.

THERE ARE OPPORTUNITIES, AS YOU MENTIONED.

THE STATE BUDGET IS CONSIDERING SOME OPTIONS, MAYBE SOME BONDING AND OTHER WAYS TO DRAW OUT OVERTIME, BECAUSE SOME AREAS MIGHT BE MUCH MORE, IT'S GOING TO BE UNIQUE TO EACH SCHOOL DISTRICT.

TED: I WAS GOING TO SAY, COMPARE IF YOU CAN, MESA SCHOOL DISTRICT TO OTHER SCHOOL DISTRICTS AROUND.

WHO'S GETTING HIT THE HARDEST AND WHO'S NOT FEELING IT ALL THAT MUCH?

>> YOU KNOW -- TED: I PUT YOU IN A TOUGH POSITION.

>> EVERYBODY FEELS IT'S TOUGH IN THEIR OWN BACKYARD.

FOR MESA, THE LIABILITY IS CRAZY IS $11 MILLION.

THE STATE AID MIGHT OFFSET ABOUT HALF OF THAT, BUT I GOT TO RAISE TAXES TO COLLECT ABOUT $5 MILLION IN MESA, SO THAT COULD BE ANYWHERE FROM 20 TO 30-CENT INCREASE TO TAX RATE.

THAT HAS NOTHING TO DO WITH ANYTHING WE'RE DOING.

TED: AGAIN, GOING FORWARD, THE BUMP THAT YOU HAD IS NOT THERE ANYMORE, THAT'S PART OF BUDGETING PROCESS NOW AS WELL.

AT LEAST YOU HAVE THAT FIGURED OUT.

>> THAT'S CORRECT.

AT LEAST WE DON'T HAVE THE UNCERTAINTY OF IS THIS GOING TO HAPPEN AGAIN.

TED: HOW MUCH OF A SURPRISE WAS THIS?

>> QUITE FRANKLY FOR ME, IT WAS A BIG SURPRISE, FOR MOST OF MY COLLEAGUES, WE WEREN'T PAYING ATTENTION.

THIS APPARENTLY HAS BEEN GOING ON FOR LIKE NINE YEARS, AND REALLY DIDN'T HAVE OUR EYES ON IT, AND IT FEELS LIKE EVERYBODY IN THE COURT RULED AND THERE WAS APPEAL AND THE APPEAL WAS LOST AND BOOM, IT WAS ON OUR BACK DOORSTEP.

TED: OKAY, SO GOING FORWARD FROM HERE, EVERYTHING IS IN PLACE TO KEEP SOMETHING LIKE THIS FROM HAPPENING AGAIN, BUT YOU STILL GOT THE BACK GUARD, STILL GOT TO GET THAT MONEY.

>> YEAH, AND KEEP IN MIND, THIS IS JUST MARICOPA COUNTY, BECAUSE IT WAS THAT ASSESSOR WHO MADE THESE DECISIONS AND THEN WAS SUED.

THIS DOESN'T AFFECT EVERYBODY IN THE STATE, BUT IT DOES AFFECT A LOT OF FOLKS BECAUSE OBVIOUSLY IT'S MARICOPA COUNTY.

TED: INDEED, SCOTT THOMPSON, MESA PUBLIC SCHOOLS.

GOOD INFORMATION.

GOOD TO HAVE YOU HERE.

THANK YOU FOR JOINING US.

>> THANK YOU SO MUCH.

TED: THAT IS IT FOR NOW.

I'M TED SIMONS.

THANK YOU SO MUCH FOR JOINING US.

HAVE YOU GREAT EVENING.