1/9/2010 9:59:00 PM CRUNCH TIME: Lawmakers face grueling decisions Monday
The Associated Press
Arizona lawmakers and Boeing representatives gather in front of the Boeing offices in Mesa this past Tuesday as State speaker of the House Kirk Adams announces the Arizona House of Representatives' plan to address the plummeting state economy and the nearly 9 percent unemployment rate. Adams says the proposal announced Tuesday will give businesses the incentives they need to expand, hire new workers or relocate to Arizona.
Local Republican legislators say they will need to increase revenues with Democrats' help to solve the ongoing state budget crisis.
The Arizona Legislature's 2010 session opens Monday with a $1.5 billion deficit still looming in this year's budget year that is halfway over. The next year's budget could need another $3 billion worth of trimming, said House Majority Whip Andy Tobin, R-Paulden.
Tobin and Senate Majority Whip Steve Pierce, R-Prescott, both would support working on an 18-month budget to finish off two years at once.
"It's going to be bloody. There is no money, and people think they're entitled to money we don't have," Pierce said of this year's legislative session.
"We've got to do some severe cutting still in spending," said Rep. Lucy Mason, R-Prescott.
Mason is advocating reverting to 2004 baseline spending by state departments. She said some cutting so far has been unequal.
She worries about what to do with the most pressing bills.
"How do we keep the lights on today? How do we pay the bills that exist now? That's where I'm concerned," Mason said.
Pierce believes the state still can cut more, despite several previous budget-cutting sessions this past year.
While Pierce continues to oppose tax increases, he says the deficits are so deep that the Legislature is going to have to find new revenue sources. He said some examples might include borrowing against future proceeds from the state's tobacco tax and lottery, or legalizing slot machines at horse and dog racetracks.
The latter idea is one that Tobin has been pushing for a long time, and he says he's getting more interest every day.
The Senate is waiting to hear what Republican Gov. Jan Brewer has to say in her State of the State speech Monday, Pierce said. The governor will continue her tradition of post-state of the state speeches across the state the same week, including a stop at a Wednesday luncheon at the Wyndham Garden Prescott Hotel.
The governor also is scheduled to release a proposed 2010-2011 budget Friday.
Tobin says the Legislature really needs to close this year's spending gap at least by the end of February or early March, because the state will run out of money by then.
It won't be easy because half the spending goes to K-12 education and much of that is off-limits by law, Tobin said.
And now, because of the hard economic times, one of every four Arizonans is getting public health care assistance, he added. That number just keeps growing.
"That's why we can't get the budget under control," Tobin said.
Pierce cited another complicating factor.
"The biggest hang-up is, this is going to be an election year and people are already going to be posturing," Pierce added.
Secretary of State and former Arizona Senate president Ken Bennett, R-Prescott, said he doesn't envy the Legislature right now.
"The Legislature and governor are facing the most difficult situation I think anyone has ever faced in the history of this state," Bennett said.
He supports expanding the sales tax base to include services, while simultaneously lowering the sales tax rate, so revenues will be less volatile from year to year. Revenues generally would be higher in bad years and lower in good years, he said.
Tobin said more than 90 percent of Republicans already voted last year to allow citizens to vote on a temporary sales tax increase that Brewer wants.
"The public doesn't know that," he said, adding that not one Democrat voted for the referral.
"If they don't have the courage to vote on cuts, that's fine, but don't stand in the way of the sales tax referral," Tobin said.
"We need some Democrats to help solve the problem," Bennett said. "We're going to have to do something. We're going to start bouncing checks in 60-90 days."
Posted: Monday, January 11, 2010
Article comment by:
Sam
Tax the churches its really nothing but a business and a racket.
Posted: Monday, January 11, 2010
Article comment by:
Sick of ... legislators
I can't believe that Steve Pierce is still not for raising taxes. I don't see any other way out of this. Or I guess he just wants to get rid of kids (no education system) and get rid of poor people. I say let's get rid of him and the others. And yeah, funny how all of a sudden they want the Democrats help now...
By the way be careful criticizing Steve Pierce, he has been known to forward emails to their supervisors...
Posted: Sunday, January 10, 2010
Article comment by:
No name provided
Do your home work- Janet Napolitano- our DEMOCRAT governor for 2 terms led us down this path of irreponsible spending. Then she got another job-oh great- now she's in charge of our security... That's not to say that the current governor is any less responsible for not getting us out of this mess. The truth is - no one wants their sacred cow slaughtered - starting with all day kindergarten (instituted by Napolitano) which is a big reason we are in the mess we're in.
Posted: Sunday, January 10, 2010
Article comment by:
Gary G
Keep doing the same is what got Az in the crap heap,Ranchers produce food they should be last on the increase ,realtor/developers who just build all these too expensive for Prescott homes should carry the big $$ raise,small sales tax .And taxing the churches would also help!
Posted: Sunday, January 10, 2010
Article comment by:
Happy in P V
So while all the checks were being written, did anyone stop to think they didn't have the money in their budget to cover those checks? Why was over spending allowed by the govrnor?? Why aren't the people that over spent being covered on the front page of every newspaper in the state so we, the voters, can stop this during the next election?If an elected offical can't secure the border of her state why would anyone think she could secure the border of a country? People we are paying with our taxes have not earned their pay. People that blatently refuse to do their jobs get fired in the real world. Has anyone stepped up and said they stayed within their budget? If so re-elect them, but if not fire them on election day if not sooner. As American citizens we tend to elect someone then ignor what they do. That is our own falt. Our elected officals have proven they can't be trusted with our tax dollars yet we just accept that and say, " I can't do anything about it". That's a cop out on our part due to lazyness. We better all get involved before we need to learn to speak another language in this country. I'm not talking about Spanish either. Many foriegn countries hold the note on the money our ellected officals borrowed to have a war.Americans are entitled to work hard and we are entitled to force the elected officals to work hard on our behalf as well. Temperary taxes never go away and we know it. In Phoenix they want to sell the state buildings and lease them back. That makes as much sense as buying with a credit card because you have no money in the bank. Eventually a normal person realizes they can't afford a $7.00 cup of latte for very long. Past Presidents must be cringing when they look at what we have done to this country. We all must live within our means,from a first grader with their allowence to the president of this country with their budget. Spend locally to keep the local economy alive. Spend wisely to make your dollars go as far as they can.Eleminate all automatic raises for elected officals and plan for the future of this country.
Posted: Sunday, January 10, 2010
Article comment by:
conservs ruined the country
Stop taxing those who own property and small business, if you want a property tax then tax homes above 400K, tax developers with REAL world impact fees, and a sales tax.
Stop giving the school districts more money as they are squandering what they have now.
Taxing the cattle ranchers is a great idea as most are just waiting to develop the land anyhow.
Posted: Sunday, January 10, 2010
Article comment by:
Throw the Bums Out
We're simply not going to get out of this bind without raising taxes. Period. Our lawmakers have been remiss (what a shocker...)for not coming to this conclusion months ago and setting a proper budget. What do they do in the Legislature all day anyway??
Posted: Sunday, January 10, 2010
Article comment by:
More GOP Garbage
What Bull, the Republican control evrything as the have here in Arizona for over 40 Years!
The ONLY thing Republicans wanta share with Democrats, is some of the Political HEAT for the Mess THEY created & and are dumb-founded to resolve!
Posted: Sunday, January 10, 2010
Article comment by:
Keep doing the same - Keep getting the same...
Gary G - and if you rinse-lather-repeat with your thinking, every generation's tax burden will continue to increase until we break through the 100% tax barrier then the house of cards collapses on itself.
Posted: Sunday, January 10, 2010
Article comment by:
Gary G
Pass a small sales tax and an increase on Property tax, then take a look at development fees small increases all around. Follow this by electing, the best new reps we can get
Posted: Sunday, January 10, 2010
Article comment by:
Too little Too late
Now that the house has burned to the ground the legislature wants to pour water on the ashes??
Posted: Sunday, January 10, 2010
Article comment by:
tom
Just raise the land values for ranchers who pay almost nothing. But get the same services that everyone else pay for. Churches and private schools use public service but do not pay for it. The democrats have been left out of the budget process till now why would they jump in now. The GOP made this problem let them deal with it.
Posted: Sunday, January 10, 2010
Article comment by:
An American
And yet i none of you past or present are apologizing for their mistakes..I was taught and so too are my kids, that when you mess up you stand there with your hat in your hand and apologize, then do every thing you can to fix your mistake..to continually search for something new to tax is a fools remedy, for what will it be next time?...i suggest they stop worrying about the next election and take the tough steps needed to fix the problem....whether we have a huge over paid, over benefited, over insured, under worked government in place tomorrow or not, the sun will still come up....protect our country, then fund other things, if you have any money left. stop spending presumed tax revenue, that is what put you in the position you are in today!!!! I hope your listening, Thank you.
Posted: Sunday, January 10, 2010
Article comment by:
honkybrujo
The Repubs totally ignore the Dems for a year and now they want their help in flushing this state down the toilet. Let the Repubs solve their own mess.
