P.L.A.N. Update - Disappointing Numbers‏

On Thursday, the legislature heard from the Joint Legislative Budget Committee (JLBC), who described dismal January 2009 state revenue results that are 21.5% below January 2008 revenues. Just as troubling, the January 2008 revenues were 14.4% below January 2007 revenues which adds up to a two-year decline of 39.9%. JLBC cautions that forecasting is difficult due to current economic instability. What we don't yet know is the impact of potential funding from the federal stimulus package, also known as the American Recovery and Reinvestment Act (ARRA). At this writing, ARRA is just about to be adopted in its final form. Once all those numbers are in, and depending on February 2009 revenue results, state legislators are preparing to address another potential shortfall in the current fiscal year of $250 million to $425 million. The FY 2009 Budget Update (2/12/09) is available at http://www.azleg.gov/jlbc/what'snew.htm.

JLBC also made presentations this week to the House and Senate Appropriation Committees describing detailed lists of budget options for each of the 43 state agencies. You can access this information at FY 2010 Appropriations Hearing Presentations (2/12/09) (http://www.azleg.gov/jlbc/what'snew.htm). The JLBC has also posted FY 2009 Budget Revisions Plan As Enacted (2/10/09) (http://www.azleg.gov/jlbc/FY09enactedbudget.pdf) that shows how agencies will implement the adopted cuts.

In the meantime, the House of Representatives continues to hear bills while the Senate is working on FY10 state budget issues. In lieu of deliberating on legislation, Senate committees are conducting state agency reviews and studying specific tax credit programs.

It might seem some days that there's nothing but bad news, but we are so fortunate to live in a great community in a beautiful part of our country. We are focused on the future and on making Phoenix better. Remember to SHOP PHOENIX and tell your legislators to protect city revenues!

Source: P.L.A.N.