Budget Solution Just Out of Reach‏

State Budget Rubik's Cube

The State Legislature continues to study how to solve the seemingly-unsolvable, ever-widening gap in the FY10 budget now reaching north of $3 billion. This is an increase of $600 million over the previous estimate of $2.4 billion. Both the House and Senate are drafting budgets to address the shortfall and anticipated federal stimulus dollars are an important piece of the remedy. There are, however, some strings attached to receiving these dollars. For example, the $160 million that was cut from the FY09 higher education budget may need to be restored in order to maintain eligibility for nearly $800 million in stimulus money for education in FY10. If so, the legislature will have to find another $160 million to balance this year's budget.

Urban Revenue Sharing

Last Wednesday, the Senate Finance Committee chaired by Senator Jim Waring (R-Phoenix) delved into Urban Revenue Sharing and its history in Arizona. The committee heard a staff presentation and then testimony from the League of Arizona Cities and Towns and other organizations. Archived video of this committee hearing is available at http://azleg.granicus.com/ViewPublisher.php?view_id=13 on the Arizona State Legislature Web site.

Special Stimulus Delivery

This week, U.S. Transportation Secretary Ray LaHood was in town with a couple of exciting announcements. First, he visited Phoenix Sky Harbor International Airport to announce that Arizona airport construction projects will receive $28 million in federal stimulus money, of which Sky Harbor will receive $10.5 million for taxiway repair. Today, U.S. Rep. Harry Mitchell, D-Ariz., and Secretary LaHood announced that the Metro light rail system will get $36 million from the federal stimulus spending program, which is early delivery of federal funds scheduled for next year. As described in our message last week, stimulus funding doesn't backfill the City budget like it does for the State. It will put people to work, mostly in the private sector, on priority projects that are ready to go. Stay up-to-date with stimulus dollars awarded to Phoenix at phoenix.gov/recovery.

Remember to SHOP PHOENIX and tell your legislators to protect city revenues!

Source: P.L.A.N.