Budget Chess Game‏

Governor On The Clock

On Tuesday, legislators adjourned the Third Special Session sine die, having delivered a package of budget bills to the Governor minus her temporary sales tax increase. Governor Brewer has until September 5 to sign, veto, or allow the bills to be enacted without her signature. It is unclear what she will do. Meetings continue with legislative leaders from both parties with the hope of finding the votes for a tax ballot measure in December.

Should the Governor sign this budget, the impact to Phoenix would include:

$22 million shift of vehicle license tax (VLT) revenues to school districts (Phoenix would lose between $5 and 6 million);
identification checks for any public service that Phoenix provides;
reduction of the assessment ratio for commercial property tax (impacting Phoenix's secondary property tax levy by approximately $14 million/year); and
2-year freeze on impact fees, building codes and construction sales taxes.
The Governor could also use the line-item veto as she did in previous budget bills this year or sign just a few of the nine bills in the package and call a fourth special session to complete the budget puzzle. Governor Brewer has been adamant in her request for a voter referral for the one-cent temporary sales tax, and the Legislature has not complied. Her request is for a sales tax increase that would last three years and cost taxpayers a penny for the first two years, a half-penny for the third. A state Department of Revenue analysis estimates a one-cent-per-dollar increase in the tax would generate $983.9 million a year, assuming the state does not share the new proceeds with cities, towns and counties as it ordinarily would. Although the state can backfill some of its current shortfall with federal stimulus dollars, that strategy cannot overcome the anticipated deficits in the coming years.

Speaking of the Budget . . .

Last week, Senate President Bob Burns (R - Glendale) established a commission "to streamline state agencies' organization, operation and costs . . " Senator Thayer Verschoor (R - Gilbert) heads the Arizona Budget Commission (ABC) which is expected to meet through 2010. To learn more, read the Senate news release or the August 21 article Arizona Budget Commission to seek out government waste that appeared on ABC15.com. Click here to see the video.

New Senate President Pro Tempore Appointed

Also this week, Senate President Burns appointed Senator Barbara Leff (R - Paradise Valley) to the position of Senate President Pro Tempore. The "pro tem" serves as the presiding officer when President Burns is not available. She is the third Senator appointed to the position since the Legislature began meeting last January. Initially, Senator Thayer Verschoor (R - Gilbert) was appointed and then replaced at the end of the first regular session by Senator Steve Pierce (R - Prescott).

R U On Twitter?

Yesterday, Government Relations tweeted the message that "Phoenix partners with West Valley communities to support Luke AFB – show your support by registering at www.lukeforward.com." The U.S. Air Force is beginning the process of selecting a new base for the F-35 Lightning II. If you support Luke Air Force Base and the work they do, visit www.lukeforward.com and read more about how you can help.

Source: P.L.A.N.