On Friday, Governor Brewer unveiled her budget strategy to address the $1.4 billon shortfall in FY 2010 and projected $3.2 billion deficit for FY 2011. The plan:
establishes a three-year temporary one-cent increase in the state sales tax (to be adopted by the Legislature rather than referred to voters)
reduces spending in various programs such as K-12 education, universities, and health care for low-income and disabled Arizonans;
eliminates KidsCare, cash assistance for certain low income families, and the Department of Juvenile Corrections, which would transfer its responsibilities to Arizona's counties;
implements a five percent, across-the-board pay cut for state employees; and
redirects lottery monies to the State's general fund.
The Governor's office explained that if the Legislature adopts the proposed temporary sales tax increase itself rather than referring the issue to voters the State could avoid approximately $263 million in cuts during the current fiscal year. This part of the Governor's plan would require a two-thirds majority vote of both houses of the Legislature.
Given our own Phoenix budget woes, the City is grateful that revenue sharing monies are not affected in the Governor’s proposal. The Governor also announced a $20 million grant program funded with federal stimulus dollars to pay for public safety positions in local government. Unfortunately the proposal does include a 100% sweep of Local Transportation Assistance Funds funded by the State lottery -- that sweep would result in an $8 million hit to Phoenix’s transit program that pays for local bus, rail, and Dial-A-Ride service.
Bills Of Interest Scheduled for Hearing Next Week
SB 1165: DUI; License Suspension (Sen. Linda Gray, R -- Glendale) adds a number of dangerous drugs to the list of substances that are known to impair a driver and if found in a person's blood will lead to suspension of his or her drivers license.
HB 2161: Payday Loans; Regulation (Rep. Andy Tobin, R -- Paulden) regulates the payday loan industry and authorizes continued operations beyond current 2010 sunset date.
HB 2246: Regulation of Fireworks (Rep. Andy Biggs, R -- Gilbert) allows sale and use of "consumer fireworks" by the general public.
Remember to SHOP PHOENIX and tell your legislators to protect City revenues that pay for important services such as police, fire, libraries, parks and street maintenance. Thanks for all you do for our community.
Source: P.L.A.N.
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