Waiting and Watching Washington
Passage by Congress of the Budget Control Act last week has state and local governments watching carefully. The Act calls for two phases of federal deficit reduction -- the first phase reduces just under $1.0 trillion in spending over the next decade; the second phase creates a special committee of Congress to recommend additional deficit reduction measures of up to $1.5 trillion. Members of the special committee, including Arizona Senator Jon Kyl, must agree before Thanksgiving on a legislative package that meets that goal; then the full House and Senate must vote on the package by December 23.
Phoenix receives significant funding from the federal government for programs that benefit Phoenix residents, so staff is watching closely so that the city is prepared for any changes to those programs. Short term impacts are minimal. We all will know more as the special committee completes its work.
Superior Court Decision Upholds Health Care Cuts
On Wednesday, the Maricopa County Superior Court upheld the State's decision in its fiscal 2012 budget to cut up to $500 million from the Arizona Health Care Cost Containment System (AHCCCS) through changes in eligibility criteria. The ruling stemmed from a claim that the legislative act violates Proposition 204, an initiative approved by voters in 2000, that expanded AHCCCS coverage eligibility. Barring a successful appeal, the state budget is estimated to be on track to finish only $32 million in the red by the end of the fiscal year.
Source: P.L.A.N.
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