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Napolitano developing plans on AZ budget woes
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PHOENIX - Gov. Janet Napolitano said Wednesday she's reacting to Arizona's budget problems by drafting plans to cope with revenue shortfall projections of varying amounts, including one as large as $800 million.
Napolitano said plan elements would or could include spending cuts and belt-tightening throughout much of state government. Also being considered are emptying the state's rainy day fund and taking reduced, lump-sum payments on both Arizona Lottery sales and lawsuit settlement payments by tobacco companies. She said a tax increase is not on the table.
She said she would try to protect spending on K-12 schools and social services that provide safety nets for children and vulnerable adults, including veterans.
Napolitano said a "pessimistic" scenario would produce an $800 million shortfall in the state's $9.9 million budget and that a $320 million shortfall would be "optimistic" and only achievable if the economy rebounds very quickly. A middle-ground scenario puts the gap between spending and revenue at $450 million.
Napolitano also wants the federal government to pay $500 million owed Arizona for costs resulting from illegal immigration. Napolitano has periodically billed the federal government for unpaid portions of those costs that have accumulated since 2003, and she said she would tack a $5 million late fee onto her next invoice.
Napolitano briefed reporters on her shortfall scenarios and still-developing plans in advance of a special budget briefing scheduled for fellow lawmakers Wednesday afternoon by House Speaker Jim Weiers.
Weiers, R-Phoenix, and other key lawmakers have said they expect the current year's shortfall to reach $1 billion.
Many Republican lawmakers voted against the budget when it was approved at Napolitano's urging last June and said it had too much spending. Napolitano defended it as protecting vital spending and recognizing that much state spending is protected by voter mandates, court orders and federal law.
Napolitano said legislative action will be needed and that she will present her plans to legislative leaders soon in anticipation of postelection negotiations to decide what to do.
"This is not going to be done unilaterally," she said.
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