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2 bills to prevent budget deficits OK’d
Stung by the current deep budget deficit, a Senate panel approved two measures late Tuesday designed to keep the situation from repeating ‑ or at least minimize the impact.
On a party-line vote, the Republican-controlled Appropriations Committee agreed to decrease the state spending limit to 6.4 percent of the total personal income of everyone in the state. That is slightly more than a full point below the current cap.
Sen. Russell Pearce, R-Mesa, said SCR1006 likely would not have an immediate impact, as the current budget is only 6.1 percent of personal income.
But he said it would prevent lawmakers and the governor from indulging in spending sprees in years when state tax collections take a sudden jump, spending Pearce said he does not believe can be sustained for the long term.
That occurred earlier this decade, when a budget adopted by lawmakers in 2006 shot total state spending up to more than 6.9 percent of total personal income.
If it turns out the state collects more than that new spending limit permits, any excess would have to be returned to Arizonans who filed individual income tax returns.
Potentially more sweeping is SCR1009, also approved on a 7-3 party-line vote. It would allow the Legislature to take money approved by voters for specific projects when the state starts running a deficit and instead divert the cash for other priorities.
Current constitutional provisions prevent lawmakers from tinkering with any measures that have been enacted at the ballot.
That includes a six-tenth of a cent hike in sales taxes approved by voters in 2000 with the proceeds earmarked for teacher salaries and other education spending. It also includes a series of increases in the state tobacco taxes with proceeds earmarked for programs ranging from helping people to stop smoking to helping early childhood development.
Pearce said there is no reason these programs should be off-limits to spending cuts when the state is running in the red.
He acknowledged the wording of SCR1009 means the state would continue to collect the taxes that voters had earmarked for other specific purposes. But Pearce pointed out that this measure ‑ along with the other capping state spending ‑ would take effect only if voters give their approval on the 2010 ballot.
Both proposals now go to the full Senate.
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