Brewer seeks Dem support on sales tax hike

Gov. Jan Brewer said Thursday she's willing to consider a deal with Democrats to get her proposed sales tax hike on the November ballot.

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Brewer said she remains insistent that the only way to properly balance the budget for the fiscal year that began Wednesday is to bring in more revenues. That, however, proved a nonstarter among Republicans who controlled the Legislature, which is why the governor said she had no choice but to veto key parts of their spending plan.

"I don't think it came as a surprise," she said. "I've said all along as we negotiated through the process that it was based on the premise that the tax referral went out." She said the budget that was approved "didn't work in the way that it was presented."

Republican foes of the tax seem as adamant as ever.

"I don't think it's my responsibility," said Sen. Jack Harper, R-Surprise, of voting for a tax hike, even one where voters get the last word. "I didn't blow the lid off government spending."

So that may leave the Democrats.

Senate Minority Leader Jorge Garcia, D-Tucson, said Thursday he is willing to round up the votes for a sales tax hike. But he said Brewer is going to have to agree to changes.

One key issue, he said, is something to deal with the fact that Democrats consider sales taxes regressive, with those near the bottom of the income scale spending a larger portion of what they bring home on taxes than those at the top. Garcia said a rebate for those earning below a certain figure helps alleviate that.

But that's not all. He wants the budget to include restoration of the state property tax.

That levy, suspended three years ago when Arizona had a surplus, generates about $250 million a year. And it is slated to return later this year absent legislative action.

The budget that Republicans sent to Brewer included permanent repeal of that tax. But the governor vetoed that part of the budget, putting the issue back in play.

Brewer said she's willing to be flexible to get her way.

"We can all get together Monday morning and determine what it is that we're going to have to do and how we're going to accomplish that and move forward," she said. And that plan, she said, "is not just Jan Brewer's idea, it's going to be everybody collectively."

Getting the votes from the House Democrats, however, could prove more difficult.

House Minority Whip Chad Campbell, D-Phoenix, remains wedded to a plan that actually would decrease the state sales tax, currently at 5.6 cents on the dollar, perhaps to 4 percent. But it would bring in more money by broadening the base, making more transactions subject to the levy.

For the first time ever, taxes would be charged on services ranging from barber shops and hair salons to dance lessons, driving schools and even lottery tickets. Exemptions would remain for food purchased at grocery stores, prescriptions and medical services.

Brewer's demand that lawmakers put that sales tax hike on the November ballot comes with a big risk: Voters might reject it.

But Brewer said the spending plan is crafted so that it can work - with or without the billion dollars a year that the tax hike would raise.

"We have put the triggers in there so that the money would come in" to restore spending cuts if the measure is approved, she said. "The bottom line is that you can go out, you can campaign that you believe the budget that is intact is the one you could support and you would think you would be doing the best thing for the state of Arizona.

"And if you don't like the budget, then you would go out and you would vote that you wouldn't."

But Brewer said voters need to understand what rejecting the levy means.

"You would end up with $220 million cut in education," she said, along with less money for health and welfare programs.

"I think the people out there want their kids educated and they indeed want every child that's being abused and unprotected to be investigated by Child Protective Services," Brewer said. "I think there's some basic principles that Arizonans demand that government provide for us.

"And I'm betting and hoping that once they look at the referendum ... they would vote for it. And if they don't, I will abide by the will of the voters."