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State leaders can’t ignore depth of deficit
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Gov. Jan Brewer won’t take “no” as an answer from lawmakers on her proposed temporary sales tax increase, and she has directed the Legislature to come back to the Capitol Monday to continue working on a $8.4 billion state budget.
Brewer seeks Dem support on sales tax hike
Brewer vetoes most of state budget
It’s not clear why Brewer believes she will get a different response only a few days after the Legislature’s Republican majority finally managed early Wednesday to adopt most of the budget compromises negotiated between her, House Speaker Kirk Adams, R-Mesa, and Senate President Bob Burns, R-Peoria.
But lawmakers will have to do something, as Brewer used her veto pen a few hours later to strike down funding for local school districts, as well as a wide swath of proposed cuts to state agencies and other policy changes. Essentially, the governor turned the new budget into a modified continuation of the old one, with a projected $3.2 billion deficit still looming over the proceedings.
From Brewer’s perspective, the governor has kept her word by rejecting a new budget that would give voters no opportunity to tax themselves more to avoid deeper cuts to education, public safety and health care. At the same time, Brewer avoided a government shutdown that could have been a political disaster.
We have a cautionary note for lawmakers and taxpayers alike once the budget debate resumes. The Republican plan includes an estimated $630 million in budget cuts but also relies on options that will work one time or delay payments for only a few months. This includes $1.1 billion in federal stimulus money, $700 million in the sale and leasing back of prisons or other state buildings, and $262 million in diversions from specialty accounts with dedicated tax sources.
Even with $1 billion a year from a 1-cent increase in the state sales tax, lawmakers would wrestle with another budget next year that already has committed to spend at least $1.3 billion more than the state likely would receive in revenues.
As difficult it has been, lawmakers and the governor must stay committed to make tough choices about spending priorities, and get a final budget done soon. Every delay and deferment postpones the state’s day of reckoning and adds to the pile of past-due bills.
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