Governor looks for ideas on possible state budget cuts

Gov. Janet Napolitano is asking state agency chiefs to figure out where they might be able to cut spending if that becomes necessary.

The governor acknowledged Tuesday the state began its new fiscal year on July 1 with about $226 million less than anticipated in leftover cash from the prior budget year. On top of that, tax collections for July were nearly another $25 million below the forecast used to build this year’s $10.6 billion spending plan.

But Napolitano said it’s “hard to say” if the budget needs to be revised.

“We’re only shortly into the fiscal year,” she said.

Despite that, the governor said she already has directed agencies under her control to begin figuring out where they can save money — if it comes to that.

Republican legislative leaders already are asking Napolitano to come up with a plan if actual collections continue to lag. And Rep. Russell Pearce, R-Mesa, said there needs to be a special legislative session soon to make the spending adjustments.

Pearce, who chairs the House Appropriations Committee, said if lawmakers wait until the regular session in January, the budget year will be half gone, with half the money already spent. That, he said, will make bringing the budget into balance through spending cuts all the more difficult.

Napolitano said her orders would lay the groundwork for budget cuts if necessary. But the governor declined to say when, if at all, she would consider asking lawmakers to revise the budget.