Senate Budget Closes Deficit Without Tax Increase

Goldwater Institute says Senate budget is responsible during economic downturn

Phoenix–Late last night the Arizona State Senate passed a budget to close the 2010 budget deficit without raising taxes. The budget deficit is projected to be between $3 and $4 billion. The budget plan includes $631 million in reductions to state agencies, $143 million in accounting tricks, $1 billion in one-time fund sweeps and other revenue sources, and uses $1.2 billion in federal money.

If this budget is adopted, state spending will be $500 million less than it was in 2007. The House is expected to vote on the budget today.

“No tax increase is good news for Arizona and will help our economic recovery,” said Darcy Olsen, president and CEO of the Goldwater Institute. 

The Governor has vowed to veto the Senate budget if it passes the House and is sent to her for approval. The Governor favors smaller budget cuts and a tax increase.
 
“The modest spending reductions in the Senate budget really amount to trimming the fat,” said Ms. Olsen.

Complicating matters, the Governor and the Legislature don’t agree on how big the 2010 deficit will be. The Governor says $4 billion, and the legislature says $3 billion. The Goldwater Institute has recommended that state finances be independently certified by the State Treasurer’s office to provide lawmakers with an accurate figure upon which to base the budget.
 
The Goldwater Institute is a nonprofit public policy research and litigation organization whose work is made possible by the generosity of its supporters.

 


Comments

  1. Yeah No Tax Increase!!!….except for the backdoor one after the cities have to make up for all of the funds stolen from them.
    Try not pull a muscle legislature when you’re patting yourself on the back for something you didn’t even do. Or at least be honest when you’re doing it.

  2. Congrats also to the GI for being principled in their beliefs…when it’s convenient for them.

  3. kralmajales says

    Yeah…trim the fat huh? Like the $20 million the university took in hits at last budget PLUS the additional $57 million they had to give back MIDYEAR. And now there is more.

    I know most of you could give a crap, but we gave at the office. What if anything have any of you given?

  4. kralmajales says

    Oh…and thank you to Rep. Williams (R), Quelland, and Konopnicki for being the only ones in the House to vote against the budget…I think for reasons that it harmed education and put us legions behind states like WV.

  5. What is this abour President Burns holding this bill in his desk instead of taking it to the Governor? This is in direct violation of state law.

  6. Ron, I believe that was one way they got the votes in both chambers. There were more than a few, Speaker Weiers included, that would not have voted for this unless leadership made the deal to hold it.

    Fiscal conservatives can differ and this is a place where they do. To say universally all taxes are bad and should be forbidden does not work in an economy that is built on revenue from taxes where mandatory obligation for that revenue has, and will continue to, overextended collection. There are cuts in places that will cause irreparable harm, in the opinion of some, that need to be adjusted. The furthering of the deficit cannot be overcome without new revenue because of the statutorily obligated increases.

    This is bigger than taxes are bad, cuts are good. It is the hand we were dealt when past leadership and majority memebrship could not hold the majority together to prevent past budgets from spiraling out of control. The fault here, if there is any, does not lie with those who look for the cure but those that infected us to begin with and now deny cuplpability by trying to deflect criticism and point to another.

  7. kralmajales says

    Nicely said Ann. I would only add that the problem with revenues in this state is truly a GOP problem that goes way back. The Gov was able to craft a majority to keep some funding alive for some programs but could not come up with tax revenues becaues GOP lawmakers will not support them under any circumstances. The theory that lower taxes will allow you to grow enough revenue to pay for programs that both sides of the aisle wanted is clearly flawed and what you say above gets at that very well. We have some of the lowest taxes in America, and well some of the worst services.

    Betting on growth to get us out (as GOPers do) is extremely flawed without a solid, stable mix of tax revenues. It was a gamble, a house of cards, and here we are cleaning the cards off of our heads.

  8. The culpability here is not a GOP alone issue, kral. The Dems, lead by Napolitano with a bit in their mouths, fought for every dime they could spend and every program they could create; if there wasn’t a revenue source, too bad. Betting on growth was their tool, as dictated by the Governor. All the while, the R’s could neither come up with ideas to counter or hold the majority to shut it down.

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