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Gov. signs budget, but includes vetoes

STAFF AND WIRE REPORTS
Today's News-Herald
Published Wednesday, July 1, 2009 11:24 PM MST

PHOENIX — Arizona Gov. Jan Brewer avoided a shutdown of state government Wednesday by signing a budget bill from the Legislature, but her vetoes of other spending proposals leave the state’s fiscal woes unresolved.


Hours after the Legislature adjourned its regular session, the governor called a special session to begin Monday to focus on the budget and reconsider her sales tax hike that lawmakers had already rejected.

“These budget bills would prevent the proper function of many critical components of state government, as well as undermine our efforts to develop and encourage a prosperous future,” Brewer said in a letter explaining her vetoes.

Brewer used her line-item veto power on the budget’s spending for K-12 public schools as a way to compel lawmakers to increase that funding above the approximately $4 billion provided in the budget. Her office said the K-12 school system has enough money to get by temporarily.

She also eliminated the Legislature’s lump-sum spending cuts to environmental quality, social services and health services departments, as well as some funding for the state’s three public universities.

It’s not known whether there will be enough lawmakers at the statehouse Monday to have a quorum for the special session. Lawmakers have been in session for more than five months, and several of them have vacation plans that conflict with the special session.

House Democratic leaders cast doubts about the prospects for success with the special session, saying the outcome won’t be any different in the special session if the governor leaves out the concerns of rank-and-file Democrats.

“What is the point of calling a special session if there’s no agreement and nothing has changed — and nothing will probably change between now and Monday,” said House Minority Leader David Lujan, a Democrat from Phoenix.

Calls seeking comment on the vetoes weren’t immediately returned Wednesday afternoon by Republican legislative leaders. A spokeswoman for Senate President Bob Burns said Burns won’t comment on the vetoes until Thursday.

State Superintendent of Public Instruction Tom Horne, a Republican, said budget uncertainty wasn’t a concern for his department in the short run but could cause drastic consequences for charter schools if lawmakers and the governor don’t approve a budget by July 15.

That’s when the state will need spending authority to make a scheduled payment to schools. Without the money, some charter schools might miss loan payments or payroll, Horne said.

Before the Leigislature passed the budget in the wee hours of the morning and before Brewer signed off on most of it, local lawmakers weighed in on the 10-bill package.

Rep. Nancy McLain, R-Bullhead City, said the budget was adequate in closing the state’s deficit without raising taxes.

“Was it wonderful? No, but it did the job,” she said.

McLain said education took one of the lightest hits with a 2 percent cut across the board.

“We tried to spread the pain,” she said. “Some in the education community are crying we deflated the community. Most of the other areas took larger cuts. We were probably easiest on education.”

Sen. Ron Gould, R-LHC, said he would not vote for a budget that raised taxes to address the state’s $3.2 billion shortfall without major spending cuts. Gould said instead of a one-cent sales tax increase, the governor should use $200 million in stimulus funds to buy down the deficit.

“I cannot vote for (this budget) because it has almost $800 million of borrowing,” Gould said Tuesday.

Gould said he felt the governor’s budget only increased the state’s deficit problems for the coming year and further cuts were needed. He added most of the spending was for personnel.

“In the five years I have been in the Legislature, I’ve watched the size of the state government double, while expansion of government needs didn’t double,” he said. “I’m sorry it came to this, but it takes 47 people down here to agree on something, and only one of them has veto authority.”

Like other states, Arizona’s finances have been shredded by the recession. Arizona’s tax collections have been hammered by rising unemployment, dampened consumer spending and the housing industry’s collapse.

The lack of an approved budget before the new fiscal year began at 12:01 a.m. Wednesday had raised concerns about a possible state government shutdown. The Legislature did not finish approving the budget bills until shortly before 3 a.m.

Throughout the session, Brewer has been at odds with the Republican-led Legislature over her approach to fixing the state’s budget woes, particularly her call for a sales tax hike as a way to protect important services from damaging cuts. Lawmakers omitted the sales tax increase.

The budget bills approved Wednesday by the Legislature would have modified a legislative budget passed on June 4 but not sent to Brewer. Those 10 bills also were sent to Brewer on Wednesday.

Brewer had called the June 4 budget inadequate, saying it would cut spending too deeply. Republican lawmakers who drafted it said the state needed to rein in spending because budget troubles will continue for several years.

The budget package negotiated by Brewer and GOP legislative leaders to close a projected $3.2 billion shortfall included both a three-year, one-cent sales tax increase — which was to be submitted to voters in a Nov. 3 special election — and income tax changes sought by lawmakers.

As part of the package, additional revenue from the sales tax increase could have scaled back several budget-balancing steps, including reductions in spending cuts for education and new borrowing by the state.

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Comments (1 comment(s))

    Lake_Havasu_Liberal wrote on Jul 2, 2009 9:37 PM:

    " Thankfully, our new governor has the guts to stand up to the right wing extremists like Gould and McLain who helped pass a budget the would have been just enough for our state to collapse slowly rather than just implode all at once. And before you start praising these two for no-new-taxes, look at the tax shifts that moves the burden for things like school overrides and bond issues or improvement district bonds from businesses to home owners. Look at the lack of funding for the schools that will keep this state at the absolute bottom in classroom spending. Look at the lack of support for health and social services that will keep Arizona at the bottom of those categories. And let's not forget that all of these right wing wing extremists are more than willing to hold the line on taxes at the state level only to watch them rise at the local level. Hey, not their doing... But all of this only continues the greatest shift of wealth this nation has ever seen- the Republican-backed, tax policy-based shift from the middle classes to the wealth class. "

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