The Arizona Legislature has scheduled budget hearings this week to work out a solution that will
erase the fiscal 2010 $2.93 billion deficit. The legislature must pass the FY2010 budget before June
30, 2009.

As previously discussed in The Capitol Insider, tax reform discussions are ongoing at the Capitol.
The legislature is talking about broadening the base of the sales tax to include services sometime
after passing the FY2010 budget or soon after the next legislative session begins in January 2010.

We’ll keep you updated as we get information.

In addition to discussions about taxing services, the legislature may schedule a hearing to review a
proposal that would reform impact fees and regulations on new housing developments. More details
to follow…