NEWS

Fri, Mar 19

Arizona Legislature Special Session Update

On Tuesday, the Arizona Legislature adjourned its latest special session dealing with the state budget crisis. The Senate voted 17-13 on the House-passed budget resolution which has measures that will ask voters, among other things, to abolish an early childhood program and use its tobacco-tax funding to help close Arizona’s big budget shortfalls.

The package was largely modeled on Brewer’s own budget proposal and would close a projected $2.6 billion shortfall in the fiscal year beginning July 1. That would put state spending at $8.5 billion, down roughly $1 billion from the current fiscal year.

Here are some of the highlights of the budget-balancing package:

-- EDUCATION

The $1.2 billion of new spending cuts in the current and next fiscal year include returning state funding for kindergarten to half-days to save $218.3 million. The change erases a major policy initiative of former Gov. Janet Napolitano.

-- HEALTH CARE

Authorize Brewer’s administration to change Arizona Health Care Cost Containment System rules, which would enable 310,000 people to lose coverage unless the federal government provides new funding. Those people are eligible for the state Medicaid program under a voter-approved law. A separate change would eliminate the KidsCare program providing coverage for 47,000 children.

-- BALLOT MEASURES

Ask voters in November to approve ballot measures to divert $450 million from two voter-mandated programs. One measure would repeal the First Things First early childhood development program outright. The other program would leave the Growing Smart land conservation program alive but take all of its current funding.

-- SALES TAX

The plan presumes that voters will approve a temporary sales tax increase, already placed on a May 18 special election ballot as Proposition 100. But it also includes $867 million of conditional spending cuts that would take effect if voters reject the one-cent, three-year increase. Most of the conditional cuts would fall on education, predominantly on K-12 schools.

-- EMPLOYEES

Cut most state employees’ pay by 5 percent, with half of the cut coming through six unpaid furlough days in each of next two fiscal years.

-- BORROWING

Increase the state’s borrowing to help cover budget gaps. In the current year, $450 million in education spending would be temporarily delayed. In the next fiscal year, the state would add $100 million of sale-leaseback financing for state buildings.

-- JUVENILE

Retain the Juvenile Corrections Department but study whether its responsibilities for custody and treatment of juvenile offenders should be transferred to counties. The plan originally called for elimination of the department and transferring its responsibilities to counties.
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