Legislature Presents Budget Draft That Hits Both Counties And Cities

By Linda Kor
   The Arizona House of Representatives and the State Senate unveiled a new draft of the state budget May 1 that calls for counties and cities to take more funding cuts in addition to other cuts and sweeps already being considered.
   Governor Jan Brewer continues to adhere to her five-point strategy, which includes a temporary tax increase of at least $1 billion per year, but legislators are reluctant to go forward with a tax increase and are looking to make further cuts.
   “My budget plan includes a temporary tax increase of at least $1 billion per year to avoid devastating our education, public safety and vital public health budgets,” Brewer noted. “Our state budget revenues have declined, not improved, since the presentation of my plan in March. The caseloads for federally required AHCCCS (Arizona Health Care Cost Containment System) health insurance, as you would expect in an economic downturn, are growing substantially with approximately 47,000 new enrollees in the last two months alone.”
   Legislative leadership is proposing that the $3 billion budget deficit be made up by accepting $1 billion in stimulus funds, cutting $1 billion in spending and by sweeping $500 million in funds. The remaining $500 million is what the governor hopes a tax hike would cover, while legislators are looking for alternatives.
   “The plan calls for part of the $500 million to be made up by counties and cities,” stated Navajo County Manager Jimmy Jayne. “Specifically, the plan calls for counties to contribute roughly $55 million to the state. While Maricopa and Pima counties would bear the brunt of that amount, the other 13 counties, including Navajo County, could certainly be impacted as well.”
   The $55 million cut does not include the $1.1 million cut to the county’s Highway User Revenue Fund allocation already under consideration by state leaders.