PHOENIX — Without a single Democrat in support, state lawmakers agreed Monday to immediately cut $300 million in state spending, half of that from education.
Within hours, Gov. Jan Brewer signed the package. But Brewer acknowledged that the cuts, along with another $160 million in savings through other maneuvers like letting state agencies hike their fees, only make a small dent in the $2 billion deficit.
She plans to meet with GOP leaders next week to begin planning another special session, this one before Christmas.
Brewer acknowledged that the cuts — especially the money being taken from education — are essentially equivalent to what she vetoed earlier this year. At that time, the governor said $277 million taken from state aid to education was unacceptable.
The new cuts to K-12 funding are just $144 million. But Rep. David Schapira, D-Tempe, pointed out the school year — the time district officials have to pare their spending plans — is nearly half over.
"Reality sets in," Brewer said when asked about her decision to sign these cuts.
The governor pointed out that when she vetoed the earlier spending cuts, she was counting on lawmakers coming back and approving her plan to put a proposal before voters for a temporary hike in the state sales tax. Brewer said that would give Arizonans a chance to decide if they were willing to tax themselves to prevent deep cuts to education and social service programs.
That, however, did not happen, leaving not only a big hole in the current budget but an anticipated gap between revenues and spending for the coming fiscal year.
"We have no other alternative other than to go in and make some adjustments, some cuts, and to continue working forward in an effort to see how we are going to solve a possibly $4 billion deficit," she said.
WRONG TO CUT EDUCATION
Monday's votes on the package drew criticism from several Democratic lawmakers, who said it was wrong to take money from education.
"I hope that several of you will remember these cuts when we have 45 in a classroom and teachers aren't able to get to the students that they need to reach," said Rep. Lynne Pancrazi, D-Yuma.
She noted the money is coming from aid districts get for "soft capital" expenses, things like books, supplies, computers and school buses, "things that make a classroom operate, things that a teacher needs in that classroom."
The only real agreement between the two sides was that this isn't the end of the cutting.
"These cuts we're making today barely put a dent into the problem," said Rep. John Kavanagh, R-Fountain Hills, citing the current $2 billion gap between anticipated revenues and spending. "This is cosmetic."
But the question of how to deal with the remaining deficit left wide gaps between the two sides.
Rep. Steve Farley, D-Tucson, said it's wrong for lawmakers to look only at reducing spending.
"We're not considering what has to be one-half of the equation, which is revenues," he said. Farley called it "very sad" that the Republicans who control the legislature believe the budget can be balanced solely with cuts.
That suggestion drew an angry reaction from Rep. Frank Antenori, R-Tucson.
"You've got a lot of guts standing up and telling the people of this state, while their government continues to spend in largesse, to pony up more money and pay for more spending," he said.
"We need to reform the policies of this state and bring us back up into the top 5 percent of the most business-friendly states in the United States to do business," he continued.
Antenori said only lower taxes on businesses will result in more people working, creating "the revenue to fund all these great and wonderful programs that everyone wants to fund."
CHABIN: SEEK BIPARTISAN SOLUTIONS
Figures from the state Department of Commerce show Arizona has lost nearly 300,000 jobs since the peak at the end of 2007.
Rep. Daniel Patterson, D-Tucson, said Republicans are being short-sighted in thinking that cutting funds for education will help economic development.
"I know businesses, I know people that are either leaving Arizona now or don't want to come here because of the problems with our education system," he said.
And Rep. Tom Chabin, D-Flagstaff, urged the Republicans to work with the Democrats.
"This is not a solution to be found on one side of the aisle," he said.
But House Speaker Kirk Adams, R-Mesa, accused the Democrats of talking a lot about bipartisanship but failing to actually negotiate in good faith.
He said Democrats have yet to produce a line-by-line detailed plan of exactly where they are willing to cut and exactly where they would get additional dollars and how much. Instead, Adams said, they presented general ideas.
Aside from the three bills on the budget, Brewer also signed a fourth measure that repeals changes in state foreclosure laws that were designed to make it harder for real estate speculators to walk away from homes they bought without financial obligations. The repeal gives lawmakers more time to consider a compromise between bankers and real estate agents.
HIGHER FEES TO BE CAPPED
Monday's final vote came after Sen. Thayer Verschoor, R-Gilbert, agreed to support a piece of the package that allows several state agencies to increase their own fees to make up for the loss of tax dollars. Verschoor, who earlier said he was opposed to the concept — and who stayed away from the Capitol on Thursday — said he has been assured by Senate leadership that some limits eventually will be put into place.
That conversion provided Republicans with the votes they needed. More to the point, it meant they no longer needed to give in to a demand by Senate Democrats to let public schools on reservations use federal dollars to make up for the new cuts in education funding.
Posted in News on Monday, November 23, 2009 11:00 pm
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