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Budget debate continues into August


State legislators came close, but were unable to pass a state budget for the 2010 fiscal year last week.

After hours of negotiations between Gov. Jan Brewer and leaders in the House and Senate, lawmakers were called in to the state Capitol at 1 a.m. Friday morning to vote on a renewed 2010 budget, which included ballot propositions to raise the state sales tax and suspend voter-protected funding. The measures were passed in the House of Representatives but died in the Senate.

Rep. John McComish, R-Chandler, said the governor’s proposal to suspend Proposition 105 temporarily also played a role in swaying him toward her plan. Prop 105 keeps legislators from cutting funds from programs created by voter-approved ballot initiatives.

Last month, the proposition kept legislators from cutting $7 million voters set aside for early childhood education programs.

“[Prop 105] basically ties our hands and mandates about $700 million a year in spending,” McComish said. “In times of dire financial

emergency, we don’t have the flexibility to cover the deficit.”

Rep. John Kavanagh, a Fountain Hills Republican who voted in favor of the budget, said the absence of several Senate members is the main reason for the delay. Kavanagh said he expects the new plan to be approved and signed into law next week.

“If we have all the right people [at the Capitol] at the same time, it’ll pass,” Kavanagh said.

The Republican representative, who said he opposes the sales tax referral, said he voted for the revised plan after the governor agreed to include a $10.2 billion spending ceiling and $400 million in permanent tax cuts after three years.

Sen. Manny Alvarez, D-Phoenix, said he did not support the plan because it did not include any of the Democrats’ proposed alternatives for raising revenue, including broadening the tax base and taxing additional services, rather than raising taxes. Democratic staffers estimate this measure would cost voters an average of 85 percent less per year.

“They were going to include some of the measures the Democrats had in their plan, but it fell through,” Alvarez said. “They never intended to use them in the first place.”

Tempe Democrat Ed Ableser said he voted “no” on the proposed budget because he feels Republicans are placing the burden of the deficit on middle-class taxpayers, while cutting taxes for corporations.

“They’re trying to raise taxes on voters so they can cut taxes to corporations,” Ableser said. “They’re basically trying to put everything on the consumers’ shoulders.”

McComish said the tax cuts, which would take effect in three years, would help spur economic growth and investment, creating jobs in the private sector.

“We view tax cuts as economic stimulus,” McComish said.

Reach the reporter at

derek.quizon@asu.edu


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