DALLAS - Arizona lawmakers resolved a crisis in education funding by replenishing the $3.7 billion budget for public schools, and then began mapping a strategy to close a remaining $2.1 billion budget shortfall yesterday.
Gov. Jan Brewer, who vetoed four bills that make up the appropriations for education, called this week's special session at the end of the regular session July 1. The session opened Monday with a reduction of cuts to education spending.
Restoring the funding qualified Arizona for $2.3 billion of federal stimulus money that would have been lost due to the cuts. Brewer praised the lawmakers' action, adding: "Certainly, we can claim victory."
To erase the $2.1 billion shortfall, Brewer's office and legislative leaders will negotiate ways to cut spending and raise new revenue under the $8.4 billion budget for the fiscal year that began July 1. The gap should be closed by the end of August, according to Rep. John Kavanagh, chairman of the House Appropriations Committee.
The ominous revenue trend continues, with state income continuing to lag projections, according to Sen. Steve Pierce, R-Prescott. By December, the budget could be out of balance again, he said.
Legislative leaders who vehemently opposed Brewer's proposed one-cent sales tax hike agreed to put the issue to voters, possibly as soon as Nov. 3. To hit that date, lawmakers would have to agree to call for the election no later than July 31.
However, not a single vote was cast against the plan to restore $500 million to education spending. The measure passed Monday eliminates $220 million in cuts and allows funding to grow at the inflation rate of 2%. Ultimately, the $3.7 billion education budget is a roughly $100 million increase over the last school year.
Despite the bipartisan support for the education funding, some Republican legislators called Brewer's veto of a balanced budget "irresponsible."
The action on education comes in the wake of bitter recriminations between Brewer and Republican legislative leaders, particularly Senate President Bob Burns.
The governor sued Burns and House Speaker Kirk Adams last month in state Supreme Court, demanding that they send her the budget passed by both houses on June 4. Although the court ruled in Brewer's favor, it said it could not enforce its ruling with a court order.
The budget landed on Brewer's desk a day later than required by the state constitution without any of the compromises that negotiators from the governor's office and the Legislature had agreed to. Of particular interest to Brewer were restoration of education funding and a plan to submit a three-year state sales-tax increase to voter approval.
While the special session remained technically open yesterday, rank-and-file members of the House and Senate returned to their districts while leaders of the Republican and Democratic caucuses met to negotiate future strategies.
