The Central Arizona Water Conservation District has filed a lawsuit with the Arizona Supreme Court over two state budget-balancing financial sweeps that took money from a fund that supported a water banking program.
The sweeps, in January and July, transferred $14 million from the fund to the general fund due to budget shortfalls.
The 32-page lawsuit contends that the sweeps are unconstitutional because the funding is not provided from tax revenue and not subject to state oversight and legislative appropriation.
The money comes from a 2001 pact under which Arizona agreed to provide 1.2 million acre-feet, or some 400 billion gallons, of surplus Colorado River water to Nevada. In turn, Nevada agreed to pay Arizona $230 million over 10 years for its costs to store and pump the water.
Gov. Jan Brewer and Treasurer Dean Martin are named as defendants in the suit. Brewer said the sweeps were mandated by the Legislature to keep the state government functioning.
“Although I do not believe these fund sweeps are good long-term budget solutions, I am obligated to defend the law as passed by the Legislature,” she said.
