The Arizona House Appropriations Committee has approved a package of 10 budget bills that balances the state’s fiscal 2010 budget by cutting $650 million from agency budgets and transferring $394 million from various accounts into the general fund. It calls for $51 million in additional revenue and $615 million in non-tax revenue enhancements.
The $9.7 billion general fund budget approved by the committee along party lines, with Republicans in favor and Democrats opposed, also relies on $989 million in federal stimulus funds to resolve a potential $3.3 billion shortfall in revenue next fiscal year.
No date has been set for debate on the budget in the House, although the Legislature must approve a spending plan before fiscal 2010 begins July 1.
House Majority Leader John McComish, a Republican, said last week that agency budgets had to be reduced to solve the deficit and balance the budget.
“General fund spending has increased by $3.7 billion since 2004, a third of the general fund is voter-protected, and tax revenues in the state are down by 25% from this time last year,” McComish said.
The plan would sweep $255 million from local school district accounts into the general fund, and takes $293 million of state-shared revenue from local governments in exchange for removing restrictions on how cities and counties can spend development impact fees. The proposed budget would require transfers from cities of $210 million, along with $66 million from Maricopa County and $17 million from Pima County.
