Arizona Lawmakers Pass $9.1B Budget After All-Nighter

ariz-capitol-credit-azcm-357.jpg

DALLAS — Arizona lawmakers stayed up late to achieve the earliest passage of a budget bill in years.

To push the series of bills through both houses, lawmakers stayed up all night Friday, emerging with a deal for a $9.1 billion spending plan at about 8:30 a.m. Saturday.

Previous Arizona legislative sessions have not completed passage of appropriations measures until April at the earliest and, in 2009, as late as July, two days after the start of the fiscal year.

The budget that had already been agreed to by Republican legislative leaders and Gov. Doug Ducey was described by some lawmakers as "harsh" because of its 14% cut in higher education funding and elimination of state funds for Maricopa and Pima county community colleges.

Spending in the fiscal year beginning July 1 will be about $100 million less than in the 2015 fiscal year that ends June 30. The appropriations are $1.1 billion lower than the state's largest budget in fiscal year 2007 and $1.3 billion higher than the amount budgeted in fiscal year 2010.

"The Republicans made sure the budget process was quick and provided little opportunity for public comment," Rep. Eric Meyer, D-Paradise Valley, said in a written statement after the vote. "They're slashing more than $100 million from higher education. Those cuts include eliminating all state support for the largest community colleges. These policies are irresponsible and shortsighted."

Passage of the bill required the vote of a single Democrat, Sen. Carlyle Begay, D-Ganado, who joined 15 Republicans to send the measures to Ducey.

"This morning, we passed Arizona's Balanced Budget, a fiscally-responsible, bipartisan spending plan that sets priorities, makes real permanent decisions and solves the state's structural deficit while protecting vulnerable populations," Ducey said in a prepared statement after the vote.

Overall, the budget reduces government spending by 2.3%, Ducey said.

"This is a values-based budget that reflects key priorities for the state of Arizona," the Republican governor said. "It protects classrooms, child safety and public safety - all while eliminating the state's structural deficit by 2017 and protecting you, the taxpayer, from a tax increase."

Ducey took office in January, succeeding Gov. Jan Brewer, who endured several bruising fights with Republican lawmakers amid record budget deficits following the recession. The nadir came in 2010 when revenues fell 34% below the previous year's. In terms of revenue, the state has never really recovered from the recession. Ducey's plan calls for the state to emerge from its structural deficit in 2017.

The budget uses $102 million from the rainy day fund, leaving $362 million.

The plan funds $74 million in extra school inflation payments, which is about a fifth of the $336 million that courts have ordered under a lengthy litigation with the state's school districts. A possible settlement is under discussion.

Senate President Andy Biggs blamed protests by thousands of teachers, students and parents outside the Capitol March 4 on "bad information" from the press.

"We will be spending more than we have ever spent before on K-12 education, and I'm told that that's a cut," said Biggs, a Republican from Gilbert. "That is really hard to understand."

Begay, acknowledging the anger directed at him by fellow Democrats, said he voted reluctantly for the spending measures because they included $1.2 million in infrastructure funds on the Navajo Nation and other outlays for his district.

With $2.5 billion of lease-revenue certificates outstanding, Arizona has issuer credit ratings of AA-minus with a stable outlook from Standard & Poor's. Moody's Investors Service has a positive outlook on its Aa3 rating.

For reprint and licensing requests for this article, click here.
Arizona
MORE FROM BOND BUYER