Deficit could bring more education cuts
From ABC15, another reminder of how important this election is:
Arizona’s revenue projections continue to fall and some lawmakers say that could mean massive cuts to education despite the state’s new sales tax increase.
The budget deficit could grow to more than $700 million this fiscal year, according to new budget records. That will add to the $1 billion shortfall estimated for 2012.
“The economy is at a critical state,” said Treasurer Dean Martin. “It’s hitting the bottom.”
Rep. Kyrsten Sinema, D-Phoenix, said that in order to make up the difference, cuts in next year’s budget for education could reach $1.5 billion — $1 billion from K-12 and $500 million from universities.
“That would decimate the system,” she said.
But that’s something Arizonans have heard before. In fact, taxpayers approved a one-cent sales tax increase in May to protect the state’s education department from widespread cuts and teacher layoffs.
The sales tax was supposed to bring in an extra $1 billion a year.
But the sluggish economy still has consumers buying less. And only two months into the fiscal year, tax revenues are already tens of millions behind pace.
That will make lawmakers’ jobs even more difficult in January when the legislature returns to session.
Voter mandates protect almost two-thirds of the state’s budget from being decreased, and that means the meat of the cuts must come from education, public safety and social services.
Since the recession began in 2007, lawmakers have had to adjust for a combined $12.5 billion in deficits, records show.
But that’s not a true total of actual cuts.
Fund swaps, extensive borrowing, state property sales and other financial maneuvers have allowed the state to get by with only $2.2 billion in permanent spending reductions.
However, all those gimmicks are gone, Martin said.
The treasurer anticipates that lawmakers will be more aggressive in making cuts next year once the election passes.
If they do, Martin said it will speed up recovery and get Arizona’s budget back in the black in four to five years.
“For years, they have been just picking at the band-aid,” he said. “Just rip it off and that will solve the problem quicker.”
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