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ATRA in the News

State Budget Still In Limbo
Governor Calls Lawmakers Back For Another Special Session

KPHO CBS 5 News
March 5, 2010
Jason Barry


PHOENIX -- The state budget crisis rolls on and Arizona Capitol Times reporter Jim Small is not surprised.

He's written story after story about the state's budget mess and knows the issues as well as anyone.

"The choices are either raise taxes higher than proposed, go into debt even further or make major cuts to state spending," Small said.

State lawmakers have chosen option No. 3: major cuts to state spending.

The latest budget proposal calls for more than $1 billion in cuts for fiscal year 2010 and 2011.

Political insider Jaime Molera said the public is just now realizing how many key programs will be affected.

"People are starting to recognize that it's just not having restrooms closed on highways any more," Molera said. "It's parks, health care, K-12 schools."

The proposed budget calls for $385 million to be cut from K-12 education, possibly putting an end to all-day kindergarden.

Another $385 million would be cut from the state health care system leaving tens of thousands of people without health coverage.

Arizona's Department of Juvenile Corrections would be shut down, pushing the burden of incarcerating juveniles to county agencies.

Kevin McCarthy with the Arizona Tax Research Association said if a temporary one-cent sales tax being proposed isn't approved by voters this May, the cuts will run even deeper.

Lawmakers have already begun working on a contingency plan.

"The state is in a multi-year budget problem and unless we deal with it straight ahead and effectively we're going to have budget deficits for years to come," McCarthy said.