Pro: Even if the tax is passed, the state must enact additional budget cuts

Arizona Daily Star
April 27, 2010
Larry Lucero

The Arizona Tax Research Association (ATRA) Board of Directors is supporting Proposition 100, the temporary 1-cent sales-tax increase before voters on May 18.

As Arizona struggles with its worst recession since the Great Depression, it comes as a surprise to some that Arizona's oldest and most respected taxpayer organization would support a tax increase at this time.

ATRA's decision to support the tax increase was not an easy one. In fact, for the last year, ATRA conditioned its support for the temporary tax increase on meaningful progress in reducing the state deficit through reductions in on- going spending.

To that end, ATRA believes Gov. Jan Brewer and the Legislature deserve credit for passing a fiscal year 2011 budget that contains real budget reductions.

ATRA's support for the sales-tax increase comes with a word of caution to Arizonans that further budget reductions will be necessary even if Proposition 100 passes.

The 35 percent reduction in general-fund revenue the state has experienced in the last two years has created a budget crisis that Arizona policymakers will struggle with for the foreseeable future.

Clearly, the choices facing state leaders to close the massive budget deficit have not been easy.

However, unlike the budgets developed at the federal level, Arizona must make the tough decisions to bring spending in line with revenues.

Regrettably, each of the last three state budgets contained budget gimmicks that only shifted or delayed tough decisions to future years. From delaying state aid payments for K-12 schools to selling the state Capitol to finance operating expenses, theses gimmicks will haunt future budgets and serve a constant reminder of the importance of a balanced budget.

ATRA supports the temporary tax increase as a management tool that should be used to avoid the use of more damaging budget gimmicks over the next three years.

In return for their support of the tax increase, Arizona taxpayers deserve greater fiscal responsibility at the state Capitol.

Accordingly, Arizona policymakers need to develop a multiyear budget strategy that will restore fiscal stability and ensure a truly balanced budget by fiscal year 2014.

ATRA urges your support of Proposition 100 on May 18.

EDITOR'S NOTE: This week the Star's editorial board will be running daily, paired guest opinions about Proposition 100, the 1-cent-per-dollar sales-tax increase that will be on the ballot on May 18. We've invited proponents and opponents with expertise in business, health care, education policy and more to set out their views on specifically why the tax increase is needed or why it is not a good idea. We're running their views as they were written, edited only for grammar and style. The series will run daily through Saturday.