Avoiding Arizona’s Fiscal Train Wreck
By Bob Burns and Russell Pearce
Arizona has the largest budget deficit in the country, and the growing gap between state tax revenues and projected spending will soon force the state government into a gigantic fiscal train wreck.
For Fiscal Year 2009, which begins on July 1, Gov. Janet Napolitano and the liberal majority in the Legislature want to spend $11.4 billion. The amount of tax revenue available to spend is $9.4 billion. That leaves a gap of $2.0 billion.
The Governor has proposed a variety of approaches to the deficit, including a $500 million increase in unconstitutional debt, a $90 million increase in traffic-camera fines, and a $60 million shift in prison burdens to Arizona counties.
Combined with a $300 million K-12 rollover and a $200 million payment from the Rainy Day Fund, her approaches would reduce the deficit by roughly $1.2 billion—still nearly a billion dollars short of closing the gap. In the real world, there are only three possible solutions to the deficit:
1) Raise taxes.
This is the worst option. Arizona families and businesses already labor under heavy tax burdens, and a recession is a bad time to make those burdens worse. Even so, the Governor has already proposed increasing state property taxes by $250 million, and is heading up an effort (the TIME Coalition) to increase state sales taxes by 18 percent.
2) Increase (unconstitutional) debt.
This is another bad option. Increasing debt usually means increasing future taxes. Further, the debt service payments required for the Governor’s proposed debt schemes would soon be over $200 million a year—meaning that the fiscal holes in 2010 and beyond would be that much deeper. To climb out of those holes, Arizona would have to see spectacular economic growth, with revenue growth of over 15 percent per year for three years in a row.
3) Reduce spending.
According to the Governor’s budget office, state government spending now consumes 7.01 percent of the state’s economy—more than it has at any time since 1980. Our proposal is to reducing spending to more reasonable levels.
We have identified more than $1.5 billion in reductions to state agencies. Combined with the K-12 rollover and a payment from the Rainy Day Fund, those reductions would balance the budget without increasing debt or taxes.
Although it sounds like a lot, $1.5 billion in operating budget reductions to the Executive’s request would take us back to the overall spending levels we had in FY 2007—not exactly the end of the world. Government spending as a portion of the state economy would still be larger than it was in FY 2003, before the Governor and Legislature went on a five-year spending binge.
Further, many of the agency reductions we propose could be avoided if a majority in the Legislature would refer to the November ballot a measure (HCR 2044) by which the voters could give the Legislature emergency discretion to temporarily suspend voter-protected spending mandates. As it is, much of the state budget is on autopilot, with automatic spending increases of over $500 million a year.
Sadly, there may not be enough fiscal conservatives in the Legislature to get $1.8 billion in spending reductions to the Governor’s desk, or to refer HCR 2044 to the ballot. That means large increases in unconstitutional debt. And, if the fiscal train really goes off the tracks, it could mean large tax increases and heavy long-term damage to our economy.
As Americans for Prosperity (http://www.aztaxpayers.org/) has explained, the only good card fiscal conservatives hold in this year’s fiscal-policy poker game is the wild card of grassroots taxpayer activism. With strong grassroots pressure on liberal legislators from both parties, the Legislature would be able to bargain harder with the Governor for spending reductions and refer HCR 2044 to the ballot.
To avoid future fiscal train wrecks, voters must enact a firm constitutional spending limit that will keep the government from growing faster than the economy. As the current train wreck shows, the Governor and the liberal majority in the Legislature simply do not have the will to restrain themselves when it comes to spending our tax dollars.
Rep. Russell Pearce (R-Mesa) is the Appropriations Chairman of the Arizona House of Representative, Sen. Bob Burns (R-Peoria) is the Appropriations Chairman of the Arizona Senate.
Showing posts with label Russell Pearce. Show all posts
Showing posts with label Russell Pearce. Show all posts
Friday, May 30, 2008
Wednesday, May 21, 2008
A Message From Russell Pearce
Above: One of the signs we encountered after our trip to the Arizona-Mexico Border.
Below: State Rep. Trish Groe talks to Republican Women on the floor of the House.
Can I call on you to help with getting signatures for Arizona State Representative Trish Groe this Saturday, May 24th? We must turn them in by June 4th.
Trish has been a solid Patriot and supported every single issue, assisting the Minutemen and addressing the illegal alien problem. She has been a stalwart on our issues, such as private property rights, 2nd amendment rights, national security issues, and securing the border. She went to the border with me on April 1st, 2005 for the original Minutemen big kick off.
We need Trish back at the Capitol...she needs your support to get there!
Wednesday, May 7, 2008
Measure would let officers enforce immigration laws
Here is an AZCentral article about the press conference that Senator Gould and I participated in along with Sheriff Joe, Representative Russell Pearce, Don Goldwater, Chris Simcox, and many others in order to urge Speaker Jim Weiers into scheduling this Illegal Immigration Legislation for Third Read in the House of Representatives.
Thursday, March 27, 2008
Illegal Immigration Legislation
NOTE: The following is list of important bills from my good friend, State Representative Russell Pearce, who asked me to pass along this information.
HCR2039 that eliminates ALL sanctuary policies that restrict law enforcement from enforcing immigration law and creates a Trespass provision for anyone that enters or remains in Arizona in violation of federal law.
ENDORSED: Phoenix Law Enforcement Association, NAILEM, along with Sheriff Joe and County Attorney Andy Thomas.HCR2063; the election of Superior Court Judges in Maricopa and Pima Counties like currently exist in the other 13 counties. In Maricopa County after 78% of the public passed Prop. 100 last November, judges set bond for 94.7% of illegal aliens who were arrested for serious felonies all in violation of the Constitution as Amended by 78% of the public. (ENDORSED BY SHERIFF JOE AND ANDY THOMAS AND THE STATE REPUBLICAN PARTY)
HCR2041; This eliminates all affirmative action programs in the state. Does not stop proper exceptions for proper work discrimination. (supported by Andy Thomas and about 80% of the public)
HB2625; Goes after Commercial activities (smuggling, drop houses, etc) and allows the properties to be seized, including vehicles, also requires landlords or renting agents to not knowingly or recklessly rent to any illegal alien with up to $250 per day for any violations.
HB2745; Employer Sanctions HB2745 is strengthening HB2779. In 2007, the Legislature passedHB 2779: fair and legal employment act, establishing the most comprehensive employer sanctions legislation in the country. As is a result with most legislation, it is necessary this year to follow with a clean-up bill in order to clarify any unanticipated, and unintended, consequences of last year's legislation and strengthen the current language. At this time we will continue with the initiatives unless we get a real deal with the folks pushing the illegal employers initiative to drop theirs first. I do believe we have a good law, much stronger than the initiative in many ways, but if theirs pass it will gut our law. (ENDORSED BY EAST VALLEY CHAMBER OF COMMERCE, SEVERAL OTHER CHAMBERS, ARIZONA REPUBLICAN PARTY, AND MANY BUSINESSES AND OVER 80% OF THE PUBLIC)
HB2751; Returns the NO Drivers License to a Criminal violation, so one does not have to release someone with no ID and potential fugitive from justice, etc. Discretion of officer like it use to be (Supported by all of law enforcement)
HCR2039 that eliminates ALL sanctuary policies that restrict law enforcement from enforcing immigration law and creates a Trespass provision for anyone that enters or remains in Arizona in violation of federal law.
ENDORSED: Phoenix Law Enforcement Association, NAILEM, along with Sheriff Joe and County Attorney Andy Thomas.HCR2063; the election of Superior Court Judges in Maricopa and Pima Counties like currently exist in the other 13 counties. In Maricopa County after 78% of the public passed Prop. 100 last November, judges set bond for 94.7% of illegal aliens who were arrested for serious felonies all in violation of the Constitution as Amended by 78% of the public. (ENDORSED BY SHERIFF JOE AND ANDY THOMAS AND THE STATE REPUBLICAN PARTY)
HCR2041; This eliminates all affirmative action programs in the state. Does not stop proper exceptions for proper work discrimination. (supported by Andy Thomas and about 80% of the public)
HB2625; Goes after Commercial activities (smuggling, drop houses, etc) and allows the properties to be seized, including vehicles, also requires landlords or renting agents to not knowingly or recklessly rent to any illegal alien with up to $250 per day for any violations.
HB2745; Employer Sanctions HB2745 is strengthening HB2779. In 2007, the Legislature passedHB 2779: fair and legal employment act, establishing the most comprehensive employer sanctions legislation in the country. As is a result with most legislation, it is necessary this year to follow with a clean-up bill in order to clarify any unanticipated, and unintended, consequences of last year's legislation and strengthen the current language. At this time we will continue with the initiatives unless we get a real deal with the folks pushing the illegal employers initiative to drop theirs first. I do believe we have a good law, much stronger than the initiative in many ways, but if theirs pass it will gut our law. (ENDORSED BY EAST VALLEY CHAMBER OF COMMERCE, SEVERAL OTHER CHAMBERS, ARIZONA REPUBLICAN PARTY, AND MANY BUSINESSES AND OVER 80% OF THE PUBLIC)
HB2751; Returns the NO Drivers License to a Criminal violation, so one does not have to release someone with no ID and potential fugitive from justice, etc. Discretion of officer like it use to be (Supported by all of law enforcement)
Monday, October 8, 2007
Mohave Republican Forum
YOU ARE INVITED--PLEASE COME!
MOHAVE REPUBLICAN FORUM
October 9, 2007 Meeting
Russell Pearce, Trish Groe, Andy Tobin and Others, Speakers at Republican Forum
The public is invited to hear Russell Pearce, as well as Arizona District 3 Representative Trish Groe and District 1 Representative and Paulden, Arizona resident, Andy Tobin at the Mohave Republican Forum 5:30 PM meeting, Tuesday evening October 9, 2007, at the Elks Club in Kingman. Pearce, a fifth generation Arizonan, is exploring launching his campaign for the U.S. House of Representative, District VI, a seat now held by pro-amnesty Congressman, Jake Flake. As a State Representative Pearce lead in the fight against illegal immigration, amnesty, and wasteful spending, and promulgated strong law enforcement. This gathering, open to the public, includes dinner for $10 per person. For information, please call Shirley at 753-5183, or Kathleen at 692-9872, or Laurie at 753-5581.
Pearce, a retired 23 year Maricopa County Sheriff veteran, has in his various roles of service, championed numerous causes beneficial to Arizona’s residents. Pearce believes that Arizona deserves better than the pro-amnesty “sell out” of a portion of the current Arizona Congressional delegation, and that the flood of illegal immigrants with its many unsavory criminal side effects, must be stopped, before it is too late to stop the unwanted consequences.
Representative Trish Groe, will provide a brief legislative update, and comments on other matters, and will be joined by District 1 Representative and Paulden, Arizona resident, Andy Tobin.
MOHAVE REPUBLICAN FORUM
October 9, 2007 Meeting
Russell Pearce, Trish Groe, Andy Tobin and Others, Speakers at Republican Forum
The public is invited to hear Russell Pearce, as well as Arizona District 3 Representative Trish Groe and District 1 Representative and Paulden, Arizona resident, Andy Tobin at the Mohave Republican Forum 5:30 PM meeting, Tuesday evening October 9, 2007, at the Elks Club in Kingman. Pearce, a fifth generation Arizonan, is exploring launching his campaign for the U.S. House of Representative, District VI, a seat now held by pro-amnesty Congressman, Jake Flake. As a State Representative Pearce lead in the fight against illegal immigration, amnesty, and wasteful spending, and promulgated strong law enforcement. This gathering, open to the public, includes dinner for $10 per person. For information, please call Shirley at 753-5183, or Kathleen at 692-9872, or Laurie at 753-5581.
Pearce, a retired 23 year Maricopa County Sheriff veteran, has in his various roles of service, championed numerous causes beneficial to Arizona’s residents. Pearce believes that Arizona deserves better than the pro-amnesty “sell out” of a portion of the current Arizona Congressional delegation, and that the flood of illegal immigrants with its many unsavory criminal side effects, must be stopped, before it is too late to stop the unwanted consequences.
Representative Trish Groe, will provide a brief legislative update, and comments on other matters, and will be joined by District 1 Representative and Paulden, Arizona resident, Andy Tobin.
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