Report shows Arizona faces $400 million budget shortfall by end of the year
PHOENIX (3TV/CBS 5) - According to an analysis published by the Joint Legislative Committee, Arizona faces a $400 million budget shortfall at the end of the year because of declining income and sales tax collections.
The economic projections represent a sharp financial reversal from several months ago when the state was expected to run a modest $10 million surplus. The potential deficits have predictably sparked a partisan debate in the narrowly divided Legislature over how to fix the state’s finances.
“When it comes to cutting the upcoming budget, we should look to things that are currently wasteful. The out-of-control spending in the voucher program comes as something we should absolutely look at,” said Rep. Seth Blattman, a Democrat from Phoenix. He was referring to Arizona’s universal school voucher program that allows parents to send their kids to private schools with taxpayer money.
This week, Governor Katie Hobbs warned again that the state cannot afford to pay for the growing program that now has more than 68,000 students enrolled. She also raised questions about wasteful spending. Republicans are unlikely to go along with any effort to cap or cut funding for vouchers, given it is one of the GOP’s top issues.
GOP leaders have rejected the governor’s characterization of the voucher program, claiming enrollment remains on track and the Arizona Department of Education is expected to run a $77 million surplus
Rep. David Livingston, Chairman of the House Appropriations Committee, suggested he’s looking to cut state spending in other areas. “I am focused on government efficiencies and thoughtful, targeted solutions,” the Republican lawmaker from Peoria said in a statement. “The state has managed deficits before, and we will do it again.”
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