On
January 13, the opening day of the Second Regular Session
of the 46th Legislature, the Governor gave her ‘State
of the State’ speech. The speech focused on early childhood
education, the state economy, preserving military facilities,
homeland security and environmental issues.
Budget --
Last year the state faced $1.3 billion in budget deficits
and a stagnant economy. The state was able to balance the
budgets without raising taxes.
This
year, Governor Napolitano is proposing that the state sell
$128 million in state buildings on leaseback arrangements
to make the fiscal 2005 payment of the Ladewig tax refund
settlement.
The
proposal is part of the governor’s recommendations
released Jan. 15 for the state to spend more than $7.2 billion
from the general fund. The governor’s recommendations
carry a potential revenue shortfall of $310 million.
To
make up for the shortfall, Ms. Napolitano proposes a $118
million transfer from the vehicle license tax, a $76 million
adjustment on individual income tax withholding, $33 million
in other fund transfers, a $100 million rollover on state
aid to education and a $50 million sale of state assets to
the State Compensation Fund. The governor’s proposals
total $377 million.
Read
more about the governor’s budget >>
Recall
of Governor will Fall Short – An effort
to recall the governor will most likely fail, according
to the Arizona Capitol News.
