We're well into 2010 and the Arizona legislature continues to look for answers to the state budget deficit for FY 2009-10.  And then there's next year's even-larger deficit looming over a critical election year.

While SEIU State Employees are on the front lines of budgetary decisions, all public service employees are affected by financial decisions made at the State Capitol.  State shared revenues are an important source of funding for cities and counties across the state.

Check back here for updates on state budget news and keep an eye on our State Employees section for news and information about what SEIU State Employees are doing to preserve jobs and services.

AZ Senators Against Brewer's Sales Tax Increase

9 March 2010 - Sens. John McCain and Jon Kyl issues a joint statement yesterday declaring their opposition to a temporary one-cent increase in the state sales tax, a revenue-generating proposal promoted by Gov. Jan Brewer.  Arizonans will decide the issue in May.   Read more ... 

Brewer Proposes Drastic Health Care Cuts 

25 Feb 2010 - Gov. Jan Brewer has proposed a series of health care cuts that would result in the loss of as many as 42,000 jobs and nearly $3 billion in federal matching funds, according to an Arizona State University study commissioned by the Arizona Hospital and Healthcare Association.

Among other things, her proposal would ask voters to reduce the number of people eligible for AHCCCS and would eliminate KidsCare which currently provides health care coverage to 63,000 children of working parents, according to the Arizona Republic.  Read more ...

Cut Spending or Increase Revenue?

19 Feb 2010 - It depends on what kind of Arizona we want.  George Cunningham, a state budget expert, says state leaders need to have an honest debate abour spending priorities and where we want to be once the economy recovers.  Read more ...

House OKs Sales Tax Vote

4 Feb 2010 - Arizona voters will have a chance to vote on a penny-per-dollar sales tax increase after the House of Representatives voted 34-25 today to place the issue on the May 18 ballot.

The governor had asked legislators to pass a bill authorizing the increase but both the Senate and the House voted to put the question to voters.  If voters vote for the increase, the state sales tax will increase to 6.6 cents on the dollar on June 1.

The sales tax would be temporary, lasting three years, and would bring in an estimated $900 million in annual revenue.  Read more in the Arizona Republic and the East Valley Tribune.

Senate Votes to Put Tax Increase Question on Ballot

2 Feb 2010 - In a 16-12 vote today, the state Senate voted to put the issue of a 1-cent sales tax increase on the May 18 ballot.   Read more ...

Pay Cuts May Not Happen

2 Feb 2010 - Rumor has it that a "compromise" budget proposal that includes alternative ideas from both sides of the aisle is making the rounds at the State Capitol.

According to a story in the Arizona Republic, the compromises include several permanent and temporary tax increases and a hefty corporate tax cut - but this year's budget would be balanced at last and the governor's proposed 5 percent pay cut for state employees would not be necessary.

Hospice Care Funding Eliminated in State Budget

1 Feb 2010 - State money used to match federal funds to pay for hospice care for terminally-ill Arizonans was eliminated from the 2009-10 state budget and hospices may have to re-pay money provided by AHCCCS in the second half of 2009.

The average daily cost for hospice care is about $140, according to a story in the Arizona Daily Star.  If low-income patients have to go to the hospital instead, which could cost as much as 10 times more.

The cuts are "a knee-jerk reaction to saving money in the short term," said Marie Fredette, executive director of the Tempe-based Arizona Hospice & Palliative Care Organization. "In the long term, it's going to cost millions."

AZ House Finds New Way to Lose Revenue

29 Jan 2010 - Faced with a growing budget deficit that is currently estimated at $5 billion, the Arizona House approved a bill Thursday to further cut corporate and personal income taxes and provide rebates, payments and tax breaks to businesses that move to, or expand in, Arizona.

 SEIU Arizona director Scott Washburn said that while he shares the bill's goal of bringing more jobs to the state, "cutting general fund revenues at a time when basic services are already being slashed will make Arizona a less desirable place for business relocation and expansion."     Read More ...

 
Budget Alternatives Call for Additional Staff Cuts

27 Jan 2010 - State budget staff have presented legislators with $8 billion worth of budget alternatives that could be implemented over the next two years, including a 10 percent cut in state employee costs in 2011.  Read all about it ...

Special Session to Put Sales Tax Hike on Ballot?

26 Jan 2010 - Since the state legislature is unable to corral enough votes to make the decision to increase the state sales tax on its own, it may have to hold a special session before mid-February to put the question to voters on the May 18 ballot.  Read all about it ...