Taxpayer Group Lauds AZ Appropriations Budget Plan

Pearce and Kavanagh offer “good path” to balanced budget

PHOENIX—The Arizona chapter of Americans for Prosperity congratulated the appropriations chairmen of the state Legislature for offering a budget plan yesterday that would put the state on a “good path” to a balanced budget.

The plan, offered by Senate Appropriations Chairman Russell Pearce (R-Mesa) and House Appropriations Chairman John Kavanagh (R-Fountain Hills/Scottsdale) would reduce Fiscal Year 2009 spending by $785 million and reduce FY 2010 spending by $2.2 billion. The plan includes no tax increases and no long-term borrowing.

“The Pearce-Kavanagh plan is the only plan on the table that would bring the state’s massive budget deficit under control and thereby put Arizona onto a path of strong economic growth,” said AFP Arizona director Tom Jenney. For AFP Arizona, the only major drawback to the plan is that it assumes the state will not refuse $400 million annually in federal bailout money.

By contrast, departing Gov. Janet Napolitano’s budget plan claims to reduce spending by a total of $975 million for FYs 2009 and 2010, with the remainder of an optimistically projected deficit shortfall covered by borrowing heavily, increasing property taxes, and relying on the projected federal bailout money.

If legislative majorities pass the Appropriations budgets for FY2009 and 2010 in their present form, they will receive maximum points for budget votes on AFP Arizona’s 2009 Legislative Scorecard. Budget votes will count for over half of the total points on the Scorecard.

Summaries of the Appropriations Budgets are available at the Joint Legislative Budget Committee website: http://www.azleg.gov/jlbc/AppropsBudgetOptions011509.pdf

For a chart showing the projected effects of the Appropriations Budgets on the state’s deficit crisis, go to: http://www.americansforprosperity.org/files/azgenfundapprops01152009.pdf

To read AFP Arizona’s scoring guide memo, use this URL:

http://www.americansforprosperity.org/files/afpazscorecardmemo010809.pdf

Americans for Prosperity (AFP) is a nationwide organization of citizen leaders committed to advancing every individual’s right to economic freedom and opportunity. AFP believes reducing the size and scope of government is the best safeguard to ensuring individual productivity and prosperity for all Americans. AFP educates and engages citizens in support of restraining state and federal government growth, and returning government to its constitutional limits. For more information, visit www.americansforprosperity.org