NEXT STATE BUDGET: FLAT OR FATTER?

posted by Michael Chihak

Arizona tax revenues could exceed projections this fiscal year by $330 million, maybe even more, as the economy slowly emerges from the recession.

That's put a gleam in some eyes about the next state budget and what ought to be done with it.

Most Republicans agree that much if not all of it should be set aside for the rainy day that's sure to come in a couple of years when the one-cent education sales tax expires. That will leave a $900 million hole in the budget.

Here are some ideas for what to do with at least a portion of the surplus:

• Gov. Jan Brewer says state tourism marketing and promotion spending should be jacked up by $7 million, which House Appropriations Chairman John Kavanagh, R-Fountain Hills, says he is willing to go along with.

• State Senate President Steve Pierce says he prefers to see the entire surplus squirreled away for that "fiscal cliff" coming in 2014.

• House Appropriations Committee member Matt Heinz, D-Tucson, says some of the surplus should be spent on restoring funding for health care for the poor and, perhaps, for education.

On Friday's Arizona Week, we will look at the options and alternatives for the next state budget. Interviews on the program will be with Pierce and Heinz.

Journalists Andrea Kelly of Arizona Public Media, Mary Jo Pitzl of the Arizona Republic and Luige del Puerto of the Arizona Capitol Times will analyze and comment on the coming session.