LEGISLATORS DISAGREE ON USE OF STATE SURPLUS

posted by Michael Chihak

Republicans who control Arizona state government -- and its purse strings -- are beginning to discuss what might be done with the state's growing revenue surplus.

A very tight state budget, following three previous years of significant cuts, has caused teacher layoffs and crowded classrooms, reduced health care for the poor and crowded emergency rooms at hospitals that are absorbing the costs and local governments scrambling to cut because of state-taken revenues.

Now reports are that the state is taking in hundreds of millions more than budgeted. The surplus will be at a minimum $330 million and could go as high as $500 million by the end of the fiscal year June 30.

Here's what political leaders are saying so far:

• Gov. Jan Brewer, who said earlier this year that she fought for more funding for education but couldn't get all she wanted, now says the top priority for spending some of the state revenue surplus should be more money for tourism promotion. She is proposing adding $7 million to the tourism marketing pot.

• Rep. John Kavanagh, R-Fountain Hills and chairman of the House Appropriations Committee, says he wants to proceed cautiously but is included to support Brewer's proposal.

• State Senate President Steve Pierce, R-Prescott, says he wants to save all the surplus and keep next year's budget flat to this year's. His rationale is that the state will need the money by 2014 when the one-cent education sales tax expires and federal health-care regulations begin kicking in with pass-along costs to the states.

• Rep. Matt Heinz, D-Tucson, says he wants to see some of the surplus go to restoring health-care for poor children and childless adults who were cut from the rolls this year.

The legislative session begins Jan. 9 with Brewer's State of the State address. Look for her to outline what she thinks the budget ought to look like and what increases, if any, ought to be made in state spending.

Friday's Arizona Week will look at the possibilities for state spending in 2012.