REVENUE RISE DOESN'T MEAN MORE SPENDING

posted by Michael Chihak

Arizona state tax revenues are up, but optimism is still minimal in the Legislature for increased spending.

Gov. Jan Brewer's office reports steady and consistent growth that has exceeded projections for the last six months, with the expectation that it will continue. On that basis, she wants to add back some spending for education and prisons.

"Revenues have started to rebound in the state, thank goodness," said John Arnold, director of the Governor's Office of Strategic Planning and Budgeting. "We went through a very difficult time where we lost over 30 percent of the total revenues for the state general fund."

Arnold commented in an interview for Friday's Arizona Week.

Arizona Senate President Steve Pierce, also in an Arizona Week interview, acknowledged that revenues are rising, but he said not at the rate the governor's office projects. Thus, Pierce said, saving and not more spending is the prudent approach for jow.

"We would like to be cautious in the money we spend now and hold some over for next year," Pierce said. " ... We don't want to spend it right now or commit it. We want to hold it until next year."

Negotiations between the governor's office and the Legislature are expected to begin soon to work out details of the state budget.

See Arnold's and Pierce's interviews and an interview with Sen. Paula Aboud, a Tucson Democrat, tonight on Arizona Week, 8:30 p.m. MST on PBS-HD6.