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Budget Revision Still Leaves out the Basics?

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Thursday, August 20, 2009   

Phoenix, AZ - Social service organizations are watching the state budget process closely as lawmakers and the governor face off over a proposed temporary hike in the sales tax. The latest budget proposal from Arizona lawmakers would balance the budget with the repeal of a statewide property tax, but it would also not include the sales tax increase, which Gov. Jan Brewer has demanded to be placed before voters on the next ballot. Many hoped the additional sales tax revenues would protect funding for education, public safety and health.

Emily Jenkins, president of the Arizona Council of Human Service Providers, says leaving out the governor's request is a missed opportunity because the state currently can't properly fund even basic services for education, mental health, child protective services and prisons.

"Democrats and the Republicans need to look at a sales tax that could be implemented quickly and generate money right away."

The Tax Foundation ranks Arizona 41st in state and local tax burden. Jenkins says that disproves the idea that Arizonans are overtaxed.

"We already have a pretty low set of taxes compared to other states. I think it's crazy to be cutting taxes right now, especially the property tax, when there's nothing else guaranteed to come in to offset it."

Severe budget cuts enacted earlier this year have already devastated state services and reversed earlier progress in meeting human needs, she adds.

"Given the stripped-down budget that we are now looking at, we wouldn't be able to meet our 2006 population numbers, much less the population numbers that we have now."

The latest budget revision still contains nearly a $2-billion deficit, which will continue next year after federal stimulus money has run out. Jenkins says lawmakers should concentrate on the immediate dire need to boost state revenues and leave consideration of other tax changes until next year. Legislative leaders say any tax increase now could further damage the state's already depressed economy.




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