Arizona 2008 Legislative Agenda

Arizona State Budget FY 2008

Issue Overview: The fiscal year 2008 budget began July 1, 2007. With a projected $1 billion deficit for the FY 2008, lawmakers will reassess the FY 2008 budget during the 2008 legislative session.

Issue Background: There are many advisors to the Arizona Legislature and governor to help develop a state budget. Here are the main two groups that assist lawmakers:

Joint Legislative Budget Committee (JLBC)

Arrow BlackBudget updates
Arrow BlackEconomic updates

Office of Strategic Planning and Budgeting (OSPB)

Arrow BlackOSPB Web site

NFIB Position: Historically, NFIB members have supported a well-balanced budget that is fiscally responsible.

Issue Status: In late April 2008, lawmakers and the governor finally agreed on terms to fill the budget deficit for the current fiscal year. Some of the provisions include, but are not limited to:

    • Use of the "rainy day" fund: $487 million
    • Raid of special funds: $300 million
    • Delay payments to schools: Delayed $272 million due to schools June 2008 to the next fiscal year beginning July 1, 2008
    • Reduce university funding: $14.7 million
    • Reduce state agency appropriations


Now, lawmakers move to address the FY 2009 state budget.

Articles of Interest:
Arrow BlackEast Valley Tribune: Lawmakers, Napolitano agree on strategy to balance budget
Arrow BlackArizona Republic: State's budget deficit getting worse
Arrow BlackPhoenix Business Journal: Budget crunch, opposition may thwart Napolitano health push
Arrow BlackPhoenix Business Journal: Governor proposes backup budget plan as critics surface