NFIB

Arizona State Budget FY 2009

Issue Overview: The fiscal year 2009 budget begins July 1, 2008. The state Legislature is required to pass a budget by the start of the new fiscal year.

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). The Joint Legislative Budget Committee (JLBC) serves the Arizona State Legislature's Appropriations Committees as a primary support mechanism. JLBC staff's fiscal analysts are responsible for each of the 117 budget units. Besides presenting the JLBC staff's budget recommendation, the analysts provide general analytical support for all Appropriation Committee members. The JLBC staff is also responsible for drafting the general appropriation bill.

Budget updates
Economic updates

Office of Strategic Planning and Budgeting (OSPB). The Office of Strategic Planning and Budgeting (OSPB) serves the Arizona governor. Their mission is to facilitate the effective and efficient allocation of resources in accordance with fiscally sound principles that will enable the governor and state government to provide quality services to the citizens of Arizona.

OSPB Web site

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

Issue Status: In early January, the legislature started their informational hearings with the state agencies. Over the next few weeks, lawmakers and the governor will be working towards a FY 2009 budget.

On Thursday, Feb. 14, the governor revised her budget projections for the upcoming fiscal year 2009, which begins July 1, 2008. The deficit is expected to be well over $1 billion. Gov. Napolitano offered the following cuts:

• Reduce agency budgets by $124 million
• Use $196 million from the "rainy day" fund
• Borrow $382 million for K-12 school construction
• Delay the June 2009 K-12 payments, estimated to be $594 million, to the new fiscal year
• Sweep from state fund balances by $100 million

Please continue to check back for updates to this issue throughout the 2008 legislative session.

Articles of Interest:
Center for Budget and Policy Priorities: 25 States Face Total Budget Shortfall of at Least $40 billion in 2009 (April 29, 2008)
Arizona Republic: Dithering governor lets budget crisis grow, Feb. 26, 2008
Gov. Napolitano's 2008 State of the State address, Jan. 14, 2008
Arizona Daily Star: Legislators must do what's right for the state
Arizona Republic: Napolitano puts focus on state's Future
Phoenix Business Journal: Arizona budget deficit doesn't dissuade push on property tax cut