Governor Doug Ducey and Republican leadership in the Legislature made headlines and sparked street protests this week when they tried to ram through a starvation budget that was negotiated in secret.
The wrong-headed budget starved universities with $104 million-dollar in cuts; it stole even more money from K-12 education with a $98 million hit this year and another $157 million hit in the next year; just for fun, it cut an additional $8-15 from TUSD; it crippled job training with $30 million in cuts; it completely defunded community colleges in Pima, Pinal, and Maricopa Counties; it cut provider rates for people who provide medical care to Medicaid/AHCCCS patients by $127 million (which would result in the loss of $588 million of federal funds). And these are just the highlights.
This severe austerity budget will do nothing to grow the economy. It will starve the economy by taking more than a billion dollars out. This means more lay-offs, more bankruptcies, more business failures, more home foreclosures, more poverty, people on on public assistance, more homelessness, more crime, more incarceration, and more people and businesses leaving our state.
When Republicans talk about budgeting, they often give folksy example of a family sitting around the kitchen table to work out the budget and decide together how they are going to tighten their belts and make ends meet. Didn’t anyone at the kitchen table ever say, “Paw, I could get another job to bring in more money”?
Earlier this year, the media speculated how Ducey could possibly keep his campaign promise of balancing the budget without raising taxes and at the same time allow hundreds of millions of dollars in unaffordable planned corporate tax cuts (passed during the Brewer era) to go forward. (Besides all that, there is the court order that said the Legislature unlawfully cut Arizona school funding and should pay back $317 million in this budget and $1.6 billion in the future.)
Earlier this year, Ducey famously said, just because we don’t have enough money, doesn’t mean we need to raise revenue. Why not? Putting money into the economy grows it; taking money out, starves it. Arizona has options besides austerity. We can raise revenue and pay for the services we want: 1) legalize marijuana; 2) establish a public bank; 3) stop implementation of unaffordable tax cuts for out-of-state corporations; 4) invest in innovation.
