Banzai Brewer: I cannot let the state commit hara-kiri

Posted by AzBlueMeanie:

When Jan Brewer was in the state legislature she was always good for a "crazy quote" in the local media (I encourage our media villagers to review their archive files for a "best of" series). Brewer was always shooting her mouth off with out-of-context references or outrageous statements that occasionally landed her in hot water. Some things never change.

Brewer has vacillated since taking office in late January on whether to release a detailed budget plan, but she told reporters that circumstances are forcing her hand.

At her Friday press conference, Brewer vowed she won't let the state commit fiscal suicide and said she will release a proposed state budget next week for the fiscal year that begins July 1. That budget faces a projected $3 billion shortfall on $10 billion of spending. kphotv5.com

"I cannot let the state go out and commit hara-kiri, and I won't let that happen" Brewer said Friday, referring to the Japanese ritual suicide by disembowelment.

"We still are going to have to make cuts, but I cannot sit by and allow certain portions of government — that being health care, hospitals, foster children, education — to be decimated," Brewer added.

Banzai! Look at Lege. The next thing you are about to hear from the Governor's office is "Tora! Tora! Tora!"

The Joint Legislative Budget Committee staff's monthly revenue report said few options are available this late in the current fiscal year to close the potential $200 million shortfall.

One is to simply end the fiscal year with a shortfall but commit to closing it in the next state budget, the report said.

"While the state is generally thought to have a balanced budget requirement, the Arizona Constitution does permit the state to address any year-end shortfall in the next fiscal year," the report said.

A year-end deficit "could have a negative impact on the state's credit rating," but that could be lessened if the state demonstrates a commitment to resolve the shortfall, the report added.

Mike Braun, a top legislative staff attorney, said constitutional provisions combine to give the state leeway to end a fiscal year with a deficit because of the possibility that revenue and expenditure projects are off.

"We think you have to take care of it in the next fiscal year," said Braun, Legislative Council director.

Braun and a senior legislative budget official said they didn't know if the state has ever ended a fiscal year with a deficit.

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[T]he report said there are limited opportunities left to defer expenses, largely because that course has been done several times already. And Brewer's application for federal stimulus money for the current year covers only the $250 million already budgeted, the report said.