On April 9, 2020, it was reported that the Arizona Treasury, due to the probable sharp reduction in tax receipts because of the Coronavirus, maybe as much as one billion dollars in the red.
According to reporting from AZ Central and Yellow Sheet, this shortfall (which may be considerably less than the worst-case scenario,) would be just under $640 million in the fiscal year 2020 and just over $460 million in 2021.
While this is serious and prudent planning must be undertaken to address the situation under multiple fiscal scenarios, what can not be allowed is the fringe right to frame this situation as a rationale to cut spending or reduce vital investments in areas like public health, education, affordable housing, KidsCare and Medicaid, infrastructure, and election security.
The fringe right pulled this stunt in 2010 and K-12 schools still have not had their funding properly restored.
This cannot be allowed to happen again.
People need to be aware that Arizona has numerous resources it could utilize to make up for the shortfall. Those include all or portions of:
- The State Rainy Day Fund which is just under a billion dollars.
- Federal Stimulus programs. The most recent one, with many strings attached, will be helpful to many sectors of the state economy and public institutions like schools and health care. Additional federal economic stimulus or stabilization legislation that is currently being negotiated will help as well.
David Lujan, the Director of the Arizona Center for Economic Progress, issued a statement on April 15, 2020, which read in part:
“During the Great Recession, Arizona’s lawmakers cut public education and health care, swept funds for affordable housing and state parks, and used budget gimmicks like selling off state buildings. Despite over a decade of economic recovery, many of those cuts have still not been restored. Arizona lawmakers must respond to this economic crisis with good stewardship of existing revenue by stopping all new tax cuts and raising new revenue by reversing some of the previous tax cuts so that corporations and the wealthy pay their fair share. Congress must also act to provide even more fiscal relief to help states balance their budgets.”
“Arizona’s workforce and economy will recover, but how quickly depends on the path lawmakers take for navigating out of this budget shortfall.”
Arizona Public Servants should channel all the resources readily available to them first before going to the people and asking them to support budget cuts.
Do not fall for the Fringe Right propaganda again.
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