‘It’s only make believe’

Posted by AzBlueMeanie:

I warned you about Gov. Brewer's Tinkerbell Tax Plan: Just clap your hands and believe! back in December (Tinkerbell Tax Plan: just clap your hands and believe! – the essence of faith based supply-side "trickle down" conservative economic policies). Just as I predicted, Brewer proposals slash corporate income taxes ("Gov. Jan Brewer wants to slash corporate income taxes and let some corporations escape the levy entirely.")

Yeah, that's how you close a structural revenue deficit — by repeating the mistakes of the past. Arizona's budget pothole has become a Grand Canyon ("The Morrision Institute, in a recent study, figures the accumulated effect of those [tax cuts] reduced state revenues by $1.7 billion. Accounting for population growth and inflation, the study says, raises the difference to $2.9 billion.")

How about a plan to collect the millions in unpaid delinquent taxes owed by businesses in Arizona? No? This governor simply is not serious.

Craig has given you some background and links to supporting documents for Gov. Brewer's Tinkerbell Budget. Governor's proposed budget: tells home owners, poor, students, that she thinks that they're #1….

As Conway Twitty sang, "It's only make believe." The governor's budget and tax plan are based upon false assumptions and faith in a politico-economic theory that has been entirely disproved and discredited over the past decade. She only offers more of the same. It is destined to failure.

So it is disheartening that the Jan Brewer Fan Club at the Arizona Republic is doing such a disservice to the residents of Arizona with nonsense like this: Brewer's agenda can put state on the fast track. Um, sorry but no. Put down the Kool-Aid and check yourselves into rehab.

Let's take a closer look at the make believe and gimmicks in the governor's budget and tax plans. The Arizona Guardian had a very good analysis By Dennis Welch and Bill Bertolino, "Brewer's budget hinges on Obama OK to cut thousands from Medicaid" (subscription required) from which I will draw on some points they made.

The governor laid out an $8.4 billion spending plan for the coming fiscal year on Friday that hinges on the Obama administration allowing Arizona to shed 280,000 patients from its Medicaid rolls.

The move would save the state an estimated $542 million and help shore up a $1.15 billion deficit, according to the governor's office.

But to do that, Obama must first okay the plan since the new federal health care law prohibits states from rolling back coverage…

… hence the reason for today's Special Session in which the governor is seeking authorization from the legislature to request the waiver under the Affordable Care Act.

"It's only make believe" that Brewer thinks the Obama administration is actually going to grant Arizona a waiver and create a precedent for other fiscally irresponsible Tea-Publican controled state governments to undermine its signature legislative reform. It ain't gonna happen.

The other major element of her budget proposal includes slashing state university funding by $170 million, or 20 percent.

The proposed cuts would result in a 46 percent reduction in state funding since fiscal year 2008, said Arizona Board of Regents Chairman Anne Mariucci. Though her response was tempered, Mariucci said: "But make no mistake about it, this latest cut will have a serious impact on university operations, facilities, staff and offerings."

Overall the governor is proposing more than $1 billion in cuts that would result in employee lay offs. Arnold did not say how many jobs the governor's office expects to be lost.

"It's only make believe" that Brewer's proposals will create jobs. Her draconian budget cuts will result in a reduction of public sector employment and a concommitant loss of tax revenue resulting in a worsening revenue deficit. Businesses are not going to relocate to a state that is in the process of dismantling its higher education and adult job training programs simply to avoid raising income taxes on its wealthiest citizens in slavish adherence to a politico-economic ideology.

Remember Jan Brewer's snotty tone toward Terry Goddard about Janet Napolitano's "budget gimmicks" during last fall's campaign? Well, it may be time to rename her "Governor Gimmicks" with her latest proposals:

[Her] plan also includes accounting gimmicks as well as other ways to increase revenue without a tax hike. For example, Brewer is proposing charge a fee to visit inmates in Arizona's prisons.

* * *

[My personal favorite:] She wants a one-day, $330 million loan from First Things First, the agency that provides health services for young children.

It would strictly be an accounting move that would balance the budget on paper. [for one day]

The cash would be loaned on June 30 and be paid back July 1. [resulting in an immediate $330 million budget shortfall]

"It's only make believe." Brewer hasn't balanced a budget before July 1 for the past two years, so I fail to see any utility in this gimmick. What exactly is her point?

Other cuts the governor is proposing include:

* $170 million to the state university system
* $91 million to Department of Economic Security
* $89 million to healthcare providers of Medicaid patients
* $83.7 million to K-12 education
* 72.9 million to community colleges

But not every state department is taking a financial hit in the coming fiscal year. The governor is proposing $8.4 million for the Department of Corrections to hire 100 additional guards. The plan, according to Arnold, is to hire an additional 306 guards over the next three years.

But of course. As we learned last year, the Governor's office is run by lobbyists who are the "pimps for private prisons and profit" in Arizona. They will make sure their clients get everything they want. I consider this a scandal.

The most overreaching element of Brewer's proposals is her attempted power grab against the state legislature. Arizona has always had a weak governor system. The only real power the governor possesses is the power of appointment and the veto pen. Real political power in this state rests with the Speaker of the House and the President of the Senate in formulating the state budget. This is a bold move for a lame-duck governor whose potential successors are already lining up to run for her office.

"It's only make believe" if Brewer thinks that the Legislature is going to give her more constitutional power over state spending (emergency powers over spending, and an expanded line-item veto). This would fundamentally alter the constitutional balance of power in this state giving the governor previously unheard of power over the budget that has been the prerogative of the Speaker of the House and Senate President.

Does anyone really think that Arizona's shadow governor, Sen. Russell Pearce, is going to allow a diminution of his power over the budget? And Arizona voters should think twice about the consequences of giving this kind of power to a potential Governor Russell Pearce in 2014.

Jan Brewer is just not serious about real solutions to Arizona's long-term structural revenue deficit problem. "Clap your hands and believe!" in a failed politico-economic theory is no plan at all. "It's only make believe."