Special Session Day One: A rare moment of Zen (kinda)

Posted by AzBlueMeanie:

The only real surprise from the first day of the Special Session was how quickly the rank hypocrisy of the GOP Caucus was exposed. The all-in gamble by the Accidental Governor aka "Big Casino" by vetoing the entire K-12 budget and thus jeopardizing a July 15 payment to charter schools, a GOP sacred cow, and federal stimulus funds paid off. Everyone at the table folded their hands and she took the pot. Keep in mind, however, that this was only the first hand. This game is far from over.

The Legislature voted unanimously in a rare bipartisan fashion to:

– restore the $220 million in education cuts and sweeten the pot by another 2-percent or $100 million; there is also an October 1 "trigger" which will restore all cuts to education if a budget is not adopted by that date (that would mean school districts would be free to spend up to $175 million in “soft capital” costs, such as equipment);

– restore funding to the state Medicaid insurance program;

– all for the purpose of preserving $2.3 billion in "socialist" federal stimulus funds for education and health care that GOP legislators opposed earlier this year because of the base-line funding requirements; and

– failed to identify any new revenue sources to pay for this increased state spending, thus deepening the budget hole.

Monday's agreement was hammered out by an effort of the majority Republicans and minority Democrats. It's the first time since January that Democrats have been involved in budget talks. With school funds OK'd, state now eligible for stimulus The potential loss of 2.3 billion in federal stimulus funds brought Republicans and Democrats together in unanimous agreement on a four-bill package that passed smoothly in a rare moment of Zen.

The Accidental Governor prematurely claimed "victory" (i.e., over her own GOP legislators) after winning the opening hand. Governor, this game is far from over. The state budget remains more than $2.1 billion in deficit.

Sen. Linda Lopez, D-Tucson, noted Monday's action deepens the budget hole and increases problems for fiscal 2011.

"We need to generate revenue," she said. "And I have seen nothing yet to talk about how we're going to generate revenue."

Her feeling was shared across the aisle.

"This budget is an empty promise," said Sen. John Huppenthal, R-Chandler. "The cash isn't there to back it up."

Sen. Steve Pierce, R-Prescott, predicted the state will fall off a fiscal cliff as soon as December, as state tax collections continue to lag spending.

The Special Session remains open. The Legislature has adjourned for now, but it will be back July 13 to resume the Special Session. Legislative leaders from both parties are planning to meet July 8 to decide their next step. "Four budget bills pass unanimously; much work remains," Arizona Capitol Times (subscription required). The Legislature isn’t planning to schedule any budget hearings until an agreement can be reached among lawmakers. Democratic support could help Republicans overcome any veto by Brewer.

For months now all we have heard from Republicans is that our budget crisis is due to "excessive" government spending on programs that the state does not have the money to support. Hello kettle — meet the pot. We are all "the spending lobby" today. We are all "socialists" today. Not another word from Republicans – your rank hypocrisy has been laid bare and exposed for all the world to see in the harsh glare of the light of day.

On the revenue side, there may be some movement toward referring the one-cent sales tax increase to the ballot in a Special Election. Saying that legislators had failed to make "significant cuts" to the budget, Senate President Bob "Bluto" Burns said that he is ready to refer a tax increase to the fall ballot. With school funds OK'd, state now eligible for stimulus Even Sen. Russell Pearce, R-Mesa, a foe of increased spending, said Monday he would consider referring the matter to the ballot. But his motives are far different than Brewer’s: He believes the election will show that voters don’t want higher taxes. State lawmakers restore K-12 funding

If the sales tax increase loses at the polls, the GOP insane clown posse will then say "See, we told you. The public doesn't want to pay more taxes for education and health care and public safety." They will then take out their chainsaws like a scene from Texas Chainsaw Massacre or Saw and start cutting state programs deep into the bone. The floor of the Legislature will turn into a slaughterhouse.

The Legislature has a short deadline to refer any sales tax measure to the ballot. There has been an assumption that July 31 is the "drop dead" date to refer the matter to the ballot for November 3. But in an interesting revelation today, Maricopa County Elections Director Karen Osborne said her office cannot conduct an election on Nov. 3 unless lawmakers approve the plan by July 16. State lawmakers restore K-12 funding | Arizona Legislature If Osborne is correct, and this needs to be confirmed, when the Special Session resumes on July 13 as scheduled lawmakers will only have three days to act.

Someone should tell House Appropriations chair John Kavanagh, R-Fountain Hills, who is under the impression that a budget resolution can wait until "the end of August."

Complicating any final budget deal are Republicans who want something in return from the Accidental Governor for referring her sales tax measure to the ballot.

“If we are going to incur the economic damage of a sales tax increase, what major significant reform do we do to offset that?’’ asked Sen. John Huppenthal, R-Chandler.

One option, he said, would be to replace the graduated individual income tax system with a single flat-rate tax, a Republican favorite. But he said that isn’t the only choice.

“There’s got to be some offsetting thing that moves the ball down the field,’’ Huppenthal said.

I guess "Hoop" wants to get in a final round of dickishness as a warm-up for his trial over a tussle last year with a 78-year-old woman who attempted to stop him from yanking down a Democratic yard sign he didn't like. Huppenthal misdemeanor trial to begin July 29 Picking on old ladies not enough dickishness for ya, Hoop? You have to behave that way towards everyone in Arizona?