Special Session Update: Budget Transmitted to Governor, The Clock is Ticking

Posted by AzBlueMeanie:

“The definition of insanity is doing the same thing over and over again and expecting different results” — Albert Einstein

The GOP insane clown posse transmitted to the Accidental Governor the same budget package on Thursday that she vetoed on July 1 in hopes the move will produce a different result.

Insanity.

In sending the bills to the governor, lawmakers started the clock ticking: The Arizona Constitution gives her through Wednesday to decide whether to sign or veto each of the bills or allow them to become law without her signature. Legislators send state budget plan to governor Late Thursday, Brewer's spokesman Paul Senseman said the governor would likely announce her plans today. Budget plan still lacks tax referral "The governor does remain strongly committed to additional revenues for the state," he said.

Maricopa and Pima Counties indicated earlier in the week they would send property tax assessments to the printers on Friday.

State Treasurer Dean Martin warned earlier this week that Arizona will run out of operating cash sometime in October, with or without a new state budget. That’s because the total of what the state owes in obligations on specific dates during the fiscal year at times can exceed what already has been collected in taxes to that point. Legislators send state budget plan to governor

Martin said banks are willing to give Arizona a line of credit — but only if the state has adopted a budget.

Complicating matters, the failure to adopt a budget was one reason that Standard and Poor’s put Arizona on a credit watch, the first step toward a possible downgrade of the state’s AA rating. Martin said just that act alone will result in lenders demanding higher interest rates on that line of credit.

"The governor continues to have meetings with legislators," Paul Senseman said, in an effort to see if there still is a chance they will approve sending the tax hike to the ballot. Budget rejected by Brewer is back again. But:

State Elections Director Jim Drake said the legal deadline for lawmakers to set the Dec. 8 election Brewer wants is Sept. 8. But for all intents and purposes, there now is no chance of an election that day.

Maricopa County Elections Director Karen Osborne said the company that manufactures the special ballot paper told her it needed to have an order placed no later than today. But legislators do not return to the Capitol until Tuesday.

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Maricopa County's paper problems could still be addressed if the election were pushed back one week. But Osborne said that may not be an option as some of the churches that serve as polling places are not available because of Christmas pageants.

The GOP insane clown posse insists upon linking the Accidental Governor's sales tax increase proposal to their proposal to cut corporate income taxes by 30 percent and individual tax rates by 6.6 percent beginning in 2011, adding some $400 million to Arizona's structural deficits in the future.

The Arizona Guardian reports a Potential for bipartisan solution pitched to Brewer as she weighs her options (subscription required):

Several moderate Senate Republicans are working on the outlines of a bipartisan budget deal as Gov. Jan Brewer decides whether to sign or veto a spending plan she has called “fatally flawed.”

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On Tuesday, she met with GOP Sens. Barbara Leff, Jay Tibshraeny and John Nelson about the potential for a deal that would include about eight or nine Republicans and an equal number of Democrats.

Senate Democratic leaders have said that three of their members are steadfast no votes against the sales tax referral. That leaves nine who might be willing to deal, if the bill included language that prevented the estimated $2.5 million in tax proceeds from being used to fill new cuts, as well as provisions to protect low-income taxpayers.

The governor had a separate meeting this week with newly installed Senate Majority Whip Steve Pierce, who sources said could lead a bipartisan Senate team through new budget negotiations. Pierce has said he believes the two parties should be working together.

The key question is whether Senate President Bob Burns would even agree to facilitate a bipartisan deal, and whether such a plan could get through a Senate committee.

The House, meanwhile, would have its own problems as Democrats and Republicans there have had considerably icier relations — particularly since GOP leaders abandoned bipartisan talks late last month.

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During private meetings with lawmakers this week, Brewer expressed her frustration at the Senate’s failure to pass the tax plan and listened with interest to broad outlines of a potential bipartisan compromise.

But anything that might emerge would have to be shopped around to see if there’s even a chance at 16 and 31. And a deal that can’t win support from Burns and House Speaker Kirk Adams, along with key committee chairs, would likely be dead in the water.

Leaders from both parties who participated in bipartisan talks last month said they had gotten within $500 million of a solution to fiscal 2010’s $3.1 billion deficit. But that last chunk was daunting because it required new revenue and, before any substantive talks were held with the Democrats, the GOP bolted for a deal with Brewer.

The foundation exists for another veto followed by bipartisan budget negotiations. But the clock is ticking and time is running out.

UPDATE: The Arizona Guardian (subscription required) reports "For the first time since she took office, Gov. Jan Brewer sat down Friday with leaders of all four legislative caucuses to talk about the 2010 budget crisis." Elusive "five-party talks" begin; Brewer could get 10-day reprieve on budget About friggin' time!

"The discussions could be the beginnings of full-blown negotiations on a bipartisan budget compromise leading to approval of a 1-cent sales-tax hike referral, the centerpiece of Brewer’s budget plan."

"The plan Friday was to keep talking over the weekend and then adjourn sine die on Tuesday, ending the special budget session and invoking a rule that gives Brewer an additional 10 days to sign the bills. Without adjournment, she must act on the bills by Wednesday."