Brewer optimistic as budget negotations continue 

Legislative leadership met Tuesday (July 28) morning with Gov. Jan Brewer as talks continued over a possible budget deal that would include a ballot referral for the governor’s temporary sales tax increase.

Brewer met with Republican lawmakers a day after 12 budget bills were introduced in the Senate. Brewer said she is hopeful that they’ll reach an agreement this week.

“We met with leadership in the House and the Senate, along with some of their members, and discussed where we’re headed. And it’s been indicated to me that we have some positive things in the making,” Brewer said. “Hopefully sometime this week we’ll come to an agreement and we will get a balanced budget passed out of the Legislature that will garner my signature.”

In addition to the sales tax increase, Brewer said they are also discussing ballot referral for reform of Proposition 105, which strictly regulates the Legislature’s ability to change voter-approved spending mandates. Prop. 105 reform was one plank of the five-point economic plan she unveiled in March.

“We’re discussing that, and, whether it be permanent or temporary or whatever, we believe is right for the state of Arizona,” she said.

Despite other tax proposals being talked about in the Legislature, including a proposal to implement a one-cent increase the first year of the tax hike and decrease the amount in succeeding years, and a Democratic plan to lower the sales tax rate while expanding the base of taxed products and services, Brewer said she is still committed to her plan, which would raise the sales tax rate by one cent for three years.

Brewer said previous tax proposals, such as decreases in the corporate and individual income tax rates, as well as a lower property tax assessment ratio, are still under discussion. However, a flat-tax proposal that was floated to appease conservatives late in the regular legislative session does not appear to be in play.

“The flat-tax has not been brought forward,” Brewer said.

If Brewer and lawmakers want to put the one-cent sales tax increase on the ballot in November, they may be running out of time. Brewer said she would be disappointed if the election were not held in November, when municipal elections are scheduled throughout the state.

“The clock is ticking and the sooner we could get it out to the voters and let them decide makes our job a lot easier because we need to know what revenue we will have in order to balance that budget. And certainly whatever the voters determine, we will abide by,” Brewer said.

Twelve bills were introduced in the Senate on July 27, and Senate President Bob Burns said the proposal being considered would essentially implement Brewer’s five-point plan, which includes a ballot referral for her tax increase proposal.

Prior to the afternoon budget talks on July 27 between the governor and lawmakers, Brewer told the Arizona Capitol Times that she liked what she had seen so far from legislative leaders, and would continue to analyze their proposal.

“They gave me an indication of what they believe they can do to get the budget out, and I said that that sounded okay to me, and that we would take their presentation and review it, analyze it and that we would get back together later today and decide exactly what it is that I agreed with and what I didn’t agree with,” she said.