The Department of Financial Institution has reported a 15-percent reduction in its budget this year would make it impossible to achieve its core function and render the agency ineffective.
The agency regulates Arizona’s banks, credit unions and mortgage lending.
Gov. Jan Brewer has asked all state agencies to submit a plan showing the impact of a 15-percent reduction in their budgets.
To achieve a $482,000 budget cut this year, the department would have to fire 18 employees, reducing its staff to 21 full-time positions, according to the plan submitted to the governor. The department used the word “sunset” to describe the impact the cuts would have, meaning it essentially would be shut down.
Additionally, six employees who are paid from non-appropriated funds would be laid off, effectively reducing the size of the agency’s workforce by half, the department noted.
Hardest hit would be the agency’s examination team, possibly leaving only five staffers to examine about 3,700 license holders.
In addition to layoffs, the department noted it will have to shut down its Consumer Affairs and Credit Union divisions.