Brewer calls special session

Gov. Jan Brewer has called the Legislature into its fourth special session of the year to deal with a handful of unfunded agencies, a settlement with Science Foundation Arizona, the Rio Nuevo development district and the state’s anti-deficiency statute.

The call was issued at about 12:39 p.m. on Nov. 17, and the Legislature will convene at 3 p.m.

The special session call stated that lawmakers can address “adjustments necessary to address the state budget for the entire fiscal year 2009-2010, including fee adjustments for state agencies.” Brewer’s veto of a budget bill in September left a handful of agencies, including the Department of Revenue and Arizona Corporation Commission, without adequate funding, and lawmakers will restore the funding they had approved for those agencies in August.

The Legislature is expected to consider a plan that will eliminate about $459 million of the $2 billion deficit facing the state in fiscal year 2010, including $155 million in cuts to the Department of Economic Security and $144 million in cuts to K-12 education. The reductions will offset similar cuts vetoed by Brewer after an August special session.

The draft bills also contain a provision replacing $18.5 million the Legislature swept from the 21st Century Fund, which was created to attract high-tech companies to Arizona. Science Foundation Arizona, which manages the fund, sued the state over the fund sweep, and replacing the money would put an end to the ongoing litigation.

Additionally, lawmakers are expected to make changes to the Rio Nuevo development district in Tucson, including a new makeup for the district’s board of directors. According to Tucson city lobbyist Jason Baran, the board likely will be increased to nine members from four. Five will be appointed by the governor and two each by the House speaker and Senate president, as opposed to the existing system in which the cities of Tucson and South Tucson each appoint two members.

Other expected changes to Rio Nuevo include performance audits by the state Auditor General’s Office every three years, in addition to the district’s annual financial audits, and requirements that the district post some financial statements and summaries on an online database, Baran said.

The anti-deficiency law that the Legislature will address was passed in the 2009 regular session that required homeowners to live in a house for at least six months before qualifying for protection from lenders who suffer financial losses when the home is foreclosed on. The law was passed to target speculators whose foreclosures were taking a heavy toll on local banks, but was repealed in special session amid concerns that it could be used against legitimate homeowners as well.