Quantcast
Home / agencies / Economist: Ariz. spending cuts bad budget choice

Economist: Ariz. spending cuts bad budget choice

An Arizona State University economist says spending cuts proposed by Gov. Jan Brewer to help balance the state budget would subtract more jobs from the state’s economy than the alternative of raising taxes.

Tom Rex says cuts of nearly $1.1 billion from Medicaid and other state programs would cost the state an additional $1.1 billion of state funding, resulting in a loss of 46,700 jobs.

Rex says that compares with a loss of 13,800 jobs if the state raises taxes by $1.1 billion. He says that approach would preserve federal funding and minimize the impact on in-state spending for goods and services.

Brewer won approval of a three-year sales tax increase last year to help balance the state budget. She contends the economy cannot shoulder another tax increase.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

One comment

Leave a Reply

Your email address will not be published. Required fields are marked *

*

 

x

Check Also

Teachers rallied at the Arizona Capitol on May 2, 2017, after Rep. John Allen said teachers got second jobs to increase their lifestyle and buy boats. Teachers chanted that they wanted a 4 percent raise from the state. (Photo by Rachel Leingang, Arizona Capitol Times)

Arizona governor gives raises to aides despite lean budget

Arizona Gov. Doug Ducey has given 44 of his staffers raises of up to 20 percent despite offering teachers raises of less than 1 percent because of a lean budget.