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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 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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