A year ago, Republicans boasted that they made the tough decisions on state spending needed to close a massive budget deficit. The decision to freeze enrollment in state-funded health care for the poor was held up most often by Republicans as a shining example of how they addressed the festering fiscal imbalance.

But one incentive might persuade Arizona’s policymakers to let the uninsured back into the Medicaid fold: cash — lots of it.

As the Arizona Independent Redistricting Commission continues to rack up legal bills, House Speaker Andy Tobin is seeking a full audit of the commission’s finances.

State revenues grew modestly in November even as signs of economic strains persist.

Major economic indicators in Arizona point to a steady recovery, although some bumps remain. Revenues in August grew by 8.6 percent, buoyed by strong showings in sales and individual income taxes.

Forecast information released Sept. 29 by the Joint Legislative Budget Committee staff has the state's current $8.5 billion budget facing a potential shortfall of up to $825 million. That's up from the previous forecast for a midyear shortfall of up to $700 million.

Supporters of a bill that aims to extend tax credits for motion picture companies face a new hurdle: A fiscal analysis shows the program would cost the state as much as $40 million beginning in fiscal 2012.

Legislative budget analysts gave lawmakers a list of options they can use to erase billions of dollars of red ink this year. The solutions range from the elimination of some government services to sharply increasing property taxes.

JLBC has singled out three budget provisions that wouldn't live up to their billing: a plan to save $50 million due to reduced fraud in the health care system; deals to privatize nine of the 10 state prisons; and a plan to raise $735 million by selling dozens of state buildings, then leasing them back. But there's more.

Legislative budget analysts said last week that $165 million of the state budget deficit is due to "potential unrealized budget savings" that were assumed as part of the spending plan, which was designed to bridge a $3 billion shortfall. In short, several savings measures won't work as planned.

Legislative budget analysts said tax collections in the first quarter of the fiscal year have been so sluggish that they have revised revenue projections downward. Now, the deficit for fiscal 2010 is $2 billion. In order for the state to collect the $7.1 billion it anticipated this year, revenues would have to grow by nearly 1 percent from the prior year. However, collections are down 16 percent after the first three months.