Gov. Doug Ducey said Tuesday he won’t take another round of tax cuts off the table even as Arizona schools struggle to recover the hundreds of millions of dollars in state aid they lost during the recession.

Some lawmakers are kicking around the possibility of delaying the implementation of the phased-in tax cuts that were part of the 2011 Arizona Competitiveness Package. But thanks to the sluggish economy, the fiscal impact of those cuts is smaller than JLBC anticipated when the bill was passed.

Three factors have consistently been cited as big contributors to the estimated $1 billion deficit the state will face in fiscal year 2016 and some lawmakers are urging action on the one they actually control — tax cuts from a three year-old economic stimulus bill.

The tax-cutting stance embraced by several candidates for governor is heading straight into a collision course with the reality of a judge’s ruling on school funding.

Depending on who wins the Republican primary in the hotly contested governor’s race, Arizona may see some major cuts, even the outright elimination, in income taxes.

Gov. Jan Brewer said she met with representatives of 30 technology companies in Munich that have a “keen interest” in Arizona and is hoping that a trade delegation to France and Germany will bear fruit when those companies are ready to expand into the United States.

An ambitious economic development bill meant to be a follow-up to the 2011 Arizona Competitiveness Package will jettison some of its more contentious provisions due to the Ninth Floor’s concerns that it will cost too much money.

But lawmakers and business groups pushing the bill say they’re optimistic that an agreement will be reached with Gov. Jan Brewer to cut state taxes on capital gains — the core component of the bill — even if they’re unable to achieve the outright elimination many GOP legislators sought earlier in the session.

With old battles settled, business advocates are turning their attention to some of the more “niche” issues for the business community during the 2012 legislative session.

Advocates of an ill-fated tax cut proposal meant to spur small- business growth believe they’ve finally found the key to overcoming longstanding opposition and are rounding up early support to head off any problems as they prepare for the 2012 legislative session.

The slow-and-steady approach that Gov. Jan Brewer has taken to tax cuts and incentives led her to veto a bill meant to ease the burden of corporate income taxes.