Brewer seeks to reassure state on budget

  Seeking input from civic, business and educational leaders, Arizona Gov. Jan Brewer offered reassurance Friday at the Yuma Community Leadership Luncheon that the state has taken the necessary first steps toward economic recovery.

  Brewer made her remarks at the Hilton Garden Inn's Pivot Point Conference Center. She noted even be- fore be- coming governor she spoke of the significant challenges to confronting the revenue shortfalls in order to balance the budget. Since that time the fiscal problems she has inherited are now revealed to be much worse than what was first expected.

  "I recognize whether you are a CEO or a head of household we are all affected by the financial unrest," Brewer said.

  "As a result, Arizona businesses and families are tightening belts and ultimately taking a closer look at the difference between what they need and what they want. And in times like these state government should be no different."

  Brewer noted Arizona budgets grew by $4 billion from 2003 to the present. And, she added, for fiscal year 2008/09 the budget was based on poor estimates of 8 percent revenue increases when in reality the state faces revenues of -12.8 percent and because of these projections the state is now million upon millions short.

  The federal stimulus package that President Obama recently signed will provide some welcome relief but at best it will only cover one-third of the budget deficit and then for only two or three years before coming to grips with another shortfall, she said, citing the Governor's Office of Strategic Budget Management.

  And compounding the huge deficit is that nearly 40 percent of the state budget is off limits to modification because of mandated spending initiatives. That leaves only a few areas in which to make adjustments such as education, health services and the department of corrections.

  Brewer stressed now is the time to make reforms in order to sustain the most necessary and highest priorities.

  "I firmly believe Arizona will be ready to compete for business when the economy recovers," Brewer said. "But we must replenish the revenues we received during the construction boom while ensuring the diversification of our economy."

  In closing remarks Brewer reminded the audience the state needs to build up its "rainy day" fund and not spend it while revenues are still growing and rethink how those dollars are accounted for.

  "I remain bullish and by working together and retaining our values and principles it will help us emerge out of troubled waters safely and prosperously," she said.

  Philip Townsend, Yuma Union High School District board president who sat with the governor, noted that education uses nearly half of the state's budget to fund kindergarten through 12th grade education.

  Townsend acknowledged that the logical place to go to fill the $1.6 billion deficit was where the money was spent and while he would rather not see cuts to education the Legislature is required by law to balance the budget.

  "I would hope when the Legislature does make cuts to education they give the local board freer reign to allocate where the money goes," he said.

  In brief remarks after her address Brewer said she recognized how critical education is and the importance of local control but that it was incumbent upon all services receiving state aid to tighten their belts.

  "We want to make Arizona a better place for business, families and a well-educated populous," Brewer said. "We believe by stimulating job growth and making it easier to do business in Arizona we make the state a more attractive place for business. Minimize and scrutinize rules and regulations was one of my first executive orders."

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William Roller can be reached at wroller@yumasun.com or 539-6858.