Yuma welcome center may get cut

PHOENIX - The top budget drafters in the state Legislature have unveiled a plan to balance Arizona's budget that calls for eliminating funding for a proposed welcome center in Yuma and rolling back eligibility for a host of state programs.

The state had previously earmarked funds for construction of an Arizona Welcome Center at 1st Street and 4th Avenue that would house the Yuma Visitors Bureau and showcase the City of Yuma airplane that set a 1949 flight endurance record. Located not far from Interstate 8, the center would welcome tourists to the Yuma area.

But the budget proposal submitted by Republican lawmakers Russell Pearce and Bob Burns would slash nearly $2.8 million in state allocated for the center.

State Sen. Amanda Aguirre, D-Yuma, said the elimination of funding for the welcome center is not a done deal. The Republican plan is merely a proposal that is subject to lengthy negotiations with Democratic lawmakers and Gov. Janet Napolitano, she said.

"It's (the welcome center) been on the table as one of the cuts," said Aguirre. "It's just a proposal. We still have a long way to go."

Aguirre said she and other Yuma County lawmakers - Democratic Reps. Lynne Pancrazi and Theresa Ulmer - will be fighting to defend Yuma County's interests in upcoming budget talks.

The Republican proposal also would make major - and permanent - cuts

in funding for most state agencies. That includes a 10 percent across-the-board cut in money for state universities and suspending the cash normally provided to community colleges for new land and buildings.

Other cuts suggested by the chairmen of the House and Senate Appropriations committees include:

- Reducing eligibility for a program that provides health insurance for the children of the working poor.

- Eliminate a new initiative to help teach math and science.

- Roll back an extra $15.3 million lawmakers gave to public schools above what a formula requires them to provide.

And the plan calls for suspending construction of all new schools for one year to pick up $42 million.

Sen. Bob Burns, R-Peoria, who crafted the plan along with his House counterpart, Rep. Russell Pearce, R-Mesa, acknowledged that such deep cuts will make a difference in state services.

Burns acknowledged the claim by Gov. Napolitano, whose proposed cuts in ongoing spending are minuscule in comparison, that the universities are the economic engine that could help Arizona out of its current economic slump. That is why her budget-balancing plan, released a day earlier, leaves funding for university operations untouched, as it also does for public schools and programs that provide health benefits.

But Burns sidestepped questions of whether such drastic cuts would irreparably damage the universities.

"I think the more important question is how do we continue to run government with money we don't have.

"We have authorized spending far in excess of what we have available to spend,'' Burns explained, pointing out that the budget adopted for this fiscal year actually had more in expenditures than anticipated income. The plan was to make up the difference with cash carried forward from the prior year - cash that did not materialize.

And the situation only got worse when the economy went soft, slashing sales and income tax collections.

"So we are going to have to make, I believe, some very painful decisions in order to get this fiscal house back in order,'' Burns said.

Most other state agencies also would face 10 percent cuts - above and beyond some specific program cuts - totaling another $135 million above what would be taken from universities.

But Sen. Jorge Garcia, D-Tucson, the assistant minority leader, said that's telling just half the story.

He pointed out that the Republican-controlled Legislature - with the cooperation of the Democratic governor - slashed individual income tax rates by 10 percent and suspended a state property tax that brings in about $250 million a year. Garcia said at least part of the argument was that tax cuts will stimulate the economy and produce more revenues.

"I'm one who's still waiting for the payback from all this 'investment' in tax cuts to bring us more money,'' he said.

But Garcia said Burns and Pearce are not entirely wrong in wanting to make more significant cuts than those proposed by Napolitano. He predicted the final budget- balancing plan will wind up somewhere between the two plans.

George Cunningham, the governor's chief financial adviser, was particularly critical of halting school construction, saying buildings already are overcrowded in some rapidly growing communities.

"We're going to try to cram 50 kids into classrooms that are designed for 30 or less,'' he said. "That isn't a smart way to invest in Arizona's future.''

Hearings on the plan begin at the Capitol Tuesday.

The plan by Burns and Pearce would not make up the entire $970 million deficit with actual spending cuts.

Arizona expects to provide $30 million less in state aid to schools, the function of lower-than-anticipated enrollment. State School Superintendent Tom Horne said he believes at least part of that can be attributed to families not here legally leaving the state.

And the proposal would pick up an extra $106 million for operating expenses by having at least part of the cost of the Highway Patrol paid by gasoline taxes and vehicle registration fees.

That, however, translates to about $53 million less for state road construction. The balance would be absorbed by reducing aid to cities and counties.

The one major element in common with Napolitano's plan involves tapping the state's "rainy day'' fund. But the GOP legislators propose to take $350 million; Napolitano wants just $263 million.

Napolitano, however, proposes to bridge the deficit, which she pegs at just $870 million, by borrowing close to $400 million for school construction, freeing up that cash to keep other state programs operating.

Pearce rejected that out of hand. He said while capital costs generally are financed over a long period, like a home mortgage, the difference here is that the state needs to build $400 million of new schools every year.

That, said Pearce, makes it an ongoing operating expense that should not be incurring interest charges.

Much of the rest of the governor's plan involves taking cash from special dedicated funds - money Napolitano's staff said the agencies do not need - and deferring some expenses into future years.

But Burns acknowledged that borrowing and fund sweeps may be necessary to balance next year's budget which will be $1.7 billion in the red if the state's economy does not improve.

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Various savings proposals suggested by GOP state lawmakers Russell Pearce and Bob Burns:

- Eliminate proposed new Yuma welcome center ($2,798,000)

- Suspend capital outlay funds for community colleges ($20,054,000)

- Put off construction of new schools for one year ($42,000,000)

- Eliminate adult dental services ($444,400)

- Reduce eligibility for Kids Care to families earning 175 percent of poverty level from 200 percent ($1,164,900)

- Reduce eligibility for programs for health care for pregnant women ($600,000)

- Roll back funding for human papilloma virus inoculation for needy ($2,869,100)

- Eliminate increase in funding for international trade office ($700,000)

- Take back increase in funding for Greater Arizona Development Authority ($2,000,000)

- Delay matching funds for 21st Century Fund for research ($25,000,000)

- Eliminate general assistance program ($1,826,400)

- Do away with summer youth employment and training program ($1,250,000)

- Scrap new math and science teaching initiative ($2,500,000)

- Reduce funding for community health centers ($4,500,000)

- Shift Highway Patrol funding to gas taxes and vehicle registration fees ($106,000,000)

- Reduce funding for Arizona State University ($41,767,500)

- Reduce funding for ASU West ($5,360,400)

- Reduce funding for ASU Polytech ($2,591,600)

- Reduce funding for Northern Arizona University ($16,086,900)

- Reduce funding for University of Arizona ($36,238,900)

- Reduce funding for UA Health Sciences Center ($8,095,400)

- Eliminate funds for new veterans benefit counselors ($985,400)

- Put off funding a new Southern Arizona Veteran Home for a year ($10,000,000)