Make cutbacks early to reduce pain for state

While less attention has been focused on the state's fiscal woes since a special legislative session closed about a month ago after sending a budget balancing measure to Gov. Jan Brewer, a day of reckoning is coming that will not be pleasant.

Brewer signed the $3.2 budget measure in early September, but vetoed several spending cuts with which she disagreed. That, along with a continuing shortfall in state tax revenues, leaves Arizona government about $1 billion short of meeting its expected expenses this fiscal year which began Aug. 1.

Most of that will have to be made up either from additional revenue or more spending cuts before the fiscal year ends on June 30, 2010 in order to meet constitutional requirements to balance the state budget.

The likelihood of more revenue, barring a dramatic turnaround in the economy, is remote.

The Legislature refused to pass the governor's desired 1 percent increase in state sales taxes and refused to approve a timely special election for voters to consider it.

That means the earliest a sales tax increase could go on the ballot, presumably through a voter initiative, would be in the election in November 2010. Even it that were to happen, the governor has acknowledged it would not help with the state's current fiscal shortfall. A tax increase that does not help the situation makes no sense.

That leaves budget cuts. The governor's office has told directors of the state's agencies to prepare for cuts of 15 to 20 percent in January. Cutbacks actually should come even sooner than that.

One of the mistakes made last year was waiting too long to make reductions in state expenses. The result is much more dramatic short-term cuts having to be made to balance the state budget because there is less time to stretch out the cost reductions.

By starting the cuts immediately, they can be smaller and should be less felt.

Waiting for a "miracle" cure to the state budget problems will only increase the pain.