Arizona Budget Coalition

A budget plan that left the House Appropriations Committee this week eyes over a half a billion dollars in more cuts.

In addition to the direct cuts to services, the plan includes complicated alterations to voter-protected funds for education and other vital services. The Arizona Board of Regents and Arizona School Boards Association have expressed that legal action may be inevitable if the plan moves forward, potentially adding to the tally of costly lawsuits filed against the state over budget cuts.

The plan emerges just as a collection of community organizations have proposed a set of alternatives that could not only restore the FY 09 cuts, but fund a robust state budget for economic recovery in the coming fiscal year.

Capitol Media Services provides more details on the plan:

Other controversial provisions include taking $255million from what legislative leaders say is illegally accumulated excess cash being held by school districts and seeking $210 million in "voluntary" contributions by cities from their accumulated development impact fees.

Tuesday's debate centered on what Arizona can afford.

Sales tax receipts, which make up more than 40 percent of state revenues, are down sharply as people spend less. Income taxes, which make up more than 30 percent of the state budget, also are off as layoffs continue and the state collects less in withholding from worker paychecks.