“The state cannot get a cent for any man without taking it from some other man, and this latter must be a man who has produced and saved it. This latter is the Forgotten Man." William Graham Sumner

 

Budget Crisis February - 1st

As a state senator, I always appreciate hearing the concerns of the public, and as a father and grandfather, I can personally relate to the apprehension regarding the future of education in Arizona.  Here is the '09 challenge: We have a $1.6 billion deficit to fix, with only 5 months left, with only 50% of the budget to work with due to voter protected initiatives, and entitlement programs (mostly federal mandates).  Then starting Monday we will be trying to solve a $2.5 to $3 billion deficit for fiscal 2010 that starts July 1st, again with only 50% of the budget on the table to work with.

As you well know, the landscape of Arizona’s economic environment has changed. Families and businesses throughout the state have been forced to adapt to a faltering economy.  In fact, it is the worst budgetary shortfall in our state’s history.  In consideration of rising expenses that far outweigh declining revenue, Legislators are being forced to make the same difficult choices that face many American families.  We are working to correct Arizona’s steep budget crisis during this economic downturn, but there are only three viable options: increasing taxes, borrowing money, or reducing spending. Times of recession call for conservation.  Increasing taxes would likely prolong this recession, or, even worse, push it into a depression.  Likewise, borrowing money would only delay the problem, hurt the overall financial health of our state and essentially mortgage our children’s future. 

A significant portion of the proposed education “cuts” are really just rollbacks of spending increases that were made over recent years when our accounts were flush with money because of a strong housing market and a relatively prosperous economy. In fact, these increases illustrate the importance and value that Legislators have placed on education.  Amidst this fiscal crisis, if we do not make reductions to education, which makes up almost 60% of the budget, or health/human services and public safety, which accounts for another 35%, we have only 5% left to work with—at a time when we are as much as 30% short!  As difficult as these decisions may be, and as painful as they may feel in the short-term, reducing spending is necessary to preserve the long-term vitality of our education system.

I continue to fight for families and the taxpayers of this great state.  One issue we continue to ignore and is the elephant in the middle of the room, when it comes to crime, taxes, education, healthcare, is the illegal immigration issue, no one talks about it as we examine our budget shortfall, the failure of our local law enforcement and social service agencies to enforce our immigration laws.  The illegal immigration impact on our state is $2-$3 billion annually - $1 billion in K-12 alone plus lost jobs to Americans, lower wages and, according to FBI and local records, the huge crime wave including deaths and maiming that we are experiencing.

God bless everyone and may God continue to bless America.  I wish you and your family all the best during these difficult times.

This Governor with co-conspirators have grown government by an average of 12% for the past 6 years, while inflation PLUS population has been 6%.  It has been reckless spending by those who ignore the impact to the taxpayer and those who have to pay the bills.  If you’re a big spender you should stop right now. 

 

Coming to Arizona is a debate that will make you cringe.

Measure to Protect Taxpayers

– I am renewing the fight to stand up for the Taxpayer. I am renewing the fight against profligate overspending that has caused four straight years of budget deficits. The Taxpayer Bill of Rights, protects taxpayers and ensures fiscal responsibility at the Capitol by prohibiting the state from spending more than the previous year’s revenues, plus the rate of inflation and population growth.

"State spending has been out of control, State government has shown it is incapable of restraining its spending. We must take action to protect taxpayers from pork-barrel politicians. I urge my fellow lawmakers to join Arizona taxpayers in support of this measure. Taxpayers should have first claim on their money, not government. Excess revenues should be refunded, not used to grow government."

"State government must be held accountable for its spending binge; Taxpayers should not have to pay the price for reckless policies."

The Principles of Limited Government is Central to Freedom and Our Political System:

The Last four years at the legislature have been very difficult for us who believe we Americans must preserve freedom by limiting the scope and power of the government.

We are in the worst economic times this state has been in for decades.  I and a few others have worked tirelessly to hold down spending, allow the earner to keep more of their money, lower regulation on businesses and promote an environment that promotes business.  

The portion of each family's income going to government has risen and threatens to rise even more, as previous restrictions of government Federal and Local activity has eroded and spending has exploded. The stealth tax of regulation has also crept deeper into the economy and into society, insinuating the power of government into new and more areas of our lives, imposing heavy costs on families and business and restricting personal freedom. The courts, once the fierce protectors of freedom and the guardians of government restraint, have in recent years often become an extension of the activist government.

It is time for government to take steps to restrain its growth and it is up to ordinary citizens to make sure it does.

The focus of the budget control should be on reducing spending as a proportion of income. Entitlement programs should be corked through reform or elimination.

Entitlement programs unfairly obligate future taxpayers and middle-class entitlements-such as Medicare (AHCCCS) are growing at unsustainable rates, threatening huge tax increases on future generations and threatening the economy. These problems must be addressed now.

Spending should be based on core Constitutional principles. The budget should contain measures of liabilities and obligations and force us to plan to meet these obligations.

TABOR would require lawmakers to set priorities, reduce wasteful spending, and reform entitlement programs.

TABOR would save taxpayers hundreds of millions of dollars over the next decade and could be enforced by requiring a 2/3's supermajority to pass the budget or any spending bill that exceeds TABOR allowances. Such a bar is low enough to clear during an emergency and yet high enough to prevent abuse.

Next-Establish a "Base-Closing" Commission on wasteful programs:

To make it easier for members to eliminate programs, the legislature should appoint a commission, similar to the Federal Government's successful military base-closing Commission of the late 80's to crate a list of all wasteful, outdated, duplicative and unnecessary programs that should be eliminated. Lawmakers should then be required to cast a vote up or down to eliminate ALL programs on the list, preventing individual lawmakers from amending the list to protect their special-interest projects or programs.

Principles-Regulation is a burdensome and a hidden tax on American consumers:

According to estimates prepared by Mark Crain and Thomas Hopkins for the Small Business Administration, regulation's cost Americans $843 billion (over $8000 per house hold), and that was in 2000. This is almost half the amount collected in federal taxes and close to the $1 trillion paid in personal income tax that year.

While some regulations are justified they should be imposed only when market solutions and voluntary action have been proven not to work.

Arizona has become a huge, bloated welfare state – teetering on fiscal insanity.

We hear it all the time, "if a family should be forced to reduce its budget in bad times, so should government." It's become something of a mantra among fiscal conservatives.

Those on the opposite side have extended the analogy, arguing that just like families, government must often spend more than it has to pay for its needs. However, you don't mortgage your home every-year.

The state's budget has little in common with family finances. Given projected deficit of at least $1.2 billion, it's important to understand why.

While both are subject to overall conditions of the economy, the state has little incentive to reduce spending. Pressure from a seemingly endless array of interest groups encourages legislators to spend, but little countervailing force protects taxpayers from having to foot the bill.

Government, however, rarely considers such constraints when deciding how to tax and spend. Taxation, consequently, is rarely designed to be efficient, such that it will cause the least amount of economic disruption.

Without some kind of strict institutional check, we can't realistically hope for a consistently prudent budget from year to year - the evidence indicates few states ever do. Even a constitutional requirement for a balanced budget hasn't done the trick. With culpability not falling on any one person, the legislative and executive branches are able to spread blame without anyone actually taking the fall.

IMPORTANT, IMPORTANT, IMPORTANT!!!!

This would require the voters approval in 2010.

The Budget stabilization Act:

Limits State Spending to Population Growth Plus Inflation.

In a fiscal crisis, the legislature is given the tools to proportionately adjust funding approved by initiative or referendum. Currently the legislature only controls a small portion of General Fund dollars due to initiatives and the legislature can not meet its constitutional responsibility to balance a budget properly without the tools to do so.

Refunds the surplus to all individual income taxpayers equally.

Stabilizes the State's Budget with a real Rainy Day Fund that can be used only when revenues fail to increase at a rate greater than population growth plus inflation, or in cases of emergency with a 2/3 voter of the legislature and approval of the Governor and suspend Prop. 105 in times that revenues are not sufficient to pay our bills.  This should be a special session issue to call for a special election to allow the legislature to work with the whole budget and stop automatic spending increases at a time we cannot even pay for our current obligations

First of all potty mouth, you might not like what you’re about to read.  This Governor with the help of liberal legislators has grown government by an average of 12% for the past 6 years, while inflation PLUS population has been 6%.  It has been reckless spending by those who don't care about the taxpayer and those who have to pay the bills.  If you’re a big spender you should stop right now.  Now your mad because I and others refuse to allow the Universities to continue to spend.  They give away over $600 million each year and your worried that we won't let them spend $56 million and go into debt another $2 billion? 

 

Coming to Arizona is a debate that will make you cringe.

 

Senator Russell Pearce, LD18, Mesa

 

Budget Crisis January  - 23rd

So much miss-information. Like you, I love this country and the freedoms we enjoy. First I am disappointed Dr. Crow did not tell the whole story on higher education funding. Perhaps he can donate 50% of his salary to help. That still leaves him with about 400 thousand per year. I think he will be ok, he won't qualify for AHCCCS.

I am disappointed of course being left with such bad choices due to overspending, voter protected spending, entitlement programs and with only 50% of the budget to deal with and with less than 5 months left of this year to fix the  $1.6 billion deficit and starting July 1st (fiscal year 2010) we have a additional projected $3.0 billion deficit.

Being the father of 5 children and 13 grandchildren, I love and understand how important education is to all. I also understand how we can destroy this nation and do great harm to families and small businesses as we over tax and over regulate. I fight everyday for sound fiscal policy. I fight everyday for the Unborn, the Rule of Law, Limited Government, Lower Taxes, Family Values, Secure Borders, etc.

First let me make sure you understand we are not cutting 25% of the University Budget, it is closer to 6% of their total budget if the you look at all dollars. Also know these are options for legislators to consider as we tackle this huge problem. That is my job as appropriations Chairman. WE (the state of Arizona - The taxpayers) have a $1.6 billion deficit for this year and over half the year gone, we also have a $3 billion deficit for 2010 that starts July 1st. We have the worse crisis in state history. And all this 50% of this budget untouchable due to voter approval and federal entitlements.

I am not willing to raise taxes on families or businesses, as they are already over taxed and over regulated. The former Governor along with all the Democrats and a handful of Republicans have grown government by over 12% on average for that last 6 years, while inflation PLUS population has been only 6.5% average. The problem has been over spending not a lack of dollars. New program upon new program, growing entitlement programs, bonding, borrowing (all of which needs to be paid back sometime soon with a huge cost/interest).

NO ONE likes what is going on. And again what makes it much harder is about 50% of the budget is off the table because of voter initiatives and entitlement programs. That leaves only 1/2 of the budget to work with to fix this crisis. We are working with one hand tied behind our back.

Russell Pearce,