Posts Tagged ‘budget’

17th February
2009
written by Sean Noble

There is no question that the budget mess we are in here in Arizona rivals any state in the nation.  We have the largest deficit as a percentage of our budget than any other state.  The good news is that we haven’t fallen into the trap (yet) of trying to tax our way out of it.

California is trying to pass a budget, but they haven’t been able to because Republican legislators are holding firm on opposing a $14 BILLION tax increase as a part of the package. With the impending layoffs of more than 10,000 state employees in California, I would guess they will get a budget out today or tomorrow – someone is going to break to the pressure.

Unfortunately for California, that will not fix their long-term problem.  They are already losing population as a result of their fiscal policies that squeeze the middle class to the point of literally driving them out of the state.

Which means that California’s loss may be Arizona’s gain.  If Governor Brewer and the Legislature deal with the 2010 budget mess in a constructive way, Arizona could be a magnet for businesses and individuals (many from California) which could help us grow our way out of the fiscal crisis in the mid-term and long term.  No, it won’t help the short term, that is still going to be very painful, but if Arizona avoids gouging individual taxpayers and businesses, we can make significant strides to dealing with our housing crisis and budget shortfalls.

Let’s do the right thing and put out the welcome mat.

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