Tax hikes NOT necessary to resolve AZ budget crisis

PHOENIX—The Arizona chapter of Americans for Prosperity (AFP-Arizona) and the Reason Foundation today released a document outlining ways for the Arizona state government to reduce the gigantic budget deficits that are projected for the remainder of the current fiscal year and for the fiscal year that begins next July.

In the document, AFP-Arizona director Tom Jenney and Reason Foundation government reform director Len Gilroy argue that Arizona does not need to raise taxes to resolve the state’s budget crisis, identifying $760 million in baseline budget reductions and $2.6 billion in one-time revenues for Fiscal Year 2010 and $3.5 billion in baseline budget reductions and $1.6 billion in one-time revenues for Fiscal Year 2011. Many of the proposed deficit reductions in the document rely on reducing or eliminating state agencies and programs, reducing state government personnel, privatizing state assets, and making fundamental reforms to Arizona’s school funding system.

The budget options document comes as Arizona Governor Jan Brewer prepares to call the Arizona Legislature into yet another special session. Among the items on the Governor’s agenda for the special session is the referral of a billion-dollar tax hike to state voters. “Our purpose is to show that alternatives to tax hikes do exist,” write Jenney and Gilroy. “Whether the state’s authorities can muster the political courage to implement those alternatives is up to Arizona’s politicians—and ultimately, up to the people of Arizona.”

Jenney and Gilroy acknowledge the help of Byron Schlomach of the Goldwater Institute, Steve Voeller and Michelle Clements of the Arizona Free Enterprise Club, and several members of the Arizona Legislature, in developing the budget options document.

Budget document link: http://static.taxcutsforall.com/files/azbudgetoptions121509.pdf

Deficit impact chart: http://static.taxcutsforall.com/files/deficitoptions121509.pdf

Press Contact:

Tom Jenney, (602) 478-0146, tjenney@afphq.org