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Tim Bee talks state budget in Benson visit

Budget talk: Former Arizona Senate President Tim Bee gives local residents an update on the state budget process at a chamber luncheon on Thursday. Bee is now the director of Governor Jan Brewer's Southern Arizona office. (Thelma Grimes photo)

Published: Wednesday, July 1, 2009 1:35 PM CDT
Thelma Grimes

SAN PEDRO VALLEY NEWS-Sun

Tim Bee, of Governor Janet Brewer's Southern Arizona office, said the governor won the war in a legal dispute over the 2009-2010 budget, but Senate President Bob Burns has won the battle.

Governor Brewer has waged a legal battle against Burns for not sending the approved budget for the fiscal year, which begins on July 1, to her office for approval, rejection or to let it become official without her signature.


The Arizona Legislature passed their version of the budget on June 4.

During a luncheon hosted by the Benson/San Pedro Valley Chamber of Commerce, Bee talked about the governor's version of the budget that she thinks should become law, and the one already approved by state lawmakers.

Bee said the state's highest court sided with Governor Brewer, stating that after the legislature passes a bill, it cannot delay presenting it to the governor.

That is exactly what the state legislature has done, with Burns playing a waiting game, hoping to give the budget to Brewer on Tuesday, June 30, a day before it is set to go into effect, in order to avoid her promised veto.

However, while the Arizona Supreme Court sided with Brewer, they didn't do anything about it.

Even though the court refused to order the legislature to send the budget to her office, in a statement, Brewer claimed victory, saying the ruling proved that what Burns and the legislature are doing is illegal.

Senator Jonathan Paton, R-District 30, didn't give an opinion on how the legislature and Brewer are at odds over the budget, but he said he wouldn't be surprised if going through the courts gets nothing solved.

"For the sake of argument just say that the court took the governor's side," Paton said. "This is the justice system. Have you ever known it to speed along? I don't know what this accomplishes. If she prevails, it's only an appearance victory."

Bee said Thursday, that if the deadlock between the two sides continues, a government shutdown July 1 is a strong possibility.

"We really believe the governor won the war here, but the legislature believes they won the battle," Bee said. "This legislature has kept this budget in the senate secretary's office for more than two weeks. They have admitted they are trying to wait to force her to take the budget as is. The governor is not going to find that acceptable. The governor does not want a government shutdown at the end of the month."

Bee said Brewer is, however, preparing for that, looking at what services are required to continue by the state constitution, and what departments can be closed if an approved budget is not in place. For example, police protection would continue, but services such as the Arizona Department of Motor Vehicles would shut down until a budget for the new fiscal year is in place.

"What she is doing politically may not be advantageous for her in the long term. She knows that, but she is trying to do the right thing for the state," Bee said.

Bee said there are a lot of differences between the budget already approved by the legislature and the one being proposed by Brewer.

Bee said the state is facing the worst deficit since the great depression, an estimated $4 billion. The former president of the state senate said the legislature's budget ignores the total deficit, only planning for between $2.7 billion and $3 billion in deficits.

Bee called the approved budget "disingenuous," stating the house and senate approved a measure to take certain funds from city and county governments in order to avoid increasing taxes.

However, Bee said the burden will be put on local governments, and one way or another, residents will pay higher taxes.

Benson Mayor Mark Fenn asked Bee to address the state-shared sales tax revenues during the nearly 90-minute luncheon.

"The governor, having been a former county supervisor, knows that we all get our revenues from the same sources," Bee said. "The governor has said she does not want to shift the burden of our problem, and increase the burden of local government, forcing you guys to have to raise taxes to pay for police and fire and things you have to cover that are big parts of your budget."

Bee said while Brewer, in her 27-year political career, has not been in favor of a tax increase, she feels that voters need to approve a temporary, one-cent sales tax increase that would see the state through tough times for the next three or four years.

Paton, a first-term senator, said he isn't too happy with the budget approved by the legislature this session, but noted it's tough in tough times.

"When our economy is in shambles, and you have a lot of needs and no money to cover them, it's tough," he said. "The alternative is raising taxes, and as it is, a lot of businesses are already struggling. So if you raise taxes even more, you are going to go under."

Bee said the legislature's budget does not properly fund voter-mandated programs such as the Arizona Healthcare Cost Containment System (AHCCS), stating without the proper funding, rural hospitals are going to be the ones that suffer.

Another focus point in the new budget is education. Bee stressed that the legislature is looking to make steeper cuts to K-12 funding, but Brewer is planning $300 million in cuts that will be covered by the $300 million coming from federal stimulus funds.

Bee said the legislature's approved budget has more than $400 million in education cuts.

Calvin Baker, superintendent of the Vail School District, sided with the governor, stating, "It is unfortunate that the governor and legislature are at odds over the budget. However, we believe the governor is standing firm to protect K-12 education, and we appreciate her strong stand."

David Woodall, superintendent of the Benson School District, calls the legislature's stalling "gamesmanship" that is impacting other departments reliant on state funds such as education.

While the state continues to argue, Woodall said districts across the state have to follow the law and get a budget approved by July 15. That means starting the public process with fake numbers.

The Benson Governing Board approved a budget Thursday night. Woodall stressed that the final numbers are well over what the district will actually have, but as per law, they can only decrease a budget, it cannot be increased. When the state budget is finally approved, Woodall said they will be able to work with actual numbers.

Baker said the Vail School District approved their budget with unrealistic numbers last week.

"It is based on estimates and the forms supplied by the Department of Education," Baker said. "We will revise our budget when the state budget is finalized. It is disconcerting to start a new year without a real budget, but we are moving forward."

Bee said the legislature's holding the budget is a bargaining tactic he has never seen used.

The governor and state lawmakers continued to meet through the weekend and early this week to find some middle ground in order to avoid a government shutdown.

No agreement had been met by the News-Sun's press time on Tuesday.



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