The University of Arizona

State Government Update # 19

49th Legislature - First Regular Session


July 02, 2009

The legislative session expired at 7:30am on July 1 and left in its wake a good deal of history, and with Governor Brewer’s veto of 14 budget related bills, plenty of work to do in a special session commencing on July 6.

                The slaughter was both magnificent and complex, while allowing state government to stay open. The budget package consisted of bills passed on June 4 (and not transmitted to the Governor, but held in the Senate), and trailer bills passed on July 1 that amended the June 4 cluster or added new provisions. Wielding more a sword than a pen, Governor Brewer allowed only three bills to survive, and she did a fair amount of line item vetoing in two of the three.

                The survivors were the June 4 general appropriations bill (SB 1188), the July 1 general appropriations trailer bill (HB 2643), and a capital appropriations bill.

                The significant outcomes for the university system are as follows:

·         The University auxiliary fund balance sweeps of $50M were eliminated.

·         The changes to the SPEED program were eliminated leaving us with a total of $800M of SPEED debt authority.

·         The rollover of the University appropriations from late FY 2010 to early FY 2011 was eliminated.

·         The cuts made to the universities’ general fund budgets for FY 2010 were eliminated (this is not likely to stand after the special session, as we will probably be pared down to the federal maintenance of effort level).

·         The prohibition of DOA offering domestic partner health issuance was eliminated.

·         The Arizona Twenty-First Century Competitive Fund was restored.

Other results of the interaction of the bills, the vetoes, and the line item vetoes are:

·         No requirement for a university uniform accounting system.

·         No movement toward funding only in-state enrollment.

·         No reporting requirement for invited campus speakers.

·         Elimination of the changes in SB 1035 and HB 2645 relating to required documentation for demonstrating lawful presence to agencies providing federal and state benefits.

The Governor had said no sales tax increase referendum, no deal, and she demonstrated that she was not bluffing. Now she has called a special session for Monday to fix the budget and to pass a sales tax referendum – although she would accept a two-thirds vote increasing the sales tax, but that is unlikely.

                The Governor has put a gun to everyone’s head to prompt quick action in the special session. Among her vetoes is the elimination of state aid for K-12. She did this because of her dissatisfaction with the legislative K-12 budget (including the fact that in her plan some of the money from the sales tax increase would have gone to K-12). The next general fund payment to K-12 is due on July 15.

                We owe a great deal to Governor Jan Brewer – her courageous vetoes and firm support for higher education. The State must have her temporary sales tax increase to avoid disaster. We will work closely to assist her and help her achieve her goals in the special session.

 

 

Greg Fahey

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