Posted by AzBlueMeanie:
Something may be "Brewer-ing" in the Legislature. A tentative GOP budget deal may be reached as early as this week... or not.
The Arizona Guardian (subscription required) reports that "Republican lawmakers scrambled Monday to meet with members in small groups, leaving Democrats, who had thought they were involved in bipartisan negotiations, mystified as to what might be in a reported budget deal."
GOP leaders met with Gov. Jan Brewer Monday morning but wouldn't say what they discussed specifically. Republicans said details of a proposal would become clearer once they had met with GOP rank-and-file on Monday afternoon and Tuesday morning. Members said they have been told to plan on being at the Capitol late into the week, perhaps even into the weekend.
Late Monday afternoon, the Senate Rules Committee met, followed by a first reading of several vehicle bills on the Senate floor. The Senate then adjourned until 1:30 p.m. Tuesday; the House is adjourned until Wednesday.
Democratic leaders say they plan to continue meeting with Republicans over the budget, and aren't convinced the Republicans have the votes to pass a budget that will be accepted by the governor.
The Arizona Capitol Times (subscription required) reports that "Senate President Bob Burns said Republican leaders have reached “tentative agreements” on certain issues with legislative Democrats, but they are also working with the Governor’s Office."
“We are working in parallel lines,” Burns said. “If one falls apart, you have to go to the other.”
GOP legislative leaders have shared the proposal with the governor, but Democrats have yet to see the details.
Some of the details have begun to leak out to reporters. As sales-tax plan gathers support, questions linger:
A tentative plan, being circulated by the GOP legislative leadership to rank-and file members, outlines a ballot proposal that would raise the sales tax for three years in exchange for a three-year state spending cap and $650 million a year in permanent tax cuts. In the first year, the sales tax would increase by 1 cent on the dollar, then drop to three-quarters of a cent in 2011 and half a cent in 2012.
Senate President Bob Burns, R-Peoria, said Monday there needs to be enough in a new budget package that a majority of Republicans want to convince them to vote for the governor's demand for a temporary tax hike. GOP leaders looking for yes votes on budget
Burns said that might include putting another measure on the ballot, this one asking voters to give lawmakers the power to suspend spending mandated by previously approved ballot measures in times when there is a shortage. [The Voter Protection Act (Prop. 105)]
Also on that list of offerings to line up GOP support is permanent — and immediate — repeal of the state property tax. Burns said Republicans want the levy, suspended for three years in 2006, to go away forever.
And any package likely would have to include loosening regulation on business.
But even that may leave Burns without the 16 votes he needs to put the proposed sales tax hike on the November ballot. Several GOP senators, including Majority Whip Pamela Gorman, R-Anthem, said they will not support any tax hike — or even send the question of a temporary one-cent hike in the state sales tax to the ballot.
Time is running out: Legislators need to approve sending the measure to voters by the end of the week to meet the statutory timelines for a Nov. 3 vote.
Democrats are sticking to their plan to lower the sales tax rate but to eliminate tax exemptions to expand the tax base to services as part of tax reform. Legislative Republicans and the Governor's office are not open to the Democratic proposal. GOP leaders looking for yes votes on budget
[House Minority Leader David] Lujan said it's going to take more than comments from Brewer to get Democrats on board.
"If the governor wants to talk about her referral for the sales tax, include us in negotiations,'' he said. "That's part of negotiations, to have a give and take.''
[Senate Minority Leader Jorge] Garcia said there have been talks between Democratic and Republican legislative leaders.
But he said no one from the GOP majority has said exactly what they are offering Democrats for their votes. And Garcia said he has no specific laundry list of demands.
Rep. Daniel Patterson (D-LD 29) has forwarded to BfA a "Legislative Majority Budget Proposal Comparison with Executive's 5-Point Plan." I will summarize what it says:
1. The budget proposal would apply a spending freeze at $10.2 billion (the FY 2009 budget) for three years starting in FY 2010, with the spending cap lifted after 2012. With an anticipated spending level of $8.2 in FY 2010, the spending cap leaves $2 billion in budget capacity for baseline spending to grow to ensure the state is not out of complaince with federal stimulus requirements.
2. The budget proposal would ask voters to suspend the Voter Protection Act (Prop. 105) for three years for the duration of any temporary sales tax increase.
3. The budget proposal tracks closely the spending cuts in the previous budget vetoed by the Governor, which included more than $1 billion in spending cuts.
4. The budget proposal calls for $400 million in permanent income tax reductions split evenly between individuals and corporations beginning in FY 2012. The corporate tax rate would drop to 4.9%, and the top individual tax rate would fall to 4.2%. (Arizona already has one of the lowest income tax rates in the country. Arizona ranks 39th among the 41 states that levy a personal income tax. This is really all about lowering corporate taxes from 23rd most competitive to 7th.)
5. The budget proposal would ask voters to approve a three-year sales tax increase, with a one-cent tax in 2010, .75-cent tax in 2011, and .5-cent tax in 2012 (revenue projections of $2.2 billion, far short of the $3 billion revenue enhancement in the Governor's 5-Point Plan.)
My advice to Democrats: do not vote for this turkey of a budget proposal. There is nothing in this proposal for Democrats, and you did not negotiate it. Make the GOP insane clown posse and the Accidental Governor provide all the votes to pass their budget, if they can, and make them own it. If Republicans can't sell this turkey of a budget proposal to their own caucus, this budget proposal is dead. Republicans will be forced back to the table and will have to negotiate with Democrats to get the additional Democratic votes they need to pass a budget.
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