A year ago, Arizona had the largest budget surplus in state history. But when the Legislature reconvenes on Monday, lawmakers face projections of a large — and fast-growing — deficit.
Democrats have sounded the alarm about two GOP measures implemented in the past — a flat tax and an expansion of the state’s school-voucher program, known as Empowerment Scholarship Account or ESAs. House Democrat Oscar de Los Santos told the Arizona Chamber of Commerce on Friday that the reversal of fortune has been largely self-imposed by Republicans.
"The budget deficit that we’re seeing, and that shortfall that we’re seeing, is the result of two things: the Ducey tax cuts and an ESA program that has unfortunately come off the rails," said de Los Santos.
But Republican House Speaker Ben Toma said the budget situation is an opportunity to adjust priorities.
“We have ebb and flows that come with the state revenues, much like you do in private business as well, and we’ve spent the dollars. So now we’ve overspent a bit, over the last couple of years, and now we have the opportunity to refocus some of those dollars, re-prioritize."
The Arizona Constitution does not allow the state to operate at a deficit. So lawmakers will likely need to make significant spending cuts to balance the budget.
