1 budget briefing state of arizona janice k. brewer, governor april 17, 2009
TRANSCRIPT
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Budget Briefing
State of Arizona
Janice K. Brewer, GovernorApril 17, 2009
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Arizona’s Revenue Streams
General Fund RevenueFY08 Actual Collections
(before Urban Revenue Sharing distribution)
Individual Income
36%
Corporate Income
8%
Other10%
Sales Tax46%
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Annual Percent Growth in Selected Economic Variables
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
85Q1
86Q2
87Q3
88Q4
90Q1
91Q2
92Q3
93Q4
95Q1
96Q2
97Q3
98Q4
00Q1
01Q2
02Q3
03Q4
05Q1
06Q2
07Q3
08Q4
retail growth personal Income growth auto dealer sales growth
Arizona’s Revenue Trends
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Arizona’s Expenditures
General Fund Appropriations FY09 Adjusted Appropriations
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Caseload and enrollment for K-12 Education, AHCCCS, and Corrections are expected to grow by 107,000 from FY09 to FY10.
Arizona’s Expenditure Trends
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The caseload growth translates to an increased funding requirement, from FY09 to FY10, amounting to $600 million.
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Arizona’s Expenditure Trends
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Arizona’s Budget Crisis
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How The Gap Has Been Filled
• Agency Reductions (Permanent) 248 584• Rainy Day Fund (Temporary) 560 130• K-12 Rollover (Temporary) 272 330• Other Fund Transfers (Temporary) 290 467• Federal Assistance (Temporary) 0 500
FY 2008 FY 2009in millions
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Arizona’s Future Fiscal Crisis
The cumulative gap between expenditures
and revenue from FY10 to FY14 is $15.4 Billion 4,114
3,783
3,4792,2361,781
1,0811,323
7,000
9,000
11,000
13,000
15,000
FY05 FY06 FY07 FY08 FY09Est.
FY10Est.
FY11Est.
FY12Est.
FY13Est.
FY14Est.
Expenditures Revenue Federal
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Building A Better ArizonaGovernor Jan Brewer’s 5 Point Plan
1. Reform budget process – focus on long-term needs and resources
2. Improve Prop. 105 – The Voter Protection Act
3. Further spending cuts, reduce general fund by $1 billion
4. Provide tax reform to attract business and more jobs
5. Temporary tax increase - $1 billion revenue to bridge the gap in our budget shortfall
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Fiscal Reforms
Substantial, Further Spending Cuts Reduction of Automatic Spending Growth Economic Vitality Tax Reform Long-term Financial Planning Long-term Capital Planning Effective Limits on Spending Growth Temporary Budget Balancing Tax Increase
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State of Arizona
Janice K. Brewer, GovernorApril 17, 2009
Budget Briefing www.azgovernor.gov/BetterAZ.asp