NO BUDGET SURPLUS FOR ARIZONA KIDS
Earlier this month, the Joint Legislative Budget Committee staff reported that Arizona ended last fiscal year with $257 million more than had been expected and collected $16 million more in taxes for the month of July than had been projected. So what does this news mean for kids in our state?
JLBC staff warn that revenues may not continue to be above projections. Revenues this fiscal year and next are still projected to be below revenues in FY 2008. And the fiscal cliff remains a very real threat to children and families.
A year from now state revenues will fall by $1 billion when the current 1-cent sales tax expires. More than $600 million a year in tax cuts passed over the last two years will begin to phase in. We will return to the days of the “structural deficit” – ongoing spending will exceed ongoing revenues. Right now it appears the Rainy Day Fund will cover current spending levels through FY 15 – but only if lawmakers keep us stuck in the slash and burn destruction of the recession.
• No state funding for full-day kindergarten
• KidsCare frozen
• Child care assistance frozen for low-income working families
• No help for thousands of poor children
• Shorting public and charter schools by more than $500 million by suspending education funding formulas