Fireworks for…A new state fiscal year!

| July 1, 2015

By Children’s Action Alliance

For many of us, this week holds the promise of time off work, holiday sales, burgers and dogs on the grill, parades and fireworks. There is something else special happening today – it’s the first day of the new fiscal year for the state of Arizona – and for Arizona cities and counties.

Spectacular fireworks against a black, night skyMany of those budget cuts the legislature passed in March go into effect today and state agencies have to operate within their new budgets. That means, for example, less funding for each public school student and less funding for child safety.

There is some good news on the revenue side of the ledger. It will be several weeks before the books are closed on last fiscal year, but general fund revenue collections through May are $257 million higher than the forecast. That means we won’t make a withdrawal from our rainy day fund and it will keep a balance of more than $450 million. It means we start this year with more money in the cash balance. And it means our elected leaders will be debating how to best allocate the unexpected funds.

One option that should be taken off the table is more tax cuts or tax credits. After 25 years of tax cuts, Arizona’s economic recovery remains painfully slow. Tax cuts passed just since the Great Recession began wiped out $383 million in revenues. That amount would have been enough to avoid all of the new cuts to K-12 and higher education, the cuts to child safety and economic security, and the cuts to our health care system.

…Read the full article HERE

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Category: Education

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