Special Session Summary Of Gov's Vetoes
July 06 2009 13:37 Filed in: Budget | Special Session
The Executive’s line item veto of the Executive/Legislative agreed upon majority budget and wholesale veto of the attendant budget reconciliation bills (BRBs) decimated a meticulously negotiated budget and created severe problems for the state.
Appalled by the recklessness of the Executive, a bipartisan legislative effort has developed to immediately address two of the most egregious aspects of the Executive’s vetoes.
First, the Executive zeroed out formula funding (more than $3.2 billion) for the state’s K-12 System, denying any funding to Arizona’s school districts and charter schools for FY 2010, which began July 1, 2009.
The ostensible purpose is to compel the Legislature to give the Executive her 18 percent sales tax increase referral to the ballot, which failed to garner sufficient Republican or Democratic votes during the regular legislative session.
By casting enormous uncertainty over the level of funding to the K-12 system, the Governor has effectively orchestrated a shutdown of Arizona’s schools and compromised the state’s Constitutional mandate to maintain public schools.
Second, the Executive jeopardized more than $2.7 billion in stimulus funds coming to Arizona, including over $1 billion in Fiscal Stabilization Fund monies for K-12 and Higher Education and $1.7 billion in Medicaid monies.
The Governor’s decision to zero-out formula funding to the K-12 public schools violates the Maintenance of Effort (MOE) requirements under the federal stimulus package, which requires the Legislature at least maintain a fiscal year 2006 level of funding.
More than $1.7 billion in Medicaid assistance is at risk as the Governor’s veto eliminated a technical BRB provision regarding county cost share and distribution of stimulus monies without which the Medicaid MOE is also violated.
Appalled by the recklessness of the Executive, a bipartisan legislative effort has developed to immediately address two of the most egregious aspects of the Executive’s vetoes.
First, the Executive zeroed out formula funding (more than $3.2 billion) for the state’s K-12 System, denying any funding to Arizona’s school districts and charter schools for FY 2010, which began July 1, 2009.
The ostensible purpose is to compel the Legislature to give the Executive her 18 percent sales tax increase referral to the ballot, which failed to garner sufficient Republican or Democratic votes during the regular legislative session.
By casting enormous uncertainty over the level of funding to the K-12 system, the Governor has effectively orchestrated a shutdown of Arizona’s schools and compromised the state’s Constitutional mandate to maintain public schools.
Second, the Executive jeopardized more than $2.7 billion in stimulus funds coming to Arizona, including over $1 billion in Fiscal Stabilization Fund monies for K-12 and Higher Education and $1.7 billion in Medicaid monies.
The Governor’s decision to zero-out formula funding to the K-12 public schools violates the Maintenance of Effort (MOE) requirements under the federal stimulus package, which requires the Legislature at least maintain a fiscal year 2006 level of funding.
More than $1.7 billion in Medicaid assistance is at risk as the Governor’s veto eliminated a technical BRB provision regarding county cost share and distribution of stimulus monies without which the Medicaid MOE is also violated.