Byron Schlomach

Correcting the Record: On Balance, the Budget Never Was

Posted on January 15, 2009 | Author: Byron Schlomach
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In her State of the State address, Governor Napolitano made two rather remarkable statements. She said, I have always presented you with a balanced budget plan that moved Arizona forward, and We have passed a balanced budget every year.

My recollection is that the fiscal 2008 budget passed in June 2007 with a wink and a nod by all parties and before summer was over it was publicly acknowledged that budgeted spending would outpace revenues. It was belatedly balanced by bonding school construction, draining the rainy day fund, and suspending a monthly payment to schools, among other gimmicks.

Chastened, many members of the legislature were determined that the fiscal 2009 budget would actually be balanced. The JLBC, with its three revenue forecasts, repeatedly estimated revenues significantly below the governors rosy prognostications. In the end, the 2009 budget was not only full of gimmicks, it flouted the states constitutional balanced budget requirement. Even on the day it was passed, no one involved can credibly claim they honestly thought this years budget would be in the black.

Some members of the legislature are considering a new requirement that the states treasurer certify whether future budgets are balanced. As a statewide elected official with a clear mandate, the treasurer could be held directly accountable for failure to call over-spending legislators to account. This is a desperately needed measure that really ought to have constitutional teeth.

Byron Schlomach is the director of the Goldwater Institute Center for Economic Prosperity.

Learn More:
Goldwater Institute: A Comparison of State Spending Growth Under Arizona Governors

Goldwater Institute: Refusing to reduce budget like rearranging deck chairs on Titanic

Governor Napolitanos 2009 State of the State Address

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