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 After weeks of small group meetings, House and Senate Appropriations committee members have released preliminary plans to close the FY10 budget deficit. The conversation on the budget will now broaden to the rest of the majority caucus as leadership works to get enough votes to pass each chamber.The House plan consists of approximately $739 million in agency cuts, $358 million in fund sweeps, and $500 million in federal stimulus money for a total of $2.4 billion. The House budget does not address a remaining shortfall of approximately $465 million. The Senate plan cuts $842 million from agencies, includes $390 million in fund sweeps and includes the same $500 million in stimulus funds as the House plan. The Senate plan leaves a of $312 million remaining shortfall.
The FY10 plan also includes a way to balance the remaining FY09 shortfall with $500 million in federal stimulus funds.
A preliminary analysis of the county impacts in the plans indicates that previously proposed options like the shift of state prisoners to county jails, requirements that counties pay 100 percent of ALTCS growth, or a shift of Justice of the Peace salaries to counties have not been included. Additionally, legislators appear to be looking at other mechanisms (outside of charging local governments) to fund the DPS crime lab.
Check the CSA website early next week for a complete analysis of county-related budget impacts.
Ignoring legislative decisions in the revised FY09 budget, AHCCCS management intercepted $4.8 million specifically appropriated to Graham, Greenlee,
 Maricopa County Manger David Smith joined Vice President Joe Biden, along with federal agency representatives and Chairman Earl Devany of the Recovery Act Transparency and Accountability Board, for a conference on the implementation of the American Recovery and Reinvestment Act (ARRA) in Washington, D.C. earlier this month.
Smith joined representatives from 130 county and city governments to discuss the ARRA, which was signed into law February 17, 2009. The ARRA contains billions of dollars in federal grants and other funding designed to preserve and create jobs and stimulate the economy.
Reports from the conference indicated that information about how the stimulus money will be handed down continues to trickle out, and some federal agencies have yet to release their guidelines. However, it is clear that accountability and transparency will be central to the package. The White House has asked each local government to appoint an Implementation Czar to ensure that every dollar spent can be accounted for, and in many cases local officials may be asked to certify their jurisdiction's stimulus dollars.
If Arizona county officials have stimulus related question, click here to submit them, and they will be passed on to White House staff.
 Arizona Supreme Court Chief Justice Ruth McGregor told state legislators that a lack of funding could potentially erase progress the courts have made in case processing and dramatically increase delays in the court system.
During the annual State of the Judiciary address, McGregor said that despite the dedication and skill of court employees, "in the context of Arizona's financial crisis, the state of the judiciary is precarious." McGregor reported the the courts continue to make progress in expediting case processing times and upgrading court technology. Making these strides has been challenging as McGregor said that state funding has not kept pace with growth in the courts: in the past nine years, the state's allocation to the courts has decreased by 13 percent, to less than 2 percent of the state General Fund.
Budget cuts in the courts have led to unprecedented growth in case filings with fewer resources. McGregor said that delays in the system cause harm to the community and the victims who use the court systems. She warned legislators that, "We simply cannot let budget cuts return us to a time, not so long ago, when it took 5-10 years to complete a civil case in Arizona."
McGregor also promoted initiatives in the courts, including a new "Turbo Court" program, an e-filing system, and an expansion of the FARE fine collection system that would allow the courts to operate more efficiently with fewer staff members.
Chief Justice McGregor closed by announcing her retirement later this year, after over 20 years in the Arizona court system. She is expected to be succeeded by Vice Chief Justice Rebecca White Berch.
To read the text of Chief Justice McGregor's State of the Judiciary address, click here.
Governor Brewer sent a letter this week to the Federal Center for Medicaid and Medicare Service (CMS) asking for a reversal of a decision that would invalidate Arizona's ability to claim additional health care funds in the federal stimulus package.
At the center of the dispute is a measure passed last year by the legislature that requires childless adults who are not disabled to re-verify their eligibility for AHCCCS services every six months (instead of every year). The legislation became effective in September 2008.
CMS has interpreted that measure as a violation of terms in the federal stimulus package that prohibit a state from using more restrictive eligibility standards after July 1, 2008. If the CMS decision holds, it would disqualify Arizona from receiving stimulus money that would increase the amount the federal government pays for AHCCCS patients from 66 cents on the dollar to 75 cents.
In a letter to Interim Health and Human Services Director Charles Johnson, Governor Brewer argues that the change was actually passed before the July deadline regardless of the effective date, and that ensuring AHCCCS clients are eligible does not necessarily result in decreased eligibility.
Also in stimulus news this week, the White House released additional details on Arizona's allocation of the Energy Efficiency Block Grant (EEBG) program. Arizona's total allocation is over $63 million, distributed between the state energy office, cities, counties, and tribes. The grant are designed to reduce carbon emissions and increase energy efficiency.
To view the amount of funding for EEBG grants available in your county, click here. If your county does not receive a direct allocation, you can apply for grant funding from the state energy office. For more information on state grants, contact Robin Boudreau at the Arizona Dept. Of Commerce Energy Office at 602-771-1153. Top
The National Association of Counties (NACo) will kick off its free "Leading in Tough Times" webinar series on Thursday, April 2 with a presentation on "Implementation of the Stimulus Package: What Counties Need to Know."
The 75 minute webinar begins at 2:00 p.m. Eastern Time (11:00 a.m. Arizona time).
Members of the House and Senate Appropriations committees continued to narrow down options for cutting the state budget this week, with the chambers releasing initial proposals that would reduce the short fall. Watch for more details on those proposals next week. Meanwhile, Senate Majority Whip Pamela Gorman (R-6) has said that she is accepting ideas from the public on how to cut the state budget in order to avoid a tax increase. To submit an idea to Senator Gorman, email her at pgorman@azleg.gov.
The legislature heard the following county related bills last week:
HB 2063: probation; registration; monitoring (Konopnicki) passed House Rules 8-0.
HB 2106: prohibit photo radar; state highways (Crump) (Strike Everything: Same subject) passed House Appropriations 6-4.
HB 2253: public legal notices; committee (Jones) passed House Committee of the Whole.
HB 2258: consumer fireworks (Biggs) passed House Committee of the Whole.
HB 2268: county and municipal budgets (Crump) passed House Rules 8-0.
HB 2329: solar energy; permit fees (Boone) passed House Rules 8-0.
HB 2331: federal immigration law; enforcement (Boone) passed House Rules 8-0.
HB 2480: regional transportation authorities; qualifying counties (Jones) passed House Rules 8-0.
HB 2615: government transparency; political subdivisions (Montenegro) passed House Rules 8-0.
The legislature will consider the following proposals with county impact next week. Click here to watch the committee hearings live, or click here to view archived video of committees. (Agendas are subject to change; visit the legislative calendar for updates on daily calendars.).
HB 2070: initiative and referendum; signature verification (Biggs) and
HB 2106: prohibit photo radar; state highways (Crump) and
HB 2170: state photo radar enforcement; repeal (Biggs) and
HB 2458: dogs; cats; release from pound (Court) and
HB 2487: county hotel tax; tourism distribution (Antenori) will be heard in House Rules on Monday, March 30 at 1:00 p.m. in House Room 4.
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