In the August 7, 2009 CSA Update;
Budget Update: Still Searching for 16 Votes
The legislature reconvened in special session again this week to try to tackle the growing budget problem. But due to continued attendance issues, the Senate could not muster 16 votes, and Friday's session came and went with no significant floor action.
The Senate is lacking the necessary votes, as Senators Gould, Gorman, and Carolyn Allen are reportedly voting "no" on some or all of the budget package. Some Senators were away from the chamber and leadership has found it difficult to work around political and attendance challenges. The Senate will reconvene on Monday, August 10.
In a leadership shake-up, Senator Pamela Gorman resigned as the Senate's Majority Whip, citing differences on tax and budget philosophy with President Bob Burns in her resignation letter. Caucus members selected freshman Senator Steve Pierce of Prescott to fill the Whip role.
Revenue Collections Down 18 Percent in FY09 as Deficit Deepens
Fiscal year 2009 came to an end with state revenues down an average of 18 percent from last year's levels. Revenue collections were at their lowest since 2005 and displayed the largest percentage or dollar drop in revenues on record going back to World War II. This year's collection dropped by $7.69 billion dollars, leaving the state with a shortfall in FY09 of nearly $900 million.
Tax collections were down dramatically in a number of categories. Sales tax revenues were down 13 percent compared to FY2008, and both corporate and individual income taxes were down 24 percent below last year.
Despite the efforts by lawmakers earlier this year to fix a $700 million dollar deficit, declining revenues, delays in federal funding, and budget related litigation (among other factors) have left the state with an addition $200 million hole that will need to filled in FY10. No plans to fix the remaining FY09 deficit are yet included in the FY10 plan, which itself aims to solve a shortfall currently projected at $3.2 billion.
Scientific American: Four Day Work Week Means Real Savings
As local governments in Arizona begin to explore a four day work week, Scientific American's review of similar policies across the nation finds that in many cases the plan yields balance for employees, cost savings for employers, and benefits for the environment.
The article takes a close look at a plan implemented in Utah by Governor Jon Huntsman to convert many state agencies to a four day schedule. Experts in the article say that employees have responded positively to the change (in a recent, 82% of workers on the plan preferred to keep the new schedule), and the state estimates it saved $1.8 million in utility costs from August 2008 to May 2009.
The article also cites a study on carbon emission reductions as a result of the Utah plan: since buildings are closed one day a week, that means less energy use and fewer cars on the road if employees don't come to work. The report, released in February "projected a drop of at least 6,000 metric tons of carbon dioxide emissions annually from Friday building shutdowns. If reductions in greenhouse gases from commuting are included, the state would check the generation of at least 12,000 metric tons of CO2the equivalent of taking about 2,300 cars off the road for one year.
Here in Arizona, Navajo County employees and residents are getting accustomed to the new four day schedule. To encourage county employees to use public transportation, White Mountain Connection (the bus service serving Navajo County) has adjusted bus schedules to coincide with the new four-day work week.
Read the entire Scientific American article
here.
CSA Outreach Tour Continues
After visiting Mohave and Coconino counties last week, CSA will continue its outreach tour back in Northern Arizona with stops in Apache and Navajo counties next week. Additional dates include:
August 17, 2009 - Yuma County (morning)
La Paz County (afternoon)
August 19, 2009 - Pinal County
August 25, 2009 - Gila County
August 26, 2009 - Santa Cruz County
September 1, 2009- Cochise County
September 15,2009- Graham and Greenlee Counties
September 21, 2009- Yavapai County
More dates are coming soon. See you on the road!
