Reports from the legislature indicated that leadership is checking with members to see who might be available for a December special session, which would convene before the regular session begins on January 11.

Governor Brewer told reporters that she would support a December special session to approve additional budget cuts and refer a temporary sales tax increase to the ballot. Although the Governor met with House and Senate leaders this week, no details were released on what kinds of cuts might be made or who would be available.

The legislature must act before the December holidays to refer a tax increase to the ballot in the March local election.

Fourteen legislators were away from the Capitol this week attending the American Legislative Exchange Council's State and National Policy Summit in Washington, D.C.

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October State Revenues Continue to Disappoint

State general fund revenue collections in October came in $142 million under forecast, putting the current year deficit at $1.6 billion with only eight months in the fiscal year left.

Revenue collections were 23 percent below October 2008 collections, making October the 15th consecutive month of double digit declines in general fund revenue collections compared to the same month of the prior year. General fund revenue is comprised almost entirely of sales and income taxes. Sales tax collections in October were down 18%  compared to October of last year. Individual income tax collections were down 35 percent and corporate income tax collections were down 11 percent. 

Weak general fund revenue collections and other factors have resulted in the state having to borrow from other state-held funds in order to meet general fund expenses. The state has also signed an agreement with the Bank of America which will allow the state to borrow up to $700 million by issuing Treasurer's Warrant Notes.

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