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Wednesday January 10, 2001

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Health care, state employee pay top Hull's State of the State

Headline Photo

By Eric Swedlund

Arizona Daily Wildcat

With pledges to increase pay for state employees, devote money to mental

health programs and continue the fight to improve education, Arizona Gov. Jane Hull opened the 2001 legislative session with her State of the State address Monday.

Hull called 2000 a year of "the highest of highs and the lowest of lows," as evidenced by the approval of her Education 2000 plan and the costly alternative fuel situation.

"I was tired of seeing our beautiful state come in last in terms of children, healthcare and education," Hull said. "Now, in my fourth year as

governor, I can say I'm doing just that. I changed the direction of the

state."

As the Senate and House prepare to begin their regular session, Hull

pointed to two key components of her budget proposal - $290 million for

pay and benefits for state employees and $155 million for Seriously

Mentally Ill programs.

The Republican governor said state employees are paid 13 percent less than the market average, and nearly 41 percent of new employees leave state

government within the first six months.

"We need a modern, efficient state government staffed by highly educated

and compensated employees," Hull said. "I want to tell state employees

that we recognize their contributions with a fair wage."

Hull's budget proposal would also more than double the funding for the mentally ill, which she referred to as "our most vulnerable population."

With voter approval of Prop. 300 in November, Hull's 0.06 percent

sales tax plan will pump an estimated $459 million into the state's educational programs.

While most of that money will go to the K-12 system, 12 percent is devoted to the state's three universities. The Arizona Board of Regents will decide how exactly the money is split.

"A dynamic post-secondary education system is crucial to a strong Arizona

future," Hull said.

As Hull presented her budget proposal, she said it is imperative to recognize that the healthy economy is projected to slow down. Additionally, the budget must continue with tax cuts - which would make 11 straight years of tax relief in Arizona.

Hull's tax cut proposal includes $40 million in selective tax cuts targeted to help the economy and another $40 million to implement Truth in Taxation property tax reduction.

House Speaker Jim Weiers, R-Phoenix, said he wants a bigger tax cut, possibly of bus taxes or individual income taxes.

''I'd like to see $100 million,'' he said.

Hull also needs to keep in mind the problems rural health care face, said Sen. John Verkamp, R-Flagstaff.

''It's not something that she dwelled on, but it's going to be a major issue," he said.