Hull says key budget words are 'balanced and biennial'

Gov. Jane Dee Hull warned legislators at the opening of yesterday's special session not to overlook balancing next year's state budget, which will face an even greater deficit than this year's budget.

The two-year, $1.56 state budget shortfall has forced state agencies to cut at least 4 percent from their fiscal year budgets to fulfill this year's $675 million shortfall. Next year the shortfall will be at least $850 million.

"The numbers we are looking at today may be the 'best case' scenario," Hull told lawmakers. "Many economists are saying things could get worse. We must write a budget based on the best information we have now, not one based on wishful thinking or blind optimism."

Hull warned the Legislature not to ignore next year's budget by only dealing with the current year, saying she would "not support any solution that ties our hands."

She said if lawmakers drag out the budget negotiations they could cause the state's financial rating to drop, which would make it more expensive to borrow money for things like freeway and road construction.

She hopes that the legislature can balance the state's budget quickly, and has promised turkey to legislators if they can balance the budget before Nov. 22.

But it looks like they might be getting fruitcake instead. Many lawmakers believe the deliberations may run into December.

Hull pointed to the budget cut recommendations she released late last week. She labeled education, public safety and health as the state's most important programs, but said all programs, with the exception of kindergarten through 12th grade education, would be hit in one way or another by her recommendations.

The governor received some resistance to her suggestion to shrink state employee salary increase planned for April from 5 percent to 3 percent and push the imbursement date to July.

More than 1,000 angry state employees protested that move outside the State Capitol yesterday.

UA President Peter Likins said last week that he does not agree with Hull's recommendation for the salary increase changes, but he added that the governor has a 'challenge' and is trying to steer clear of the three universities' budgets as much as possible.

State universities have already been hit hard by the cuts. University of Arizona administrators have spent the last two months trying to find $13.9 million to send back to the state, and that number could grow depending on how legislators choose to handle the cuts.

In her speech, Hull also applauded Likins' decision to eliminate the Arizona International College.

"This is the type of tough decision that must be made if we are to move forward," Hull said. "The president is the proper person to make it."

UA administrators and student lobbyists want the university cuts to remain at 4 percent.

Hull is supportive of their 'no more than four' campaign, but support from both the Arizona House of Representatives and Senate is needed to keep the number low.

The special session could run into December, but the state's three universities are hoping the Legislature will announce the cuts for those agencies sometime this week or next.