Decision to seek full term may rest on outcome of sales-tax hike, adviser says
By Matthew Benson
The Arizona Republic
Gov. Jan Brewer on Thursday told The Arizona Republic that she's "leaning" toward seeking a full term as governor next year, the clearest indication to date of her campaign plans.
The Republican's statement goes a long way toward answering one of the biggest questions in Arizona politics leading up to the 2010 election. It also appears aimed at sending a signal to members of her own party who - some openly and some not - have been weighing gubernatorial campaigns of their own.
"I'm leaning in that direction, towards running," Brewer said during an hour-long interview Thursday. "I know the amount of commitment, the amount of time that it takes."
Formerly the secretary of state, Brewer automatically became governor in January following the resignation of then-Gov. Janet Napolitano. Since then, Brewer has been focused on resolving a multibillion-dollar state budget shortfall that has roiled the Capitol and left state government in limbo. Brewer has until Sept. 5 to sign or veto a legislative budget plan on her desk, and she continues to press for a temporary sales-tax hike to prop up state coffers until the economy recovers.
"I feel that I need to finish the state's business for this year. I feel that responsibility very strongly," Brewer said. "If I can get the state's business under control, then I can possibly, hopefully, get organized to run."
She clearly hedged her words.
Friend and political adviser Chuck Coughlin said Brewer "wants to run," but his counsel on whether she should do so may depend on whether she gets the tax hike she seeks. A majority of Republican legislators in the House and Senate have voted to refer the proposal to a special-election ballot, but not a single Democrat has signed on.
"My belief is that (Brewer's campaign decision) hinges on whether or not she has the tools to govern," Coughlin said, referencing the estimated $2.5 billion that would be generated over three years by the tax increase. "If Democrats are unwilling to help her, than maybe she'll give this job back to them."
Brewer's persistent - critics might say obsessive - push for the sales tax has alienated her in some Republican quarters. That, together with her apparent lack of preparation for a statewide race in terms of fundraising and organization of a campaign team, has led many politicos to speculate that she won't seek election next year.
State Treasurer Dean Martin and Paradise Valley Mayor Vernon Parker are among prominent Republicans who've voiced interest in seeking their party's gubernatorial nomination. On the Democratic side, Attorney General Terry Goddard is the prohibitive favorite.
Brewer, meanwhile, has clearly been eyeing the campaign.
Late last month, Coughlin traveled with her to Biloxi, Miss., for the Republican Governors' Association annual conference, an opportunity for him to test the political waters for Brewer and gauge financial backing.
If Brewer opts to run, Coughlin said, the national support will be there.
Despite the Capitol rumor mill, Brewer pushed back against any notion of lame duck Thursday. She said she loves her job, and sounded enthusiastic about one more political campaign and her prospects to emerge victorious.
"I love being governor, and I love campaigning," Brewer said, noting that she has never lost an election in more than two decades as a legislator, county supervisor and state official.
"I love being part of the decision-making in the state of Arizona. I think I've served the people well."
Do you Approve or Disapprove of the job performance of Arizona Governor Jan Brewer?
Friday, August 28, 2009
Sunday, August 23, 2009
Arizona Republic: Arizona politicians line up for doomed position
Commentary by Robert Robb
From the political notebook:
There is growing interest among politicians to run for governor in 2010. That simply demonstrates that politicians have more ambition than sense.
2010 will be a terrible year to be elected governor. Even if the economy
recovers and even if Gov. Jan Brewer's sales-tax hike is approved, the state will still face a general-fund deficit of roughly $2 billion, or about 20 percent of expenditures.
The next governor will almost inevitably have to superintend a big tax increase, huge cuts in spending or some combination of both.
The public, as is its wont, won't believe that such unpleasant choices are really necessary. Other politicians will feed and reinforce that delusion.
In short, the next governor will have a miserable experience and undoubtedly end up being wildly unpopular.
Yet politicians are lining up for the job.
Brewer's retinue asserts that she wants to keep the job, although interestingly she hasn't taken concrete steps to set up a campaign apparatus, at least publicly.
Attorney General Terry Goddard is all but certain to be the Democratic nominee, and there's a good chance that the public will blame Republicans for the state's budget mess and turn to a Democrat for some cleanup.
This would be tragicomic. Despite his long quest to become governor, Goddard has the soul of a mayor. The issues of urban form and design are what most engage him. Dealing with the repair of state finances after this fiscal tsunami would be almost like a sentence for him. Yet run he undoubtedly will.
On the Republican side, State Treasurer Dean Martin and Paradise Valley Mayor Vernon Parker have openly declared an interest. Several others are mulling it.
Being a successful politician requires a high-degree of self-confidence and perhaps even a small measure of self-delusion. Undoubtedly these people believe they can make tough decisions and get people to respect and like them for it.
They can't.
Martin's potential candidacy is the most perplexing to me and not because of his recent family tragedy that others dwell on. I leave that for Martin to sort out on his own.
From a political perspective, Martin is in just his first term as treasurer. He has played the role, usefully, of the honest broker of information about the state's financial condition without getting bloodied in the fights about what to do about it.
There's a high probability he could get re-elected and continue that role for another four years. He would then have the inside track on the Republican gubernatorial nomination in 2014.
And 2014 will probably be a great time to be elected governor. One way or another, the state's finances should be largely straightened out by then and the economy will probably be at least OK.
Martin probably thinks the state's current problems fit his expertise, and to a large extent they do. But they are also big enough to devour whatever politician takes them on.
From the political notebook:
There is growing interest among politicians to run for governor in 2010. That simply demonstrates that politicians have more ambition than sense.
2010 will be a terrible year to be elected governor. Even if the economy
recovers and even if Gov. Jan Brewer's sales-tax hike is approved, the state will still face a general-fund deficit of roughly $2 billion, or about 20 percent of expenditures.The next governor will almost inevitably have to superintend a big tax increase, huge cuts in spending or some combination of both.
The public, as is its wont, won't believe that such unpleasant choices are really necessary. Other politicians will feed and reinforce that delusion.
In short, the next governor will have a miserable experience and undoubtedly end up being wildly unpopular.
Yet politicians are lining up for the job.
Brewer's retinue asserts that she wants to keep the job, although interestingly she hasn't taken concrete steps to set up a campaign apparatus, at least publicly.
Attorney General Terry Goddard is all but certain to be the Democratic nominee, and there's a good chance that the public will blame Republicans for the state's budget mess and turn to a Democrat for some cleanup.
This would be tragicomic. Despite his long quest to become governor, Goddard has the soul of a mayor. The issues of urban form and design are what most engage him. Dealing with the repair of state finances after this fiscal tsunami would be almost like a sentence for him. Yet run he undoubtedly will.
On the Republican side, State Treasurer Dean Martin and Paradise Valley Mayor Vernon Parker have openly declared an interest. Several others are mulling it.
Being a successful politician requires a high-degree of self-confidence and perhaps even a small measure of self-delusion. Undoubtedly these people believe they can make tough decisions and get people to respect and like them for it.
They can't.
Martin's potential candidacy is the most perplexing to me and not because of his recent family tragedy that others dwell on. I leave that for Martin to sort out on his own.
From a political perspective, Martin is in just his first term as treasurer. He has played the role, usefully, of the honest broker of information about the state's financial condition without getting bloodied in the fights about what to do about it.
There's a high probability he could get re-elected and continue that role for another four years. He would then have the inside track on the Republican gubernatorial nomination in 2014.
And 2014 will probably be a great time to be elected governor. One way or another, the state's finances should be largely straightened out by then and the economy will probably be at least OK.
Martin probably thinks the state's current problems fit his expertise, and to a large extent they do. But they are also big enough to devour whatever politician takes them on.
Arizona Daily Star: Tax foe in DC casts long shadow over Legislature
By Daniel Scarpinato
ARIZONA DAILY STAR
PHOENIX — When Grover Norquist penned his book last year, the anti-tax, small-government crusader went with a title that pretty much sums up his modus operandi: "Leave us alone."
Now, some state Democrats are saying that's exactly what Norquist should do to Arizona.
Even though he operates from more than 2,000 miles away, the powerful national Republican strategist has been a key figure in Arizona's debate this year over how to balance the state's multibillion-dollar budget deficit.
Chances are you never heard of the guy. But Norquist's many followers in the state Legislature have taken his lead on whether the state should ask voters to raise the sales tax.
In particular, 32 lawmakers have bound themselves to a pledge to never raise taxes. No way; no how.
It's a vow they've taken through a group Norquist founded nearly 25 years ago at the request of then-President Ronald Reagan — Americans for Tax Reform.
With Republican Gov. Jan Brewer calling for a controversial ballot referral asking voters to hike the sales tax, many in her party would not agree with the idea until Norquist weighed in recently. Such a move would not violate the pledge, he said, since it's coupled with even larger tax cuts in future years.
Norquist, in an interview with the Arizona Daily Star, says the pledge is one lawmakers make to their constituents — not to him or Americans for Tax Reform.
Democrats, however, say he holds undue influence over Arizona's fiscal policy.
Sen. Debbie McCune Davis, D-Phoenix, calls Norquist Arizona's "shadow governor."
"I think he's in play as we're making decisions here," says the veteran lawmaker, who questions whether her Republican colleagues are more loyal to his pledge than they are to the constitution.
Norquist calls claims like that "silly."
"I don't play any role at all," he said by phone from his Washington office last week. "The constituents make the decision."
In fact, Norquist says he never gave anyone "permission" to support Brewer's referral. He merely said it wouldn't violate the pledge. And even that didn't persuade enough lawmakers to send it to the ballot, as Brewer and GOP leaders are still trying to hammer out a deal.
"That was not an endorsement," he said. "It just said it was revenue-neutral."
Norquist — a now oft-mentioned name in the halls of the state Capitol — says the beauty of the pledge is its simplicity.
"The coin is heads and tails," he said. "It never lands on its side. It's a tax increase or it isn't."
Too soft?
Not all pledge signers are pleased with the conservative mastermind's interjection into Arizona's budget debate.
Even after Norquist signaled the budget was appropriate to vote for, Sen. Ron Gould, R-Lake Havasu, wasn't budging. Gould says Norquist showed lawmakers how to "game the pledge."
"He caved," says Gould. "Grover doesn't control me. Grover has never controlled me."
In fact, Gould says he'll think twice about signing in the future. "Maybe I'll have Grover sign my pledge," he quipped.
But talking to Norquist, it's hard to see him as a softie on fiscal issues.
After all, this is the same guy who once said he wanted to starve government to a size small enough to drown in a bathtub.
Norquist's own conservative bona fides run deep.
Harvard-educated, he co-authored Newt Gingrich's "Contract With America" in 1994. He's credited with building George W. Bush's grass-roots support for president back in 1999. His close association with Bush, coupled with his longtime friendship with Karl Rove, allowed him to participate in crafting the Bush administration's tax policy.
He's been an easy target for Democrats, who often cite his saucy sound bites.
Norquist once called Maine Sens. Susan Collins and Olympia Snowe and Arizona Sen. John McCain "the two girls from Maine and the nut-job from Arizona."
Last summer, aiming to tie Barack Obama to losing Democratic candidates from the past three decades, Norquist called Obama John Kerry "with a tan."
And in a speech this month before the Americans for Prosperity Foundation's RightOnline 2009 Conference, Norquist called Democrats "the takings coalition."
"The left is not made up of friends and allies," he said. "It's made up of competing parasites."
"If we don't let them gnaw on us, they will just as easily gnaw on the guy sitting next to them," he added.
State Rep. Jonathan Paton, R-Tucson, calls Norquist a smart guy with good ideas. But after signing the pledge in 2004, he chose not to renew his vow in recent years.
Why? He doesn't like taking an oath to an organization.
"Yeah, people say it's to your district, but it's still promising something that someone else is going to hold you to," Paton said.
Arizona on his mind
Norquist and his group have cast their attention to other states, as well.
But with Arizona having the worst budget deficit, relative to spending, in the country, and the tax debate being more heated here than most states, it has been a spot of particular interest. The state also has one of the highest percentages of state lawmakers who have taken the pledge — 30 percent in the Senate and 35 percent in the House.
And the 52-year-old strategist's understanding of Arizona's current political climate runs deeper than that of many of the state's own citizens.
He cites Chuck Caughlin, Brewer's friend and unofficial strategist whom many credit — or blame — for the sales-tax-referral idea.
"I don't understand why Caughlin is taking this approach and pushing this increase," Norquist says.
He knows state Treasurer Dean Martin, the fiscal conservative who is flirting with a gubernatorial bid, possibly against Brewer in a primary.
"He's a good guy," Norquist says of Martin. "He's a serious political leader."
And he blames former Gov. Janet Napolitano for running the state into the red.
It was Napolitano, he says, who grew state spending, only to resign once revenues dropped, for a Cabinet position in the Obama administration.
"It's like starting a fire and fleeing the scene," Norquist said of Napolitano.
While he clearly disagrees with her tax call, Norquist gives Brewer a pass.
"I think one of the challenges is that sometimes politicians think it's their job to raise taxes to cover the costs of other people's spending," he says.
His apparent interest in Arizona has only given Democrats more ammunition to criticize the influence they say he holds over the Legislature.
But state Sen. John Huppenthal, R-Chandler, says he didn't take the pledge out of devotion to Norquist. He took it, he says, because he believes in small government.
"All 17 years I've been down here, lowering taxes has been a way of life for me," he said.
ARIZONA DAILY STAR
PHOENIX — When Grover Norquist penned his book last year, the anti-tax, small-government crusader went with a title that pretty much sums up his modus operandi: "Leave us alone."
Now, some state Democrats are saying that's exactly what Norquist should do to Arizona.
Even though he operates from more than 2,000 miles away, the powerful national Republican strategist has been a key figure in Arizona's debate this year over how to balance the state's multibillion-dollar budget deficit.
Chances are you never heard of the guy. But Norquist's many followers in the state Legislature have taken his lead on whether the state should ask voters to raise the sales tax.In particular, 32 lawmakers have bound themselves to a pledge to never raise taxes. No way; no how.
It's a vow they've taken through a group Norquist founded nearly 25 years ago at the request of then-President Ronald Reagan — Americans for Tax Reform.
With Republican Gov. Jan Brewer calling for a controversial ballot referral asking voters to hike the sales tax, many in her party would not agree with the idea until Norquist weighed in recently. Such a move would not violate the pledge, he said, since it's coupled with even larger tax cuts in future years.
Norquist, in an interview with the Arizona Daily Star, says the pledge is one lawmakers make to their constituents — not to him or Americans for Tax Reform.
Democrats, however, say he holds undue influence over Arizona's fiscal policy.
Sen. Debbie McCune Davis, D-Phoenix, calls Norquist Arizona's "shadow governor."
"I think he's in play as we're making decisions here," says the veteran lawmaker, who questions whether her Republican colleagues are more loyal to his pledge than they are to the constitution.
Norquist calls claims like that "silly."
"I don't play any role at all," he said by phone from his Washington office last week. "The constituents make the decision."
In fact, Norquist says he never gave anyone "permission" to support Brewer's referral. He merely said it wouldn't violate the pledge. And even that didn't persuade enough lawmakers to send it to the ballot, as Brewer and GOP leaders are still trying to hammer out a deal.
"That was not an endorsement," he said. "It just said it was revenue-neutral."
Norquist — a now oft-mentioned name in the halls of the state Capitol — says the beauty of the pledge is its simplicity.
"The coin is heads and tails," he said. "It never lands on its side. It's a tax increase or it isn't."
Too soft?
Not all pledge signers are pleased with the conservative mastermind's interjection into Arizona's budget debate.
Even after Norquist signaled the budget was appropriate to vote for, Sen. Ron Gould, R-Lake Havasu, wasn't budging. Gould says Norquist showed lawmakers how to "game the pledge."
"He caved," says Gould. "Grover doesn't control me. Grover has never controlled me."
In fact, Gould says he'll think twice about signing in the future. "Maybe I'll have Grover sign my pledge," he quipped.
But talking to Norquist, it's hard to see him as a softie on fiscal issues.
After all, this is the same guy who once said he wanted to starve government to a size small enough to drown in a bathtub.
Norquist's own conservative bona fides run deep.
Harvard-educated, he co-authored Newt Gingrich's "Contract With America" in 1994. He's credited with building George W. Bush's grass-roots support for president back in 1999. His close association with Bush, coupled with his longtime friendship with Karl Rove, allowed him to participate in crafting the Bush administration's tax policy.
He's been an easy target for Democrats, who often cite his saucy sound bites.
Norquist once called Maine Sens. Susan Collins and Olympia Snowe and Arizona Sen. John McCain "the two girls from Maine and the nut-job from Arizona."
Last summer, aiming to tie Barack Obama to losing Democratic candidates from the past three decades, Norquist called Obama John Kerry "with a tan."
And in a speech this month before the Americans for Prosperity Foundation's RightOnline 2009 Conference, Norquist called Democrats "the takings coalition."
"The left is not made up of friends and allies," he said. "It's made up of competing parasites."
"If we don't let them gnaw on us, they will just as easily gnaw on the guy sitting next to them," he added.
State Rep. Jonathan Paton, R-Tucson, calls Norquist a smart guy with good ideas. But after signing the pledge in 2004, he chose not to renew his vow in recent years.
Why? He doesn't like taking an oath to an organization.
"Yeah, people say it's to your district, but it's still promising something that someone else is going to hold you to," Paton said.
Arizona on his mind
Norquist and his group have cast their attention to other states, as well.
But with Arizona having the worst budget deficit, relative to spending, in the country, and the tax debate being more heated here than most states, it has been a spot of particular interest. The state also has one of the highest percentages of state lawmakers who have taken the pledge — 30 percent in the Senate and 35 percent in the House.
And the 52-year-old strategist's understanding of Arizona's current political climate runs deeper than that of many of the state's own citizens.
He cites Chuck Caughlin, Brewer's friend and unofficial strategist whom many credit — or blame — for the sales-tax-referral idea.
"I don't understand why Caughlin is taking this approach and pushing this increase," Norquist says.
He knows state Treasurer Dean Martin, the fiscal conservative who is flirting with a gubernatorial bid, possibly against Brewer in a primary.
"He's a good guy," Norquist says of Martin. "He's a serious political leader."
And he blames former Gov. Janet Napolitano for running the state into the red.
It was Napolitano, he says, who grew state spending, only to resign once revenues dropped, for a Cabinet position in the Obama administration.
"It's like starting a fire and fleeing the scene," Norquist said of Napolitano.
While he clearly disagrees with her tax call, Norquist gives Brewer a pass.
"I think one of the challenges is that sometimes politicians think it's their job to raise taxes to cover the costs of other people's spending," he says.
His apparent interest in Arizona has only given Democrats more ammunition to criticize the influence they say he holds over the Legislature.
But state Sen. John Huppenthal, R-Chandler, says he didn't take the pledge out of devotion to Norquist. He took it, he says, because he believes in small government.
"All 17 years I've been down here, lowering taxes has been a way of life for me," he said.
Friday, August 21, 2009
Arizona Capitol Times: Draft Dean Martin for governor campaign begins
By Jeremy Duda
An anonymous Web site seeking to draft state Treasurer Dean Martin into the 2010 governor’s race is up and running, signaling what could be an early start to a Republican primary campaign that many observers expect to be crowded - whether Gov. Jan Brewer runs or not.
Martin, one of more than a dozen Republicans whose names are being floated as possible candidates, said he is considering a run for governor, though he said he has not made a final decision and still plans to run for re-election as treasurer. Martin said he did not know who was running the site, www.draftdeanmartin4governor.com.
“I don’t know who it is. I’ve asked the people who worked on my campaign in the past, and they said no, they’re not doing it. I’m not quite sure who it is,” Martin said.
The site was registered on Aug. 13, just days after Martin told reporters that he was considering a run for governor. The site was registered with GoDaddy.com by Domains By Proxy Inc., a Scottsdale- based company that allows clients to register Web sites anonymously.
The creators of the site give no indication as to their identity, and have no contact information available online. The content includes a number of newspaper and blog articles about Martin and the state’s fiscal crisis, as well as a brief “about me” section explaining the site’s goal.
Brewer’s call for a temporary sales tax increase to balance the state’s budget, and her early July veto of a budget that did not refer the question to the ballot for voters to decide, has generated a great deal of discontent among Republicans, who had high hopes for Brewer after she replaced Democratic Gov. Janet Napolitano. Brewer has not said whether she will run for a full term in 2010.
No Arizona treasurer has ever become governor, or even won the nomination from either party. Former Treasurer Carol Springer, who sought the GOP nomination in 2002, isn’t reading much into that trend, however, and notes that treasurers in many other states have gone on to serve as governor.
“In other states, treasurers have been successful, just not in Arizona,” said Springer, who now serves on the Yavapai County Board of Supervisors. “So I don’t think that there is anything particularly detrimental, let’s say, to being treasurer and running for that office. I think anyone who’s achieved that office, especially someone who’s gone through the Legislature, is certainly qualified.” Considering today’s economic climate and the depth of the state’s fiscal crisis, Springer said a gubernatorial candidate with a strong finance background could be appealing to voters. Martin, who has publicly criticized both Napolitano and Brewer over budget issues, agrees, though he said there is more to being governor than just maneuvering through the budget process.
“I think definitely people are going to be more interested in people with financial backgrounds and experience,” he said. “But at the end of the day it’s a much bigger office, and there’s a large variety of issues that you’re going to have to talk about. Obviously, the economy and the budget are on top of everybody’s mind right now because there is no budget. But that will change.”
Martin’s chances of winning the Republican nomination are hard to assess, Springer said, because Brewer might seek a full term, and other prominent Republicans might jump into the race as well. Despite speculation that Brewer will bow out of the race, Springer, who served for years with her in the Legislature, thinks the governor will run.
“Obviously, running against an incumbent of the same party would be something of a handicap, I think,” Springer said. “She certainly is qualified and (has) a little experience, albeit under a very difficult situation. I do think that she will run.”
Others who are rumored to be considering a run for governor include Secretary of State Ken Bennett, U.S. Rep. Jeff Flake, Tempe Mayor Hugh Hallman, former Congressman J.D. Hayworth, former Graham County Sheriff Richard Mack, 2006 Republican nominee Len Munsil, former Arizona Republican Party Chairman John Munger, former U.S. Transportation Secretary Mary Peters and Maricopa County Attorney Andrew Thomas.
An anonymous Web site seeking to draft state Treasurer Dean Martin into the 2010 governor’s race is up and running, signaling what could be an early start to a Republican primary campaign that many observers expect to be crowded - whether Gov. Jan Brewer runs or not.
Martin, one of more than a dozen Republicans whose names are being floated as possible candidates, said he is considering a run for governor, though he said he has not made a final decision and still plans to run for re-election as treasurer. Martin said he did not know who was running the site, www.draftdeanmartin4governor.com.
“I don’t know who it is. I’ve asked the people who worked on my campaign in the past, and they said no, they’re not doing it. I’m not quite sure who it is,” Martin said.
The site was registered on Aug. 13, just days after Martin told reporters that he was considering a run for governor. The site was registered with GoDaddy.com by Domains By Proxy Inc., a Scottsdale- based company that allows clients to register Web sites anonymously.
The creators of the site give no indication as to their identity, and have no contact information available online. The content includes a number of newspaper and blog articles about Martin and the state’s fiscal crisis, as well as a brief “about me” section explaining the site’s goal.
Brewer’s call for a temporary sales tax increase to balance the state’s budget, and her early July veto of a budget that did not refer the question to the ballot for voters to decide, has generated a great deal of discontent among Republicans, who had high hopes for Brewer after she replaced Democratic Gov. Janet Napolitano. Brewer has not said whether she will run for a full term in 2010.
No Arizona treasurer has ever become governor, or even won the nomination from either party. Former Treasurer Carol Springer, who sought the GOP nomination in 2002, isn’t reading much into that trend, however, and notes that treasurers in many other states have gone on to serve as governor.
“In other states, treasurers have been successful, just not in Arizona,” said Springer, who now serves on the Yavapai County Board of Supervisors. “So I don’t think that there is anything particularly detrimental, let’s say, to being treasurer and running for that office. I think anyone who’s achieved that office, especially someone who’s gone through the Legislature, is certainly qualified.” Considering today’s economic climate and the depth of the state’s fiscal crisis, Springer said a gubernatorial candidate with a strong finance background could be appealing to voters. Martin, who has publicly criticized both Napolitano and Brewer over budget issues, agrees, though he said there is more to being governor than just maneuvering through the budget process.
“I think definitely people are going to be more interested in people with financial backgrounds and experience,” he said. “But at the end of the day it’s a much bigger office, and there’s a large variety of issues that you’re going to have to talk about. Obviously, the economy and the budget are on top of everybody’s mind right now because there is no budget. But that will change.”
Martin’s chances of winning the Republican nomination are hard to assess, Springer said, because Brewer might seek a full term, and other prominent Republicans might jump into the race as well. Despite speculation that Brewer will bow out of the race, Springer, who served for years with her in the Legislature, thinks the governor will run.
“Obviously, running against an incumbent of the same party would be something of a handicap, I think,” Springer said. “She certainly is qualified and (has) a little experience, albeit under a very difficult situation. I do think that she will run.”
Others who are rumored to be considering a run for governor include Secretary of State Ken Bennett, U.S. Rep. Jeff Flake, Tempe Mayor Hugh Hallman, former Congressman J.D. Hayworth, former Graham County Sheriff Richard Mack, 2006 Republican nominee Len Munsil, former Arizona Republican Party Chairman John Munger, former U.S. Transportation Secretary Mary Peters and Maricopa County Attorney Andrew Thomas.
Wednesday, August 19, 2009
Arizona Capitol Times: State spending tracks higher than last year
By Luige del Puerto
So far, Arizona has spent more money this fiscal year than it did during the same period last year.
Between July 1 and Aug. 17, the state spent $164 million more than it did during the same period in 2008, according to figures provided by the state Treasure’s Office.
Adjusted for rollover difference, the state has cumulatively spent $2.1 billion as of Aug. 17, compared to $1.98 billion at the same date last year.
Sen. Thayer Verschoor, a Republican from Gilbert, was perplexed by the numbers.
"I don’t understand that," he said. "At the same time, every day we are running negative balances."
As of Aug. 19, Arizona was $386 million in the red, according to the state Treasurer’s Office.
Treasurer Dean Martin said there are a few variables, including the fact that the days of the week during the period this year don’t necessarily line up with the days of the week during the same period last year. That comes into play when considering factors such as the payroll rotation for state employees.
Also, the spending figures fluctuate daily, he said.
But, to put it in better perspective, Martin said the state’s cash-flow position is much different this year than it was in fiscal 2008.
As of Aug. 19, the state was $386 million in the red. Compared that to the same period last year when the state was $650 million in the black.
"It is not just that we are spending at the same rate as last year, we are spending at the same rate with no money," he said, adding what his office has been saying is the general fund is broke.
"We can only keep the lights on for a limited amount of time before they have to start deciding who gets paid and who doesn’t get paid," Martin said.
Martin said his office doesn’t receive much of the data on specific spending by agencies. But he speculated that agencies have been authorized to spend more so far this year because Brewer line-item vetoed budget reductions last July.
Without a balanced budget in place, the state will run out of its ability to borrow money as early as middle of October. He said banks won’t loan the state money without a balanced budget in place because there is no guaranteed revenue source by which to pay back the loans.
Paul Senseman, the governor’s spokesperson, blamed the increase on mandatory growth spending. He cited as an example the growth-driven spending increases in the Arizona Health Care Cost Containment System (AHCCCS).
"AHCCCS has seen at least $300 million worth of mandatory increased spending, and that’s just occurred over the last several months," Senseman said. "If that should continue and unemployment continues to grow in the state, you would expect that AHCCCS costs would continue to increase. The Legislature and the governor can’t restrict those funds."
He said Gov. Jan Brewer made the largest spending cuts in Arizona history in her first few days in office. He said the state’s workforce was reduced by about 1,200, and thousands more were furloughed for various lengths of time.
"(But) even with the aggregate cuts that have been implemented by the governor and the Legislature, which were historic in nature, along with the governor’s relentless pursuit in her autonomous agencies of spending reduction and scrutinization of expenditures, it still won’t keep pace with the mandatory spending that’s locked in," Senseman said.
- Reporter Jeremy Duda contributed to this article.
So far, Arizona has spent more money this fiscal year than it did during the same period last year.
Between July 1 and Aug. 17, the state spent $164 million more than it did during the same period in 2008, according to figures provided by the state Treasure’s Office.
Adjusted for rollover difference, the state has cumulatively spent $2.1 billion as of Aug. 17, compared to $1.98 billion at the same date last year.
Sen. Thayer Verschoor, a Republican from Gilbert, was perplexed by the numbers.
"I don’t understand that," he said. "At the same time, every day we are running negative balances."
As of Aug. 19, Arizona was $386 million in the red, according to the state Treasurer’s Office.
Treasurer Dean Martin said there are a few variables, including the fact that the days of the week during the period this year don’t necessarily line up with the days of the week during the same period last year. That comes into play when considering factors such as the payroll rotation for state employees.
Also, the spending figures fluctuate daily, he said.
But, to put it in better perspective, Martin said the state’s cash-flow position is much different this year than it was in fiscal 2008.
As of Aug. 19, the state was $386 million in the red. Compared that to the same period last year when the state was $650 million in the black.
"It is not just that we are spending at the same rate as last year, we are spending at the same rate with no money," he said, adding what his office has been saying is the general fund is broke.
"We can only keep the lights on for a limited amount of time before they have to start deciding who gets paid and who doesn’t get paid," Martin said.
Martin said his office doesn’t receive much of the data on specific spending by agencies. But he speculated that agencies have been authorized to spend more so far this year because Brewer line-item vetoed budget reductions last July.
Without a balanced budget in place, the state will run out of its ability to borrow money as early as middle of October. He said banks won’t loan the state money without a balanced budget in place because there is no guaranteed revenue source by which to pay back the loans.
Paul Senseman, the governor’s spokesperson, blamed the increase on mandatory growth spending. He cited as an example the growth-driven spending increases in the Arizona Health Care Cost Containment System (AHCCCS).
"AHCCCS has seen at least $300 million worth of mandatory increased spending, and that’s just occurred over the last several months," Senseman said. "If that should continue and unemployment continues to grow in the state, you would expect that AHCCCS costs would continue to increase. The Legislature and the governor can’t restrict those funds."
He said Gov. Jan Brewer made the largest spending cuts in Arizona history in her first few days in office. He said the state’s workforce was reduced by about 1,200, and thousands more were furloughed for various lengths of time.
"(But) even with the aggregate cuts that have been implemented by the governor and the Legislature, which were historic in nature, along with the governor’s relentless pursuit in her autonomous agencies of spending reduction and scrutinization of expenditures, it still won’t keep pace with the mandatory spending that’s locked in," Senseman said.
- Reporter Jeremy Duda contributed to this article.
Treasurer: State broke, needs to enact budget
Associated Press
Arizona Treasurer Dean Martin said Wednesday that the state must enact a new state budget by the end of the week or it will lose the flexibility to borrow money from banks to continue paying its bills.
The state was $386 million in the red as of Wednesday and has been making up for it by borrowing money from some of the 1,800 state government funds. But Martin said the state will lose its flexibility to make internal loans when the figure hits the $500 million mark. Then it will need to borrow money from banks, but they're not willing to lend to the state until its budget is balanced.
Although Arizona isn't projected to reach its internal-loan limit until Oct. 15, Martin said the budget must get enacted this week to give the state the six to eight weeks needed to set up bank loans.
"It's like living paycheck to paycheck with your credit cards also being maxed out. That's basically where the state is right now," said Martin, a Republican.
The GOP-led Legislature has approved a budget-balancing package but hasn't yet sent it to Gov. Jan Brewer. The package doesn't include Brewer's proposal to ask voters to approve a sales tax increase, and the Republican vetoed key parts of a similar budget package last month because the tax proposal was missing.
Legislative leaders declined to specify when they would send the package to the governor, and the governor's office has declined to say whether she would sign it.
Brewer spokesman Paul Senseman said the state isn't in danger of running out of money to pay its bills, but the cash flow predicament could become more of a problem later.
Eileen Klein, Brewer's budget director, said it's not a certainty that the state would have to take out loans to improve its cash flow. The state could avoid such borrowing through the use of federal stimulus money and the enactment of a state budget.
"We remain hopeful that we will have the sales tax," Klein said. If the state can no longer make internal loans and bank loans aren't already set up, Martin said the state will have to consider issuing IOUs and making late payments on the debts that it owes.
California last month started issuing $1.95 billion worth of IOUs to state vendors and taxpayers owed refunds while the legislature worked to plug a $24 billion budget deficit. Officials said last week that they could stop the practice because California's revised budget would allow the state to get short-term loans to pay daily expenses. Brewer's office said Arizona IOUs are a possibility, but such discussions are premature because the state must first consider other options, such as borrowing from banks.
The state's cash flow problems prompted some legislators to complain about the state spending $100 million more than it did at the same point last year.
"Every day this state is in danger of actually starting to bounce checks," Sen. Thayer Verschoor, a Gilbert Republican, told his colleagues Tuesday.
Despite efforts to cut state spending, the state has incurred more expenses this fiscal year because more people are on the state's Medicaid program, the state's prison population has risen, and the number of students at schools continues to grow, Senseman said. Meanwhile, the state has less tax revenue than in the past.
Brewer's answer is the sales tax increase.
Senate President Bob Burns, a Republican from Peoria, said he doesn't know how to get enough votes to refer the sales tax hike to voters. The referendum fell two votes short of passage in the Senate.
"I don't see how we get that," Burns said. "We have tried numerous ways to put together a bill that had the referral on it, and we have been unsuccessful in doing that."
Arizona Treasurer Dean Martin said Wednesday that the state must enact a new state budget by the end of the week or it will lose the flexibility to borrow money from banks to continue paying its bills.
The state was $386 million in the red as of Wednesday and has been making up for it by borrowing money from some of the 1,800 state government funds. But Martin said the state will lose its flexibility to make internal loans when the figure hits the $500 million mark. Then it will need to borrow money from banks, but they're not willing to lend to the state until its budget is balanced.
Although Arizona isn't projected to reach its internal-loan limit until Oct. 15, Martin said the budget must get enacted this week to give the state the six to eight weeks needed to set up bank loans.
"It's like living paycheck to paycheck with your credit cards also being maxed out. That's basically where the state is right now," said Martin, a Republican.
The GOP-led Legislature has approved a budget-balancing package but hasn't yet sent it to Gov. Jan Brewer. The package doesn't include Brewer's proposal to ask voters to approve a sales tax increase, and the Republican vetoed key parts of a similar budget package last month because the tax proposal was missing.
Legislative leaders declined to specify when they would send the package to the governor, and the governor's office has declined to say whether she would sign it.
Brewer spokesman Paul Senseman said the state isn't in danger of running out of money to pay its bills, but the cash flow predicament could become more of a problem later.
Eileen Klein, Brewer's budget director, said it's not a certainty that the state would have to take out loans to improve its cash flow. The state could avoid such borrowing through the use of federal stimulus money and the enactment of a state budget.
"We remain hopeful that we will have the sales tax," Klein said. If the state can no longer make internal loans and bank loans aren't already set up, Martin said the state will have to consider issuing IOUs and making late payments on the debts that it owes.
California last month started issuing $1.95 billion worth of IOUs to state vendors and taxpayers owed refunds while the legislature worked to plug a $24 billion budget deficit. Officials said last week that they could stop the practice because California's revised budget would allow the state to get short-term loans to pay daily expenses. Brewer's office said Arizona IOUs are a possibility, but such discussions are premature because the state must first consider other options, such as borrowing from banks.
The state's cash flow problems prompted some legislators to complain about the state spending $100 million more than it did at the same point last year.
"Every day this state is in danger of actually starting to bounce checks," Sen. Thayer Verschoor, a Gilbert Republican, told his colleagues Tuesday.
Despite efforts to cut state spending, the state has incurred more expenses this fiscal year because more people are on the state's Medicaid program, the state's prison population has risen, and the number of students at schools continues to grow, Senseman said. Meanwhile, the state has less tax revenue than in the past.
Brewer's answer is the sales tax increase.
Senate President Bob Burns, a Republican from Peoria, said he doesn't know how to get enough votes to refer the sales tax hike to voters. The referendum fell two votes short of passage in the Senate.
"I don't see how we get that," Burns said. "We have tried numerous ways to put together a bill that had the referral on it, and we have been unsuccessful in doing that."
Monday, August 17, 2009
East Valley Tribune: State could run out of money by mid-October
By Howard Fischer
Capitol Media Services
Arizona is on track to running out of money to pay its bills and its employees in the middle of October — if not sooner — if lawmakers don’t adopt a new budget plan quickly, state Treasurer Dean Martin said Monday.
Martin said by Tuesday the state’s books would already be in the red to the tune of about $360 million. The only thing that’s keeping Arizona afloat is about $500 million in accounts that belong to specific state agencies, money that is being loaned, with interest, to the general fund.
But Martin said the state is spending at the same rate it did last year despite the fact that tax collections are even less than last budget year. So that line of credit — Martin compares it to a credit card — will be "maxed out" in October.
That, however, doesn’t mean Arizona has until then to adopt a balance budget.
Martin said that, no matter what happens, the state is going to need to borrow money, even on a short-term basis, to pay its bills.
He said, though, it takes six to eight weeks to set up such a line of credit. And Martin said banks have told him they won’t even consider extending credit until the state has a balanced budget.
That, he said, makes this week or next the drop-dead deadline for lawmakers to approve a spending plan. Martin said if there is no action soon, Arizona "will be in exactly the same position that California was, sending out IOUs or not paying people or doing emergency furloughs."
"We’ve already informed the governor’s office last week that they need to start creating a list of who gets paid and who doesn’t get paid," he said. "Physically, there will be no money to cover those checks."
That presumes things don’t get worse before the line of credit is in place: He said the money available internally to loan the general fund could run out as early as next month.
"If that’s the case, we’re already screwed," he said.
But Martin’s predictions of financial meltdown, echoed by Senate President Bob Burns, R-Peoria, did not convince Gov. Jan Brewer to back off her demand that any budget must include putting a measure on the ballot asking voters for a temporary hike in state sales tax.
"The governor has made it very clear to the legislators for many weeks now that if they were not to send a budget that was acceptable to her that a financial crisis of order and magnitude the state has never seen would ensue," said gubernatorial press aide Paul Senseman. He said any problems that result are the fault of legislative leaders, not the governor.
Senseman said Brewer "remains committed to securing additional revenues to protect those three core areas of education, public safety and health." A one penny surcharge in the state’s 5.6 percent sales tax rate could generate an extra $80 million a month.
Burns said Monday, though, there are not the votes to fulfill the governor’s demand for a sales tax referral. So he intends to send her the budget, perhaps today, that Republican lawmakers have adopted, one that cuts spending sharply and uses other fiscal maneuvers, including borrowing, to deal with the fact that tax collections are far below where they were last year.
Burns said if Brewer agrees to sign the budget, he will commit to continuing to try to find additional revenues. But Senseman said Brewer has a different idea of how this should play out.
"The Legislature could adopt her entire package and send it to her with what she’s proposed," he said.
Complicating matters, Burns also plans to send Brewer another measure permanently repealing the state property tax even though that actually would make the state’s financial situation $250 million worse. The Senate already has approved that repeal, with the House Appropriations Committee voting to follow suit.
That tax has not been collected for the last three years, the result of a 2006 budget deal between the Republican-controlled Legislature and Democratic Gov. Janet Napolitano. It returns automatically this year absent legislative action.
"That’s a tax increase right out of the chute on homeowners and businesses who are struggling," he said. "In my opinion, that is a problem to put a $250 million tax increase on a struggling economy at this time."
Senseman said, though, Brewer agreed to forego the revenues from the property tax only in exchange for the sales tax referral.
The stalemate on the budget also means lawmakers didn’t repeal the property tax before supervisors in the state’s 15 counties had to set the tax rates Monday for this fiscal year. So, as of now, Arizonans are set to pay an additional 33 cents per $100 of assessed valuation on the tax bills that are due Oct. 1.
For the owner of a $200,000 home that adds about $66 a year. Businesses, which are valued for tax purposes on a different basis, face a higher burden: A $500,000 business would pay an extra $364 a year.
Burns and House Speaker Kirk Adams, R-Mesa, are asking county treasurers to delay printing and mailing out the tax bills while they make a last attempt to either reach a budget compromise or convince Brewer to sign the property tax repeal.
Assistant Senate Minority Leader Rebecca Rios, D-Apache Junction, said Monday there is another way to reach a deal: Negotiate with the Democrats who control 12 votes in the 30-member chamber.
"We believe that we can get a compromise budget done with Republicans in less than a week if we fully commit ourselves, which we’re committed to doing," she said in a floor speech, with Burns presiding. "And we would ask, would you commit yourselves to work for an entire week?"
At this point, though, Burns said he intends to push forward with that Republican-only budget.
In the House, meanwhile, Democrats tried to get the Appropriations Committee to adopt a plan to expand the list of items subject to state sales taxes but lower the overall tax rate. Rep. Matt Heinz, D-Tucson, said the change, which would not take effect until mid-2011, would provide Arizona a more stable source of tax revenues.
Republicans said they could not support such a major change in tax policy without more time to study it.
Capitol Media Services
Arizona is on track to running out of money to pay its bills and its employees in the middle of October — if not sooner — if lawmakers don’t adopt a new budget plan quickly, state Treasurer Dean Martin said Monday.
Martin said by Tuesday the state’s books would already be in the red to the tune of about $360 million. The only thing that’s keeping Arizona afloat is about $500 million in accounts that belong to specific state agencies, money that is being loaned, with interest, to the general fund.
But Martin said the state is spending at the same rate it did last year despite the fact that tax collections are even less than last budget year. So that line of credit — Martin compares it to a credit card — will be "maxed out" in October.
That, however, doesn’t mean Arizona has until then to adopt a balance budget.
Martin said that, no matter what happens, the state is going to need to borrow money, even on a short-term basis, to pay its bills.
He said, though, it takes six to eight weeks to set up such a line of credit. And Martin said banks have told him they won’t even consider extending credit until the state has a balanced budget.
That, he said, makes this week or next the drop-dead deadline for lawmakers to approve a spending plan. Martin said if there is no action soon, Arizona "will be in exactly the same position that California was, sending out IOUs or not paying people or doing emergency furloughs."
"We’ve already informed the governor’s office last week that they need to start creating a list of who gets paid and who doesn’t get paid," he said. "Physically, there will be no money to cover those checks."
That presumes things don’t get worse before the line of credit is in place: He said the money available internally to loan the general fund could run out as early as next month.
"If that’s the case, we’re already screwed," he said.
But Martin’s predictions of financial meltdown, echoed by Senate President Bob Burns, R-Peoria, did not convince Gov. Jan Brewer to back off her demand that any budget must include putting a measure on the ballot asking voters for a temporary hike in state sales tax.
"The governor has made it very clear to the legislators for many weeks now that if they were not to send a budget that was acceptable to her that a financial crisis of order and magnitude the state has never seen would ensue," said gubernatorial press aide Paul Senseman. He said any problems that result are the fault of legislative leaders, not the governor.
Senseman said Brewer "remains committed to securing additional revenues to protect those three core areas of education, public safety and health." A one penny surcharge in the state’s 5.6 percent sales tax rate could generate an extra $80 million a month.
Burns said Monday, though, there are not the votes to fulfill the governor’s demand for a sales tax referral. So he intends to send her the budget, perhaps today, that Republican lawmakers have adopted, one that cuts spending sharply and uses other fiscal maneuvers, including borrowing, to deal with the fact that tax collections are far below where they were last year.
Burns said if Brewer agrees to sign the budget, he will commit to continuing to try to find additional revenues. But Senseman said Brewer has a different idea of how this should play out.
"The Legislature could adopt her entire package and send it to her with what she’s proposed," he said.
Complicating matters, Burns also plans to send Brewer another measure permanently repealing the state property tax even though that actually would make the state’s financial situation $250 million worse. The Senate already has approved that repeal, with the House Appropriations Committee voting to follow suit.
That tax has not been collected for the last three years, the result of a 2006 budget deal between the Republican-controlled Legislature and Democratic Gov. Janet Napolitano. It returns automatically this year absent legislative action.
"That’s a tax increase right out of the chute on homeowners and businesses who are struggling," he said. "In my opinion, that is a problem to put a $250 million tax increase on a struggling economy at this time."
Senseman said, though, Brewer agreed to forego the revenues from the property tax only in exchange for the sales tax referral.
The stalemate on the budget also means lawmakers didn’t repeal the property tax before supervisors in the state’s 15 counties had to set the tax rates Monday for this fiscal year. So, as of now, Arizonans are set to pay an additional 33 cents per $100 of assessed valuation on the tax bills that are due Oct. 1.
For the owner of a $200,000 home that adds about $66 a year. Businesses, which are valued for tax purposes on a different basis, face a higher burden: A $500,000 business would pay an extra $364 a year.
Burns and House Speaker Kirk Adams, R-Mesa, are asking county treasurers to delay printing and mailing out the tax bills while they make a last attempt to either reach a budget compromise or convince Brewer to sign the property tax repeal.
Assistant Senate Minority Leader Rebecca Rios, D-Apache Junction, said Monday there is another way to reach a deal: Negotiate with the Democrats who control 12 votes in the 30-member chamber.
"We believe that we can get a compromise budget done with Republicans in less than a week if we fully commit ourselves, which we’re committed to doing," she said in a floor speech, with Burns presiding. "And we would ask, would you commit yourselves to work for an entire week?"
At this point, though, Burns said he intends to push forward with that Republican-only budget.
In the House, meanwhile, Democrats tried to get the Appropriations Committee to adopt a plan to expand the list of items subject to state sales taxes but lower the overall tax rate. Rep. Matt Heinz, D-Tucson, said the change, which would not take effect until mid-2011, would provide Arizona a more stable source of tax revenues.
Republicans said they could not support such a major change in tax policy without more time to study it.
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