Saturday, August 8, 2009

Solomon Budget

The latest "11th hour" GOP budget strategy is to split the tax referral bill (part of the 10 bills which make up what is commonly called "the budget"). One piece would include the governor's demand for a 1% sales tax increase in addition to the GOP's proposal of a state budget cap for 3 years (TABOR with a few exceptions), and the repeal of voter-protected initiatives.

The other half would include the reduction of business taxes, the reduction of income tax, and the permanent repeal of the county equalization (property) tax. This half includes the GOP's main belief that to reduce a budget gap you must decrease revenue -- which will likely increase that very gap.

This intent of this latest change is to bring senator Carolyn Allen (R-Scottsdale) on board for the 16th vote for the 1% sales tax increase, and at the same time having senators Ron Gould (R-Lake Havasu City) and/or Pam Gorman (R-Anthem) sign on for the tax cuts.

The problem is that in order to do this in the senate, the bills must be changed and then passed in the same manner in the house. Many, many Republican house members signed "no-tax" pledges and would be in clear violation of that pledge if they pushed a tax increase to the ballot.

To understand how important this pledge is to Republican lawmakers, one only needs to ask Ahwatukee senator John Huppenthal. He suggests they each ask D.C. lobbyist Grover Norquist's on how they should vote.

Will an out-of-state lobbyist play the role of King Solomon in this state budget fiasco?

Will education be the baby?



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