Tom Jenny, the director of the Arizona chapter of Americans for Prosperity (AFP), today applauded the announcement of a plan by Republican leaders of the Arizona Legislature to cover the state's $3.3 billion FY 2010 deficit without raising taxes. Senate President Bob Burns (R-Peoria) and House Speaker Kirk Adams (R-Mesa) outlined the plan yesterday at a meeting of the Greater Phoenix Economic Council (GPEC).
Burns and Adams suggested $840 million in new spending reductions, $500 million in continuing reductions from FY 2009, $1.3 billion in federal stimulus funding, $390 million in fund transfers from non-general fund balances, and non-tax revenue of $300 million. The plan may involve some short-term borrowing.
Jenny said "We're not enthused about the debt financing elements, but it's better than raising taxes during a recession."
The Burns-Adams plan stands in contrast to Gov. Jan Brewer's proposal to raise taxes by a billion dollars a year for three years, which would amount to over $300 per Arizona household per year according to AFP AZ..
Recently released economic projections by the Goldwater Institute and the Beacon Hill Institute suggest that a billion-dollar sales tax increase would cost Arizona 14,400 private-sector jobs and a billion-dollar income tax increase would cost 26,000.
AFP AZ announced that Senate President Burns and Speaker Adams are welcomed to speak at the Taxpayer Tea party at the Capitol on April 15. "We welcome participation by all public officials who have not proposed a tax increase this year," Jenny said. Congressman John Shadegg and a number of state legislators are scheduled to speak at the event, which begins at 5:30 PM on the Senate Lawn. Over 2,000 have registered online for the event.