My last post on Saturday was about how two key elements of the state budget deal between the governor and legislative leaders had stalled — the proposed statewide election on temporary sales tax increase and switching the graduated income tax to a flat rate starting in 2012. But that doesn’t mean those proposals, or the entire budget deal, are dead. Far from it.
With just one day to go before the end of the fiscal year, all eyes are on the state Senate this morning as the Appropriations Committee is scheduled to take up most of the proposed deal. But the tax elements are slated to be heard in the Senate Committee on Education Accountability and Reform. That’s because Senate Appropriations Chairman Russell Pearce, R-Mesa, refuses to consider a sales tax increase in any form, but education committee Chairman John Huppenthal, R-Chandler, has championed the flat-rate income tax proposal.
If the two Senate committees actually approve the entire budget deal, and there’s hope the full Senate will do the same, then the House Appropriations Committee can take up the tax bills this afternoon and the full House also could act on the budget sometime (late?) tonight.
If that doesn’t happen, it likely legislative leaders will try on Tuesday to push through a temporary plan to continue this fiscal year’s budget for a few weeks to avoid an immediate government shutdown. I’m not at the Capitol today, but I’ll try to keep an eye on committee hearings and any floor action through the Legislature’s popular live Web streaming.
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