Jason Jones, correspondent for the Comedy Central's "The Daily Show," taped a piece Tuesday about language in the proposed budget that would allow the state to sell off -- and presumably lease back -- some of its buildings, including the House and Senate chambers. But the original Capitol, which dates from territorial days, is not on that list because it legally cannot be sold (Capitol Media Services photo by Howard Fischer).

With the state Senate unable to find the mythical 16th vote Tuesday to finally pass a balanced state budget (and the search continues today), Capitol insiders were all-twitter about Jon Stewart’s “The Daily Show” coming back to town to poke more fun at the state Legislature. Correspondent Jason Jones already has spent some time in the Valley of the Sun this year. Democrats flocked to find out what Jones was up to this time, while rumors say Republicans uniformly avoided his microphone.

But what Capitol insiders should have been talking about is some horrible projections from legislative budget staff. Democratic lawmakers requested a multi-year analysis of the latest budget plan as passed by the House, and started whispering about the results Monday (although the document was officially released to the public today).

Interestingly, the numbers suggest the budget proposal would be balanced for this fiscal year without the temporary higher sales tax proposed by Gov. Jan Brewer. But what has to be disheartening to lawmakers is with the sales tax, the state budget faces a $890 million shortfall next year and a $2.7 billion shortfall two years later.

These calculations include the federal stimulus money and a temporary upper-limit on General Fund spending at $10.2 billion. They also include a permanent repeal of $250 million in state property taxes, but not the proposed additional income tax cuts that are supposed to start in 2012.

What does this mean? Without a dramatic rebound in the economy, the Legislature will be over a barrel, no matter what happens with the sales tax proposal. Some insiders have told me lawmakers should be looking at cutting General Fund spending in half in order to get the deficit problem under control. How could education and public safety possibly avoid additional huge cuts under that scenario?

Posted in: Arizona Legislature • Arizona government • Governor • Arizona sales tax • Comedy Central • Jan Brewer • Joint Legislative Budget Committee • The Daily Show |

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