I haven’t found a lot of time (or material) to blog about lately. But I haven’t seen any coverage of a new policy report from the Goldwater Institute on resolving the state’s predicted $1.2 billion budget deficit from a libertarian perspective. That means no tax or government fee increases and no additional debt; just whacking away at state government funding, which has grown by an estimated 67 percent since 2004.

Goldwater takes a “no sacred cows” approach, relying heavily on various budget reduction proposals in the past six years offered by legislative budget staff but never approved by the full Legislature. The report also takes into account that the state’s fiscal year is about six months over, so nearly half of the $10 billion General Fund budget already has been spent. Some highlights include:

• $210 million, or a 15 percent cut, for the Arizona Health Cost Containment System (the state Medicaid insurance program). Goldwater suggests that lawmakers let the agency figure out where to find the savings, but does offer some ideas including raising insurance premiums, double-checking the eligibility of applicants and shrinking overhead. Goldwater also urges elimination of any benefit not required for federal matching funds, which could save more money.
• $100 million by eliminating full-day kindergarten and going back to state-funded half-day kindergarten. This would become a yearly savings of $200 million.
• $100 million, or a 10 percent cut, to the state’s three public universities.
• $95 million, or a 10 percent cut, to the state prison system. Goldwater wants lawmakers to make addition nonviolent offenders eligible for early parole and home monitoring. Maricopa County Andrew Thomas might have a particular objection to this, as he has argued the state should be sending more criminals to prison, not less.
• Another $69.5 million in state aid to school districts and other K-12 education programs.
• $61 million, or a 10 percent cut, to the Department of Health Services. Goldwater acknowledges this would force the state to reduce vaccinations and immunization information, disease surveillance and research, and poison control assistance.
• Save about $36 million by eliminating the arts commission, the Department of Commerce and the state tourism office. Goldwater has previously urged the Legislature to abolish these agencies and transfer any critically needed programs elsewhere.

In its conclusion, the Goldwater Institute admits its comprehensive list still would leave a $140 million deficit this year. It also doesn’t address what happens with the next budget that starts July 1. Across-the-board cuts of 10 percent are practically inevitable, and I think full-day kindergarten seriously faces elimination with the make-up of the next Legislature and Janet Napolitano no longer in the governor’s office. But the real value of Goldwater’s report is to illustrate the true depth of the fiscal crisis and how difficult it will be for the Legislature to fix.

You can read the full report if you click on the picture of the front page at the top of this post.