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State Has Choices For Fixing Deficit

POSTED: 9:19 pm MST April 10, 2009
UPDATED: 12:48 pm MST April 11, 2009

Arizona lawmakers are debating the possible solutions to a $3 billion budget deficit that the state is facing.

One option is making budget cuts to services and programs. Another option is raising taxes to generate revenue. A third option is borrowing money.

State Rep. Chad Campbell, a Democrat, believes the best choice is a combination of all three.

“I think the best option at the end of the day is going to be a mixture of all of those solutions,” Campbell said. “Right now, I think the only way we can get out of this hole is a comprehensive solution.”

Campbell and other House Democrats have produced a budget plan that they believe is the best way to address the situation.

“We have to protect education. We have to protect health care. And we’re not doing that with the current tax system we have in place and the current budget we have in place,” Campbell said.

Republicans, however, control both houses of the Legislature. Their leadership believes that the focus should be on making cuts to the budget.

They have also, however, warmed to the idea of the state borrowing money, something they have avoided in the past.

“We don’t like to borrow. We don’t think that’s a good idea,” said Sen. Pamela Gorman, a Republican and the Majority Whip. “But right now, we’re looking at what’s a bad idea and what’s a really bad idea.”

The “really bad idea,” Gorman believes, would be a tax increase. Republican leadership in the Legislature is against a tax hike.

Gov. Jan Brewer, though, has introduced a five-point plan that calls for a temporary tax increase that she believes would generate $1 billion.

A spokesman for the Republican governor told CBS 5 News on Friday that the governor was reluctant to borrow money as a way to reduce the deficit. She supports the tax increase as a better option.

While Gov. Brewer’s spokesman would not say she would veto any budget proposal that excluded a tax increase, he did say she would “not accept a budget that’s unsustainable.”

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