Friday, January 16, 2009

Beg, borrow, steal, balance

Outgoing Governor Napolitano released her budget plan today and consistent with past practices, it's full of borrowing, fund sweeps and other gimmicks meant to minimize cuts to programs.

The 2010 deficit is estimated to be $2.65 Billion which is over 25% of this years $10 Billion general fund.  

Cuts for 2009 totaled $1.3 Billion but most of that is on the gimmick side including $400 million by securitizing tobacco settlements (basically borrowing against the money), $216 million using a rollover (the money still comes due, just not until next year), $100 million from a federal stimulus package that doesn't exist yet and $50 million from photo radar.  So after all is said and done, only $300 million will come from agency cuts with the rest coming from moving around numbers, wiping out the rainy day fun, and a little Obama Hope that the feds will bail us out.

The next few weeks will tell us how the Republican led majority will react as they are not required to follow her suggestions.

1 comment:

Thane Eichenauer said...

One wonders what might happen if the tobacco companies choose to stop paying under the settlement.