Gov. Brewer vetoed the $250 million property tax repeal along with certain cuts to education and social services using line-item vetoes. She signed the rest of the remaining bills that were sent to her late last month.
The property tax repeal was THE major bill for Republicans this session. It was also a key sticking point in negotiations with the Democrats who wanted the full tax to come back. The Governor made it clear she wanted to opportunity to ask voters for more revenue in exchange for giving up the property tax revenue so it's no big surprise that she vetoed that portion.
I would assume the plan is to offer the carrot for renewed talks on a sales tax election in exchange for repealing the property tax.
Brewer made it clear that her intention is to focus on running the state. Taking $250 million off the table with no other revenue in sight doesn't accomplish that goal so we will have to sit back and see what happens now.
UPDATE: Statement by Governor
Today I have approved a number of budget bills that will allow state government to continue important operations -- and I have vetoed legislation that needs additional work and compromise.
Just as I said last March – I will NOT give up on the future of our State. I will NOT give up on education, I will NOT give up on the fight for our most vulnerable citizens -- and I will NOT allow the state we all love to fall into the abyss of bankruptcy.
The voters of Arizona don’t want me to give up, and I WILL NOT give up on them.
Right now, Arizona faces a roughly $4 billion deficit. We are spending roughly $11 billion, and we are bringing in roughly $7 billion.
So what can we all do – in addition to my actions today -- to solve this historic problem?
This fall and in the next regular session of the Legislature, legislative leaders and I must work to break the stranglehold that a handful of Republican and Democratic EXTREMISTS have on the Arizona legislature.
We cannot cut our way out of this problem. We cannot tax our way out of this problem. BOTH solutions will be necessary to resolve this crisis, and doing both will take incredible political courage and compromise.
This is a NOT a political game. It is gravely serious. It is a time to set aside political agendas, or personal campaign agendas, and -- for once -- place our State ahead of the tired and uncivil politics of the most extreme in both Parties.
46 Republicans, all but an extreme few, have now courageously trusted the voters on the issue of a temporary one-cent sales tax.
I have always trusted the voters during my 27 years as an elected official, and 46 Republicans have demonstrated – SO DO THEY!
Whether it is now -- or whether it is in the next several weeks -- the handful of extremists on the fringes of the Legislature will see the deeper and more painful cuts that will be necessary because of their delays on resolving the state deficit. Every month that goes by only makes the deficit and the pain more severe.
My actions today -- and the clean-up bill I have proposed -- will allow our State to weather the storm at least until the next regular session of the Legislature.
Until then, the voters of this State can be confident that we will continue to prioritize education, public safety, and protect our state’s most vulnerable.
Let me reiterate once more: I am NOT giving up, I am NOT surrendering, I am NOT abandoning what the people of Arizona want me to do. I am doing what is right, and I believe they know that.
I would be happy to answer a few questions…