Budget and Economy
It's no secret that our state's budget is in serious trouble. And our economy is fragile at best.
The state of Arizona has a lot going for it. We have beautiful weather, affordable housing, world-famous tourist attractions and a quality of life that is the envy of many. Is it too much to ask that we also have a balanced state budget?
If you look at the numbers, it's no surprise that our budget is floundering. Simply put, we spend way more than we take in. According to Dr. Byron Schlomach, an economist and the director of the Center for Economic Prosperity at the Goldwater Institute, as of March of this year Arizona is spending $700 million more each month than it is collecting in tax revenue. Because of this financial mismanagement, we are facing a whopping $2.5 billion deficit in 2011. And that’s taking into account the $1 billion in cuts that our legislation has already enacted!
Clearly, we have to do something to get our state back on track financially. The status quo is not working. We need change, and we need it now.
As a Republican, and a proud member of the Tea Party, I believe strongly that the way to a competitive economy is through lowering our taxes. By reducing the amount of taxes we pay, it will help attract and maintain a vibrant business community. History has shown us that the government does not make jobs, the private sector does. To get these new jobs to our state, we must do all we can to encourage businesses to open here. Aggressive corporate tax cuts is a historically effective way to do just that.
As a true conservative, I am also very strongly opposed to any new taxes. For example, the 1 cent sales tax (Proposition 100) that was passed in May only adds to the dependency of tax increases and subordinates the discipline to reduce waste in government. While you might think “oh, one cent isn’t that bad, is it?” once you begin to crunch the numbers and look at this proposition more closely, you can see how harmful it will be to our pocketbooks and the business community.
The reason the spending lobbies worked so hard to get Proposition 100 passed, is because they will get an extra $900 million a year of our hard-earned money. No, that's not a typo—$900 MILLION. Our state sales tax will go up by 18 percent. Again, this is not a typo. For the average family, they would pay an extra $400 a year for the next three years. That one cent suddenly seems like a lot more, doesn't it?
The problem with the pro-prop 100 people is that they used the classic Chicken Little “the sky is falling” approach to get the bill passed. They tied in Prop 100 to our schools, and how they need money. But the facts show—our K-12 schools actually have enough funds; the money is just not getting into the classrooms as it should.
To add insult to injury, last year the Goldwater Institute asked Beacon Hill Institute at Suffolk University to look into the economic impact if Arizona raised its sales tax. They predicted that our state will lose 14,000 private sector jobs if this were to happen.
I also support the concept of zero-based budgeting, which makes agencies justify their budgets each year and will work to redirect resources and funds from lower priority programs to programs of higher priority, improve efficiency and effectiveness, and reduce spending.
With a combination of lower taxes and zero-based budgeting, I believe our state can return to financial solvency and a balanced budget. I look forward to working hard to implement both ideas in the state legislature.
