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Friday, September 17, 2010

Jan Brewer, Terry Goddard spar on Arizona budget deficit

by Casey Newton - Sept. 17, 2010 12:00 AM
The Arizona Republic
Sept. 17, 2010 12:00 AM

The gubernatorial candidates' economic views diverged sharply Thursday in a meeting with The Arizona Republic Editorial Board, with Jan Brewer pledging no new taxes and Terry Goddard saying the state has to consider some.

Brewer, the Republican governor, sparred with Goddard, the Democratic attorney general, and Libertarian candidate Barry Hess. Each claimed to have the best plan to balance the budget and rescue Arizona from its deep recession.


They made their case with the state facing a budget deficit estimated at $1.7 billion for this year and next and with less than a month before the start of early voting Oct. 7.

Brewer, who supported the 1-cent-per-dollar sales-tax increase earlier this year, said she has ruled out additional tax hikes.

That means steep cuts will be needed to close the budget deficit. Brewer said education, the Department of Health Services and the Department of Economic Security all are likely to see significant reductions next year.

"I think it's obvious we're going to have to go in and make some very hard, tough decisions," said Brewer, who polls suggest has a commanding lead over her opponents. "They're probably going to be even tougher going forward."

Any new cuts would come on top of $2.2 billion in spending reductions made since Brewer became governor in January 2009. The state has cut health care for needy families, shuttered some state parks and motor-vehicles branches and laid off hundreds of workers.

Brewer said that next year, the state again will consider transferring responsibility for juvenile offenders to the counties. She also touted her creation of a council of business leaders as a key step in attracting more investment to Arizona.

Goddard said some tax increases would be necessary to close the budget deficit, eliminating sales-tax exemptions for items like golf carts and country-club memberships. He also would consider rolling back income-tax cuts made under Gov. Fife Symington, which he said have not created any new jobs for Arizonans.

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