Arizona deposits $450 million into rainy day fund
Congratulations (again) to Arizona’s legislative majority and to Gov. Jan Brewer, for banking a deposit of $450 million in the state’s rainy day fund. That money may come in handy starting next summer, to cushion the fiscal shortfall when the temporary one-cent sales tax (the Prop 100 “Brewer Tax”) expires. In fact, that money may even come in handy if the spending interests pushing the Prop 204 ballot initiative are successful in making the sales tax hike permanent: if the courts uphold the QEJ’s nonsupplant clause, which in our view is an unconstitutional spending mandate, the state budget may soon be back in the red if revenue growth is slow, or especially if the economy tips back into recession.
Read the rainy day fund announcement from Arizona Treasurer Doug Ducey here.