Rep. Konopnicki's article was published this morning in the 'Arizona Republic'
CLICK HERE TO READ
This is NOT a balanced budget. The Governor is correct that the short fall will be $4 billion and the legislative budget is $900 million short for the $3 billion short fall the House/Senate budget projected. In effect, we do not cover the $3 billion we project as the short fall.
Most important point is that the Legislative budget has NO CASH FLOW. We have used all the money in games and rollover. July 15 the state has payments of $ 2 billion dollars (schools, ACCCS and Universities) and NO cash to make the payments. The state has already rolled over the payments to schools for two months so the payments have to be made. We will have to go to the market to borrow the funds.
It is important to note that Arizona banks received TARP funds so banks are NOT lending money in Arizona. The State has been informed that our credit rating will drop and that we will now be a high risk loan. That means we will be paying very high interest and will have a very difficult time getting a loan. It also means the State of Arizona will be now be competing for funds that businesses
and individuals may want to borrow in a very tight money market.
One example is the prison borrowing as proposed in the budget. The state would receive $450 million sometime this year and then will make monthly payments of $50 million a year for the next twenty years.
NOT A GOOD DEAL FOR ANYONE! No one would run their business or personal life in this manner. It is NOT a Republican way to use money!
Rural Hospitals lose a major portion of their funding and some may have to close.
ALL the community health centers will have to close.
The rural community colleges take two hits on the budget. EAC will be OK but NPC and Gila take hits that they will have a difficult time over coming.
The universities take a hit as this bill as written with the cuts, the double roll over, and the sweeps (which are illegal) moves them below the MOE requirement and will not quality for the federal stimulus money. A huge loss to the state.
We may not like the stimulus money, but we in Arizona will pay our share of the cost in federal taxes whether we use the money or not.
Both cities and counties have funds taken from them, and they will HAVE to increase taxes to recover (which are again, illegal).
Two of LD 5 counties take a double cut because they lose the prop 204 money (an agreement with the state several years ago) and have no way to make up the difference. Again, a tax increase is possible.
The budget also hurts INDIVIDUALS WITH DEVELOPMENTAL
DISABILITIES. It takes away vital services and leaves them without any help. Many may have to be placed in group homes at an even greater cost. It hurts seniors as well taking away wheel chairs and diapers, etc. and again many who are now able to live at home will have to be moved to nursing homes.
It is wasting precious time to pass a budget that a GOP governor will veto and going into debt (delaying payments, etc.) is not sound, conservative fiscal policy.
Those losses will shock the state when we make the cuts necessary to balance our budget without the stimulus. Hospital, community health centers, community colleges, cities and counties all take huge hits, BUT RURAL AREAS take even bigger hits.
Thanks for your help!
Bill Konopnicki
Bill Konopnicki is the State Representative for LD-5. Bill has been a successful small businessman for the past 30 years. He owns and operates: McDonald's restaurants with his oldest son, radio stations, and currently is CEO of WSK Management Systems. He is involved in community affairs and has worked with community groups, including the Boy Scouts, Ronald McDonald Houses and The Boys and Girls Clubs. He has also served as a member of the Mount Graham Regional Medical Center's Operating Board and is a past president.
