The Official Website of the Republican Caucus

President Burns and Speaker Adams were the first guests on Channel 3’s new show Politics Unplugged, which airs Sundays at 5:30 p.m.

Click here to watch their segment on the budget.

President Bob Burns contributed a column to this past Sunday’s Viewpoints in the Arizona Republic. Read about his focus for this legislative session:

Arizona state government is in critical condition. The fundamentals upon which our economy relies is on life support. Nearly 300,000 Arizonans lost their jobs in the past two years, representing 10.7 percent of the workforce.

Our major industries and employers are suffering severe impacts from the downturn. The immediate need right now is to stop the bleeding and stabilize the patient.

The economy is failing to produce revenue at levels it had in previous years. Our spending authorization is now just below $10 billion. Yet revenue is only at $6.4 billion. Simply put, what’s coming in isn’t enough to cover what we planned for agencies to spend. We need to revise the plan.

In our latest special session, we reduced spending by more than $190 million, but we still have a $1.4 billion cash deficit in this fiscal year. Wishing it were different won’t change the reality that previous decisions and a failing economy have left us few viable options.

The most promising solution to this dire situation is for the Legislature to reset current authorized-spending levels, which become meaningless if the money is not there to support them.

It is also important to consult with Arizona’s voters. We need their advice – through ballot measures – to tell us their priorities on taxation and spending and their willingness to provide the Legislature with the flexibility we need to solve this problem.

There is a lot of work to be done in a number of policy areas that would improve Arizona’s vitality, including a concerted effort to remove obstacles to job growth and economic development.

However, we must not lose focus on the immediate crisis. The emergency room is not the right time or place to lecture the patient on the value of proper diet and exercise.

Be sure to check out today’s editorial in the East Valley Tribune about balancing immediate and long-term solutions to Arizona’s economic and budget crisis. 

Plan good for state, but it’s not budget fix

East Valley Tribune
January 8, 2010

Different economic development plans unveiled Tuesday by House Speaker Kirk Adams, R-Mesa, and Gov. Jan Brewer focus correctly on the fundamentals of Arizona’s future — enticing the free market to re-engage by reducing tax burdens and removing unreasonable government barriers.

As the Tribune’s Ed Gately reported Wednesday, Adams announced a package of measures designed to stop the loss of employment from the recession that started in December 2007. The proposals include adding income tax rebates for businesses that create new jobs and restoring a job training program. Also on the list would be the adoption of a series of tax cuts affecting individual and corporate incomes and property taxes that would be phased in, starting in 2012.

Meanwhile, Brewer is emphasizing a ramp-up in energy development that would include solar, wind and nuclear power, Capitol Media Services reported. The governor’s goal is to eliminate bureaucratic red tape and to leverage tax credits for start-up operations.

It’s a relief that these state leaders have no interest in following the 2009 federal model of throwing a huge amount of cash in every direction – money that had to be borrowed or printed because it wasn’t available – while attaching huge strings of regulation that stifle creativity and efficiency.

The two packages do have an occasional flaw, such as Adams’ proposed Deal-Closing Fund, which essentially would be a slush fund for a governor to offer cash incentives for a handful of businesses that might move into the state.

Until now, Arizona has largely avoided the “incentive wars” of other states that offer ridiculous amounts of money to a high-profile business that delivers only modest benefits for the local economy. The Legislature should stick with policies that make doing business in Arizona appealing to a diverse set of industries, rather than funneling tax dollars to a favored few. Most of the other proposals from Brewer and Adams would do just that.

One final note of caution. The governor and the Legislature can’t delude themselves into thinking a sound strategy for economic freedom will provide relief from the state’s enormous budget deficits for the next two years. As Senate President Bob Burns, R-Peoria, explained to Capitol Media Services: “You’ve got to stop the bleeding of the state right now.”

Good leaders can act simultaneously on immediate solutions as well as long-term, permanent improvements. But lawmakers must not mistake one for the other as they go to work next week.