Florence Prison-privatization; budget solution (Photo AP/Matt York)
Failure to balance the budget last week will now cost taxpayers an additional $3 million by June. The $3 billion deficit led to Arizona’s historical $700 million first private loan from Bank of America. Just over a week ago the state senate had an opportunity to narrow the deficit gap missing by one vote. Many blame Senator Thayer Verschoor of Gilbert for not showing, regardless the hole they’re digging gets deeper with each passing day.
How did we get here? Who’s in charge anyway? Not long ago an attorney representing the city of Phoenix was charging the taxpayers $520 per hour to defend the city’s right to give away $97.5 million to a developer to build a mall at 56th street and the Loop 101. At least an attorney from the Goldwater Institute was on the other side at the hearing actually representing the people. The Constitution bans gifts of taxpayer money, even to shopping center developers. No wonder only 10-15% of the people believe representatives represent them!
Identifying the problem was House Appropriations Committee John Kavanagh, Rep. Fountain hills said, “The hole is getting deeper…I think we’re going to have to cut government big-time.” He suggested calling a special election asking voters to waive the funding safeguards for special programs like health care, K-12 schools, and early childhood education set forth in the 1998 Voter Protection Act.
The private sector has borne the brunt of the unemployment scene but the domino effect is now trickling down all levels of government with deficits. States and cities (except for Prescott Valley) drowning in red ink are being forced to make cuts in: fire, police, community services, park and recreation and schools.
This summer the state made an attempt to turn prisons like Florence over to private companies in exchange for $100 million upfront payment but the plan never got off the ground. Instead the State is being sued by the municipalities for “coddling of illegal aliens” at the state’s expense.
What are cities in the valley doing to recoup funds? Some are cutting the SWAT teams in favor of turning things over to the County because they’ll save money.
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