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Updated: Napolitano says she'll veto bill that would repeal property taxNapolitano vetoes property tax repeal bill Property-tax bill is vetoed by Napolitano Business owners push for property-tax repeal

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Gov. Janet Napolitano must veto a fiscally foolish measure passed by the Legislature that would make permanent a property tax cut that's costing the state $250 million in revenues annually.

The majority of lawmakers voted for the cut as if they were oblivious to the fact that Arizona is struggling with a $1.6 billion budget deficit this year and a deficit expected to be at least $2 billion next year. There is no need to plop another $250 million in red ink on top of that.

The state equalization property tax was suspended for three years in a budget deal struck between lawmakers and Napolitano in 2006.

Supporters who want the suspension made permanent argue that cutting taxes will encourage growth.

The suspended tax clearly did not avert the current economic downturn. And whether it has mitigated the situation is unknown.

This is trickle-down economics and deeply debatable.

What's not debatable is that the lost revenue will drive the state more deeply into the red and thus make it more difficult to fund vital programs.

Sen. Tom O'Hallernan, R-Sedona, who opposed the tax cut, said the business groups opposing the tax are the same ones lobbying to improve education, pave more roads and keep the state from shifting health-care costs onto the private sector, according to a story by Capitol Media Services in Wednesday's Star.

"I guess they want a tax cut, and they want money to deal with these programs," he said.

Evidently they do. And no, they don't appear to have a solution for making up the $250 million revenue shortfall.

We believe that to permanently remove a stream of revenue at a time when the state is strapped and struggling to find money for education, transportation, health care and so much more is patently irresponsible.

Every indication so far suggests that Napolitano will veto the legislation. She has noted, for instance, that the tax won't return until late 2009 and thus needn't be dealt with now.

This veto is a must; to allow the tax cut to become permanent at this time would be politically indulgent and injudicious.