Sun, Jul 05, 2009
David Bradley is a Tucson Democrat and represents District 28 in the state House.

Opinion

Guest Opinion

Cuts won't solve state budget crisis

Tucson, Arizona | Published: 02.28.2008
Opinion by David Bradley
Nearly two months into the legislative session we, the Legislature, have failed to act in regard to the most pressing problem of the day — our budget crisis. Estimates put this year's shortfall at more than $1 billion.
As time moves on, we are reduced to fewer options. Bonding for school construction now seems improbable and severe cuts, we are told, are the only alternative.
Blindly asserting that the whole problem is rooted in reckless overspending or that the solution rests in raising taxes across the board are equally impractical and shortsighted. We have a fundamental problem with the tax structure of the state and until we deal with that issue we will sentence future legislatures to a perpetual ride on the roller coaster of feast-or-famine tax revenues.
This is not new information and those who are knowledgeable about tax issues have been aware of this long before I came to the Legislature in 2003.
While the role of government will always be, rightfully so, a point of debate in the Legislature, it is self-evident that state government plays a crucial role in Arizona's economic stability and sustainability. It is imperative for the sake of our schools, our business climate and our social support programs that the state be a predictable and trusted partner.
To be such a partner requires that the state implement comprehensive tax reform immediately. We are far too dependent on sales taxes and we need to equalize our revenues among sales, property and income taxes so that our revenues have a level of consistency from year to year.
The tax code is complicated, made more so year in and year out with new tax credits, exemptions and deductions added every session. The effects of tax changes are often difficult to forecast. The tax code can be simplified and made more functional and predictable, but that requires a focused approach to tax reform.
In this session, I have submitted bills that deal with rescinding the previous income tax cuts, implementing a statewide property tax to pay for school construction and eliminating many tax credits, exemptions and deductions, as well as lowering the sales tax.
It is not likely that these bills will make it very far in the legislative process. We do not have the will to deal with this issue for fear of being accused of raising taxes and perhaps jeopardizing the likelihood of our re-elections.
We need to deal with the reality that there are and will be perpetual demands on government, particularly in a state that is growing as rapidly as this one. We need to balance that with the creation of tax policy that doesn't squelch productivity but also provides for the infrastructure that our growth and the challenges of our time demand.
The Legislature needs to be realistic about our situation. We must demand that government be effective, efficient and efficacious while recognizing that government is the partner of productivity in regard to keeping the citizens of the state safe, promoting and providing a diversely educated work force, and building and maintaining an infrastructure that promotes economic development.
Time is not on our side. Let's fix this now.
Write to David Bradley at dbradley@azleg.gov.