1office of governor janice k. brewer1 the state budget fy 2010 and fy 2011
TRANSCRIPT
1Office of Governor Janice K. Brewer 1
The State Budget
FY 2010 and FY 2011
2Office of Governor Janice K. Brewer 2
What’s the Problem? -Structural Deficit
General Fund Ongoing Revenue and Expenditures before Solutions
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
14,000
FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010Est.
FY 2011Est.
FY 2012Est.
FY 2013Est.
FY 2014Est.
$ in
mill
ion
s
Expenditures with ARRA & Rollover GF Expenditures GF Revenue
Assumptions: Revenue: Ongoing revenue does not include one time items such as fund transfer, asset sales, etc. Growth rates assumptions: FY10: -9.2%, FY11:7%, FY12 and 7%. Expenditure: Ongoing expenditure does not include rollover or ARRA. FY10 and FY11 estimated Expenditure from most current S&U, FY12 and beyond assuming 7% growth.
3Office of Governor Janice K. Brewer 3
Growing Populations – Including FY 2011 EstimatesCurrent revenues = FY 2004 Since FY 2004, Arizona has added 121,500 K-12 students and more than $1.0 billion in
annual costs to the K-12 system.
Since FY 2004, enrollment in State universities has increased enrollment by 18,100 students and annual General Fund costs of $393.5 million.
Since FY 2004, Corrections has added 10,800 prisoners and annual General Fund costs of $405.4 million.
Since FY 2004, AHCCCS has added 475,000 new members and annual costs of nearly $1.5 billion (General Fund). -- In calendar 2009, AHCCCS has grown by 203,000 members --
How did we get here?
4Office of Governor Janice K. Brewer 4
FY 2011 State Budget – Protected Elements
Approximately $3.2 billion unprotected
FY 2011 Federally Protected Expenditures
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
AHCCCS Community
Colleges
Corrections Economic
Security
Education Health Services Universities Debt Service All Other
Agencies
Unprotected
Protected
5Office of Governor Janice K. Brewer 5
The Budget Solution
FY 2010 - FY 2011 Budget Solutions
30%
26%
13%
31%
Budget Reductions
New Revenues
Fund Transfers
Additional Debt
6Office of Governor Janice K. Brewer 6
The Budget – Revenue
Revenue Enhancements
Represents a 14.2 percent increase in FY 2011 base revenues
Item FY 2010 FY 2011Lower Estimated Payment Threshold $48,000.0 - 1-Cent Sales Tax - $918,000.0Abandoned Vehicle Fees - $12,061.2First Things First Redirect - $60,000.0Tax Adminsitration and Staff - $18,539.9Maricopa/Pima County Contributions - $34,600.0
Total $48,000.0 $1,043,201.1
7
The Budget - Debt
FY 2010Additional Rollovers $450 millionAdditional Sell/Leaseback $300 millionLottery Bonds $450 million Total FY 2010 new debt: $1.5 Billion Total FY 2010 Rollover: $1.3 billion
FY 2011Refinance SFB Debt $60 million
8Office of Governor Janice K. Brewer 8
The Budget
Major Budget ReductionsSavings
Impact Medicaid Reform $380 MM 310,500 Mental Health Reform $ 36 MM 14,400 Welfare Reform $ 27 MM 10,000 Childcare Limits $ 22 MM 10,000 KidsCare $ 18 MM 46,000 Education (FY 06 Levels) $422 MM Employee Salary Reduction $ 45 MM Increase Prison Bed Deficit $ 25 MM
9Office of Governor Janice K. Brewer 9
The Budget - Outcome
General Fund Ongoing Revenue and Expenditures Adopted Budget
5,000
6,000
7,000
8,000
9,000
10,000
11,000
FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 Est. FY 2011 Est. FY 2012 Est. FY 2013 Est.
General Fund Ongoing Revenue and Expenditures Adopted Budget
5,000
6,000
7,000
8,000
9,000
10,000
11,000
FY2002
FY2003
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010Est.
FY2011Est.
FY2012Est.
FY2013Est.
Revenue with Solutions Expenditures with Solutions
Expenditures with ARRA and Rollover with health care
10
Conditional Budget
• K-12 Education $428 million• Higher Education $120 million• Public Safety $100 million• Health Care $175 million• Human Services $25 million