PHOENIX — Arizona’s budget battle is going down to the wire, with an intraparty struggle between the Republican governor and the GOP-led Legislature creating the possibility of a state government shutdown starting Wednesday.
Lawmakers are debating what mix of spending cuts and other measures, such as Gov. Jan Brewer’s proposal for a sales-tax increase, to use to close a $3.2 billion shortfall in a state budget.
Like many states grappling with budget shortfalls amid the recession, a collapsed housing market and rising unemployment, Arizona has no mechanism in place to cope with the lack of a budget when the new fiscal year starts — something that hasn’t happened before.
More than 20 states have provisions that direct government to shut down without a budget, according to the National Conference of State Legislatures.
About a dozen states use continuing resolutions to keep spending temporarily. A dozen other states have other procedures that allow for continuous payment of funds for agencies and services, the NCSL said.
In Arizona, it wasn’t clear what would happen if lawmakers and the governor are unable to reach an agreement.
