Gov. Brewer urges Ariz. lawmakers to face up to state’s challenges amid budget crisis

Ariz. governor urges lawmakers to face challenges

PHOENIX — Gov. Jan Brewer on Monday urged Arizona legislators to show courage in tackling the state’s budget crisis by taking steps that include shrinking public services and raising revenue.

“Our state is still waiting for us to conduct some very difficult business,” said Brewer, a Republican making her first State of the State address after taking office less than a year ago. “It isn’t going to be easy, but we must close ranks and get it done.”

The state faces a midyear shortfall of at least $1.4 billion in the current $8.4 billion budget. A deficit more than twice that big is projected for the fiscal year that begins on July 1.

She said fixing the budget will require more spending cuts as well as a short-term revenue increase, though she didn’t specifically mention her stalled proposal for a temporary sales-tax increase.

She said another needed budget fix is that voters should be asked to consider rolling back an eligibility change that helped add more than 400,000 people to the state’s Medicaid program since 2004.

“These are difficult days that providence has set before us. I do not shrink from them. And, neither should you,” she said.

In an apparent challenge to legislative critics of her proposed tax increase, Brewer said she’d welcome specifics on how to close a combined two-year shortfall of $5 billion. “The suggestion box is wide open,” she said.

An announced candidate for a full term as governor, Brewer also used the speech to cite steps she is taking to add high-paying jobs to help grow the state’s economy.

She said she will use $10 million of federal stimulus money for training and convene a business summit on job creation opportunities.

On other topics, Brewer called for clearer labeling of public schools’ performances, criticized the federal government for shoving off costs on states and said she’ll launch a push to make state government more efficient.