Clock Ticking: $715 Million Deficit Still Looms

Since last October, fiscal analysts have been warning that the state’s revenues are not sufficient to support the budget that was passed a year ago.  The latest Monthly Highlights issued by the Joint Legislative Budget Committee staff show some improvement in revenues since January. However, it is unlikely revenues will increase enough over the next 40 days to end the year in the black without policymakers acting.  

When the budget was passed a year ago, it assumed the state would end the current year with a $10 million positive balance. By January, when the legislature came into session and a new baseline forecast was released, the $10 million balance had become a $835 million deficit. As of the end of April, revenues have improved by $120 million, but the deficit still needs to be addressed within the next month and a half. 

For more on why Arizona’s budget is in trouble, click here to see our previous blog, Tax Day Tip.