One More Failed Budget Proposal... it keeps getting worse for law enforcement.

Last week, the Legislature made another attempt at resolving the budget impasse.  This time, they took a swing at removing 5% of State positions.  Basically, if this new proposal passes, each general fund agency must eliminate 5% of their positions and are not allowed to use a furlough mechanism to achieve the reduction.  Current vacant positions may be counted toward the 5% total.  It is unknown how many layoffs would be necessary, however more than 1,700 positions would be eliminated if the proposal is approved.

The short story is that the Senate was unable to get the votes needed to pass what was essentially the same budget they attempted pass at the end of June - with an added provision to take the Governor's tax increase proposal to a public vote.  However, in order to acquire the agreement of one Senator (Harper), the Governor and the majority leadership included several new provisions, one of which, is a 5% reduction in general fund agency positions by February 2010. The measure does not allow furloughs.

With the Governor's approval, the House voted to pass the budget and is prepared to send the Budget bills to the Senate. 

When I spoke to Senator Harper and Senator Pearce, they explained that current vacant positions could be counted toward the 5% reduction.  Senator Harper could not tell me which agencies would actually suffer from layoffs of employees. Therefore, the actual number of layoffs, if any, is unknown should the proposal pass sometime in the future.

After a marathon session on Thursday and Friday, it became clear the budget, in its present form, was one vote short of being able to be taken to the Senate floor for a vote. 

The negotiations will continue on Tuesday.

There are many good provisions in this new budget proposal, however, those good measures are tainted by bad provisions.

Some of the good:

The DPS budget was restored. Because of the governor's previous line item budget vetoes and the veto of the other bills she rejected at the end of the regular session, DPS was left without a budget.  Currently DPS is borrowing money from other State agencies to meet payroll. Unless a new budget is passed soon, that funding will become unavailable.

The State Lab was funded by creating a new funding structure.  This new structure does not require user agencies to pay fees for lab services.

The AHCCCS cost structure for prison inmate heath services was revised to restore $26 million to the ADC budget.

Allows the Attorney General to use monies in the Consumer Protection-Consumer Fraud Revolving Fund for any operating expenses incurred by the Department of Law, including any cost or expense associated with the tobacco master settlement agreement arbitration.

Allows the Attorney General to use monies in the Collection Enforcement Revolving Fund for any operating expenses incurred by the Department of Law.

The Bad

A 5% FTE (Full Time Equivalent) employee reduction by February 2010 in each general funded agency. Furloughs are not allowed to be used to meet the reduction target. 

On or before February 1, 2010, the number of full-time equivalent employees for every general fund supported agency, board, commission or other entity of this state shall be reduced by five per cent. To meet this requirement, an agency, board, commission or other entity may not reduce the hours of or furlough any employee. The reduction may only be made through reduction of positions.

The new budget included a measure to require "Requests for Information" to determine if prison operations (other than the Yuma Prison) could be privatized.

Requires, the Arizona Department of Administration (ADOA), before October 1, 2009, and in consultation with ADC, to issue a request for information for the purpose of identifying the feasibility of a concession agreement that allows a private vendor to operate a prison facility. ADOA, in consultation with ADC, to issue an RFP for a concession agreement allowing private vendors to operate an Arizona State Prison complex other than the Arizona State Prison complex at Yuma.

The legislature proposed sweeping $43,170,600 of Vehicle License Tax from cities, towns and counties. Although much reduced from previous proposals, this cut has the potential to adversely impact all Cities, Towns and Counties.  We expect some cities to examine further budget cuts.

Dispatchers hired after the effective date of the bill, will not be allowed to participate in the CORP retirement plan.

Restricts full-time dispatchers from participation in the Corrections Officer Retirement Plan to a person who was employed as a full-time dispatcher before the effective date of this amendment, if the governing body or agency of the employer of an eligible group enters into a joinder agreement with the fund manager to bring its full-time dispatchers into this plan before the effective date of this amendment.

Third party payments made to police officers, through the agency, for off duty work, may not be used for pension calculations.

Excludes, from the Public Safety Personnel Retirement System compensation, payments made directly or indirectly by the employer to the employee for work performed for a third party on a contracted basis or any other type of agreement under which the third party pays or reimburses the employer for the work performed by the employee for that third party, except for third party contracts between public agencies for law enforcement, training, wildfire and emergency management activities.