Legislative budget analysts predicted a $2 billion budget deficit for Arizona’s current fiscal year, leading to spending cuts.New projections show that deficit will likely not be happening again for the coming year. Analysts say the cuts initiated this year are unlikely to be restored.Current revenue are about $425 million higher than initially projected, however only a little more than a third of that will be available in the coming years.Democratic Gov. Katie Hobbs hopes to flip control of the Legislature to her party in November.But it would take two-thirds of the Legislature to vote to get rid of the tax cuts implemented during the previous governor’s administration.Hobbs says her goal is to have a bipartisan process for budget talks in the coming years.And there is also a looming fiscal cliff on education with next year’s expiration of Proposition 123, a measure passed by voters under previous Gov. Doug Ducey that funnels nearly $300 million a year to K-12 schools. Backfilling that funding and other “formula” increases to state spending for schools and Arizona’s Medicaid health insurance plan will use up much of the extra cash available in the next three years, according to a presentation by the Joint Legislative Budget Committee staff this past week.And that doesn’t include what has been labeled as “one-time” spending, notably state employee health care costs and the school repair fund. In reality, those really are ongoing expenses that will have to be included in future spending plans.But …
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