By Howard Fischer | Capitol Media Services via Arizona Capitol Times
State government is likely to have lots of extra money to spend in future years – if the national economy doesn’t collapse.
New reports Thursday from the staff of the Joint Legislative Budget Committee show that revenues in the fiscal year that ended June 30 were 10 percent above predictions. That was fueled by a big increase in individual income tax payments in May.
All that should mean the state will have $694 million unspent when this budget year ends next June 30 on top of the current $11.8 billion budget, money that could be allocated for the next fiscal year.
But Richard Stavneak, the agency’s director, warned lawmakers against spending it all, particularly in creating new and expanded programs.
He figures that perhaps just $170 million of that is likely to be available on an ongoing basis, meaning legislators should be able to count on it year after year.
And Stavneak said it would be prudent to hold back $50 million in reserve.
The remaining $475 million? Stavneak said he and his team of economists are unwilling to predict that is any more than a one-time bubble. And that, he said, means the most prudent way to spend those dollars would be on one-time expenses.
All that comes with caveats.
