PHOENIX - Arizona Gov. Jan Brewer on Wednesday signed three bills to restore public school funding and the state's eligibility for federal stimulus that were needed to help prop up the state's still-unbalanced budget.
An appropriations bill that Brewer signed Wednesday not only restored school funding earlier cut by Brewer in a line-item veto, but also increased funding by $500 million.
Brewer's vetoes of parts of the budget approved by the state Legislature eliminated funding for K-12 public schools and also put the state out of compliance for $2.3 billion of stimulus money.
In making her vetoes, the Republican governor had said she wanted to increase spending for some services and also get lawmakers to again consider putting her proposed sales tax increase before voters in a November special election ballot.
Though it was part of a negotiated compromise with Republican legislative leaders, the sales tax increase was not approved by the full state Legislature.
Brewer on Wednesday also signed two bills to restore vetoed budget provisions needed to keep state in compliance with federal rules for two major categories of stimulus money needed to help balance the state budget. One category was health care for the poor; the other was for education and general government.
Brewer on Wednesday also signed a fourth bill limiting the daily expense pay for legislators during the special session that Brewer called for further work on the state budget.
The special session began Monday and will continue as Brewer and legislative leaders consider the proposed one-cent, three-year sales tax increase and budget changes to respond to other Brewer vetoes.
According to the legislative budget staff, the vetoes left the state with a $9.9 billion budget with a $2.1 billion shortfall. Before the vetoes, the budget had been balanced at $8.4 billion of spending.
"The Legislature still needs to work with me on a solution on the revenue side, because the budget is massively out of balance," Brewer said Wednesday. "Each day that goes by represents a dangerous delay."
Also in the mix is a state property tax that has been suspended for three years but that now is set to take effect again. The approved budget would have repealed it, but Brewer's veto of one of the budget bills erased that provision.
Republican legislators say they want that tax repealed outright because they don't want to burden the state's ailing economy. Democratic lawmakers want it allowed to return to produce an estimated $250 million of annual revenue. Brewer proposed a three-year phaseout.
Along with her line-item veto of school funding, Brewer also erased lump sum cuts from spending for social services, health care, environmental protection and universities.
Because those line-item vetoes dealt only with spending reductions and not basic funding, lawmakers don't face the same pressure to reach an agreement on them as they did with the school funding. Without the new appropriation, the state would not have been able to make a July 15 payment of school aid.
Rank-and-file lawmakers were expected back at the Capitol on Monday.