AZ Faces $400 Million Budget Deficit
Posted by Austin Debey on October 13, 2023
On Wednesday, the Arizona Joint Legislative Budget Committee (JLBC) revised their estimates for the current fiscal year budget. Instead of a $10 million surplus which was projected four months ago when the Governor and Legislature passed the budget, the JLBC now estimate the state will be faced with a $400 million deficit by next June, and a $450 million deficit the following fiscal year.
As a result of these numbers, government programs and state agencies could be bracing for potential budget cuts for the first time in eight years. As an alternative to cuts, some lawmakers will push to raise revenue through tax increases or look to use the $1.5 billion in the states “rainy day fund” as a solution. However, both of those options will be a hard to convince the Republican controlled Legislature.