Deltek Analyst Derek Johnson reports.
On April 27, 2012, Arizona Governor Jan Brewer announced a deal with state Republicans on a budget that will fund the state government through FY2014. The agreement closes a $300 million gap between the governor’s recommendations and the preferred budget of the legislature, helping to balance the state’s books until FY 2015.
Total all-funds expenditures for the new year total around $34.96 billion, a 2.5 percent increase in overall spending from FY 2012. Department spending in the health care, higher education, general government, public finance, and natural resources/environment verticals all increased significantly, while the homeland security and community development verticals were down noticeably from last year (see Figure 1, above). After significant wrangling with the legislature, the governor’s office was able to hold the line on education and obtain an additional $445 million in health care spending. Additionally, state Republicans were able to secure nearly $450 million for a “rainy-day” fund to address a potential budget shortfall looming two years down the road.
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