Arizona is #2 in the Nation.  That is, according to the Pew Center for the States, we are rated as second only to California in terms of state fiscal problems.  Do we not recognize the seriousness of this situation?  Let me repeat, we are in the worst financial condition of any state in the Union except for California!  If that doesn’t give you extreme concern, please check your pulse.  Currently, Arizona’s budget calls for $10 billion in spending but only $6.4 billion in revenue.  To make matters worse, the State Legislature and governor’s office are locked in extreme partisan politics that have resulted in minimal progress toward any inkling of solution.  If not for the dire consequences of this government debacle, it would be a comedy.  If you have been following the matter in the media for the many months that the budget situation has been center stage, you will concede that I am being polite in describing the government paralysis as a debacle. 

In short, the Republicans want the budget imbalance solved with cost-cutting but no new taxes.  In contrast, Democrats want tax increases but few spending cuts.  Well guess what folks, you can’t both get what you want and still narrow the budget gap.  Neither group will budge so here we are.  Partisan politics of the party establishment is to blame for our dubious honor and pitiful stalemate.  After a year of this non-sense, the Legislature voted to pass the matter on for the voters to decide in a special election.  There’s nothing like kicking the can down the street to the voters instead of fulfilling their obligations by making hard decisions.  That is an entire year wasted on what can only be considered defeat.

Of recent, the Republican Legislature and Governor, to the scorn of the Democratic legislators, cut state spending by approximately $300 million.  Social programs and education were the primary areas of reduction.  As painful as these cuts were, they are only a portion of a solution. 

Why do we find ourselves in this situation?  The list is long and will be a subject for a separate discussion.  However, in general, this state has always taken the short-sighted and easy way out on financial policy that created a system which is unsustainable when times are less-than-ideal.  This resulted from the wild-west mentality of the state being too heavily controlled by power brokers and special interests.  It worked well for them, at least at the time and now we are paying for past indiscretions.  But, that is water over the dam and we now have to deal with the present and future by breaking the bonds of control by the power bases. 

This Candidates Solution
Hang on because this is where I loose all friends and potential allies (which is called taking a strong stand for what is right)!  It is also called ”Not having to answer to political special interests except to the citizens of Arizona.  In short, my position will be that nobody gets everything they want and everyone gets something they don’t want!  That could also be called compromise, mutual sacrifice for the good of all or just plain responsibility.

Being a true conservative, I firmly believe in fiscal responsibility which is code for operating a balanced budget.  Just like we are all forced to do in our personal lives, if we don’t have it then we don’t spend it, period.  The experts all agree that even draconian spending cuts won’t solve the deficit.  Nor will imaginable increases in taxes.  The hard-to-swallow pill is that the only solution is both spending cuts and tax increases.  Don’t like this solution, well, I don’t rejoice in it either.  But what is our alternative, continuing to flounder down the path of being the 2nd financially-worst state in the Union?  It is the only solution and this leader has the courage to tell the citizens, lead the legislature through this troubling financial time and take the heat from all sides while we all grit our teeth and get through this crisis.

I firmly believe (as does any responsible economist) that the only light at the end of this tunnel of continued financial degradation is the execution of a balanced budget.  I intend to accomplish this act of responsibility with the fair sacrifice by everyone for the common good.  Everyone will have “skin in the game”.  Legislators will be partners in the solution with a Governor’s office that is independent and respectful, but demanding.  Partisans and special interests, well, sorry but its time to join in!