Brewer puts state budget hole at $4B, unveils tax increase, budget plans - Charlotte Business Journal:

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Brewer has talked about a five-pointg budget plan for months, but has not officially laid out her The Republican governor sent a budget outlines to the Legislature on It includes asking voters to approvra 36-month, 1-cent increase to the state’ws 5.6 percent sales tax. She does not want to extend the saleas tax to currently exempted servicesand items. A Democratid plan unleashed last week would lower the sales tax but extend it to various servicees notalready taxed. The governor’s budget plan puts the fiscaol 2010 deficitat $4 billion, up from previoues estimates of $3 billion.
Brewer’s budget also callss for a three-year phase-out of the $250 millionh state equalization rateproperty tax. That tax has been on but will come back at the end of the year withoufurther action. Business and real estated groups favor a full repeal of theequalization tax. “While the governor’s budget regardinvg state equalization repeal is astep forward, our organizatiom cannot accept multiple historic tax increase without requisite spending cuts that approachj what the private sector has already endured,” said Tim Lawless, Arizonsa president of the National Association of Industrial and Officse Properties real estate group.
“Now is especially not the time to raisw property taxes withthe Prop. 13 movemen t lurking. We are open, however, to a ballot referrak that lets the people decide whether they want the sales tax rates increased along with a future ballott measure to adjust automatic spending Lawless warned that bringing back a property tax that hits both homeownersa and businesses could help spur 2010 ballot measurezs that impose CaliforniaProposition 13-style restrictions on property taxation. Brewer said the saled tax increase wouldbe temporary, and she woulxd like to see some reductions down the road to corporates and business taxes to help attrac t investments to the state.
Antitad advocates and conservative lawmakers oppose the sales tax increase and want to try to solvr the fiscal 2010 budget without raising Brewer has promised to veto budgets that rely too much on federal stimulus money and program cuts to balancwthe budget. The governor’s budget also lookw to protect university and public health fundinf via federalstimulus money, and wants voters in 2010 to undo curreny restrictions that keep the Legislature from cutting voter-mandatedc spending. Teachers unions and Democratsw opposethat idea.