Sunday, December 20, 2009

New round of budget cuts bring total to 45% for AZGS

The Arizona Legislature adjourned it's 3 day special session on Saturday with the latest round of budget cuts and fund transfers sent to the Governor for her signature.

The AZGS will take another 7.5% reduction of our General Funds appropriated by the state. In addition, the State will take $48,200 from contracts and grants awarded to the AZGS for specific projects. To avoid cancelling the projects and losing many times that amount of funding or going into default for noncompliance, we will have to cut back elsewhere and shift funds around.

Combined, this newest budget reductions amounts to the equivalent of 13% of our current state appropriation. Cumulatively, in the last 18 months, we have now taken net cuts equal to about 45% of our state appropriation at the start of Fiscal Year 2008.

We continue to seek external funding to replace state funds and subsidize our state-mandated statutory duties. And we've been pretty successful. Two-thirds of our budget comes from grants and contracts now. However, this new approach of 'sweeping' up our contract funds could shut down that business model.

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