Arizona officials plan for special budget session

PHOENIX - Top Arizona officials on Thursday began talks on how to erase a budget shortfall now being estimated at about $1.2 billion and said they hope to have the Legislature meet in special session this month or next.

Gov. Janet Napolitano and top legislative leaders emerged from an hourlong meeting Thursday, telling The Associated Press that they were beginning to discuss options for closing the gap in the current $9.9 billion budget.

Napolitano and lawmakers said they agreed that the shortfall will be at least $1.2 billion, though one of the leaders, House Speaker Jim Weiers, cited a range of between $1.2 billion and $1.4 billion.

Napolitano's previous projections topped out at $800 million; the legislative budget staff's most recent high estimate was $1.1 billion.

Napolitano had labeled the previous $800 million as "pessimistic" and blamed slumping sales tax revenue when asked to explain the higher projection.

"It's been a moving target," she said of the shortfall.

She and the lawmakers said they hope to agree on what needs to be done to clear the way for a special session before the next Legislature convenes in January.

"We're going to start developing options," Weiers said.

Holding the special session before January would help with planning for the next budget and also help state agencies know sooner where they stand, the officials said. The next budget will cover the fiscal year that starts July 1.

"The sooner we get this done, the easier it will be for the new Legislature coming in," said outgoing Senate President Tim Bee, R-Tucson.

Napolitano said she had begun presenting lawmakers with ideas for closing the shortfall but declined to describe them. "Not right now because the members need to have a chance to look at this," she said.

Bee said he was "very encouraging by some of the proposals."

Napolitano previously said she would identify possible cut that state agencies can make in their operations. She also has cited a partial state hiring freeze she ordered in May.

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