I am pleased to report to you that I have signed a budget that will allow us to manage through the lean times by fixing our short-term gaps without being shortsighted.

The budget for Fiscal Year 2009 protects critical areas like education and public safety, and is balanced. Don’t be mistaken: this was not an easy budget to create, and balancing it required some painful cuts. But it wisely uses our best fiscal tools and solves our current shortfall without sacrificing our future.

The current budget solves a $2 billion shortfall by using prudent fiscal tools. Among these are about $432.5 million in strategic spending reductions and $581 million in capital financing for new school construction.

But what is most important is what this budget preserves.

• University Infrastructure Economic Stimulus – the budget includes $1 billion in capital financing for construction at state universities. The infusion of capital will give a desperately needed boost to the construction industry in Arizona and build up our university infrastructure. This investment is critical to Arizona’s future. It will allow the state to accommodate future growth, build the pool of highly qualified workers, and help double the number of bachelor’s degrees earned in Arizona by 2020.
• Additional CPS Workers – The budget has upwards of $5 million for more than 80 additional CPS workers to help protect Arizona’s vulnerable children.
• Preserved Funding for Education – The budget contains basic funding for K-12 education and full day kindergarten. It also amends the school building formula to include funding for all-day kindergarten classrooms.
• Health Care Professionals in Underserved Areas – $500,000 to expand loan repayment programs for doctors, nurses and other health care workers in rural, tribal and underserved areas.

I want to thank the Arizona Legislators who worked throughout the session to create a fiscally responsible budget that moves our state forward. As always if you have any questions or comments, you can call my office at (602) 542-1318, or visit my website at www.azgovernor.gov for more information and news in state government.

Yours very truly,

Janet Napolitano
Governor