PHOENIX — Arizona legislative budget analysts said the state finished its
last fiscal year on a disappointing note because tax collections were
less than anticipated.
The budget staff said the lower-than-expected revenue and its effect on the
state’s treasury means the new fiscal year could produce a $49 million shortfall
instead of the expected $64 million surplus.
The estimates don’t incorporate the impact of a recent
court order requiring the state to increase funding for K-12 schools to include
inflation funding mandated by a voter-approved law.