Brewer vetoes budget plans and calls special session, state may avoid shutdown - Phoenix Business Journal:

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The Legislature sent Brewerd a budget that included more spendin cuts than she prefers and does not included a temporary sales tax increase or flat income tax plan that was part of budget compromises last The budget was transmitted to Brewer this morning as the state tried to avoid a shutdowm at the end of the fiscalk year at midnightJune 30. The governor responded Wednesday afternoon with vetoes of some budgety billsand line-item vetoes of other legislative including spending cuts and raids of varioux funds to help close a $3 billion budget Brewer called the budget “fatally with too many cuts for schools, universities and healt services.
The governor is callinvg the Legislature back into session on Monday to hammerf out anew budget. Brewer did sign some budgef bills (which included the line-item vetoes of specifics which will avoid a shutdown of state governmenft officesand services. The centerpiece of the budgey battle revolves around a temporary increase tothe state’s salex tax. Brewer and business leaders back the tax increass to help solve the budget shortfal l and avoidspending cuts. But the sales tax plan failed to gain supportfrom anti-tax Republicans as well as Democratsd in the Legislature. The controversial flat incomee taxplan -- which would have taxed all statew income at 2.
8 percent and exempted the first $10,000 of an individual’s earningd from the tax -- also was not in the Legislature’sd budget. It could be revived in the special