With the fiscal year already two-thirds finished, there was finally some movement last week to address the state’s impending $1.2 billion budget shortfall.

On Thursday (Feb. 21), Gov Janet Napolitano ordered a freeze on hiring for all open state jobs except those in health, safety and revenue collections. Napolitano had been arguing against an emergency bill passed by the House earlier in the week to improse a hiring freeze saying state agency directors had the situation under control.

Also last week, both the Senate and House Appropriations committees approved a Republican-led package of six bills to cut spending and shift money from several specialized funds into the general fund. Included are:

• $615 million from the state’s budget reserve rainy day fund, leaving it with $70 million to cover an anticipated $2 billion shortfall in the 2008-2009 budget.

• $327 million from one-time sweeps of 107 different funds with dedicated revenue streams going to support specific programs.

• $212 million in cuts to state agencies, including reducing university spending by $25 million and K-12 education by $37 million.

Plans also call for stopping any school construction of projects not already approved for this or next fiscal years and raising court fees by 40 percent.

The bills were approved in their committees along party lines. Democrats are continuing to support Napolitano’s proposals, which rely heavily on borrowing money to pay for school construction.

Republicans had argued state agencies weren’t responding to Napolitano’s earlier request to curtail hiring. Rep. Bob Robson, R-Chandler, said on the House floor the state Department of Administration’s website shows 300 available jobs with eight job fairs scheduled around the state through April.

The Legislative proposals now go to the full Senate and House for consideration.