Arizona’s state budget battle went down to the midnight June 30 wire — and then past it — without resolution. After using her line-item veto authority on six of nine budget reconciliation bills, Gov. Jan Brewer called the Legislature back into a special session that is to begin at 1 p.m. Monday (July 6) to resolve differences between what lawmakers have proposed and what she wants.

In a statement, Brewer called the Legislature’s budget, passed in the early morning hours of July 1, “fatally flawed” that “ignores my consistently expressed goals and instead incorporates devastating cuts to education, public safety, and our state’s most vital health services for the frail.” 

She also said it “sets up an enormous revenue shortfall that will severely harm our state’s future.”

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The budget approved by the Legislature did not include Brewer’s request to temporarily increase the state sales tax to 6.6 percent, from 5.6 percent. It also didn’t include a proposal for a flat income tax that had gained some traction among conservatives in the final days of the session.

The flat tax proposal would have established the state’s income tax rate at 2.8 percent for all taxpayers, except individuals earning $10,000 or less and couples earning $20,000 or less would have been exempt. Currently, the state’s graduated income tax has five rates ranging from 2.59 percent for individuals earning $10,000 or less to 4.54 percent for individuals earning $150,000 or more.

Specifically, Brewer vetoed budget items covering K-12 and higher education, health and welfare, general government, general revenues and state assets. But her approval of the general budget allowed for the operations of state government to continue into the new fiscal year without being shut down.