HEADLINES : Arizona

Brewer budget has big impacts for state workers, contractors

Phoenix Business Journal | by Mike Sunnucks | January 17, 2012

There is s nothing really sexy or hot-button controversial in Arizona Gov. Jan Brewer's new state budget.

But Brewer's budget could have some lasting impacts on how state government operates and impact businesses and contractors who do business with the state.

The state is slated to enjoy a $1 billion-plus surplus, its first since 2008 thanks mostly to the last year of the temporary one-cent sales tax.

Brewer's financial plan doesn't talk at all right now about taxes. That includes a possible education-backed measure to extend that sales tax or capital gains and other business tax breaks.

But it does call for some rate increases for Medicaid providers. Those providers have taken it on the chin recently as the state government has cut health spending for the poor.

The governor also wants to use some of the surplus to replace aging state computer and information systems. That will mean some contract opportunities for information technology contractors and other providers.

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