PHOENIX (Wire Services) January 16, 2010 ― Gov. Jan Brewer on Friday released a budget proposal that envisions an Arizona government that does less for the state's vulnerable populations, shifts costs onto local governments and cuts state-employee pay to cure the state's massive budget deficits.

She called on lawmakers to act now to raise the state sales tax by 1 cent per dollar, rather than sending the issue to voters. The extra money must start flowing by March 1, her budget director said, or further cuts of $263 million will be needed to balance a budget that has virtually nothing left to give.

Brewer's plan for balancing the current year's budget, as well as the fiscal 2011 budget, shrinks the size of state spending from the $10 billion plan that was in play last year.

For this year, she outlines $7.8 billion in spending; for the fiscal year that starts July 1, $8.6 billion.

Chastened by the budget woes that have marked her year in office, the Republican governor also is calling for constitutional amendments to guard against a repeat of the current fiscal disaster: a balanced-budget requirement, as well as a bigger and tamperproof "rainy-day fund." The state Constitution does not have clear language requiring a balanced budget.

"Today marks the most significant day of state budget reform and restructuring in Arizona's 98-year history," Brewer wrote in a letter to Arizona's 90 lawmakers.

She lauded the state's track record of tax reduction, as well as its ability until recently to keep up with population growth and its demands on government.

But, she added, "those days of expanded government service are over."

Her plan calls for elimination of the state's controversial photo-enforcement program, even though it is expected to bring in $35 million next year. Brewer will let the contract lapse when it expires in July.

Republican lawmakers, who control the Legislature, had scant comment on the budget proposal, her first since becoming governor.

"At first glance, I believe there's a lot of common ground between the governor and the Legislature," House Speaker Kirk Adams, R-Mesa, said in a statement. Senate President Bob Burns, R-Peoria, did not return a call seeking comment.

The Legislature's budget committees meet Wednesday to review Brewer's plan.

Unlike Republicans, Democrats were quick to criticize.

"Today, the governor released a budget plan that continues to push Arizona down the wrong track and makes even more devastating cuts to education, jobs and health care," House Minority Leader David Lujan, D-Phoenix, said in a statement.

Rebecca Rios, the Senate's assistant minority leader, said the proposal hits services for children, the mentally ill and working families especially hard.

"Cutting 310,000 people from AHCCCS, 47,000 from KidsCare and 17,000 from mental-health services is a cost shift to the already broken health-care system, which will in turn almost necessarily raise rates for services," Rios, D-Apache Junction, said in a statement.

The governor's proposal is a starting point for the budget process; it is up to lawmakers to pass a budget for the governor to sign.

Although the budget process usually takes months, Brewer wants quick action, budget chief John Arnold said. The plan assumes additional sales-tax revenue should start filling state coffers by March 1. That means lawmakers would have to pass the sales-tax hike within a matter of weeks.

The proposal would hike the state's 5.6 percent sales tax to 6.6 cents per dollar through June 2013.

Complicating matters is Brewer's strategic shift from sending the matter to the voters to calling on lawmakers to pass the tax themselves, which would require a two-thirds vote in both the House and Senate. She also wants them to temporarily expand the sales-tax base to include repair services, such as for autos and appliances.

That's a tall order because lawmakers failed to refer the tax to the ballot last year.

Neither Arnold nor Paul Senseman, the governor's spokesman, would comment during a budget briefing for the media on what strategy, if any, Brewer has to persuade lawmakers to heed her call. They said the magnitude of the cuts should be reason enough.

Brewer didn't attend the briefing, although she was present earlier for separate briefings for Republicans and Democrats.

Arnold said there are dire consequences if the sales tax is not approved.

"If we don't get it done, that's another $263 million that comes out of the budget," said Arnold, director of the governor's Office of Strategic Planning and Budgeting.

To cut that much money in midyear would mean elimination of basically every other state program and agency not protected by federal or voter mandates, from prisons to the judiciary, he said.

Arizona has a $1.4 billion deficit this year and faces a $3.2 billion deficit for the fiscal year that begins July 1.

Already, the budget proposal adds up to $92 million in cuts. Elements of the proposal include:

• A mandatory 5 percent pay cut for state employees. Universities would be exempted because of terms of federal stimulus dollars.

• Elimination of the state Department of Juvenile Corrections, with the duties transferred to county governments. That would force the layoff of 980 state workers.

• No more general-tax dollars for state parks. On Friday, the parks board voted to shut down 21 of the state's 30 properties.

• An end to state support for all-day kindergarten.

• Cuts to various social services, including reductions in cash assistance that will affect 10,000 families and elimination of KidsCare, which provides health care to children of low-income families.

• Authorization to take on an additional $750 million in debt.

• Termination of the state program that currently serves 17,400 seriously mentally-ill adults.

The closure of this program, which would save $37 million, was especially hard for the governor, who has long championed mental-health causes, Arnold said.

"We heard her talk about it with depth and emotion," he said. "This has become a benchmark for us."

That benchmark means that anyone who seeks more funding from the state must first make the case why the cause is more important than providing services to 17,400 mentally-ill adults, he said.

The governor's budget does offer some aid to this vulnerable population: $21 million for crisis intervention and housing and $37 million for prescription-drug assistance.

In addition to forgoing future revenue from photo enforcement, the governor does not plan to seek extra assistance from the federal government, as California Gov. Arnold Schwarzenegger recently did.

Brewer also wants lawmakers to refer several measures to a May 18 ballot that would give them more control over state dollars currently off-limits because of voter protections.

The measures include a rollback of the state's Medicaid requirements and lifting protections on a land-conservation fund, among others.