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AZ: Alt-fuels debacle hits state budget harder than expected
KNXV TV Website ^ | July 29, 2002 | KNXV

Posted on 07/30/2002 8:57:03 AM PDT by hsmomx3

(Mesa-AP) -- A runaway subsidy for alternative-fuel vehicles that eventually was scrapped hit Arizona's treasury harder than expected this year.

And Arizona State Finance Chairman Scott Bundgaard says he wants to know why.

The Governor's Office disputes whether the financial hit surprised anyone.

But Bundgaard says he expected a cost to taxpayers of no more than 16 (m) million dollars a year under a law he helped craft.

Instead, when a revenue shortfall caused lawmakers to dip into the state's rainy day fund this year for extra cash, they found the fund short by about 112 (m) million dollars.

Bundgaard says somebody made the decision to write the check for the full amount. In doing so, he says, they didn't abide by what the Legislature thought was going to happen.

(Copyright 2002 by The Associated Press. All Rights Reserved.)


TOPICS: Government; US: Arizona
KEYWORDS: altfuels; az
FYI.
1 posted on 07/30/2002 8:57:04 AM PDT by hsmomx3
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To: hsmomx3
Enron, Global Crossing, Worldcom, Government - what is the difference?
2 posted on 07/30/2002 9:12:53 AM PDT by 2banana
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To: 2banana
Enron, Global Crossing, Worldcom, Government - what is the difference?

Enron, Global Crossing and WorldCom can't demand your money at the point of a gun.

Government can.

3 posted on 07/30/2002 10:32:56 AM PDT by DuncanWaring
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