Arizona Legislature beginning 2012 session

PHOENIX - Republican Gov. Jan Brewer delivered her third State of the State address to the Arizona Legislature on Monday as lawmakers begin their 2012 regular session.

The House and Senate began the session with proceedings in their separate chambers at noon, followed by Brewer's address to a joint session of the Legislature in the House chamber.

Brewer gave ABC15 a preview of her State of the State address during an annual luncheon Friday with the Arizona Chamber of Commerce and Industry.

Brewer spoke about her four cornerstones of reform: improving Arizona's position and economic competitiveness; education reform; state government reform; and a renewed fight for state's rights.

The Governor says she will continue to focus on job growth, the economy, and education funding. 

According to Brewer, state finances are in good health. For the first time since 2008, Arizona is not facing a budget deficit.

Brewer says Arizona is expecting a significant budget surplus. She estimates a surplus of $1.3 billion and $1.5 billion for 2012-2013.

This comes after cuts to state Medicaid programs and a temporary sales tax increase of one-percent.

"Arizona will produce positive fund balances even if the temporary one-percent sales tax expires at the end of 2013," Brewer said.

Brewer says she plans to build from this new baseline.  Her goals for the next year include examining the needs of the State and its 120 agencies, one-by-one, to adjust allocations and allow strategic planning.

Brewer says she also plans to invest funding resources "to support teachers who achieve results."

The Senate's opening day formalities included the election of Prescott Republican Steve Pierce as Senate president.

Pierce, who also attended the luncheon, said the state is still in a deep hole, despite the budget surplus Brewer announced.

"It's already been spent," Pierce said. "We borrowed $1.5 billion two years ago and we have a billion dollars we owe the education rollover. We're in a deep hole. We're coming out of it but the biggest challenge is to keep from spending that money that we're ahead right now."

Majority Republicans chose Pierce to replace Russell Pearce, who lost a Nov. 8 recall election, resulting in his ouster from the Legislature.

Lawmakers hope to conclude the session by late April.