There was a misstatement in last week's report than I need to correct.  I indicated that the amount of transportation funding that was supposed to go to other than Maricopa and Pima counties went to Pima.  That reference should have been to Pinal County.  Sorry for my error -- chalk it up to not carefully editing my writing.

This week we will be making the budget recommendations for the last of the agencies assigned to my sub-committee, including Dept. of Water Resources, Dept. of Environmental Quality, Community Colleges, and the Universities.  This has been heaving lifting, as these are all important to the future of this state.

Community Colleges are actually funded by a series of formulae, so there is not much leeway.  There is one area that is quite complicated, having to do with reimbursements to counties who do not have the ability to form their own CommCollege system and whose students pay "out of county" tuition to attend neighboring schools.  The state has been paying the difference between what it estimates the cost to provide CommCollege would be vs. the cost paid by students.  There is dispute as to the method by which this figure is arrived and there are suggestions for revising the computation.  In the meantime, we will recommend the largest amount we feel is practical.

The Universities have great political pull, and will be the subject of much negotiation between the Governor and the Legislature.  My committee will be recommending the JLBC baseline amount, recognizing that the actual amount will be determined as the budget negotiation proceed.  Here are some figures on how much university funding has been increased over the past two years:

       $72.1 million for salary increases
       $38.9 million for discretionary funding
       $32.4 million for enrollment growth
       $28.3 million for standard changes
       $20.0 million for building renewal

The JLBC baseline provides an increase from the General Fund of $96.8 million for FY 2008, including the following:

       $20.0 million for enrollment growth
       $34.6 million for lease-purchase payments for research infrastructure buildings
       $27.1 million for the statewide 2.5% pay raise
       $18.8 million for building renewal

One of my campaign promises was for additional funding for the Dept. of Water Resources, and I have fought to keep that promise.  We will be recommending substantial increases for that agency to both fund both rural water studies and speed of the processing of applications for the "Adequate and Assured Water Supply" permits.

All of my bills continue to work their way through the system, with one exception.  I reluctantly held HB2761, which dealt with doctors notifying MVD of patients who had potentially dangerous conditions.  This bill generated much negative comment from the medical community with regard to potential breach of doctor/patient confidentiality.  There was also concern that should a doctor be required to report, patients would either not seek treatment or not take prescribed medications.  I have agreed to work with the medical community during the interim to find a workable solution.  There are some people who simply should not be allowed to operate a motor vehicle and we must find a way to make that happen.

This coming Thursday (2/22) I will be in Beaver Dam for a public meeting sponsored by the AZ Corporation Commission regarding the potential water transfer to Nevada. This meeting is informational only and will have no bearing on the decision, but I thought it important for me to be there.  I requested and received an "excused absence" from the House on that day.

The actual hearing will be March 2-4, and I will again be in Beaver Dam showing my support for the folks there.

Until next week,

Nancy McLain