Arizona Gov. Jan Brewer on Wednesday signed a budget-reduction bill containing $193 million of funding cuts and other changes that set the stage for agencies to reduce services and cut employees' pay.
The bill approved Saturday by the Legislature includes midyear 7.5 percent lump-sum cuts for most agencies and sweeps dollars from more than 100 special-purpose funds to prop up spending.
It reduces the state's revenue shortfall to approximately $1.4 billion from $1.6 billion.
To implement the cuts, the bill allows state agencies to cut employee compensation by up to 5 percent, though no such pay reductions have been ordered.
Other predicted or expected impacts include reducing or eliminating some social programs, closing some or all state parks and crimping tax collections efforts.