Ariz. Senate committee rejects sales-tax proposal

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PHOENIX -- A state Senate panel has dealt a major setback to a proposed budget compromise as lawmakers face a midnight deadline to avoid a state government shutdown.

Sales-tax increase rejected

Will finished state budget be approved? -'s Kristine Harrington reports that after weeks of negotiations a budget has been finished by both parties, but will the changes be approved in the House and Senate?

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The Senate Rules committee voted 5-1 on Tuesday morning against a resolution to ask voters to decide a one-cent sales-tax increase proposed by Gov. Jan Brewer.

The same committee endorsed other bills in the package.

Senate Majority Whip Pam Gorman was one of the senators who voted against the referral. She said another senator requested a separate vote on the tax measure, allowing the committee to reject just that part of the budget package.

It was not immediately known whether the package would advance without the sales tax or what legislative leaders could do to revive the sales tax measure.

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