UPDATE: Budget breakthrough?

Today the Senate Appropriations Committee, by imposing a strike-everything amendment on a biofuels conversion bill and reconstituting it as an adjustment to the Fiscal Year 2007-2008 budget, is gearing up to bring the latest attempt to resolve the volatile and contentious issue of state finances for the current FY.

According to a Senate staffer, Republican leaders in the Senate are caucusing this afternoon to gauge how to proceed with HB2620, which now may become the second FY07-08 to make it through the legislature.

By a vote of 7-4, pitting Republicans against Democrats on the Appropriations Committee, the bill passed to the party caucuses this afternoon, and will come to the floor today. The bill cuts approximately $311.5 million [corrected from $583.5 million] out of state agency spending.

The Senate insider said the bill is expected to pass, if but narrowly, which, if it also passes the House, would leave Governor Janet Napolitano to consider whether she will accept or veto it, as she did with the last adjustment to the FY '07-'08 bill that crossed her desk a month ago.

Senate Democrats are feeling a little raw about the process, as they had not seen the adjustment before it was introduced today, but are still hoping to make it work for all parties. Therefore they plan to propose an amendment adjusting certain cuts which, it is hoped by its presenters, will make it more likely the Governor will sign the legislation when it reaches her.