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From The Associated Press

Ariz. attorney general laying off 20

PHOENIX—Attorney General Terry Goddard said Tuesday his office is laying off 20 workers, apparently the first such cuts by a state agency in response to Arizona’s worsening budget crisis.

Goddard said he was taking steps “to economize in every possible way” and that the layoffs include attorneys, investigators and support staff.

The state faces a projected $1.2 billion shortfall in the $9.9 billion budget for the current fiscal year, now half over. The shortfall, largely due to the recession’s hit on state tax collections, is expected to rise.

Goddard’s office is budgeted for nearly 650 full-time equivalent positions, but it is not immediately known how many of those jobs may already be vacant.

Most of state government has been under a hiring freeze since last spring.

Because it is an office established under the Arizona Constitution, the attorney general does not fall under the direction of Gov. Janet Napolitano.

High court to hear challenge to state budget

PHOENIX—The Arizona Supreme Court agreed Tuesday to take at least a preliminary look at whether it’s legal for the state to require local governments to pay nearly $30 million to help keep the budget balanced.

The court said it will hear arguments on Jan. 20 on the special-action lawsuit by the League of Arizona Cities and Towns.

The league contends that a budget provision requiring municipalities and counties to pay $29.7 million violates the Arizona Constitution on grounds that two-thirds of each legislative chamber didn’t vote to increase state revenue.

The justices specified several issues they want attorneys to address. One is whether the court should even hear the suit because it wasn’t filed until more than four months after the budget was passed.