Issue 2 - January 23, 2015 PRINT VERSION

Legislative Overview

This week saw minimal bill action related to municipal concerns. We expect that to change next week as agendas get more fully developed. Last Friday Governor Ducey released his budget proposal which is analyzed further in the article below.

To date there have been 665 bills introduced, with 39 memorials and resolutions. One bill has been signed, HB2064, the graduation requirement, civics test bill.

Governor's Budget Proposal

The Governor's budget proposal came out last Friday afternoon. Here is our analysis of the sections that most directly affect cities and towns.

Department of Revenue
  • TPT
    • A charge of $0.76 per resident for the non-program cities for temporary staff to implement TPT simplification. This equals $2.9 million. As of January 1, 2016, all cities are scheduled to become program cities.
    • An allocation of $8.2 million from cities' TPT shared revenue statewide for DOR operations. This is a permanent charge for administering cities' and towns' portion of DOR operations for TPT collections.
    • A charge of $2 million to create the DOR Collections Fund for additional collections staff. This money will come out of the base TPT revenues, before distribution to the state, counties and cities. The estimated impact to cities and towns is approximately $500,000. This is also permanent.
  • The Governor's budget assumes cities and towns will receive an additional $6.5 million in TPT revenue due to enhanced collections activities.
  • The Governor's proposal recommends using Motor Vehicle Registration Fees (which currently sends $35 million into HURF) to fund a portion of DPS as a permanent mechanism. The proposed budget allows the ADOT director to increase that fee to cover 50% of DPS operations.
  • The HURF diversion for FY2016 and FY2017 will be $54 million. In FY2015 it was $89 million.
  • The state will not appropriate $1 million to WIFA for the Water Supply Development Fund. There are other monies from other sources that still go to WIFA.
State Aviation Fund
  • The Governor's proposal transfers $15 million out of the State Aviation Fund to the general fund. The current balance is $37.5 million.
This link will take you to all of the Governor's budget documents.
Legislative Bulletin is published by the League of Arizona Cities and Towns.
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Issue 2 - January 23, 2015
Issue 2 - January 23, 2015
Issue 2 - January 23, 2015
Issue 2 - January 23, 2015
Issue 2 - January 23, 2015
Issue 2 - January 23, 2015