EV cities, counties balk at state contributions

The Joint Legislative Budget Committee has released estimates of what each Arizona city and county is required to contribute to the state budget under a provision the Arizona League of Cities and Towns claims is unconstitutional.

The state's already-stretched political subdivisions are instructed to contribute a combined $29.7 million to the state general fund, in a section of the budget bill that didn't become general knowledge among local officials until after Gov. Janet Napolitano signed the budget at the end of June.

Napolitano spokeswoman Shiloh Mitchell said the provision arose during negotiations between the governor's office and legislative leaders as one of many measures needed to contain a deficit that had grown to nearly $2 billion.

"Basically, everybody in the state definitely is feeling the pain from the state budget," she said.

The provision apparently came as a surprise to some top legislative leaders as well. Barrett Marson, spokesman for state Speaker of the House Jim Weiers, R-Phoenix, said Weiers wasn't aware of the provision until after the fact.

"The speaker is totally opposed to what was done, and it's likely to be found illegal in state court," he said. "It never should have been done."

Ken Strobeck, executive director of the Arizona League of Cities and Towns, said this week a legal team representing the league has met with representatives of the governor's office to make its case, and a similar meeting with state representatives should happen in the next few weeks.

No legal complaint has been filed.

He contends the budget provision violates a voter initiative which requires a two-thirds vote before the Legislature can reduce the amount of tax revenue it shares with cities and towns.

The state budget got past the House by a single vote.

The legislation directs the JLBC to divide the nearly $30 million contribution among the state's 15 counties and 90 municipalities under the same formula used to distribute gas taxes collected for the Highway User Revenue Fund, and notify them of the totals by Aug. 31. The figures were sent to the offices of Weiers and Senate President Tim Bee, R-Tucson.

Gilbert Town Manager George Pettit said he received the budget information from the league Wednesday, and the town's required contribution of $558,985 was in line with what he expected.

But he hadn't begun the process of determining where the money would come from because he feels the league has a strong legal case.

He said the required contribution was a major topic of discussion last week during the Arizona league's annual conference, held in Paradise Valley, framed by the grim budget numbers officials have been dealing with.

"Nobody is healthy right now, and to have another $30 million on already tight budgets, that are not growing, is obviously something people are concerned about, and talk about," hesaid.

As the East Valley's largest city, Mesa is the hardest hit, with the state asking it for $1.7 million.

Scott Butler, the city's government relations director, said officials there aren't planning to hand it over any time soon, either.

He said the instructions the city has gotten from the league's attorneys are that "if an invoice comes to not pay that amount until this issue is resolved so we're standing by that," he said.

But in the end, Butler said, "we do expect to be able to come to a resolution with the state, through some process."

Budget contributions

Expected contributions to the state budget from East Valley counties and cities:

Maricopa County $4,681,991

Pinal County $774,729

Apache Junction $152,979

Chandler $718,668

Florence $36,976

Gilbert $558,985

Mesa $1,724,036

Phoenix $5,678,351

Scottsdale $730,718

Tempe $516,098