Assigned to APPROP FOR
COMMITTEE
Assigned to APPROP FOR
COMMITTEE
ARIZONA STATE SENATE
Fifty-Third Legislature, Second Regular Session
expenditure limitation; waiver of penalties.
Purpose
Waives penalties for excess expenditures of local revenues by La Paz County in Fiscal Years 2014 through 2018.
Background
On June 3, 1980, Arizona voters approved Arizona Constitution, Article IX, § 20, prescribing an expenditure limitation for each city and town. The expenditure limitation’s purpose is to control expenditures of local revenues and limit future increases in spending to adjustments for inflation and population growth.
Before state monies are withheld, the Auditor General must hold a hearing to determine if the city or town has exceeded the expenditure limitation without authorization. If the Auditor General determines that in any fiscal year a county has exceeded its expenditure limitation, the allowable levy of primary property taxes of the county shall be reduced in the fiscal year following the Auditor General's hearing by the amount of the expenditures that exceeded the county's expenditure limitation.
In FY 2018 the maximum allowable primary property tax levy for La Paz County is $5,094,018. The following chart indicates an estimate of amounts that the Auditor General could determine should be reduced in subsequent fiscal years:
|
Fiscal Year |
Expenditure Limitation |
*County Audited/Budgeted Actual GF Expenditures |
Expenditure Limitation Audited Actual Expenditures |
|
2014 |
12,262,934 |
14,229,836 |
-1,966,902 |
|
2015 |
12,191,795 |
15,185,324 |
-2,993,529 |
|
2016 |
12,559,098 |
13,691,881 |
-1,132,783 |
|
2017 |
12,718,467 |
13,673,896 |
-955,429 |
|
2018 |
12,924,154 |
|
|
|
Total |
-7,048,643 |
||
*Based on audited and budgeted actuals
There is no fiscal impact to the state General Fund associated with this legislation. However, there would be a local impact if the allowable levy of primary property taxes is reduced after the Auditor General's hearing.
Provisions
1. Waives penalties for excess expenditures of local revenues by La Paz County in Fiscal Years 2014 through 2018.
2. Requires La Paz County, within 10 months after the close of each fiscal year, to provide to the Legislature, a copy of all of the following:
a) its expenditure report.
b) its financial and compliance audit.
c) the notice of pending financial statement filing included in the published budget, if applicable.
3. Requires the chairperson of the Senate Finance Committee or the House of Representatives Ways and Means Committee, or their successor committee, to hold a hearing to determine compliance if the Speaker of the House of Representatives, the President of the Senate, the chairperson of the Senate Finance Committee or the chairperson of the House of Representatives Ways and Means Committee, determines that such a hearing is necessary.
4. Prohibits La Paz County from seeking a legislative waiver of penalties for excess expenditures of local revenues for a minimum of five years from the effective date of this act.
5. Becomes effective on the general effective date, retroactive to July 1, 2013.
Prepared by Senate Research
May 1, 2018
CS/lat