Update – Monday, March 15

On March 11, the Legislature, in its 7th Special Session, passed out most of the Fiscal Year 2010-11 budget. The House was able to successfully pass all of the bills associated with the budget package while the Senate stopped 2 bills short. The Senate is working this week to get to the necessary two-thirds vote to pass the portion of the budget related to repealing a tax preparation tax credit for businesses and a referral to ask the voters to repeal the First Things First program to free up some cash for the state. Click here if you would like to review the FY 2010-11 budget bills and their summaries.

The original proposed budget contained provisions that would have shifted $20 million of state shared revenue from cities and towns to the counties to fund juvenile corrections. Through a lot of hard work, that provision was successfully defeated meaning that state shared revenue will be preserved. We want to thank each of you who contacted your legislators to express how important these dollars are to funding critical city services.

Unfortunately, a provision was included in the budget package that permanently eliminates the Local Transportation Assistance Fund (LTAF) and LTAF II and sweeps those funds to the state general fund. These funds were established as a commitment to the voters when they authorized the state lottery. The LTAF funds are used to provide federally required transit services such as dial-a-ride. Glendale’s share of LTAF funds amounts to approximately $1.6 million.

We are currently working with other cities and legislators to identify ways to restore the LTAF program and funds. Please contact your legislators and let them know that the LTAF program needs to be restored. Follow this link for a roster of Glendale’s legislative delegation and their contact information.

A Message from Mayor Scruggs Regarding State Budget Impacts to the City of Glendale

State budget recommendations under consideration by Arizona Senators and Representatives right now will have very negative impacts on all cities and towns. Following is information about how Arizona’s state budget ties into the budgets of all 90 Arizona cities and towns; what actions the state legislators are considering and the consequences of those actions on your Glendale services; and how you can let Arizona legislators know your feelings about these crucial matters.

On March 9, the Arizona legislature went into its seventh special session to look for additional solutions to close their $3 billion budget deficit. Just as the state is struggling to balance its budget in these difficult times, so are cities, towns and counties across Arizona.

For instance, Glendale just released our 2011 budget proposal which aims to close a budget deficit of $14.7 million. As required by State law, Glendale must have a balanced budget. The city recently held three public meetings to seek feedback from residents. The City Council will use all of the public input to help make its decision in approving the final budget beginning March 23.

Key in both the state and city budget discussion are State Shared Revenues*. In 1972, a citizen’s initiative was passed which required the state to “share” tax collections with cities and towns based on population. State Shared Revenues are vital to Glendale’s budget and make up 39% of our $155 million operating budget. Even the slightest reduction in the distribution formula will have a negative impact on Glendale‘s ability to provide services to our citizens such as libraries, parks, and public safety programs.
For reference, Shared Revenues make up a similar portion of the budgets of all cities and towns, with the percentages even higher in communities which do not have a diversified tax base of their own. All cities and towns are protesting state budget actions which affect cities and towns.

Glendale is not addressing revenue shortfalls with a tax increase but rather through elimination of vacant positions, employee furloughs, organizational realignment, and program and service adjustments based on demand.