P.L.A.N. Update - Moratorium Misinformation‏

Moratorium is No Benefit to Homeowners or the State

In the last few weeks, the Legislature has considered cities' impact fees as a source of revenue to help save the state budget. Thanks to many of you, that idea was not a part of the FY 2009 budget fix that passed this week (more below). Now, the notion of an impact fee moratorium is cropping up. Advocates of this idea would like to get out of paying impact fees until the economy improves. This idea is short-sighted and detrimental to both the community and the home builders who believe they would benefit:

Growth costs money! New development requires new infrastructure, such as roads, sewer and water treatment facilities, police and fire stations. Impact fees help to pay these costs.

Impact fees create the direct economic link between those paying for and those receiving benefits. This link promotes economic efficiency. The obvious direct economic benefits include the infrastructure investment, such as new roads and new water and sewer extensions. Indirect benefits include predictability in the marketplace, knowing when and where infrastructure investment will occur, and that all developers are treated impartially.

A moratorium penalizes the thousands of homeowners who have already paid impact fees, many of whom are trying to sell their homes.

If the state mandates a moratorium, the impact fees may go away, but the costs for needed infrastructure remain. Who pays these costs? Without impact fees, existing businesses and current homeowners would have to pay for the developers' infrastructure needs.

Growth should pay for itself -- homeowners in established areas shouldn't have to pay for public works that benefit only new areas. You can help block this attempt to shift costs from builders to existing homeowners and businesses by calling or e-mailing your legislator today.

Governor Signs '09 Budget Shortfall Remedy

On Wednesday, state lawmakers passed two bills aimed at closing the shortfall for the FY 2009 budget. The bills suspended a $300 million payment to K-12 education, tapped into $250 million in federal stimulus dollars, and delayed a $100 million disbursement to the universities in order to close a $650 million gap in the current fiscal year. The House Appropriations Committee adopted both HB2028; supplemental reductions; appropriations; FY 2008-2009 and HB2029; school district balances; allocations making these budget adjustments. The monumental task of solving the deficit of at least $3 billion now lies ahead. Both bills were quickly transmitted to the Senate, which adopted them as written, then sent them on to Governor Brewer. She signed both bills into law on Thursday.

"Understanding Your State Legislature" Workshops Well Attended

Thank you to the more than 100 people taking time to attend one of the two workshops this month. Government Relations hosted the second "Understanding Your State Legislature" Workshop on Monday, May 11 at the Burton Barr Central Library. More than 66 residents attended the meeting. Thanks also go to Senator Debbie McCune-Davis and Representatives Cloves Campbell, Robert Lujan and John McComish who answered questions and presented a legislative perspective to becoming involved in the legislative process. Government Relations staff presented "Lobbying 101."

Our city's budget for next fiscal year (July 2009-June 2010) was adopted in February and includes difficult cuts that impact services in our community. Remember to SHOP PHOENIX and tell your legislators to protect city revenues!

Source: P.L.A.N.

phoenix political blog, phoenix politics