P.L.A.N. Update - A Busy Legislative Week With More To Come‏

Bills, Bills, and More Bills

Friday was the 19th day of the Second Regular Session of the 49th Legislature. Every year the legislature attempts to complete its business in 100 days. Given the massive budget shortfall we certainly don't expect it this year, but it's an election year and anything could happen.

So far this session, 941 bills have been introduced. The deadline in the Senate to introduce bills is 5 p.m. on Monday, February 1 and the last day to introduce bills in the House of Representatives is Monday, February 8. Both chambers have posted this year's timelines for bill handling on the Arizona State Legislature website at Important Deadlines for the House of Representatives and Arizona State Senate Timelines.

Last week we shared some bills of interest that were scheduled for a hearing. Here's an update on their status:

SB 1166: Property Tax Classification; Historic Residences (Sen. Linda Gray, R-Glendale) was heard by the Senate Finance Committee on Wednesday. This bill would repeal the reduced property tax classification for historic residential property. Under current law, qualifying historic residences are assessed at 5% rather than the 10% assessment ratio that applies to other homes -- the effect would be to increase property taxes on those historic homes. After much testimony, the bill was held in committee.

HB 2161: Payday Loans; Regulation (Rep. Andy Tobin, R-Paulden) regulates the payday loan industry and authorizes continued operations beyond the current 2010 sunset date. This bill was held in the House Banking and Insurance Committee on Monday.

On Wednesday, the House Commerce Committee heard testimony on HB 2246: Regulation of Fireworks (Rep. Andy Biggs, R-Gilbert) a measure that would permit sales of “consumer fireworks.” The City’s Fire Marshal was on hand to testify against the bill, sharing Fire’s concerns on the increased risks to the community. After intense debate, the bill passed by a vote of 4 – 2. Next stop, House Rules Committee.

SB 1165: DUI; License Suspension (Sen. Linda Gray, R-Glendale) adds a number of dangerous drugs to the list of substances that are known to impair a driver and if found in a person's blood will lead to suspension of his or her drivers license. This bill has picked up support from many interests, including the Governor’s Office of Highway Safety. The bill passed out of the Public Safety and Human Services Committee on Thursday and will be heard next in Senate Rules.

Potential New Reductions in Bus, Rail, and Dial-A-Ride Services

In last week's message we described the Governor's budget proposal including a suggested "sweep" of lottery revenue that ordinarily would come to Phoenix to help pay for local bus, rail and Dial-a-Ride service. State law directs a portion of the proceeds from lottery sales to the Local Transportation Assistance Fund (LTAF) and Local Transportation Assistance Fund II (LTAF II). Each city or town in Arizona receives a share of these funds based on population. Phoenix receives approximately $7 million annually in LTAF and $2 – 4 million annually in LTAF II, where the dollars support operations for the core of the Valley-wide public transit system.

Public transit helps people (including those with disabilities) traveling to school, work, shopping, medical appointments and other necessary activities. If LTAF funds are swept by the legislature in FY 2011, Phoenix would have to eliminate two bus routes, the entire neighborhood circulator program, and reduce system-wide bus frequency. If LTAF II funds are also taken, Phoenix would have to reduce bus service frequency to once per hour after 8 p.m. and shorten the peak frequency bus service period by one hour system-wide.

Please let your legislator know to protect these funds so that that transit services will not be cut further.

Phoenix Trial Budget - Make Your Voice Heard

The City Manager's Trial Budget was released to the public Thursday afternoon. The Trial Budget provides the City Council and the community a proposed plan to balance the City's $241 million deficit through cuts to City programs and services. The Trial Budget can be viewed online at http://phoenix.gov/BUDGET/index.html.

The City Council will review the Trial Budget at its meeting on February 2nd. Then, between February 10th and 24th, the Council will hold community hearings so residents can provide input. Based on the feedback, the Council will adopt a final budget on March 2nd that will take effect on April 5th. The Schedule of Community Budget Hearings is posted online with the Trial Budget.

Remember to SHOP PHOENIX and tell your legislators to protect City revenues that pay for important services such as police, fire, libraries, parks and street maintenance. Thanks for all you do for our community.

Source: P.L.A.N.

P.L.A.N. Legislative Alert -- Historic Neighborhoods‏

SB 1166: Property Tax Classification; Historic Residences (Sen. Linda Gray, R - Glendale) -- This bill would repeal the reduced property tax classification for historic residential property. Under current law, qualifying historic residences are assessed at 5% rather than the 10% assessment ratio that applies to other homes -- the effect of this bill would be to increase property taxes on those historic homes.

There are approximately 6,000 homes in Arizona that qualify for this tax treatment; approximately 2,900 of them are in Phoenix. The City's Historic Preservation Office is recommending that the Mayor and Council oppose this bill.

Senate Finance Committee Member

Ken Cheuvront LD15
602-926-5325
kcheuvront@azleg.gov

Source: P.L.A.N

P.L.A.N. Update - Governor Brewer's Budget Plan‏

On Friday, Governor Brewer unveiled her budget strategy to address the $1.4 billon shortfall in FY 2010 and projected $3.2 billion deficit for FY 2011. The plan:

establishes a three-year temporary one-cent increase in the state sales tax (to be adopted by the Legislature rather than referred to voters)

reduces spending in various programs such as K-12 education, universities, and health care for low-income and disabled Arizonans;

eliminates KidsCare, cash assistance for certain low income families, and the Department of Juvenile Corrections, which would transfer its responsibilities to Arizona's counties;

implements a five percent, across-the-board pay cut for state employees; and

redirects lottery monies to the State's general fund.

The Governor's office explained that if the Legislature adopts the proposed temporary sales tax increase itself rather than referring the issue to voters the State could avoid approximately $263 million in cuts during the current fiscal year. This part of the Governor's plan would require a two-thirds majority vote of both houses of the Legislature.

Given our own Phoenix budget woes, the City is grateful that revenue sharing monies are not affected in the Governor’s proposal. The Governor also announced a $20 million grant program funded with federal stimulus dollars to pay for public safety positions in local government. Unfortunately the proposal does include a 100% sweep of Local Transportation Assistance Funds funded by the State lottery -- that sweep would result in an $8 million hit to Phoenix’s transit program that pays for local bus, rail, and Dial-A-Ride service.

Bills Of Interest Scheduled for Hearing Next Week

SB 1165: DUI; License Suspension (Sen. Linda Gray, R -- Glendale) adds a number of dangerous drugs to the list of substances that are known to impair a driver and if found in a person's blood will lead to suspension of his or her drivers license.

HB 2161: Payday Loans; Regulation (Rep. Andy Tobin, R -- Paulden) regulates the payday loan industry and authorizes continued operations beyond current 2010 sunset date.

HB 2246: Regulation of Fireworks (Rep. Andy Biggs, R -- Gilbert) allows sale and use of "consumer fireworks" by the general public.

Remember to SHOP PHOENIX and tell your legislators to protect City revenues that pay for important services such as police, fire, libraries, parks and street maintenance. Thanks for all you do for our community.

Source: P.L.A.N.

P.L.A.N. Update - A New Year, A New Legislative Session‏

Opening Day!

Monday, January 11 is Opening Day for the Second Regular Session of the 49th Legislature. Governor Brewer will deliver her State of the State Address at noon before a joint session of the legislature.

As of this message, 122 bills have been "prefiled" or introduced. We anticipate an avalanche of bills to be dropped in both chambers next week. So far, eight committee hearings have been scheduled over the first three days. To find the daily legislative calendar, go to ALIS Today. There, you can customize dates to select a specific range of dates.

On the financial front, the state still faces an estimated $1.5 billion shortfall in the current fiscal year, and a $3.4 billion shortfall for next year. If shared revenue for cities is discussed as an option to balance the state's budget, we'll alert PLAN subscribers to contact their legislators to help protect these monies that pay for police, fire, parks, libraries, and other important city programs.

We will also continue to keep you informed about issues that the legislature debates that affect your neighborhood. You are the very best advocate for your neighborhood and city and we appreciate the opportunity to help you be effective. Thank you for all you do.

Remember to SHOP PHOENIX and tell your legislators to protect city revenues!

Source: P.L.A.N.