P.L.A.N. Update - Cities to Pay for State Buildings?‏

Legislature Takes on a Mountain of Bills

The pace is picking up at the State Legislature, with introduction of hundreds of bills this week. Committees are holding hearings and working hard to sort through all of the proposed legislation. Not every measure that is introduced will get a hearing -- legislative leaders and committee chairman must prioritize to make the most of the short time that is allowed for hearing bills. You can take a look at the bills and committee agendas on the Legislature's website, at www.azleg.gov/CommitteeAgendas.asp

City Revenue Diverted to Pay For State Buildings?

Among the bills introduced this week is one we hope doesn't make the list. Senate Bill 1221: Urban Revenue Sharing; Distribution Freeze (Sen. Steve Pierce, R-Prescott), puts a cap on the amount of revenue sharing from state income tax at fiscal year 2010 levels for the next 20 years. Future annual tax collections over the 2010 amount would be kept by the State and used to pay some of the State's financial obligations, including the debt service for the state buildings that were sold with a lease buyback agreement last year.

Shared revenues are a voter-approved system in which the state shares a small percentage of its income, sales and vehicle license taxes with Arizona’s 91 cities and towns. In return, cities are prohibited from having their own local income taxes.

Senate Bill 1221 not only violates the will of the voters, but shifts monies that are used to help pay for police, fire, parks and library services to the state for them to buy back the buildings they sold in 2010.

Feel free to contact your state legislators with your opinion of SB 1221.

Source: P.L.A.N.