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52 nd Legislature, First Regular Session: Briefing to Maricopa County C r a i g A . S u l l i v a n E x e c u t i v e D i r e c t o r S e p t e m b e r 2 1 , 2 0 1 5 County Supervisors Association CSA’s Purpose: • CSA is a non-partisan forum for Arizona’s 61 county supervisors to address important issues facing local constituents, providing a mechanism to share information and to advance a proactive state and federal policy agenda Core Goals: • Protect and enhance county authorities and resources in order to promote efficient, responsive constituent services • Develop and disseminate information to assist state and local decision- making CSA Leadership CSA Board of Directors All 61 county supervisors from Arizona’s 15 counties CSA Executive Committee President President Elect First Vice-President Second Vice-President Third Vice-President Immediate Past President Hon. Clint Hickman Hon. Mandy Metzger Hon. Tommie Martin Hon. Anthony Smith Hon. Russell McCloud Hon. Jim Palmer Maricopa County Coconino County Gila County Pinal County Yuma County Graham County CSA Legislative Policy Committee Clint Hickman, Maricopa, CSA President Barry Weller, Apache Gary Watson, Mohave Ann English, Cochise Jason Whiting, Navajo Mandy Metzger, Coconino Ray Carroll, Pima Tommie Cline Martin, Gila Pete Rios, Pinal Jim Palmer, Graham Manny Ruiz, Santa Cruz David Gomez, Greenlee Tom Thurman, Yavapai D.L. Wilson, La Paz Russell McCloud, Yuma CSA County Services • Advocacy and Policy Development • Arizona Legislature & Executive Agencies • U.S. Congress and Federal Agencies • Research and Informative Products • Communication and Outreach FY 2014-2015 Association Report Includes select outcomes, information products and support services. CSA Legislative Summary Annual summary document is now available on the CSA website: www.countysupervisors.org The general effective date for bills was July 3, 2015. 5 2014 CSA Summit –Yavapai County County Directives to CSA Staff • Budget #1 Priority • Secure the county lottery revenues to support county operations • Fully fund HURF for local governments • Eliminate county payments for SVP patients at ASH • Advocate the need for enhancing revenues for transportation • Secure Payment-in-lieu of Taxes for 2015 and beyond • Advance client-initiated CSA-sponsored legislation • Engage legislation that impacts county resources, services or authorities 6 Getting the Message Out • Counties mobilize to communicate priorities • Sustain ongoing conversations with decision-makers • Legislators and stakeholders hear a consistent, resounding message 7 The Executive Budget “[I will] Submit legislation to reduce taxes every year, with the goal of eliminating “We will limit the growth of personal and corporate income taxes in government by limiting the spending Arizona.” of government.” -Ducey Campaign Website/Mailers/TV Ads -Ducey Campaign Nov. 4, 2014 “My Pledge to the People” 2014 "If you see us standing there behind [Governor Ducey], the legislative leadership team…and we're there in a unified mode, then I don't know why we can't solve that budget on a fairly rapid basis." “In the plainest terms, it’s not the -Senate President Andy Biggs December 2014 people are taxed too little; it’s that “My budget doesn’t just give the their government is spending appearance of spending discipline. It unwisely. Raise taxes and you offers the reality of spending haven’t solved anything. All that discipline-with decisions that are does is excuse the ineffective timely, real and permanent.” spending and invite more of it.” -Governor Ducey -Governor Ducey Inauguration Jan. 5, 2015 State of the State Jan. 12, 2015 8 State Budget: County Impacts County Budget Impacts: • 25% of the cost of ADJC $12 million • DOR local cost shift $6.7 million • Reflects $3.1 million reduction • 1% constitutional property tax cap liability shift $21.4 million • Loss of lottery revenue for Mohave, Pinal, & Yavapai $1.7 million • Presidential Preference Election cost shift $3.4 million • Additional HURF shift $1.4 million • Flexibility language 9 Transportation Advocacy • Briefed Executive Staff and legislators • Participated in multiple public/private stakeholder meetings • Met with transportation chairs, Senator Worsley and Representative Gray • Coordinated presentations before committees • Endorsed VLT (Vehicle License Tax) CSA Legislative Agenda & County-related Bills 11 CSA-sponsored Legislation Enacted into law: • HB 2349 flood control districts; administrative enforcement (Fann) Ch. 283 • SCM 1010 PILT program; SRS; full funding (Griffin) – Transmitted to SOS Administrative Solutions: • SB 1145 restoration to competency; state costs (Griffin) • Vetoed due to an administrative remedy • HB____court ordered evaluations; reimbursements (Brophy McGee) • Not introduced due to an administrative remedy Did not advance through the process: • HB 2363 county contributions; hospitalization; medical; repeal (Thorpe) • Passed House County and Municipal Affairs Committee • HB 2490 sexually violent persons; reimbursement; repeal (Carter) • Passed House County and Municipal Affairs Committee 12 AACo’s Legislative Agenda Enacted into law: • HB 2108 property tax; class nine; conventions (Mitchell) Ch. 233 • HB 2110 taxing district boundaries; deadline extensions (Mitchell) Ch. 98 • HB 2236 ATV & motorcycle passengers (Shope) Ch. 173 Did not advance through the process: • HB 2093 ballots; presidential electors (Coleman) • HB 2133 countywide elections; vote by mail (Shope) • HB 2163 intensive probation; community supervision; search (Borrelli) • HB 2187 JTED board; nomination petition signatures (Shope) • HB 2237 vehicle lights; emergency colors prohibited (Shope) • HB 2252 tax; delinquency dates; tax liens (Mitchell) • HB 2253 property tax assessments; one-year cycle (Mitchell) • HB 2391 early ballot mailing dates (Mesnard) • HB 2424 schools; regional service centers (Coleman) • HB 2485 tax lien foreclosures; subdivisions; exemption (Shope) 13 Other County Partner Initiatives CSA supported other partners efforts, including: • HB 2063 NOW: limited county employee merit system (Coleman) Ch.275 • Maricopa County • HB 2095 job-order-contracting; bond; waiver (Coleman) Ch. 203 • Maricopa County • HB 2105 inmate medical services; rate structure (Borrelli) Ch. 70 • Mohave County • SB 1393 delayed birth certificates; Native Americans (Begay) Ch. 197 /HB 2157 Native Americans; delayed birth certificates (Hale) • Coconino County 14 CSA Reactive Advocacy Criminal Justice General Government -Public building accessibility & weapon possession -Preemption of local control -Incompetent and dangerous defendants -Regulatory reform -Peace officer body cameras -Local lobbying regulation -Sheriffs’ police authority for search & seizure -County personnel systems -Traffic citation quotas and fines -Transfer of behavioral health from DHS to AHCCCS -PTSD and peace officers Public Finance & Special Districts -Secondary taxing districts -County fee exposures -Class 9 properties designation -Greenhouse classification -County audit deadlines / penalties -Tribal TPT revenue sharing Natural Resources Planning -State policy on wildfire containment & -Local housing preemptions prevention -De-annexation process -Sustainable water & forest management -Protected development rights -Wildlife management -Animal holding periods -Local & state concerns with federal land -Flood insurance 15 Legislation Amended by Counties Bills favorably amended, to address county concerns: • HB 2617 NOW: counties; municipalities; budgets (Mesnard) Ch. 323 • HB 2212 licensing; accountability; enforcement; exceeding regulation (Petersen) Ch. 104 • HB 2131 tax adjudications; attorney fees (Mitchell) Ch. 234 • HB 2383 NOW: invalid annexation; boundaries; procedures (Olson) Ch. 284 • HB 2561 unlawful distribution of private images (Mesnard) • HB 2643 sovereign authority; affordable care act (Olson) Ch. 321 • SB 1066 political subdivisions; financial audit reports (Pierce) Ch. 268 • SB 1072 local planning; residential housing; prohibitions (Smith) Ch. 140 16 Legislation Opposed by Counties 11 major issues: 9 negatively impacted local finances: • HB 2078 BOS; seven members (Petersen) • HB 2128 leased religious property; class nine (Mitchell) Ch. 49 • HB 2245 county floodplain regulations; mobile homes (Ackerly) • HB 2320 firearms; permit holders; public places (Barton) • HB 2427 precinct lists; early ballot reports (Barton) • SB 1071 tax lien deeds; aggregate fees (Smith) • SB 1204 property tax; assessment of greenhouses (Pierce) • SB 1298 rules; counties; flood control districts (Griffin) Ch. 86 • SB 1315 incompetent and dangerous defendants; treatment (Driggs) • SB 1433 utilities; facilities relocation; cost reimbursement (Lesko) • SB 1443 occupational disease; PTSD (Smith) 17 2015 Summary Budget process was extremely restricted • Rank and file members had little to no influence on the budget • Budget actions viewed as permanent: substantial impacts to counties • Budget negatively impacted all public stakeholders of the state Counties successfully blocked or amended most bad bills and made marginal improvements to budget via late session vehicles • Positive working relationship with most lawmakers State finances “stabilized”……for the moment • Pending Lawsuits: K-12 and Medicaid Expansion • Will revenues materialize as projected? • Enacted Budget FY2016 = 3.8% growth • FAC’s most recent projections = 3.7% growth 18 Federal Update • Payment in Lieu of Taxes (PILT) • State Criminal Alien Assistance Program (SCAAP) • Waters of the U.S. 19 Next Steps 20 Next Steps Connect with counties, stakeholders & legislators in preparation for 2016: • CSA county outreach May through August • Managers meetings in June and August • Discuss potential initiatives and strategies Monitor the state & federal fiscal situation: • Federal appropriations processes (PILT, SRS, SCAAP, etc.) • JLBC/OSPB visits to discuss state budget, identify emerging issues Conduct interim research and participate in stakeholder activities: • County RFP to house state inmates • 1% cap implementation; modification • Department of Juvenile Corrections • Retirement reform: policy position and advocacy materials • Transportation advocacy • County finances expenditure limit/resource authorities • Efficiencies in county criminal justice • Presidential Preference Election & technology improvement • Monitor 5 legislative study committees • County-submitted policy proposals 21 Policy Development Process Next steps: • CSA Legislative Policy Summit hosted by Mohave County • Lake Havasu City, October 13-15, 2015