MARICOPA OUTREACH MEETING 2013-090913.PPTX

51 s t 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 9 , 2 0 1 3

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
Hon. Lenore Stuart Hon. Jim Palmer Hon.Mary Rose Wilcox Hon. Mandy Metzger
Yuma County Graham County Maricopa County Coconino County
Third Vice-President Immediate Past President
Hon. Tommie Martin Vacant
Gila County Large County

CSA County Services
• Advocacy and Policy Development
• Arizona Legislature and Executive Agencies
• U.S. Congress and Federal Agencies
•Research and Informative Products
•Communication and Outreach
FY 2012-2013 Association Report: Includes select outcomes,
information products and support services.
CSA 2013 Legislative Summary: available at
www.countysupervisors.org

2012 CSA Summit – Sierra Vista, Cochise County
County Directives to CSA Staff:
• Budget #1 Priority
• Re-establish the share of Lottery revenues for all 15 Arizona
counties
• Eliminate county payments to the Arizona State Hospital for the
Sexually Violent Persons (SVP) population
• Restore the Local Government HURF, the primary revenue source
counties have in order to maintain, repair and build roads
• Advance client-initiated CSA-sponsored legislation
• Engage legislation that impacts county resources,
services or authorities

Getting the Message Out
Supervisors
to restore tell
• Counties mobilize to ST. Karen Posted: Warnick Friday, - December The 7, 2012 funds Legislature
communicate at their JOHNS — A Independent|2 resolution 5:00 am|Updated: 12:08 pm,
priorities implores December the 4th meeting passed by the Fri Dec 7, 2012.
hospitals for State to eliminate Board of Supervisors
revenues, prisoners, return sexually the violent county payments
. HURF money. and fully fund county’s the share of the to State
• Sustaining ongoing local state lottery
conversations with
decision-makers
• Coalition of
legislators and
stakeholders
hear a consistent,
resounding message

Lingering Effects of the Recession
Property values and revenue continue to decline as the state
budget impacts counties for a sixth year.
• Statewide NAV 6.66%
• Maricopa County’s NAV 6.62%

Final FY 13-14 Budget
On June 14, 2013, the Legislature passed a budget that included one of Governor
Brewer’s top priorities, Medicaid Expansion.
• The budget includes the following county-related provisions:
• SVP Payments: Reduces county payments from 50 percent of the SVP population housed at the
Arizona State Hospital to an estimated 35 percent, providing $1.8 million of relief. Includes
"flexibility language" allowing counties to pay via any county resource, HB 2010: health; welfare;
budget reconciliation; 2013-2014 (Pratt)
• Direct Appropriations to Counties (Lottery Revenue): Appropriates, from the State general fund,
$7,150,500 to 13 counties under 900,000 persons. Each qualifying county receives $550,000,
HB 2001: 2013-2014; general appropriations (Pratt)
• HURF to DPS: Continues to transfer $119 million from HURF to DPS and not-withstand the
statutory cap, HB 2001: 2013-2014; general appropriations (Pratt)
• Maricopa County Estimated Impact for FY 14: $8.6 million
• Maricopa County Estimated Aggregate Impact FY 09-FY 14: $48.7 million
• County Flexibility Language: Allows counties with fewer than 200,000 persons to use any source
of county revenue, to meet a county fiscal obligation for FY 2014, HB 2009: revenue; budget
reconciliation; 2013-2014 (Pratt)
Approximately $9 million in relief for FY 14

Final FY 13-14 Budget
In Millions
FY14 FY15 FY16
Ongoing Revenues $8,331 $8,744 $9,137
Ongoing Expenditures $8,776 $8,951 $9,136
Structural Balance/ $(446) $(208) $1
(Deficit)1
Carry Forward2 $697 $304 $97
One-time Capital $31 $0 $0
Outlay
Ending Balance / $304 $97 $98
(Deficit)
1 Excludes one-time revenues and expenditures and does not account for $450M in “rainy day” fund
2 FY14 Includes $84 million in fund transfers

State Budget Impacts FY08 – FY14
FY2008-FY2014 Budget Impacts
$120,000,000
$101.5M
$100,000,000
$80,000,000 $70.3M
$66.5M Mandated Contributions
$60,000,000 Program Shifts
$47.3M $51.3M
$42.3M Lost Revenue Streams
$40,000,000 HURF
$20,000,000 $7.0M
$0
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014
Statewide County
FY2008 - FY2014 Budget Impacts Maricopa
Impact
HURF Shifts ($115,432,270) ($48,704,843)
Lost Revenue Streams ($49,469,901) ($2,466,658)
Program Shifts ($91,202,342) ($60,270,738)
Mandated Contributions ($130,189,600) ($103,668,300)
Estimated Fiscal Impact ($386,294,113) ($215,110,539)

CSA Legislative Agenda
&
County-related Bills

CSA-sponsored Legislation
Enacted into law:
• HB 2138: municipalities; rights-of-way; transfer (Pratt) Ch. 127
• HB 2430: local health dept.; immunization; reimburse (Brophy McGee) Ch. 173
• SB 1098: medical marijuana; zoning authority (Pierce) Ch. 101
Did not advance through the process:
• HB 2124: fire districts reorganization elections (Ugenti)
• Held, Senate COW
• HB 2175: special districts; use fees (Fann)
• Held, Senate Government and Environment
• SB 1284: county general excise tax rate (Crandell)
• Held, House Ways and Means
General effective date: September 13, 2013, 90 days after sine die.

AACo’s Legislative Agenda
• HB 2347: tax levy; bond costs (Lesko) Ch. 188
• HB 2499: JTEDs; per pupil funding calculation (Goodale) Held, COW
• HB 2516: peace officers; firearms; court (Pierce) Ch. 177
• SB 1088: constables; prohibited acts (Burges) Vetoed
• SB 1089: arbitration bonds; discharge; application (Burges) Ch. 32
• SB 1216: clerk of court; duties; records (Burges) Ch. 45
• SB 1261: permanent early voting lists; amendments (Reagan) Held, COW
• Portions of this bill were amended into HB 2305 initiatives; filings; circulators (Farnsworth) during a
conference committee, it passed on reconsideration in the Senate and was signed by the Governor.
• SB 1315: property tax roll; corrections (Yarbrough) Held, COW
• SB 1416: new party; initiatives; signature collection (Reagan) Held, Rules
• SCR 1019: initiative, referendum; signature allocation (Reagan) Held, Rules

Other County Initiatives
CSA engaged other counties’ efforts, including:
• HB 2031: federal patent easements; counties; abandonment (Dial) Ch. 49
• Maricopa County
• HB 2212: legal holiday; counties; courts (Brophy McGee) Ch. 131
• Maricopa County
• HB 2551: OHV; use; authority; enforcement (Gowan) Ch. 231
• La Paz, Apache, Navajo, Graham, Greenlee and Gila counties
• HB 2594: local transportation assistance fund; restoration (Orr) Held, Approps.
• Yuma County, Associated General Contractors, cities
• SB 1273: alcohol; drug abuse; courts; treatment (Crandell) Held, Approps.
• Navajo County, Coconino County
• SB 1294: grand jury; length of term (Crandell) Ch. 46
• Navajo County, other stakeholders

CSA Reactive Advocacy
General General Government Government Criminal Criminal Justice Justice
-HURF -HURF diversions diversions & & future future transportation transportation funding funding -Municipal -Municipal law law enforcement enforcement decertification decertification
-County -County border border realignment realignment -ACJC -ACJC & & State State aid aid to to Indigent Indigent Defense Defense Fund Fund
-Regulatory -Regulatory reform reform -Arizona -Arizona Office Office of of the the Courts Courts & & funding funding
-Planning -Planning & & zoning zoning oversight; oversight; planned planned communities communities increase increase for for probation probation officer officer salaries salaries
-Elections -Elections & & initiative initiative reform reform -Restitution -Restitution liens liens on on vehicles vehicles
Public Public Finance Finance
-Transaction -Transaction Privilege Privilege Tax Tax (TPT) (TPT) reform reform
-Elected -Elected Officials Officials Retirement Retirement Plan Plan (EORP) (EORP) reform reform
-Secondary -Secondary district district levy levy & & expenditure expenditure limits limits
-Arizona -Arizona Fire Fire Districts Districts financial financial responsibility responsibility & & reporting reporting issues issues
Natural Natural Resources Resources Public Public Health Health
-Regional -Regional Water Water Augmentation Augmentation Authorities Authorities -Childhood -Childhood immunizations immunizations
-County -County comprehensive comprehensive plans plans & & forest forest -Food -Food allergies allergies
management management -Office -Office of of Pest Pest Management Management oversight oversight
-Illegal -Illegal dumping dumping penalties penalties -Public -Public intoxication intoxication in in border border communities communities

Legislation Amended by Counties
Bills favorably amended, to address county concerns:
• HB 2280: employee benefits; state preemption (Forese) Ch. 139
• HB 2443: cities; counties; regulatory review (Olson) Ch. 74
• HB 2572: financial standards; fire districts (Coleman) Ch. 232
• SB 1231: public buildings; construction; indemnity (Reagan) Ch. 238
• SB 1282: countywide FD; study committee (Crandell) Ch. 104E
• SB 1290: office of pest management (Griffin) Ch. 125
• SB 1365: planned communities; zoning; prohibitions (Murphy) Failed, House Gov.

Legislation Opposed by Counties
CSA opposed the following bills:
• HB 2311: restitution lien; vehicles; hearing (Farnsworth) Ch. 19
• HB 2331: bonding; taxation; expenditures; district limitations (Montenegro)
• Held, House Rules
• SB 1214: county treasurer’s management fund (Burges)
• Held, Senate Appropriations
• SB 1383: property tax limits; local districts (Melvin)
• Held, Senate Finance
• SB 1413: appeals; post-conviction relief (Murphy)
• Failed, House Judiciary 3-4-0
• SB 1463: counties; flood control districts; rules (Griffin)
• Held, House Government

2013 Vetoes
Governor Brewer has vetoed 26 bills this session:
• Five bills were vetoed due to a gubernatorial moratorium on signing any
bills before the legislature sent her a budget, including the Medicaid
Expansion
• County related vetoes are as follows:
• HB 2322: rule making; restrictions (Farnsworth)
• HB 2446: property tax; religious institution; exemption (Olson)
• HB 2481: permissible consumer fireworks; penalty (Stevens)
• HB 2578: licensing; accountability; penalties; exceeding regulation (Petersen)
• HB 2591: governmental reporting; websites; budgets (Petersen)
• SB 1088: constables; prohibited acts (Burges) Gov. Gov. Brewer’s Brewer’s Vetoes V
• SB 1371: municipal elections; ballot; disclosure (Griffin) Year Veto Count
2009 22 bills
2010 14 bills
2011 29 bills
2012 26 bills
2013 26 bills
*Greatest number of vetoes in Arizona
occurred in 2005, when 58 bills were
vetoed.

Summary
• Incremental progress on financial objectives resulted in
close to $9 million in relief for counties in FY 14.
• The legislative mix offered an improved environment to
address county concerns with legislation.
• Intra-chamber/inter-chamber animosity may linger, possibly
impacting the culture of the second regular session.
• The Governor and her staff continue to be responsive to
counties’ interests…but she has her priorities, too.
• “Divide and Conquer” continues to be a problem.
• “The Big Five”
• Political expedience at the expense of good policy
• “We’re the parent” attitude lingers

Next Steps
Connect with counties, stakeholders & legislators in preparation for
2014:
• CSA county outreach June through August
• Managers meetings in June and August
• Discuss potential initiatives and strategies
Monitor the State & Federal fiscal situation:
• Federal budget cuts impact PILT, SRS, SCAAP and other resources
• Potential lawsuits or ballot referenda regarding the Medicaid expansion
Participate in interim stakeholder meetings, including:
• HURF sweeps and transportation funding discussions
• Medicaid expansion implementation
• Ongoing discussions of Transaction Privilege Tax reform
• Ambulance service in rural Arizona
• AGC amendment to management at risk and design build
• Fire district study committee
• AG’s Post Conviction Relief process study

CSA Legislative Summary
Annual summary document is
now available on the
CSA website:
www.countysupervisors.org

Policy Development Process
Next steps:
• County legislative proposals due to CSA August 16, 2013
• CSA provided template; staff available to assist with evaluation
• CSA Board of Directors meeting, September 19, 2013
• CSA Legislative Policy Summit hosted by Gila County
• Payson, October 14-16, 2013