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In the August 22, 2008 CSA Update:

Navajo County Thanks Legislative Delegation
 
Navajo County set aside time on Tuesday to thank their legislative delegation for the outstanding representation they provided to the residents and communities in the county during the last legislative session.  "The session was one of the most challenging the state has seen in many years," summarized Rod Ross, Navajo County Government Relations Administrator.  "Fortunately, we are represented by a delegation of lawmakers who understand the vital role that counties play in our state government and the statutory limitations they face.  We relied on each of these lawmakers to see us through the recent legislative session with as little harm as possible."
 
Navajo County's legislators provide leadership on a wide range of rural and tribal interests that are important to the county's citizens.  The county praised each of their legislators for providing representation for all parts of the county:
 
Senator Albert Hale: "As one of only two Navajos in the state legislature, Senator Hale has a keen understanding of the challenges and uncertainties faced by the residents of northern Navajo County.  Senator Hale has aggressively advocated for a greater allocation of resources to residents of the Nation and other Indian tribes, specifically through the investment of state dollars in telecommunications infrastructure, in the hope that this technology will facilitate an acceleration of economic development opportunities for residents and communities of the state's Indian tribes."
 
Representative Bill Konopnicki:  "Furthering his reputation as a champion for Arizona counties, Representative Konopnicki played a vital role in the recently-completed legislative session.  He laid the groundwork for some of CSA's most important legislative priorities, including serving as an important supporter of counties' opposition to the prisoner shift, the proposed caps on secondary taxing districts, and working to minimize the amount counties would be required to contribute to the budget deficit.  As a rural county, we are grateful for Mr. Konopnicki's stalwart and effective representation at the state Capitol."
 
Representative Jack Brown: "Navajo County is fortunate to be represented by one of the most respected and admired legislators in our state's history.  As the longest-serving state lawmaker at the Capitol, Representative Brown knows his way around a bad budget.  Throughout the session, he could be counted on to stand for rural counties' interests, and to calmly and with humor diffuse potentially tense and contentious situations.  Along with Representative Konopnicki, he was an early opponent of the prisoner shift and consistently supported rural counties in the budget negotiations.
 
Senator Sylvia Allen:  "Few lawmakers have had to take office in circumstances as emotionally and professionally wrenching as those encountered by Senator Allen after her appointment to the Senate in June.  As a personal friend of the late Senator Flake, she faced the challenge of having to simultaneously mourn his loss and carry on his work at the legislature...she did both with grace and skill, earning the respect and admiration of her fellow lawmakers.  Senator Allen cast a key vote on SB 1238, which allowed counties to enact fire bans in times of emergency; her support allowed the bill to move to the Governor for her consideration and, ultimately, approval."
 
Representative Tom Chabin, who is also a strong supporter of rural interests, was unable to attend the Navajo County presentation.
 

League of Arizona Cities and Towns Releases 2009 Priorities
 
At its annual conference in Paradise Valley this week, city officials outlined the priorities they plan to pursue through the League of Arizona Cities and Towns in 2009.  Due to the close cooperation of local governments in Arizona, many of the priorities also impact the operation of county governments.  CSA looks forward to continued partnership with the League to enhance local government interests at the state legislature.
 
Among the League's resolutions are a commitment to pursue affordable housing efforts, establish additional fees for voluminous public records requests, increase penalties for graffiti and expand publication of official documents from newspapers to websites.
 
Click here for the full resolutions packet.
 

Lottery Distributions to Change Under FY09 Budget Provisions
 
The Arizona Lottery Commission released a draft flow chart of the new funding distributions established by the state FY09 budget.  The budget amended the statutory structure of the Arizona Lottery to significantly restructure the funding flow of the Lottery by removing previous divisions that existed between income generated by various categories of games.  Revenues generated by all Lottery games will now be deposited in the Lottery Fund and will flow to Lottery beneficiaries according to the order in which they appear in statute.
 
Counties currently receive funding from three Lottery distributions, all of which are located at the top of the new funding structure.  LTAF dollars are designated for local transportation purposes, LTAF II provides funding for mass transit projects across the state, and the County Assistance Fund provides discretionary resources for each county general fund.
 
In addition, counties who have adopted a water adequacy ordinance (authorized last year by SB 1575) could receive loans from the Water Supply Development Revolving Fund, which is set to receive funding from the Lottery.  HB 2211 established a distribution "pot" that would appropriate up to $10 million per year if the lottery revenues reach their projected amounts.  (Note: counties could also benefit from grants issued by the State Forester through the Community Protection Initiative Fund, which will receive up to $3 million a year if anticipated Lottery revenue levels are reached.)
 
In hopes of generating additional revenues for the new Lottery recipients, the budget also eliminated a statutory cap that prohibited the Lottery from spending more than 4 percent of its revenues on advertising.
 
Click here for a chart of the new Lottery distribution flow, and click here for an outline of the previous distribution plan.
 

Local Governments to See Reduced DPS Crime Lab Costs
 
Local governments who had expressed strong opposition to a shift of costs for the state's Department of Public Safety crime lab were pleasantly surprised last week when Governor Napolitano announced that a large portion of the $7.8 million charge included in the FY09 budget would be offset by the use of $5.2 million in grant funds.  The funds will be distributed from the Gang & Immigration Intelligence Team Enforcement Mission (GIITEM) Fund.  (Click here to see the Governor's letter.)
 
The impact of this cost shift will still be $2.6 million to local governments, and DPS is not yet certain how the costs will be broken down between each entity.  They have assured local law enforcement that they will continue to search for additional grant funding in order to further reduce the costs.
 
In a speech to city officials this week, Governor Napolitano expressed her belief that this is not a one-year cost shift.  She urged local governments to work with DPS to identify a procedure to establish fees and cost-sharing mechanisms to fund the crime lab in the future.
 

Courts to Determine Status of Ballot Initiatives
 
It was an exciting week for those following the progress of on-again, off-again state ballot initiatives.  Ongoing problems with high signature invalidity rates continue to plague many of the citizen-driven initiatives, and numerous lawsuits will determine whether the following issues will be placed before voters in November's general election.  (Note: click here for a summary of each ballot initiative.)
 
T.I.M.E. Initiative: T.I.M.E. proponents have taken their case to the Arizona Supreme Court after a Maricopa County Superior Court judge ruled that the group waited too long to challenge Arizona Secretary of State Jan Brewer's determination that the initiative failed to obtain the required number of valid voter signatures.  If the Supreme Court overturns the Superior Court decision, T.I.M.E. backers could take additional steps to reinstate their initiative for the November ballot; an unfavorable ruling from the Supreme Court would be a final determination that T.I.M.E. ran out of time.
 
State Trust Land: Proponents of this state trust land reform proposal are following the path of T.I.M.E.'s battle, attempting to overturn a similar decision by the Secretary of State that the initiative failed to meet the valid signature threshold.  Since their arguments are closely aligned with the lawsuits filed by T.I.M.E., the Supreme Court ruling could directly impact their ability to bring their proposal back to life in time for the November election.
 
Affirmative Action: On Thursday, Secretary of State Jan Brewer added to the list of ballot initiatives that failed to meet signature requirements.  The proposal to ban affirmative action programs in Arizona obtained 194,961 valid signatures - short of the 230,047 needed to amend the state constitution.  The initiative's supporters plan to challenge the decision. 
 
The news is not all bad for those who brought forward initiatives: proposals to prohibit taxes on the sale of property, prohibit freedom of choice in healthcare plans, reauthorize the payday loan industry and amend the state's employer sanctions law have all qualified for the November ballot.  The Secretary of State is still evaluating signatures for Majority Rules, a proposal to set high thresholds for initiatives that increase tax or spending mandates.
 

Legislature Considers Qwest Settlement Impact 
 
The Joint Legislative Budget Committee (JLBC) met recently to consider the state's options for dealing with a $12.5 million payment the Arizona Department of Education (ADE) must make to fill a deficit left by the settlement with Qwest.  The settlement occurred after a lawsuit in which Qwest claimed their properties had been set at too high a value, thereby increasing the property taxes paid by the company.  The settlement reduced Qwest's property valuations for previous tax years and requires taxing jurisdictions to refund the resulting overcharges.
 
Counties and municipalities have had to fill deficits in their budgets caused by the settlement, and the state's $12.5 million will be directed to school districts that are required to reimburse Qwest for previous property tax payments.
 
Numerous members of the JLBC expressed concern that the $12.5 million payment would further exacerbate the ongoing state budget deficit, but said they understood there was little choice since the school districts were required to reimburse Qwest.  The Committee did not approve an actual appropriation of the funding; the JLBC is only authorized to approve staff recommendations for such expenditures.  The funding will likely come from funding already appropriated to ADE in the state FY09 budget; ADE may need to request additional funding as FY09 progresses. 
 

Calendar
 
Visit the CSA Calendar of Events at www.countysupervisors.org/calendar.
 
 
 
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