State vehicle tax plan would deal QC another fiscal blow
url=http://www.azcentral.com/community/pinal/articles/2009/06/10/20090610qc-platefees0612-CP.html
Alia Beard Rau - Jun. 10, 2009 07:26 AM
The Arizona Republic
Gilbert stands to lose $1.2 million - and have that much less money for road work - under a Legislative plan to give some vehicle license tax revenue to the school districts. Queen Creek would lose about $119,000.
Legislators want municipalities to give 21 percent of next year's vehicle license tax revenue to local school districts. The proposal is part of the 2009-10 state budget approved by state legislators but not yet even formally submitted to Gov. Jan Brewer, who has threatened a veto.
The League of Arizona Cities and Towns estimates it will cost Arizona cities and towns a total $42 million in the fiscal year beginning July 1.
Gilbert and Queen Creek use revenue from the vehicle license tax for street repairs and maintenance. Transportation ranks as top concern in the town's annual poll of Gilbert residents' attitude toward municipal services.
Gilbert had already cut its streets fund budget by about $1.4 million. The town is receiving $5.3 million in federal stimulus money, which will go into this account to pay for the town's road mill and overlay program.
Gilbert Town Manager George Pettit said the Legislature's plan will also mean even less money for sidewalk repairs handicap ramp replacement.
Queen Creek officials also bemoaned the plan.
"This impacts our ability to repair or roads that are cracking or have potholes," Queen Creek Town Manager John Kross said. "That preventative maintenance saves communities in the long-run from the very big expenses of having to rip out a road completely."
Ken Strobeck, executive director for the League of Arizona Cities and Towns, said the legislature is making cities responsible for funding education instead of raising taxes at the state level.
"It's highly likely that it's unconstitutional in that it alleviates a responsibility that the General Fund would otherwise be responsible for, to pay for schools," he said. "Schools are not a city responsibility."
Rep. Laurin Hendrix, R-Gilbert, said he doesn't believe the vehicle license tax transfer will have a big impact on Gilbert.
"It amounts to about $1.2 out of a billion dollar budget," he said. "I don't think that amount is going to mean that we're going to have to close the roads and turn off the stoplights."
He said economic conditions require sacrifice on everyone's part.
"I know nobody likes to have money taken away but times are tough," he said.
Rep. Steven Yarbrough, a Chandler Republican whose district includes Queen Creek, agreed.
"It's not to suggest that cities and counties are not struggling significantly with the ramifications of the revenue loss, but state revenue is down somewhere between 30 percent and 40 percent," he said. "To ask these folks to participate was something that seemed necessary."
Last edited on Thu Jun 11th, 2009 03:29 am by
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