ATRA in the News: Municipal and County Governments
"With the economic crisis facing Arizona serving as a painful reminder, Tucson taxpayers can be assured that, if approved, Proposition 200 will certainly force a tax increase at some future date," wrote McCarthy, who added that adopting spending programs via initiative tends to result in fiscal disasters.
By any measure, Proposition 200 will force increased spending that will either drive future tax increases or impact other city services. With the economic crisis facing Arizona serving as a painful reminder, Tucson taxpayers can be assured that, if approved, Proposition 200 will certainly force a tax increase at some future date.
The Arizona Tax Research Association, a business-backed lobbyist group, recently reported that districts began the current fiscal year with $329.8 million of money they legally couldn't spend. That's apart from money required for debt service and other legal purposes and obligations, the association said.
There are "hundreds" of similar deals draining cash from the state's general fund, according to Kevin McCarthy, president of the Arizona Tax Research Association in Phoenix. The Legislature appropriated $300 million in 2003 for expansion of the Phoenix Civic Plaza. "It still costs the state millions every year to help fund that project," McCarthy told us.