Urban revenue sharing; public safety
Under this new bill, the allocation of funds will be distributed among incorporated cities and towns based on their population. Essentially, each municipality will receive a share proportional to its population relative to the state as a whole. A minimum amount is guaranteed for smaller towns with populations of at least 1,500, ensuring that even smaller communities benefit from the urban revenue sharing fund. This revenue model is designed to enhance financial support for public services primarily related to public safety.
House Bill 2375 aims to amend section 43-206 of the Arizona Revised Statutes to revise the urban revenue sharing fund, primarily focusing on the distribution of state income taxes to incorporated cities and towns. The bill specifies that through the fiscal year 2022-2023, the fund will consist of an amount equal to 15% of the net proceeds of state income taxes from two years prior. Starting in fiscal year 2023-2024, this percentage will increase to 18%, which is expected to provide greater financial resources to local municipalities.
The bill includes provisions that stipulate that beginning in fiscal year 2023-2024, all funds distributed through this program must be allocated specifically for public safety services. This designation could lead to contention, as municipalities may face constraints that limit the flexibility with which they can use these funds. Moreover, any unauthorized use of the funds will result in future withholding of the amount spent incorrectly. This raises concerns among local government officials about the potential impacts on community programs and services outside of public safety.
Furthermore, the legislation includes measures for withholding funds under specific circumstances, such as if a local governing body is found to be in violation of state laws or if they default on financial commitments, which could impose strict conditions on the funding provided to cities and towns. Such stipulations could affect the autonomy of local governments and may lead to disagreements between state authorities and municipalities regarding compliance and funding usage.