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State cuts in budget slap cities, counties: Expect fewer road upgrades as costs are trimmed locally
(Arizona Daily Star, The (Tucson) (KRT) Via Acquire Media NewsEdge) Jul. 5--Brace yourself for bumpier roads and other reduced services as local governments struggle with how to absorb millions of new cuts the state is making in Southern Arizona.
Already faced with shrinking revenues of their own because of the economic downturn, cities and counties in Arizona are complaining about millions of dollars in fund cuts and added fees the state has instituted on them to balance its own budget, passed by the Legislature late last month.
Though state lawmakers have touted the fact the bipartisan budget agreement avoided deep cuts and a statewide tax increase, it's on the local level where taxpayers may feel the real budget hits.
There are cuts in highway and road funding, added costs for local law enforcement, a potential influx of court cases from a new photo-radar program and even a required "donation" cities and counties must make to the state's general fund.
How all that affects daily services remains to be seen, but local governments are searching for areas to cut back -- starting with fewer road improvements.
"They're going to be blamed for our mistakes," said state Rep. Tom Prezelski, a Tucson Democrat who voted for the budget, saying the alternative was worst.
"We're shifting a lot to local governments and making them take responsibility for bad fiscal policy on the state level."
The state's new $9.9 billion budget went into effect last Tuesday.
Officials in Pima County, Tucson and surrounding communities are still calculating costs, but the county will take about $12 million in direct hits of state money. Statewide, counties expect to lose out on $74 million of state money.
Local officials say they are hoping to manage through the cuts without layoffs or major reductions in services.
"We're not doing layoffs, and we're trying to hold the line on public safety," said Martin Willett, chief deputy county administrator. Instead there will be hiring freezes and a near elimination of non-vital travel and purchases.
And rather than ask departments to make further cuts, the county will wait to see how the economy plays out and make adjustments later this year, said County Administrator Chuck Huckelberry.
For the city, officials did a good job projecting possible cuts, so much of the state reductions are already built into the 2009 budget, said Tucson Finance Director David Cormier.
But the single biggest issue local governments are citing is a cut in highway-fund dollars. For Pima County that amounts to $2.4 million out of a $48 million transportation budget, and the city is facing a $2.5 million cut.
Even Oro Valley will need to trim $200,000 in road costs normally paid by the state. And in the short term, that will mean a cutback on road maintenance.
"Some roads are right on the cusp of going to really bad shape," said Priscilla Cornelio, the county's director of transportation. "We need to maintain the condition of our roads or they'll start to deteriorate."
Counties across the state, including Pima, are also concerned about an expanded photo-radar program local officials say could end up costing them if speeders challenge their tickets in court.
The state budget requires the Department of Public Safety to contract with private companies to set up a network of photo-radar cameras throughout the state. But county officials said they'll be the ones stuck dealing with the tickets in court.
Gov. Janet Napolitano, who pushed for the plan, said because violators have to pay only a $165 fine, with no points assessed on their licenses, challenges will be minimal.
"The idea is that people will be more inclined simply to pay the tickets if they're not getting points," she said Wednesday.
Napolitano's office also pointed to a $4 million allocation given to the state Supreme Court that it says will help local counties pay for any administrative costs. However, those at the local level are not sure how that will affect their budgets.
"We don't know how exactly that's going to shake out," Willett said.
Nicole Stickler, executive director of the Arizona Association of Counties, agreed, saying, "It's just so up in the air."
The budget also requires Pima and Maricopa counties to pay $17.8 million in increased costs for long-term health care for their residents, funds that would otherwise be paid by the state.
Willett said that will cost Pima County $6.8 million. And the county is already paying $41 million out of its budget for the service.
There are other unknown costs. One provision of the budget requires cities and counties to "contribute" a total of nearly $30 million to the state general fund to balance the state's budget. The bill will come in August, and while most local governments are still trying to calculate their share, Pima County is expecting to pay the state $2 million.
"We understand the state is facing difficulties, but so are we," Stickler said.
The Department of Public Safety, meanwhile, will save about $7.8 million by requiring local police departments that use the agency's crime lab to reimburse it for its expenses.
Napolitano defended the budget against local complaints Wednesday, pointing out that such areas as urban revenue sharing -- which directs state dollars to the local level -- were protected.
"There were cuts all the way through this budget," Napolitano said. "This notion that this budget has simply papered over a deficit is simply inaccurate and wrong."
And local governments are celebrating some wins, like killing a plan that would have shifted offenders of lesser crimes from the state prison system to local jails, a $90 million projected cost to counties.
But overall, Ken Strobeck, executive director of the League of Arizona Cities and Towns, said, "When you total it up, it's probably one of the biggest hits to cities and towns in decades.
"This is not in isolation. They've already made cutbacks of their own," he said, referring to local governments.
--Contact reporter Daniel Scarpinato at 307-4339 or dscarpinato@azstarnet.com.
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Copyright (c) 2008, The Arizona Daily Star, Tucson
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