County weighs sales-tax hike

County ponders ways to pay for courts, agencies

With public-safety services and programs taking up 51 percent of the fiscal 2014 budget, Maricopa County leaders are discussing a possible half-cent-per-dollar sales tax to provide more funding for agencies such as courts and law enforcement.

A half-cent-per-dollar sales tax is under discussion by Maricopa County leaders as they explore ways to provide additional funding for county public-safety programs.

The early talks have taken place internally, and there is no formal proposal or timeline on the table. The county would need legislative approval before levying a sales tax, but it is unclear whether the issue will come up in the 2014 legislative session.

In recent budget cycles, county officials expressed concerns regarding public-safety funding — including courts and law-enforcement agencies — and how to come up with sustainable ways to pay for services and programs.

The Board of Supervisors has cut its property-tax revenues and its budget in recent years. The board has not yet made any decisions regarding fiscal 2015 property-tax revenues.

Three of five county supervisors took office early this year. Fiscal 2015 will be their second budget cycle. The board plans to dive deeper into the county’s financial structure and will be holding strategic-planning meetings throughout December.

Public safety accounts for 51 percent of the county’s fiscal 2014 expenditures. The largest spending chunk after public-safety costs is far less: 22.66 percent for health, welfare and san-

itation. County supervisors repeatedly have said they prioritize public safety and the county’s statutory duties to its citizens to provide services ranging from county jail operations to probation programs.

Maricopa County’s tax revenues are made up of property taxes, a jail sales tax and carrental surcharges.

The county currently levies a voter-approved sales tax of one-fifth cent per dollar that voters approved in 2002 for jail facilities.

Maricopa County is the only Arizona county that must get legislative approval to levy a county general-fund sales tax.

State statutes allow counties with fewer than 1.5 million residents to levy a sales tax with the unanimous consent of the local board of supervisors. Most counties in the state have exercised this tax authority. Maricopa County has 3.8 million residents.

“There’s a lot of discussion going on about how we fund public safety in the future,” Maricopa County Manager Tom Manos said.

One of the topics of discussion centers on “what ifs and what could be” regarding the potential half-cent-per-dollar sales tax, Manos said.

Options include expanding the existing jail tax or creating a new, separate sales tax. County officials have not yet decided which option to pursue.

“Right now, what the jail tax can be used for is very restricted. It can basically be used for operating jails and for keeping people out of jails,” Manos said. “So, there has been some thinking that if the amount was increased, that we would look at a broader base of uses. But we don’t have a consensus on that.”

The Legislature authorized the county’s current jail tax to be used to construct, maintain, operate and renovate county jail facilities, and to pay for certain programs to “reduce the expense of adult and juvenile jail facilities.”

If county leaders decide to pursue a half-cent-per-dollar sales tax, residents may see a citizens committee being formed to evaluate public-safety needs and the existing funding structure. The Board of Supervisors already has approved a legislative agenda for 2014. If the board is going to “modify the agenda to include something like this, it has to be a public process,” Manos said.

More than 10 years ago, Sheriff Joe Arpaio supported asking voters to pay for new jails through the current jail tax. He said he believed it was necessary to build the new jails.

Arpaio now says that he would need to see the details of a potential new sales tax to fund the criminal-justice system before deciding whether to support it.

Arpaio agreed that publicsafety funding should be reviewed. If the county decides to move forward with planning for a potential sales tax, Arpaio said there needs to be transparency and voter education.

“We can’t let public safety suffer — that’s top priority for the people of this county, so something should be looked at,” Arpaio said.