David Luna
Allow me to take this opportunity to clarify confusion I’ve been hearing within District 5 about Home Rule, or what is officially known as the Locally Controlled Alternative Expenditure.
This important authorization allows the city to control its own financial destiny and be accountable to our residents for a balanced budget. The following questions and answers should help clarify the issue.
What is Home Rule?
Home Rule is a voter-approved authorization for the City of Mesa to set its own balanced budget through 2023 versus following a state expenditure limit.
What is the state expenditure limit?
The state expenditure limit uses a formula to establish a budget cap based on 1979 data adjusted for inflation and population. It limits local government expenditures to the formula regardless of the actual revenues received.
Why is this on the ballot?
State law requires the renewal of this alternative spending authorization every four years. The City Council directed staff to study the potential effects of the spending limit and to recommend action. Staff recommended a renewal of Home Rule based on a detailed review of general fund operations and expenditure forecasts.
Why doesn’t the state expenditure limit work for the City of Mesa?
While there are numerous reasons why the state expenditure limit is less than ideal for the City, three key factors are:
- The state expenditure limit formula uses adjustments for population and inflation based on national trends. Mesa’s population growth and economy grew at a faster pace than national indicators through the 1980s, 1990s and into 2000, making these factors less than adequate to address the city’s actual growth.
- There are voter-approved tax revenue sources that the formula does not anticipate, such as the Quality of Life and Local Streets sales tax and Proposition 400 regional transportation tax. These fund sources must be available to provide residents with the services they approved.
- Environmental mandates placed on the city, such as the Clean Water Act, the Safe Drinking Water Act and the Clean Air Act, cause costs to rise faster than a simple inflation-based formula. In addition, security mandates following the events of Sept. 11, 2001, have significantly impacted the budget.
What happens if home rule is not renewed?
If home rule is not renewed, the state-imposed limits would require the city to cut approximately $200 million from its budget, which would reduce the eligible expenses by nearly 42 percent, impacting all city departments, including public safety.
This is why it so important to vote Yes on Question 1 on Nov. 6.
As always, I am available for any questions or concerns you may have for District 5. Contact me via email at District5@MesaAZ.gov or via phone at (480) 644-3771.