Local Expenditure Cap

State

Arizona

Year

2020

Limit Type

Revenue/Expenditure Limit

Limit Name

Local Expenditure Cap

Limit Description

Expenditure growth of counties, cities, and towns is limited to the annual increase in the cost of living and population growth. School districts shall limit their expenditures to adjust for changes in the student population and the cost of living, and multiply the adjusted result by 1.10.

Override Process

The limit may be exceeded by a 66⅔% vote of the governing body and majority vote of the electorate prior to the fiscal year in which the expenditure limitation is to be exceeded. Excess expenditures for school districts may be authorized by a 66⅔% vote in each house of the legislature for a single fiscal year or by a majority vote of the electorate within the district.

Record ID

AZ003_LM20

Footnotes

Cost of living is measured by the implicit price deflator for the gross national product. The legislature may adopt a different measure. Expenditure growth of community college districts is limited to the annual increase in the student population and the cost of living. The limit may be exceeded for expenditures necessitated by a disaster by a 66⅔% vote of the governing body if the governor declared an emergency or, if not so declared, by a 70% majority vote of the electorate.

Sources

A.R.S. Const. Art. IX, § 20 ~ § 21
Mullins, Daniel and Kimberly Cox.
1995.
Tax and Expenditures Limits on Local Governments, M-194, Washington, DC: Advisory Commission on Intergovernmental Relations.
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