april 19, 2011tucsonbudget

8/7/2019 April 19, 2011TucsonBudget

1/12

Governmental Relations

C. Mary Okoye

[email protected]


2/12

Tucson 2011 Legislative Agenda

1. Protect Shared Revenues and local and fiscalsustainability.

2. Protect local authority and decision making.

3. Urge the State Legislature to protect andenhance cities as economic drivers through

economic development tools and theinfrastructure needed to support a sustainableeconomy.


3/12

FY2012 Baseline S

ummary

State baseline revenue estimate is $8.31billion

Baseline spending is $9.28 billion; thebaseline shortfall is $975 million

The General Fund revenue diversion to thecities (urban revenue sharing) will decline

from $474 million in FY 2011 to $424 million inFY 2012 under the statutory formula.


4/12

The Deficit (Governors b

udget)

FY 2012 $1.15 billion Revenue Changes

Base Revenue Growth 490.0 M Loss of OneTime Revenues (494.7) M FY 2011 Ending Balance Adjustment (35.3) M

Total Revenue Change (39.9) M

Expenditure Changes Federal Funding Cliff (805.6) M Medicaid Population Growth (152.9) M School Facilities Board Debt (96.6) M 27th Payroll (81.0) M

Education Growth (55.8) M Other Agency Adjustments 14.2 M Education Property Tax Change 70.5 M

Total Expenditure Change (1,107.1) M

Shortfall (1,147.1) M


5/12

FY2012 B

udget

The Governor signed into law the Governor-House-Senate FY 2012 negotiated budget onWednesday, April 6th.

$8.3 billion budget cuts $1.1 billion

The budget collects approximately $7 million frommunicipalities

The largest hit to the cities is the red

uction inHURF distributions


6/12

KEY

FY

2012 changes are: $876 million to backfill the use of one-time Federal Funds for statutory

funding programs in FY 2011

$80 million for the one-time cost of an additional 2-week state employeepayroll occurring in FY 2012

-$171 million for lower-than-budgeted FY 2011 Medicaid caseload growthand provider rate reductions offset by 1.9% caseload growth in FY 2012

$55 million for k-12 formula growth

$97 million for higher School Facilities Board lease-purchase payments onpriorK-12 school construction

-$53 million in University savings due to the statutory requirement for a pay

reduction and furlough to begin in FY 2012 -$42 million in other savings, primarily due to the statutory end of the deposit

to the Land Conservation program and lease-purchase savings on stateoffice buildings.


7/12

HURF

shift, impact onTu

cson Tucson 2010 census population: 520,116

HURF: $34,277,618

State Budget HURF: $30,139,162 Difference: $4,138,456

State Budget DWR fee: $724,870

Hit to Tucson: $4,863,326


8/12

Session Ends?

We expect that the Legislature will sine die byThursday, April 21, 2011

Any bills that have not been transmitted to theGovernor when they end session will be dead

Bills that the Governor signs or has signed willbecome law 90 days after the last day of session


9/12

Obama Set to Sign FY2011 BudgetPackage Into Law

A compromise fiscal 2011 spending package is set to be quicklysigned into law by the president, after the House passed andthen the Senate cleared the carefully-crafted deal last Thursday.

The measure contains $38 billion in cuts. Of that amount about$20 billion will come from domestic discretionary programs and$17.8 billion will come from mandatory programs. Additionally,all domestic discretionary programs will have an additional 0.2percent cut.


10/12

F

ederal Budget Highlights

Community Development Block Grant: CDBG formula fundingis cut 16.2 percent, from $3.99 billion in FY 2010 to $3.343billion in FY 2011 (a $647 million cut).

HOME Investment Partnerships Program: Cut 12 percent

below the FY 2010 level of $1.825 billon, to $1.606 billion. Public Housing Capital Fund: Cut 18 percent below the FY

2010 level, to $2 billion.

Public Housing Operating Fund: Cut three percent below theFY 2010 level, to $4.6 billion.

Section 8 Tenant-Based Rental Assistance: Increased onepercent above the FY 2010 level, to $18.4 billion.

Homeless Assistance Grants: Increased two percent abovethe FY 2010 level, to $1.9 billion.


11/12

F

ederal Budget contin

ued

Energy Efficiency and Conservation Block Grants (EECBG):There is no funding in the FY 2011 bill for EECBG, a programauthorized at $2 billion annually to provide direct funding to citiesand counties for energy efficiency/conservation initiatives.

TIGER Grants: Cut 12 percent below the FY 2010 level of $600million, to $528 million.

High Speed Rail Grants: Eliminated. Was funded at $2.5 billion inFY 2010.

Federal Transit Administration: Funded at $10 billion, $710million below the FY 2010 level.


12/12

MoreF

ederal Budget items

EPA Brownfields Site Assessment andCleanup: Level funded at $100 million as

inFY

2010.

EPA Brownfields Assistance to theStates: Level funded at $49.5 million as inFY 2010.

april 19, 2011tucsonbudget

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