Governmental Relations

C. Mary Okoye
Okoye1@aol.com
Tucson 2011 Legislative Agenda
 1. Protect Shared Revenues and local and fiscal
sustainability.

 2. Protect local authority and decision making.

 3. Urge the State Legislature to protect and

enhance cities as economic drivers through
economic development tools and the
infrastructure needed to support a sustainable
economy.
FY 2012 Baseline Summary
 State baseline revenue estimate is $8.31 billion
 Baseline spending is $9.28 billion; the baseline
shortfall is $975 million
 The General Fund revenue diversion to the
cities (urban revenue sharing) will decline
from $474 million in FY 2011 to $424 million in
FY 2012 under the statutory formula.
The Deficit (Governor’s budget)
 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
FY 2012 Budget
 The Governor signed into law the Governor-
House-Senate FY 2012 negotiated budget on
Wednesday, April 6th.
 $8.3 billion budget cuts $1.1 billion
 The budget collects approximately $7 million
from municipalities
 The largest hit to the cities is the reduction in
HURF distributions
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 employee
payroll occurring in FY 2012
 -$171 million for lower-than-budgeted FY 2011 Medicaid caseload growth
and 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 on
prior K-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
state office buildings.
HURF shift, impact on Tucson
 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
Session Ends…?

 We expect that the Legislature will sine die by

Thursday, April 21, 2011

 Any bills that have not been transmitted to the

Governor when they end session will be dead

 Bills that the Governor signs or has signed will

become law 90 days after the last day of session

 
Obama Set to Sign FY2011 Budget
Package Into Law

 A compromise fiscal 2011 spending package is set to be quickly

signed into law by the president, after the House passed and
then 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 0.2
percent cut.
Federal Budget Highlights
 Community Development Block Grant: CDBG formula
funding is cut 16.2 percent, from $3.99 billion in FY 2010 to
$3.343 billion 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 the
FY 2010 level, to $4.6 billion.
 Section 8 Tenant-Based Rental Assistance: Increased one
percent above the FY 2010 level, to $18.4 billion.
 Homeless Assistance Grants: Increased two percent above the
FY 2010 level, to $1.9 billion.
Federal Budget continued
 Energy Efficiency and Conservation Block Grants (EECBG):
There is no funding in the FY 2011 bill for EECBG, a program
authorized at $2 billion annually to provide direct funding to
cities and counties for energy efficiency/conservation initiatives.

 TIGER Grants: Cut 12 percent below the FY 2010 level of $600

million, to $528 million.

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

in FY 2010.

 Federal Transit Administration: Funded at $10 billion, $710

million below the FY 2010 level.
More Federal Budget items
 EPA Brownfields Site Assessment and
Cleanup: Level funded at $100 million as
in FY 2010.

 EPA Brownfields Assistance to the States:

Level funded at $49.5 million as in FY 2010.