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Home Rule Option vs. Permanent Base Adjustment Tom Belshe GFOAz Training May 23,

HB2826 Consolidated Elections Law “ The legislature finds and determines that for the purposes of increasing voter participation and for decreasing the costs to the taxpayers it is a matter of statewide concern that all elections in this state be conducted on a limited number of days and, therefore, the legislature finds and declares that the holding of all elections on certain specific consolidated days is a matter of statewide concern. This section preempts all local laws, ordinances and charter provisions to the contrary.” 3

HB2826 Consolidated Elections Law “Beginning with elections held in 2014 and later and notwithstanding any other law or any charter or ordinance to the contrary, a candidate election held for or on behalf of any political subdivision of this state, other than a special election to fill a vacancy or a recall election may only be held on the following dates and only in even- numbered years: The tenth Tuesday before the first Tuesday after the first Monday in November (August) The first Tuesday after the first Monday in November. 4

Current Election Dates The second Tuesday in March. The third Tuesday in May. The tenth Tuesday before the first Tuesday after the first Monday in November. The first Tuesday after the first Monday in November. 5

Why Make the Change? Proponents claim: Voters confused by too many dates. Save costs by reducing number of elections. Too many finance issues decided in spring elections where there are fewer voters. 6

Political Reality Proponents Know: Voters are more conservative and focused on federal issues in the Fall. More likely to vote “no” on finance issues. Want to make municipal elections more partisan. 7

Issues Created Problems that arise: Ballot length. Serious undervoting. Uneducated voters on municipal issues. 8

Home Rule Option vs. Permanent Base Adjustment Election Date Options Permanent vs. Four-year renewals Flexibility 9

Election Options “This section does not apply to any political subdivision until the fiscal year immediately following the first regularly scheduled election after July 1, 1980 for the nomination or election of the members of the governing board of such political subdivision, except that a political subdivision, prior to the fiscal year during which the spending limitation would first become effective, may modify the expenditure limitation prescribed pursuant to subsection (1) of this section, by the provisions prescribed by subsections (2) and (6) of this section, or may adopt an alternative expenditure limitation pursuant to subsection (9) of this section.” Article IX, Section 20 of the Arizona State Constitution. 10

Election Options “(6) Any political subdivision may adjust the base limit by the affirmative vote of two-thirds of the members of the governing board or by initiative, …by a majority of the qualified electors voting at a regularly scheduled general election or at a nonpartisan election held for the nomination or election of the members of the governing board.” Article IX, Section 20 of the Arizona State Constitution. 11

Permanent vs. Four-Year Renewals Permanent Base Adjustment Permanent base adjustment is that if the base amount is set correctly you may never need to go back for an election again Adjustment is dollar amount over and above state expenditure Adjustment amount plus state expenditure limit are adjusted for population growth and inflation each year. Takes a lot more voter education 12

Permanent vs. Four-Year Renewals Home Rule Option Downside to Four-Year Renewal Cycle Easy to explain to voters More politically palatable 13

Flexibility Home Rule Option Basically just adopting your budget each year No need to know expenditure limit exemptions intimately Budget surprises easier to deal with Permanent Base Adjustment Exemptions become very important 14

Ease of Compliance Home Rule Option No need to calculate new limit each year No need to know expenditure limit exemptions intimately Budget surprises easier to deal with Permanent Base Adjustment Exemptions become very important 15

Transparency Project Update 16

Questions? 17

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