The main lobbying group for Arizona’s municipalities must suffering from a bit of whiplash today. For several weeks, the League of Arizona Cities and Towns has been waging a somewhat quiet but intense campaign to shut down a plan from a homebuilders’ group to freeze or scale back development impact fees to help the industry recover from the recession.

Well, Republicans leaders apparently got a different idea from the homebuilders proposal, as those lawmakers now want to seize the impact fees to help balance the state budget. An estimated $210 million would offer some relief from the pressure for a tax increase or to add to the state’s growing debts.

This is only the latest in a series of efforts by lawmakers to divert municipal revenues into state hands. Senate President Bob Burns, R-Peoria, has long wanted to reduce the amount of state-shared revenue that goes to bigger cities, as he believes those municipalities raise plenty of money on their own and the state should be using those funds elsewhere.

Then last year, the Legislature tried to order cities and counties to repay $29.7 million in state-shared revenues they already had  received to help balance the budget. Cities are quick to point out the state Supreme Court blocked that move in February. But the state Supreme Court didn’t say lawmakers couldn’t take the money. The Legislature just used the wrong procedure, at least in theory.

So there’s an open question as to whether the Legislature could seize local impact fees. But since that move likely would delay or cancel a number of capital construction projects (think roads, parks and fire stations), I doubt the Legislature actually will go through with this.

Posted in: Arizona Legislature • Arizona government • Arizona League of Cities and Towns • Home Builders Association of Central Arizona • impact fees |

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