A Question of Fiscal Discipline

By Mary Hamway

In 1980 the Arizona Legislature gave citizens a powerful say in how their local governments grow and spend monies, and that is a very good thing. On your ballot in the upcoming election, Proposition 426 asks you to permanently increase Paradise Valley’s annual expenditure limitation by roughly $20 million. This is more than a 40% increase over the current budget in spending capacity! I am recommending a NO vote on Proposition 426. This is not a vote against infrastructure, public safety, responsible municipal services or hiring staff. It is a vote in support of fiscal discipline.

The Town says Proposition 426 would not raise taxes. This is true because we don’t have a local tax to raise, but more importantly, it misleads the voter and misses the point completely. A spending limit exists for a reason: to impose fiscal discipline and force elected officials to establish priorities. The expenditure limit is not the enemy of good government, but is one of the safeguards that helps make good government accountable. 

Each year the state automatically adjusts the expenditure limitation to address inflation, a growing population, and if requested, when adding new services. However, Paradise Valley hasn’t added any new services and our population changes less than 1% each year, so why the need to spend an additional $20 million dollars annually? The Town’s FY2027 budget identifies substantial financial resources, and before increasing the expenditure limitation, the Town should demonstrate why other financing mechanisms cannot adequately address its needs.

There is a second proposition on the ballot, Prop 427, which creates a Capital Projects Accumulation Fund that I am encouraging residents to vote YES on. This is a separate account, funded by surplus revenues and used specifically for capital projects such as sewer repairs, storm water management, infrastructure improvements and public safety facilities and equipment. And, it is exempt from the expenditure limitation. 

Before granting future councils substantially more spending capacity, voters need a compelling explanation of why existing tools are insufficient.

Please join me in voting No on Proposition 426 and Yes on Proposition 427.  

Mary Hamway is a former Paradise Valley Town Councilwoman