A question on fiscal discipline in Paradise Valley
OPINION — 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.
Proposition 426 asks you to permanently increase Paradise Valley’s annual expenditure limitation by roughly $20 million, more than a 40% increase over the current budget in spending capacity. I am recommending a no vote. This is not a vote against infrastructure, public safety, responsible municipal services or hiring staff, but in support of fiscal discipline.
The town says Proposition 426 would not raise taxes. True, because we don’t have local taxes to raise. But 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 isn’t the enemy of good government, it’s a safeguard that helps make good government accountable.
Each year the state automatically adjusts the expenditure limitation to address inflation, population and, if requested, when adding new services. Paradise Valley hasn’t added new services and our population changes less than 1% each year, so why the need to spend an additional $20 million annually? The Town’s FY2027 budget identifies substantial financial resources. 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.
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.
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