Santa Cruz County officials will host a presentation on Wednesday at 5:30 p.m. at the county complex in Nogales to explain the ramifications of Proposition 417, which, if approved, would raise the county’s state-imposed spending limit.
The November ballot measure will ask voters to approve a permanent $1.5 million increase to the county’s expenditure base, beginning in fiscal year 2027-28. County officials say the formula for determining its annual spending limit is outdated and has become increasingly difficult to work with as the cost of providing services grows higher.
The county’s current budget is $156 million, while its spending limitation is $30.4 million. While certain expenditures are exempt, many core services count toward the cap. By adjusting the base limit, which was established in 1980, the county’s spending capacity would increase to $50.2 million, starting next fiscal year (July 1, 2027), and would be adjusted annually based on population and inflation.
While the new limit would give the board the authority to spend up to that amount, it would not be automatic, and it would not increase property taxes, sales taxes or create new fees. Spending within the adjusted limit would increase only as additional revenues become available. The County would still be required to operate with a balanced budget set by the Board of Supervisors each year.
Multiple Arizona counties have recently adjusted their expenditure base, including Yavapai and Coconino. Pima and Yuma counties also have spending limit measures on the ballot in November.
The county has created a webpage explaining its rationale for increasing the spending limit. Among its key points are:
- Over the past years, state-collected sales taxes shared with the county increased an average of 7.2 percent per year, while the expenditure limit increased an average of 3.5 percent per year. As revenues continue to increase, which is anticipated with the South32 Hermosa Project coming online, the county would not be permitted to spend the additional revenues.
- The County’s operating costs have grown faster than the formula’s population-and-inflation growth factor. According to the website: “The formula does not account for changes in service expectations, modern public safety equipment and technology, local construction and labor costs, infrastructure demands, regulatory requirements that did not exist in 1980, and cross-border population that impacts services.”
The county said that if the proposition approved, the additional spending authority could optimize existing county services and allow investments in capital projects. If voted down, the county said, it could make it more difficult to maintain essential services as the population grows.
The presentation will be held in the Board of Supervisors meeting room at the Santa Cruz County Complex, 2150 N. Congress Drive, and is scheduled from 5:30 to 6:30 p.m. It can also be viewed on the county’s YouTube channel.