Newly Passed State Budget Bodes Ill For Navajo County

As of press time, the state budget was awaiting Governor Doug Ducey’s signature. It includes cuts to education funding and Medicaid funding, which will also impact local schools and hospitals.

Proponents of the budget claim that it reduces government spending and avoids increasing taxes.

Critics point out that it may cost taxpayers more in the long-term, and hurt the economy by putting higher education further out of reach and reducing healthcare options.

In any case, Jayne noted that as it currently stands, the budget will cost Navajo County an additional $273,000 beyond the existing state cuts. Under the terms of the budget deal, counties will be forced to pay one-fourth of the cost of housing juveniles at the Arizona Department of Juvenile Corrections (ADJC) and a portion of the operating costs of the Arizona Department of Revenue.

“Those are two departments that we have no control over the use of Navajo County’s checkbook to pay for,” Jayne said.

County staff, who have been following the budget process closely, estimate that it will cost the county approximately $173,000 over the course of the next fiscal year to house juveniles incarcerated at the state facility. Jayne explained that the county will pay 25 percent of the cost of every juvenile from Navajo County sentenced to the ADJC. He noted that the county has no authority over the expenditures made by the department, and cannot control or limit the costs, and cannot predict with certainty how many juveniles from Navajo County will be sentenced to the facility over the course of the fiscal year.

Staff also estimate that the county will have to fork over approximately $100,000 to pay a portion of the operating costs for the Arizona Department of Revenue. Jayne pointed out that, like juvenile corrections, Navajo County has no voice in how the department spends the money, but must pay a portion of the expenses regardless. The department recently overhauled sales tax reporting methods for businesses in a project deemed as “simplification” of the process, and took away the authority of cities to outsource sales tax audits. All such audits must now be performed by the department.

“They’ve come in and taken money from local government to help balance the state budget,” Jayne said. “They’re forcing the taxpayers of Navajo County to deal with the state not dealing with their structural deficit.”

According to Jayne, the money that the county will be forced to pay to the state will have to come out of the general fund. He noted that combined with increased state retirement contributions, rising health insurance costs and cuts already made by the state, the upcoming budget process will be difficult.

“We have some challenges ahead,” he said. “The bottom line is that it’s disappointing that the state still has not dealt with the structural deficit at a state level.”