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PHX Reporter

Friday, September 27, 2024

Maricopa County approves FY 2025 budget with tax rate cut

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District 1 | Chairman Jack Sellers | Maricopa County

District 1 | Chairman Jack Sellers | Maricopa County

Maricopa County supervisors have approved a reduction in the property tax rate for the fourth consecutive year, while also decreasing the overall county budget by 11%. The final FY 2025 budget, which received unanimous approval today, underscores the Board’s commitment to alleviating financial pressures on families amid high prices and economic challenges.

“This is a budget that supports future growth and quality-of-life issues while guarding against the possibility of an economic downturn,” said Board of Supervisors Chairman Jack Sellers. “And because we have budgeted conservatively in the past, we can cut the tax rate and still make significant investments in high-priority areas such as public safety, election administration, workforce development, and heat relief.”

The budget's approval follows a legislative session addressing a statewide deficit. Despite reduced sales tax revenues across Arizona counties, Maricopa County’s conservative budgeting positions it favorably.

“I’m proud to vote for a budget that puts the taxpayers first,” said Vice Chairman Thomas Galvin. “We are taxing less and spending less this year, yet we are still providing our residents with exceptional customer service.”

The $3.87 billion county budget includes taxpayer protections. Unlike other counties taxing up to state law limits, Maricopa County’s tax levy is $257.1 million below maximum levels.

The primary property tax rate has been reduced for four years straight to 1.16 (or $116 on a $100,000 home), down from 1.4 in 2021.

Financial benefits are also noted from paying down unfunded pension liabilities over two years at low interest rates, reducing future costs for taxpayers.

“The budget we approved today provides great value to residents by investing in programs and projects that make our community safer and more economically and culturally vibrant," said Supervisor Bill Gates.

Maricopa County operates efficiently with spending under $1,000 per resident compared to higher expenditures in similar-sized counties. It maintains one of the lowest employee-to-resident ratios nationally at 3.3 employees per thousand residents.

Public safety funding comprises 47% of the overall budget covering essential services like law enforcement and courts. Additional funds are allocated for projected staffing needs in public safety sectors.

Heat relief remains a priority following record heat-related deaths in 2023. Nearly $14 million is allocated towards heat relief efforts including extended operation hours at relief sites.

All federal funds received post-pandemic from the American Rescue Plan Act (ARPA) have been allocated towards public health and economic recovery efforts totaling nearly $900 million.

“Maricopa County has been recognized as one of the best in nation at providing career advancement and workforce development opportunities,” said Supervisor Clint Hickman.

Supervisor Steve Gallardo highlighted continued funding for affordable housing, homelessness transition programs, career connections, education improvements, and public health infrastructure under FY 2025’s budget priorities.

Major capital projects funded include new facilities for animal shelters; substation projects; Public Health building; parks; library improvements; juvenile detention facility remodels; and construction of a downtown elections center with $29 million earmarked for supporting primary and general elections in Maricopa County this year.

Economist Jim Rounds remarked: "This has been the most formal, conservative, responsible practice that I've seen of any government entity."

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