Yuma County staff recommends voter ballot measure to raise 1980-based spending cap under Arizona Constitution

County finance staff warned the Yuma County Board of Supervisors on Jan. 22 that the county is nearing — and may exceed — the expenditure limitation set by Article IX, Section 20 of the Arizona Constitution unless voters approve an adjustment to the 1980 base amount used in the state—s formula.

Humberto (Beto), a county staff presenter, told the board the state—s Economic Estimates Commission calculates each county—s annual limit by multiplying a 1980 base figure by population and inflation factors. He said Yuma—s 1980 base for that formula was $9,580,000 and that recent population and inflation inputs plus rising county costs have narrowed the county—s margin.

The presentation said Yuma reported eligible expenditures of $96.6 million for the most recent audited fiscal year against a limit near $100 million, leaving only a $4 million cushion. Using conservative projections for population and inflation, staff estimated the county could exceed its limit by roughly $2.6 million in 2025 unless exclusions such as state and federal grants (including ARPA and HEERF) are applied in the annual expenditure limitation report.

Beto presented a staff recommendation to ask voters in a November 2025 special election to increase the county—s 1980 base by $3.83 million (a 40% increase to the base) so that, after applying the state formula, Yuma—s new limit would be about $173 million for FY26 under the example shown. He said the 40% is conservative compared with other Arizona counties that recently increased their bases by larger percentages.

The presenter described alternatives: strictly enforcing departmental budgets and identifying grant and other legal exclusions to remain under the current limit in the short term; pursuing a legislative remedy in Phoenix, which would require a two-thirds majority in the Legislature; or asking voters to approve a one-time permanent adjustment to the base.

Board members asked for clarification about whether the 2020 census drop contributed to the problem (staff said it did reduce the base population factor), and whether the measure would be a permanent change (staff said yes, if voters approve the base adjustment it becomes the new baseline). Several supervisors voiced support for transparency and early community outreach and encouraged staff to draft a resolution to bring back on the next agenda.

At the meeting's close of the item staff said a draft resolution would appear on the next board agenda and that the county would begin coordinating outreach with the city of Yuma and the County Supervisors Association. No formal vote to place a measure on the ballot was taken; the board provided direction to proceed with preparing materials and the draft resolution.

Why this matters: Expenditure limits under Article IX, Section 20 restrict the amount of local revenue counties may spend and can require tax-levy adjustments in subsequent years when a county exceeds the limit. Staff said missed adjustments or repeated shortfalls would reduce flexibility for budgets and capital projects and increase the risk of state audit or oversight.

What happens next: Staff will finish the county—s annual expenditure limitation report to identify allowable exclusions for FY24, prepare a proposed resolution for the board—s next agenda, and begin voter education in coordination with municipal partners.