Phoenix officials are sending a routine measure to the ballot that will allow the city to set its own annual spending limit rather than be bound by a cap in state law.
In 1980, Arizona voters approved a change to the state constitution setting a formulaic expenditure limit for cities and towns. That limit increases each year based only on population change and inflation.
Phoenix, like many Arizona cities, opts instead for an option outlined in the state constitution — asking voters to approve an alternative expenditure limitation. Phoenix’s alternative that residents have approved six times dating back to 1999 is known as the “Home Rule Option” — simply setting the annual spending limit equal to whatever is in the council-approved budget. Phoenix is still bound by another state law to have a balanced budget each year.
