PSPRS Ad Hoc Committee Testimony

The following is the written testimony submitting by Supervisor Buster Johnson to the State’s Ad Hoc   Dear Chairman Campbell: I have been a County Supervisor for Mohave County for the past twenty years.  For the last two decades I have seen the State Legislature try and perfect our state retirement system.  I do believe our state lawmakers understand the importance, and necessity, of wise stewardship of taxpayers’ dollars. They know that a balanced budget is common sense in that only fools spend more than they take in.  With that said though I must ask why has this allegedly Conservative elected body left Mohave County taxpayers on the hook for up to $80 million caused by poor management at the state level? Mohave County’s unfunded liability amounts for the Public Safety Retirement Pension System are over $20 million.  The cities within our County are far worse off, owing over $100 million.  Fire districts within our county are already maxed on their property tax rate.  I am not sure how they will even afford to pay their portion of the debt without going bankrupt.  It’s important to note that these are just preliminary numbers, and we could end up owing even more.  Statewide the total liability is $7.7B, but once interest is added that total will double and total liability will be probably around $15B.  Counties, cities and fire districts don’t just have millions lying around to pay off this debt.  We are going to have to pay this amount off over time and by doing so accrue interest on the payments which could double the amount taxpayers owe. Counties were also notified that the State needs the Counties to pay up front for their portion of the refunds due to employees because PSPRS has outdated computer systems.  Municipalities were told in April to stop the overpayments yet the State continued to incur interest because they had no way to stop the overpayment on their computer system.  This is just another example of the State’s lack of financial responsibility coming back onto the counties. Over the past eight years, counties and cities have also been hit with state cost shifts.  In fact, some have gotten so use to being mugged by our state officials that they are praising lawmakers this year for not taking more funds from us.  This year, the state swept close to $750,000 from Mohave County’s General Fund and more than $100,000 in our county’s Highway User Revenue Funds (HURF).  The State’s annual sweeps of local governments’ funds have been an ongoing problem that many local elected officials have learned to live with. They say, “We can cover it; just don’t rock the boat or they might take even more.” State sweeps added onto the $7.7 billion elephant in the room are forcing local municipalities to cut services and raise taxes while state lawmakers get viewed as the taxpayer’s hero for not raising a dime.  This problem however is in no way the counties, cities or fire district’s … Continue Reading →

Mohave County School Districts Receive Additional State Aid Funding

Lake Havasu City, AZ – The Arizona Department of Revenue has notified Mohave County that 13 school districts within the county should anticipate receiving over $8 million total for fiscal year (FY) 2015 in real and personal property tax roll additional state aid to education (ASAE) dollars.  “These funds will drastically help our school districts,” Supervisor Buster Johnson stated.  “With only 17% of Mohave County being made up of private property, our school system cannot function on property tax dollars alone, which is why this funding is greatly needed,” Johnson continued. In the 1980s, the Arizona state legislature started a K-12 school finance system based on a statutory formula.  Under this formula, school districts receive state aid based on student enrollment and property wealth.  In Mohave County, the highest recipient of funding for FY15 will be the Lake Havasu Unified School District receiving the most at a little over $3.7 million.  The second highest recipient will be the Kingman Unified School District with a little over $2 million. According to Mohave County Superintendent Mike File, the state aid dollars are sent out to school districts in three to four disbursements throughout the year.  The funding aids districts in helping to pay teacher salaries, benefits, utilities, and building maintenance. The other school districts throughout the county that are anticipated to receiving this funding are: The Hackberry Elementary SD # 3: $20,689.70 Owens Elementary SD # 6: $3,103.66 Moccasin-Fredonia Elementary SD # 10: $15,532.92 Topock Elementary SD # 12: $53,470.14 Bullhead Elementary SD # 15: $669,433.19 Mohave Valley Elem. # 16: $443,627.91 Valentine Elem. SD # 22: $2,404.78 Colorado River UHS: $1,166,531.24 Peach Springs Unified SD # 8: $3,381.30 Littlefield/Mt.Trumbull Unified SD # 9: $87,927.36 Colorado City Unified SD # 14: $68,042.00