Expenditure Limitation

In 1980, Arizona voters added a "spending cap" to the state constitution to control local government costs by limiting budget increases to population growth and inflation (Ariz. Const. art. IX, § 20). However, because this formula can be restrictive, cities often choose voter-approved alternatives such as Home Rule, which allows a community to set its own spending limits every four years, or a Permanent Base Adjustment to permanently raise the spending ceiling (Ariz. Const. art. IX, § 20(6, 9)). Other options include One-Time Overrides for specific projects or establishing Capital Funds for long-term infrastructure, all ensuring that local governments can provide essential services like police and road repair even when the state formula falls short (A.R.S. § 41-1279.07).

Want to learn more? Click here: Expenditure Limit Overview

You can also review past expenditure limitation documents in the Expenditure Limit Document Center below.