State Vehicle License Tax Sweep Could Cost County $2.2 Million

By Tammy Gray-Searles
   “It was a depressing day,” Navajo County Board of Supervisors Chairman Jerry Brownlow said about a trip he took to the state capitol to meet with legislators shortly before a board meeting on Dec. 8.
   Brownlow told the board that he confirmed, as also reported by county Finance Director James Menlove, that the legislature is considering taking vehicle license tax (VLT) funds from counties to help balance the state budget.
   “If they take our VLT, we'd have some major problems,” Brownlow noted.
   The state had threatened to take vehicle license tax funds from cities and counties at the start of the fiscal year, but did not do so. At that time, Navajo County would have been required to turn over $1.1 million of the $2.2 million it receives. Winslow would have taken a $234,293 hit, Holbrook $129,237, Snowflake $117,564 and Taylor $97,672.
   At that time, Arizona League of Cities and Towns Director Ken Strobeck remarked, “They’re trying to balance the budget by shifting the responsibility to cities to fund public schools.”
   Menlove told the board that the issue is being raised again, and that the legislature might be expected to discuss it in their next special session to balance the budget.
   “The issue being bounced around is that the legislature is discussing taking it (VLT) from the county general funds,” Menlove said. “We projected over $2 million in general fund revenues and they are currently being threatened at the state level. I know the CSA (County Supervisors’ Association) and the counties are all fighting that, but as a board your help is appreciated in not losing those general fund dollars.”
   County Manager Jimmy Jayne told the board that he also met with officials at the state capitol regarding the budget.
   “There is clearly an indication that the general fund VLT is back on the table,” Jayne said. “That is of great concern for us.”
   Jayne told the board that he had another meeting scheduled with representatives from the governor’s office to “take their temperature” on the possibility of vehicle license tax funds being swept from counties.
   Menlove noted that meanwhile, the county is still facing a projected shortfall this fiscal year. He told the board that state shared and county sales tax revenues are flattening out. He also noted that the county has saved nearly $1.3 million in payroll expenses through vacancies.