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Maricopa County is located in roughly the center of the State of Arizona and is
home to the state capital, Phoenix. Maricopa County is one of the fastest-growing and
largest counties in the entire United States. As of 2008, it is the 4th largest county in the
country, and in terms of land area it is the 14th largest. The population of the county has
grown tremendously in the past two decades. For example, the county grew from
2,122,101 residents in 1990 to 3,880,181 in 2007, an 83 percent increase in less than
twenty years.
Some basic figures illustrate the size of Maricopa County’s budget for 2008-09:
Major Funds in Maricopa County include the General Fund, the Detention
Operations Fund, the County Improvement Debt Fund, the General Fund County
Improvements Fund, and the Solid Waste Management Fund.
• Justice and Law Enforcement (Clerk of the Superior Court, County Attorney,
Superior Court, Juvenile Court, Justice Court, Sheriff’s Department, Indigent
Representation and Public Fiduciary);
• Medical Services (Public Health, Human Services and Forensic Science Center);
Community Resources (Superintendent of Schools, Library District and Stadium
District);
• Public Works (Flood Control District, Transportation Department and Solid
Waste Management);
and
• County Administration (Board of Supervisors, County Administrator, Assessor’s
Office, Clerk of the Board, Elections, Finance, Human Resources, Information
Technology, Treasurer and Facilities Management).
The approved budget for 2008-09 is based on a funding and expenditure amount
totaling $2,258,887,593. However, the costs of these functions are not evenly spread. The
following chart lists expenditures by percentage of the 2008-09 operating budget, which
Major sources of funding for Maricopa County for 2008-09 include property
taxes, state shared sales taxes, charges for services, permits and fees, fund balances, and
grants. Taxes for this budget total slightly under 50% of revenues, which is less than in
previous years. Fund balances also cover a much higher proportion of expenses.
Maricopa County, like Southern California, has been hit particularly hard by the
foreclosure crisis, resulting in (anticipated) much lower than usual property tax revenues,
and much higher than usual general fund expenses.
7% 3% Property Taxes,
Penalties and Interest
Sales Taxes
16% State Shared Sales
21% Taxes
State Shared Vehicle
License Taxes
Highway User
6%
Venable Budget Final 21% Revenues 2
Other Intergovernmental
and Grants
As a note, Maricopa County officials have made deliberate decisions to avoid the
use of bond measures, and to maintain a relatively low level of debt. It has tried to lower
its mandated contributions to the State, which now are 18.2% of the General Fund Budget
—down from 25.1 in 2003%. Maricopa County also boasts in its budget that it has the
lowest property tax rate of the state’s urban counties, in a state (Arizona) that has some of
the lowest property taxes in the nation. Maricopa County’s 2008 overall property tax rate
is 1.2970 per assessed value.
50%
Baseball Stadium Tax
40%
30%
20% Highway User Fuel Tax
10%
0% Vehicle License Tax
04
98
00
02
06
-
97
99
01
03
05
19
19
20
20
20
A number of ratios and measures can give readers a sense of the state of the budget in
Maricopa County:
2006-07 Ratios
Working Capital Current Assets - Current Liabilities $2,447,776,595
Current Ratio Current Assets / Current Liabilities 13.22429627
Total Debt Ratio (Times) Total Liabilities / Total Assets 0.136573705
(Cash + marketable securities + receivables) / Current
Quick Ratio Liabilities 6
Note: See appendix 1 for original values.
While not every ratio is diagnostic, each gives us an idea of the picture that is the budget.
The working capital ratio for Maricopa County is 2,447,776,595, which seems quite
large. In addition, the current ratio (13.22) indicates that Maricopa County seems well
able to pay for its present liabilities. The quick ratio (6) helps to confirm the idea that
Maricopa County is has enough money to maintain itself in the present. The total debt
ratio of .1365, or 13.65% seems fairly low.
$2,500,000,000.00
$2,000,000,000.00
$1,500,000,000.00 Total expenditures
$1,000,000,000.00 Total revenues
$500,000,000.00
$0.00
20
20
20
20
20
20
01
02
03
04
05
06
-0
-0
-0
-0
-0
-0
2
Revenues
Percentage Change, 2001-2007 41.12%
Average Annual Percentage Change 2001-2007 6.83%
Expenditures
Percentage Change, 2001-2007 48.68%
Average Annual Percentage Change 2001-2007 6.83%
Note: See Appendix 2 for original values.
The unreserved fund balance has grown steadily from 1997-2007, although the
end of the curve (2004-2007) seems to have flattened a bit and may be decreasing,
indicating that the balance may not increase in the future.
$140,000,000.00
$120,000,000.00
$100,000,000.00
$80,000,000.00 Debt service funds
$60,000,000.00
$40,000,000.00
$20,000,000.00
$0.00
4
8
6
-0
-0
-0
-9
-0
03
97
99
01
05
19
20
19
20
20
Net Assets:
Government Activities vs. Business-type Activities
y = 4E+08x + 1E+09
$4,000,000,000.00
R2 = 0.982 Total governmental
$3,500,000,000.00
activities net assets
$3,000,000,000.00
$2,500,000,000.00 Total business-type
$2,000,000,000.00 activities net assets
$1,500,000,000.00
y = -3E+07x + 2E+08 Linear (Total
$1,000,000,000.00 governmental activities
R2 = 0.7425
$500,000,000.00 net assets )
$0.00 Linear (Total business-
type activities net
-$500,000,000.00
2
7 assets )
-0
-0
-0
-0
-0
-0
01
02
03
04
05
06
20
20
20
20
20
20
Finally, Maricopa County’s total tax revenues grew consistently over the period
1997-2007.
00
02
04
06
-
-
97
99
01
03
05
19
20
19
20
20
$1,000,000,000.00
Public safety
$800,000,000.00
$600,000,000.00 Highways and streets
$400,000,000.00
$200,000,000.00 Health, welfare and
sanitation
$0.00
2
7
-0
-0
-0
-0
-0
-0
01
03
04
05
06
02
20
20
20
20
20
20
One department that has seen increases in its staffing and capacity is the Maricopa
County Sheriff’s Department (MCSO).
Number of Employees,
Department of Public Safety Versus Total for
Maricopa County
30,000
25,000
No. of Employees
20,000
15,000
10,000
5,000
0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Year
A great deal of scrutiny has been placed on the Maricopa County Sheriffs
Department because of its controversial positions on criminal detention and immigration
enforcement. Probably the most notorious creation of Maricopa County Sheriff Joe
Arpaio is the “Tent City” jail where inmates live in outdoor tents, wear demeaning
5,000
4,000
Adult Probation
3,000
Court System
2,000
Sheriff
1,000
0
20
20 02
20 03
20 04
20 05
20 06
01
02
03
05
06
04
-
-0
-
12,000
10,000
No. of Beds
8,000 Inmate beds
available
6,000
(including
4,000 portable)
2,000
0
20
20 02
20 03
20 04
20 05
20 06
05
01
02
03
04
06
-
-0
7
Year
It seems safe to bet that Maricopa County is going to be stable for a while.
Whether or not one wants to attribute that stability to its kind of bare bones low-
government, low-spending attitude, low-tax model, or to other strategic management
models, it appears to be a fairly well functioning county, in financial terms.
Maricopa County doesn’t seem to be having debt problems or cost problems, and
its general fund has been increasing. The most troublesome aspect from the position of
Maricopa County is likely the expected downturn in taxes in 2008-09, and the resulting
increased use of money from the general fund in this year’s budget. However, it does
seem fairly vulnerable because of its low property tax rate, and the problems with the
housing slump.
Conclusion
Maricopa County is one of the largest in the United States, and has one of the
lowest property tax rates for a major urban area in the nation. It appears to be relatively
stable although this may be partly due to a low level of some services. The most well
funded area of the government is public safety, and the most well funded office within
the category is the Maricopa County Sheriff’s Office, which has seen steady increases in
its capacity and staffing.
Sources:
2006-07 Actual
Current Assets 2,648,015,246
Current Liabilities 200,238,651
Total Assets 4,181,619,402
Total Liabilities 571,099,256
Capital Assets 1,422,257,683
Noncurrent Liabilities 370,860,605
Noncurrent liabilities
Due within one year 59,330,829
Due in more than one year 311,529,776