The Central Arizona Water Conservation District (CAWCD), which operates the 336 mile-long Central Arizona Project (CAP) canal, wants to extend a t-a-x. This will require legislation . . . and don’t let those three little letters fool you. At the Arizona legislature “tax” is a four-letter word!
Known as the four-cent ad valorem tax, this revenue stream raises over $20 million which the Arizona Water Banking Authority can use to store water underground, or the CAP can use to spend for operations, maintenance, or repayment costs. In my years in state government, the budgeteers would call this “budget dust.” In federal speak, this could be referred to as a “budget molecule.”
So, in a general fund budget of $12.8 billion for FY 2022 why would anyone grouse about a measly $20 million tax? Well, for starters under current legislation the tax is slated to lower to a three-cent ad valorem tax in 2025. This would result in an annual savings of less than two dollars for the average Maricopa County homeowner. Still doesn’t sound like a big deal, does it?
For certain folks down at the legislature, however, it IS a big deal. On my property tax bill, for example, I have 22 different little fingers in my pie all wanting something. Pretty soon a significant portion of the pie is gone, except it’s not a pie, it’s my house. Eventually, if I don’t pay the tax, I lose the house. But enough griping about taxes . . . By the way, those taxes are MUCH HIGHER in CALIFORNIA, but I digress. Let’s get to the real issue.
MORE DIGRESSION . . .
When I arrived at the Arizona legislature many years ago, I was banished to the backbench. I had the temerity of beating a man who would have become the next senate president had he won re-election. Since my party lost the majority that year, the new majority exiled me to the farthest back corner of the Senate chamber. I ended up sitting next to a West Valley legislative veteran and retired Air Force colonel named Bob Denny. We formed the Back Row Gang, lobbed grenades at the majority, and generally had fun.
Former State Senator Bob Denny
Legacy.com
When a legislative rookie, like me, caught on to something by reading between the lines of legislative speak he would tell me, “Kid, you broke the code.” They spoke so many things in code . . .
Navajo Code Talkers
National WWII Museum
SO WHAT’S THE CODE THIS TIME?
Cynthia Campbell, water resource management advisor for the City of Phoenix, seemed cool to the idea when it was broached by Jeff Gray at a recent Vetting 4 Water Forum hosted by the Arizona Municipal Water Users Association and the Arizona Agri-Business & Water Council. Gray represents the CAWCD and I consider both he and Campbell friends that I have worked with for many years.
So . . . is Cynthia Campbell an uber budget hawk who raised her fist at big government? Frankly, I have no idea how she feels about tax policy, but she did mention that the CAWCD does not allow the cities to use the four-cent ad valorem tax to withdraw previously banked water even though cities can use the tax to store it. Hmmm . . . and why did the CAWCD send $6 million to the Metropolitan Water District of Southern California to explore water recycling, she asked.
Creative Commons: book by Herbert Zim
TRANSLATION
Using my codebook to translate, it comes out roughly, “Mr. Gray, the City of Phoenix could support the extension of your four-cent ad valorem tax if you allowed municipalities to use the tax revenue to withdraw previously banked water during a time of extreme drought.”
CONCLUSION
Don’t mess with Cynthia or she can make things difficult for you. One more thing . . . always have your codebook handy to understand the subtext.
*For any of you out there in Facebook Land who like to critique my spelling (or counting), I actually know that the word “tax” has three letters, but work with me here!