Arizona cities aim to protect state-shared revenue

A top priority of cities and towns during the upcoming session of the Arizona Legislature is protecting the tax revenue distributed back to them from the state.

The state faces a budget deficit of $2.25 billion.

Cities fear state-shared revenue that comes from income, sales and vehicle-license taxes could be an inviting target for the Legislature in the session that begins Jan. 10.

Incoming Senate President Russell Pearce says the Legislature should consider reducing the municipalities’ portion of state revenue and let them raise their own revenue.

Karen Peters, Phoenix’s government-relations director, says in fiscal 2011 it’s projected that state-shared revenue will form 32 percent of the city’s budget.