This page explains an Arizona constitutional spending limit and what Yuma County voters may be asked to consider on November 3, 2026.

Understanding Yuma County’s Annual Expenditure Limitation

Arizona’s Annual Expenditure Limitation (AEL) is a state-established spending limit that affects how much the County can legally spend each year.

The AEL limits spending, not revenue. It is not a tax and does not create a new tax.

At a Glance

What is this about?

A possible update to how Yuma County’s state-imposed spending limit is calculated.

The spending limit dates to 1980, when Arizona voters approved a constitutional formula that limits how much counties can spend each year. The formula is based on what each county spent in fiscal year 1979-80.

Is this a tax increase?

No. Adjusting the AEL:

• Does not increase property taxes.
• Does not increase sales taxes.
• Does not create new fees.
• Does not generate new revenue.

When would voters consider this?

If the Board of Supervisors refers the question to the ballot, voters would decide in November 2026.

The AEL does:

• Limit how much the County can spend each year, even if more money is available.
• Apply to many everyday services residents rely on.

The AEL does not:

• Raise property taxes.
• Raise sales taxes.
• Create new fees.
• Generate new revenue.

The AEL formula is still tied to 1979-80 spending levels and is adjusted only for population growth and national inflation. However, over time, the formula has not kept pace with operational realities. For example:

• Over the past decade, state-collected sales taxes shared with the County increased an average of 6.4% per year, while the expenditure limit increased an average of 2.6% per year.
• The County’s operating costs have been growing faster than the formula’s population-and-inflation growth factor.
• 2020 Census adjustments reduced Yuma County’s base, lowering allowable expenditures even as service demand increases.

Yuma County has been able to operate within the existing limit by implementing efficiencies and making operational adjustments, but the limit is being approached and additional capacity is now necessary to maintain consistent levels of service and investment.

Yuma County is evaluating whether to ask voters to consider a Permanent Base Adjustment to the AEL.

A Permanent Base Adjustment would permanently update the County’s expenditure base (the starting point used in the formula).

Proposal under discussion

Yuma County is considering asking voters to permanently increase the County’s expenditure base by $6,200,000 (about 65%), beginning in fiscal year 2027-2028.

This would not be a tax increase. It would change the legal spending limit calculation; it would not create new revenue.

Budget oversight would continue. The County would still adopt a balanced budget each year through the public budgeting process and Board of Supervisors’ approval.

What happens if voters approve, or do not approve?

If voters approve the measure:

• The County’s expenditure base would be permanently adjusted, and the Arizona Economic Estimates Commission would use the new base to calculate future expenditure limits.
• Spending would still be limited to available revenues and the annual budget process.

If voters do not approve the measure:

• The County’s expenditure base would remain equal to its 1979-80 spending level.
• The County would continue to balance revenues and expenditures, but meeting service delivery needs would be more challenging as the limit tightens.
• Remaining at the 1979-1980 expenditure base may prevent the County from spending all the revenue it is permitted to collect each year.

Does this affect my taxes?

No. The AEL limits spending, not revenue. A Permanent Base Adjustment does not increase property taxes, increase sales taxes, create new fees, or generate new revenue.

What is the AEL, in one sentence?

It is an Arizona constitutional formula that limits how much the County can spend each year, based on 1979-80 spending levels and adjusted annually for population and inflation.

What is Yuma County’s current expenditure limit?

For Fiscal Year 2026, the County’s total budget is $552 million, and the state-set expenditure limitation is $121 million. This means the County’s total budget exceeds the state-imposed spending cap by $431 million. While certain expenditures are exempt, most core services count toward the cap.

What is the effect of the expenditure limit on County services?

The County has been able to operate within the existing expenditure limit by implementing efficiencies and adjusting services, like issuing debt to pay for Capital Improvement Projects, but the expenditure limit has been reached, and additional capacity is now necessary to maintain consistent levels of service and investment in the County.

Why does the expenditure limit exist?

The implementation of an expenditure limit was a reaction by voters to high inflation, slow economic growth and high unemployment of the late 1970s. Voters sought to impose a limit requiring local governments to practice fiscal constraint based on conditions at the time.

Has the County changed its expenditure base in the past?

No. The County has never asked voters to increase the base since it was imposed.

Why doesn’t the formula keep pace with Yuma County’s actual growth?

The formula does not account for changes in service expectations, modern public safety equipment and technology, local construction and labor costs, infrastructure demands, regulatory requirements that did not exist in 1980, and seasonal residents’ impact on services.

How much would the County’s base change if voters approve?

The County is considering a permanent increase of $6,200,000 to the 1979-80 expenditure base, beginning in fiscal year 2027-28.

What types of spending count toward the limit?

Many core County services and operations count toward the limit, including roads, criminal justice, law enforcement, emergency response, public works, health services, facilities management, and general government.

What spending is exempt?

Certain expenditures do not count toward the AEL, including debt service payments, grant-funded projects, some capital improvements, and investment earnings.

Would the County immediately increase spending?

No. Spending within the adjusted limit would only increase as revenues are available. The County will continue to operate with a balanced budget set by the Board of Supervisors each year.

Have other counties adjusted their expenditure base?

Yes. Multiple Arizona counties have adjusted their expenditure base, including recent voter-approved changes in Yavapai and Coconino counties. Additionally, 84 of 91 Arizona cities and towns have increased their expenditure limits.

What measures has Yuma County taken to be fiscally responsible?

Yuma County has always balanced its budget. It has one of the lowest primary property tax rates in Arizona. In addition, the County has implemented conservative revenue forecasting and budgeting methods to effectively and efficiently deliver services.