News Summary

Republican lawmakers in Arizona have requested an inquiry by the Attorney General into the City of Phoenix’s fund dispersal practices. They raised concerns about potential violations of the Arizona Constitution’s gifts clause, suggesting that department directors have too much authority to allocate public funds to NGOs without adequate oversight. The lawmakers flagged 600 specific expenditures that they believe could be improper under state laws, highlighting issues of accountability and transparency in the city’s financial practices.

Arizona GOP Lawmakers Request Inquiry into Phoenix’s Fund Disbursement Practices

Phoenix – A group of Republican lawmakers in Arizona has initiated a request for Attorney General Kris Mayes to conduct an inquiry into the fund dispersal practices of the City of Phoenix. The request is centered around the potential violation of the Arizona Constitution’s gifts clause, which forbids local governments from making handouts to corporations or individuals.

The lawmakers have expressed significant concerns regarding the authority granted to department directors in Phoenix, who they believe possess excessive power to disburse public funds to non-governmental organizations (NGOs) without sufficient oversight. This initiative has been spearheaded by GOP lawmakers David Marshall, Walter Blackman, and Quang Nguyen, who collectively emphasize the accountability and transparency issues associated with the city’s current gift policy.

The City of Phoenix has a policy that allows numerous city employees to distribute funds with considerable autonomy. According to the statements made by the lawmakers, this arrangement raises serious questions about the potential misuse of public money. They argue that the absence of stringent checks could lead to improper expenditures, potentially violating the legal stipulations established by the Arizona Constitution.

A representative from the City of Phoenix clarified that the City Council is required to approve any donations that exceed $32,000. In contrast, department directors have the authority to authorize amounts below this threshold, contingent upon their operating budgets. Furthermore, a city ordinance enacted in 2023 empowers the City Manager to allocate and use public funds specifically for settling claims against the City that fall under the $32,000 limit.

However, the lawmakers are arguing that these disbursements to NGOs, characterized as “gifts,” do not align with the definition of a “settlement.” They point out that none of the recipients of these funds have purported or threatened any claims against the City, which they believe further substantiates their case for an investigation.

In light of these claims, the lawmakers have flagged over 600 specific expenditures initiated by city departments to various NGOs, which they contend could be improper under existing state laws governing public fund distributions. Arizona law permits state legislators to request investigations from the attorney general concerning the actions of local governments, thereby giving the legislators a pathway to examine these financial practices closely.

A spokesperson for the City of Phoenix refrained from providing comments on the ongoing inquiry, but they did note that the city maintains an online portal designed for public scrutiny of its expenditures, aiming to foster transparency in governance.

The backdrop to this inquiry highlights a growing scrutiny of how public funds are disbursed at the local government level in Phoenix. As financial practices come under the legislative spotlight, it remains to be seen how the Attorney General’s office will proceed with the inquiry and the implications it may hold for the governance of public funds in Arizona.

This situation underscores a broader conversation surrounding fiscal responsibility among government agencies and the need for clear guidelines governing financial interactions between local authorities and NGOs. As lawmakers pursue clarity and accountability, the potential outcomes of this inquiry could set significant precedents for how public funds are managed in the future.

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• 12 News: Arizona GOP Lawmakers Request Inquiry into Phoenix’s Fund Disbursement Practices
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• AL.com: Alabama Cities Navigate Spending of Opioid Settlement Funds
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