*Background* The ARRL is about to lose the most active and productive Section Manager in the Southwestern Division. Arizona SM, Tom Fagan, K7DF, appears to not be running for another term. He reports spending between $7000 and $10000 of his own money on ARRL business each year, above what he is reimbursed by the League. His family has therefore encouraged him not to run again. I'm not sure of the accuracy of his estimate, but agree that he very likely overspends his ARRL budget. I don't believe he has been successful in getting significant additional funding from Dave Patton. I've attempted to get Tom Fagan to submit expense reports for some big hamfests to me, where he would be eligible for reimbursement as an Assistant Director, representing the League at an important event where the cost of either the Director or Vice-director attending would be unreasonably high. I have gone to about one or two Arizona events per year. Since it involves over 400 miles of travel each way, I have felt the cost to the League would not be warranted for me to attend more. Tom Fagan has done an excellent job of representing the the ARRL at these events. For some reason, he has not done so to date. In 2012, he represented ARRL at 14 hamfests. Arizona apparently has 18 scheduled next year, in 2013. They are spread out all over the state. *ARRL Section Manager Budgets* The ARRL uses a formula for determining Section Manager budgets that includes only the area of the section and the number of League members. There is no consideration for how the members are distributed in the area or where the Section Manager lives with respect to the section activities. The formula works adequately for many sections. In fact, it is probably adequate for the other 4 sections in the Southwestern Division. It is not adequate for Arizona, due to the size and the fact that the population is spread out in a number of areas over the state. *Arizona* * * Arizona is a big state, and the population is spread out. It has more than the total area of the W1 and W2 districts combined, where there are 13 ARRL sections. Phoenix is the 6th largest city in the USA, and growing. It will likely move up that list. Tucson is the 33rd largest, and is 110 miles from Phoenix. The current Arizona SM, K7DF, lives in Tucson. Currently, one person has filed nomination papers for Arizona SM, and he lives in Yuma. Yuma is in the far southwest corner of the state, approximately 200 miles from Phoenix, 240 miles from Tucson, 275 to 300 miles from the northern cities. Arizona presently has the largest ARRL membership of any section in the Southwestern Division, and it continues to grow as hams move into the state. 3768 total Arizona ARRL members show in the latest report. In the winter, there are a significant number of "snowbirds" who spend the season in Arizona. From the attendee mix at the Yuma Hamfest, I'll estimate 500 more are present in winter. *Arizona Hamfests* 14 hamfests scheduled in 2013 include the following. Phoenix area - 5 Tucson area - 4 Northern cities - 4 Yuma - 1 Quartzsite - 1 Trip costs are estimated using 55.5 cents per mile, $80 hotel for trips over 100 miles one-way, and $25 meals. To cover these hamfests alone, from Tucson would cost $4044, and from Yuma would cost $5631. The Arizona SM budget is approximately $3500. The travel costs of the hamfests alone are greater than the total budget. The Arizona hams have grown accustomed to League representation at their hamfests. In addition to the hamfests, the SM often attends the Southwestern Division Convention, and presents talks at a number of radio club meetings. The cost for either myself of the vice director to attend one of these events is in the $700 - $900 range, due to the long travel involved. It is to the League's advantage to have these events covered by Arizona residents. *Possible Splitting of the Arizona Section* We have talked about dividing Arizona into three sections, Southern Arizona, Phoenix, and Northern Arizona. This would make SM coverage more manageable. The exact dividing lines might not exactly follow county lines. K7DF will be discussing this at upcoming Amateur Radio Council of Arizona (ARCA) meetings. This is expected to be something quite welcome in the state as it has been brought up previously. More information on ARCA can be found at http://www.arca-az.org/ I am unable to find anything in the Director's Handbook about what it takes to create new sections. Northern New York was created somewhat recently, with a League population of only 319 members. Also, note that the present NNY SM is located only 144 miles from Albany, a reasonably large city in ENY. *Question* What is the procedure for creating new sections? Does it simply involve a director's motion to do it? If so, I'd like to make such a motion at the January meeting. Creation of three sections will allow the League to better serve the Arizona membership. I hope you will support such action. 73, Dick Norton, N6AA