by Jonathan Eberle | Apr 24, 2025 | Economy, News
By Jonathan Eberle |
Despite recent claims of financial strain, Arizona cities are experiencing robust revenue growth, according to the Arizona Tax Research Association’s (ATRA) April 2025 newsletter. The report highlights that municipalities have accumulated substantial cash reserves, even as some city officials advocate for tax increases.
ATRA’s analysis reveals that for Fiscal Year (FY) 2025, Arizona cities collectively budgeted $9.1 billion for their general funds, with nearly $4.2 billion—approximately 47%—allocated to cash reserves. This financial strength is attributed to consistent growth in sales and income tax revenues, bolstered by legislative changes and economic factors.
A significant contributor to this revenue surge is the 2019 Wayfair legislation, which enabled Arizona to tax remote sales. This change led to a substantial increase in sales tax collections, with shared revenues to cities rising over 55% from $589 million in FY 2020 to $915.5 million in FY 2025. Projections indicate this figure will reach $918 million in FY 2026.
In addition to sales taxes, cities benefit from Urban Revenue Sharing (URS), which distributes a portion of state income taxes based on collections from two years prior. In FY 2025, URS allocations amounted to over $1.26 billion. However, this represents a 19% decrease from the previous year, primarily due to the implementation of a 2.5% flat income tax rate in FY 2024. To mitigate the impact on municipalities, the state increased the shared percentage from 15% to 18%.
Despite these strong revenue streams, some city leaders cite recent state tax reforms—such as the 2021 personal income tax cut and the elimination of taxes on residential rents—as reasons to consider raising local taxes. ATRA cautions against this approach, emphasizing the importance of prudent fiscal management and the existing financial cushion that many cities possess.
The association’s findings suggest that while state-level tax policy changes have influenced revenue dynamics, Arizona cities continue to enjoy a favorable financial position. As discussions around taxation and budgeting persist, ATRA advocates for transparency and accountability in municipal fiscal practices.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | Apr 23, 2025 | News
By Jonathan Eberle |
Despite opposition from local leaders and community organizers, Governor Katie Hobbs has signed SB 1543 into law, a move that will significantly curtail the ability of residents in cities like Scottsdale to refer zoning decisions to the ballot. The legislation, which passed the Arizona Legislature along party lines earlier this month, takes aim at local control.
The law applies retroactively, nullifying a referendum effort by nearly 27,000 Scottsdale residents who had petitioned to challenge a city council-approved expansion plan by public safety technology company Axon. The referendum would have placed the matter on a future citywide ballot, giving voters the opportunity to weigh in on the project’s future.
In a letter sent to Governor Hobbs prior to her decision, Scottsdale Mayor Lisa Borowsky and the full City Council warned that SB 1543 “undermines the principles of local control that are foundational to Scottsdale’s governance” and “sets a dangerous precedent.” The city emphasized that the referendum effort was not a protest against development, but rather a call for public input on a high-impact zoning change.
The controversy began after the Scottsdale City Council voted in November 2024 to approve Axon’s expanded development plans. While the company’s previously approved headquarters from 2020 remains intact, the new proposal includes nearly 2,000 multifamily residential units; over 400 hotel rooms; and approximately 47,000 square feet of retail and restaurant space.
Many residents argued that the expansion warranted broader community input, prompting a grassroots petition drive that garnered tens of thousands of signatures. However, with SB 1543 now law, the referendum effort has been invalidated, and Scottsdale voters will not have the opportunity to decide on the matter at the ballot box.
SB 1543 removes the ability of residents in cities of certain sizes—including Scottsdale—to challenge zoning decisions. Supporters, including Republican legislative leaders, say the law clears the way for large-scale development projects and reduces delays caused by ballot initiatives. Critics, however, argue it silences community voices and weakens the checks and balances that local governments rely on.
City leaders have expressed concern that the legislation fails to address critical issues related to growth, including increased traffic and infrastructure strain. “These are not abstract issues—they impact the daily lives of our residents,” the city wrote in its plea to the Governor.
With the law now enacted, Scottsdale is weighing legal and procedural responses to preserve local authority, while other municipalities watch closely to see how the law will be implemented and challenged.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | Apr 23, 2025 | News
By Jonathan Eberle |
Arizona Governor Katie Hobbs has signed Senate Bill 1424, known as the Master Sgt. Orlando Dona Stolen Valor Act, into law. The legislation makes it a criminal offense in Arizona to falsely claim military service or honors for personal or political gain.
The bill, which received bipartisan support in the legislature, takes effect 90 days after the legislative session adjourns. With the governor’s signature, Arizona joins a growing number of states adopting “Stolen Valor” laws that aim to protect the integrity of military service and ensure that those who have sacrificed for their country are not disrespected by fraudulent claims.
Under SB 1424, it will be a misdemeanor offense in Arizona to misrepresent oneself as a member or veteran of the United States Armed Forces or to claim military awards, medals, or other honors that were never earned—particularly when done to obtain benefits, employment, or political advantage.
The law is named after Master Sergeant Orlando Dona, a highly decorated veteran and advocate for military integrity. Dona and others have pushed for greater accountability in how military service is portrayed, particularly by public figures and candidates seeking office.
The bill specifically targets individuals who exploit military service for tangible or reputational gain, such as campaign credibility, financial advantages, or public recognition. Supporters say the law will help restore trust in veteran communities and honor those who have served honorably.
The issue of “stolen valor” has drawn increasing attention in recent years, as social media and public scrutiny have exposed multiple cases of individuals falsely claiming service, rank, or military decorations. While federal law—under the Stolen Valor Act of 2013—prohibits false claims of military awards for monetary gain, SB 1424 strengthens state-level enforcement and expands the law to cover a broader range of deceptive conduct.
Military families and veterans’ advocates have praised the signing, noting the damage such lies can cause to the credibility and honor of legitimate service members.
The bill has drawn support from across the political spectrum, including lawmakers, veterans’ groups, and watchdog organizations dedicated to exposing fraudulent military claims.
The law is expected to be enforced by local jurisdictions and could involve penalties such as fines or jail time, depending on the severity of the offense.
As Arizona takes a firm stance against misrepresenting military service, advocates hope the measure will deter future abuse and serve as a model for other states still considering similar legislation.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | Apr 20, 2025 | Education, News
By Jonathan Eberle |
Arizona students will soon face new limits on cellphone and social media use during the school day under a law signed Monday by Governor Katie Hobbs. The bill, HB 2484, passed with bipartisan support and aims to reduce digital distractions in public and charter school classrooms across the state.
The legislation, sponsored by Representative Beverly Pingerelli (R-LD28), requires school districts and charter schools to adopt policies that restrict student access to personal wireless devices and social media platforms during instructional hours. Exceptions are provided for emergency communication, medical needs, and teacher-approved academic use.
“Education requires attention, and attention is exactly what today’s students are being robbed of by addictive devices and endless scrolling,” Pingerelli said in a statement. “Arizona classrooms are for learning, not TikTok. Teachers can finally reclaim their classrooms.”
The new law mandates that Arizona schools develop and enforce policies that limit or prohibit non-educational cellphone use during school hours; restrict access to social media platforms while on school premises; and provide exemptions for emergencies, health-related needs, or educational tools as determined by teachers.
Districts will have flexibility in crafting the specific guidelines, but they must meet the state’s minimum requirements. Supporters say the law empowers teachers, supports student focus, and responds to growing concerns among parents and educators about the impact of screen time on learning.
Arizona is the latest in a growing number of states considering restrictions on student cellphone use. Educators across the country have increasingly voiced concerns that smartphones, social media, and digital distractions are interfering with learning, fueling anxiety, and making classroom management more difficult.
Research has shown that heavy cellphone use in school correlates with lower academic performance, increased mental health concerns, and reduced attention spans. In response, some districts nationwide have independently instituted bans or restrictions—though results and enforcement vary.
Critics of such policies have occasionally raised concerns about student safety, parental access, and equitable enforcement. However, HB 2484 includes exceptions to ensure students can still reach caregivers in emergencies and access necessary medical technology.
The law aligns with the Arizona House Republican Majority Plan’s emphasis on academic focus, teacher support, and increased parental involvement in education. While the issue drew support across party lines, it also sparked debate about how best to balance technology in modern classrooms.
“Teachers shouldn’t have to compete with YouTube and Instagram to be heard,” Pingerelli said. “This law puts students’ education first.”
Arizona schools are expected to begin implementing the new policies in the upcoming academic year.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | Apr 16, 2025 | Education, News
By Jonathan Eberle |
Arizona has officially become the first state in the nation to ban ultra-processed foods in public schools. Governor Katie Hobbs signed HB 2164, also known as the Arizona Healthy Schools Act, into law this week after it passed both chambers of the legislature with overwhelming bipartisan support.
The law will take effect in the 2026–2027 school year and applies to all schools that participate in federally funded or assisted meal programs. It prohibits schools from serving, selling, or allowing third-party vendors to offer ultra-processed foods during the normal school day.
Ultra-processed foods are defined under the law as any food or beverage containing one or more of 11 specific additives, including potassium bromate, titanium dioxide, propylparaben, brominated vegetable oil, and synthetic dyes such as red dye 40, yellow dye 5, and blue dye 1. These ingredients have faced mounting scrutiny due to potential links to behavioral issues, allergic reactions, and even cancer risks.
Importantly, the law does not restrict what parents or guardians may provide for their own children. However, it places full responsibility on schools to eliminate the sale or provision of these additives through lunches, vending machines, snack bars, and school stores during the school day.
State Representative Leo Biasiucci (R-LD30), a leading sponsor of the bill, celebrated the signing in a post on X: “My bill, HB2164: banning of ultra processed foods in school meals, was just signed into law in Arizona!”
Under the new law, the Arizona Department of Education (ADE) is tasked with implementing a compliance system. This includes publishing a standardized form for schools to certify adherence and posting a public list of compliant schools on the ADE website.
Arizona schools are already required to meet federal guidelines on school meals through the National School Lunch and School Breakfast Programs. These standards limit calories, sodium, unhealthy fats, and mandate the inclusion of fruits, vegetables, and whole grains. HB 2164 builds on those efforts by targeting a set of food additives that are not currently prohibited by federal rules.
The Joint Legislative Budget Committee noted that the administrative impact of the law on ADE would be minimal and can be handled by existing staff. With the law now on the books, Arizona is poised to become a national leader in school nutrition policy—placing children’s health and safety at the center of its education system.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
