by Matthew Holloway | Mar 4, 2026 | News
By Matthew Holloway |
The Arizona Court of Appeals has ruled that prevailing wage ordinances enacted by the cities of Phoenix and Tucson violate state law, ruling in favor of the Associated Minority Contractors of Arizona, represented by the Goldwater Institute in a lawsuit challenging those laws.
The decision holds that local ordinances requiring contractors on certain public works projects to pay “prevailing wages” are prohibited under a 1984 state statute, A.R.S. § 34-321(B), that forbids cities from imposing prevailing wage requirements. The appellate court affirmed the lower court’s judgment that the ordinances conflict with state law.
Goldwater’s lawsuit was brought on behalf of the Associated Minority Contractors of Arizona, the Arizona Builders Alliance, and the Arizona Chapter of the Associated General Contractors of America, who argued that the ordinances exceeded cities’ authority under Arizona statute.
In a statement, Timothy Sandefur, Vice President for Legal Affairs at the Goldwater Institute, said, “The real winners in today’s ruling are Arizona taxpayers—as the court itself made clear.”
Sandefur then quoted the court’s language, writing: “The Cities’ interpretation would grant the Cities broad power. With that power, the Cities could dictate how much any employer pays any employee anytime an employer contracts or subcontracts with the Cities. Put differently, the Cities by ordinance could dictate pay whenever an employee works under a public contract, regardless of the contract’s value or the nature of the work performed.”
He added, “That, of course, would cost taxpayers more—reducing their freedom of choice and their ability to invest in their own futures—all for the benefit of politicians and politically well-connected lobbyists.”
In a post to X, he wrote, “The decision’s an important victory for taxpayers throughout the state, who’d otherwise be forced to pay inflated prices for public works projects even though a state law approved by voters abolished ‘prevailing wages’ over 40 yrs ago.”
Prevailing wage laws, distinct from minimum wage laws, require employers on public contracts to pay workers based on wage rates calculated by formula, often higher than standard minimum wages. The 1984 state law expressly prohibits cities from requiring public works contracts to include prevailing wage provisions.
In the case before the appellate court, Phoenix and Tucson had passed ordinances applying prevailing wage rates to city contracts exceeding defined monetary thresholds, $4 million for Phoenix and $2 million in Tucson, and set wage requirements by reference to federal Davis-Bacon Act wage schedules.
Attorneys for the cities had argued that subsequent voter-approved minimum wage measures, including the 2006 voter-approved Minimum Wage Act and subsequent amendments, allowed local governments to regulate minimum wages and thus could support prevailing wage requirements. The court rejected that interpretation, finding that the statutory authority for cities to regulate minimum wage does not extend to prevailing wage mandates.
In its ruling, the appellate panel wrote that prevailing wage provisions do not qualify as “minimum wages” under the relevant Arizona statutes, noting that prevailing wage requirements apply only to a subset of workers on specific public contracts, whereas minimum wage laws apply generally to all employees once employed.
“Section 34-321(B) prohibits political subdivisions from requiring contractors or subcontractors to pay the prevailing rate of wages on public works contracts,” the court wrote. The panel further held that Phoenix’s and Tucson’s ordinances “conflict with § 34-321(B) and are therefore invalid.”
The court concluded that the 1984 prohibition on prevailing wage requirements remains in effect and was not repealed by later minimum wage laws, determining that the newer statutes and the prevailing wage prohibition can coexist without conflict.
“The Local Permission Provision authorizes regulation of minimum wages,” the court wrote, referring to § 23-364(I). “Prevailing wages are not minimum wages.”
Prevailing wage ordinances have been the subject of multiple legal challenges in Arizona. In 2024, a Maricopa County Superior Court judge similarly ruled against prevailing wage ordinances in Phoenix and Tucson, finding they violated the same state prohibition.
The appellate decision affects not only Phoenix and Tucson but also any Arizona city considering similar prevailing wage mandates under state law, consistent with the court’s interpretation of A.R.S. § 34-321(B) on municipal wage-setting authority for public works contracts.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Matthew Holloway | Mar 3, 2026 | News
By Matthew Holloway |
The Arizona House of Representatives passed House Concurrent Memorial 2007, a measure that would designate sections of State Route 69 as a memorial highway honoring U.S. veterans from major conflicts over the past century.
The measure, sponsored by State Representative Quang Nguyen (R-LD1) and passed with bipartisan support, urges the Arizona State Board on Geographic and Historic Names to divide State Route 69 into six equal segments. Each section would be designated to honor veterans of a specific conflict: World War I, World War II, the Korean War, the Vietnam War, Operation Desert Storm, and the “Iraq and Afghanistan War,” as described in the resolution.
Under HCM 2007, the memorial also calls on the Secretary of State to transmit a copy to the chairperson of the state geographic board for implementation.
“State Route 69 is a major corridor in our state. When Arizonans drive it, I want them to see names that mean something,” Nguyen said in a statement. “World War I. World War II. Korea. Vietnam. Desert Storm. Iraq and Afghanistan. Those names stand for sacrifice, courage, and victory.”
Nguyen also said the measure recognizes the service and sacrifices of Arizona veterans across generations, and that the memorial would keep the contributions of those service members visible to motorists throughout the state.
“Arizona owes a debt that can never be fully repaid to the men and women who fought for this country,” Nguyen said. “They answered the call in the world’s darkest hours, on frozen hillsides, in jungles, across deserts, and in the streets and mountains where terrorists tried to make war on Americans. They did not hesitate. They put their lives on the line so the United States would stay free, our families could live in peace, and our flag would never be lowered to an enemy.”
State Route 69 is a significant regional corridor in northern Arizona that runs from Yavapai County’s seat, Prescott, and its suburbs, like Prescott Valley and Dewey-Humboldt, and connects a series of rural communities before meeting I-17 at Cordes Junction.
The House Concurrent Resolution notes in historical context that State Route 69, currently named “Black Canyon Highway,” was declared the first public road in the new Arizona territory in 1864 and utilized by the United States Army as part of its route from the then-critical military installations of Fort Whipple to Fort McDowell.
HCM 2007 now advances as a formal request to the Arizona State Board on Geographic and Historic Names for consideration of the designations.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Matthew Holloway | Mar 3, 2026 | News
By Matthew Holloway |
Alix Skelpsa Ridgway, director of the Arizona Office of Tourism, will receive the 2026 “Visionary for the Future” Award from the Common Sense Institute (CSI) at its annual Free Enterprise Summit, the nonprofit research organization announced this week.
The award recognizes leaders, CSI says, who demonstrate “innovation, bridge-building, and principled leadership” in addressing public policy challenges in Arizona. CSI stated in a press release that recipients are selected for their ability to clarify complex issues and advance practical, data-informed solutions that support long-term economic opportunity and prosperity.
Ridgway leads the Arizona Office of Tourism, the statewide agency tasked with promoting travel to Arizona for both domestic and international visitors. Governor Katie Hobbs announced on January 7, 2026, that Ridgway would serve as the agency’s director. She has held senior leadership roles within the Office of Tourism since 2019, including deputy director and interim director.
In its release, CSI said the Office of Tourism’s marketing efforts have generated “billions of dollars in tourism revenue,” contributing to economic activity across Arizona’s counties. The organization added, “Her leadership reflects a sustained commitment to strengthening one of Arizona’s most significant economic sectors.”
“Tourism is one of Arizona’s most important economic engines, supporting jobs and small businesses in communities across every county,” said Katie Ratlief, executive director of the Common Sense Institute.
Ratlief said Ridgway’s leadership helped keep Arizona competitive “on the national and global stage,” adding that by “pairing smart strategy with strong partnerships,” she has helped keep visitors coming, strengthened local economies, and reinforced tourism’s role in driving statewide prosperity.
According to recent data from the Arizona Office of Tourism, the recognition comes amid mixed results across several travel indicators. Airport passenger traffic is down 1% year-over-year, State Park visitation is down 8.4%, and National Park visitation is down 18%. At the same time, estimated tourism tax revenues are up 1.9%, with lodging revenue increasing 3.2% and short-term rental revenue up 0.5%.
The Free Enterprise Summit is CSI’s annual policy event; registration information and details are available on the group’s website.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Matthew Holloway | Mar 2, 2026 | News
By Matthew Holloway |
Arizona Senator David Farnsworth (R-LD10), chairman of the Senate Appropriations, Transportation & Technology Committee, hosted executives from Pivotal Aviation during a visit to Arizona aimed at showcasing developments in advanced air mobility technology.
Pivotal, a developer of electric vertical takeoff and landing aircraft, met with Farnsworth and explored potential flight locations and applications for its aircraft in communities including Superior and Globe. The discussions included how eVTOL technology could enhance connectivity, public safety, emergency response, and mobility in rural parts of the state.
Pivotal’s aircraft are part of a broader category of electric vertical takeoff and landing vehicles that are central to the emerging advanced air mobility (AAM) sector. AAM, as defined by the National Business Aviation Association, uses electric aircraft to move people and cargo between locations not easily served by traditional transportation or aviation modes, and the concept is being developed for both urban and regional applications.
The company, currently marketing single-seat eVTOL aircraft such as its Helix, is preparing customer deliveries of next-generation aircraft and continuing operational development.
Farnsworth described Arizona as having an opportunity to lead in next-generation transportation and emphasized the potential for AAM solutions to serve residents across the state.
He said in a statement, “Advanced Air Mobility is not just about technology for the sake of technology; it’s about enhancing how people move, keeping communities connected, and preparing for the future. Witnessing how these aircraft can directly benefit Arizona and discussing their operation across diverse landscapes, including rural towns, reinforces why our state is well-positioned to take the lead. My goal is to ensure that Arizona remains a place where innovation is welcomed, responsibly explored, and ultimately used to improve the quality of life for all Arizonans today and for generations to come.”
Arizona lawmakers have been taking steps to integrate advanced air mobility into the state’s transportation planning framework. Under Senate Bill 1307, signed into law in May 2025, the Arizona Department of Transportation (ADOT) must begin developing or upgrading a statewide aviation plan that incorporates infrastructure for advanced air mobility, including vertiports, “specialized areas for vertical takeoff and landing,” per the FAA, and aircraft charging stations, by September 1, 2026. The legislation also establishes funding mechanisms for constructing vertiports and supporting AAM demonstrations.
The state’s Advanced Air Mobility Fund, created through recent state appropriations, is intended to support infrastructure development and aircraft testing tied to AAM. Bills under consideration in the current legislative session would expand the uses of that fund, including potential applications for border security operations.
Local planning efforts also reflect growing interest in the technology. The City of Phoenix Aviation Department released an advanced air mobility framework study that outlines how AAM technologies, including eVTOL aircraft, could be integrated into the city’s airport system with roles defined for Phoenix Sky Harbor, Deer Valley, and Goodyear airports, according to AVWeb. That framework is intended to support infrastructure readiness, regulatory coordination, and potential future operations.
Advanced air mobility has also attracted federal attention. A pilot program launched by the Federal Aviation Administration in 2025, per Reuters, aims to accelerate air taxi deployment through public-private partnerships, enabling selected aircraft operations ahead of full regulatory certification. The program is part of a broader national effort to safely integrate eVTOL and similar technologies into U.S. airspace.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Matthew Holloway | Feb 28, 2026 | Economy, News
By Matthew Holloway |
The National Federation of Independent Business (NFIB) Arizona issued a policy statement this week urging state lawmakers to prioritize tax certainty for small businesses in the upcoming legislative session.
In a press release, NFIB Arizona urged Arizona policymakers to “take action and align Arizona’s income tax code with the small business provisions that are permanent in federal law,” and consider tax policy changes this year. The group argued that stable and predictable tax policy is essential for small businesses to plan, invest, and grow.
NFIB Arizona also highlighted concerns about potential tax increases and shifting tax policy, emphasizing that uncertainty in state taxes could discourage investment and expansion by small businesses across Arizona. The organization represents thousands of small business owners in the state.
In its release, NFIB Arizona pointed to the Arizona House and Senate GOP plan to protect taxpayers during the filing season, stating that lawmakers should avoid policies that could lead to higher costs or an unstable tax environment for small business operators.
“It’s good to hear that the legislative majority has the back of small business and will not allow for a surprise tax increase for the 2025 tax year,” NFIB State Director Chad Heinrich said in a statement. “That’s great for 2025, which is in the books.”
He added, “Small businesses are actively operating in 2026 without having the certainty needed to make investments now. We will continue to urge lawmakers to take action and align Arizona’s income tax code with the small business provisions that are permanent in federal law so that Main Street can operate and grow their businesses with certainty.”
NFIB Arizona’s statement follows an ongoing debacle at the Arizona State Capitol over the state’s conformity with 2025 federal tax changes between the Republican-led legislature and Democrat Governor Katie Hobbs. Hobbs vetoed a Republican bill, HB 2785, which would have brought Arizona’s income tax law into full conformity with the federal Internal Revenue Code on Feb. 12. The group said tax certainty would help small businesses make long-term hiring and investment decisions.
At the time, the NFIB wrote in a statement, “Twice, the Legislature has taken responsible action to protect hardworking Arizonans from tax uncertainty. Twice, Governor Hobbs has chosen political gamesmanship instead—turning something as mundane as tax conformity into a partisan game.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
