Yavapai County officials are proposing 2.9 percent increases in the county’s primary property tax levy and the Yavapai County Free Library District’s secondary property tax levy as part of the fiscal year 2027 budget process.
The two proposed increases would generate a combined $2.1 million beyond the prior year’s levies, excluding revenue from new construction. The Yavapai County Board of Supervisors will hold a public hearing on the proposals at 9 a.m. on July 27, concurrently with the county budget hearing.
The county is proposing a $1,942,974 increase in primary property taxes over the prior year’s level, excluding taxes generated by new construction.
Under the county’s example, the primary property tax on a home valued at $100,000 would be $164.43 under the proposal. The tax would have been $159.84 without the increase, a difference of $4.59.
The Yavapai County Free Library District is separately proposing a $160,856 increase in secondary property taxes, also representing a 2.9 percent increase over the previous year’s level.
The library district’s secondary property tax on a $100,000 home would rise from $13.08 to $13.46, an increase of 38 cents.
Under the two notices’ examples, the county and library district taxes on a $100,000 home would total $177.89, which is $4.97 more than the $172.92 that would be owed without the proposed levy increases.
The proposed increases do not include additional tax revenue generated by new construction. The county’s calculation also excludes changes associated with voter-approved bonds, budget overrides, and other property tax levies, while the library district’s calculation excludes voter-approved bonded indebtedness.
Including revenue attributable to new construction, the county’s tentative fiscal year 2027 budget lists a total primary property tax levy of approximately $69.6 million, up from $66.2 million in fiscal year 2026. The Free Library District’s total secondary levy would increase from approximately $5.42 million to $5.7 million.
The proposed county primary property tax rate would remain at $1.6443 per $100 of net assessed valuation. The Free Library District rate would also remain unchanged at 13.46 cents per $100 of net assessed valuation.
The levies can increase while the rates remain unchanged because the taxable value of property within the county has grown. Arizona’s truth-in-taxation laws compare the proposed levy on existing property with the prior year’s levy after excluding the amount attributable to new construction.
Under Arizona Revised Statutes §42-17107, counties must publish a notice and hold a public hearing when a proposed primary property tax levy on existing property exceeds the previous year’s amount. The governing body must consider the increase through a roll-call vote.
A similar requirement applies to county free library districts under Arizona Revised Statutes §48-254. The statute requires the library district’s truth-in-taxation hearing to be held concurrently with the county’s budget adoption proceedings.
The county’s tentative budget lists approximately $491.3 million in expenditures across all funds for fiscal year 2027, compared with an adopted or adjusted fiscal year 2026 budget of approximately $424.4 million. The proposed budget includes $185.2 million in general fund expenditures and $301.8 million in special revenue fund expenditures.
The hearing will be held in the Board of Supervisors Hearing Room at 1015 Fair Street in Prescott, with a second location available at 10 S. Sixth Street in Cottonwood.
Rep. Abe Hamadeh (R-AZ08) praised a new $100 billion investment by Taiwan Semiconductor Manufacturing Company (TSMC) that will add four advanced semiconductor fabrication plants at the company’s north Phoenix campus and raise its total planned Arizona investment to $265 billion.
The White House and Department of Commerce announced the expansion Thursday, saying it resulted from a trade and investment agreement reached between the United States and Taiwan earlier this year.
The four additional facilities will bring TSMC’s planned American footprint to 12 advanced semiconductor manufacturing and packaging facilities, all located in Arizona. The Arizona Commerce Authority said the expanded Phoenix campus is now expected to include 10 semiconductor fabrication plants, two advanced packaging facilities, and a research and development center.
Hamadeh, whose Eighth Congressional District includes the TSMC campus, praised President Donald Trump’s manufacturing agenda and said the project would create new employment opportunities for residents of the West Valley.
“These targeted investments in Arizona’s Eighth Congressional District aren’t just welcome — they’re exactly the kind of bold, America-First moves our district needs,” Hamadeh said in a Thursday announcement.
“My constituents are ready to work, ready to build, and hungry for the high-paying jobs these projects will deliver right here in the Grand Canyon State,” he added.
Hamadeh said he believes veterans should receive priority for employment opportunities connected to the expansion. His office has made economic development and workforce growth central parts of what it describes as a “Peace through Prosperity” agenda.
Commerce Secretary Howard Lutnick said the investment would create tens of thousands of American jobs. The Commerce Department said the expansion is expected to generate significant construction and high-technology employment while increasing domestic production of advanced semiconductors.
TSMC Chairman and CEO C.C. Wei said the expansion is intended to meet growing demand from the company’s American customers and strengthen the domestic semiconductor supply chain. The latest commitment follows a $100 billion expansion announced in March 2025, which raised TSMC’s planned Arizona investment from $65 billion to $165 billion. That expansion added three fabrication plants, two advanced packaging facilities, and an R&D center to the company’s original plans.
TSMC initially announced a $12 billion Phoenix facility in 2020. The company expanded the project to $40 billion in 2022 with plans for a second fabrication plant and increased the commitment to more than $65 billion in 2024 by adding a third plant. The two initial facilities were projected to create approximately 4,500 direct TSMC jobs, while the first three were projected to create 6,000 direct manufacturing jobs and more than 20,000 construction jobs.
TSMC currently employs more than 3,500 people in Arizona. The company’s first Arizona fabrication plant began high-volume production using its N4 manufacturing process during the fourth quarter of 2024. Construction of the second plant’s main structure was completed in 2025, with production using N3 technology targeted for the second half of 2027.
Construction of the second plant’s main structure was completed in 2025, with production using N3 technology targeted for the second half of 2027.
The company broke ground on its third plant in April 2025. That facility is scheduled to manufacture semiconductors using TSMC’s N2 and A16 process technologies, with production targeted to begin by the end of the decade. Before the newest expansion, the Commerce Department finalized an award of up to $6.6 billion in direct funding and made up to $5 billion in loans available under the federal CHIPS incentive program to support TSMC’s first three Arizona plants. The facilities are intended to produce some of the world’s most advanced semiconductors and provide American technology companies with access to domestically manufactured chips.
Hamadeh’s office said the expansion would help establish Arizona’s Eighth Congressional District as the “Silicon Desert” and strengthen the country’s position in semiconductor and artificial intelligence manufacturing.
“This major investment is further proof that the Trump Administration is laser-focused on restoring American manufacturing dominance,” Hamadeh said.
The annual inflation rate in the Phoenix metropolitan area slowed to 2.8% in June, remaining below the national rate as falling energy prices and comparatively modest shelter-cost growth eased pressure on the region’s Consumer Price Index (CPI).
The Phoenix-area CPI increased 2.8% during the 12 months ending in June, down from 3% in April, according to a new Common Sense Institute (CSI) analysis of federal inflation data. National consumer prices increased 3.5% over the same annual period.
CSI attributed much of the local decline to energy prices, which fell 6.4% during June after increasing 26.5% between February and May. The earlier increase helped drive Phoenix’s annual inflation rate from 1.7% in February to 3% in April, according to CSI.
Inflation has slowed but prices are still much higher than they were five years ago.
Since June 2019, prices in the Phoenix metro have increased 33.4%, adding an estimated $1,673 per month to the budget of a typical Arizona household.
— Common Sense Institute Arizona (@CSInstituteAZ) July 15, 2026
Energy remained more expensive than it was one year earlier. The U.S. Bureau of Labor Statistics reported that Phoenix-area energy prices were up 14.1% year-over-year in June, while gasoline prices were 26.2% higher. The local energy index declined 4.4% over the two-month period ending in June, including a 10.7% decrease in gasoline prices.
Nationally, the CPI declined 0.4% from May to June on a seasonally adjusted basis, marking the largest monthly decrease since April 2020, according to the BLS national inflation report. The national energy index fell 5.7% during June, including a 9.7% decline in gasoline prices. National consumer prices remained 3.5% higher than one year earlier, while energy prices were up 15.7%.
Shelter costs also helped keep Phoenix inflation below the national rate. Shelter prices increased 1.4% year-over-year in the Phoenix area, compared with 3.3% nationally. CSI said home prices have cooled in Arizona during the past two years while national home prices continued to increase, reducing shelter’s contribution to Phoenix-area inflation.
CSI said the gap between Phoenix and national shelter inflation has narrowed during the past six months as housing markets elsewhere began to cool. When shelter costs are excluded, CPI growth in Phoenix and across the country is nearly identical, according to CSI.
Phoenix-area food prices increased 2.2% year-over-year in June. The local index excluding food and energy rose 2%, while the comparable national index increased 2.6%. CSI separately calculated that the Phoenix index for all items excluding energy increased 2% from the previous year, up from 1.7% in April.
Among the 23 metropolitan areas compared by CSI using the latest available BLS data, Phoenix recorded the fifth-slowest year-over-year inflation rate. The region had posted the fourth-slowest rate among the 14 metropolitan areas reporting April figures.
The recent slowdown follows several years of substantial price increases. CSI calculated that Phoenix-area prices have risen 33.4% since June 2019, compared with a 30.3% national increase. According to the institute, the increase is “adding approximately $1,673 in monthly expenses to the average Arizona household.”
From June 2024 through June 2026, cumulative Phoenix-area inflation was 3%, below the approximately 4% increase that would result from prices growing steadily at an annual rate of 2%, according to CSI.
CSI cautioned that changes in individual categories can have an outsized effect on the headline CPI because the index is a weighted average of price movements across goods and services. CSI identified volatile energy prices as a significant driver of both the local and national figures and estimated that alternative measures place the Phoenix area’s underlying inflation rate closer to 2% than the 2.8% headline figure.
Consumer prices declined on a month-to-month basis in June while annual inflation continued to moderate, according to the Joint Economic Committee’s latest Monthly Inflation Update.
The report found that the Consumer Price Index for All Urban Consumers (CPI-U), the government’s primary measure of inflation, fell 0.42% from May to June. On an annual basis, consumer prices were 3.53% higher than in June 2025, down from the 4.25% year-over-year inflation rate recorded in May.
Core inflation, which excludes the more volatile food and energy categories, also eased. Core CPI declined 0.02% during June and increased 2.59% over the past 12 months, marking a slowdown from the previous month’s annual rate of 2.85%.
Energy prices were a major factor in the monthly decline. The energy index fell 5.71% in June after increasing 3.88% in May. Despite the monthly decrease, energy prices remained 15.70% higher than a year ago.
Food prices continued to rise modestly, increasing 0.21% during the month and 3.01% over the past year.
Inflation continued to vary across the country. The Northeast recorded the highest annual headline inflation rate at 4.3%, followed by the Midwest at 3.8%. The South and West each posted annual inflation rates of 3.2%
The June report also showed that workers experienced modest gains in purchasing power as inflation-adjusted wages increased. Real average weekly earnings for all private-sector employees rose 0.77% from May, while real average hourly earnings increased 0.80%.
For production and nonsupervisory employees, real average weekly earnings increased 0.55% and real average hourly earnings rose 0.81%.
The Joint Economic Committee noted that “real” earnings reflect wages after adjusting for inflation making them a better indicator of workers’ purchasing power. Weekly earnings are considered a more comprehensive measure of income because they account for changes in both hourly pay and hours worked.
The report also showed inflation came in below expectations. According to forecasts from the Cleveland Federal Reserve, economists had projected monthly headline inflation of a 0.06% decline and annual inflation of 3.92%. Instead, headline CPI fell 0.42% in June and the annual rate registered 3.53%, indicating inflation cooled more than anticipated.
Compared with June 2025, annual inflation remained elevated but continued its gradual moderation. Headline inflation stood at 3.53%, food inflation at 3.01%, core inflation at 2.59%, and energy prices remained the fastest-growing component, rising 15.70% over the past year despite their sharp monthly decline.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
Arizona taxpayers could face nearly $200 million in additional costs if the state fails to reduce its Supplemental Nutrition Assistance Program (SNAP) payment error rate in the coming years.
Data from the U.S. Department of Agriculture shows Arizona’s SNAP payment error rate reached 10.8% in Fiscal Year 2025, ranking 33rd nationally and rising from 8.84% in Fiscal Year 2024.
Under changes enacted through the One Big Beautiful Bill Act (H.R. 1), states with SNAP payment error rates below 6% by Fiscal Year 2028 will avoid cost-sharing requirements with the federal government.
States with error rates between 6-8% must provide a 5% match, those between 8-10% a 10% match, and states exceeding 10% a 15% match.
If Arizona’s error rate remains at 10.8% in Fiscal Year 2028, the state would be subject to the highest matching requirement.
Based on Fiscal Year 2025 figures, eight states recorded error rates below 6% (Idaho, Nebraska, Nevada, South Dakota, Utah, Vermont, Wisconsin, and Wyoming), while six fell between 6-8%. Another 16 states posted rates between 8-10%, and 20 states exceeded 10%.
Zach Milne, senior economist at Common Sense Institute Arizona said the state has a strong incentive to improve its performance.
Mile told The Center Square, “Improving program accuracy strengthens program integrity and helps the state avoid potentially significant federal cost-sharing penalties.”
He described Arizona’s elevated error rate as a relatively recent development, noting that the state’s rate stood at 5.2% in Fiscal Year 2019 — below the new federal threshold.
The Arizona Legislature passed several measures during the 2026 session aimed at lowering the state’s SNAP payment error rate, but they were vetoed by Governor Hobbs.
Senate Bill 1002 would have expanded eligibility verification tools for the Arizona Department of Economic Security, while Senate Bill 1331 proposed work requirements for SNAP recipients age 60 and younger.
Senate Bill 1334 would have barred the department from seeking work-requirement waivers for able-bodied adults without dependents. House Bill 2206 sought to require the state to reduce its SNAP payment error rate to below 3% by 2030.
In her veto messages, Hobbs argued that the legislation duplicated ongoing efforts by the Department of Economic Security to improve accuracy, including enhanced eligibility verification, additional staffing and training, and investments in technology.
“SNAP is the most robust and effective anti-hunger tool we have in Arizona-I know this firsthand,” Hobbs said in her veto letter of the three Senate Bills. “It’s also the most secure, thanks to strong anti-fraud measures and oversight. Instead of creating more needless frustration for Arizona families, I invite you to join me in actually lowering costs for them.”
She also criticized H.R. 1 for imposing unfunded mandates that she said have strained agency resources, noting that she allocated $7.5 million to increase the department’s capacity. Hobbs maintained that the vetoed bills would have added further unfunded requirements without providing resources for implementation or modernization.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
The Joint Economic Committee (JEC) released its July 2026 Monthly Debt Update, reporting that the total gross national debt reached $39.38 trillion as of July 3, 2026.
Debt held by the public totaled $31.68 trillion, while intergovernmental debt stood at $7.71 trillion.
According to the JEC, the nation’s debt has risen by $2.81 trillion over the past year and by $10.90 trillion over the past five years.
During the previous 12 months, the debt increased at an average pace of $7.71 billion per day, $321.15 million per hour, $5.35 million per minute, or $89,208.39 per second.
The annual increase equates to $8,204.76 per person and $20,814.36 per household, while total gross national debt now amounts to $115,188 per person and $292,217 per household.
Based on the average daily growth rate observed during the past three years, the United States is projected to surpass $40 trillion in gross national debt around October 2026. At the current pace, each additional trillion dollars of debt would accumulate in approximately 155 days.
The report also highlights the growing cost of servicing the federal debt. As of June 2026, the average interest rate on the total marketable national debt was 3.411% up from 3.375% one year earlier and 1.472% five years ago.
Over the past 12 months, the federal government paid $294.32 billion in interest to trust funds, averaging $24.53 billion per month.
According to projections from the Congressional Budget Office, net interest payments will account for 13.95% of federal outlays in FY26 rising to 14.25% in FY27, and 14.94% in FY28.
Treasury securities remain the primary component of publicly held debt. Of the $31.68 trillion in public debt outstanding, $16.06 trillion is held in notes, $6.69 trillion in bills, $5.45 trillion in bonds, and $3.49 trillion in other securities.
Treasury demands remain robust, with June 2026 bid-to-cover ratios of 2.72 for four-week bills, 2.40 for 10-year notes, and 2.30 for 30-year bonds.
Approximately 33% of publicly held marketable debt is scheduled to mature within the next 12 months, while the average maturity of marketable debt stood at 70 months as of March 2026.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
