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 Staff Reporter | Apr 24, 2025 | News
By Staff Reporter |
A New Mexico man detained by Arizona immigration enforcement after he falsely claimed he was an illegal immigrant has stirred up media coverage critical of the Trump administration.
Jose Hermosillo, a 19-year-old from Albuquerque, remained in border detention for nine days earlier this month until his family brought proof of his citizenship.
In a sworn affidavit released by the Department of Homeland Security (DHS), Hermosillo claimed he was a citizen of Mexico who had no claim to being a citizen of the United States and no documents issued by a legal authority permitting him to be in the United States. Hermosillo also claimed to the immigration officer that he had entered the country illegally “in the desert” for the purpose of obtaining work in Tucson over the next 20 years.
DHS issued a statement clarifying Hermosillo approached Border Patrol in Tucson and made these false statements.
“Mr. Hermosillo’s arrest and detention were a direct result of his own actions and statements,” said DHS.
Hermosillo’s family claimed to Arizona Public Media that Hermosillo “got lost” while walking near the Border Patrol facility in Tucson. At the time of the incident, Hermosillo was visiting family in Tucson with his girlfriend and their infant child. The family’s account conflicts with the DHS affidavit, in that the family maintained that Hermosillo told Border Patrol agents that he was a U.S. citizen.
Governor Katie Hobbs called Hermosillo’s detention “unacceptable” in a post on X and promised to receive answers from DHS.
“I will be in contact with @DHSgov and expect immediate answers for their wrongful detention of an American citizen,” said Hobbs.
Likewise, Attorney General Kris Mayes said on X that she contacted ICE for answers on Hermosillo’s detention.
“It is wholly unacceptable to wrongfully detain US citizens,” said Mayes.
Mayes’ post was issued about an hour after DHS assistant secretary Tricia McLaughlin issued a statement detailing Hermosillio’s false confession of illegal immigration, and Hobbs’ post was issued hours after DHS released the sworn affidavit revealing Hermosillo’s remarks pertaining to his citizenship.
A court dismissed Hermosillo’s case without prejudice last week.
Hermosillo’s case wasn’t the only false confession of immigration status to make national news this week.
Two college-aged German women claimed they were deported after arriving in Hawaii to begin a trip exploring several states and Costa Rica. DHS dismissed these claims as reported by multiple outlets, revealing the two women were denied entry into the country for admitting their unlawful intention to work in the United States after falsely claiming they were only there to tour California under a Visitor visa and the Visa Waiver Program, respectively.
The response from DHS prompted the New York Post to delete their coverage portraying the women as victims of wrongful detention and deportation.
“Another false narrative. These travelers weren’t deported—they were denied entry after attempting to enter the U.S. under false pretenses,” stated DHS.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Matthew Holloway | Apr 24, 2025 | News
By Matthew Holloway |
In a post on Facebook, the Arizona Department of Public Safety Highway Patrol announced that two suspects were arrested after another train robbery in northern Arizona resulted in the theft of a shipment of Nike shoes. As reported by Fox 10 Phoenix, the arrest took place earlier that week along the Interstate 40 between Kingman and Williams, AZ.
In the press release issued Friday, the AZDPS stated, “Several days ago, Arizona State Troopers working I-40 between Kingman and Williams were notified of a train robbery. State Troopers located one of the involved vehicles and arrested the driver. Federal Law Enforcement Agents located a second vehicle and suspect and arrested them also. The two suspects were booked into jail on multiple charges.”
As reported by Fox, Arizona has seen an uptick in train robberies in recent months, with a prominent example coming in January, which saw investigators reveal ties to the Mexican Sinaloa Cartel. In congressional testimony, Republican Senator Todd Young of Indiana described the robbery saying, “Investigators have found ties to the Mexican cartel. On January 30 of this year, over $440,000 of Nike shoes were stolen off of a BNSF train. Air brakes were cut as it traveled on tracks north of Phoenix, Arizona. Federal officials have linked this to a federal cartel operating in Sinaloa.”
According to AZCentral, the cargo stolen last week also contained stolen Nike footwear, however, the full value of the stolen goods was not released as of this report. It is known, however, that both vehicles were “full of stolen Nikes,” per AZDPS.
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 | Apr 23, 2025 | News
By Matthew Holloway |
Arizona Congressman Abe Hamadeh (R-AZ-08) issued a statement Monday responding to reports which suggested that Secretary of Defense Pete Hegseth had shared “detailed information” about potential military strikes into Yemen and that President Trump is seeking his removal from office.
In the release, Hamadeh, in his capacity as a Member of the House Armed Services Committee, expressed in concurrence with President Trump that Hegseth enjoys his strong support and pointedly questioned “whether fake news reports about unrest in the ranks of the Department of Defense are intended to weaken our national security.”
In a post to X, the congressman wrote, “As a member of the House Armed Services Committee, I have full confidence in @PeteHegseth and his team at DoD. The fake news had its sights on him since he was first nominated, yet he’s been moving positive changes at lightning speed. Keep up the good work!”
Hamadeh reportedly urged news outlets nationwide to return to President Ronald Reagan’s motto of “’trust but verify,’ before publishing ‘news’ based on claims from individuals with no affinity for the facts or have nefarious motives.”
This would appear to reference a New York Times story’s reliance on “four people with knowledge” of an alleged Signal chat, which was purported to include Secretary Hegseth’s wife, brother, and personal attorney, and NPR’s similar reliance on an unnamed “U.S. official who was not authorized to speak publicly,” as a source for its story suggesting Hegseth’s imminent ouster.
Hamadeh’s office excoriated both outlets writing, “Few news outlets reported about the fact that the Biden Administration’s Department of Defense did not publicly disclose – in violation of the law – that one of the country’s two National Command Authorities, Defense Secretary Lloyd Austin, was unable to perform his duties.
“In contrast, it appears outlets are creating ‘news’ out of whole cloth, eroding trust in our national security baselessly to the benefit of enemies both foreign and domestic.
“Currently, a disconcerting debate is raging on social media as to what opinions and policy positions should and should not be allowed to be heard. Unlike others participating in that debate, a former U.S. Army Intelligence officer, would never call for censorship or for the silencing of opposing voices, but understands the effects of fake news and false narratives on the troops.
“Given the fact that recruiting is up across the board for our military service branches to a 15-year high and morale is up among the troops thanks to Secretary Hegseth, it is not unreasonable to suspect that those spreading clearly false rumors about Secretary Hegseth might have not have our country’s welfare in mind.”
Hamadeh concluded with an admonishment of “propogandists posing as journalists,” saying in full: “While some of us are sacrificing our time with our families and friends to tirelessly promote peace through strength, propagandists posing as journalists are trying to undermine our country by spreading lies.”
In a statement responding to the Times’ report, Department of Defense spokesman Sean Parnell issued a categoric denial of the allegations against Hegseth saying, “Another day, another old story—back from the dead. The Trump-hating media continues to be obsessed with destroying anyone committed to President Trump’s agenda. This time, the New York Times — and all other Fake News that repeat their garbage — are enthusiastically taking the grievances of disgruntled former employees as the sole sources for their article. They relied only on the words of people who were fired this week and appear to have a motive to sabotage the Secretary and the President’s agenda.
“There was no classified information in any Signal chat, no matter how many ways they try to write the story. What is true is that the Office of the Secretary of Defense is continuing to become stronger and more efficient in executing President Trump’s agenda.”
Questioned on the story by reporters during the annual White House Easter Egg Roll, President Trump told reporters on the South Lawn, “He is doing a great job. … Ask the Houthis how he’s doing.” He continued, “It’s just fake news. They just bring up stories. I guess it sounds like disgruntled employees. You know, he was put there to get rid of a lot of bad people.”
Hegseth himself told Fox News, “This is what the media does. They take anonymous sources from disgruntled former employees, and then they try to slash and burn people and ruin their reputations.”
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 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.
