by Staff Reporter | Apr 19, 2026 | News
By Staff Reporter |
The Maricopa County Board of Supervisors overstepped and must restore elections authority to Recorder Justin Heap, according to a new court ruling.
The Maricopa County Superior Court rejected the board of supervisors’ argument in a new ruling issued on Friday in Justin Heap v. Thomas Galvin, et al. The court said the board does not enjoy “plenary” authority over election administration. Judge Scott Blaney ruled this view wasn’t consistent with Arizona law.
“The Board’s general authority does not override specific statutory delegations to other county officers,” stated Blaney. “The Legislature has authority over the conduct of elections and determines the extent to which the Board may conduct them. The Board may not override these specific allocations by invoking general supervisory authority.”
The court opted for a more balanced view of the law in which both the board and recorder have duties expressly given in elections administration. Blaney’s ruling interpreted Arizona law to reflect that the board holds only those powers expressly delegated to it. The same goes with the recorder.
“Where a valid delegation of authority exists, the delegation must clearly delineate the designated agency or officer,” said Blaney. “Arizona’s election statutes clearly delineate the Recorder as the designated officer for the 111 functions assigned to the ‘recorder or other officer in charge.’ The Board cannot substitute itself for the Recorder without either the Recorder’s consent or express legislative authorization.”
With this view, Blaney said the board had a duty to release withheld funding for those necessary expenses for which Maricopa County Recorder Justin Heap has fought for months. The Arizona legislature appropriated $4.1 million from the state general fund for the recorder’s office for elections-related operations. That funding hasn’t been spent.
Blaney also ordered the board to abstain from weaponizing its budgetary authority as a bargaining chip. Blaney went one step further to preserve Heap’s statutory authority, specifying that the board couldn’t exercise those election funds designated to his office without his consent.
As a major part of restoring the power balance, Judge Blaney ordered the board to either return control of IT staff, servers, databases, software, and elections systems to the recorder’s office, or to fund their immediate replacement.
Should the board fail to restore Heap’s functions, Blaney warned that disenfranchisement could occur.
“[T]he Board has acted unlawfully and exceeded its statutory authority by seizing the Recorder’s personnel, systems, and equipment and refusing to return them to the Recorder’s control[,]” said Blaney. “The evidence at trial established that the Recorder’s inability to exercise meaningful control over election systems and staff will likely cause concrete operational harms, including inability to timely process provisional ballots under A.R.S. § 16-134, resulting in voters being denied tabulation of the full ballots that they had voted and to which they were entitled. These harms will not resolve and may likely increase absent court intervention, particularly as general election cycles approach.”
Immediately following the ruling, Heap declared his victory in a press release. Heap credited America First Legal along with attorney and state representative Alexander Kolodin (R-LD3) for the favorable ruling.
“The court confirmed that the Board cannot override state law, use funding as leverage, or take control of election duties assigned to the Recorder,” said Heap. “This ruling restores both the authority and the resources necessary for my office to do its job.”
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Staff Reporter | Apr 19, 2026 | News
By Staff Reporter |
Attorney General Kris Mayes is pushing a false narrative about Gov. Katie Hobbs’ leadership prowess, says Senate President Warren Petersen.
Mayes criticized Petersen over his recent interview remarks revealing the governor has refused to meet with legislative leadership to continue budget negotiations.
“Short memory,” said Mayes in a post with a picture of a 2021 headline describing former Republican governor Doug Ducey’s refusal to sign bills until a budget was approved.
The Republican representing LD14 retorted that Ducey continued to negotiate pending approval of the budget.
Unlike Ducey, Petersen said Hobbs hasn’t been willing to meet with the leaders of the Republican-led legislature at all unless they conform to her plan.
“Ducey didn’t walk away from the negotiating table like Hobbs did,” said Petersen. “We continued to meet with him even though he implemented a bill moratorium. Not the same.”
On Monday, Hobbs said she would veto all bills until Republicans publicized their budget plans.
“I’m ready to talk, but I can’t negotiate with politicians who refuse to show the public their plans,” said Hobbs. “The legislative majority needs to put forward their budget proposal and then join me in good faith negotiations so we can pass a bipartisan, balanced budget like we’ve done the past three years.”
Petersen explained in a Wednesday interview with KTAR that Hobbs wanted to balance the budget based on potential future funding to be accrued from the renewal of Proposition 123 — when, if ever, that comes to pass.
The proposition, passed by voters in 2016, pulled $300 million in annual revenue for K-12 funding from the State Land Trust Permanent Fund. It expired last summer, and the legislature still hasn’t agreed on a replacement renewal plan to put before the voters.
“[Hobbs] basically wanted us to balance something off of Prop 123, something that would have to pass later. We said that was irresponsible, and so she threw a temper tantrum and walked away from budget negotiations,” said Petersen.
Last month the Arizona Senate President and Arizona House Speaker issued a joint statement accusing the governor of “distorting the facts” on budget negotiations.
Part of Hobbs’ plan would “dramatically increase” the funds pulled from Arizona’s Public Land Trust, halving it over the next 20 years and jeopardizing the trust’s intended function to fund K-12 education in the long-term.
“This is not a solution. It is a long-term raid on a critical resource,” said the pair. “We’ve put forward a responsible plan that cuts taxes for working families and funds schools without gimmicks. She walked away from the table because her math doesn’t work.”
What’s more, the president and speaker said the governor’s proposed budget would add $1.5 million more in debt.
Hobbs’ communications director, Christian Slater, offered a different view of their budget plan. He claimed the governor’s proposed budget would lower costs, invest over $1.5 billion in public education, cut taxes for the middle class, and end tax breaks for data centers.
“[Republicans] know [their budget proposal is] unbalanced, unserious, and puts billionaires and special interests ahead of everyday working families,” said Slater. “Legislative Republicans must come clean with the people of Arizona and stop hiding their partisan and unbalanced budget from public scrutiny.”
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Ethan Faverino | Apr 19, 2026 | Economy, News
By Ethan Faverino |
The National Federation of Independent Business (NFIB) released a new report detailing the significant economic benefits and tax savings Arizona’s 706,640 small businesses will realize now that the 20% Small Business Tax Deduction has been made permanent.
The report also outlines additional federal tax relief measures signed into law that will support small business growth across the state.
According to the report, making the deduction permanent is projected to generate 26,000 new jobs annually in Arizona over the next 10 years, along with an annual increase in state GDP of $1.4 billion during the first decade. After 2035, the benefits grow even larger, with an expected $2.9 billion annual increase in state GDP and 49,000 new jobs created each year.
Nationally, the permanent deduction is expected to add 1.2 million jobs and $75 billion to U.S. GDP each year for the first 10 years, rising to 2.4 million jobs and $150 billion in annual GDP growth beyond 2035.
“Making the 20% Small Business Deduction permanent was a landmark win for Main Street — and Arizona small businesses are already seeing that benefit,” stated NFIB State Director Chad Heinrich. “But the conformity fight isn’t over, and every provision Arizona fails to adopt is a tax increase on hardworking small business owners.”
Since 2017, the Small Business Tax Deduction has allowed pass-through businesses to deduct up to 20% of their qualified business income. This relief has enabled small businesses to expand operations, hire more workers, invest in employees, and strengthen their communities. The deduction was originally scheduled to expire at the end of 2025, which would have resulted in a significant tax increase on nine out of ten small businesses.
On July 4, 2025, President Trump signed legislation making the 20% Small Business Tax Deduction permanent. This action provides long-term certainty for small business owners, allowing them to retain more of their earnings to reinvest in their operations rather than sending additional funds to federal and state governments. It also helps level the competitive playing field against larger corporations.
In addition to the 20% deduction, the legislation includes several other key provisions. The Section 179 small-business expense deduction was doubled from $1.25 million to $2.5 million and will now be indexed for inflation, allowing businesses to immediately deduct the full cost of qualifying equipment and property.
The 100% bonus depreciation under Section 168(k) was permanently restored, enabling businesses to fully deduct the cost of qualified property in the year it is placed in service rather than spreading depreciation over many years.
Lastly, the estate tax exemption was permanently increased to $15 million for individuals and $30 million for married couples filing jointly, with inflation adjustments. This change helps family-owned small businesses avoid being forced to sell or liquidate assets to pay taxes upon the owner’s death.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Apr 18, 2026 | News
By Matthew Holloway |
U.S. Attorney Timothy Courchaine said statements by Arizona Attorney General Kris Mayes and Secretary of State Adrian Fontes regarding a federal election investigation raise “valid concerns of obstruction of justice and witness tampering” in response to a referral from Arizona Senate President Warren Petersen.
In a letter dated April 14, Courchaine wrote that he had received Petersen’s correspondence and shared the Senate president’s desire “to work together across all levels of government to ensure fair and free elections.” Courchaine added that his office was “carefully reviewing the facts” surrounding communications from Mayes and Fontes regarding the investigation.
Courchaine wrote that statements from the attorney general and secretary of state “undermine the federal grand jury’s constitutionally enshrined right to investigate violations of federal law or ensure no such crime occurred.” He said the federal investigation is aimed at confirming that “only lawful citizens are registered and voting in federal elections” after state election officials disclosed registration errors that predated the 2024 election. Courchaine also wrote that the actions of the two state officials “raise valid concerns of obstruction of justice and witness tampering under Title 18 of the United States Code.”
Petersen first referred Mayes and Fontes to the U.S. Attorney’s Office on April 7, alleging that both officials attempted to interfere with a federal grand jury investigation tied to election records from the Arizona Senate’s 2021 review. Petersen accused the officials of obstruction of justice and witness tampering after they warned county election officials against complying with federal requests for election records.
According to Petersen’s referral letter, the Arizona Senate complied with a federal grand jury subpoena served by the FBI in March seeking records related to the 2020 election. Petersen said the Senate produced the records after obtaining a legal opinion from the law firm Snell & Wilmer, concluding that compliance with the subpoena was required under federal law. The legal opinion stated that refusing to comply with the subpoena could have exposed the Senate and state officials to sanctions and that attempts to interfere with compliance could potentially constitute obstruction of justice.
The Snell & Wilmer opinion cited by Petersen argued that federal grand jury subpoenas carry broad investigative authority and supersede conflicting state privacy laws under the Supremacy Clause of the U.S. Constitution. The opinion also stated that state laws cited by Mayes and Fontes did not excuse noncompliance with a federal subpoena and that federal courts have routinely compelled compliance despite state confidentiality statutes.
Petersen has argued that a March joint letter sent by Mayes and Fontes to county recorders, warning that compliance with certain federal requests could violate state and federal law, amounted to an attempt to interfere with the federal investigation. In those letters, the attorney general and the secretary of state advised county officials that disclosing certain voter registration records could be illegal under privacy protections in Arizona law.
Mayes previously responded to Petersen’s referral in a written statement, statingthat he “inexplicably remains an election denier six years later.”
Petersen is running in the Republican primary for Arizona Attorney General and, if nominated, would face Mayes in the 2026 General Election.
A Gray House poll of 400 likely Republican voters and 450 likely general election voters found that a majority of those polled for the primary are undecided, with Petersen leading at 15%, but when the sample group was briefed on candidate backgrounds, Petersen becomes the clear leader at 57% compared to single-digits for other GOP contenders.
In the general election, Petersen trails Mayes by just 2 points at 42% to 44%, bringing the race well within the poll’s 4.6% margin of error.
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 Staff Reporter | Apr 18, 2026 | News
By Staff Reporter |
The Maricopa County Superior Court has ruled that the leading independent gubernatorial candidate does qualify for the ballot.
Hugh Lytle, an independent under the No Labels Party, announced his victory on Wednesday. Lytle is a Scottsdale businessman: founder and managing partner of El Toro Ventures, founder and board member of Equality Health, co-founder and former CEO of Univita Health, and co-founder and former president of Axia Health.
“These legal tricks to find technicalities to keep an independent off the ballot is exactly why so many people have lost faith in our system,” said Lytle. “When someone even suggests putting people ahead of parties and special interests, the system tries to shut it down. But this time, it didn’t work.”
In a statement given to the media, Lytle claimed the legal challenge against him was rooted in Gov. Katie Hobbs feeling threatened by his candidacy. Lytle has claimed Hobbs was behind the lawsuit because her former chief legal advisor, Sambo “Bo” Dul, was one of the attorneys representing the case against him.
“The judge’s decision is not a personal win for me. It’s a win for the voters, for democracy and for Arizona’s growing Independent movement which gains momentum every day,” said Lytle. “Perhaps that’s why Gov. Hobbs is afraid to face me in an election.”
At contest was the validity of Lytle’s petition sheets, which used a UPS store address located in one district rather than his residential address located in a separate district. Maricopa County Superior Court Judge Michael Mandell ruled that district locations didn’t matter for statewide races.
“Mr. Lytle is running for statewide office, not district, precinct, or municipal office. Both the UPS store address and his physical address are in Scottsdale,” stated Mandell. “There is no dispute that Mr. Lytle has been an Arizona resident for many years, that he resides in Maricopa County, and that he satisfies the constitutional and statutory residency requirements for Governor.”
Lytle faced multiple challenges to his candidacy, one from his primary opponent Teri Ann Hourihan, and another from a former Democratic Party legislative district leader, Craig Beckman.
Lytle pledged to not take any salary as governor. He announced his intent to donate his entire first-year salary as governor to Teen Lifeline, and then the remaining years to other charities.
The No Labels Party attempted to brand itself as the Arizona Independent Party with the help of Secretary of State Adrian Fontes, but the Maricopa County Superior Court ruled against the move as an unlawful “political bait and switch” last month.
There were 21 candidates who filed statements of interest under the No Labels Party, including three for governor (Lytle, Hourihanm and Alan White).
Lytle’s platform includes establishing a mentor corps for youth entrepreneurs, expanding state charity donation benefits, expanding tax deductibility and charity benefits to cover youth sports, increasing teacher pay, limiting school choice by income, and reducing Medicaid costs.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Ethan Faverino | Apr 18, 2026 | Economy, News
By Ethan Faverino |
Small business optimism weakened in March as a sharp drop in reported profit trends and softening expectations for business conditions weighed on the outlook, according to the latest survey from the National Federation of Independent Business (NFIB).
The NFIB Small Business Optimism Index fell 3 points to 95.8, slipping below its 52-year historical average of 98 for the first time since April 2025. At the same time, the Uncertainty Index rose 4 points to 92, significantly above its long-term average of 68.
“The 20% Small Business Deduction and other supportive small business tax provisions in the Working Families Tax Cut Act have had many positives for small business owners,” stated NFIB Chief Economist Bill Dunkelberg. “However, the dramatic spike in oil prices has spooked consumers and owners alike. Small business owners are having to absorb those higher input costs and pass them along to their customers.”
Key Declines Drive the Drop in Optimism
The decline in the Optimism Index was driven primarily by two key components: the frequency of reports of positive profit trends, which plunged 11 points to a net negative 25%—the largest contributor to the overall drop—and the net percentage of owners expecting better business conditions, which fell 7 points to a net 11%, marking the third consecutive monthly decline and the lowest reading since October 2024.
Other notable movements included:
Employment Index – Fell from 103.5 to 101.6. While still above the 2025 average (101.2) and historical average (100), the 1.9-point decline signals moderation in labor market conditions.
Capital outlays – Only 16% of owners plan capital investments in the next six months, down 2 points and the lowest level since November 2009.
Sales – A net negative 5% reported higher nominal sales in the past three months (down 6 points), ending four months of improvement. Expectations for higher real sales volumes over the next quarter eased to a net 7%.
Inventory – Plans for inventory investment turned more cautious, reaching a net negative 5%, the lowest since May 2024.
Labor Market and Compensation Trends
Hiring activity showed signs of cooling. A seasonally adjusted 32% of owners reported job openings they could not fill (down 1 point), though this remains well above the historical average of 24%. Skilled worker openings stood at 27%, while unskilled openings rose slightly to 12%.
A net 12% of owners plan to create new jobs in the coming three months, unchanged from February and near the long-term average. Compensation pressures eased modestly: a net 33% reported raising compensation; plans to raise compensation in the next three months fell 4 points to a net 18%—the lowest since July 2025. Despite the declines, both actual and planned compensation remain above historical averages.
Pricing, Supply Chains, and Business Health
Actual price increases ticked up, with a net 25% of owners raising average selling prices (up 1 point and well above the historical average). Planned price hikes, however, declined 4 points to a net 24%. Supply chain disruptions affected 62% of owners to some degree (up 3 points), with most reporting only mild or moderate impacts.
When rating the overall health of their businesses, 13% called it “excellent” (up 1 point), 51% “good” (down 4 points), 30% “fair” (up 4 points), and 4% “poor” (down 1 point).
Top Business Problems and Credit Conditions
Taxes remained the single most important problem for 19% of owners (unchanged and still ranked #1), followed by labor quality at 15% (#2), and inflation at 14% (#3).
Credit conditions stayed relatively stable but tight. The net percent expecting easier credit held at negative 5%, while the average interest rate on short-term loans edged down to 7.9%. Only 24% of owners reported borrowing regularly, a historically low level. Just 11% viewed it as a good time to expand (down 4 points and below the historical average).
“Small business owners are certainly keeping a close eye on the price of oil,” added NFIB State Director Chad Heinrich. “As those cost pressures grow and Arizona’s officeholders dawdle on tax conformity, small businesses are doing everything they can to minimize price increases for their consumers and stay competitive. It’s essential that state policymakers give our small businesses certainty and fully conform with the provisions of the Working Families Tax Cut Act.”
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
