by Matthew Holloway | Jun 27, 2025 | News
By Matthew Holloway |
As the City of Scottsdale stands poised to enact a staggering $2.2 billion budget, city leaders must now contend with a new lawsuit from the Goldwater Institute challenging the city’s controversial sales tax increase.
As of the council’s June 10th meeting, the city has reportedly agreed to spend up to $90,000 in taxpayer dollars on the outside law firm Osborne Maledon to defend it.
In June 2024, the Goldwater Institute challenged the newly approved 0.15% sales tax, which was pitched to voters as a “replacement tax,” for an unrelated, expired 0.2% Land Acquisition Tax.
Goldwater won that legal battle, “forcing the city to admit that it was raising, rather than lowering taxes,” according to a press release.
Under the Arizona Constitution, such a tax hike must be approved by at least 60 percent of voters, a threshold the city did not meet in the 2024 election. Scottsdale leaders, however, have enacted the tax.
On Friday, June 3rd, the Goldwater Institute filed a lawsuit against the city, panning the tax as “unconstitutional.” It stated that, “Supermajority rules help protect minority voices, prevent special-interest-driven decisions, and force governments to clean up their budgets before reaching for more of your money. Just like any responsible household, city, county, and state officials should look at how they’re spending first—not just always demand more, regardless of what the law and economic commonsense demand.”
Scott Day Freeman, writing for Goldwater added, “Scottsdale is ignoring the state’s constitutional mandate—requiring us to go to court yet again.”
City Attorney Sherry Scott’s summary to the city council stated, “The budget implications of not defending this case are $25 million per year for the next 30 years.” The law firm, earning approximately $912 per hour at the taxpayer’s expense, is fighting the Goldwater Institute’s efforts to seek an injunction that would stop the tax from taking effect on July 1st, along with a declaratory judgment that the tax is unenforceable.
Freeman said, “Our clients seek only a declaration that the tax is unlawful and an injunction to stop it being enforced. Our clients do not seek a refund or damages.”
Scottsdale spokesman Kelly Corsette stated, “The city is confident its ballot item and election result comply with the Arizona Constitution and all applicable election laws.” He claimed that “the 60% tax approval threshold does not apply to local ballot measures: it is in a section of the constitution that regulates statewide initiatives and referendums, not in the separate section of the constitution applicable to city initiatives and referendums.”
In its press release, the Goldwater Institute maintained that, “In 2022, Arizonans strengthened those protections by amending the Constitution to require any tax passed through a citizen initiative or referendum receive at least 60 percent approval to become law—a requirement that applies not just to statewide, but also to local ballot initiatives.”
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 | Jun 27, 2025 | Economy, News
By Jonathan Eberle |
A new bill aimed at securing the long-term future of Chase Field and keeping the Arizona Diamondbacks in downtown Phoenix is poised to become law, following bipartisan passage through the state legislature and encouraging signals from Governor Katie Hobbs.
House Bill 2704, sponsored by Representative Jeff Weninger (R-LD13), offers a funding solution for needed repairs and renovations at the publicly owned stadium without raising taxes. The plan allows state sales and income tax revenues already generated by the team and its events to be redirected for stadium upkeep.
“This is a smart, responsible solution that keeps the Diamondbacks where they belong—at Chase Field in the heart of our capital city,” said Rep. Weninger, who chairs the House Commerce Committee. “The costs will be covered by revenue generated through team activity, not by pulling from the pockets of Arizonans who never set foot in the stadium. We’re protecting jobs, preserving economic impact, and keeping our beloved World Champion Major League Baseball team in Phoenix—all without new taxes.”
Under the bill, the Arizona Diamondbacks have also pledged at least $250 million toward future improvements at Chase Field, adding to more than $200 million the team has already spent—despite not owning the venue.
With the team’s lease set to expire in 2027, lawmakers and stakeholders had faced mounting pressure to develop a long-term plan that would keep the Diamondbacks in Arizona. Supporters of HB2704 argue the bill strikes a balance between fiscal responsibility and economic investment by keeping tax dollars generated by the stadium circulating locally.
Derrick Hall, President and CEO of the Diamondbacks, praised the legislative effort. “I want to thank Representative Weninger, all of the supportive lawmakers, and Governor Hobbs for the leadership with HB2704,” Hall said. “The voting results and bipartisan enthusiasm clearly showed the need for funding for this economically generating public asset.”
Chase Field, which opened in 1998 and has hosted over 55 million fans, plays a significant role in downtown Phoenix’s economy. Lawmakers say the legislation ensures the stadium remains a viable and modern venue well into the future—without tapping into the general fund or creating new financial burdens for Arizona residents.
Governor Hobbs has expressed public support for the measure, and her signature is expected in the coming days. Once signed, the bill will take effect and begin shaping the next chapter for both the team and the stadium.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | Jun 26, 2025 | News
By Jonathan Eberle |
Arizona Governor Katie Hobbs on Tuesday vetoed a continuation budget passed earlier in the day by the state House of Representatives, sharply criticizing House Republicans for what she called “pointless political grandstanding” just days before the June 30 budget deadline.
The House-passed stopgap measure aimed to keep the government operating past the end of the fiscal year while negotiations continued over a full budget agreement. But Hobbs swiftly rejected the proposal, calling it a “sham budget” that threatens critical state services and derails the bipartisan progress already made in the Senate.
“For months, I worked with leaders of both parties, in both chambers, to craft a bipartisan, balanced, and fiscally responsible budget that the majority of Senate Republicans support,” Hobbs claimed in a statement. “That budget has pay raises for State Troopers and firefighters, cuts taxes on small businesses, invests in combatting Veterans homelessness, and makes childcare more affordable and accessible.”
The governor’s veto comes amid rising tensions between the House and executive branch. House Speaker Steve Montenegro (R-LD29) had framed the continuation budget as a responsible step to avoid a shutdown after the Senate-negotiated agreement failed to garner enough support in his chamber. “We owe it to the people we serve to take the time needed to get this right,” Montenegro said. “This continuation budget ensures state services remain funded while giving lawmakers the time to work toward a better, more responsible solution.”
Governor Hobbs, however, dismissed that reasoning and accused House Republicans of endangering essential state services for political gain. “I have long made clear that both of the partisan and reckless House Republican budgets are unacceptable,” she said. “They gut public safety, slash health care for Arizonans, harm businesses, fail to lower costs, and leave our Veterans out in the cold.”
With just five days remaining before the state’s fiscal year ends, the legislature remains without an approved budget. Hobbs urged lawmakers to abandon political brinkmanship and adopt the bipartisan budget already passed by the Senate.
“Now, it’s time for House Republican leadership to move past their political stunts and work productively with their colleagues before they force an unnecessary state government shutdown of their own creation,” she said.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | Jun 26, 2025 | News
By Jonathan Eberle |
A former longtime public servant in Santa Cruz County has been sentenced to a decade in federal prison after pleading guilty to stealing tens of millions in taxpayer funds. On Monday, U.S. District Judge Rosemary C. Márquez sentenced 63-year-old Elizabeth Gutfahr of Rio Rico to 120 months in prison, followed by three years of supervised release. In addition, she was ordered to pay roughly $51.8 million in restitution to Santa Cruz County and the United States Treasury.
Gutfahr, who served as county treasurer from 2012 to 2024, admitted to orchestrating a wide-ranging fraud scheme that funneled approximately $38.7 million in county funds into fake companies she created. According to court documents, the companies conducted no legitimate business and were used to conceal the embezzlement.
“This sentence shows that abuse of public trust will be punished,” said U.S. Attorney Timothy Courchaine. “Ms. Gutfahr stole more than money from the people of her county — she betrayed the confidence of the voters who elected her.”
Over the course of ten years, Gutfahr executed nearly 200 fraudulent wire transfers. She circumvented internal financial safeguards by using the digital authentication token of a subordinate employee, allowing her to both initiate and approve transfers without oversight. She then falsified county records and investment reports to cover her tracks.
Federal investigators say Gutfahr used the stolen money to fund a lavish lifestyle, purchasing at least 20 vehicles, making real estate investments, and financing improvements to her family’s ranch and cattle business. None of the stolen funds were reported on her federal tax returns.
“Each act of greed and dishonor negatively affected fundamental aspects of the county’s operations,” said FBI Phoenix Special Agent in Charge Heith Janke. “The FBI continues to investigate public corruption cases, and we remain committed to identifying and pursuing those who violate the public’s trust.”
IRS Criminal Investigation Special Agent in Charge Carissa Messick echoed the sentiment. “Taxpayers deserve to know that their elected leaders are working in the community’s best interest — not just their own.”
The case was investigated by the FBI and IRS Criminal Investigation. Prosecutors included Assistant U.S. Attorney Jane L. Westby and Senior Litigation Counsel Nicholas W. Cannon of the Justice Department’s Public Integrity Section.
Gutfahr’s scheme unraveled after discrepancies were discovered during an internal audit, leading to a joint federal investigation and her eventual arrest and guilty plea to charges of embezzlement by a public official, money laundering, and tax evasion.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Jun 25, 2025 | News
By Matthew Holloway |
The Pima Regional Bomb Squad (PRBS) was summoned by officers of the Sahuarita Police Department after officers were dispatched to a residential area with reports of possible explosive devices at three separate locations northeast of Interstate 19 and Sahuarita Road on Friday, June 20.
The incidents followed a prior call on Friday, June 13th, which saw a man report an object he found in the street and moved to the sidewalk. The PRBS later confirmed that the device was likely an explosive device after securing it, marking three such incidents in the space of a week.
According to AZ Central, the Pima Regional Bomb Squad is conducting a forensic investigation into all three devices. The town of Sahuarita, located approximately 30 minutes south of Tucson, lies along the I-19, a key corridor for human trafficking and drug and weapon smuggling.
A Sheriff’s Department spokesman told the outlet, “We want to remind the public to stay alert and report any suspicious items or activity to local law enforcement.” A suspect has not been identified as of this report by Pima County Sheriff’s Department or the Sahuarita Police Department.
The department added that the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has joined the investigation. The spokesman described the June 13th device as cylindrical, wrapped in tape with what officers believed to be a fuse protruding from it, resembling a pipe bomb. Officers determined it was “likely an explosive device.”
In a statement, the Sahuarita police said, “When the person or persons responsible for these crimes are identified, they will be arrested and prosecuted to the fullest extent possible.”
Per KGUN, one of the devices located on Friday, June 20th, described as four to six inches long and two inches wide, was found at a Sahuarita park: Parque del Sol. The device located on Friday, June 13th was reportedly located at the same park.
In a press release following the June 20th incidents, The Sahuarita Police Department said:
“On June 20, 2025, at approximately 7:00 p.m., Sahuarita police officers were dispatched to the area of E. Mountain Alder and S. Camino Larga Vista regarding the report of a possible explosive device. A Sahuarita resident called 911 after discovering the device in a public area. Officers arrived and immediately secured the area. Visual inspection of the device resulted in SPD contacting the Pima Regional Bomb Squad (PRBS) to assist in dealing with the device…
“At approximately 9:30 p.m., the PRBS rendered the device safe and collected it as evidence. The PRBS will coordinate an evidentiary forensic examination of the device…
“…In the early morning hours of June 20th, the SPD dealt with a different suspected explosive device at 14600 S. Camino Larga Vista (Parque del Sol). That device was rendered safe by PRBS.”
Anyone with information is urged to contact the SPD by calling 520-351-4900, 9-1-1, or 520-344-7000 during business hours Monday through Friday or by contacting the Sheriff’s TIP Line at 520-445-7847.
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 | Jun 25, 2025 | Economy, News
By Matthew Holloway |
Earlier this month, Goodyear’s City Council passed a massive $1.2 billion budget for 2026, unchanged from the tentative budget presented to the city in May. The budget is a shocking increase of over $304 million year-over-year or approximately 25.3%, without increasing its combined property tax rate or sales tax.
Goodyear Mayor Joe Pizzillo told reporters that the city was impacted by the loss of the city transaction privilege tax (TPT), eliminated as of Jan. 1st, 2025, through Republican tax reforms passed in the state legislature over the objections of Arizona Cities and Towns.
“A lot of cities here in the valley unfortunately had to raise their taxes to make up those $234 million…more than likely (which will) be doubling over the next five to 10 years,” Pizzillo said. “The city of Goodyear did not raise its sales tax or its combined property tax rate.”
Similar to property tax changes in Maricopa County, the city’s Truth in Taxation notice recorded an increase of $303,271. However, the overall property tax rate will not see an increase. This was accomplished by increasing the primary property tax rate, which is statutorily limited to an increase of 2%, while decreasing the secondary property tax keeping the rate effectively the same at $1.74 per $100 assessed property valuation.
In December 2024, Lee Grafstrom, a tax policy expert with Arizona Cities and Towns, told Fox10 that municipalities aren’t “cutting any of the services that citizens are requesting and requiring, so, we still have to do all the same amount of work. We just have this much less money to do it.”
“We have to find a way to either cut services or make up that shortfall,” he added. “This is a minor piece of a solution to a much larger problem, in terms of housing affordability.”
Finance Manager Ryan Bittle asked rhetorically, “‘Why is my property tax bill going up if the rate isn’t changed?’ (It) is one of the typical questions you might hear, and that’s simply because the value of your property is likely more this year than it was last year.”
The changes, according to Bittle, will bring more consistent revenues to Goodyear’s general fund. He explained that the secondary tax rate can only be used for servicing the city’s debts, while the primary property tax provides revenue for approximately 8% of the general fund on an ongoing basis.
In addition, Bittle explained that most of the property taxes paid by Goodyear property owners goes toward education, by a wide margin. “Most of the property taxes paid by citizens here in Goodyear falls outside of council’s decision-making authority,” Bittle said, noting that a full 66% of the collected taxes fund schools with just 15 cents on the dollar going to the city’s coffers.
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.
