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.
by Jonathan Eberle | Jun 22, 2025 | News
By Jonathan Eberle |
With less than two weeks before Arizona’s fiscal year ends, a deepening budget dispute between the state House and Governor Katie Hobbs escalated Saturday, as House Speaker Steve Montenegro announced plans to introduce a continuation budget to keep state government running past the June 30 deadline.
Montenegro said the House would move forward with a stopgap measure after determining that the Senate-passed executive budget, negotiated by Hobbs and Republican Senate leaders, lacks sufficient support to clear the House.
“The executive budget plan passed in the Senate does not have the votes in the House—with bipartisan opposition from Republicans and Democrats,” Montenegro said. “Now, with time running out and no viable path forward for their plan, it’s our responsibility to act to prevent a shutdown.”
He added that House Republicans had already passed their own budget last week, which he said focused on public safety, infrastructure, and government accountability—but that proposal was “ignored by the Senate.”
“The House is not going to be forced into a take-it-or-leave-it deal that doesn’t reflect the will of our members or the people we represent,” Montenegro said. “We will do what responsible legislators should do: take action to keep government running and protect Arizona taxpayers.”
A continuation budget, currently being drafted, would maintain current funding levels to preserve essential government operations while lawmakers continue to negotiate. However, the governor swiftly condemned the plan and signaled she would veto any such proposal.
In a statement, Governor Hobbs accused House Republicans of abandoning bipartisan talks and attempting to “jam through an irresponsible and partisan ‘budget.’”
“For months I have worked with leaders of both parties, in both chambers, to craft a bipartisan, balanced, and fiscally responsible budget,” Hobbs said. “Sadly, House Republican leadership abdicated their responsibility and refused to meaningfully participate in those bipartisan conversations.”
Hobbs warned that the continuation budget would gut pay raises for state troopers and firefighters, slash childcare and education funding, raise taxes on small businesses, and eliminate key investments in veterans’ services and wildfire mitigation.
“Speaker Montenegro knows this, yet he has chosen to continue with this farce as an exercise in pointless political grandstanding,” she said. “His reckless actions jeopardize basic government functions with potentially devastating consequences.”
The governor also criticized House Republicans for seeking an increase in their own per diem pay while proposing cuts to public safety and education programs.
“This irresponsible House Republican budget will raise costs and make our state less safe, less secure, and less competitive,” she added. “It’s time for House Republican leadership to come back to reality, stop wasting everyone’s time, and show some common sense by working with their colleagues in a productive fashion.”
With the June 30 deadline approaching, the battle over Arizona’s budget now hinges on whether either side can reach a new agreement—or whether the impasse will trigger a government shutdown.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | Jun 19, 2025 | News
By Jonathan Eberle |
Arizona Senate Republicans introduced a new state budget proposal Monday that aims to deliver a balanced fiscal plan while investing in public safety, education, infrastructure, water, and public health — all without raising taxes.
Senate leaders emphasized that their budget reflects bipartisan priorities and presents a path forward to avoid a looming government shutdown.
“This is a bipartisan budget the Republican majority can fully support and the governor will sign,” said Senate President Warren Petersen. “We are protecting the interests of Arizona by boosting pay for public safety personnel and increasing public safety resources to support safer communities.”
Petersen added that the proposal includes key investments in transportation and infrastructure, with a focus on road projects that support economic growth. The budget also addresses water security and enhancements to Arizona’s public health system.
“The governor has been adamant she will veto the House budget,” said Senate Appropriations Chairman John Kavanagh. “With the possibility of a government shutdown in a matter of days, we must move forward with our conservative spending plan, and we’re calling on our colleagues in both chambers to support it.”
Senate President Pro Tempore T.J. Shope offered a blunt assessment of the House proposal, describing it as a “fantasyland budget.”
“Elections have consequences,” Shope said. “We are in an era of divided government, and we must proceed as such. Republicans can’t get everything they want, and neither can Democrats. We did very well with protecting and funding our Republican priorities.”
Lawmakers face a deadline to approve a spending plan before a potential government shutdown later this week.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | Jun 16, 2025 | News
By Jonathan Eberle |
The Arizona House of Representatives passed a structurally balanced, conservative budget on Thursday, advancing a financial plan that focuses on strengthening public safety, reducing costs for families, and increasing government accountability.
Speaker Steve Montenegro (R-LD29) called the budget a reflection of voter priorities. “This budget delivers safe communities, strong families, and a government that works for the people — not the other way around,” he said. “It cuts tuition, raises pay for law enforcement, fixes critical roads, and reins in waste — all without raising taxes.”
Key components of the budget include a 5% pay raise for Department of Public Safety and corrections officers, $94 million for repairs to major highway infrastructure, and a 2.5% in-state university tuition reduction alongside a freeze for the subsequent two years. The budget also fully funds school choice programs and clears a backlog of Empowerment Scholarship Account applications.
Additional funding is designated to keep voter rolls accurate and up to date, fully fund payments for parents acting as caregivers, and provide developmental disability services. An expanded adoption tax deduction is also included.
“The House-passed budget puts the House Majority Plan into action,” Majority Leader Michael Carbone said. “We’re protecting opportunity by lowering costs for students and parents. We’re backing public safety with strong support for our law enforcement officers. And we’re holding government accountable by cutting waste and demanding better results — this is the kind of leadership Arizona voters asked for.”
Speaker Pro Tempore Neal Carter stressed the budget’s potential for boosting small business. “The House-passed budget gives long-overdue relief to Arizona’s small businesses by eliminating the administratively burdensome business personal property tax under the $500,000 threshold,” Carter said. “This helps local job creators grow, hire, and invest in their communities — and makes Arizona a more competitive place to do business.”
The budget package — HB2945 through HB2961 — now moves to the Senate for consideration.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Apr 7, 2025 | News
By Matthew Holloway |
In an exclusive interview with AZ Free News, Speaker of the Arizona House of Representatives Steve Montenegro revealed that Republican legislative leaders had been warning Governor Hobbs of her potential budgetary failure as far back as January. He further revealed that a notice from the Hobbs administration was only sent to House leaders two weeks prior to the funding crisis deadline and was sent to an incorrect email address.
Montenegro called out Hobbs for her administration’s “incompetence,” and explained the purpose of the House Ad Hoc Committee on Executive Budget Mismanagement, which met for the first time last week.
Montenegro explained, “The purpose of the ad hoc was literally on executive budget mismanagement and the failures that the Governor has demonstrated from the start. I mean at some point we understand that there are shifting numbers. There’s sometimes you budget for a certain amount of caseload or you budget for a certain amount of students or you budget for a certain amount of individuals that are going to have need of services in the state and that can fluctuate a little.
“We’ve seen that throughout the year it fluctuates. But the mismanagement that’s coming from this Governor’s office is startling—to see that they’re not factoring certain budgeting items in, completely ignoring it from start.
“In January, we pointed out there were failures in her proposal failing to include certain budget items. But now we’re seeing that in, specifically this latest debacle where we get an email sent to the wrong place and when we finally are able to see the email, there’s less than two weeks left before the Congregate Care program goes bankrupt. Then, the letter that she emailed states almost as a demand, ‘If this happens, kids will be sleeping in offices.’
“It’s almost as if there’s, first of all, no care, and second, no understanding that she should have let us know early on specifics on where we would need supplementals. So asking the question, is this a level mal-intent or incompetence?
“This is sheer incompetence in mismanagement of budgets, not understanding how to manage a budget, and when you’re talking about kids and the most vulnerable individuals in the state, it’s gross incompetence. Arizonans deserve better.”
Asked about the possible perception of the Ad Hoc Committee as having a political intent, Montenegro answered bluntly, “There are no games here. I haven’t even sat to consider politics in this subject. When we receive a letter, when our team receives a letter that kids are going to be sleeping in offices, there’s a certain level of indignation that I can’t ignore, especially when you’re saying kids will be sleeping in offices. And then we find out that the reasoning is because we can’t manage a budget.“
When asked about the potential intent of the Governor, Montenegro was equally direct:
“When we’re talking about kids here, I don’t care about the politics. What we do care about is making sure that these kids are taken care of and holding this Governor accountable because it’s gotten to a point now that we can’t ignore it. We genuinely can’t ignore the fact that we’ve got kids that are gonna be affected.
“We’ve got a Governor that decided to raise rates on the same program earlier this year. We know there’s an ongoing investigation, so we’re not gonna get in the middle of the investigation by Kris Mayes or Rachel Mitchell, County Attorney, or even others higher.
“But we want to find out, we want to get to the bottom of the budget mismanagement so that as we proceed forward in how we make sure these kids are taken care of and these vulnerable communities are taken care of, that from the legislature’s perspective, we’re putting safeguards and ending up some reforms that don’t allow the Governor’s incompetence to hurt these kids.”
Asked what recourse the House will have against a recalcitrant Governor, Montenegro answered, “Well, to start, that is why we’ve had our Appropriations Committee from the beginning asking the questions. Right now, the Governor refuses to give us access to her staff, to her policy advisors, to the people that know the numbers in these agencies. She refuses to make them accessible for us to talk to them, to understand where these numbers are.
“So what we’re doing is, we’re going to turn up the heat on holding her accountable. The Ad Hoc committee is formed to say, ‘Look, for weeks, we’ve been asking for your staff to sit down with our policy advisors on the numbers, on finding out where things are.’
“We get a letter two weeks out. We have been asking for weeks to sit down with them for numbers, to understand where these are. So, the whole purpose of this is now to take a deep dive in understanding where these numbers are so that Republicans can execute our plan. We are going to make sure that she’s using funds from her executive budget to fulfill these needs. And we’re going to make sure that, as we start stepping into the budget, we have the right reforms and we have the right safeguards for these kids.”
Referring back to the work of the Joint Legislative Budget Committee, he added, “If you go back and see the JLBC committee hearing that we had, that’s a preview of what we expect to happen with this Ad Hoc Committee on Executive Budget Mismanagement that I put together.
“Because by forcing them to come to talk to us, to finally get somebody to speak, which I’ve told you before, she’s been preventing her staff from coming to speak with our staff about numbers. But by her folks having to come to the committee, we’ve learned a lot, specifically, by learning how they’re mismanaging DCS. We’ve learned a lot, and the goal is through the Ad Hoc to expose the rest of what’s happening in other areas of either DCS, or DDD, or in general DHS on the mismanagement.“
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.
