by AZ Free Enterprise Club | Feb 26, 2026 | Opinion
By the Arizona Free Enterprise Club |
It’s not an accident that the top issue talked about by politicians these days is affordability. Over the last 5 years the cost of pretty much everything has gone through the roof, largely caused by the trillions in reckless spending by Joe Biden and the Democrats in Washington.
Taming inflation must remain our top economic priority, and the good news is that Arizona Republicans are taking meaningful steps to bring costs down. After adopting a 2.5% flat income tax under Governor Doug Ducey in 2022, state lawmakers have fought to slash grocery taxes, residential rental taxes and eliminate regulations that are driving up the cost of energy and housing.
Yet while the Republican controlled legislature is doing everything it can to make sure hardworking taxpayers get to keep more of their hard-earned dollars, municipalities throughout Arizona are passing an avalanche of tax and fee increases that are costing taxpayers hundreds of millions of dollars every year…
>>> CONTINUE READING >>>
by Matthew Holloway | Feb 14, 2026 | News
By Matthew Holloway |
In a 5-4 party-line vote Tuesday, the Republican-led Arizona House Ways and Means Committee advanced legislation that would temporarily freeze most municipal and county tax, fee, and utility rate increases for four years.
House Bill 4030 and House Concurrent Resolution 2052, sponsored by Committee Chair Justin Olson (R-LD10), would limit local government charges to levels approved in fiscal year 2025–2026 budgets for a four-year period beginning July 1, 2026, and ending June 30, 2030.
Under the proposal, cities and counties would be prohibited from raising existing fees or tax rates, creating new tax classifications, or expanding tax bases during the moratorium period. The measures would preserve voters’ authority to approve increases at the ballot box. HB 4030 would enact the moratorium through statute. HCR 2052 would refer the policy to voters at the next general election.
The legislation includes enforcement provisions aimed at preventing local governments from restructuring or renaming charges, altering rate schedules, or modifying classifications in a way that would effectively increase revenues beyond fiscal year 2025–2026 levels.
In a statement, Olson said the measures are intended to provide cost certainty for residents amid ongoing inflationary pressures.
“These bills do exactly what families expect when the cost of living keeps climbing: they stop government from reaching deeper into their pockets,” Olson said. “While Arizona families are cutting back, local governments should not be hiking fees, raising taxes, or quietly inflating utility bills. HB 4030 and HCR 2052 put a hard check on that behavior and give taxpayers certainty and relief.”
“This comes down to discipline and fairness,” Olson explained. “Local governments already approved their budgets. This bill just requires them to live within the revenues generated by existing tax rates. If a city or county wants more money, they can make their case to voters and earn the support of a strong supermajority. What they cannot do is quietly raise costs on families whose budgets are already stretched thin.”
The proposal also follows recent disputes between state lawmakers and municipal governments over local authority, including 2025 legislation involving Axon’s planned headquarters development in Scottsdale that resulted in the Legislature preempting certain local actions.
Arizona’s Constitution grants charter cities broad authority over local affairs, including taxation and fee structures, under its home-rule provisions (Arizona Constitution, Article XIII, Section 2). Arizona courts have historically recognized broad municipal autonomy in matters deemed “purely local,” as the Arizona Supreme Court noted in State ex rel. Brnovich v. City of Tucson (2017).
In recent years, several Arizona municipalities have approved utility and service rate increases, citing infrastructure needs and inflationary pressures. For example, the City of Phoenix approved water and wastewater rate adjustments in 2023 and 2024 to address infrastructure and operational costs, according to the City of Phoenix Water Services Department. Tucson Water has also adopted phased rate increases in recent budget cycles, per city rate information.
If approved by both chambers and signed by the governor, HB 4030 would take effect as statute. As a concurrent resolution, HCR 2052 would bypass the governor and instead be placed on the ballot for voter consideration. Both measures now advance to the full House.
Supporters argue the measure would provide temporary cost certainty for residents, while opponents of similar proposals in past sessions have raised concerns about potential constraints on municipal budgeting and infrastructure funding.
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 | Jan 13, 2026 | Economy, News
By Matthew Holloway |
Republican legislative leaders in Arizona introduced a tax conformity plan on last week, aimed at aligning the state’s tax code with recent federal tax reforms. The proposal, outlined in a joint press release from the Arizona State Legislature, estimates roughly $1.1 billion in tax savings for Arizonans over the next three years.
Senate Finance Committee Chairman J.D. Mesnard (R-LD13) and House Ways & Means Committee Chairman Justin Olson (R-LD25) are sponsoring the plan through two bills: SB 1106 and HB 2153.
According to the release, Republican lawmakers say the conformity effort will provide certainty to taxpayers and tax preparers amid the current filing season. They state the proposal would adjust Arizona’s tax code to reflect provisions of the federal tax overhaul known as the “One Big Beautiful Bill.”
The Republican plan would include measures such as increasing the child tax credit and establishing a deduction for childcare expenses. It would also aim to apply the federal tax reforms to Arizona’s individual and business tax structures.
“This is an urgent matter. With tax season underway, tax professionals and families alike need clear guidance now,” Senate President Warren Petersen said. “Until the Legislature acts and the Governor signs this plan into law, there is real confusion about how to handle state tax returns. We’re urging Governor Hobbs to join us in resolving this issue promptly by signing this historic tax cut when it hits her desk.”
House Speaker Steve Montenegro (R-LD29) is quoted in the release, asserting that formal legislative action is needed to resolve confusion created by recent state tax guidance issued by the governor’s office, which he says assumes legislative action has already occurred.
Montenegro explained, “The Governor jumped ahead of the law by issuing state tax guidance this week that assumes legislative action – which hasn’t happened yet – and her recent executive order only deepens confusion. This kind of unilateral overreach undermines the process and leaves families, tax preparers, and businesses stuck in the middle.”
He added, “The Legislature is moving to restore certainty, respect the separation of powers, and make sure Arizonans have clear, lawful guidance.”
The press release states that Republican sponsors contend the plan’s focus is on working families, seniors on fixed incomes, and small businesses, and that it would codify measures such as preventing taxation of tips and overtime pay.
SB 1106 and HB 2153 are set to be debated in the Legislature as the session begins.
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 19, 2025 | News
By Staff Reporter |
The Arizona Republican House Whip sided with Democratic lawmakers and Governor Katie Hobbs against the codification of a key emergency funding bill for disability services in the state.
Most House and Senate Republicans support removing over $100 million in emergency funding from the Housing Trust Fund and the Prescription Drug Rebate Fund and giving it to the Division of Developmental Disabilities (DD). Several Republican lawmakers along with their Democratic counterparts and Hobbs reject the legislation (House Bill 2945 and Senate Bill 1734). Democrats want to pull funding from the general fund instead.
Governor Hobbs issued a moratorium on all legislation until Republicans agreed to find another avenue for funding DD. Hobbs expressed gratitude for the existence of “bipartisan opposition” enabling Democrats to retain a negotiations foothold.
Hobbs called Republicans “extreme” and accused them of “political theater.”
Hobbs would be alluding to House Majority Whip Julie Willoughby. Willoughby joined Reps. Justin Olson and Jeff Weninger as the sole “no” votes on House Bill 2945 against majority Republican support within the House Appropriations Committee.
Willoughby introduced an amendment to House Bill 2945 that drew Democratic support. Willoughby said in her presentation of the amendment that she worked with Democrats to craft it.
Willougby’s amendment would have dropped the original bill’s requirement for the Arizona Healthcare Cost Containment System Administration (“Administration”) to obtain legislative approval via statute for any Centers for Medicare and Medicaid Services (CMS) renewal request or termination request for any waiver or waiver amendment. Willoughby said the legislative approval was overly burdensome and would require the legislature to convene for every waiver request, even for simple extensions.
It would have also eliminated the original intent to have the Administration submit a waiver amendment request to CMS to reduce parents as paid caregivers program care services per week per child limit to 20 hours. It would have limited the new federal money reporting requirements to only the Department of Economic Security (DES) and Access rather than all state agencies. Additionally, it would have not pulled $10 million from the Arizona Competes Fund but instead increased by $10 million the funding pulled from the Prescription Drug Rebate Fund.
House Appropriations Chair Steve Livingston said he liked some aspects of Willoughby’s amendment, but suggested it would be better suited for consideration in a Committee of the Whole (COW) amendment.
In Willoughby’s closing explanation of her “no” vote on House Bill 2945, Willoughby said she would continue to fight for the Democrat-supported changes in her amendment and apologized extensively for the bill.
“People have continuously asked me to not move this amendment. What hill do you die on? And I choose you as my hill to die on,” said Willoughby. “I’m sorry this is happening to you. With my whole heart I’m sorry.”
Willoughby said she opposed the bill as against her pro-life beliefs as a Republican.
“I’m pro-life, and I’m pro-life through the entire spectrum of life, from the moment of conception until the last breath you take, and this is my moment to help support you in a way I haven’t had to before,” said Willoughby.
The House Appropriations Committee rejected Willougby’s amendment during its hearing on Tuesday.
Supporters of Willoughby’s olive branch to Democrats sent flowers to the lawmaker.
Where Willoughby sought compromise, other Arizona House Republican leaders took Hobbs to task for her administration’s management of DD that ultimately led to its budget shortfall. House Speaker Steve Montenegro said Hobbs’ desired funding pathway would ensure “no oversight, no reforms, and no accountability” for DD administration.
“Governor Hobbs’ decision to hold every bill hostage because she didn’t get her way on a blank check is not leadership—it’s political blackmail,” said Montenegro. “She created this crisis by foolishly expanding the DD program without legislative approval or funding in place, and now she’s throwing a tantrum because the Legislature is doing the responsible thing: funding services while putting guardrails in place to keep the program from collapsing.”
Without approval of emergency funding by the end of this month, DD won’t be able to pay caregivers and services will cease.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Jonathan Eberle | Mar 29, 2025 | News
By Jonathan Eberle |
The Arizona State Legislature is advancing a measure to urge the Arizona Corporation Commission (ACC) to prioritize affordable and reliable energy sources over intermittent renewable energy alternatives such as solar and wind.
House Concurrent Memorial 2014 (HCM 2014), introduced by State Representative Justin Olson, calls on the ACC to prevent regulated utilities from shutting down dispatchable energy sources, including natural gas and coal, in pursuit of Net Zero goals.
The legislation, which does not carry the force of law but serves as a formal request to the ACC, asks the Commission to ensure Arizona’s electrical grid remains powered by affordable and reliable energy sources; prevent regulated utilities from phasing out critical, dispatchable energy sources such as coal and natural gas in favor of renewable alternatives that may be costly and unreliable; and adopt a national model policy, “Only Pay for What You Get,” which requires utilities to recover costs only from the reliable portion of new energy generation sources.
The bill passed the Arizona House of Representatives on February 26, 2025, with a vote of 33-26-1, and was referred to the Senate’s Natural Resources Committee for further consideration.
HCM. 2014 comes amid a broader debate on the future of Arizona’s energy policies. The ACC, which regulates the state’s investor-owned utilities, has faced increasing pressure from policymakers, industry groups, and environmental advocates over how to balance affordability, reliability, and sustainability in energy production.
Supporters of the measure argue that shifting too quickly to renewable energy sources without proper reliability safeguards could lead to increased costs for ratepayers and potential grid instability.
If approved by the Senate, copies of HCM 2014 will be transmitted to the Chairperson and each Commissioner of the ACC, urging them to align state energy policies with the resolution’s recommendations. While the ACC operates independently, legislative pressure could influence future regulatory decisions regarding Arizona’s energy transition.
As Arizona continues to navigate its energy future, the debate over affordability, reliability, and sustainability is expected to remain a contentious issue among lawmakers, utility providers, and consumers.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
