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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
2025-2026; local government
Purpose
Makes session law changes relating to local government necessary to implement the FY 2026 state budget.
Background
The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is often necessary to make statutory and session law changes to effectuate the budget. Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.
S.B. 1745 contains the budget reconciliation provisions for changes relating to local government.
Provisions
1. Continues to allow a county with a population of fewer than 250,000 persons to meet any fiscal obligation for FY 2026 from any source of county revenue designated by the county, including monies of any countywide special taxing jurisdiction where the board of supervisors serves as the board of directors.
2. Continues to cap, at $1,250,000, the amount of money a county may use for purposes outside the county's revenue source.
3. Continues to require a county with a population of fewer than 250,000 persons, by October 1, 2025, to report to the Director of the Joint Legislative Budget Committee:
a) whether the county used a revenue source for purposes other than the revenue source's intended purposes to meet a county fiscal obligation; and
b) the specific source and amount of revenues that the county intends to use in FY 2026.
4. Allows Gila County to establish, maintain and operate facilities for the purposes of providing services to veterans using the $3 million appropriation to the Department of Veterans' Services for a Gila County veterans retreat in the FY 2024 General Appropriations Act.
5. Becomes effective on the general effective date.
Prepared by Senate Research
June 16, 2025
AN/SDR/slp