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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
VETOED
FACT SHEET FOR H.B. 4149/S.B. 1842
2026-2027; local government.
Purpose
Makes session law changes relating to local government necessary to implement the FY 2027 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.
H.B. 4149 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 2027 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, 2026, 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 2027.
4. Becomes effective on the general effective date.
Governor's Veto Message
The Governor indicates in her veto message that H.B. 4149, and this version of the FY 2027 state budget as a whole, would cause Arizona to default on its debt obligations, endanger vulnerable children, cut public safety funding and provide tax breaks for billionaires, data centers and special interests. The Governor outlines her specific concerns, including cuts to funding for specified agencies and programs, and invites the Legislature to return to the negotiating table.
House Action Senate Action
APPROP 4/28/26 DP 11-7-0-0 ATT 4/28/26 DP 6-4-0
3rd Read 4/29/26 33-20-7 3rd Read 5/4/26 16-2-2
(H.B. 4149 was substituted for S.B. 1842 on 3rd Read)
Vetoed by the Governor 5/5/26
Prepared by Senate Research
May 7, 2026
AN/hk