City Manager Tamir reviews Tucson's fiscal year 2026 budget amid funding uncertainties

Tucson's fiscal future took center stage at the recent City Council meeting, where City Manager Tamir presented the proposed budget for fiscal year 2026. This marks Tamir's first budget recommendation, and he urged council members to provide constructive feedback as they navigate a challenging financial landscape.

The proposed budget totals approximately $2.4 billion, with a significant focus on the general fund, which is projected to be around $750 million. However, the budget faces hurdles due to declining state shared revenues, particularly from a flat income tax implemented by the state, which has resulted in a loss of over $40 million for Tucson. This flat tax, criticized by council members, is seen as disproportionately benefiting corporations and the wealthy while straining city finances.

Tamir highlighted the importance of federal funding, which has been uncertain, particularly for programs previously supported by competitive grants. The budget also reflects a commitment to employee investments, with an additional $16.3 million allocated for compensation adjustments, performance evaluations, and market adjustments for various job classifications.

Public engagement has been a priority, with over 4,300 participants in a recent online survey providing input on budget priorities. The council is set to continue discussions on the budget in upcoming meetings, with key dates for public hearings on May 6 and May 22, leading to a final budget adoption on June 3.

As Tucson grapples with economic uncertainties and potential deficits projected for the coming years, the city is urged to explore new revenue streams and make strategic cuts to ensure fiscal stability. The council's ongoing discussions will be crucial in shaping a budget that meets the needs of the community while addressing the financial challenges ahead.