House panel advances bill to redirect $15.3 million to City of Prescott for rodeo grounds repairs

The Arizona House Appropriations Committee voted to advance S.B. 1583 on Monday after adopting a strike-everything substitute that would send a previously appropriated $15,300,000 to the City of Prescott to pay for repairs and upgrades at the Prescott Frontier Days rodeo grounds.

The measure would reallocate money that was appropriated two years earlier and has been the subject of ongoing litigation over whether the original appropriation violated the state’s constitutional gift clause. The bill’s sponsor told the committee the new language would redirect the funds to the city — a political subdivision — to do the landlord/tenant infrastructure work the city owns and manages, and in doing so would avoid the legal dispute over payments to a private nonprofit that previously managed operations.

"This is not a new appropriation," the sponsor said. "It was intended to fix sewer, electric and ADA issues at the rodeo grounds; it has been sitting in a bank while litigation continues." Supporters argued the rodeo grounds host the county fair and multiple events beyond the seven-day Frontier Days rodeo and that investment would protect a major regional economic driver.

Mayor Phil Goode of Prescott and several city officials and council members testified in favor, describing deferred maintenance sums that supporters estimate exceed $15 million and saying that if the money went directly to the city it could be administered transparently through municipal procurement processes. "This is a legacy investment in our historic rodeo grounds," said Kathy Rusing, a Prescott council member.

Opponents and skeptical members on the committee said the appropriation should not be treated as a local earmark and questioned whether state general fund dollars should go to a single localized project when other statewide needs remain unmet. Several members said they would consider the bill but expressed concern about legislating in a way that could be seen as undermining the court process.

The committee adopted a strike-everything amendment and returned the bill to the House with a due-pass recommendation on a narrow vote, 10-8. Several speakers acknowledged the political sensitivity of an intra-government lawsuit and supported the idea that re-routing the funds to the city would "make the litigation moot" if the legislature agrees the appropriation should go to the political subdivision rather than a private nonprofit.

Why it matters: The appropriation affects regional economic activity tied to Prescott Frontier Days, which supporters describe as among the state's largest tourism and sales-tax drivers in that region. The legal debate over whether the original direct payment to a private nonprofit complied with the gift clause raised broader questions about state-to-private grants.

What’s next: S.B. 1583 will go to the full House for consideration. Supporters said they would continue to work with the city and with legal staff to ensure the reallocation is implemented in a way that clears the court challenge.

Sources: House Appropriations Committee hearing transcript; testimony from Senator sponsoring the bill; Mayor Phil Goode; Prescott city council members and public testimony.