Phoenix Council adopts FY 2025–26 budget after heated debate over police funding and housing aid

Phoenix City Council on Wednesday approved a balanced fiscal year 2025–26 budget that adds nearly $25 million for the fire department and expands a newly seeded Housing Trust Fund, while approving an increase of about $46 million in police-related costs.

The vote was 8–1. Councilmember Anna Hernandez voted no and made a substitute motion to restrict a $109 million contingency set‑aside and reallocate $7 million of ongoing funding from the Phoenix Police Department sworn officer overtime line to cover emergency housing vouchers and other community programs.

The budget package, presented by City Manager Jeff Barton and Budget Director Amber Williamson, preserves parks, library and public‑safety programming while setting aside reserves for an anticipated fiscal shock. “We as a council — you are required, unlike the federal government — to balance our budget,” Barton told the council during the presentation.

Mayor Kate Gallego framed the spending plan to the council as a pragmatic response to recent state and federal changes. “While this budget contains adjustments to ensure we're able to set aside reserves for the future, it also sustains essential services and delivers wins across all areas of our city,” Gallego said.

Council discussion focused heavily on three themes: police staffing and overtime, investments to reduce fire response times, and new housing measures. Councilmembers praised the budget’s investment in firefighting capacity. “We are adding new firefighters and new equipment to improve response times,” Councilwoman Hodge Washington said during debate.

Councilmember Hernandez pressed the city for stronger safeguards and permanent funding for tenant legal aid and housing programs, and questioned long police overtime trends and internal controls. “We must be clear that we will prioritize protecting people over criminalizing them,” Hernandez told the council before offering her substitute motion, which sought to move $4.6 million to emergency housing vouchers, $2 million to parks, about $249,000 to libraries and $175,000 to arts and culture by taking ongoing funding from the police sworn overtime line.

City Manager Barton and police and audit staff described efforts already underway to reduce overtime and tighten controls: staff said vacancies in sworn positions have driven overtime, and that recent internal and city audit reviews found no fraud but recommended stronger sign‑off and scheduling practices.

Public testimony Wednesday reflected the split in public priorities. Firefighters, union leaders and many residents urged passage to improve response times; dozens of speakers asked the council to cut police funding and invest instead in eviction prevention, tenant right‑to‑counsel programs and heat‑mitigation in hot neighborhoods.

Formal action: the council approved the manager’s proposed budget (Item 37) by roll call (8–1). Hernandez recorded a no vote and submitted the substitute amendment from the floor; that substitute motion was not adopted and the primary motion passed.

Discussion vs. decision: the council directed staff to continue vacancy reduction and overtime controls as described by city management, and to use budgeted set‑asides to address future revenue shocks. No ordinance or new permanent funding for right‑to‑counsel was adopted in this vote; members and staff discussed the need for a longer process to secure permanent sources.

What’s next: staff will implement the adopted budget for FY25–26. Councilmembers said they intend to continue monitoring police overtime, implementation of added fire staffing, and the new Housing Trust Fund seeded with ARPA interest and future earnings.

Quotes used in this article come from the official meeting transcript of the May 21, 2025 Phoenix City Council meeting and from speakers listed below.