Staff briefs Sahuarita council on 2025 Arizona legislative activity; moratorium lifted and budget talks continue
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Summary
Town staff reviewed major 2025 Arizona legislative developments including a temporary signing moratorium, the governor’s and legislature’s agreement over HB 2945, bills affecting local control and permitting (SCR 1008, HB 2222, HB 2033), and an overview of the budget outlook and unresolved issues.
Town staff briefed the Sahuarita Town Council on the state legislative session and the fiscal outlook for 2025, identifying bills that staff is tracking because of their potential effect on local control, permitting and municipal finance.
Mina Marcos, management analyst for the town manager’s office, told the council the governor issued a moratorium on signing new legislation on April 17 to spur negotiations; that moratorium ended after lawmakers and the governor reached a bipartisan agreement summarized in HB 2945. Marcos said HB 2945 redirected $122 million from the prescription drug rebate fund rather than using housing-related funds, and once the bill was signed the moratorium lifted and the governor resumed signing bills.
Staff highlighted several bills of concern: SCR 1008 (a proposed constitutional amendment that would prohibit municipalities and counties from levying or increasing some taxes without a supermajority vote), HB 2222 (which would require reporting and additional approval steps for settlements above specified thresholds), and HB 2033 (which would require municipalities with populations over 5,000 to adopt online instant permitting for residential solar and energy-storage by Jan. 1, 2027, and allow remote inspections thereafter). Marcos said the town opposes measures that staff views as infringing on local control and that staff is engaged on these items with the League and stakeholders.
Marcos also reviewed other fiscal measures being tracked, including proposals to reduce income tax rates using surplus funds (SB 1018 and SCR 1014) and a food-tax limit measure (HCR 2021). She said staff remains concerned about changes that could affect revenue-sharing stability.
Karen Crews of the Cruz Group provided an update on the state budget outlook. Crews said the Finance Advisory Committee published a forecast in mid-April showing two scenarios: an optimistic surplus near $650 million if federal and market headwinds are ignored, and a conservative approach that estimates roughly $277 million in surplus when external factors are considered. Crews said legislators were likely to adopt a cautious approach and that outstanding issues include Proposition 123 (education funding that is sunsetting), a proposed fiscal arrangement for the Arizona Diamondbacks legislation, state employee health care, and the school facilities fund.
Council members asked clarifying questions and discussed the town’s engagement with state and federal lobbying partners; Shane Dilley and staff said the town continues outreach in Washington, D.C., and the state legislature on projects and priorities. No formal council action was taken on the legislative update; the briefing was informational.
What staff recommended: remain engaged with the League of Arizona Cities and Towns and lobbying partners; monitor bills that could affect local control, taxation and permitting; and prepare for possible impacts to town revenue-sharing and permitting practices if bills are enacted.
