Pima County weighs budget moves as federal grant funding faces review

Pima County officials told the Board of Supervisors that roughly $150 million in federal awards tied to pandemic recovery and other large programs are under review following recent federal memoranda and court action, and urged caution as the county finalizes its supplemental budget requests.

County Administrator Jan Lesher told the board the county cross‑walked federal CFDA numbers identified by the Office of Management and Budget and other federal guidance against the county’s grant portfolio and found “potentially 50 affected county grants representing approximately a hundred and 50,000,000 in expenditures last fiscal year.” Lesher said much of that total — about $94 million — reflects one‑time American Rescue Plan Act and similar awards already obligated, while roughly $56 million represents recurring or formula grants that require extra scrutiny.

Why it matters: County staff said the $56 million in reoccurring grants is the clearest short‑term exposure because those awards fund public health programs, workforce development, housing and other ongoing services. If federal reimbursement or pass‑through funding is paused or reduced, county departments could see sudden holes in operating budgets.

The county’s budget presentation emphasized uncertainty from three federal policy channels: recent executive orders and OMB memoranda halting some Infrastructure Investment and Inflation Reduction Act spending; court disputes tied to the Impoundment Control Act; and the continuing federal appropriations process in Congress. Lesher told supervisors, “Since January 20, this number is actually now 76 executive orders have been issued and signed by the federal administration,” and later summarized the county’s cross‑walk findings for grants tied to those actions.

At the board dais, supervisors pressed staff about which grants are most vulnerable and how rapidly the county can adjust if reimbursements slow. Lesher and grant‑management staff said most awards remain open and reimbursable today; the county is tracking a small number of reimbursement delays and one FEMA Shelter and Services reimbursement case being litigated in another jurisdiction. She warned that some large awards are closing out and will not recur while others — the $56 million group — are annual program funds that, if interrupted, would immediately affect services such as public health and housing.

After extended budget deliberations earlier in the meeting, the board voted on a substitute motion authorizing the county administrator to continue the fiscal‑year budget development process using a new prioritization framework presented by staff. The vote was 3–2 on a roll call (Yes: Supervisor Allen, Supervisor Grijalva, Chair Scott; No: Supervisor Christie, Supervisor Hines). Lesher said the framework is intended to help the board weigh countywide operational needs against maintaining existing programs and possible program expansions while tracking federal funding risk.

What to watch: County officials said they will continue to update the board as federal grant status and court rulings change. They also gave supervisors a menu of budget‑balancing options — property tax rate adjustments, reserve policy changes and one‑time PAYGO uses — and noted that every penny of the primary tax rate equals about $1.1 million in revenue.

Quotes: “If we were to take everything that is currently yes, you would only have to increase the primary tax rate by 48¢,” County Administrator Jan Lesher told the board in her budget overview.

Ending: Supervisors asked staff to return with continued updates and more granular grant‑by‑grant risk assessments; the administrator said she would incorporate federal updates into the next budget materials as the county moves toward its tentative budget.