City staff briefed commissioners on state legislative items and a ballot initiative, State Question 8-42, that would phase out ad valorem property taxes on owner-occupied homesteads over three years beginning Jan. 1, 2027.

Staff explained the initiative petition process: after filing with the secretary of state and review by the attorney general, there is a public-notice period during which the petition's ballot title and wording may be challenged. If the petition survives review or the challenge period, the secretary of state sets a 90-day signature-collection period. Staff said the statute requires petitioners to gather signatures totaling at least 8% of votes cast for governor in the last general election (staff estimated this at roughly 92,000 signatures statewide) and that a county cap prevents more than about 11.5% of signatures coming from any single county.

Kurt, the briefing presenter, summarized the petitioners' fiscal-impact statements filed with the secretary of state: the petitioners estimated statewide ad valorem collections would decline by approximately $400 million in 2027, $800 million in 2028 and about $1 billion in 2029. Staff advised commissioners to expect campaign activity, legal challenges, and interest-group responses and to monitor potential impacts on school and career-technical funding; the transcript noted staff concerns that schools (the presentation cited ~26% of school revenue from property taxes) and career-tech systems (~63% from property taxes) could be heavily affected.

Commissioners asked technical questions about grandfathering (whether a subsequent owner would inherit the exemption) and how existing pre-2027 bond levies would be treated; staff said the petition's language appears to preserve pre-2027 bond levies but that legal reviews and any constitutional challenges remain possible. Staff said local governments will be watching closely but that school funding and county budgets are likely to be most affected. The commission did not take action during the study session; staff will continue to monitor the petition process and legislative developments and will report back as details firm up.