Pima County starts budget season $57.5 million short; Scott breaks with cost-shift tax policy

Pima County starts budget season $57.5 million short; Scott breaks with cost-shift tax policy

TUCSON, Ariz. (Tuesday, Nov. 10, 2026): Pima County begins planning its fiscal 2027/28 budget about $57.5 million short in the general fund before any policy changes, finance staff told the Board of Supervisors at an afternoon study session Tuesday. Staff also projected that the county's primary property tax levy will exceed its state constitutional limit within two budget years. The forecast led Supervisor Rex Scott to say he no longer supports the county's policy of raising property taxes to cover costs the state shifts onto counties.

No budget votes were taken. Supervisor Andrés Cano was absent from both the study session and the evening meeting.

The shortfall

Finance Director Art Cuaron said the projection starts from this year's budget and layers on expected growth. Revenues and transfers in total $904.5 million, plus a $2.3 million fund balance carried from the prior year. Spending and transfers out total $964.3 million. That leaves the $57.5 million gap.

At the same point last year, the county faced a deficit of close to $48 million and closed it before presenting a balanced budget in April.

The projection assumes 5.1% growth in property tax revenue, about $42.5 million. That figure includes the board's policies on state cost shifts, affordable housing and pay-as-you-go capital funding. On the cost side, health insurance premiums are expected to rise 14%, about $7.1 million for the general fund. Known needs include $4.1 million for medication-assisted treatment services at the jail and money for the courts tied to new Superior Court judgeships. A $12 million placeholder covers new department requests.

Staff gave the board a menu of options to close the gap, which Cuaron called "almost a la carte":

• Lowering the reserve policy from 17% to 15%, which would free $12.2 million.
• Moving pay-as-you-go capital money to operations, $28.9 million.
• Limiting or suspending new department requests, $12 million.
• Counting on unspent money from vacancies and operational savings, $7.7 million.
• An across-the-board 1% spending cut, $6.5 million.

The levy limit

The county's primary levy is about $42 million under its constitutional limit this year. Staff projected that cushion shrinking to $19.8 million, or 3.3%, in fiscal 2027/28. In fiscal 2028/29, the levy is projected to go $4.2 million over the limit, and the staff slides show the overage growing to $20.9 million the following year. Cuaron said that if the county goes over and doesn't fix it in time, the excess must be set aside and used to lower the next year's levy.

Cuaron said Proposition 425, which voters approved this month, gives the county more budget authority but doesn't change the levy limit.

Split over the cost-shift policy

Scott said he had confirmed with the county's contract lobbyists and County Supervisors Association staff that Pima is the only one of Arizona's 15 counties that asks property taxpayers to cover state cost shifts. He said he voted for the policy and wants to keep the language on tax bills that tells taxpayers what the state is costing them. "I no longer feel that we should be asking them to pay an additional sum of money for that," he said.

Scott said the levy projection "really brought it home." Voters approved an expenditure limit increase this year, and the county is tentatively planning a bond package for 2027. Scott said he wants to avoid also asking voters to raise the levy limit, all within about five years. He asked staff to model ending the policy and to bring the item back at the board's Dec. 8 study session.

Supervisor Matt Heinz disagreed. He said he still supports the policy "unless and until we can find some other way to support the programming and … the services that people have come to expect." Chair Jennifer Allen said she is anxious about a tax rate increase next year because residents are struggling with rent, mortgages and utilities. She also said absorbing the cost shifts would mean cutting services. Scott said cost shifts make up about 25% of the primary tax rate.

County Administrator Jan Lesher suggested the board consider special taxing districts, which she said other counties, such as Maricopa, use to stay under their limits. She said the jail complex's needs could cost a billion dollars in today's money. Supervisor Steve Christy said he doesn't share Scott's enthusiasm for Prop. 425 and doesn't embrace a new bond package, citing past bond failures. Christy and Scott both asked for a breakdown of how pay-as-you-go money is spent.

At the evening meeting

Administrator contract held for public review. Allen said the board had reached agreement on an employment contract with Carmine DeBonis Jr. to become county administrator. The board put off the vote until Nov. 24 so the public and employees can review the contract first. Allen said the hiring process had been "robust and very public."

Old Tucson moved to December. At Christy's request, the board moved its discussion of Old Tucson to a Dec. 8 study session and also put it on that night's regular agenda for possible action. The item covers the site's history and a notice that the county won't renew its lease and operating agreement for Old Tucson Studios. Christy said a matter "of that importance needs to have a dedicated opportunity for thoughtful and comprehensive discussion." A District 1 resident urged the board to keep events such as Nightfall and Yuletide running without a break.

Money for deed fraud alerts. The board gave the Assessor's Office $318,335 from the general fund contingency for an electronic alert system that state law (Senate Bill 1479) requires by Jan. 1, 2027. Property owners who sign up will be notified when the office receives notice of a change in ownership or mailing address. Scott said the Recorder's Office program works after the fact: "once a deed is recorded, it's too late."

Holiday renamed. The board renamed César Chávez Remembrance Day as Farmworkers Appreciation Day in county personnel policy, after directing in March that Chávez's name be removed from county policies and assets. Lesher said about 480 employees answered a survey on the new name. Employees keep a floating holiday in March.

Employee appeal standard changed. The board changed the standard the county's Merit System Commission uses when employees appeal discipline. The commission will now uphold discipline unless it was "arbitrary or taken without reasonable cause," replacing a "just cause" standard. A County Attorney's Office representative said "just cause" is undefined and that most Arizona counties use the new language. The employees' union, AFSCME Local 449, and the commission's chair spoke against the change.

Sheriff's outside legal bills. Scott questioned another $100,000 for the Audilett Law firm, which represents the Sheriff's Department, Sheriff Chris Nanos and two employees in the Bradley Lewis matter. He said that brings the contract to $650,000 over almost five and a half years, and asked for a report on why the case is taking so long. The amendment passed as part of the consent calendar.

Also discussed:

• The board approved a $1,205,000 contract with Modern Roofing to replace the Main Jail East roof.
• The board accepted $225,782 in Gila River Indian Community state-shared revenue to pass through to Tucson Unified School District for Pueblo High School's wrestling program facilities.
• Supervisors approved joining an opioid settlement with Albertsons Companies Inc. and a settlement with EX2 Technology.
• Two speakers urged the board to end wild and exotic animal shows at the county fair. One said four sea lions in the care of the fair's sea lion show vendor died this summer.
• A speaker asked the board to tighten draft data center zoning rules by lowering their 20-megawatt threshold.
• An invasive-plant task force warned that stinknet has spread to every supervisor's district and could begin flowering by mid-December.
• Scott said Prop. 425 had passed. "Although we have gratitude for the win, we should also show humility for the narrow margin of victory," he said.

This report was drafted by Claude Opus 5.5 from a live transcript produced by Deepgram Nova-2, then reviewed and edited by Nicholas De Leon with Claude Opus 5.5, and published at 6:37 PM MST on November 10, 2026. Read more about how this is made.