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CSA Biweekly Update (08.28.2026)

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On the August 28th, 2026, edition of the CSA Update:


Summit Preparations Begin: County Managers and Administrators Meet in Tubac


On Friday, August 21st, the County Managers and Administrators Association met in Tubac to review recent Association research priorities, including professional staff participate in a presentation on Data Center Siting, a review of the County AI Usage survey, and reminders for upcoming work session. Additionally, the managers and administrators got a first look at the county submitted proposals for the 2026 CSA Policy Summit. As we get closer to the summit in October, the Association will be reaching out to counties for feedback on the proposals as well as providing additional pre-summit briefings to supervisors, managers, and administrators.



County Outreach Continues: CSA Goes to Santa Cruz County


Though the Legislative Session feels like it just ended, CSA staff have been working hard to crisscross the state and provide in-person updates to each of the county Boards who participate in the Association. This means a road trip to each of the 15 county seats!


Last week, Association President and Apache County Supervisor Alton Joe Shepherd staff visited their tenth county this summer: Santa Cruz County (Already Visited: Coconino, Navajo, Yavapai, Gila, Yuma, Cochise, La Paz, Graham, and Greenlee). We look forward to joining the remaining counties over the next few weeks - Pima, Apache, and Pinal Counties are up next!


Thank you to all of the counties that have hosted our team so far!



Ballot Questions Update: Challenges to Legislative Referrals and Citizens Initiatives Reduce Number of Ballot Questions


Since we last updated you on the preliminary propositions destined for the 2026 November Ballot, a number of important key meetings and court decisions have come to pass. Two of the legislative referrals and the only citizens' initiative have been challenged in the court and subsequently disqualified from the ballot. These challenges have reduced the number of ballot questions we'll see on the 2026 General Election Ballot; however, one legislative referral could make a comeback.


Please find a brief update on the successful referral and initiative challenges as well as official proposition numbers below: 

 

Disqualified


  • HCR 2040: school districts; labor organizations; resources

    • This ballot referral would have prohibited school districts and school district employees from using public monies and resources to support a labor organization’s operations, conduct labor organization activities during work hours, or distribute communications in a way that consumes public resources on a labor organization’s behalf/

    • The Arizona Education Association challenged the referral, and Maricopa County Superior Court ruled the potential amendment to the constitution illegal. The Court found that the amendment’s language could be applied to all public sector unions, potentially outlawing them. No attempt will be made to appeal this ruling.


  • HCR 2048: military families; scholarship accounts

    • HCR 2048 would have prohibited the state from “confiscating” monies from any scholarship account of a qualifying student who is a child of a military family. It also invalidated any law or measure passed on or after November 1, 2026, that violated the outlined prohibition. 

    • The Arizona Education Association challenged this measure, and the Maricopa County Superior Court found it unconstitutional. However, supporters of this ballot measure have stated that they plan to appeal the ruling to the Arizona Supreme Court.


  • I-09-2026: “Protect Education Act” 

    • This citizens' initiative proposed a statutory amendment adding income eligibility criteria to Empowerment Scholarship Accounts (ESAs), limiting what ESAs may be spent on, establishing penalties for spending outside approved items, requiring reporting on ESAs, and specifying that monies unspent in any fiscal year are returned to the state.

    • Arizona Free Enterprise Club and Goldwater Institute challenged the initiative in court. The Supreme Court ruling sent the initiative back to the trial courts to determine the validity and number of signatures the petition received. As a result, the measure likely won’t make it to the ballot. 

 

Remaining Propositions


  • Prop 141 (SCR 1004): prohibit tax; monitoring; vehicle mileage 

  • Prop 144 (HCR 2001): citizenship; identification; contributions; early voting 

  • Prop 142 (HCR 2044): preferential treatment; discrimination; prohibited acts 

  • Prop 316 (HCR 2021): food; municipal tax; exemption 

  • Prop 317 (HCR 2055): drug cartels; terrorist organizations

  • Prop 318 (HCR 2003): interscholastic; intramural athletics; biological sex 

  • Prop 319 (SCR 1004): photo enforcement systems; voter approval

  • Prop 320 (SCR 1032): instructional expenses; operational spending; enforcement 


Please find a one-pager with summaries of each ballot referral here.


CSA Research Update: Minor Land Division Resource


We're pleased to announce that CSA's new research report on minor land divisions is now available.



Resources Now Available:

  • Minor Land Divisions Primer: Overview explaining the difference between minor land divisions and subdivisions, when lot splitting becomes illegal, the limited role counties have in regulating these divisions, seller disclosure requirements, key differences between county and municipal statutes, and information on road maintenance.

  • Legislative History: Review of the evolution of Arizona's minor land division statutes, including the original legislation in the early 1990s, the 1994 change to the subdivision definition from four to six lots, the development of the "acting in concert" provisions, changes to the Affidavit of Disclosure requirements, and other legislative proposals that have been considered over the years.

  • Road Maintenance Explainer: One-page handout designed to help residents understand why counties generally cannot pave or maintain private roads within these communities.

  • Video Explainer: A short video introducing minor land divisions and the issues they present, filmed in Graham County with Supervisor Paul David.


To make these materials easy to access and use, we've also launched a dedicated webpage that will continue to serve as a central hub for resources in this policy area. You may find them on our website at https://www.countysupervisors.org/general-government/minor-land-divisions



JLBC Update: August Fiscal Highlights


The Joint Legislative Budget Committee (JLBC) recently released their August monthly fiscal highlights, detailing state General Fund revenue collections through July 2026. Overall, July 2026 General Fund collections totaled $1.35 billion, representing a 7.3% increase over the prior year and generating a forecast gain of $47 million above the enacted budget forecast.  


The gain was primarily concentrated in the state’s Sales Tax category, however JLBC cautioned against interpreting these results as an ongoing trend, as the sales tax performance far exceeded overall FY 2026 performance. JLBC indicated they were exploring whether the higher-than-expected July collections were a result of technical issues.


Sales Tax:

Overall sales tax collections for July (which represent June consumer activity) grew by 7.9% above the prior year, representing a forecast gain of $32.4 million. Tax revenue from the retail/remote seller category grew by 9.5% in July, while use taxes posted a year-over-year decline of (3.8)%. The prime contracting, restaurant and bar, and utility categories all posted healthy growth rates in July.



Individual Income Tax:

Net IIT revenues in July were $537.7 million, posting a 5.9%% increase YTD and $7.5 million above the forecast. Growth in withholding, which rose 7.3% YTD, was higher than the recent estimates for wage and salary disbursements published by the Bureau of Economic Analysis at both the state and national levels. Total tax payments were $39.6 million, declining by (6.9)% over the previous year, and refunds were $35.3 million, an increase of 11.2% compared to July of 2025.


Corporate Income Tax:

Net CIT revenues totaled $53.8 million, reflecting 0.9% growth year-over-year and resulting in a forecast loss of $(2.2) million. 


Insurance Premium Tax:

IPT revenues were $89.1 million in July, growing by 10.6% compared to July of 2025 and generating a forecast gain of $11.5 million


HURF:

HURF collections totaled $156.9 million in July, representing 6.1% growth compared to last year and contributing to a forecast gain of $4.5 million. 


Other Indicators:

As of this month, JLBC has started to use the Consumer Sentiment Index to measure consumer outlook, rather than the Conference Board’s Consumer Confidence Index, because of it’s broader emphasis on consumer expectations for the economy and personal consumption. The University of Michigan’s Consumer Sentiment Index rose 11.5% to 55.2, with views on both the current situation and expectations for the future becoming more optimistic. However, overall consumer sentiment remains well below historic averages, with concerns over inflation persisting.

As of August 1, 2026, the total AHCCCS caseload was 1.70 million members, decreasing by (0.4)% from the previous month, and (9.1)% compared to a year ago. The Elderly and Physically Disabled (EPD) long-term care population increased by 0.4% over the prior month and has decreased by (0.7)% compared to a year ago. The Developmentally Disabled (DD) population increased by 0.5% over the previous month and has grown 5.4% over the prior year.


To view the full fiscal highlights, click here.


New Podcast Episode: How Community Bridges Supports Mental Health in Arizona


This week on Creatures of Statute, we're joined by Dane Binder, Director of Government Affairs at Community Bridges, Inc. (CBI), to explore Arizona's behavioral health system and CBI's role in delivering critical mental health and crisis services across the state. Tune in as we discuss Arizona's crisis response system, CBI's Treatment Response Centers for juveniles, and the organization's partnership in Pima County's innovative SAFR program.


You can access the episode here. 


Learn more about Community Bridges here.


A Look Back at Creatures of Statute: Who Pays for Justice? Funding the Right to Counsel in Arizona


With our Policy Summit on the Horizon, it's never a bad time to brush up on some of the issues we know are crucial to counties! Check out our older Creatures of Statute podcast - Who Pays for Justice? Funding the Right to Counsel in Arizona - as well as support documents below!



Check out our indigent defense overview and case study here.


Learn more about Indigent Defense Funding across the country here.



Arizona League of Cities and Towns: 2026 Annual Conference


Last week, the Arizona League of Cities and Towns hosted their 2026 Annual Conference. At the conference, leaders from across Arizona's now 92 cities and towns gathered to decide of the League's legislative agenda for the 2027 legislative session as well as hear from experts across a wide range of policy areas including data center siting, the upcoming 2030 census, energy, water, public safety, and more. In addition to city and town councilmembers, mayors, and professional staff, a number of county supervisors and their professional staff also attended the event to build relationships with their city and town counterparts as well as meet with attending legislators!


Please find the official list of proposals from the Leagues business meeting linked here.


CSA's Legislative Summary and CFO Guide Now Available: Two Final Publications Summarize the Policy Changes in the 2026 Legislative Session


At the conclusion of each legislative session, the County Supervisors Association puts out publications summarizing key legislation that was signed into law. Please find the 2026 CSA Legislative Summary and CFO guide below!

 

First, please access the Association’s 2026 CSA Legislative Summary by clicking HERE.

  • The Summary provides brief summaries on county-relevant legislation signed into law during the 2026 Legislative Session, accompanied by links to the official text of the bill and effective dates. It also includes the previously-published briefing on the FY 2027 state budget and the ten referrals that voters will see on their 2026 General Election ballots.

  • Reminder: The General Effective Date for new laws is September 12, 2026.

 

Second, please access the Association’s County Budget & Audit Guide (better known as the CFO Guide, and updated for 2026) by clicking  HERE.

  • Published annually, this guide serves as a practical reference for counties navigating budget development, audit requirements, legislative changes, and statutory compliance obligations. The updated edition incorporates relevant legislative updates from the 2026 legislative session and highlights changes affecting county budgeting, reporting requirements, and related processes.

 

Both publications will also be made available at https://www.countysupervisors.org/publications

 

Thank you for your patience as Association staff have worked to wrap up some of our final post-session deliverables. We’re hopeful that these will assist you and your staff as you work to implement county-relevant policies enacted in the 2026 Legislative Session. Please reach out if you have any questions about the contents of the Legislative Summary or the CFO Guide.


Save the Date: CSA Annual Policy Summit


In October 2026, Supervisors from across the state will meet in Coconino County for the Annual CSA Policy Summit. The 61 county supervisors use this event to vote on the Association's 2027 legislative, budget, and research agendas.


If you are interested in learning more about CSA's policy summit, please reach out to CSA staff!



Lifelong Learning: Upcoming NACo Webinars


NACo Public Health Leadership Academy Information Session

Monday, August 31, 2026 | 3:00 p.m. - 4:00 p.m. ET


The National Association of Counties (NACo), in partnership with the de Beaumont Foundation, is launching a second Public Health Leadership Academy (PHLA) cohort to strengthen county leadership in advancing public health. This webinar will review the key information applicants should know to apply to the PHLA and provide an opportunity for applicants to ask questions. 


To view more details about the Academy and review the application, visit NACo’s Public Health Leadership Initiative webpage. 


To register, please click here.


2026 NCCAE Federal-State Policy Exchange

September 2-4, 2026 | Cook County, Ill.


The Federal-State Policy Exchange (FSPX), formerly the “Knowledge Management Forum”, brings together representatives from the state associations and NACo for strategic discussions on shared policy priorities, with a focus on advocacy strategies for emerging county issues, such as tax reform and land use authority. It is co-hosted by NACo and NCCAE.  


To register, click here.


Protect County Operations from Email Attacks: Live Webinar Demo

Wednesday, September 2, 2026 | 3 p.m. - 4 p.m. ET


Email remains the leading entry point for cyberattacks—and one compromised county inbox can disrupt essential services, expose sensitive information, and undermine public trust.


Join us for a practical webinar and live demonstration exploring why counties need layered email security that protects messages both before and after they reach an employee’s inbox. You’ll learn how secure email gateways and API-based protection work together to combat phishing, credential theft, account takeover, malicious link redirects, and supplier compromise.


During this session, county leaders will learn:

  • Where traditional email security may leave critical gaps

  • How AI is making phishing attacks more targeted and convincing

  • How layered protection can strengthen Microsoft 365 environments

  • How to improve security without replacing existing infrastructure or disrupting mail flow


You’ll also see a live demonstration of how Proofpoint provides visibility across the full email attack chain from initial delivery to post-delivery threats and compromised accounts.

Attend to gain a practical framework for evaluating your county’s email security posture and protecting the services your residents depend on.


To register, please click here.

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