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CSA Weekly Update (01.23.2026)

  • intern3274
  • Jan 23
  • 8 min read

In the January 23rd, 2026, edition of the CSA Weekly Update  



CSA Legislative Reception: Kicking Off the Legislative Session! 

On Wednesday, January 21st, the County Supervisors Association hosted our annual Legislative Reception for 2026. This continues to be an important event highlighting the State and County Partnership, where Supervisors, Legislators, Statewide Elected Officials, and state and local government professional staff have an evening full of camaraderie and delicious food.  

Association staff are extremely grateful to everyone who was able to attend our 2026 Legislative Reception. Thank you for joining us!  


County Leaders Meet in Phoenix: First CSA Board of Directors Meeting of 2026! 

On Thursday, January 22nd, County Supervisors met in Phoenix for the very first CSA Board of Directors of the New Year! The meeting began with a presentation from the Honorable Ann Timmer, Chief Justice of the Arizona Supreme Court, who provided interesting insights about Arizona’s judicial system and its continued partnership with county governments. Supervisors also had the pleasure of hearing from Matthew Chase, the National Association of Counties’ (NACo) Chief Executive Officer, about how counties are being represented on a national level. Mr. Chase addressed what concerns NACo is addressing at the federal level and opportunities for participation in NACo’s advocacy initiatives.  

To end the meeting, Supervisors heard from CSA staff regarding the FY 2027 County Budget and Legislative priorities, the current financial landscape of counties and the state, and the bills currently being processed through committees with potential county impacts. CSA Staff would like to thank everyone who was able to come in person or join from home for the first Board of Directors Meeting of 2026! 

Medium County Caucus: New Leadership Elected  

On Thursday January 22nd, the Medium County Caucus met to discuss key issues they are facing with a goal of being a more unified group. The Caucus also elected new leadership, welcoming Coconino County Supervisor Lena Fowler as the new Chair and Yavapai County Supervisor Nikki Check as the new Vice Chair. Members took turns highlighting county achievements such as forming new agencies, education strides, and addressing rural community needs. 

Supervisor Allen Appointed to the Arizona Criminal Justice Commission 

On January 15th, 2026, Pima County Supervisor Jennifer Allen was appointed by Governor Hobbs to the Arizona Criminal Justice Commission (ACJC) as the Board of Supervisors representative. Presently, A.R.S. § 41-2404 requires ACJC be comprised of the Attorney General, the Director of the Department of Public Safety, and the Director of the State Department of Corrections or their designees as well as 17 members appointed by the Governor including “one member of a county board of supervisors.” ACJC serves “as the central hub for criminal justice information, funding, and relationships, enabling [them] to identify challenges, implement solutions, and create a safer future for all Arizonans.”  Congratulations, Supervisor Allen! 

County Storytellers: Pinal County YouTube Channel  

On this week’s County Storytellers spotlight, CSA is highlighting the Pinal County YouTube Channel! The Pinal County YouTube Channel is an incredible resource for constituents to learn more about county operations by district, department, and event! Please enjoy learning more about Pinal County via the link here!  


The Arizona Legislature is back in session and with it comes the first major look at the state’s budget picture. This week, we recap what the Governor is prioritizing in her FY 2027 budget recommendation, how it compares to the JLBC Baseline, and, most importantly, what it all means for counties.  


Research Update: State-County Budget Touchpoints and the JLBC Baseline Forecast 

Last week, the Governor released her FY 2027 budget recommendation, proposing an $18.7 billion spending plan that includes $890 million in net new initiatives. The Joint Legislative Budget Committee (JLBC) also published its FY 2027 Baseline, which reflects the continuation of FY 2026 funding levels into the next fiscal year.  


JLBC Baseline: 

The baseline typically includes standard formula adjustments and does not incorporate any new policy changes. For FY 2027, JLBC anticipates the legislature will have $577 million in discretionary spending capacity. This figure is up from their October FAC meeting estimate, which previously predicted available resources would only be $67 million. Importantly though, the baseline does not include several major items, including tax conformity provisions, administrative changes pertaining to SNAP and Medicaid, and the continuation of traditional “ongoing one-time” spending. 


 

Over the budget window, both the baseline and the executive’s recommendation’s base revenue forecasts are similar, with differences in the governor’s projections attributable to proposed policy changes.  

 


FY 2027 Executive Recommendation: 

Governor Hobbs’ budget recommendation outlines several major priorities. Select provisions include her version of a tax conformity package, increasing affordability through the creation of the Arizona Affordability Fund and Housing Acceleration Fund, a new data center water usage fee, the repeal of an existing tax exemption for data centers, and a reauthorization of Prop. 123 to provide additional funding to Arizona’s K-12 schools. 



County Specific Highlights: 

Probation Officer Salary Costs: The Executive Recommendation fully funds the state’s $10.46 million obligation for probation officer salaries on an ongoing basis starting in FY 2027 

Mandated County Healthcare Payments: Both Executive Recommendation and JLBC Baseline increase county ALTCS payments in FY 2027 by over $40 million (roughly 9%) from FY 2026, driven by capitation rate increases and caseload growth 

SMART Fund Deposit: The Executive Recommendation deposits $10 million one-time into the SMART grant program for local governments in rural Arizona to draw down federal transportation grants 

Governor’s Emergency Fund & DFFM Wildfire Suppression: The Executive Recommendation includes a $20 million increase in the cap for the aggregate amount of liabilities incurred under a declaration of disaster in A.R.S. § 35-192(f). $20 million in one-time funding for DFFM wildfire suppression efforts 

 


To view CSA’s in-depth analysis on the executive’s recommendation, the baseline, and what it all means for counties, access our overview here. 

CSA at the Legislature: Staff Testimony 

As the legislative session pushes forward, CSA staff are engaging with the legislature through meetings with members, communicating with staff, and testifying before committees on issues of importance to county governments. This week, Association staff testified on the following bills:  


  • HB 2138: firefighters; employment status (Way) – TECHNICAL CORRECTION  

  • HB 2096: forgivable financial assistance; cesspool remediation (Griffin) – CSA PRIORITY  

    • Also featuring Deputy Gila County Manager, Michael O’Driscoll! 

  • HB 2022: elections; July primary; curing; observers (Kolodin) – SUPPORT  

Committee Meetings: January 26-29, 2026 

Please find the full calendar of committees linked here as well as all live proceedings linked here. Committees subject to change.   

Session Timeline: Important Dates and Deadlines 

As the 57th Legislature, 2nd Regular Session progresses, the Association will continue to provide updates on important deadlines as they pass. 


This week sessions began in full swing. The first Association priority bill, HB 2096: forgivable financial assistance; cesspool remediation (Griffin), was heard in the House Committee on Natural Resources, Energy & Water where it passed unanimously! 


Please find additional deadlines linked here as well as listed below: 


Lifelong Learning: Upcoming NACo Webinars 

The Current State of Student Debt and Forgiveness  

Wednesday, January 28,2026; 1:00 p.m. - 2 p.m.

 

This webinar is designed for county HR and leadership teams seeking practical ways to support employees struggling with student debt. 

Over 9 million public service workers, including full-time county employees, are eligible for Public Service Loan Forgiveness. Yet fewer than 3 percent have successfully received relief. 

The issue is not eligibility. It is awareness, complexity, and follow-through. 

Please join us as we speak with student debt forgiveness expert Tony Raffa, who will clarify today’s student debt landscape, including: 

  • What recent policy and executive actions mean for public sector employees 

  • How Department of Education changes affect forgiveness eligibility, timelines, and compliance 

  • Which student debt relief programs do employees actually qualify for today 

  • The current status of the SAVE program 

  • Common application errors that delay or derail forgiveness 

  • Rising delinquency and repayment restart risks 

  • What HR teams need to know about collections, wage garnishment notices, and employer responsibilities 

Attendees will also see how a new student debt navigation tool helps employees estimate their potential forgiveness, avoid costly mistakes, and reduce annual payments by an average of $2,244. 

For HR teams, this means a scalable way to offer meaningful financial support without adding administrative burden. 


Speakers: Tony Raffa, Alex Herrera, and Christopher Blanchette 


To register, click here. 


What to Know Before You Go to NACo’s Legislative Conference  

Thursday, January 29, 2026; 3 p.m. - 4 p.m. 


If this is your first time attending NACo’s Legislative Conference, this webinar is for you! Join NACo’s Membership Chair and staff to learn ways to maximize your experience at the NACo Legislative Conference. This conference is the premier opportunity for county leaders to exchange cutting-edge practices, engage with members of Congress, and collaborate on policy solutions. You’ll leave this brief webinar prepared to navigate the conference schedule and participate in sessions, including policy meetings, a federal agency expo, and summits on pressing topics. 


Speaker: Renee Couch, Membership Chair 


To register, click here. 

 

 

 

  

 





 
 
 

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