CSA Weekly Update (02.27.2026)
- 3 days ago
- 8 min read
Updated: 3 days ago
In the February 27th, 2026, edition of the CSA Weekly Update:
Connecting with Community Leaders: Gila Valley Leadership
New NACo Series: We Are Counties Campaign
New CSA Podcast Episode: State Decisions, Local Dollars: Impact of spending State Policies on County Budgets
From Statehood Forward: Arizona Highway User Revenue Fund (HURF)
CSA at the Legislature: CSA Staff Testimony
Committee Meetings: March 2-, 2026
Session Timeline: Important Dates and Deadlines
Lifelong Learning: Upcoming NACo Webinars
Connecting with Community Leaders: Gila Valley Leadership
On Thursday February 26th the County Supervisors Association's Executive Director Craig Sullivan delivered a presentation to rural community leaders about the history and mission of the County Supervisors Association, emphasizing its role as a non-partisan voice for Arizona’s 15 counties. He highlighted how counties serve communities locally while navigating the impacts of state and federal policies often where those policies directly affect residents. The presentation also touched on Arizona’s constitutional framework for counties, county finances and legislative priorities, and CSA’s commitment to protecting county authority and advancing data-driven advocacy on behalf of constituents statewide. CSA would like to thank Gila Valley Leadership for joining us in Phoenix for this presentation!
New NACo Series: We Are Counties Campaign
The “We Are Counties” campaign from the National Association of Counties (NACo) is a nationwide effort to spotlight the essential role America’s 3,069 counties play in keeping communities healthy, safe and thriving. From large urban centers to rural communities, counties work alongside state, federal, nonprofit and private partners to deliver critical services right where they matter most, on the ground. The campaign highlights how counties operate, the services they provide and the impact they have across every part of community life.
As part of the initiative, NACo offers a wide range of resources to educate and engage the public. These include Counties 101, an introduction to how county government works, the County Landscape Project, which examines county structures and responsibilities, and the County Explorer Data Tool, an interactive platform featuring data from all U.S. counties. The campaign also promotes civic engagement resources, celebrates National County Government Month each April, recognizes innovation through the Achievement Awards, and even partners with iCivics on the Counties Work game and curriculum for students. Together, these tools help counties tell their story and reinforce the message behind the campaign “counties are on the front lines, serving residents every day”.
For more information, please check out: We Are Counties | National Association of Counties
New CSA Podcast Episode: State Decisions, Local Dollars: Impact of spending State Policies on County Budgets
This week, we break down key legislative proposals that could impact county finances across Arizona. We explore pending state policies with the potential to restrict local revenue authority, as well as proposals that could shift costs to counties and drive additional spending. Learn more about what these proposals could mean for county budgets and the services Arizonans rely on.
To view our document detailing these proposals, click here.
To explore our handout detailing existing restrictions on county revenues and transparency requirements, click here.
From Statehood Forward: Arizona Highway User Revenue Fund (HURF)
This week’s segment of From Statehood Forward highlights the year 1970 and Arizona’s commitment to modernizing infrastructure funding and protecting revenue sources through the Highway User Revenue Fund (HURF). By updating Article 9 of the Arizona Constitution, the state not only ensured stable funding for road construction and maintenance but also future-proofed the system to account for emerging energy sources, paving the way for alternative fuels and modern transportation needs.
Highway User Revenue Fund (HURF):
Article 9: Public debt, revenue, and taxation
Originally established in 1952 to collect and allocate taxes on gasoline and diesel, HURF was updated in 1970 to extend protections to “any other energy source.” This forward-looking reform ensured that as Arizona’s transportation landscape evolved, funding for roads, bridges, and highways would remain secure. By embedding this provision in the Constitution, Arizona demonstrated foresight in infrastructure planning, balancing immediate needs with flexibility for the future.
HURF continues to play a critical role in keeping Arizona’s roads safe, efficient, and ready to support the state’s growth.
For more information about the evolution of Arizona's Constitution, click here
For more information about HURF click here
JLBC February Fiscal Highlights
The Joint Legislative Budget Committee (JLBC) recently released their February 2026 monthly fiscal highlights, detailing state General Fund revenue collections through January of 2026. Starting with this month, JLBC is comparing state revenue collections to the January Baseline forecast rather than the FY26 enacted budget forecast. Overall, January 2026 General Fund collections totaled $1.54 billion, representing a 2.9% increase fiscal year-to-date and generating a forecast loss of $(16) million below the baseline.
Sales Tax:
Sales tax collections for January, representing December 2025 sales activity, grew by 3.4% fiscal year-to-date. While prime contracting posted another month of declines, (3.7)% YTD, the Retailer/Remote Seller, Restaurant/Bar, Utilities, and Use Tax categories all outperformed revenue expectations. The combined Retail/Remote Seller category increased by 4.4% YTD and unlike prior months, much of the growth was attributable to traditional brick and mortar retail sales as opposed to Remote Sellers. Additionally, the Restaurant/Bar classification continued its trend of strong growth, up by 4.4% YTD. Overall, sales tax collections represented an $18.5 million forecast gain.
Individual Income Tax:
Net IIT revenues in January were $604.0 million, posting 5.7% growth YTD and $(1.8) million below the forecast. Given that the state’s filing season began at the end of the month, the January results were unrelated to final tax returns. Rather, there were technical timing issues with withholding collections, which was somewhat offset by growth in estimated tax payments resulting in that slight forecast decline. Total tax payments in January were $164.9 million, 12.7% above the previous year and $7.5 million above forecast.
Corporate Income Tax:
Net CIT revenues totaled $113.1 million, reflecting 2.3% year-to-date growth but resulting in a $(30.2) million forecast loss. Volatility continued this month, as lower-than-projected refunds were more than offset by significant declines in gross collections. January marked the lowest level of collections for the month since 2022.
Insurance Premium Tax:
IPT revenues were $1.6 million in January, more than twice the amount collecting in January of 2025. Actual collections represented a forecast gain of $0.4 million, with revenues up 12.4% YTD.
HURF:
HURF collections totaled $163.6 million in January, representing a 5.6% above January of last year and contributing to a forecast gain of $3.4 million. YTD, collections have grown by 1.9%.
Other Indicators:
JLBC also publishes several national and statewide economic indicators each month. Nationally, the Conference Board’s Consumer Confidence Index decreased to 84.5 in January, a decrease of (9.7) points from the December level. This is the lowest reading since May 2014 as consumers have become more pessimistic about inflation, expected future purchases, the job market, and business conditions.
As of February 1, 2026, the total AHCCCS caseload was 1.76 million members. Total monthly enrollment decreased (1.2)% from the previous month, representing a nearly (11)% decline from a year ago. For February 2026, the elderly and physically disabled (EPD) population decreased by (0.3)% over the prior month, representing an (0.8)% decline from a year ago.
The Supplemental Nutrition Assistance Program (SNAP) saw an (8.1)% decline in participants over the prior month, with program enrollment down (33.0)% over the prior year.
To view the full fiscal highlights, click here.
County Finance Officers Meet & CSA Presents at GFOAz
This week, the County Finance Officers Organization (CFOO) met in Coconino County to discuss legislative proposals impacting county finance, PSPRS funding policies, and procurement research. Participants also discussed the development of their FY 2027 budgets, along with challenges in tracking constitutional spending limits in real time.
At the Government Finance Officers of Arizona (GFOAz) Winter Conference, CSA's Director of Research & Analytics, Vanessa Fielder briefed attendees on state budget items and pending legislation impacting local government finance. Fielder, along with Rene Guillen the League of Arizona Cities and Towns Executive Director, discussed legislation impacting the various revenue streams local governments rely on and bills that would drive additional costs.
CSA highlighted tools available for local government to utilize in explaining county finance, including how the TPT formula works, pension contributions & debt, HURF's purchasing power, and the property tax system.
CSA at the Legislature: CSA 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.
Association staff testified on the following bill:
SB1504: PSPRS; service requirement; cost-of-living adjustment (Gowan) (text)
Committee Meetings: March 2 – 6, 2026
Please find the full calendar of committees linked here as well as all live proceedings linked here. Committees subject to change.
Monday, March 2nd
Tuesday, March 3rd
Wednesday, March 4th
9:00 AM - Senate Committee on Health & Human Services (Agenda, Video)
9:00 AM - Senate Committee on Regulatory Affairs & Government Efficiency (Agenda, Video)
1:30 PM - Senate Committee on Judiciary & Elections (Agenda, Video)
2:00 PM - House Committee in Federalism, Military Affairs & Elections (Agenda, Video)
2:00 PM - House Committee on Science and Technology (Agenda, Video)
Thursday, March 5th
Session Timeline: Important Dates and Deadlines
Friday, February 27th marks the end of Crossover Week. For context, during Crossover Week the only committees that meet are the Appropriations Committees in both chambers. Otherwise, all action during Crossover Week is taken in Committee of the Whole and Third Read. This week saw long calendars, resulting in very long nights as bills are transmitted to the next chamber. Many bills did not receive a hearing in their committee of origin, narrowing the bills that will progress in the session.
As the 57th Legislature, 2nd Regular Session progresses, the Association will continue to provide updates on important deadlines as they pass. Please find additional deadlines linked here as well as listed below:
Lifelong Learning: Upcoming NACo Webinars
Cyber Resilience in County Finance: Protecting What Matters Most
Friday, March 6, 2026; 2:00 p.m. - 3:00 p.m.
Cyber threats are increasingly targeting public sector finance teams and resilience starts with understanding the risks. In this webinar, Peter Forsgren of three+one shares real stories from ethical hackers to explore social engineering, emerging cybersecurity threats and practical steps counties can take to protect their people, data and financial systems. This webinar is brought to you by NACo EDGE, establishing people, purchasing, and performance cost-saving solutions that can be applied to counties nationwide. EDGE is owned by NACo, advised by county leaders and 100% focused on solutions for U.S. Counties. Learn more about NACo EDGE here.
To resister, click here.
Comments