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CSA Weekly Update (06.12.2026)

  • Jun 12
  • 7 min read

On the June 12th, 2026, edition of the CSA Weekly Update:

Thanking Outstanding Legislators: Honoring Senator Brian Fernandez


On Wednesday, June 10th, Yuma County Supervisor Lynne Pancrazi presented Senator Brian Fernandez with a 2026 CSA Good Government Award! The Association is incredibly grateful for the efforts of Senator Fernandez to protect local taxpayer investments in the Public Safety Pension Retirement System as well as helping to further other county legislative and budget priorities.


NACO's County Leadership Institute: Congratulations Supervisor Mary Mallory!


Last week, Yavapai County Supervisor and CSA Executive Committee member Mary Mallory completed the National Association of Counties County Leadership Institute! Supervisor Mallory participated in this rigorous program in Washington D.C. that enhances the capability of county officials to identify and implement innovative solutions to complex challenges facing county government. Through this program, attendees learn how to effectively address the demands of personal leadership in a new era of government.


Congratulations Supervisor Mallory on graduating from the CLI Program!




County Managers Discuss State Budget, Upcoming Research Priorities, and Legislative Priorities for 2027: CMA Meeting in Prescott


On Friday, June 12th, the County Managers and Administrators Association met in Prescott to discuss the status of various Association research initiatives, the status of the state's FY 2027 budget, and the upcoming CSA Policy Summit. The managers and administrators were also joined by Coconino County Treasurer Sara Benatar, who is currently running for the position of Second Vice-President of the National Association of Counties and who discussed her campaign for the position. Finally, the Association asked the managers and administrators in attendance to consider upcoming research initiatives and potential Association resolutions for the upcoming fiscal year.


Collaborative Study on Procurement Practices


On June 11th, 2026, the Arizona Board of Regents published an article discussing a joint study with Arizona State University, the County Supervisors Association, and the Arizona League of Cities and Towns on procurement practices across the state. The article - "Board approves additional Regents’ Community Grant to evaluate procurement reforms in Kingman and Mohave County." - discusses how gaps in current procurement regulations can create issues in consistency statewide, and with already limited resources at the local level these constraints can have an exacerbated impact. The article also points to progress already being made with programs such as cooperative purchasing.


To read the full article from the Arizona Board of Regents, please click here. Budget Update: Where Are We Now?


Session Update: Budget Done, Sine Die Imminent


As of 3 PM Friday, June 12th, 2026, the Legislature has not yet adjourned sine die, but it appears they are on track to do so today. After session is complete, we will be proviiding a full update on the 2026 Legislative Session.


While we are still awaiting final legislative action for ballot referrals and a few straggling bills, the Legislature has passed out the Fiscal Year 2027 budget package!


The Arizona House & Senate introduced budget bills on the afternoon of June 9, 2026, outlining a $18.3 billion spending plan for FY 2027. The bills were negotiated between the legislative majority and Governor’s office, and passed with broad bipartisan support. Some of the major items include federal tax conformity, a three-year moratorium on new data center sales tax exemptions, a 4% corrections officer salary increase, and select investments in child safety operations, victims of crime assistance funding, and wildfire suppression efforts.



The plan relies on a number of revenue and expenditure assumptions across the budget window. Notably, the state has assumed larger than anticipated revenue collections, coupled with lower-than-expected enrollment in AHCCCS, lower school enrollment, and savings attributable to the remediation of the state’s SNAP error rate penalty. Looking at the state’s structural balance table, the legislature will have roughly $24M in available discretionary resources for new spending initiatives next session.



Below is a summarization of some of the major county priorities and where they landed in the FY27 budget package:

 

☑ Probation Officer Salary Costs: Includes $10.46M in additional funding for probation line items for FY 2027. Appropriation is $10.46M one-time in FY 2027, reduced to $0 in FY 2028 but then set at $10.46M ongoing in FY 2029. Includes a ($123,000) lump sum reduction in the Superior Court budget. 

 

☑ Protect County Pass-Throughs: Continues other ongoing payments to counties including appropriations to maintain essential county services and to defray the increased cost of Elected Officials Retirement Plan (EORP) contributions.  Agency budget reduction amounts don't include county pass through appropriations, however no specific prohibition on taking reductions from county appropriations is included

 

☑ CORP Employer Contribution Increase Funding: Starting in FY 2027, appropriates $377,100 to the Department of Administration to reimburse counties for cost of FY 2026 state budget policy increasing employer contribution by +0.5% for detention and corrections officers. Includes a fixed amount to be distributed to each impacted county 


☒ Governor’s Emergency Fund & Wildfire Prevention Funding: Does not include any above-baseline funding for wildfire prevention funding. Does include $10.2M for DFFM wildfire suppression funding

 

☑ Opioid Settlement Monies ELR Excludability: Includes one-time penalty relief for the expenditure of opioid settlement funds in FY 2027. Amends statute to prohibit local government opioid settlement funds for safer smoking equipment 

 

☑ Arizona Long Term Care System (ALTCS) contribution revision: Revises total county ALTCS contributions to $445.8M, down ($4.3M) from the Joint Legislative Budget Committee (JLBC) Baseline following correction to county model. Does not include any other increases above the Baseline 

 

☑ Flexibility Language: As session law, allows counties with under 250,000 persons to use up to $1.25M of any county funds to meet any county fiscal obligation.  Counties are still required to report to the JLBC by October 1, 2026, if the county used the flexibility language and if so, the specific amount and source of revenue used 

 

Additionally, a number of additional items contained within the FY27 budget package are relevant for counties, summarized below:

 

Increases Superior Court Judge Salaries 

  • By $10,000 to $210,000 effective Jan. 1, 2027

  • Approximately $4.2M impact to county GF in first full fiscal year

  • Increases state GF appropriations to cover state portion of superior court judges and JP salaries

 

HURF Diversion to SMART Grant Program

  • Permanently diverts $2.5M in HURF revenues to the SMART Grant program (State Match Advantage for Rural Transportation Fund)

  • Repeals the existing $1.0 million diversion to the Economic Strength Projects Fund

  • Approximately $285,000 reduction in county HURF distributions; counties outside of Maricopa and Pima eligible for SMART Grants

 

Modified Erroneous Conviction statutes to cap the state’s liability

  • State not liable for compensation/reimbursement payments exceeding erroneous conviction fund balance



To view CSA’s preliminary analysis of the budget and the relevant county touchpoints, view our overview here.

You can also access the document on our annual publications page here.

New CSA Podcast - County Touchpoints in the FY27 State Budget


In this week’s podcast, we break down the FY 2027 state budget package introduced by the Arizona Legislature this week after months of negotiations between legislative leaders and the Governor's Office. We discuss the state's fiscal outlook, review several of the major tax and spending provisions included in the proposal and take a closer look at where key county priorities landed in the final agreement.


You can listen to the episode here.


To view our full analysis of the budget as introduced, view our document ​here​

  • *Please know, some amendments to the budget will occur over the course of today. We will finalize this document when the budget is complete.  


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. Registration details will be out soon. Looking forward to seeing you all there!


Looking Back on 2026: Watch Archived Committee Meetings


At the time we are finishing this newsletter, the legislature is almost at sine die. So on a potentially premature note, congratulations to everyone on a successful legislative session! While there won't be any more livestreams for the foreseeable future, the Legislature keeps an archive of the committee meetings every session. If you would like to access this archive, click here.


Lifelong Learning: Upcoming NACo Webinars


NACo Policy Insider Webinar Series: Understanding the Federal Landscape for Counties, June 18

Thursday, June 18, 2026 | 3:30 p.m. - 4 p.m. ET


Last year's Inside Washington series is now NACo Policy Insider, a bi-weekly webinar offering an overview of the full federal policy landscape impacting counties, as well as deeper dives into specific policy areas, equipping county leaders with insights, context, and strategies to engage effectively on key issues from transportation and infrastructure, to public lands, to health and human services, and more. 


To register, please click here.


From Concept to Impact: How Counties are Successfully Evaluating the Use of AI

Monday, June 22, 2026 | 1:00 p.m. - 2:00 p.m.


AI is transforming county government, but responsible adoption requires more than enthusiasm. In late 2025, the New York State Association of Counties (NYSAC) partnered with CAI to tackle a critical question: how can counties objectively evaluate AI tools for cost, security, data protection, and real-world fit? The answer became the GovAI Trustmark, a first-of-its-kind AI certification framework built by and for county government, launched in the spring of 2026. In this NACo webinar, the practitioners who were part of the workgroup will share the process in building this online evaluation dashboard and how it can work for counties nationwide.


Key takeaways:

  • A practical framework for evaluating AI - Learn how counties can objectively assess AI solutions across cost, security, data protection, and real-world applicability—moving beyond hype to informed decision-making

  • Insight into GovAI Trustmark - Learn how and why the GovAI Trustmark was created, and what makes it a groundbreaking framework purpose-built for county government

  • Lessons from county practitioners - Hear firsthand what it took to design and launch the Trustmark, including key decisions made, and lessons learned along the way

  • A scalable model for counties nationwide - Discover how this framework can be applied across counties of all sizes to accelerate AI adoption while managing risk and ensuring public trust


To register, please click here.


Collaborative Leadership Leads to Housing for All

Wednesday, June 24, 2026 | 2 p.m. - 3 p.m. ET


Join the National Association of Counties and the National Association of Homebuilders for a conversation on approaches to advancing attainable housing solutions in communities across the country. This webinar will explore how local leaders are building consensus, fostering collaboration and advancing practical housing strategies that meet the needs of residents.


Featuring Supervisor Laura Capps of Santa Barbara County, California and Commissioner Bill Truex of Charlotte County, Florida, this discussion will highlight how county leaders are working toward shared solutions to address housing challenges in their communities.


Panelists will share how a collaborative, solutions-oriented approach to housing can help drive meaningful progress and strengthen communities.


To register, please click here.


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