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CSA Weekly Update (11.21.2025)

  • County Supervisors Association of Arizona
  • Nov 21
  • 9 min read

In the November 21st, 2025, edition of the CSA Weekly Update:

Welcome, President Shepherd! Apache County Supervisor Takes Presidency

At the November 20th CSA Board of Directors meeting, County Supervisors from across the state officially welcomed Supervisor Alton Joe Shepherd as the new CSA President! President Shepherd has represented Apache County’s District 2 since 2016 and brings more than 17 years of elected public service experience to the role. His career includes serving on the 22nd and 23rd Navajo Nation Councils, where he contributed to the Resource and Development Committee, as well as being a member of the Ganado Fire Board. Before these positions, he worked in law enforcement for both local and tribal governments. With his extensive background and deep understanding of rural and tribal communities, President Shepherd is well-equipped to lead the Association in advocating for counties and strengthening partnerships with state and federal agencies to secure vital resources and support. We look forward to working with him to support county governments in the upcoming legislative session!


Thank You for Your Leadership, President Pancrazi!

We deeply appreciate Supervisor Pancrazi’s outstanding leadership over the past year. As President of CSA and Chair of the Legislative Policy Committee, she drew on a decade of experience in the Arizona Legislature to guide critical policy efforts. 


Supervisor Pancrazi will continue to serve on the Executive Committee for another year as Immediate-Past President, providing valuable support during the leadership transition. Thank you, Supervisor Pancrazi, for an incredible year!



Supervisor Kate Brophy McGee Joins the Executive Committee!

The CSA Board of Directors welcomed new leadership as Supervisor Kate Brophy McGee joined the Executive Committee as 3rd Vice President. She will be joining the six-member committee that serves as the Association’s leadership team.


Supervisor McGee brings extensive experience from both public and private sectors. She served nearly a decade on the Washington Elementary School Board, completed three terms in the Arizona Legislature, and was appointed to the Maricopa County Planning & Zoning Commission in 2021. She later joined the Maricopa County Special Health Care District Board in 2022 and was elected as Maricopa County Supervisor for District 3 in November 2024.


The 2026 Executive Committee will include President Alton Shepherd (Apache), Supervisor Rex Scott (Pima), Supervisor Mary Mallory (Yavapai), Supervisor Paul David (Graham), Supervisor Kate Brophy McGee (Maricopa), and Immediate Past President Lynne Pancrazi (Yuma).


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CSA Honors Mike Townsend for Transformative Leadership at PSPRS

On November 20th, the CSA Board of Directors honored Mike Townsend, the former Administrator of the Public Safety Personnel Retirement System (PSPRS). Appointed in 2019 during a challenging period, Mr. Townsend played a pivotal role in stabilizing and revitalizing PSPRS-managed pensions. His leadership safeguarded taxpayer investments and ensured the retirement security of first responders, corrections officers, judges, and elected officials. Mr. Townsend leaves behind a lasting legacy of integrity and progress. We are unbelievably grateful for his service throughout these years, and we wish him a retirement filled with health, happiness, and cherished time with loved ones.



Small Counties Come Together

On Wednesday, November 19th, the Small County Caucus met in Phoenix to discuss combined rural priorities and share stories of successes from their counties. Supervisors discussed mining, energy, and agriculture projects throughout their collective counties and how county boards have collaborated with constituents and industries to bring important projects to their communities. Navajo County hosted this month's meeting, and Navajo County Chairman - Supervisor Jason Whiting - impressed upon the group the importance of small counties coming together to build community with each other, discuss solutions to county issues, and collaborate with their state legislators to further the goals of better governance for their collective constituency.


CSA Board of Directors Assembled in Phoenix

During the November meeting of the County Supervisors Association Board of Directors, county officials congregated in Phoenix to discuss progress on the research, legislative, and budget priorities finalized during the 2025 CSA Policy Summit in Yuma County. Supervisors received a pre-meeting presentation on water law and policy from Rhett Larson, the Richard Morrison Professor of Water Law at Arizona State University’s Sandra Day O’Connor College of Law, as part of CSA’s Learning Series. During the Board of Directors meeting, supervisors also received an update on Water Infrastructure Finance Authority of Arizona projects from Ben Alteneder, Assistant Director for External Affairs, WIFA. The Association also had the chance to thank our incredible intern, Camila Olave-Rodriguez! As CSA's 22nd intern, she has been an incredible resource to the team and assisted in various research projects on behalf of the counties during her time with us.


Finally, the supervisors welcomed new leadership to the Executive Committee with the transition of the Presidency from Yuma County Supervisor Lynne Pancrazi to Apache County Supervisor Alton Joe Shepherd and Maricopa County Supervisor Kate Brophy McGee taking the 3rd Vice-President position. Supervisor Pancrazi will remain on the Executive Committee in the position of Immediate-Past President.


Creatures of Statute Episode: Under the Hood of CSA’s Transportation Resolution


This week in our podcast, Creatures of Statute, we break down CSA’s Transportation Resolution and explore the policy factors affecting Arizona’s transportation system.


Find out why county HURF only buys about half of what it could ten years ago, and less than a third of what it could have when the Legislature last set the gas tax in 1990.


Special thanks to Graham County Supervisor Paul David, Mohave County Manager Sam Elters, and Economist Jim Rounds for their insights.




 To access our adopted resolution click ​here​, and you can review additional materials on this topic here: www.countysupervisors.org/transportation. All CSA resolutions are at countysupervisors.org/advocacy.



The Scoop on Special Districts

Arizona voters can create special taxing districts to fund vital services like jails, public health, libraries, and flood control. Want to learn more? Explore the full overview of these districts and see which provide funding for essential county services here.


​Timeline of Statutory Authorization  ​

Scroll along this timeline to see an overview of the years that state policymakers first authorized the creation of the various types of special taxing districts in Title 48 of the Arizona Revised Statutes.

JLBC: Monthly Fiscal Highlights


The Joint Legislative Budget Committee (JLBC) released their October Monthly Fiscal Highlights, providing insight into the fiscal performance of the state General Fund through October 2025.

Through October, the state collected $1.44 billion in tax revenue, an increase of 9.9% compared to the prior year. These results posted a forecast gain of $188 million. There are multiple contributing factors to be considered to help us understand this month’s performance:


  • Individual Income Tax (IIT) continued to grow by 8.6% fiscal year to date, resulting in a $136.4 million forecast gain during the month of October.  JLBC attributed the forecast gain to a change in payments and refunds during the month of October due to tax filing extensions from the spring tax season.

  • Additionally, sales tax collections have grown 3.1% fiscal year-to-date (FYTD), resulting in forecast loss of $19 million. While the retail/remote seller category performed modestly well, with 5.3% growth FYTD, and restaurant and bar sales posted 4.3% growth, prime contracting continued with flat performance of (0.9)% FYTD.

  • Corporate Income Tax had an unexpected growth of 17.3% resulting in collections of $229.9 million – the largest amount ever collected during the month of October. JLBC is unclear about the cause of the change and while previous incidents attributed it to technical errors, Department of Revenue (DOR) data indicated otherwise.


Year-to-date, excluding Urban Revenue Sharing and one-time adjustments, General Fund revenues are 3.9% above the previous year. Moreover, JLBC note that October’s surprising revenue gains and the state’s year-to-date performance pose a reevaluation of the initial FY 2026 projected revenue growth. The October 9th revenue forecast assumed slow, 2.0% growth in FY2026. If state revenues remain at the October performance levels, JBLC expects a revenue base increase, thus resulting in more budget resources. However, JBLC cautions that an increase in budget resources would not address the challenges the budget faces in the coming year.


Below is a summary of the performance of the state’s major tax categories.


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Sales Tax: 3.1% FYTD

October sales tax collections – reflecting September sales activity – increased by 3.1% year to date, performing below forecast by $(19.3) million. Retail/remote seller and restaurant & bar classifications performed moderately well, with a growth of 5.3% and 4.3% respectively. Prime contracting revenue growth remained flat at a rate of (0.9)% YTD. DOR data suggest that the decline in prime contracting sales tax is associated with a decline in activity of the residential construction sector.


Individual Income Tax: 8.6% YTD

Individual income tax revenues increased by 8.6%, generating $136.4 million above the forecast. This growth was concentrated in payments and refunds, with October having higher levels of tax filing activity due to spring tax extensions due on October 15th. These final payments collected total to $134.7 million, reflecting a growth of 15.7% YTD and generating a forecast gain of $41.1 million. Similarly, refunds amounted to a $39.1 million forecast gain, that is, a (13.0)% decrease YTD – due to overestimation of refund levels in the enacted budget.


Corporate Income Tax: 17.3% YTD

Corporate income tax revenues increased by 17.3%, generating a $175.1 million forecast gain. Collections represented the largest ever for the month of October, more than double the previous record set in October 2024.


Insurance Premium Tax: 13.0% YTD

Insurance premium tax revenues grew by 13.0%, generating a $26.3 million forecast gain.


HURF Collections:

Highway User Revenue Fund (HURF) collections were $593.6 million YTD, representing an increase of 2.2% over the previous year resulting in a forecast loss of $(6.3) million.


Economic Indicators:

In addition to the revenue update, JLBC reports on serval monthly economic indicators. In October, the Consumer Confidence Index decreased by (1.0)% points to 94.6, the lowest it has reached since April 2025. This reflects ongoing consumer worries about inflation, homebuying, and future expectations. On the other hand, consumer’s views of the present remain positive and future worries have yet to impact on their spending. As of November 1, 2025, the AHCCCS caseload was 1.82 million for the month of November, a slight decrease (1.6)% from the month of October and steady decrease (11.4)% from the year prior. In October 2025, there were 775,813 individuals receiving SNAP benefits, representing a (9.3)% decline in program recipients from the month of September and a (17.6)% year over year.

Upcoming Deadlines, Conferences, and Webinars


NACO Ongoing Webinar - Inside Washington: County Impacts from the White House & Congress

Biweekly on Thursdays | May 15 - December 11, 2025, 3:30-4:30 P.M. ET


Building off NACo’s First 100 Days webinar series, we are starting a biweekly series to provide timely updates and analysis on key developments from the White House and Congress. Each session focuses on policies and actions that directly impact counties — from federal funding and regulatory changes to intergovernmental partnerships. Tune in every other week to stay informed on how these evolving federal dynamics may shape county priorities, responsibilities and operations.

To register, please click here.

Lifelong Learning: Upcoming NACo Webinars + Events


Transforming County Services in the Era of AI: Real-World Uses for Elections and Beyond

Tuesday, December 2, 2025 | 2:00 - 3:00 p.m. ET


Join county government leaders as they share practical, battle-tested ways they’ve transformed operations in the age of AI — from consolidating content and replacing legacy file systems to securing mission-critical election workflows.


What you’ll hear: real use cases for content consolidation across field work and beyond

Field-proven workflows: how field workers trigger alerts to project teams, and keep project documentation current across large projects

Operational backbone & security: how counties run standard operating procedure libraries, directive distribution, and secure election operations

Where AI fits: panelists will touch on AI as an enabling topic - when useful and practical - without letting it overshadow operational priorities.


Walk away with actionable stories, implementation tips, and customer examples you can apply in your own county operations.


To register, click here.


Modernizing County Infrastructure: Empowering Smart, Secure, and Resilient Communities

Wednesday, December 3, 2025 | 2:00 - 3:00 p.m. ET


How County Leaders Can Transform Aging Systems to Meet Citizen Expectations and Future Demands


Counties are at the forefront of delivering essential services—from public health and safety to transportation and education. Yet many local governments are constrained by outdated digital infrastructure, siloed legacy systems, and growing security risks.


This webinar—designed for county executives, CIOs/CTOs, and operations leaders—explores practical approaches to modernizing networks, integrating cloud and on‑premises platforms, and protecting sensitive citizen data. You’ll discover actionable strategies and real‑world solutions, that enable operational agility, resilience, and compliance.


Learn how future‑ready infrastructure can position your county to lead in smart government initiatives and prepare for emerging capabilities like AI, digital twins, and next‑generation applications.


Register now to learn how your county can deliver faster, safer, and more coordinated citizen services—today and tomorrow.


To register, click here.


2025 Fall Board of Directors Meeting and County Storytellers Symposium

Dec. 4–6, 2025, 2025 | Wise County, Texas


Under the leadership of National Association of Counties (NACo) President J.D. Clark, the 2025 Fall Board of Directors Meeting and County Storytellers Symposium will convene county leaders in Wise County, Texas December 4–6, 2025.


NACo’s Board of Directors will also conduct business meetings at this event – check the schedule for details.


Registration includes access to all symposium sessions, receptions and dinners.


All correspondence regarding registration will come from either mchavez@naco.org, nacomeetings@naco.org or naco@naco.org. Please add these email addresses to your safe sender list. Should you receive false correspondence, please report and email nacomeetings@naco.org.


To register, click here.

 
 
 

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