CSA Weekly Update (12.19.25)
- kaytlink
- 3 days ago
- 4 min read
In the December 19th, 2025, edition of the CSA Weekly Update:
New Podcast Episode - Connecting the Ships: A Conversation with CSA President Alton Joe Shepherd!
Road to Session: Where Are We Now?
Lifelong Learning: Upcoming NACo Webinars
Happy Holidays from CSA!
As 2025 comes to an end, the County Supervisors Association would like to wish you and yours a very happy holiday season and New Year. No matter what you’re celebrating, you’re a part of the county family! We hope you have a joyful time with friends and family!
New Podcast Episode: Connecting the Ships: A Conversation with CSA President Alton Joe Shepherd!
On this week's episode of Creatures of Statute, CSA Executive Director Craig Sullivan is joined by CSA President and Apache County Supervisor Alton Joe Shepherd to discuss his vision for next year and wish everyone a happy holiday season!
Please find Connecting the Ships: A Conversation with CSA President Alton Joe Shepherd linked here:
December Fiscal Highlights
The Joint Legislative Budget Committee (JLBC) recently released its December Monthly Fiscal Highlights, providing a preliminary look at Arizona’s General Fund revenue through November 2025.
Through November, the state collected $1.09 billion, a (0.9)% decline over the same period last year. This total was $(152) million below the revenue projected in the enacted budget, losses which occurred in both the tax and non-tax categories.
JLBC noted that in terms of the state’s tax categories, the losses were concentrated in both the individual income tax and corporate income tax categories.
Individual Income Tax: IIT collections posted a $(54) million loss, due almost entirely to a decline in withholding collections. However, this drop is inconsistent with current wage and salary growth, and JLBC does not think this loss is due to economic performance. Rather, the loss may be related to the furlough of federal government workers during the most recent government shutdown, and given the timing of withholding payments, the disruption would materialize in November collection data.
Corporate Income tax: CIT collections posted a $(49) million loss, due to higher levels of refunds compared to gross tax payments. Net CIT revenues are not typically negative, and this marks the second consecutive November that this has occurred.
In terms of the non-tax categories, forecast loss was mostly segregated to the state’s Lottery General Fund profit distributions, which were $(52) million below budget projections. Given that FY 2025 lottery ticket sales declined by (8.2)% during the year, and the timing of the general fund deposit generally occurs in the subsequent fiscal year, this resulted in the FY 2026 GF deposit being significantly lower than forecast.
Sales Tax:
Sales tax collections in November, representing October sales activity, posted a 3.4% gain fiscal year to date, generating a forecast gain of $6.0 million. While the retail/remote seller and the restaurant and bar classifications have performed moderately well, sales tax revenue from prime contracting declined by (8.8)% over the prior year. Detailed data from the Department of Revenue indicates that almost all the revenue decline is attributable to Arizona’s residential construction sector.
Insurance Premium Tax:
Insurance Premium tax collections were $600,700 in November, representing a forecast loss of $(0.5) million.
HURF Collections:
Highway User Revenue Fund (HURF) collections totaled $145.7 million, representing a (0.8)% decline over the previous year, generating a $(6.2) million forecast loss.
To view the full fiscal highlights, click here.
Road to Session: Where Are We Now?
As the holiday season comes and goes, the work for the next legislative session is only beginning. The 57th Legislature, Second Regular Session of the Arizona State Legislature begins on Monday, January 12th. With only 24 days left, the Association is preparing to play both offense and defense on behalf of Arizona's 15 counties.
Lifelong Learning: Upcoming NACo Webinars
Modern Networks, Smarter budgets: A County Leader's Perspective
Tuesday, January 13, 2026 | 2:00 - 3:00 P.M. ET
Join us for a fireside chat with Orleans County, NY, as they share how their team successfully transitioned from a traditional capital expense (CapEx) model to an operational expense (OpEx) model for network services.
When faced with rising maintenance costs and an expiring carrier contract, the county seized the opportunity to modernize its network and lock in predictable monthly costs. By bundling connectivity services with unified communications, they achieved immediate savings of over $124,000, eliminated recurring charges such as long-distance fees and third-party integration costs, and gained access to operational upgrades like call analytics and auto-attendants.
This shift not only strengthened financial planning through fixed monthly expenses but also freed up IT staff to focus on strategic initiatives.
Key takeaways:
Elimination of Ongoing Charges – Remove additional fees by modernizing services
Simplified Service Management – Bundle services to streamline billing and vendor relationships
Predictable Budgeting – Enable accurate long-term financial planning without surprise expenses
Operational Efficiency Gains – Enhanced tools improve resident service and free up IT staff to focus on strategic initiatives
Significant Savings – Leverage promotions and avoid large capital expenditures
To register, click here.
What to Know Before You Got to NACo's Legislative Conference
Thursday, January 29, 2026 | 3:00 - 4:00 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.