Every day, the City of Tucson provides essential services to ensure the safety, health and prosperity of our community.

In June, my colleagues on the City Council and I passed a $2.3 billion budget for next year that includes critical investments in affordable housing, public safety, climate resilience, and road improvements. While we are investing in these important initiatives, declining state revenues – directly caused by actions by the Republican-led Legislature – are jeopardizing our ability to sustain this work. Cities like Tucson have already made significant budget changes to directly address these challenges.

Cities and towns in Arizona have historically relied on state revenues to fund important city functions. This formula relies heavily on state income tax revenues. It returns locally generated tax dollars to cities like Tucson. These funds are used to provide essential services without raising other tax rates on the local community.

Unfortunately, Arizona’s income tax revenues have declined significantly since the passage of a flat 2.5% income tax in 2022, championed by former Governor Doug Ducey. As a result of the flat tax, lower state revenues over the past two years recently led to a $1.3 billion state deficit for fiscal year 2025, forcing lawmakers to cut state agencies and delay critical infrastructure improvements across Arizona. But these negative effects have not only been felt at the state level.

In true and typical fashion, the Republican-led legislature adjourned without providing any relief for cities and towns feeling the effects of Ducey’s flat tax. For the city of Tucson, the situation is dire: our state revenues will drop by approximately $27.4 million in the current fiscal year.

To put these massive cuts in perspective, a $27.4 million cut could result in a 20 percent reduction in the city’s Housing Authority spending, weakening our Housing First strategy and hampering our efforts to promote affordable housing throughout Tucson during a significant housing crisis. Such a cut could impact the emergency response capabilities of the Tucson Fire and Police Departments at a time when we need them most. A cut of this magnitude would mean taking 168 Tucson firefighters, along with all their gear and personal protective equipment, or 100 Tucson police officers, along with their patrol cars and personal protective equipment, off the streets. These state actions have required my colleagues on the Council and I to prioritize our recently passed budget in a way that avoids these catastrophic consequences, at the expense of potential new spending on additional housing needs, public safety services, investments in our parks, or our roads and infrastructure.

To make matters worse, we have been advised to plan for further cuts to state revenue. City officials estimate $400 million in revenue losses over the next ten fiscal years. These ongoing cuts underscore the urgent need for local leaders to plan ahead so our city can maintain the services our citizens rely on, despite decisions at the state level that threaten the delivery of our core city services.

I am working closely with our City Manager to discuss the best paths forward, seek cost-saving measures, and explore new ways to support our core city services. The impacts we have already experienced, coupled with the uncertainty created by these reduced revenues, mean we must be honest with ourselves about the challenges we face – which are not of our own making. I trust that Tucson residents share my concerns about the true impact of the flat tax on our city.

As mayor, I am committed to ensuring that Tucson’s city budget and city government meet the most pressing needs of our region. Together, we can find solutions that allow us to protect the vital city services needed to improve Tucson’s economy and quality of life.