local government; FY2026

HB 2970 allows Arizona counties with under 250,000 residents (based on the 2020 census) to use certain revenue sources flexibly - up to $1.25 million - for any county spending needs during fiscal year 2025-2026, rather than being restricted to specific purposes. Counties must report by October 1, 2025, if they use this flexibility, detailing the revenue source and amount. The bill was vetoed by the governor on June 25, 2025, so it did not become law. This directly affects smaller Arizona counties managing their budgets.