Bill
HB 4149
Small counties under 250,000 population can use any county revenue source, including special tax district funds, to meet fiscal obligations in FY 2027, with a $1.25 million cap for
HB 4149 (Arizona, 57th Legislature, 2nd Regular Session)
Title: 2026-2027; local government
Purpose
- The bill aims to address local government financing for counties with smaller populations (fewer than 250,000 residents per the 2020 U.S. Census) as part of the FY 2027 budget process.
- It allows these counties to meet any county fiscal obligation using revenues from any county source, including monies from countywide special taxing jurisdictions where the Board of Supervisors serves as the board of directors.
Key Provisions
1) Expanded funding flexibility for small counties
- Section 1 allows a county with population < 250,000 to meet any county fiscal obligation from any source of county revenue in FY 2027.
- This includes revenue from countywide special taxing jurisdictions under the board of supervisors’ control.
- Limitation: The county may not use more than $1,250,000 for purposes other than the purposes of the revenue source (i.e., the revenue source’s intended purpose must be preserved, with up to $1.25 million allowed to fund other uses).
2) Reporting requirement
- By October 1, 2026, each eligible county must report to the Director of the Joint Legislative Budget Committee (JLBC):
a) Whether the county used a revenue source for purposes other than its intended purpose to meet a county fiscal obligation.
b) If applicable, the specific revenue source and the amount of revenues the county plans to use in FY 2027.
Who is affected
- Counties with populations under 250,000 (per 2020 U.S. Census) are directly affected.
- Potential impact on county budgets and financing decisions, particularly for those relying on revenues from countywide special taxing jurisdictions.
Fiscal/Timeline Details
- Effective scope: FY 2027 (fiscal year 2027) for the broad financing flexibility.
- Application limit: No more than $1,250,000 may be used for purposes outside the intended purpose of the revenue source.
- Reporting deadline: October 1, 2026, to JLBC with details on any reallocation of revenue and plans for FY 2027.
Context and Notes
- This bill appears to be a component of broader FY 2027 budget-related measures, enabling smaller counties to adapt their fiscal obligations by permitting broader use of revenue sources, subject to a monetary cap and a formal reporting requirement.
- The text references the Senate/House budget process and the JLBC for oversight and information sharing.
Summary in plain terms
HB 4149 would let small counties (pop. < 250k) use any county revenue source—including funds from countywide tax districts—to cover county fiscal obligations in FY 2027, with a cap of $1.25 million for uses not aligned with the original purpose of that revenue source. By October 1, 2026, eligible counties must report to the JLBC whether they diverted funds from their intended use and, if so, what sources and amounts they plan to use in FY 2027.
Compiled from official sources — confirm details with the bill’s official record.
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