Three metro Phoenix mayors are pressing Arizona Gov. Katie Hobbs to detail her plans to soften the financial blow from repealing a tax on rentals, noting Hobbs’ approach has “not yet been shared” as cities face budget deadlines and possible cuts.
In a letter sent on Wednesday, the trio of Democratic and Republican mayors cited Hobbs’ past commitments to work with cities to address the impact of the revenue loss and preserve state revenues that aid municipalities.
The letter is signed by Phoenix Mayor Kate Gallego and Tempe Mayor Corey Woods, both Democrats, and Mesa Mayor John Giles, a Republican who campaigned for Hobbs in 2022.
“This year’s legislative session is upon us, though, and we remain concerned that a plan to replace this revenue has not yet been shared,” a copy of the letter obtained by The Arizona Republic says. “We respectfully request an opportunity to work with your office on solutions for restoring essential funding to Arizona cities and towns.”
The letter adds public pressure and urgency to an issue that Hobbs has said little, if anything, about this year. Replacing the foregone rental revenue was not mentioned in her State of the State speech — a policy roadmap for the year ahead — nor does it appear to be reflected in her budget proposal released in early January.