Tucson facing drop in state funding

The city of Tucson has a balanced proposed budget for the 2025 fiscal year, but the city manager’s office said that due to changes in Arizona’s income tax, the city is receiving $27 million less in state funding.

Last year, Tucson saw $144,838,085 from the state of Arizona. This year, that number dropped down to $117,387,925.

The Office of the City Manager, which held a budget town hall Tuesday, said this is because of a 2.5% flat rate on income tax that went into effect in 2023.

Funding from the state of Arizona makes up 12% of Tucson’s revenue, according to the city.

Assistant City Manger, Timothy Thomure, said that promises made to Tucsonans were already baked into the budget and won’t be affected by the drop in revenue.

“Any promise we’ve made to the voter in the form of they voted for a property tax or a sales tax, any promise we made as part of a community engagement, those investments are built into the budget,” Thomure said.

He also said that Tucson has a safety net in the form of $142 million in savings.

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