Provided by Arizona Capitol Consulting
September marks the shift from the 2026 legislative session to implementation and preparation for 2027. Most laws passed during the regular session took effect on September 12.
Our quarterly board meeting with the Arizona Department of Health Services was productive, and implementation of the new rules remain underway. We are continuing to assist the Department and provide industry input as needed.
State Revenue Indicators
JLBC’s September Monthly Fiscal Highlights show Arizona beginning FY 2027 modestly ahead of projections, even as August revenues and housing permits softened. August General Fund revenue totaled $1.22 billion, $9.8 million below forecast and 3.2% below the prior year. JLBC cautioned that the year-over-year comparison was distorted by a tax-reporting error in August 2025.
JLBC also reported that the Arizona Department of Education projects Empowerment Scholarship Account (ESA) costs of $1.26 billion in FY 2027, and $1.43 billion in FY 2028. Those estimates will remain an important factor in future state budget discussions.
Interim Legislative Activity
The Joint Legislative Budget Committee will meet September 30. The committee’s fiscal reviews will help establish the starting point for agency requests and legislative budget proposals ahead of the 2027 session.
Other Legal Developments
- Proposition 314: On September 10, the Arizona Court of Appeals affirmed the dismissal of a constitutional challenge to the voter-approved Secure the Border Act. The ruling leaves the measure in place.
- Automated license-plate readers: Attorney General Kris Mayes is conducting a statewide review of Flock cameras and similar systems. The review will examine their use, privacy implications and potential Fourth Amendment concerns, with a report to be provided to the Governor and Legislature.
November Election Update
Arizona’s general election will be held November 3. The voter-registration deadline is October 5 at 11:59 p.m., and early voting and the mailing of early ballots begin October 7.
Voters will decide several significant statewide races, including:
- Governor: Katie Hobbs (D) and Andy Biggs (R)
- Secretary of State: Adrian Fontes (D) and Alexander Kolodin (R)
- Attorney General: Kris Mayes (D) and Warren Petersen (R)
- Superintendent of Public Instruction: Teresa Ruiz (D) and Kimberly Yee (R)
- State Treasurer: Nick Mansour (D) and Elijah Norton (R)
- Corporation Commission: Two seats are on the ballot
All 90 seats in the Arizona Legislature are also up for election. The primary legislative districts to watch are:
- Legislative District 2
- Legislative District 4
- Legislative District 9
- Legislative District 13
- Legislative District 16
- Legislative District 17
- Legislative District 23
At the federal level, Arizona’s 1st and 6th Congressional Districts are expected to be the state’s most competitive congressional races.
The Secretary of State’s website includes the official candidate list and election information. Eight statewide propositions remain on the ballot.
In other election news, a federal judge has temporarily blocked a new USPS rule that would have imposed additional requirements on state mail-ballot systems. The rule remains subject to litigation, but the court order prevented its immediate implementation before Arizona began mailing ballots.
Looking Ahead
State budget priorities, water and infrastructure policy, regulatory issues, and implementation of recently enacted laws are expected to remain prominent heading into the 2027 legislative session. The November election will determine the policymakers who shape the next legislative agenda.
If you have any questions, please do not hesitate to contact us.