growth zones; housing and economic

Plain English Breakdown

Checked against official source text during the last sync.

HB4130: Rules for Changing City Budgets

This bill lets cities change their yearly budgets to spend extra money they did not plan on, as long as no new taxes are added and the public gets a chance to discuss it.

What This Bill Does

• Allows cities to update their budget during the year if they find more money than expected.
• Removes the rule that says all budget changes must happen by July of each year.
• Requires city leaders to put any budget change on a meeting agenda for discussion before voting.
• Stops cities from using quick 'consent' votes to approve these budget changes without debate.

Who It Names or Affects

• Cities and towns in Arizona
• City councils or town governing bodies

Terms To Know

Budget amendment

A change made to an official spending plan after it has already been approved.

Consent agenda item

A list of routine topics that leaders can approve quickly without discussing each one separately.

Limits and Unknowns

• Cities cannot add new taxes or raise existing fees when they change their budget.
• The total spending in the changed plan must stay within the limits set by public estimates for amended budgets.
• This bill only applies to cities and towns, not counties.

Official Summary Text

HB4130 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

House:
GOV DPA/SE 4-1-2-0

HB4130
:

growth zones; housing and economic

NOW:
budgets; municipalities; amendments

Sponsor:
Representative Blackman, LD 7

House
Engrossed

Overview

Outlines
how a municipality can amend its adopted budget to spend additional revenues
not originally included in the adopted budget.

History

After a public hearing on expenditures and a tax levy is
concluded, the municipal or county governing body must convene in a special
meeting and determine and adopt estimates of proposed expenditures for the
purposes set forth in the published proposal. The adopted estimates constitute
the budget for the current fiscal year for that county or municipality. The
total amounts that are proposed to be spent cannot exceed the total amounts
that were proposed for expenditure in the published estimates (
A.R.S. �
42-17105
).

Provisions

1.

Allows a
municipality to amend its adopted budget during the fiscal year to spend
additional revenues that were not included in the adopted budget by following
the local government budgeting process and conditional on:

a.

budget
amendments are not required to be adopted by the third Monday in July of each
year;

b.

a new or
increased tax or fee cannot be adopted in the budget amendment;

c.

the amended
estimates adopted by a budget amendment constitute the municipality's amended
budget for the current fiscal year; and

d.

the total
amounts that are proposed to be spent in the amended municipal budget cannot
exceed the amounts that were proposed for the expenditure in the published
amended estimates. (Sec. 1)

2.

Requires a
proposed budget amendment to be placed on a regular meeting agenda for
consideration and discussion before a vote at the next regular meeting. (Sec.
1)

3.

Prohibits
the proposed budget amendments from being a consent agenda item. (Sec. 1)

4.

5.

6.

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7.

Initials ML���������������������� HB
4130

8.

3/11/2026� Page 0 House
Engrossed

9.

10.

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Current Bill Text

HB4130 - 572R - H Ver

House Engrossed

growth
zones; housing and economic

(now: budgets;
municipalities; amendments)

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 4130

AN
ACT

amending section 42-17105, Arizona
Revised Statutes; relating to local government budgets.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 42-17105, Arizona Revised
Statutes, is amended to read:

START_STATUTE
42-17105.

Adoption of budget; amendments to city and town budgets

A. After the hearing on estimates under section 42-17104
is concluded, the governing body shall convene in a special meeting and finally
determine and adopt estimates of proposed expenditures for the purposes stated
in the published proposal.

B. The adopted estimates constitute the budget of
the county, city or town for the current fiscal year.

C. The total amounts that are proposed to be spent
in the budget shall not exceed the total of amounts that were proposed for
expenditure in the published estimates.

D. A city or town may amend the
city's or town's adopted budget during the fiscal year to spend additional
revenues that were not included in the adopted budget by following the budget
requirements prescribed in this article, subject to the following:

1. Notwithstanding section 42-17101,
budget amendments do not have to be adopted on or before the third Monday in
July each year.

2. A new or increased tax or fee
shall not be adopted in the budget amendment.

3. The amended estimates adopted by a
budget amendment constitute the amended budget of the city or town for the
current fiscal year.

4. The total amounts that are
proposed to be spent in the amended budget of the city or town shall not exceed
the total of amounts that were proposed for expenditure in the published
amended estimates.

5. the proposed budget amendment
shall be placed on one regular meeting agenda for consideration and discussion
before a vote at the next regular meeting and may not be a consent agenda item.

END_STATUTE