local government; 2026-2027.

Plain English Breakdown

The effective date is listed as the general effective date in the source material but not specified numerically; this note reflects that uncertainty.

SB1857: Rules for Small County Budgets in Fiscal Year 2026-2027

This law allows Arizona counties with fewer than 250,000 people to use money from any county revenue source to pay bills during the 2026-2027 fiscal year, limits how much can be used for unintended purposes, and requires a report on those funds.

What This Bill Does

• Allows counties with fewer than 250,000 people based on the 2020 census to use money from any county revenue source to meet fiscal obligations in FY 2026-2027.
• Includes funds from special taxing jurisdictions where the board of supervisors acts as directors.
• Limits a county's ability to move more than $1,250,000 between sources for purposes other than what that money was originally intended for.
• Requires counties with fewer than 250,000 people to report by October 1, 2026, on whether they moved funds and the specific source and amount of revenues they intend to use.

Who It Names or Affects

• Counties in Arizona with a population of less than 250,000 based on the 2020 census.
• The Director of the Joint Legislative Budget Committee who receives the required reports.

Terms To Know

Fiscal Year (FY) 2026-2027

The one-year period for government budgeting that runs from July 1, 2026, to June 30, 2027.

Board of Supervisors

The group of elected officials who manage the county and may also serve as directors for special taxing groups.

Limits and Unknowns

• This law only applies to counties with fewer than 250,000 residents based on the 2020 census.
• Counties cannot use more than $1,250,000 from a revenue source for purposes other than what that money was originally meant for.

Official Summary Text

SB1857 - 572R - Senate Fact Sheet

Assigned to
ATT��������������������������������������������������������������������������������������������������������������������������� AS
ENACTED

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

ENACTED

FACT SHEET FOR
H.B. 4164/S.B. 1857

local government;
2026-2027

Purpose

Makes session law changes relating to local government necessary to
implement the FY 2027 state budget.

Background

The Arizona Constitution prohibits substantive law from being included
in the general appropriations, capital outlay appropriations and supplemental
appropriations bills. However, it is often necessary to make statutory and
session law changes to effectuate the budget. Thus, separate bills called
budget reconciliation bills (BRBs) are introduced to enact these provisions.
Because BRBs contain substantive law changes, the Arizona Constitution provides
that they become effective on the general effective date, unless an emergency
clause is enacted.

H.B. 4164 contains the budget reconciliation provisions for changes
relating to local government.

Provisions

1.

Continues
to allow a county with a population of fewer than 250,000 persons to meet any
fiscal obligation for FY 2027 from any source of county revenue designated by
the county, including monies of any countywide special taxing jurisdiction
where the board of supervisors serves as the board of directors.

2.

Continues
to cap, at $1,250,000, the amount of money a county may use for purposes
outside the county's revenue source.

3.

Continues
to require a county with a population of fewer than 250,000 persons, by October
1, 2026, to report to the Director of the Joint Legislative Budget Committee:

a)

whether the county used a revenue source for purposes other than the
revenue source's intended purposes to meet a county fiscal obligation; and

b)

the specific source and amount of revenues that the county intends to
use in FY 2027.

4.

Becomes
effective on the general effective date.

House
Action
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Senate
Action

APPROP������ 6/10/26���� DP������ 15-1-2-0����������� ATT����������� 6/10/26����������� DP������ 8-2-0

3
rd

Read�������� 6/11/26���������������� 49-8-3�������������� 3
rd
Read����� 6/11/26����������������������� 23-5-2

(H.B. 4164
was substituted for S.B. 1857 on 3
rd
Read)

Signed by the
Governor 6/13/26

Chapter 136

Prepared by Senate Research

June 19, 2026

AN/KP/hk

Current Bill Text

SB1857 - 572R - S Ver

Senate Engrossed

local government;
2026-2027.

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1857

AN
ACT

relating to local government.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1.
County fiscal obligations; report

A. Notwithstanding any
other law, for fiscal year 2026-2027, a county with a population of less than
two hundred fifty thousand persons according to the 2020 United States
decennial census may meet any county fiscal obligation from any source of
county revenue designated by the county, including monies of any countywide
special taxing jurisdiction of which the board of supervisors serves as the
board of directors. Under the authority provided in this subsection,
a county may not use more than $1,250,000 for purposes other than the purposes
of the revenue source.

B. On or before October 1,
2026, each county with a population of less than two hundred fifty thousand
persons according to the 2020 United States decennial census shall report to
the director of the joint legislative budget committee whether the county used
a revenue source for purposes other than the purposes of the revenue source to
meet a county fiscal obligation pursuant to subsection A of this section and,
if so, the specific revenue source and amount of revenues that the county
intends to use in fiscal year 2026-2027.