Phoenix budget shortfall on horizon according to City Manager

More from this show

Phoenix received nearly $400 million for COVID-19 related costs and economic recovery. The City Council recently approved using another $15 million in ARPA funds to continue funding various shelters and services through June 2025.

City Manager Jeff Barton is warning Phoenix’s overall expenses are going up while revenue is going down.

Despite the extra federal dollars, Phoenix could face a budget shortfall this year. The state changed the way it distributes income tax to cities, and Phoenix will get $36 million less in the fiscal year that begins July 1.

In 2025, cities will no longer be allowed to collect tax on residential rents, a ban Barton estimates will total $83 to $85 million annually.

What are the next steps?

“On March 19, when I bring the city managers trial budget back, I am going to request that my council allow me to put $80 million in reserve so that it gives me at least a little bit of a glide path as I try to balance (years) 25, 26,” said Barton.

He also explained the importance of either cutting cost or increasing revenues in order to maintain his proposed budget and services residents have now.

Jeff Barton, City Manager, the City of Phoenix

Photos of french fries with text reading: French Fries features on

Celebrate National French Fry Day

A graphic reading: Protect my public media

Protect My Public Media: Contact your Senators today

Adelita Grijalva, Daniel Hernandez Jr., Patrick Harris Sr., Deja Foxx, and José Malvido Jr.

Watch replays of U.S. Congressional District 7 candidate debates

Shane Campbell-Staton and text reading: Human Footprint, Flagstaff, July 18
July 18

Join us for an exclusive screening of ‘Human Footprint’ in Flagstaff

Subscribe to Arizona PBS Newsletters

STAY in touch
with azpbs.org!

Subscribe to Arizona PBS Newsletters: