Phoenix Cuts Property Tax Rate, Boosts Housing and Family Services in Unanimous Budget Vote

Phoenix Mayor Kate Gallego (D-AZ) and the City Council unanimously approved the city's fiscal year 2026-27 budget on Tuesday, putting affordable housing, cost-of-living relief, and expanded family services at the center of the spending plan.

"We just unanimously passed a city budget focused on affordability," Mayor Gallego said. "From supporting affordable housing to helping residents restore SNAP benefits, the budget invests in bringing down the cost of living."

The approved budget also includes a cut to the property tax rate, a notable move amid many Arizona residents' continued squeeze from rising housing and living costs.

The spending plan came together after months of community input, including 12 public budget hearings and hundreds of resident comments. City officials say Phoenix's stable economy and strong job market gave the council room to make new investments without sacrificing existing services.

Budget Plan Allocations

Housing and homelessness received some of the largest allocations. The council approved $18.4 million to maintain homelessness programs as federal pandemic-era funding dries up, covering shelter operations, heat relief services, and a new master lease program.

An additional $6.6 million was directed to the Phoenix Housing Trust Fund to accelerate affordable housing development.

Families and children also saw significant investment, with the budget allocating $5 million for childcare affordability, $3.15 million for flexible emergency financial assistance for residents facing crises or food insecurity, and nearly $940,000 to expand teen programming and tutoring at city community centers.

Neighborhood safety and parks also received attention, with $500,000 allocated for new streetlights along the 27th Avenue Community Safety corridor and another $500,000 for lighting improvements at five Phoenix parks.

On the workforce side, the city committed $50 million toward employee compensation and added nearly 70 new or converted full-time positions across public safety, libraries, parks, and other departments.

Looking ahead, the council also set aside $75 million to help keep the following year's budget balanced, a move officials described as a safeguard against future financial uncertainty.

The budget takes effect July 1.