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Arizona Cities Retrenching To Cope With Coronavirus Outbreak

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Arizona cities are tightening their belts and revising previously rosy budget forecasts as the coronavirus outbreak’s financial impact takes hold in metropolitan areas and across mostly rural counties.

Steps already being implemented or under consideration include freezing hiring, putting projects on hold and foregoing planned equipment purchases.

Cities laying off or furloughing workers include two Phoenix suburbs and Page in northern Arizona.

State budget analysts project significant drops in tax revenue, including sales tax collections that are a major source of funding for cities. Meanwhile, fuel taxes that help pay for transportation projects also will be reduced as Arizonans drive fewer miles.

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