A recent lawsuit claims a multi-million-dollar subsidy in the state budget earmarked for Prescott's annual World’s Oldest Rodeo event violates the Arizona Constitution.
Two Prescott residents and a legal rights group say the $15.3 million payout violates the state Constitution's “gift clause.” The clause requires all gifts to serve a public purpose and that the state must account for the gift’s direct benefit. The lawsuit also alleges that taxpayers will actually suffer a financial loss.
But Prescott Valley Rep. Quang Nguyen says the payout would be a boon for the local economy. The rodeo generated $37 million in economic activity in 2022 and drew in more than 90,000 spectators.
The nonprofit company that owns the rodeo – Prescott Frontier Days, Inc. – presented a $40 million upgrade to the city earlier this year. The proposal includes the renovation of existing city-owned buildings plus a new convention center, covered arena and a grandstand.
State lawyers agreed during a hearing Tuesday to withhold the money until the courts resolve the lawsuit. That legal battle could take months or even years.
