The Arizona Guardian

Cities threaten to sue over budget bills

A group representing Arizona's cities and towns said they may sue the state if lawmakers don't drop a pair of budget proposals that would swipe $20 million from municipalities annually.

SB 1012 and HB 2012, which passed both the House and Senate Appropriations Committees on Tuesday, would change how the state distributes tax revenues to cities and counties as lawmakers look for ways to plug gaping budget deficits.

Under the proposals, the state would hold part of the money it gives cities every year, known as state shared revenues, to benefit counties. HB 2012...