🚧 RTA's $375 Million Betrayal: Voters' Transit Dreams Crumble
"Isn't insanity doing the same thing?" Cunningham asks as transportation authority seeks new tax while failing to deliver promised projects
😽 Keepin’ It Simple Summary for Younger Readers
👧🏾✊🏾👦🏾
The City of Tucson is running out of money 💸 while trying to keep important services working 🏙️. At their big meeting 🗣️, the mayor 👩💼 and city council learned they might need to find $13 million this year 💰 and even more in the future 🔮. They made deals 🤝 with the electric company ⚡ for clean energy 🌱, but only for city buildings 🏢, not everyone’s homes 🏠. The city will charge workers more for health insurance 💊 to save money.
They’re also very worried 😟 because the federal government 🏛️ is cutting money 💵 that helps with housing 🏘️, food 🍽️, and fixing bridges 🌉. Some people at the meeting were upset 😡 about spending money on police 🚔, while others said their neighborhoods need protection 🛡️ from drugs 💊 and violence ⚔️. The mayor said many of these problems happened because previous leaders 👥 didn’t spend enough money on taking care of the city’s roads 🛣️, parks 🌳, and workers 👷.
🗝️ Takeaways
🔥 TEP secured relief from undergrounding requirements while promising only limited renewable energy commitments that cover city operations, not community-wide power
💸 Tucson faces escalating budget deficits: $13.1M in FY26, $46.4M in FY27, growing to $87.9M by FY30, threatening essential services and infrastructure
🩺 City employees face significant healthcare cost increases, with deductibles rising from $500/$1,000 to $750/$1,500 and new co-insurance requirements while the HRA plan faces potential elimination
🚌 RTA has already deferred $239M in promised projects and now faces an additional $143M funding shortfall with no clear plan to deliver on voter promises
🏢 $285M in federal funding for housing, homelessness services, and infrastructure hangs in limbo as federal budget cuts loom
👮 Public speakers revealed deep community divisions over Proposition 414, with critics pointing to militarization of police while supporters cited neighborhood violence and drug epidemics
🌊 City opposes state Senate Bill 1304 on water transfers due to potential risks to Tucson's long-term water sustainability
Power and Profits: TEP, Budgets, and Bulldozed Promises at Tucson's March 4 Meeting
Tucson's mayor and council convened on March 4, 2025, in a marathon session that stretched from early afternoon into evening to tackle issues ranging from electric power agreements to health benefits for city employees. Behind the formal proceedings and bureaucratic language lay crucial decisions that will shape not only the city's financial future but also its relationship with corporate powers and commitment to its most vulnerable residents.
Executive Session: TEP's Power Play
The meeting began with an executive session where the mayor and council discussed Tucson Electric Power's (TEP) request for relief from undergrounding requirements for its Midtown Reliability Project and the TEP franchise agreement. Following this closed-door discussion, the council re-emerged to take public action.
City Attorney Mike Rankin presented a motion that revealed the true nature of the backdoor negotiations with the electric utility giant.
The council unanimously approved directing the city manager and city attorney to:
Bring forward a power purchase agreement with TEP under which TEP will commit to providing, at a minimum, 100% of the electric power supplied to the city from renewable sources. (This refers only to electricity used by the city as a customer, not power to all residents.)
Bring forward an agreement with TEP to provide infrastructure and equipment for an energy resiliency project at the Donna Ligon Center.
Engage with TEP to discuss advancing goals of the city's climate action and adaptation plan.
Move forward with public engagement on TEP's request for a new franchise agreement with a tentative election in November 2025.
The language adjustment to include "at a minimum" suggests that the Council is leaving the door open to pushing TEP for more comprehensive renewable energy commitments, though critics might note that the agreement still severely limits the scope to city operations rather than a broader community-wide renewable commitment.
Budget Crisis Looms: $13 Million Deficit for FY2026
City Manager Tim Thomure delivered sobering news about the city's financial outlook. While the projected deficit for fiscal year 2026 has been reduced to $13.1 million from an earlier projection of $23.8 million, the five-year forecast reveals deepening financial woes:
FY26: $13.1 million deficit
FY27: $46.4 million deficit
By FY30: $87.9 million deficit
Anjel Ozomalam, Business Services Director, presented the five-year financial forecast, warning that the unrestricted cash balance at the end of FY26 is projected to be just $7.5 million—significantly lower than last year's forecast of $23 million. The multi-year plan assumes growth rates similar to recent trends and does not account for economic downturns, uncertain federal funding, or impacts from trade tariffs.
Despite these grim projections, the city plans to invest $17.8 million in employee salary adjustments and benefits, while allocating funds to meet contractual commitments and pension obligations. This includes maintaining the current contribution rate for the Tucson retirement system, against the TSRS board's recommendation to increase it.
Health Benefits: Shifting Costs to Workers
Anna Roseberg outlined the city manager's recommendations for health insurance in FY26. With health plan costs expected to increase by $7-10 million, the city is allocating approximately $4.8 million toward health benefit increases.
To make up the difference, the city is implementing:
Increased premiums from employees
Changes to medical plans requiring higher user contributions
Self-funding for the dental PPO plan to save $247,000
The most significant changes to employee health plans include:
Network Plan: Increased deductibles from $500/$1,000 to $750/$1,500; added 10% co-insurance for in-patient hospital services after deductible
HRA Plan: Increased out-of-pocket maximum and co-insurance; decreased employer contribution from $1,500/$3,000 to $500/$1,000
HSA Plan: No premium increases, maintaining enhanced employer contributions of $1,500/$3,000
The Health Benefits Committee will study the feasibility of closing the HRA plan as early as next year due to significant cost increases and declining enrollment.
Council Member Cunningham expressed concern about notifying HRA plan participants about the potential plan closure, advocating for certified letters and one-on-one meetings to ensure no one could claim they weren't informed. He also suggested rounding premium numbers to make them more customer-friendly and memorable.
RTA: $143 Million Shortfall and Uncertain Future
Transportation and Mobility Director Sam Credio reported on the Regional Transportation Authority (RTA) board meeting, revealing a current funding shortfall of $143 million for completing the RTA plan, not counting already deferred projects worth $239 million.
Three possible solutions were presented by RTA staff:
Local jurisdictions provide additional funding
Reduce project expenditures (described by Credio as "vague")
Defer projects with significant scope changes to RTA Next
Council Member Cunningham pointed out the stark reality: "So they're $375 million in the hole total so far, and they think they're going to be able to go back out and get it again. Isn't insanity one of those things where you keep doing the same thing?"
Mayor Romero, newly elected as PAG Chair (the first time Tucson has held a leadership position at PAG or RTA in over 12 years), expressed frustration at the lack of concrete plans to deliver the 12 remaining City of Tucson projects promised to voters. She advocated for the RTA Board to make decisions on using PAG funds and considering scope changes to complete these projects.
While RTA staff is moving ahead with planning for RTA Next and a potential November 2025 election, several board members questioned whether that timeline is realistic without resolving current funding gaps first.
Federal and State Legislation: Cuts and Chaos
City Attorney Mike Rankin offered a stark assessment of federal funding at risk: approximately $285 million in awarded federal funding that has not yet been expended, primarily for public safety, transportation, and housing.
Examples include:
$50 million Choice Neighborhood grant for affordable housing, including Tucson House rehabilitation
$15 million in Continuum of Care funding for homelessness
$25 million for the 22nd Street Bridge replacement
Andrés Portela, the city's government relations officer, reported on federal budget proposals that would cut $4.5 trillion from critical programs, including Medicaid, SNAP (food assistance), and education while prioritizing defense spending, immigration enforcement, and tax cuts benefiting corporations and billionaires.
At the state level, the city is opposing Senate Bill 1304 (the "Ag to Urban" water bill) due to potential unintended consequences on long-term water sustainability. Negotiations continue on housing and zoning legislation, with the city opposing the "Starter Home Act" due to its broad preemption of local authority.
Mayor Romero delivered a fiery rebuke of the federal government's actions, noting the implementation of tariffs against Mexico and Canada that will impact everyday Americans, massive deportations, and federal government firings that are already causing delays in housing and urban development funding. She highlighted the dire consequences of proposed cuts to Medicaid and SNAP, which would devastate nearly 2 million Arizonans enrolled in Medicaid and CHIP programs and the 923,400 Arizonans who rely on SNAP benefits.
"I'm outraged at the proposed cuts," the mayor declared, "and I'm outraged that Congressman in District 6, Francisco Mane, voted for those cuts and voted for trillions of dollars of tax cuts to the wealthiest people in this country as well as corporations."
Call to the Audience: Community Voices
Six residents addressed the council during the evening session's call to the audience, with concerns ranging from policing practices to noise ordinances:
Dominic Meijer (Ward 3) criticized the promotion of Proposition 414, claiming that nearly $1 million was spent promoting it while basic public safety needs like bullets and vests were "clawed, biting, and scratching" for funding. He accused the city of prioritizing tree planting during a drought and called out salary disparities between the Urban Forestry Manager ($95,000) and police officers ($65,000).
Katherine White opposed "the bloating and militarization of the Tucson police force via 414," citing concerns about police response to University of Arizona student protesters last May. She criticized the allocation of $530 million toward police and fire departments without funds for de-escalation, crisis intervention, or jail diversion programs.
Ben Lucero, president of Local 905, read a letter from Joshua Capilla, president of Local 3282 in Peoria, encouraging "good faith" bargaining between the city and unions. The letter highlighted Peoria's labor agreement achievements, including 5% merit and 2.5% COLA increases, longevity increases, heat breaks, and enhanced seniority rights.
Mitchell Salazar spoke about noise ordinance enforcement, particularly regarding properties rented to university students. He criticized Tucson Public Safety Communications' policy of not dispatching TPD for noise violations unless five or more people are involved, effectively rendering the noise ordinance "nearly meaningless."
Jason Warakief, co-chair of Santa Cruz Neighborhood Association, supported Proposition 414, acknowledging that "times are really hard" but concluding "we cannot afford not to" fund public safety. He shared how his neighborhood overcame drug use, violence, and infrastructure problems by working with city departments, but funding was always an issue.
Finn Anderson introduced himself as an 83-year-old former school teacher and principal who organized protests against Trump and Musk. He proposed a resolution titled "No Executive Overreach, Supporting the United States Constitution and Defending Our Democracy," urging the council to stand against presidential overreach and consolidation of power.
Dale Drehm expressed concerns about code enforcement issues, particularly regarding properties developed without proper permits. He cited a YouTube video called "The Goat of Tucson, Eddie Waters" claiming it shows how developers are "screwing the city out of money on building permits" and leaving students in uninspected buildings.
Procurement Recognition and Other Business
Mayor Romero issued a proclamation recognizing March 2025 as Procurement Month and March 12, 2025, as Procurement Professionals Day. The proclamation highlighted the crucial role of procurement professionals in ensuring fair and open bidding opportunities, transparency in government contracting, and the implementation of programs like the small business enterprise and living wage programs.
The council also unanimously approved:
A liquor license for Funtasticks Family Fun Center in Ward 3
Five special event liquor licenses for various community events
A bingo license application for Arnett Creek, LLC at 7215 E. 22nd Street
Financial participation agreement with Tucson Clean and Beautiful for fiscal year 2024-2025
Budget Reality Check: Mayor Responds to Critics
Mayor Romero delivered a pointed response to past elected officials who have suggested cutting $100 million from the budget:
"This mayor and council is finding solutions because of those decades worth of disinvestment into our parks, into our roads, into paying our police and fire living and decent wages. This mayor and council presided over historic wage increase for police, fire, and every city of Tucson employee because of the lack of action that other mayor and councils had done before us."
She challenged critics who claim they can easily cut $50 million from the budget to review the public documents and provide specific suggestions, noting that decades of disinvestment had left infrastructure crumbling and essential services underfunded.
Votes and Decisions Summary
TEP Agreement (Unanimous approval)
Direction to bring forward agreements for 100% renewable energy for city facilities, energy resiliency at Donna Ligon Center, and engagement on climate goals
Public engagement for TEP franchise agreement with tentative November 2025 election
Health Benefits Recommendations (Unanimous approval)
$4.8 million increase in city contributions
Changes to health plan designs including increased deductibles, co-insurance
Maintained enhanced HSA contributions
Self-funding for dental PPO plan
Free access to city recreation facilities for employees and families
Study feasibility of closing HRA plan by next year
Senate Bill 1257 (Unanimous approval)
Support for bill on court-ordered treatment for addiction and substance use
Added to city's legislative tracker with note of support
Consent Agenda (7-0 approval)
Approval of minutes
Financial participation agreement with Tucson Clean and Beautiful
Bingo License (7-0 approval)
Resolution 23897 approving bingo license for Arnett Creek LLC
In a time of massive federal retrenchment, economic uncertainty, and political turbulence, Tucson's city leadership faces unprecedented challenges in maintaining essential services and protecting vulnerable populations. The road ahead shows deepening deficits, threatened federal funding, and difficult choices between fiscal austerity and community needs. This meeting revealed both the structural obstacles facing local government and the profound human consequences of budget decisions made in distant corridors of power.
