Legislative Session Underway: What LSS of the Southwest Is Watching
The 57th session of the Arizona Legislature is underway, with more than 1,000 bills already introduced and major decisions ahead on housing, tax conformity, education funding, and the state budget. In this advocacy update, Lutheran Social Services of the Southwest highlights key legislation to watch, including the reintroduction of the “Yes in God’s Backyard” bill, renewed debate around Proposition 123, and emerging budget negotiations for FY2027.
The update also looks ahead to Lutheran Day at the Legislature on Monday, February 23 at 9:30 a.m. at Wesley Bolin Plaza, where people of faith are invited to advocate on food insecurity, housing and homelessness, healthcare, and civic engagement.
Bills
The 57th session of the Arizona Legislature began on January 12th. To date of publication, there have been over 1,000 bills introduced. Bills can be introduced in the Senate until February 2nd, and in the House until February 9th.
We are beginning to sort through which bills we should focus on and will keep you all informed as bills begin to move through the process.
The "Yes in God's Backyard" bill has been introduced again this year, as SB1096 (bill text here) with notable changes from last year. Senator John Kavanaugh introduced this bill which would permit religious institutions to develop senior living communities on their property without rezoning.
Budget
The Governor released her budget recommendation for Fiscal Year 2027 (we are currently in Fiscal Year 2026), which can be found here.
HR1 (Big Beautiful Bill) contained many tax cuts. The states now have to decide how to conform to the changes. Republicans are advocating for full conformity. A tax conformity bill would cost around $441 million. The Governor and Legislature will have to work together to come to an agreement on the budget and tax conformity.
On our Radar
Proposition 123 will be a big talking point this year. As a reminder, Proposition 123 was passed by the voters in 2016 to help fund schools K-12. Prop 123. It increased the annual distribution from the State Land Trust Permanent Fund to public K-12 education from 2.5% to 6.9%, providing schools approximately $300 million per year.
In June 2025 Prop 123 expired. Lawmakers generally agree that Prop 123 should be extended, but disagree on implementation and how exactly the funds should be used. Some believe it should go towards teacher salary increases, while others believe it should also go toward things like building repairs or raises for other staff. The Governor has also expressed she wants to renew Prop 123.
Lutheran Day at the Legislature
Lutheran Day at the Legislature is right around the corner on: Monday, February 23rd at 9:30am at Wesley Bolin Plaza!
This day of advocacy, for all individuals regardless of religious affiliation, is put by Lutheran Advocacy Ministry Arizona, with help from LSS. This year the focus will be on:
Food Insecurity
Housing and Homelessness
Healthcare
Civic Engagement
Please join us for a day of advocacy and to meet with your representative. To read more and register click here.
