How Do We Solve The Crisis?
Arizona’s fire districts are not asking for a bailout. They are asking for the tools to do the job they’ve been entrusted to do.
The current funding model is outdated, rigid, and dangerously inadequate. To protect lives, property, and the growing communities that rely on them, we must act decisively. That means a combination of legislative reforms, voter-approved changes, and locally driven solutions.
Here’s how we fix the system.
Step 1: Legislative Action (No Public Vote Required)
These are immediate steps state lawmakers can take without involving voters.
Raise or Eliminate the FDAT Cap
The Fire District Assistance Tax is capped at $400,000 per district, regardless of district size or demand. This ceiling has not been updated in more than a decade. As a result, nearly one in four districts has already hit the cap. Lifting or eliminating it would deliver millions in already-authorized state assistance where it is urgently needed.
Increase the Fire District Property Tax Cap
The current statutory limit of $3.25 per $100 of assessed value has not changed in decades. Raising the cap to $4 or indexing it to inflation would give districts more flexibility to maintain service levels without requiring a constitutional change.
Create a Fire District Stabilization Fund
Establishing a recurring state appropriation or dedicated funding stream would create a stabilization fund to support high-need or under-resourced districts during periods of high demand or revenue shortfall.
Implement an Equalization Formula
Fire districts vary widely in local property values. A state-managed equalization formula – similar to the public school funding model – would ensure that lower-wealth districts receive appropriate supplemental support based on need, not just tax base.
Step 2: Voter-Approved Reforms
These solutions require statewide ballot measures, but they offer long-term structural stability.
Override Proposition 117 for Public Safety Levies
Allow voters to authorize a higher growth rate for assessed property values, but only for fire and EMS funding. This targeted override would align revenue growth with inflation and housing trends without affecting general property taxes.
Adopt a Statewide Public Safety Sales Tax
A modest statewide sales tax of 0.1 to 0.15 percent could generate tens of millions annually to support fire protection and emergency services. Funds could be distributed based on population, call volume, or demonstrated financial need.
Amend the FDAT Structure in the Constitution
A constitutional amendment could modernize the Fire District Assistance Tax, converting it into a percentage-based, statewide collection tied to inflation and service demand. This would eliminate outdated caps and ensure sustainable funding for years to come.
Step 3: Local Solutions
Local voters and fire district boards also have tools available.
Voter-Approved Budget Overrides
Arizona law allows voters to authorize budget overrides at the district level. While more feasible in organized or suburban communities, these local votes can provide immediate financial relief and help maintain emergency response capacity during critical periods.