We’ve officially passed the City of Tucson’s FY 25-26 budget, which reflects the priorities we heard loud and clear from the community. That said, we’re still facing a significant gap. City departments requested ~$71 million in supplemental funding for things like equipment, staffing, and technology to better serve residents, and we couldn’t fund most of it.
Looking ahead, we need to begin addressing the projected deficit for FY 26-27 right away. In August, we will resume discussions on transit funding. I am focused on finding ways to reduce the financial pressure on our general fund, which currently subsidizes transit at around $60 million per year, and move toward a more sustainable model. This could include reinstating fares, improving system efficiencies, exploring partnerships, and/or pursuing a future ballot initiative if that is something the community supports.
Addressing Unsheltered Homelessness and the Opioid Crisis
This year, Mayor and Council took several steps to respond to growing concerns around unsheltered homelessness and public safety. We passed ordinances banning camping in washes and parks, and earlier this year made it illegal to stand in medians unless waiting to cross the street. According to TPD Chief Kasmar, we’ve seen six pedestrian fatalities so far this year compared to 20 at the same time last year. That was the goal of the median ordinance: to keep people safe, and it appears to be making a difference.
The decision to ban camping in washes and parks came in response to Proposition 312, a statewide initiative that more than 50 percent of Tucson voters supported. It’s clear many people want local jurisdictions to do more to address the impacts of unsheltered homelessness, especially on property owners. I know this action was unpopular with some in the community. At the same time, I receive emails and calls daily asking me and my colleagues to take stronger action. This was one of those steps.
Yes, this may lead to more visible encampments in other areas if people can no longer camp in parks or washes. That is why I am working closely with several of my colleagues to address the bigger question: where do they go? We are actively working on solutions that meet the needs of unsheltered individuals while also supporting residents, property owners, and businesses who are impacted. Housing the unsheltered is primarily supported through federal programs and funding, but when those resources fall short, local governments are left to fill the gap. Homelessness reflects deeper societal challenges, including lack of affordable housing, mental health needs, and substance use disorders. While the City plays an important role, we cannot solve this alone. I will be sharing more in the months ahead as we continue to innovate and pursue balanced, compassionate approaches to this complex issue.
Project Blue
You may have heard about a proposed economic development effort known as Project Blue. While I’m limited in what I can share due to a Non-Disclosure Agreement, I want you to know I’m actively involved and asking tough questions to ensure this proposal aligns with Tucson’s long-term priorities.
A vote to begin the City of Tucson’s annexation process was originally expected in August. However, because the Board of Supervisors is revisiting its zoning decision in July, that timeline may shift. It is also important that we take the time needed to fully understand the details and not rush the process to meet a business’s schedule. Our decisions must be right for Tucson, not just timely for others.
This project sits at the intersection of tech, business, and water policy. These are all areas where I bring deep experience. With 25 years in the tech industry, an MBA in IT Management, and ongoing leadership roles in AI and smart cities, I understand how to evaluate complex proposals like this. I also bring water policy knowledge from my work here in Tucson and know how critical water security is to our future.
Project Blue would include significant private investment in Tucson’s reclaimed water infrastructure. If approved, it could accelerate system upgrades in our southeast region by nearly a decade, saving millions and strengthening our long-term water security. Let me be clear: I dig deep into the details of proposals like this, and I will not support anything that puts our water or energy future at risk. I am working these proposals to ensure we bring good jobs to Tucson while also balancing the urgent need to protect our water supply for future generations.
While I am disappointed that Pima County did not engage the Southeast community before approving the sale of the property, I am committed to ensuring transparency and meaningful public involvement throughout the City’s potential annexation and rezoning process. I believe our residents deserve to be informed and heard every step of the way. Although the County has now pointed to the City to lead, I want our community to know that I take that responsibility seriously and will continue to show up, ask tough questions, and keep residents informed. For now, please know that I’m on it.
As always, if you have any questions, please don’t hesitate to reach out to our team at the Ward 4 Council Office at ward4@tucsonaz.gov and/or 520-791-3199.
-Nikki
City of Tucson Ward 4 Councilwoman
Nikki Lee
520-791-3199
Ward4@tucsonaz.gov
www.tucsonaz.gov/ward4
Facebook: /CouncilwomanLee
Instagram: @nikkilee_az
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