Phoenix Mayor Kate Gallego doesn’t want funding diverted from the city to pay for the Diamondbacks stadium renovations.
Gallego spoke against HB 2704 during Tuesday’s hearing in the Senate Finance Committee. HB 2704 would redirect the state income tax from the Arizona Diamondbacks and its employees as well as specified state, city, and town specified transaction privilege tax revenues in order to renovate Chase Field.
Gallego said HB 2704 was a “boondoggle” that would cost Arizona taxpayers around $1 billion, and that the Diamondbacks weren’t required to pay anything into the stadium renovations. Gallego called for “three commonsense improvements” to the bill: reducing taxpayer responsibility through both annual and aggregate caps, requiring more contributions from the Diamondbacks, and limiting taxpayer contributions.
“Let’s do the responsible thing and have the Diamondbacks match public dollars; a true public-private partnership requires contributions from both,” said Gallego.
Gallego argued the city shouldn’t pay for “luxury” aspects of Chase Stadium, such as the suites, only the “public infrastructure.” Gallego disclosed the city offered “a huge contribution” of $100 million during failed negotiations with the Diamondbacks preceding this bill.
Following prompts from committee Democrats, Gallego hinted that the bill’s passage would mean the city of Phoenix would reduce public safety funding. She pressed for an even 50-50 allocation of funding.
“We don’t want to have to take away from public safety, we want as much flexibility as possible,” said Gallego. “We are thinking this could be a $200 million hit to the city of Phoenix, so that hits everything.”
Committee Republicans questioned Gallego on how a potential departure of the Diamondbacks would impact city funding versus the proposed bill. Gallego couldn’t say.
The city of Phoenix’s budget has grown 60 percent since Gallego took office in 2019, as noted by Phoenix Chamber President Danny Seiden citing data from the Common Sense Institute Arizona.
The 60 percent budget growth in six years amounted to 40 percent in revenue growth and $2 billion in collections that surpassed city expectations. And yet, Seiden says, the city chose not to invest more in public safety — and now the Phoenix mayor wants to blame a future source of funding for the lack of public safety investments.
“If they wanted to invest more in public safety they could have, and we all wish they would, but the numbers tell a different story,” said Seiden.
If you are paying attention to Mayor of Phoenix testimony against the Diamondbacks bill right in the AZ Senate , it’s a good time for a reminder that-
The city of Phoenix’s budget has grown 60% since 2019. That’s 40% more revenue growth than the city anticipated. Cumulatively,…
— Danny Seiden (@dbseiden) March 24, 2025
Gallego pleaded with Governor Katie Hobbs to veto HB 2704 in a letter sent last week.
The Joint Legislative Budget Committee (JLBC) estimated HB 2704 would reduce the state general fund revenue by $9.2 million annually beginning in the 2027 fiscal year, with a local government impact amounting to a loss of $5.8 million — a combined state and local revenue loss of $15 million.
The Senate Finance Committee passed the bill along party lines, 4-3, on Monday. The Arizona House passed the bill last month with bipartisan support, 35-25.
State Rep. Jeff Weninger (R-13), the bill’s author, clarified the Diamondbacks don’t own Chase Field in response to challenges to imposed penalties for early departure from the stadium.
“The Diamondbacks do not own this stadium. This money is going to enhance an asset that they do not own and that they already put over $200 million of their own money into an asset they do not own over the course it’s been built,” said Weninger.
