Are local variables in static methods also static?

I am wondering do all the local variables become static if we declare them in a static method ?

for example:

  public static void A(){
        int x [] = {3,2};
        changeX(x);

        for (int i = 0; i< x.length; i++){
             System.out.println(x[i]);   // this will print -1 and 1
        }
  }
  private static void changeX(int[] x){
        x[0] = -1;
        x[1] =  1;
  }

As far as I understand that Java is pass by value always, but why the state of X has changed after we made the changeX call ? Can anyone explain that please ? and can anyone explains how does Java deal with static variables in terms of memory allocation ? and what happen if we pass a static variable to a function as a parameter (I know people won't normally do that)