Gov. Katie Hobbs said on April 30 that the new deal to continue funding for disability services still leaves a fight ahead to continue the dollars after June 30.

At a ceremony with affected families, the governor acknowledged that it took a bipartisan effort to find $122 million just before services would have been cut off. And she had particular praise for the two party leaders who crafted the package.

However, the governor said that discussions have yet to start on the budget for the new fiscal year, which begins in just two months. This comes as economists are telling state officials that the revenues they were anticipating might not develop.

Hobbs said she has seen those predictions.

“I don’t have all the answers right now,” she said. “But you know what my priorities are, which are in line with Arizonans’ priorities. And I’m going to fight for a budget that protects those.”

The deal protects the funding for a program known as Parents as Paid Caregivers.

It was started during Covid when parents of children with developmental disabilities found they could not get individuals to help them with services. And it initially was funded with Medicaid dollars.

But the federal share dried up last year. And Hobbs made a decision – Republican lawmakers said without their knowledge – to have the state pick up the difference.

However, those state dollars were not sufficient to cover the current budget year.

Hobbs credited House Majority Whip Julie Willoughby of Chandler and Rep. Nancy Gutierrez of Tucson, the assistant House minority leader, with devising a plan that provided the dollars. In exchange Hobbs agreed to some new restrictions against the governor and state agencies from entering into any new deals for federal dollars – dollars that might later disappear – without legislative approval.

Now the question is what happens after June 30.

“It absolutely is a priority to protect this funding in the ongoing budget,” the governor said. “And I’m sure it will be part of the negotiations.”