Key Points:

• House Republicans passed a caucus budget package

• Democrats and the governor have rejected the House budget

• One legislator believes the caucus budget is close to a bipartisan deal

Arizona House Republicans passed a $17.3 billion budget on party lines late June 13, but the spending package may not get through the Senate and doesn’t have the support of Gov. Katie Hobbs. 

Hobbs called the proposal “dead on arrival” after the House Appropriations Committee passed it on June 12.

“From day one of the budget process, I have worked with leaders of both parties in both chambers to craft a bipartisan, balanced, and responsible budget. This reckless and partisan budget is not that. House Republicans are yet again playing political games, attempting to jam through a budget that would decimate the middle class families I fight for,” Hobbs said in a statement that same day. 

Republicans spent all of June 13 negotiating and preparing draft amendments to the 15-bill package before passing it 31-0 at about 9:30 p.m. Every Democrat in the House skipped the vote.

“Tonight’s vote is a result of many months of negotiation and patience. It reflects what can happen when we stay focused on the priorities that matter to the people of Arizona,” said Speaker Steve Montenegro, R-Goodyear.

House Republicans have acknowledged that they prepared their budget without an official agreement from the Senate or Hobbs, and House Minority Leader Oscar De Los Santos, D-Laveen, said the budget is a “sham” that was created because House Republicans haven’t been active in negotiations with the Senate. 

Republicans passed several amendments onto the budget package leading up to its vote.

An amendment to the main budget bill, House Bill 2947, includes several requests from Republican lawmakers, such as placing restrictions on how the Secretary of State’s Office can spend public and private funds and specifying that a $1 million appropriation to the Department of Water Resources is to solely be used for litigation purposes related to the Colorado River rights.

“It’s the best budget I’ve ever seen since I’ve been here,” said Rep. Rachel Keshel, R-Tucson. “Is there a lot I had to stomach? Yes.”

Still, some Republicans were hesitant during the vote. 

Rep. Justin Olson, R-Mesa, said he only voted to pass the budget on the condition that the House advances a measure next week that reduces state spending by $140 million. 

The budget includes several Republican priorities, a 5% pay raise for Department of Public Safety officers and correctional personnel, a 2.5% tuition reduction for in-state college students and $94 million for several infrastructure projects. 

Some of those projects include $40 million to expand the I-10 near State Route 85 and Citrus Road, $12 million for improvements to State Route 347, and $11 million for electrical upgrades at the DPS Phoenix headquarters. 

The GOP budget would also give the state more than $400 million in positive cash balance heading into next the following fiscal year.

Democrats have criticized the budget for cutting spending to K-12 education and Medicaid, and have repeatedly accused Republicans of being absent from budget negotiations with the Senate and Hobbs.

“In a desperate attempt to become relevant to the budget, House Republicans have introduced this sham, written haphazardly behind closed doors to appease the far right Freedom Caucus,” De Los Santos said.

Rep. Matt Gress, R-Phoenix, said he saw the Senate’s draft budget and believes the two chambers are closer to the Senate’s priorities. He said he hopes the Senate considers the House’s budget next week and amends the House bills to conform with its plan.

“We’re not that far off,” Gress said. “My only regret is that we couldn’t have done this in the same room several months ago.”