Please ensure Javascript is enabled for purposes of website accessibility

Tag: Senate

Gov. Hobbs looking to 2026 for action on housing, water and education

Key Points:
  • Governor believes this year’s session was successful
  • Law enforcement pay, urban groundwater and budget shortfalls
  • Some of Hobbs’ priorities still unaddressed

With Arizona in its third year of divided government, Democratic Gov. Katie Hobbs was forced once again to work alongside the Republican-controlled Legislature to advance her policy and budget goals. Despite months of contention, the governor managed to eke out a few wins.

Despite uneasy compromises, Hobbs told the Arizona Capitol Times that she thought the 2025 session was particularly productive, and even hailed the recently passed $17.6 billion budget as “the most successful budget we’ve had” in her time as governor.

“I’m really focused on what we did get done…” Hobbs said. “There’s certainly a lot we can build on.”

The governor cited approval of emergency funding for the Division of Developmental Disabilities, a process which included nearly a month of heated negotiations with Republicans, partisan attacks on her fiscal responsibility, and a mini-crisis which nearly halted payments to parents of children with disabilities, as her best day of the session.

Her office also touted a few more legislative victories, including the passage of an Ag-to-Urban groundwater bill, a bipartisan compromise on foreign adversaries owning land in the state, a funding bill for the Arizona Diamondbacks stadium and legislation allowing local company Axon to build its new headquarters in Scottsdale.

But Hobbs and legislative Democrats failed to make progress on several key priorities, like oversight for the Empowerment Scholarship Accounts Program and the repeal of several unenforceable abortion restrictions still in law after voter approval of Prop. 139. Those areas were both outlined in the governor’s State of the State speech in January, but did not see any movement.

Hobbs’ office proposed an income cap on the ESA program to reduce its cost, but that provision wasn’t implemented via legislation or through the budget. Hobbs said she isn’t planning on giving up on reform for the program and will come back to the table with similar ideas in 2026.

The session also lacked meaningful legislation in the areas of affordable housing and rural groundwater management, though not for lack of trying on both the part of the governor’s office and the Legislature. Hobbs said conversations in those areas stalled late in the session and have not yet picked back up. 

The governor also signed several bills that put her at odds with her own party members and activists who have argued she capitulated to right-wing interests. The two most contentious bills for fellow Democrats involved a public utility company financing measure and an age verification requirement for explicit online content.

“Certainly a lot of legislation is political, and I certainly don’t think about it through that lens,” Hobbs said. “I’m looking at what’s going to address issues that Arizonans are concerned about.”

The governor did score wins in budget negotiations and secured funding in many of the areas she outlined in her executive budget proposal. However, due to the size of the state’s revenue streams and uncertainty at the federal level, many of her initiatives did not receive nearly the amount of funding she proposed.

The bipartisan budget included funding for law enforcement raises, drug smuggling and human trafficking prevention at the southern border, expanded child care access, the DDD program and Colorado River litigation. But it didn’t extend the Low Income Housing Tax Credit or provide nearly as much funding as Hobbs proposed for housing initiatives.

“When we first passed the Low Income Housing Tax Credits, that had bipartisan support and we really need a Republican champion to get that done again,” Hobbs said. “I’m not sure why it wasn’t there this session.” 

The final budget also left out smaller, niche proposals the governor included, like $7 million in funding for the University of Arizona to speed up efforts to return the remains of Native American ancestors to their tribes. 

The governor also made headlines this session for implementing her first-ever bill moratorium during the funding battle for the DDD program and for setting a new state veto record. Hobbs said she hopes both moves show Republicans that she means business when it comes to standing up for Arizonans. 

Hobbs did score some wins in another area: director nominations. Twelve of her nominees to lead state agencies were confirmed this session after many faced difficulties in the Senate in 2023.

She still has six director positions to fill after several were rejected by the Senate or its Director Nominations Committee or withdrawn because they would not be confirmed. Hobbs said, “it continues to be frustrating” that the confirmation process will extend into the final year of her first term as governor. 

Both Hobbs and the Legislature will have a lot to focus on when the body reconvenes in January 2026, including Proposition 123 funding and federal Medicaid cuts. And they will do it all while staring down the barrel of the midterm election season, during which Republicans hope to oust the governor. 

Affordable housing: An issue yet unsolved

Key Points:
  • Lawmakers had ambitious goals for housing in 2025
  • Very little consequential legislation passed on the issue
  • Certain initiatives set to expire in 2026

Gov. Katie Hobbs outlined ambitious goals for Arizona’s housing policy during her State of the State Address in January, but some stakeholders think lawmakers punted those issues with little accomplishment. 

Hobbs had a major win with Senate Bill 1611, the “Ag-to-Urban” bill that allows high-water users like farmers to convert their farms into lower density housing, a far less water intensive alternative. According to the governor’s office, the measure could result in the construction of up to tens of thousands of new homes and conserve nearly 10 million acre-feet of water. 

The sponsor of the measure, Sen. T.J. Shope, R-Coolidge, called the new law the “most consequential piece of groundwater conservation legislation” since the 1980 Groundwater Management Act. Incidentally, the legislation could also have the dual effect of alleviating housing shortages by providing developers more leeway with water restrictions.

“Hard-working Arizonans will be able to pursue their American dream of homeownership as home supply increases in Maricopa and Pinal counties and prices naturally ease. Our farmers, who are ready to retire, can reap the benefits of their land while also allowing the state to save water,” Shope said in a news release after Hobbs signed the bill. 

Several housing policy advocates still felt unsatisfied with the 57th legislative session after the state’s Low-Income Housing Tax Credit program didn’t receive new funding for an extension.

Hobbs called for a LIHTC extension in January, along with cutting “red tape that’s driving up” the cost of housing and a $15 million appropriation for the Housing Trust Fund, but lawmakers accomplished little on those goals. 

A group of Republican and Democrat lawmakers formed a bipartisan housing caucus at the beginning of the session to work on the “Arizona Starter Homes Act,” Senate Bill 1229, and other housing issues. 

The Starter Homes Act proposed targeted municipal regulations on the construction of new homes, but lawmakers were unable to reach an agreement with cities, which believed the issue overrode their zoning authority, and the measure never received a vote in the House. 

The measure would have prohibited cities from requiring design features of homes like the inclusion of garages or specific amenities and floor plans. It called for minimum lot sizes of 3,000 square feet with the idea of allowing developers to build smaller homes with design features that homebuyers could afford. 

This was the third consecutive year that a comprehensive zoning bill was introduced at the Legislature. Former Republican Sen. Steve Kaiser watched as his zoning reform bill failed in the Senate in 2023, and Hobbs vetoed the 2024 Starter Homes Act after it received heavy opposition from municipalities.  

The League of Arizona Cities and Towns proposed its own Starter Homes Act bill in 2025 with Senate Bill 1698, but that measure wasn’t supported by legislators and failed to get a committee hearing.

All of this points to a complex issue being punted further and further down the road by legislators unable to reach a reasonable agreement with stakeholders. 

“We had a responsibility this session to deliver on affordable housing, and we failed,” Sen. Analise Ortiz, D-Phoenix, said during her vote for the state budget. 

The league’s bill would have limited starter homes to individuals or families with incomes below 120% of the area median income, and it would have limited occupancy for up to 15 years, while allowing cities to have more control over density in neighborhoods than SB1229 offered. 

League officials argue these provisions guarantee homes are sold to Arizona residents instead of being bought by corporations which would then turn around and list the homes on the market at a higher price while maintaining local communities.

“Buying an affordable house is a legitimate challenge across Arizona,” said the League’s Executive Director Tom Belshe in a news release. “We are looking out for the needs of Arizonans and are asking legislators to ensure that hard-working residents are able to buy homes – not out-of-state investors and speculators.”

Although the major housing goals for the governor and other lawmakers were punted to 2026, Democrats celebrated some small housing wins. 

Senate Minority Leader Priya Sundareshan, D-Tucson, noted in her budget vote that it includes $16.5 million for homelessness services such as eviction prevention and shelter operations for youth and families. 

Hobbs’ Homes for Heroes initiative also got $2 million, and that program helps keep military veterans from being unhoused. 

All of this equates to affordable housing remaining a key issue in 2026 for legislators looking to make the American dream a little more realistic for Arizonans.

Failure to extend Prop. 123 linked to GOP school choice push

Key Points:

  • Republicans added school choice protection to funding proposal
  • Limiting funds only for full-time teachers caused opposition
  • Key GOP lawmaker says proposal need to be simplified

Another legislative session wrought no extension or novel proposal to fill the void left by the lapse of Proposition 123, an education funding model drawing dollars from the state land trust fund. It instead brought a new, although familiar, divide. 

Lawmakers, stakeholders and the governor still have another opportunity to formulate a new version of Prop. 123 next session, with eyes now on a ballot measure to run in 2026. 

But whether interested parties work in tandem with or against each other remains the key question. 

Gov. Katie Hobbs, Democrats, education and business and tax groups pushed for a fairly clean extension, with added flexibility to schools, similar to the initial iteration of the measure. 

Meanwhile, Republicans sought to direct dollars for full-time teachers and append protections for school choice to any proposal they planned to push through. 

Those dueling interests set Prop. 123 back to square one, with stakeholders now huddling in their respective corners to figure out how to start the conversation back up again in 2026. 

Rep. Matt Gress, R-Scottsdale, said, “We will regroup with the caucus, and I suspect that we will re-engage with the executive again in the fall and to try this again as early as possible in the next legislative session. I think that’s key. We want everybody to be on board with this package, because you win through addition, not subtraction.”

The measure, as initially passed by voters in 2016, allowed a jump in the distribution rate from the state land trust fund from 2.5% to 6.9% to supplement funds for K-12 education through the 2025 fiscal year. 

A new take on Prop. 123 has had a host of false starts. Lawmakers failed to get a proposal over the finish line in 2024 and continued the trend into 2025. 

This session, Sen. J.D. Mesnard and Gress took the lead. The two herded an initial proposal through committee, though with the caveat that it was far from the final plan. 

But then education groups, including the Arizona Education Association, the Arizona School Administrators Association, Save Our Schools, Democrats and the governor got wind of a desire by the majority to tie in school choice protections to Prop. 123 and mounted quick opposition, which toppled onto existing contentions with limiting pay increases only to full-time teachers. 

Tax groups had their concerns, too. 

Kevin McCarthy, with the Arizona Tax Research Association, warned against creating another fiscal cliff, veering off from the state’s per-pupil funding structure and earmarking the dollars for teacher pay.  

He noted granting the money per-teacher could result in disparate distribution to schools.

“We should give money to the districts and charters based on how many students they have, and then let them compete for those students, but by how well they do in the classroom, how well they manage their systems,” McCarthy said. “We shouldn’t be rewarding inefficiency.” 

But, before agreeing on Prop. 123, attention then shifted to the budget and the clock slowly ran out on the session, leaving amendment or passage of any proposal less and less likely. 

“Optimism was growing that we were going to be able to get something through right up until we ran into the budget buzz saw,” Mesnard said. 

In looking to the next session, Mesnard said he believes the Senate has a solid foundation to start. He noted no final language on reworked distribution rates or school choice provisions ever really saw the light of day. 

“When all the i’s have been dotted and T’s crossed, when we’ve given folks time to recuperate and then circle back around to see where sentiment has settled, once we get to that point where we can then share language, I think people may be a little bit surprised given whatever version they had in your mind, which largely has been speculation right to this point,” Mesnard said. 

He continued, “I’m looking forward to that day. I wish it had come this session. It didn’t. So I’m hoping very early into the next (session).” 

Gress said for the next session, he hopes to see the prospective proposal simplified. 

“If you make a ballot measure too complicated, you also complicate the chances of it passing at the ballot,” Gress said. “It needs to be straightforward.” 

Gress said he saw complications in both the teacher’s union, Democrats, and the governor’s push to include all school staff in the school choice push. 

“If you load up too many provisions in this bill, I think it again complicates passage. It has to be simple, streamlined, focused and clear so that Arizona voters, when they’re going through the land trust proposal, can feel good about their vote,” Gress said. 

But that does not necessarily mean jettisoning school choice provisions altogether. 

“I do think that both sides need to recalibrate their approach going into next year so that we can certainly ensure that teachers get a pay raise that they desperately need to stabilize that profession, but to also ensure that all school choice options are protected. I think that there is a balance that can be had,” Gress said. “But again, when you create a Christmas tree of a bill, I think things can go south very quickly.” 

As for Democrats, education groups and the governor, the hope is for a bipartisan bill free of any school choice provisions. 

Rep. Nancy Gutierrez, D-Tucson, said a clean renewal of the funds to allow flexible funding to schools would benefit more than a sequestration to teacher salaries, noting varying needs across districts.  

She also stressed the need to iron something out, though, and hopes for Democrat involvement in the next session. 

“It’s hundreds of millions, millions of dollars that we’re literally just throwing away instead of figuring out a bipartisan solution to make it work, that bipartisan solution, in no way, shape or form is going to be including vouchers, but I’m confident that we can come up with something, and I think it would be irresponsible for (Republicans) not to include us,” Gutierrez said.

Hobbs echoed the same. 

“It was unfortunate that we saw some folks try to put forward a very partisan renewal plan, and I think that failed even in the chambers that have Republican majorities,” the governor said. “I think that indicates there’s appetite to work together for a bipartisan solution, and we’ll be looking at our options and working on that over the summer.” 

Arizona Education Association President Marisol Garcia stressed the need to bring educators themselves to the table.  

“It’s all about context. And I think that’s the one thing that professional educators can give you is the context,” Garcia said. “And so when we’re not part of those conversations with legislators, you miss the mark.”

Adelita Grijalva sails to victory in CD7 special primary

Key Points:
  • Adelita Grijalva wins two-thirds of initial vote count
  • Daniel Hernandez conceded race shortly after results 
  • Official tally will be days away

Adelita Grijalva beat out four other Democrats in the special primary election to replace her father in Congress, according to election results tabulated on July 15.

Grijalva was the favorite in the Congressional District 7 race since it was called after U.S. Rep. Raúl Grijalva passed away from cancer in March. She faced competition from former state lawmaker Daniel Hernandez and social media influencer Deja Foxx, but neither was able to match the younger Grijalva’s endorsements, fundraising or connections.

Hernandez conceded the race less than 15 minutes after results came in, with Grijalva easily winning over two-thirds of the vote. The Associated Press called the race at 8:19 p.m. for Grijalva, but official results will be finalized in the coming days.

“This is a victory not for me, but for our community and the progressive movement my dad started in Southern Arizona more than 50 years ago,” Grijalva said in a statement. “We didn’t get distracted by the noise or national headlines. We kept our heads down, did the work, and delivered a message rooted not just in fighting back against a dangerous and tyrannical administration – but in fighting for something: for our democracy, for the dignity of working people, and for the values that truly define Southern Arizona – justice, equity, and opportunity for all.”

Foxx’s campaign did not release a statement regarding the results at the time of publication. 

Prominent supporters of Grijalva, like U.S. Sen. Mark Kelly and former U.S. Rep. Gabby Giffords, celebrated her win on social media Tuesday night.

“In Adelita, Southern Arizona will again have a dedicated public servant in Congress—one who will always work to protect our state from gun violence,” Giffords said in a post on X. “Now, we must get her across the finish line in September.”

The special primary election drew statewide and national attention in the wake of Democrats’ widespread losses in 2024. It sparked questions about age in Congress and whether the moderate or progressive side of the party should lead the charge into the 2026 and 2028 elections. 

Foxx, known for campaigning on TikTok and getting her start in politics by going viral, attempted to pitch herself as the young newcomer running against an establishment career-politician. Hernandez formed his campaign around his moderate policy stances and ability to work across the aisle in the Legislature.

Ultimately, both of those messages fell flat with the voters in CD7, who seem determined to carry on Raúl Grijalva’s progressive legacy through his daughter, who brings her own fresh perspective to the seat.

Hernandez congratulated Grijalva in a post on X, but said his journey isn’t over.

“The fight doesn’t end here,” Hernandez wrote. “As a lifelong Arizonan, I’ll continue to work for the people of our state—for access to healthcare, strong public schools, and equal rights for all.”

Grijalva is expected to sail through the September 23 special general election given the district’s significant Democratic voter registration advantage. She will then have to run for the seat again in next year’s midterm elections. 

Hobbs signs bipartisan budget, ending weeks-long standoff and staving off shutdown

Key Points:
  • Gov. Katie Hobbs signed a state budget, prevents government shutdown 
  • It caps off a long and arduous process that saw three separate budget proposals make it to the governor’s desk
  • House and Senate Republicans both celebrated the budget’s passage, despite disagreements between the two chambers

Gov. Katie Hobbs signed a bipartisan budget on June 27, ending a weeks-long saga of standoffs between the Legislature’s two chambers that nearly ended in the state’s first government shutdown. 

The budget is almost exactly the same as the one Hobbs negotiated with the Senate, which House Republicans refused to put up for a vote last week. After Hobbs vetoed the House’s two budget proposals on June 25, the chamber passed the Senate budget on June 26 with minor tweaks. 

“By working together, we have secured pay raises for state police and firefighters, made child care more affordable and accessible, taken action to stop drug smuggling and human trafficking, and invested in public education from kindergarten through higher ed,” Hobbs said in a statement. “We showed Arizonans what is possible when we are willing to reach across the aisle and deliver common sense solutions for the people of our state.”

Hobbs’ communications director, Christian Slater, called it a “HUGE win” in a post on X. The $17.6 billion budget included several proposals the governor had requested when she presented her executive budget request to lawmakers in January, like funding for childcare programs, Colorado River litigation, veteran homelessness initiatives and health care for developmentally disabled individuals. 

It is the third time Hobbs, a Democrat, and the GOP-controlled Legislature have been able to pass a bipartisan budget during an era of divided government. It has been the most contentious budget process during her rule so far. 

Both House and Senate Republicans celebrated the passage of the budget, despite the tense weeks of infighting between the two that preceded it. At one point, Senate President Warren Petersen, R-Gilbert, chastised members of his party while speaking before the Senate on June 25.

“It doesn’t take competence or courage to pass a budget that only has ‘Rs’ on this because that is how you live and achieve and score short-term political points. And with the help of shock jocks and troll farms, you can fool some of the people, some of the time,” Petersen said. “It takes leadership, competence and courage to pass a bipartisan budget in a divided government.”

Petersen doubled down on those sentiments as the Senate gave final approval before sending the budget to Hobbs.

“For those who allowed this to happen, I would just say, get your house in order, because I am certain this body and the public won’t be fooled a second time,” Petersen said. 

According to Sen. John Kavanagh, R-Fountain Hills, House Republicans added about $17 million in spending and a few policy changes to the Senate budget after saying for days that it would not pass the House without significant changes. 

House Speaker Steve Montenegro, R-Goodyear, painted a different picture of the budget process while speaking on the House floor on June 26.

“We have been hard at work for months. In fact, the House has led every step of the way,” said Speaker Steve Montenegro, R-Goodyear. “We come together because we have a divided government and what we can do, as Republicans, we have done. We’re holding the line, and I’m proud of that. We’re holding the line on spending. We’re holding the line on school choice. We’re holding the line on the values that matter to us.”

AZ House passes bipartisan budget package, pitches it back to Senate

Key Points: 
  • House approved Senate’s bipartisan budget
  • Two previous House budgets have failed
  • Senate and the governor expected to approve the budget proposal

The Arizona House of Representatives has finally passed a bipartisan budget that Gov. Katie Hobbs can sign, possibly averting a government shutdown that would have occurred if no deal were struck by June 30.

It is the third spending package the chamber has passed and the first with Democratic support. Senate Bill 1735 passed with a supermajority of 40-16 despite significant efforts from some House Republicans to reject and replace the proposal with their own packages. 

“We have been hard at work for months. In fact, the House has led every step of the way,” said Speaker Steve Montenegro, R-Goodyear. “We come together because we have a divided government and what we can do, as Republicans, we have done. We’re holding the line, and I’m proud of that. We’re holding the line on spending. We’re holding the line on school choice. We’re holding the line on the values that matter to us.”

The House-approved $17.6 billion bipartisan budget was passed by the Senate on June 20, with some minor amendments to bring House members into agreement. 

A Senate GOP news release confirmed the Senate is expected to approve the House’s amendments on June 27, and the governor is expected to sign the budget package once it clears the Senate. 

“We were able to reach a consensus to fund the core functions of government. I appreciate the collaboration with the House over the past few days to get this spending plan across the finish line,” Senate President Warren Petersen, R-Gilbert, said in the news release. “We have delivered a balanced budget with bipartisan priorities funded, like K-12 schools, transportation, public safety, and protecting our small businesses. We believe this is a bipartisan spending plan that will get signed.” 

Thursday’s vote comes after weeks of House Republicans attempting to get a lower spending bill signed by the governor. They first passed a $17.3 billion budget on June 13, which only Republicans voted for. That measure largely lacked support from the Senate. 

When it became clear Hobbs would never sign that budget, House Republicans passed a $17 billion continuation budget on June 24 as a last resort measure to maintain last year’s budget and prevent a government shutdown while buying more time for negotiations. Similar to the first attempt at a budget, only Republicans in the chamber supported it. 

The Senate passed both budgets in separate mass motions the following day, and Hobbs vetoed both proposals just a few hours later. Those vetoes left the Senate’s bipartisan budget as the only plan left on the table.

“This balanced, bipartisan budget is the result of intense, months-long negotiations and delivers important Democratic wins,” said House Minority Leader Oscar De Los Santos, D-Laveen. “The plan is not perfect and nobody gets everything they want, but this budget delivers for public school students, protects Medicaid, and expands health care for cancer patients and tribal members.”

Some big ticket items in the budget include $27 million for new vehicles, equipment and building repairs for the Department of Public Safety, a 5% pay raise for all state law enforcement officers, 15% raises for state firefighters and $119 million for transportation projects like widening Interstate-10 and other major projects for State Route 347.

The budget also includes $281 million in new funding for K-12 education. Most of that comes from a $183 million appropriation for school building renewal grants. 

The Arizona Promise Program, which helps low-income college students obtain scholarships, also received $16 million in the budget. 

“We in this Legislature right now have to be the big people in the room and pass this budget before Arizona closes,” said Rep. Lupe Contreras, D-Avondale. “(We have to) do what the federal government is not willing to do for this state and is cutting for this state.” 

The amendment that House members included on SB1735 contains many minor spending adjustments that were in the House’s first budget. It has a $3 million deposit to the Erroneous Convictions Fund, $3.2 million for a pilot program to assist law enforcement agencies with public records, $2.3 million for fire incident management grants, and a $500,000 appropriation to the Arizona Department of Education to seek automated external defibrillator grants, among other allocations.

Some House Republicans opposed the bipartisan deal and Freedom Caucus members offered several rejected amendments to the budget, including one which would prevent the Arizona Health Care Cost Containment System from using public or private funds for the health care of people who are not lawfully present in the U.S. Several of these amendments also failed during the Senate’s vote on the budget. 

The House’s first budget included a 2.5% reduction in college tuition for in-state students and a three-year freeze on tuition increases, which is not in the bipartisan budget that House members passed.

“Good gosh, we’re trying to lower tuition rates in Arizona for our students. I don’t know how that’s partisan,” said Rep. Joe Chaplik, R-Scottsdale.

Another rejected amendment proposed by Rep. Justin Olson, R-Mesa, would reduce the funding for AHCCCS by just under $40 million to freeze Medicaid enrollment for anyone who is eligible via Medicaid expansion. Olson urged the state to consider reducing its spending in anticipation of federal cuts from the Trump administration. 

“We’ve got to get conservative, fiscal responsibility on the Ninth Floor,” Olson said. 

A handful of House Democrats also voted against the budget, including Reps. Alma Hernandez, D-Tucson; Anna Abeytia, D-Phoenix; Consuelo Hernandez, D-Tucson; Mariana Sandoval, D-Goodyear; Lydia Hernandez, D-Phoenix; Myron Tsosie, D-Chinle; and Elda Luna-Najera, D-Tolleson. 

Sandoval said her vote against the budget was from the state appropriating nearly $1 billion for the universal expansion of Empowerment Scholarship Accounts. 

Most of the other Democrats said they were concerned about a $24 million appropriation to the gang and immigration intelligence team enforcement mission fund, but De Los Santos and Hobbs’ spokesman Christian Slater have disputed that those dollars will be used for mass deportations. That language has also existed in the budget for years.

Alma Hernandez said that while she voted for previous budgets that included that language, she is now uncomfortable voting for it while President Donald Trump is in office. 

“My morals and my values cannot allow me to support the terrorizing of my community,” she said. 

The House also voted to waive the aggregate expenditure limit for public schools in the upcoming two fiscal years. 

House members expect to sine die with the Senate on Friday. 

Hobbs vetoes House continuation budget just days ahead of deadline

Key Points:
  • Hobbs vetoed House continuation budget
  • Veto comes just days before government shutdown
  • It is still unclear if Legislature can pass a budget before deadline

Gov. Katie Hobbs has vetoed the House’s proposed “continuation budget,” leaving legislators scrambling to pass a proposal before a government shutdown on June 30. 

The veto follows a contentious standoff between both chambers and the governor in which House and Senate leadership disagreed on which of the three budget proposals, two from the House and one from the Senate, should be passed along to the governor. 

Hobbs also vetoed the House’s first attempt at a budget, which passed the chamber on June 13 on a party line vote.

“I have long made clear that both of the partisan and reckless House Republican budgets are unacceptable. They gut public safety, slash health care for Arizonans, harm businesses, fail to lower costs, and leave our Veterans out in the cold. These unserious budgets are wrong for the people of Arizona,” Hobbs said in a June 25 statement. 

House members passed the continuation budget package, a proposal they deemed a compromise to allow for further negotiations, on a party line vote late on June 24. So far, the House has not voted on the Senate’s bipartisan budget, the plan Hobbs seems to favor, which passed last week. 

Republicans in the House say they don’t think the chamber has enough votes to pass the bipartisan budget, and the continuation budget was introduced as a last-resort measure to prevent a government shutdown. 

A continuation budget carries over the previous year’s budget with no new spending items and is used to maintain state operations. 

The House’s first proposal was a $17.3 billion budget drafted without negotiations from the Senate and governor’s office. The Senate did not immediately consider that budget and proceeded with their own $17.6 billion budget negotiated with the governor’s office.

House Republicans have consistently opposed the higher spending package. 

“This is the second time that the majority of the members in this body have expressed their concern on the spending habits of government; of waste, fraud and abuse, and we are sounding the alarm,” said House Speaker Steve Montenegro, R-Goodyear.

The Senate passed both House budget packages in two separate mass motions on June 25, bypassing the chamber’s rules in an effort to get both budgets to Hobbs’ desk as quickly as possible. Each budget was passed on a party line vote of 16-11.

House Appropriations Committee Chairman David Livingston, R-Peoria, said he had hoped the Senate would follow its procedural rules and wait to vote on the continuation budget later in the week.

Senate President Warren Petersen, R-Gilbert, criticized legislators opposing the bipartisan deal he and his caucus struck with Hobbs, accusing inexperienced legislators of being “hoodwinked by charlatans.” 

“One of the consequences of the charades is that we diminish our chances for success in the future. Another consequence is that we waste our most precious resource: our time,” Petersen said. “Members, let’s stop wasting our time. Let’s end the chicanery.”

The continuation budget is missing several key priorities that House Republicans included in their first budget, including pay raises for Department of Public Safety officers and transportation projects for Interstate-10 and State Route 347. 

House Minority Leader Oscar De Los Santos, D-Laveen, called the continuation budget a “colossal waste of time” that eliminates appropriations for public safety, child care, health care, and education compared to both earlier budgets that lawmakers have proposed. 

“This is a political partisan tantrum that is going nowhere,” De Los Santos said. 

Livingston said during a House Appropriations Committee hearing that both House and Senate leaders are working on alternative budget proposals with the governor’s office, but he hasn’t seen a deal that he thinks could succeed in gaining the governor’s approval other than the continuation budget. 

“This is (Hobbs’) last chance,” Livingston said. “We have a very basic budget to keep the lights on.”

Rep. Justin Olson, R-Mesa, said the continuation budget still has too much spending for his liking. The final spending number is a 5.7% increase from last year’s $16.1 billion budget and includes supplemental funding for some state agencies and programs. It also raises the funding formula for public schools by 2%, which is constitutionally required. Olson said the population and inflation rates in the state have grown by 4.1% from last year.

“We’re hearing tonight that that’s not enough. That is, in my view, fiscally irresponsible to grow government by a rate that is not sustainable,” he said.

While all Republicans in the House voted to pass the continuation budget, some criticized the process from GOP leadership in the House and Senate. 

Several members of the House and Senate Freedom Caucus have criticized the bipartisan budget and accused Senate GOP leadership of capitulating to Hobbs. 

“Make no mistake, the purpose of this bill is to go over to the Senate, to be voted out of the Senate and to be vetoed by Katie Hobbs at the 11th hour so that the Senate and others involved can wash their hands of the Senate-Hobbs budget,” said Rep. Alexander Kolodin, R-Scottsdale.

Kolodin also called the continuation budget “a reasonably conservative budget,” which earned his vote. 

Rep. Teresa Martinez, R-Casa Grande, called out House leadership for introducing the budget so late. Martinez was the House GOP whip under former Speaker Ben Toma in the previous two sessions, and she noted that the House also sent a continuation budget to Hobbs in February 2023. 

Hobbs also vetoed that budget.

All of this leads Arizona’s Legislature into the unsteady position of being dangerously short on time to produce an approvable budget package. While the Senate’s budget is most likely to find favor with Hobbs, it is still unclear whether the House will approve a measure they have yet to sincerely consider signing off on with so little time left. 

State budget standoff looms over possible government shutdown

Key Points:
  • Montenegro pushes $17B plan, defying veto threat
  • House GOP resists Senate deal, demands more time
  • Budget deadlock risks government shutdown July 1

Ignoring a veto threat, House Speaker Steve Montenegro introduced his own zero-growth spending plan on June 23 for the new fiscal year, which begins on July 1.

The Goodyear Republican said it is clear that the $17.6 billion plan negotiated among Gov. Katie Hobbs, Senate Republicans and Democrats from both chambers is irresponsible. More to the point, he claimed there are not sufficient votes from House GOP members to support the proposal over their own $17.2 billion budget plan.

So now, what is scheduled for a House vote on June 25 is a $17 billion spending plan. Rep. David Livingston, who chairs the House Appropriations Committee, said that’s basically what the state is spending this fiscal year plus a few adjustments.

Montenegro indicated he’s willing to add some funds if Hobbs agrees to something the House GOP considers more reasonable. But with time running out, he wants something in place while those negotiations take place.

How far Senate Republicans are willing to go to deal with House GOP objections remains unclear.

On one hand, Senate President Warren Petersen voted for that $17.6 billion plan. And he has defended it as perhaps the best deal to be had, given that the Democratic governor has the last word.

Petersen, however, indicated he’s also willing to see what the House passes, though he is making no commitments.

But none of that will matter if the governor follows through with her promise to veto it. And if no one blinks by July 1, that sets the stage for an unprecedented fiscal crisis in Arizona, as the state Constitution has no provisions to keep the government operating without an adopted budget.

All that, however, presumes there are sufficient Republican votes for what Montenegro has dubbed his “continuation budget.”

There are 33 GOP lawmakers in the 60-member chamber.

But one, Rep. Matt Gress, R-Phoenix, is in Italy for his honeymoon. And House Minority Leader Oscar De Los Santos said not a single one of the 27 Democrats will vote in favor of the “non-starter” bill.

“That plan will short-change our public schools, our colleges, health care, lifeline services for working families and the most vulnerable in our state,” he said. He also noted that the Senate-approved plan — the one supported by a majority of Democrats in both the House and the Senate — includes dollars for other priorities, such as a pay raise for Department of Public Safety officers and state firefighters.

If Democrats balk, that means Montenegro can afford to lose just one vote in his caucus.

Whether he has that remains to be seen.

Just a week ago, Livingston said he thought there were enough House lawmakers from both parties to approve the Senate plan.

On June 23, the Peoria Republican was telling a different story.

So what changed?

“We got the real numbers,” he said, ones that showed the spending in the Senate plan was unsustainable.

Even assuming there are sufficient votes for this new GOP plan, that still leaves the question of why go through the exercise given the governor’s promise to veto it. Montenegro said he isn’t paying attention to that.

“First and foremost, the people of Arizona deserve to make sure we’re going through every budget, every dollar that’s being spent for the public,” he said. And what that means, Montenegro said, is a budget that prioritizes dollars for public safety, law enforcement and safe communities.

“Unfortunately, from the start, the executive budget laid out a framework that did not line up with having those conversations,” he said. “And we were pretty much given or told, take-it-or-leave it.”

That’s not exactly how Hobbs sees it, saying that Montenegro and House GOP leadership were invited to participate in the negotiations. The speaker disagreed.

“The House has always been open to conversations,” he said, though Montenegro acknowledged that, once the Senate began talking with the Democratic governor, it was clear that they were crafting a plan that would not be of interest to House Republicans.

“They decided to focus on their own negotiations behind closed doors,” he said. “We were not a part of those.”

Still, Montenegro said House Republicans remain ready to talk. And the spending plan that was introduced on June 23 is a way to do that while ensuring that state services do not come to a halt on July 1, once there is no state authority to spend money.

How much latitude the GOP caucus will give the speaker to agree to a deal — and avoid a financial crisis — is still up in the air.

Rep. Justin Olson is taking a hard-line stance.

The Mesa Republican said the Senate-approved budget for the next fiscal year is an 8.3% increase over current spending. By contrast, he said, inflation and population growth are up just 4.1%.

Olson said the last time lawmakers had such a giant mismatch was during the administration of Democratic Gov. Janet Napolitano.

“State expenditures increased by more than double the rate of growth in population and inflation,” he said. “We ended up with a $3.6 billion budget deficit, a budget crisis, that we were ill-prepared to be able to resolve.”

Lawmakers addressed the deficit with approximately $1 billion in cuts, a similar amount of borrowing, and a temporary sales tax increase that made up the difference.

Gov. Hobbs rejects ‘continuation budget’ proposal from House

Key Points: 
  • Hobbs rejects GOP’s budget delay as political grandstanding
  • State shutdown looms without budget by July 1
  • Bipartisan support exists, but Montenegro blocks House vote

Calling his proposal a “farce” and “grandstanding,” Gov. Katie Hobbs is rejecting the request by House Speaker Steve Montenegro for an unprecedented “continuation budget” to give him a chance to negotiate an alternative state budget than the one already agreed on by her and the Senate.

The stalemate threatens to bring much of the state government to a halt by the end of the month.

The governor stated that negotiations have been ongoing for months with the leaders of both parties in the House and Senate. The result, she said, was a $17.6 billion spending plan for the new fiscal year, which the Senate approved on a 17-12 bipartisan margin on June 19.

The day after, however, Montenegro insisted that there weren’t the necessary 31 votes in the House for approval, and now the Goodyear Republican wants more time to come up with a different plan.

The current state budget self-destructs on July 1. And, except for certain core functions like prisons, without a new budget, there is no authorization to keep other state operations running or pay other state expenses like aid to public schools.

Montenegro’s solution has never been implemented in Arizona: adopt an interim budget that maintains the current level of state spending beyond June 30, providing more time for negotiations.

“I remain committed to having conversations about improving our bipartisan budget,” the governor said of the $17.6 billion plan. “But let me be clear: Any kind of partisan ‘continuation budget’ will immediately meet my veto pen, even if it has the votes to reach my desk.”

Hobbs made it clear she believes that Montenegro and other House GOP leaders have no one but themselves to blame for the impasse.

The governor said there have been talks for months with leaders of both parties in the House and Senate to craft a bipartisan budget that gives a fair share of money to both the Republicans, who control the Legislature, and to Democrats.

“Sadly, House Republican leadership abdicated their responsibility and refused to meaningfully participate in those bipartisan conversations,” Hobbs said. 

The House GOP instead adopted its own plan to spend $17.3 billion, or $300 million less, and change a variety of state laws not in the compromise plan.

“Now, to cover for their failures, they are attempting to jam through an irresponsible and partisan ‘budget,”’ the governor said.

But Montenegro said House Republicans are not to blame. He claims his chamber’s spending plan was balanced and “prioritized public safety, infrastructure, and government accountability,” even if it did not have the vote of a single House Democrat.

That plan was ignored by the Senate, according to Montenegro. 

Instead, he said, Hobbs and senators are trying to force the House “into a take-it-or-leave-it deal that doesn’t reflect the will of our members or the people we represent.”

Montenegro said this isn’t strictly a partisan issue. He said even some Democrats are opposed.

That is true. In fact, six of the 13 Democratic senators — including Minority Leader Priya Sundareshan of Tucson — voted against the compromise after arguing it short-changed Democratic priorities like education. And Rep. Oscar De Los Santos, her House counterpart, said as many as seven of the 27 House Democrats would vote against it.

But De Los Santos said that he’s convinced that, just like the Senate, there are sufficient votes from both parties who are convinced that, with a politically divided government, this is the best deal to be had. And he said there’s an easy way to check that out when the House convenes on June 23.

“Put it up on the board and have a vote,” he said, something Montenegro has so far refused to do.

He’s not the only one who believes there is sufficient support for what the Senate negotiated with the governor. Even Rep. David Livingston, who chairs the House Appropriations Committee, said last week he believes that there may be as many as 40 votes in the 60-member chamber for the package.

Some Senate Republicans who voted for the compromise are questioning why Montenegro is raising the specter of a government shutdown at all amid the negotiations. Sen. John Kavanagh, who chairs the Senate Appropriations Committee, said the speaker needs to acknowledge the political reality of the situation.

“It takes three to tango,” the Fountain Hills Republican said. 

Kavanagh said that what he and other Senate Republicans recognized is “one of the dancers has a big veto stamp hanging from her belt.”

And Sen. T.J. Shope is questioning if anything new would come from a temporary spending package. 

“I truly don’t know what (Montenegro) thinks can be negotiated after June 30th that couldn’t have been negotiated in January, February, March, April, May, and last week,” said the Coolidge Republican.

He, like Hobbs, also disputed Montenegro’s contention that House Republicans never had a chance to be part of what resulted in the $17.6 billion package.

“That’s quite a take that’s not based on reality,” he said.

Shope also said he takes particular offense at Montenegro’s idea of a continuation budget because it would wipe out agreements in the compromise package to spend money for priority projects that Republicans got inserted into the package. That includes making improvements to State Route 347 that connects the edge of the Phoenix area with the rapidly growing community of Maricopa.

“This tactic is a direct assault on the people of Pinal County and the city of Maricopa specifically, who have to deal with the most dangerous highway in the western U.S.” he said.

De Los Santos said the continuation budget would delay or outright eliminate other priorities, like pay raises for state troopers and fire fighters, as well as additional dollars for K-12 schools.

More than money is involved in the dispute.

The package approved by House Republicans includes a series of changes in state law that are not in the compromise, including:

– A 2.5% cut in university tuition with the state not picking up the dollars lost;

– Mandates that students not in this country legally must pay full out-of-state tuition regardless of their Arizona residency;

– New restrictions on the ability of the attorney general to pursue criminal charges in certain election cases;

– Financially compensating people who were wrongfully convicted and imprisoned;

– Freezing the salary of Family Court judges and employees for the next two years.

Arizona to foreign agents – harass locals, face stiffer penalties

Key Points:
  • Bill increases penalties for foreign government intimidation crimes
  • Creates training program to address transnational repression
  • Democrats raise concerns over discrimination and constitutionality

The Senate passed a bill on June 18 that would enhance penalties for an agent of a foreign government or terrorist organization who attempts to intimidate dissidents living in the United States.

House Bill 2374 would require the person to be sentenced to the next higher class of offense if they’re convicted of crimes such as stalking, threatening, harassment, aggravated assault or coercing anyone while acting on behalf of a government or terrorist organization.

The measure would also require the Arizona Department of Public Safety to establish a Transnational Repression Recognition and Response Training Program. 

Rep. Quang Nguyen, R-Prescott Valley, introduced the bill to deter foreign governments such as the Chinese Communist Party from conducting unauthorized law enforcement activities targeting students, pro-democracy activists and expatriates from that country.

“I fled communist Vietnam as a child, so I know firsthand the devastating impact of government repression,” Nguyen said after the bill passed the House third read hearing on Feb. 26. “No one in Arizona — no one in America — should have to live in fear of harassment, intimidation or assault by foreign agents. This bill sends a clear message: We will not tolerate foreign governments trampling on our freedoms.”

The bill was partially inspired by a case in New York City where two men were arrested by the FBI in April 2023 after they were accused of operating an illegal police station on behalf of the People’s Republic of China and harassing dissidents who were critical of the Chinese government.

Nguyen said during a House Judiciary Committee hearing on Feb. 5 that the bill could give law enforcement a tool to distinguish between traditional crimes and transnational repression.

“These crimes may be reported normally by law enforcement officers, but in cases of transnational repression, it is important for us to know the driving force behind these crimes,” said Nguyen, who is chairman of the committee.

While Senate Republicans voted in support of the bill, Sen. Analise Ortiz, D-Phoenix, and other Democrats cited constitutional concerns that the legislation could violate the Equal Protection Clause of the U.S. Constitution, which guarantees equal protection under the law regardless of a person’s national origin.

“HB2374 and other bills like it would target people based on national origin and citizenship status, effectively discriminating against lawful residents and dual citizens of certain nations that are deemed hostile,” Ortiz said.

Ortiz criticized HB2374 and a handful of similar bills introduced by the Legislature this year that targeted foreign adversaries.

One measure, Senate Bill 1109, would’ve banned the People’s Republic of China from having substantial ownership interest in Arizona land. Gov. Katie Hobbs vetoed the bill on June 2.

“These bills could send a chilling message to potential economic partners,” Ortiz said. “Arizona has a reputation as a welcoming and business friendly state and we should not undermine that.”

Sen. Frank Carroll, R-Sun City West, countered by saying a foreign adversary is clearly defined by law, and it’s necessary to have these bills to protect against these entities. 

“It’s unfortunate that people try to frame it differently than it is,” Carroll said. 

Budget standoff between Senate and House after $17.6B proposal approved

Key Points:
  • The Senate passed the budget proposal on June 20
  • Chamber claims bipartisan effort, declares itself finished with session
  • House called for a continuation budget to keep negotiating passed deadline

The Senate passed its $17.6 billion budget proposal in the early morning of June 20 despite some disagreements among Republicans over a series of rejected amendment proposals and dissatisfaction from Democrats that the budget didn’t adequately address affordable housing, education and homeless programs.

The Senate passed its main budget feed bill, Senate Bill 1735, before ending a marathon session that concluded around 2 a.m. The chamber then passed a vote to declare its work for the year complete, without the House’s permission. 

However, House Speaker Steve Montenegro issued a statement late June 20 saying the Senate budget does not have the votes in the House with Democrats and Republicans in the chamber opposing the proposal.

Montenegro said the House is drafting a continuation budget to keep the state operating past June 30 and avoid a government shutdown.

“House Republicans have worked in good faith throughout the session. Last week, we did our job — passing a balanced budget that prioritized public safety, infrastructure and government accountability. That budget was ignored by the Senate,” Montenegro said. “The House is not going to be forced into a take-it-or-leave-it deal that doesn’t reflect the will of our members or the people we represent. We will do what responsible legislators should do: Take action to keep government running and protect Arizona taxpayers.”

The House passed a budget on June 13, but Gov. Katie Hobbs referred to the budget as “dead on arrival” and Senate Republicans criticized the proposal ahead of the Senate’s own budget release. The House proposal was created without direct input from the Senate or Gov. Katie Hobbs’ office.

Senate Republican leaders who helped negotiate the budget lauded their proposal as a bipartisan effort that preserves conservative priorities while investing in public safety, education, transportation, water and public health.

“In the wake of last year’s state budget, where Republican lawmakers reduced spending, shrank government, and eliminated a $1.4 billion deficit, Republicans are now focused on providing the men and women in public safety with raises, bonuses, and additional resources to better serve our communities, help secure our border, and protect our citizens from harm,” said Senate President Warren Petersen in a press release statement.

Some provisions they highlighted include a 5% pay increase for Arizona Department of Public Safety officers and 4% one-time bonus for correctional officers, and $113 million to finish work along State Route 347, widen Interstate 10 between Citrus Road and State Route 85 in the West Valley, and pursue other transportation projects in the state.

The budget also includes $183 million for school building renewal grants, used for school capital repairs; $66 million for additional assistance to school districts and charter schools; and provides K-12 supplemental funding for districts, charters and Empowerment Scholarship Accounts.

In addition, the budget fully funds the Division of Developmental Disabilities program, which was in danger of running out of money before Gov. Katie Hobbs signed a bipartisan emergency funding measure in April.

Some last minute amendments added to the budget included increasing the appropriation to the Department of Economic Security for homeless services to more than $19 million, as well as a measure that prohibits the Maricopa County Board of Supervisors from reducing funding to the Maricopa County Recorder’s Office below its adopted budget amount for the fiscal year.

Sen. Jake Hoffman, R-Queen Creek, criticized the amendment for not doing enough to protect County Recorder Justin Heap, who has clashed with the County Board of Supervisors over election responsibilities.

“It does nothing of material value to fix this problem,” Hoffman said. “It is lipstick on a pig so that people can say they did something without actually having to do it. Katie Hobbs should have been told to pound sand.”

Hoffman, chair of the Arizona Freedom Caucus, introduced an amendment that would’ve appropriated $4 million to the County Recorder’s Office and prohibited the Board of Supervisors from dictating how to use the money. He also attempted to add a similar measure for the Yuma County Recorder.

Those amendments were among several measures introduced by Hoffman that mirrored some of the provisions from the $17.3 billion House budget, which was deemed by some Republicans as more conservative than the Senate proposal.

Hoffman also attempted to add provisions to Senate Bill 1742, the budget reconciliation bill for higher education spending, including a 2.5% tuition reduction for in-state students at public universities.

His amendments to the bill would have allowed private institutions, such as Grand Canyon University, to participate in the Arizona Teachers Academy and prevented universities from subsidizing tuition for undocumented students.

Sen. John Kavanagh, R-Fountain Hills, spoke in opposition to Hoffman’s amendments, saying the proposals weren’t part of the original negotiations and would result in an automatic veto from Hobbs.

Hoffman criticized other Republican members for acquiescing to Hobbs instead of opposing her.

“The power of the purse doesn’t belong to the governor; it belongs to us,” he said.

While Republicans sparred over certain provisions, Democrats also expressed disapproval at items in the budget, as well as what was lacking.

They criticized the measure for failing to adequately address affordable housing, education funding, services for the homeless and people who are evicted, and the Empowerment Scholarship Accounts program.

Sen. Analise Ortiz, D-Phoenix, lamented the budget not extending the Low Income Housing Tax Credit program as home prices and rents continue to increase. 

Ortiz also mentioned a number of affordable housing bills that stalled this session, including the bipartisan Arizona Starter Homes Act, which she supported.

“What do we have to show for when headlines continue to say homelessness is increasing?” Ortiz said. “What do we have to show when the headlines are showing that evictions are still breaking records?”

Sen. Catherine Miranda, D-Laveen, opposed language in the bill that could “open the door” for state law enforcement agencies to enforce immigration policies, comparing it to the controversial Senate Bill 1070 immigration law passed in 2010.

“In this current climate, I cannot support a budget that includes language regarding the enforcement of SB1070, which was the groundwork for all the harm and destruction we currently see this administration causing,” Miranda said.

Senate Minority Leader Priya Sundareshan, D-Tucson, thanked her Democrat colleagues for working with Republicans and the governor’s office to craft the proposal, but still voted against the measure. She blamed the Empowerment Scholarship Accounts and flat tax rate for preventing the legislature from supporting other initiatives.

“This budget, like those of many previous legislatures, fails to meet the moment in many ways,” Sundareshan said in a prepared statement. 

The House will now determine the budget’s fate, with some of the chamber’s Republicans saying on social media they will not support the proposal.

“I’ll make this simple, I’m voting NO on the budget coming from the Senate,” said Rep. Nick Kupper on X. “Not because it’s a bipartisan budget, but because I’m philosophically opposed to all the backroom deals that were made to get it passed.”

Senate passes $17.6B bipartisan budget in early morning deal

Key Points:
  • The Senate passed the budget proposal on June 20
  • Chamber claims bipartisan effort, declares itself finished with session
  • Follows a House budget that was rejected June 13

The Senate passed its $17.6 billion budget proposal in the early morning of June 20 despite disagreements among Republicans over rejected amendment proposals and dissatisfaction from Democrats that affordable housing, education and homeless programs weren’t addressed.

The Senate passed its main feed bill, Senate Bill 1735, before ending a marathon session around 2 a.m. on June 20 with the chamber declaring its work, without permission from the House, finished for the session.

Still, Senate Republicans lauded their proposal as a bipartisan effort that preserves conservative priorities while investing in public safety, education, transportation, water and public health.

The House passed a budget on June 13, but Hobbs referred to the budget as “dead on arrival” and Senate Republicans criticized the proposal ahead of the Senate’s own budget release.

“This budget is viable, unlike the fantasyland budget proposed in the House,” said Senate President Pro Tempore T.J. Shope, R-Coolidge. “Elections have consequences. We are in an era of divided government, and we must proceed as such. Republicans can’t get everything they want, and neither can Democrats.”

Senate Appropriations Committee Chairman Sen. John Kavanagh, R-Fountain Hills, acknowledged there were similarities between the two proposals, although there were some notable differences.

For example, the original Senate plan didn’t include the 2.5% tuition cut for in-state university students or the three-year tuition surcharge freeze, a major priority for House Republicans. 

“Other than that, the budgets are not terribly different,” Kavanagh said on June 16. “Frankly, there isn’t that much money for people to make mischief with.” 

During the Senate Appropriations hearing, Kavanagh highlighted a number of provisions within the proposal, including an increase in the personal business property tax exemption from $270,000 to $500,000, $83 million in infrastructure investments, $54 million to finish projects along State Route 347 and a 5% percent increase for Arizona Department of Public Safety officers.

He also noted the $183 million for school building renewal grants and projects, $29 million for charter schools and school district additional assistance, $37 million for free and reduced lunch, and $18.5 million dedicated to programs serving the homeless.

“We don’t have that much extra cash this year, but there are a lot of good things in this budget,” he said.

Despite those allocations, Democrats lamented the lack of money for education and programs for people facing eviction and homelessness, while some Republicans wanted more money for law enforcement and corrections officer raises.

“We have decimated our revenues,” said Sen. Mitzi Epstein, D-Tempe. “Year after year, this body gives carve outs, loopholes, extra little gimmes to special people who can afford a very highly paid lobbyist and therefore we end with not enough revenue to pay for our schools, not enough revenue to pay for housing. These are fundamental things.”

Epstein said she was concerned that the budget wouldn’t extend the state’s Low Income Housing Tax Credit program, which is scheduled to sunset at the end of 2025 without renewal.

“We need to have that investment if we’re ever going to tackle (the) housing situation. We need ongoing help,” she said.

Sen. Vince Leach, R-Tucson, disagreed with a provision to take money from the Prescription Drug Rebate Fund and use it as a spending “tool.” He also criticized how SPEED bonds are distributed to the state’s universities.

In addition, the budget doesn’t allocate enough money to give pay increases to state corrections officers and Arizona Department of Public Safety officers, which could lead to those agencies losing personnel who seek more money elsewhere, Leach said.

“(At) 5% … we’re going to lose people,” he said.

Although lawmakers weren’t completely satisfied with all the provisions, crafting a bipartisan budget calls for compromise from both sides of the aisle, Kavanagh said.

“This is a bipartisan budget,” he said. “And one of the characteristics of a bipartisan budget is that neither side gets everything they want.”

You don't have credit card details available. You will be redirected to update payment method page. Click OK to continue.