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Hobbs Bested In Budget Deal, State Spending Cut 10%

June 18, 2024

By Daniel Stefanski |

Arizona Republicans again got the better of Governor Katie Hobbs with their second installment of a state budget amid a tenuous divided government.

On Saturday night, the Republican-led Arizona Legislature passed the 2024-2025 state budget and adjourned for the year after finishing its tasks. This latest budget was negotiated between Senate President Warren Petersen, House Speaker Ben Toma, and Democrat Governor Katie Hobbs.

“Following last year’s state budget, where Republican lawmakers provided inflationary relief to everyday Arizonans through $274 million in tax rebates distributed to struggling families, as well as a ban on the tenant-paid rental tax taking effect this January, Republicans are again successfully supporting our hardworking citizens while simultaneously reining in spending,” said Senate President Warren Petersen. “In this year’s budget, we defended more than $520 million allocated last year for much-needed transportation projects statewide. We also cut fees for Maricopa County drivers on emissions testing by 5%, and we banned fee increases on Arizonans from state boards for the next two years.”

House Speaker Ben Toma added, “At a time when Arizonans are having to tighten their financial belts, so is state government. The Arizona House of Representatives has passed a fiscally conservative, structurally balanced state budget that solves the nearly $1.5 billion deficit, without touching the rainy-day fund or using budget gimmickry. The budget trims government and protects conservative priorities. It increases funding for local border support operations and assists fentanyl interdiction efforts by law enforcement. It funds transportation and infrastructure and maintains our state’s commitment to water security.”

According to a press release from the Arizona Senate Republicans Caucus, some of the highlights from the agreed-upon budget included the following:

  • Reduction of state spending by $1.7 billion below the 2023-2024 budget (10%);
  • Reduction of ongoing spending by $330 million; and
  • Addition of $5 million for local border security support and $4 million for fentanyl interdiction and law enforcement response.

The Senate Republicans also noted that their efforts this year produced a budget that did not add any new taxes, tax increases, or debt. Additionally, the budget did not pull dollars from the rainy-day fund, ensuring that the state would have sufficient funds to draw upon should it experience more stormy weather in future years.

“We tightened the state’s belt by trimming fat from state agencies, and we reallocated unspent tax dollars to the general fund to eliminate the deficit, without irresponsibly tapping into our rainy-day fund,” said Senate Appropriations Chairman John Kavanagh. “Most government operations within the state received a healthy and manageable 3.5% reduction in spending, with a few exceptions. Safe communities free of crime and a secure border are the biggest priorities to Arizonans and Republicans alike, and we want to ensure our budget reflects that. As a result, funding for the Department of Public Safety, the Department of Corrections, and the Arizona Auditor General remains intact, while we’re also investing millions in border security, all without raising taxes or creating new debt.”

“Our budget also reflects our support for our citizens’ Second Amendment rights,” said Senator David Gowan, Chairman of the Senate Committee on Military Affairs, Public Safety & Border Security. “We’re funding two full time positions at the Department of Public Safety to address a backlog of concealed carry permit applications and renewals, with a requirement to prioritize Arizona residents first. This move can have a positive impact in our state by ultimately strengthening the safety and security of our communities as our citizens seek avenues to protect themselves, their families, and their private property. Additionally in this budget, we’re infusing crucial dollars into the Critical Access Hospitals (CAH) located in our rural communities, so these residents have convenient access to emergency care.”

Not every Republican was on board with this budget, however. State Representative Matt Gress explained his “no” vote on the most-recent edition, writing, “This year’s [budget] seems more focused on just ‘getting it done’ than ‘doing it right.’ There’s a reason there is bipartisan opposition. This is not a budget that reflects the shared priorities of Arizonans.”

Gress’ fellow Republican colleague in the chamber, Representative Jacqueline Parker, opined, “Literally the ONLY ones saying good things about this budget are Democrats…”

Senator Wendy Rogers weighed in after the vote in her chamber, posting, “This was a solid Republican budget and I voted for it.”

State Representative John Gillette agreed with Rogers’ sentiments, saying, “After a hard fight and two days of voting, we finally passed the 2024-2025 budget with tax cuts and NO new debt. Fiscal responsibility and conservative values prevailed.”

Regardless of their stance on the budget agreement, many Republicans seemed to be excited about the end of another legislative session.

Republicans will now have to make the case to Arizona voters in the all-important November General Election about why they should return to power in the state legislature for another two years in a divided government with Governor Hobbs. Throughout the past two years, Republicans have been mostly united and focused on protecting several of their priorities from the clutches of Democrats eager to dismantle values and principles. That balance of power, though, hangs on a knife’s edge as fall awaits.

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.

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