disappearing money
House Appropriations Chair Praises Yee While Condemning Hobbs For Financial Mismanagement

February 19, 2025

By Matthew Holloway |

Last week, the Chairman of the Arizona House Appropriations Committee, Rep. David Livingston, praised Treasurer Kimberly Yee for her recent letter reporting on allegations of “missing money,” somehow “misplaced” by Democrat Governor Katie Hobbs. Yee explained that the “missing money…appears to be unfortunate gross financial mismanagement by the Hobbs Administration.”

Chairman Livingston said in a statement, “I appreciate Treasurer Yee’s clarity in addressing the financial mess Governor Hobbs has created. The issue isn’t ‘missing money’—it’s blatant mismanagement.”

“Under the Governor’s feckless leadership, state agencies are making massive spending decisions with zero legislative oversight, ballooning costs, and expecting taxpayers to foot the bill. This kind of incompetence cannot stand.”

Livingston has been among the legislators expressing increasing alarm over the State of Arizona’s Developmental Disabilities Program (DDD). The program is presently staring down insolvency in a matter of months due to decisions made by Hobbs’ Office.

“This Governor is running Arizona’s budget into the ground,” Livingston added. “She’s refusing to control spending, and instead of making responsible choices, she’s leaving families on the hook for her failures. The Republican Majority Legislature won’t stand by while she bankrupts the state.”

According to Matt Beienburg of the Goldwater Institute, the budget proposed by Hobbs in late January is “mismanagement at its worst.” He explained, “Her recently released budget plan seeks to tear down Arizona’s Empowerment Scholarship Account program (ESA), the most successful school choice program in the country, even as it fails to account for more than $800 million in statutorily required spending on the state’s Medicaid program.”

In a letter to Hobbs in early February, Livingston called the Governor out for “fiscal mismanagement and lack of legislative consultation.” He claimed that the Hobbs administration has failed to control costs, noting that the program’s supplemental funding needs have ballooned from $109 million to $122 million in just weeks. He observed that in the case of the DDD, “Under Governor Hobbs’ watch, the cost of this program has exploded from $750 million to $1.5 billion.” He added, “The Legislature was blindsided by these numbers, and we need immediate answers on how the administration plans to rein in spending before Arizona families are left with nothing.”

“The state must act now to fix this before families pay the price for this administration’s failure,” Livingston said, according to the Arizona Daily Independent. “We can’t afford more of the governor’s last-minute budget negotiations while programs Arizonans depend on collapse.”

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.

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