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Livingston Demands Answers From Hobbs Over Looming Financial Crisis For Disabilities Program

February 11, 2025

By Daniel Stefanski |

A Republican lawmaker is demanding answers of Arizona’s Democrat Chief Executive over a looming financial crisis of a vital program for parents and children.

On Wednesday, State Representative David Livingston sent a letter to Arizona Governor Katie Hobbs, “renewing his warning over the imminent insolvency of the state’s Developmental Disabilities (DDD) program, calling out [the governor’s] administration for its fiscal mismanagement and lack of legislative consultation.”

In a statement that accompanied the press release sharing the contents of the letter, Livingston, the Chairman of the House Appropriations Committee, said, “This administration has made major financial commitments without consulting the Legislature, and now families are staring down the consequences of an unsustainable program. Governor Hobbs must explain why her agencies are making decisions without oversight and what her plan if this program collapses.”

Livingston added, “Under Governor Hobbs’ watch, the cost of this program has exploded from $750 million to $1.5 billion. 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 longtime Arizona legislator wrote in his letter, “As I continue to untangle the executive budget proposal, I am most disturbed to learn that decisions made by your departments have threatened the operations of the State’s Developmental Disabilities program. The House Appropriation Committee was briefed last week, less than two weeks after your original budget proposal, that DDD’s supplemental needs have increased from $109 million just to keep the program from ceasing operations in April. This is alarming to both the Legislature and families using this program.”

Representative Livingston noted that his committee “was briefed that cost overruns are for three primary reasons: growth in eligibility, increased rates, and the continuation of the COVID-era Parents as Paid Caregivers Program.” He highlighted that “AHCCCS not only made these decisions without consultation of the Legislature, but without consultation of DDD, the manager of the program.”

The questions Representative Livingston asked of the Governor’s Office are as follows:

  • “Will your office choose the same posture this year and what is your plan when the DDD program must discontinue operations in the Spring?” (referring to the lateness of budget negotiations between the Governor and legislative Republicans)
  • “Can you explain why AHCCCS makes decisions without input?”
  • “I need to know as soon as possible what AHCCCS and DDD plan to do to control the spiraling costs in these programs.”
  • “What oversight and controls can be implemented to relieve the pressure on these employees and ensure uniform implementation?” (referring to reports of pressure by parents on Service Coordinators to increase hours, affecting the spending within the program)

This financial crisis over DDD adds to a rocky start of the 57th Regular Session between Arizona Republican legislators and Governor Hobbs in the third year of a divided state government.

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

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