By Jonathan Eberle |
The Joint Legislative Budget Committee (JLBC), led by Representative David Livingston (R-28), convened on Thursday to address what it described as a financial mismanagement crisis within Governor Katie Hobbs’ administration. The focus of the meeting was the Department of Child Safety’s (DCS) Congregate Care program, which is reportedly facing imminent financial collapse.
The JLBC directed DCS to use existing funds within its budget to maintain services for vulnerable children without seeking additional taxpayer dollars. According to Chairman Livingston, Governor Hobbs’ approach to budgeting has resulted in repeated financial emergencies.
“Governor Hobbs’s repeated failures to manage the budget responsibly have pushed agencies into crisis after crisis. Her administration’s approach is to overspend, ignore reality, and then demand a last-minute bailout. That’s not leadership—that’s recklessness,” Livingston stated.
Republican legislators accused the Governor’s team of failing to disclose available federal funds that could have been used to stabilize the Congregate Care program. Instead, they said that those funds were redirected to a separate Kinship Support Services initiative that had not previously received state funding.
“That decision by the Governor is stunning,” Livingston said. “Instead of prioritizing the program on the brink of insolvency, she chose to send federal dollars elsewhere. This raises serious questions about her administration’s priorities and decision-making.”
Beyond the immediate concerns with DCS, lawmakers also raised alarms about the Developmental Disabilities (DDD) program, which they claim is on track to run out of funds by April. Speaker of the House Steve Montenegro announced the formation of a House Ad Hoc Committee on Executive Budget Mismanagement to investigate what Republicans see as a pattern of fiscal irresponsibility under Governor Hobbs’ administration.
“We care deeply about the children in DCS’ care. That’s why we acted quickly today,” Livingston stated. “The Legislature will not reward fiscal irresponsibility by throwing more taxpayer dollars at a crisis of the Governor’s making. Moving forward, the Governor must be more transparent and accountable about her agency budgets.”
The coming weeks will likely see further debate as lawmakers seek answers regarding the state’s financial outlook and agency funding priorities.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.