By Matthew Holloway |
Arizona legislative Republicans criticized Gov. Katie Hobbs after she stepped away from budget negotiations, raising concerns about her proposed plan involving the state’s Public Land Trust Fund, according to a joint statement released by GOP leadership.
Arizona Senate President Warren Petersen and House Speaker Steve Montenegro said in a statement that Hobbs “chose to walk away from budget negotiations despite a path forward being within reach.”
At issue is the governor’s proposal to increase distributions from Arizona’s Public Land Trust Fund, which supports K-12 education and is protected under the Arizona Constitution. According to the statement, legislative budget analysts estimate the proposal would reduce the fund from approximately $9.7 billion to $4.7 billion over the next 20 years.
The Republican leaders explained that the proposal calls for a 10.9 percent annual distribution over 20 years, compared to a previous structure of 6.9 percent over 10 years. They also raised concerns about the assumptions underlying the plan, including projected long-term investment returns.
“At the center of this dispute is her proposal to dramatically increase withdrawals from Arizona’s Public Land Trust, a voter-protected fund designed to support K-12 education for generations. This is not a solution. It is a long-term raid on a critical resource,” Petersen and Montenegro said.
“The Governor wants to drain a voter-protected education fund, pile on $1.5 billion in new debt, and rely on numbers that simply don’t add up,” they added. “We have shown the Governor’s Office a balanced budget with tax conformity. We’ve put forward a responsible plan that cuts taxes for working families and funds schools without gimmicks. She walked away from the table because her math doesn’t work. Arizonans deserve better than headlines and blame-shifting.”
The joint statement also criticized the broader budget framework, alleging it includes approximately $1.5 billion in new debt, higher taxes and fees, and revenue projections they described as unrealistic.
Republican leadership stated they had presented an alternative budget proposal that they described as balanced and including tax conformity, though details of that proposal were not included in the release.
The lawmakers said they intend to continue working on a budget plan in the coming weeks.
Hobbs’ office has not yet publicly responded to the statement as of publication, but in a post to X following its release, she wrote, “As Governor, and the sister of public school teachers—I know how important strong public schools are for Arizona families. I’m proud to keep fighting for our students, educators, and classrooms, because a great public education is key to expanding opportunity and the Arizona Promise.”
Petersen and Montenegro concluded their statement saying, “While the Governor plays political theater, Arizona families are dealing with real consequences. This impacts your cost of living, your paycheck, your kids’ classrooms, and whether Arizona remains affordable for the families who live here. A temper tantrum won’t balance the budget, and it is not leadership to rely on voters to pass the funding we need after the fact. We’re ready to get this done. The question is whether she is.”
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.
