By Ethan Faverino |

Budget negotiations between Arizona Senate Republicans and Governor Katie Hobbs’ administration are continuing at the Capitol after the Governor vetoed the Senate Republican budget proposal on May 5th.

The Republican plan included one of the largest tax cuts in Arizona history while fully funding education and public safety priorities.

Hobbs described the budget as “unbalanced and reckless.”

In her veto letter she stated, “This budget is unbalanced and reckless. With it, Arizona would default on our debt obligations, endanger vulnerable children, slash critical public safety funding, and pay for tax breaks to billionaires, data centers and special interests by kicking Arizonans off their healthcare and taking food off their tables. Arizonans cannot afford chaotic and dysfunctional Washington-style budgeting in our state government. I have made it clear that I will engage in good-faith negotiation. But I will not sign a budget that brings Washington-style chaos and dysfunction to Arizona’s budget. Let’s get back to the negotiating table and get serious about delivering for Arizonans. I am ready when you are.”

Despite the Governor’s public criticism, her team returned to negotiations almost immediately. On Thursday, May 14th, Governor Hobbs lifted the month-long bill signing moratorium she had imposed on April 13th.

The moratorium had been conditioned on Republicans publicly releasing a budget proposal and engaging in what she described as “good-faith” negotiations. It has severely limited the Senate’s ability to conduct normal floor business for weeks, stalling progress on unrelated legislation and disrupting the regular legislative process.

Senate Republicans noted that work never stopped despite the moratorium and recent media reports. Members have continued meeting with stakeholders, addressing constituent issues, reviewing legislation, and participating in budget discussions nearly every day.

This last week, the Senate Committee on Director Nominations convened to consider Governor Hobbs’ nominee, Brig. Gen. John Conley, to lead the Department of Emergency and Military Affairs.

The Republican budget proposal, unveiled on April 27, fully conformed Arizona’s tax code with federal changes made through President Trump’s “One Big Beautiful Bill.” It funded the tax relief through targeted fund sweeps and reductions to most state agencies outside of core priorities.

Senate Republicans remain focused on completing a responsible budget that controls spending, protects core priorities such as education and public safety, and delivers historic tax relief for Arizona families facing affordability challenges.

The Senate returned last week for additional floor work, committee activity, and ongoing budget negotiations. With the moratorium now lifted, Senate leaders expressed optimism that both the budget process and the broader work of the Legislature can move forward without further delays.

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