By Matthew Holloway |
Former Arizona Governor Doug Ducey sharply rebuked Gov. Katie Hobbs’ announcement of her 2026 reelection campaign, accusing her of fiscal mismanagement that turned a $2.5 billion surplus into a $1.4 billion deficit.
Hobbs launched her bid for a second term on Wednesday in a two-minute video posted to X, where she emphasized her administration’s focus on education, public safety, and housing affordability.
“Arizona is a place of hard work, hope and determination,” Hobbs said. “That’s why I’m running for reelection — to continue putting your family first.”
Ducey, a Republican who preceded Hobbs in office, responded hours later on X, quoting Hobbs’ video and writing: “This dishonesty isn’t surprising given the current struggles on the 9th floor. When I left office, I turned over a $2.5B SURPLUS to Katie Hobbs. She blew it all AND created that $1.4B deficit in only a year. AZ didn’t have a revenue problem, Hobbs had a spending problem.”
The exchange between the former and current governors highlights Arizona’s ongoing budget tensions. Hobbs inherited the surplus from Ducey in January 2023, but the state faced a projected $1.4 billion shortfall for fiscal year 2025. According to a report from the Common Sense Institute of Arizona (CSI), that shortfall was mainly driven by increased spending and not the state’s adoption of a flat income tax rate of 2.5% or the Empowerment Scholarship Account (ESA) program.
The GOP-led Arizona legislature approved a $16.1 billion budget in June 2024, following a major budget battle that addressed the deficit by incorporating spending cuts and one-time adjustments. Hobbs signed the measure, though Republican critics, including House Speaker Ben Toma, have described her fiscal approach as unsustainable.
Reactions to Ducey’s post were polarized. A few users defended Hobbs, claiming Ducey’s tax cuts and ESA expansions as root causes of the shortfall. Others echoed his criticisms. A few, urged Ducey to support GOP challengers in the 2026 gubernatorial race, like U.S. Rep. Andy Biggs. The vast majority offered critiques of the former Governor.
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.
