by AZ Free Enterprise Club | Feb 9, 2026 | Opinion
By the Arizona Free Enterprise Club |
Governor Katie Hobbs rolled out her budget last month and, unsurprisingly, it doesn’t add up.
Not only because her “solutions” don’t match the problems she claims to be solving, like suggesting we can make goods and services more affordable by piling on new taxes and fees, but because her budget quite literally just doesn’t add up.
While it’s become common for governors to release budgets built on rosier revenue assumptions than the Legislature’s more conservative Joint Legislative Budget Committee (JLBC), Hobbs’ proposal relies on projections so fanciful it resembles a fairy tale more than a fiscal plan.
Counting Chickens Before They Hatch
Hobbs’ budget is a $17.7B spending plan ($100M more than last year) that leaves a meager $37.8M balance at the end of FY27. That means her revenue projections leave very little room for error. Yet one of the more obvious facts about her budget is just how likely error-prone these projections are, a fact that Republicans during a joint appropriations hearing were sure to point out.
One of the most speculative assumptions Hobbs is making in her budget proposal is relying on $760 million of “reimbursements” from the federal government for expenditures the state has made for border security since 2021. That is a good chunk of change, and her budget is unworkable without it.
The problem is it is actually way more likely than not that even if the state receives something in the way of reimbursement, it will not be the full amount, and who knows on what timeline. Regardless, it is irresponsible to commit money out the front door that may never come in.
This is nothing new for Hobbs. Just last year she continued a COVID-era program that neither had legislative authorization to continue nor the ongoing financial allocations to support it. That wound up blowing a $122M fiscal hole in the previous year’s budget mid-session that Republicans had to mop up.
The Governor’s budget also depends on tapping the State Land trust for another $1.5 Billion. Setting aside whether its a good idea to raid the land trust set up for various beneficiaries (K-12, Universities, deaf and blind, etc), changing the formula for trust land distributions requires a constitutional amendment that would need to be approved by voters in November.
Hobbs’ “Affordability” Plan is Really a Chaotic Tax-And-Spend Plan
Hobbs wants to brand her budget as improving affordability, but it does just the opposite. Every idea in her plan is built around $1B in new taxes and fees and the hope that the bureaucracy can “manage” the cost of living while literally contributing to its inflation…
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by AZ Free Enterprise Club | Jan 31, 2026 | Opinion
By the Arizona Free Enterprise Club |
For years, the Left has been working tirelessly to flip Arizona blue. Armed with a secret network of tax-advantaged funds, political nonprofits, and union dollars, their aim has been to turn our beloved, freedom-loving state into the next Colorado or California. In fact, many groups on the Left waged high stakes to flip Republicans’ paper-thin control of the state legislature in 2024.
And how did that turn out? A historic landslide victory for President Trump while the Left actually lost ground in Arizona’s legislature. Apparently funneling millions of dollars to liberal causes doesn’t make up for bad ideas.
Now, with the 2026 midterm election a little over nine months away, the latest voter registration numbers are in, and they show an encouraging trend. Republicans have expanded their registration advantage over Democrats to 7.64%—the largest lead in state history—while Democrats continue their free fall in party registration.
Even more impressive is that these gains are not isolated to a few particular areas of our state. Every single county in Arizona has become MORE Republican since the 2024 election. That’s right. In the counties where Democrats have larger voter registration numbers than Republicans, the gap has closed. And in counties where Republicans have larger voter registration numbers than Democrats, the gap has widened. In fact, the gap between registered Republicans and Democrats in Maricopa County has increased by more than half a percent in just the past year.
Yet perhaps the most surprising trend behind this growing Republican advantage is that while Republicans have been able to register a lot of new voters, the same cannot be said for the Democrats…
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by AZ Free Enterprise Club | Jan 27, 2026 | Opinion
By the Arizona Free Enterprise Club |
What’s being sold as a harmless planning document is actually a blueprint to fundamentally reshape how West Mesa residents live and move about their city. The MesaCONNECTED Transit-Oriented Development (TOD) Plan has been in the works since 2021. Funded by a federal grant from the Federal Transit Administration (FTA), the plan covers a five-mile “transit corridor” in West Mesa and is intended to guide future land-use decisions in that area. At first glance, it appears benign, seemingly focused on growth and beautification. City officials repeatedly emphasize that it is not a transit plan and does not initiate any specific projects. However, taken as a whole, MesaCONNECTED lays the groundwork to transform West Mesa into what is effectively a 15-minute city (or even a 5-minute city, by their own standards) without explicitly using that label.
The plan draws inspiration from communities in Oregon and California, as well as Arizona’s own Tempe Cul-De-Sac neighborhood, all of which follow planning models that prioritize density, transit-oriented development, and reduced automobile use. The stated goal is to create fully walkable areas centered around “transit nodes” while making existing transit easier to access. The section of West Mesa encompassed in the plan includes major hubs such as Mesa Riverview, the Asian District, Mesa Community College, Banner Desert Medical Center, Downtown Mesa, and surrounding areas.
A central objective of the plan is to increase density and place housing closer to employment to “reduce vehicle miles traveled” (pg. 5). This is not a neutral goal. It assumes driving is a problem to be corrected rather than a freedom to be preserved. In a city like Mesa where families rely on personal vehicles for work, school, church, medical care, and more, designing communities to deliberately discourage driving punishes the very behavior that allowed the city to grow in the first place. Rather than responding to how residents already live, the plan attempts to reshape daily habits by making driving less practical and alternative modes more “convenient…”
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by AZ Free Enterprise Club | Jan 21, 2026 | Opinion
By the Arizona Free Enterprise Club |
At a time when Arizonans are still struggling to recover from years of Biden-era inflation, Republican lawmakers acted swiftly to deliver on their Affordable Arizona agenda. On just the fourth day of the legislative session, they passed SB1106, a tax conformity package that delivered the full benefits of the One Big Beautiful Bill (OBBB) to Arizona taxpayers, families, and businesses. The legislation provided $1.1 billion in tax relief and, just as importantly, immediate certainty for millions of Arizonans heading into tax season.
The very next day, Governor Katie Hobbs vetoed it.
That veto leaves taxpayers facing a potential $1.1 billion tax hike and widespread chaos as filing season begins. This isn’t simply the typical tax policy fight between Democrat and Republican ideologies. But a full display of Katie Hobbs’ failure to lead.
From the outset, she has mishandled this critical issue of federal tax conformity with conflicting messages, unauthorized executive actions, and zero coordination with the Legislature or even apparently her own agencies. The result has been a self-inflicted mess, and Arizona taxpayers will be the ones to suffer the price.
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by AZ Free Enterprise Club | Jan 16, 2026 | Opinion
By the Arizona Free Enterprise Club |
Over the past month, Minnesota has been hard at work to set the gold standard for jaw-dropping fraud scandals under the watch of Democrat Governor Tim Walz. The Somali daycare scandal has turned the state into a national punchline—hundreds of millions in taxpayer dollars stolen in plain sight while Kamala Harris’ favorite “masculine” governor looked the other way.
Now, with Walz stepping aside from this reelection bid, a new contender for “most scandal-plagued governor on the 2026 ballot” has emerged: Arizona Governor Katie Hobbs. While Minnesota’s scandals have dominated headlines, Hobbs has been busy compiling a rap sheet that rivals what happened in the Land of 10,000 Lakes. But unlike Walz, Hobbs and her administration are under active criminal investigation.
A Pay-to-Play Scheme Engulfs the Hobbs Administration
The list of Hobbs’ scandals is a mile long and begins at the start of her tenure as governor. At that time, Hobbs set up a shady slush fund to provide donors with a conduit to buy political favor from her administration. While setting up and managing the fund, Hobbs illegally used public resources—like the state’s website—to solicit money for her inauguration. And she also tried to stop the disclosure of the names of those who donated to her inaugural fund.
After immense political pressure, Hobbs finally released the names of the donors. One of the names of the groups on the list was Sunshine Residential Homes Inc., a for-profit company that contracts with the State of Arizona. Sunshine Residential donated $100,000 to the secret fund, which was suspicious enough. But after some additional digging by local reporters, an even deeper level of corruption was revealed—an alleged pay-to-play scheme between Hobbs and the group home.
According to the report, it turns out Sunshine Residential Homes doled out $400,000 to the Arizona Democratic Party, Hobbs’ gubernatorial campaign committee, and her aforementioned inaugural fund. Hobbs and her campaign finance manager even arranged a dinner with the government contractor to meet with the CEO in private.
After making the large donations, Sunshine was granted a 30 percent increase in their rates at a time when the Arizona Department of Child Safety cut loose 16 providers! On top of that, no other standard group home provider received a rate increase. This arrangement ensured that Sunshine Residential would receive millions in additional revenue at the taxpayers’ expense.
Hobbs’ is currently under three separate criminal investigations for this pay-to-play scheme, but it’s not the only financial scandal we’ve seen during her reign as governor…
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