by Ethan Faverino | Jan 26, 2026 | News
By Ethan Faverino |
Arizona Governor Katie Hobbs recently released her executive budget proposal for the 2026-2027 fiscal year, totaling $17.7 billion in general funding expenditures. The plan represents a $100 million increase over the $17.6 billion budget approval by the Arizona Legislature for the prior year. According to Glenn Farley, Research and Policy Director at Common Sense Institute Arizona (CSI), the proposal extends a pattern of substantial growth in state spending observed in recent years.
In a recent article, Farley told The Center Square, “This budget continues the trend of massive increases, really historically unprecedented increases in the state’s Medicaid-funded disability program run out of the Department of Economic Security (DES).”
Farley highlighted that the most significant expansions in the proposal stem from Arizona’s Medicaid program, K-12 education, and other health care-related initiatives.
A standout element is the marked growth in the state’s Medicaid-funded disability services program operated by DES, which supports home-based care for Arizonans with disabilities. Farley described these increases as “historically unprecedented,” noting a shift where the largest caseload surge now occurs in the DES disability program rather than traditional drivers like the Arizona Department of Education.
The budget addresses the needs of approximately 62,000 qualified Arizonans by expanding access to home-based services through adjusted subsidy structures for home-based providers. For FY26, the proposal allocates an additional $128.1 million from the general fund to DES, supplemented by $271.9 million in the Department Long Term Care System Fund (DLTCSF).
In FY27, ongoing funding increases include $298.8 million from the general fund and $673 million in the DLTCSF.
Farley noted that Governor Hobbs’ budgets have frequently relied on one-time funding sources rather than sustainable ongoing commitments, a pattern that limits long-term fiscal stability.
At the same time, the proposal conforms to recent federal adjustments under HR 1, which aim to restrain cost growth in Medicaid and SNAP by shifting greater responsibilities onto states.
While this alignment addresses federal requirements, it adds operational complexity without resolving underlying sustainability concerns in Arizona’s expanding health and disability services.
In contrast to the administration’s spending approach, Arizona Republicans introduced a tax relief plan earlier this year, projected to save Arizonans $1.1 billion over the next three years, which Governor Hobbs vetoed.
Farley, who served eight years under the prior administration, observed that budget finalization timelines have shifted under Hobbs from the typical time of March or April to May or June.
He further noted an unusually high volume of significant tax code changes this year, driven by federal updates to adjusted gross income calculations, including the addition of new deductions and exceptions.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Jan 26, 2026 | News
By Ethan Faverino |
State Representative Justin Wilmeth (R-LD2) has introduced House Concurrent Resolution 2005 (HCR 2005), a proposed constitutional amendment that would mandate the Arizona Legislature to conclude its regular session no later than April 30 each year.
Arizona’s citizen Legislature was designed to be part-time, not full-time, reflecting the intent of the state’s founders for lawmakers, many of whom maintain outside careers.
Despite an expectation that the Legislature conclude its work within approximately 100 days of convening in January, routine extensions have become common, regularly stretching sessions into late spring and early summer.
“Arizona does not have a full-time Legislature, and it was never meant to operate like one,” said Rep. Wilmeth. “A firm April 30 adjournment restores discipline to the process, forces timely budget decisions, and respects the part-time nature of legislative service. We should be able to do the people’s work without dragging regular sessions into June.”
Prolonged sessions create unnecessary uncertainty for taxpayers, school districts, and state agencies that rely on timely budget approvals. By establishing a hard deadline of April 30, HCR 2005 aims to instill greater accountability, expedite essential decisions like the state budget, and align legislative operations with Arizona’s constitutional vision of a citizen-led government.
The measure preserves the Governor’s existing authority to convene special sessions whenever deemed necessary. Any special session would remain limited to only the subjects specified in the Governor’s call.
If approved by the Legislature, HCR 2005 would be placed on the ballot for the next general election, allowing the people of Arizona to vote on the proposed amendment.
The resolution explicitly amends the constitutional language to state that legislative sessions “shall commence on the second Monday of January of each year and shall adjourn sine die not later than April 30 of each year.”
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Jan 23, 2026 | Economy, News
By Ethan Faverino |
Arizona State Representative Leo Biasiucci (R-LD30) has introduced House Bill 2839, bipartisan legislation that would prohibit cities and towns across Arizona from imposing transaction privilege taxes or similar local taxes on food items that are eligible for purchase with benefits from the Supplemental Nutrition Assistance Program (SNAP) and the Special Nutrition Program for Women, Infants, and Children (WIC).
“In her State of the State address, Governor Hobbs said she wants to lower taxes for hardworking Arizona families,” stated Rep. Biasiucci. “I’m taking her at her word and answering that call by introducing HB 2839. This bill removes local taxes from the one thing every family needs to survive—food.”
HB 2839 amends ARS Section 42-6015 to clarify that municipalities may not levy transaction privilege, sales, use, franchise, or other similar taxes on SNAP and WIC-eligible food items, regardless of whether the purchaser participates in those programs.
These federal programs cover basic, essential foods such as fruits, vegetables, meats, dairy, breads, and other necessities for “home consumption.” Taxing these items increases costs for families already facing tight budgets, and the bill aims to provide tax relief by extending the exemption uniformly.
“Taxing SNAP and WIC food purchases is wrong. These are necessities, not luxuries,” added Biasiucci. “If the Governor is serious about lowering taxes, this bill should be an easy yes. If she vetoes it, that will speak volumes. Arizonans will know exactly where she really stands when she talks about tax relief for families.”
The legislation would apply retroactively to taxable periods beginning on or after the first day of the month following the general effective date, ensuring swift relief if enacted. Supporters highlight that approximately 70 Arizona municipalities currently impose some form of tax on food, and this measure could help families save hundreds of dollars annually on groceries.
Representative Biasiucci is joined by a bipartisan group of co-sponsors, including four Democratic representatives, fifteen Republican representatives, and one Democratic senator.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Jan 21, 2026 | News
By Ethan Faverino |
Congressman Abe Hamadeh (AZ-08) has secured a much needed victory for Arizona’s 8th Congressional District, as the U.S. House of Representatives approved more than $7 million in federal funding for critical local projects.
The allocation supports enhanced public safety for first responders and vital legal assistance for veterans, fulfilling the congressman’s commitment to prioritize these community needs.
The funding will benefit several key initiatives across cities in the district, including Peoria, Phoenix, Surprise, Glendale, and Arizona State University (ASU).
Funding Breakdown:
- City of Peoria: $2.85 million for Police Helicopter
These funds will enable the purchase of a police helicopter for the City of Peoria’s Public Safety Aviation Unit. The aircraft will provide rapid air support, strengthen public safety infrastructure, and meet growing demands across the West Valley.
- City of Phoenix: $1.9 million for Law Enforcement Simulator Training Equipment
The allocation supports the purchase of a helicopter training simulator for the Phoenix Police Department’s Air Support Unit, expanding training capabilities for flight crews and improving mission readiness in support of community safety.
- City of Surprise: $999,000 for Police Cruisers
The Surprise Police Department will use these funds to acquire 15 new, fully equipped police vehicles, strengthening its ability to prevent crime, enhance community safety, and support day-to-day operations.
- City of Glendale: $1 million for Police Radio Equipment Upgrades
Glendale Police Department officers will receive modern radio technology to replace aging equipment nearing the end of its life. The upgrades will improve field communications, incorporate officer safety features such as location tracking, and reduce malfunction risks.
- ASU West Campus: $500,000 for Veterans Legal Services Hub
ASU’s Veterans Legal Services Hub will expand free legal assistance to veterans, addressing service-connected criminal charges, discharge upgrades, disability claims, and other legal issues for veterans throughout Arizona.
Local leaders praised the congressman’s advocacy in securing these resources:
“I am grateful that the City of Phoenix is poised to receive these federal funds to modernize how we train our police officers. By equipping the Phoenix Police Department with state-of-the-art training technology, we will improve decision making, reduce operational costs, and strengthen public safety. Investing in advanced simulation technology helps our officers train safely, effectively, and with the highest level of preparedness for situations they may encounter on the job. I urge the Senate to pass this critical funding.”- Phoenix Mayor Kate Gallego
“Thank you, Congressman Hamadeh, for your efforts to support local law enforcement here in Glendale. The federal appropriation toward new police radios for the Glendale PD will enhance local capabilities and help make our neighborhoods safer.” – Glendale Mayor Jerry Weiers
“The passage of this earmark is a win for public safety in Surprise. With this funding, we can modernize our police fleet and better support the officers who protect our community. I thank Congressman Abe Hamadeh for his partnership and support.” – Surprise Mayor Kevin Sartor
“Congressman Hamadeh’s support for Peoria’s Aviation Unit demonstrates a real commitment to our city and the safety of our residents. Securing federal support for local priorities like this makes a tangible difference in our police and fire response capabilities. We’re grateful for Congressman Hamadeh’s continued partnership and advocacy on behalf of Peoria in Washington.” – Peoria Mayor Jason Beck
“On behalf of Arizona State University’s more than 24,000 veterans and military-connected learners, I sincerely thank Rep. Abe Hamadeh for his leadership and support of those who have served our nation. This Veterans Legal Services Hub at ASU’s West Valley campus will remove critical legal barriers, helping veterans and their families resolve issues related to service, housing, and justice so they can focus on successful transitions to civilian life.” – Pat Tillman Veterans Center Executive Director Shawn Banzhaf
Congressman Hamadeh, as a veteran himself, emphasized the importance of supporting those who serve our country and giving them the justice and support they deserve.
“I’m proud to have secured more than $7 million in federal funding for critical projects that will strengthen our local law enforcement agencies, allowing for increased training of our law enforcement professionals and giving them the equipment they need to proudly serve our residents,” stated Hamadeh.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Jan 19, 2026 | Economy, News
By Ethan Faverino |
U.S. retail sales experienced healthy growth in December 2025, aligning holiday season results closely with its forecast for record consumer spending, according to the National Retail Federation (NRF).
“December Retail Monitor data saw a sharp surge in growth as consumers continued prioritizing holiday spending on family and friends,” said NRF President and CEO Matthew Shay. “Continued economic momentum helped land 2025 holiday sales near the top of NRF’s forecast, reaffirming that consumers remain on solid footing.”
The Retail Monitor, which draws from actual, anonymized credit and debit card transaction data, showed that holiday sales from November 1 through December 31, 2025, increased 4.1% year-over-year.
This performance fell within NRF’s pre-season forecast range of 3.7% – 4.2% growth over the same period in 2024, which projected total holiday spending surpassing $1 trillion for the first time. Official December figures from the U.S. Census Bureau have not yet been released.
Key December highlights include:
- Total retail sales (excluding car dealers and gas stations) rose 1.26% month over month on a seasonally adjusted basis and 3.54% year over year, unadjusted. This marked a significant increase from November’s 0.12% monthly gain and 4.53% annual gain.
- Core retail sales (excluding car dealers, gas stations, and restaurants) climbed 1.6% month over month and 3.58% year over year, compared to a slight 0.04% monthly decline and 4.66% annual increase in November.
A calendar shift contributed to December’s strong performance, as a late Thanksgiving pushed Cyber Monday to December 1, adding an extra high-volume shopping day to the month’s totals.
The full year’s impact was notable, with total 2025 retail sales up 4.93% over 2024 and core sales rising 5.08%.
December sales increased in six out of the nine tracked categories on a year-over-year basis, with strong performances in:
- Clothing and accessories stores: +6.11% year-over-year, +2.05% month-over-month
- Sporting goods, hobby, music, and book stores: +5.16% year-over-year, +3.52% month-over-month
- Digital products: +3.6% year-over-year, +0.98% month-over-month
- General merchandise stores: +3.42% year-over-year, +2.9% month-over-month
- Grocery and beverage stores: +2.85% year-over-year, +0.33% month-over-month
- Health and personal care stores: +2.5% year-over-year, +1.92% month-over-month
Categories showing year-over-year declines included electronics and appliance stores (-0.09%), furniture and home furnishings stores (-0.82%), and building and garden supply stores (-5.3%), though all posted positive monthly gains.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
