by Matthew Holloway | Oct 11, 2025 | News
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.
by Matthew Holloway | Oct 10, 2025 | News
By Matthew Holloway |
The ongoing disagreement between the City of Scottsdale and Axon Enterprise, Inc. has taken on a new dimension after the city issued a clarification of its position on last week. Regardless of whether the controversial “Axon Bill,” SB 1543, remains in effect, the city stated that Scottsdale City Code Section 2-5 requires a referendum to be placed on the ballot at the next general election, scheduled for Nov. 3, 2026.
In a statement issued October 3rd, the city stated that the timetable for a referendum could be shortened, noting, “The city could, if directed by the City Council, place that referendum question on a city election ballot before Nov. 3, 2026, by calling a Spring 2026 Special Election or placing the item on the Aug. 4, 2026, primary election ballot.”
Responding to the enactment of SB 1543 in April, the City Council voted to authorize filing a notice of claim/notice of unconstitutionality in a special meeting on September 12th. The claim filed on September 15th serves as formal notice to the State of Arizona that potential legal action from the city may follow. As reported by AZ Free News at the time, SB 1543 strips residents in cities of certain sizes, including Scottsdale, of their ability to challenge zoning decisions through ballot initiatives. The law applies retroactively and nullified a referendum effort by nearly 27,000 Scottsdale residents who had petitioned to challenge a city council-approved expansion of Axon’s Scottsdale headquarters, which included almost 2,000 multifamily residential units, over 400 hotel rooms, and approximately 47,000 square feet of retail and restaurant space.
City leaders pleaded with Governor Katie Hobbs to veto the bill, citing local concerns over increased traffic and infrastructure strain. They wrote in their plea, “These are not abstract issues—they impact the daily lives of our residents.”
Scottsdale Mayor Lisa Borowsky and the City Council warned that SB 1543 “undermines the principles of local control that are foundational to Scottsdale’s governance,” adding that it “sets a dangerous precedent.”
Borowsky told KTAR 92.3 host Mike Broomhead last week that, before “going to the state legislature,” Axon was negotiating with the city, and the 2000-apartment plan could have been reduced to 750. She added, “Let me be clear, I’m opposed to that high density of housing units,” referring to the initial 2,000 unit plan, but added there are three members of the council who are “vehemently” opposed to negotiation.
Public Affairs Supervisor Holly Peralta wrote, “The City Council’s vote did not authorize litigation, but that step could be taken by a separate Council action in the future.” She further added that a political action committee filed suit against the state and the city regarding Senate Bill 1543.
The lawsuit filed by Taxpayers Against Awful Apartment Zoning Exemptions, or TAAAZE, claims that SB1543 violates both the “special laws” ban in the Arizona Constitution, as well as the right of referendum enshrined there.
Alexis Danneman, a Perkins Coie, LLP, partner and lead counsel for TAAAZE, said in a statement. “This lawsuit is about two of our State Constitution’s most important principles. First, it’s about the right of Arizona voters to hold referenda and vote directly on legislation passed by their city councils but with which they disagree. Second, it’s about the Constitution’s ban on so-called ‘special laws,’ like the Axon Bill, that confer special privileges and benefits on a specific company or group. The Axon bill passed by the Legislature and signed by the governor is the very definition of special interest legislation and it is illegal in the state of Arizona.”
As a separate matter, the city is “evaluating that lawsuit,” according to Peralta.
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.
by Matthew Holloway | Oct 9, 2025 | News
By Matthew Holloway |
On Wednesday, House Speaker Mike Johnson (R-LA) clashed with Arizona Democratic Sens. Mark Kelly and Ruben Gallego in a heated Capitol hallway exchange over the ongoing government shutdown and the delayed swearing-in of Rep.-elect Adelita Grijalva (D-AZ-07).
While shutdown disputes are routine, the controversy over Grijalva’s seating is not. The late Rep. Raúl Grijalva’s daughter’s election victory won’t be certified until October 14th, but this seemed lost on Sens. Kelly and Gallego.
Speaker Johnson addressed the non-issue briefly after the Senators joined Grijalva in accusing him of making “excuses.”
Johnson told them, “We’re happy that she got elected. She’s filling her father’s seat, that’s fantastic.” But he clarified, “We have a long tradition here and a process of how we administer the oath to a member. …We’re going to do that as soon as we get back to work, but we need the lights turned back on, so we encourage both of you to go open the government.”
Rep.-elect Grijalva has been posting videos to social media accusing Johnson of making “excuses” for not seating her. She has claimed that “Southern Arizona still does not have a voice in Washington” and asked her soon-to-be constituents to pressure the Speaker into opening the House just to swear her in. This comes despite a release from Arizona Secretary of State and fellow Democrat Adrian Fontes on September 23rd, which reiterated that County Canvases were due October 9th and Statewide canvass is scheduled for October 14th.
Grijalva, Kelly, and Gallego have alleged that Johnson is refusing to swear her in to prevent a vote on releasing files related to the Jeffrey Epstein case with Gallego claiming, “You guys just don’t want her to be on the Epstein discharge petition. …This is an excuse so that she doesn’t sign onto that,” according to the Washington Examiner.
Johnson was direct in rebutting him, saying, “That’s totally absurd. You guys are experts at red herrings and distractions,” using the same phrase he did to describe Democrats’ Medicaid-related talking points. “There’s nothing to do with Epstein,” he added.
Turning to reporters, the Speaker dismissed the Democrats’ accusations as “a publicity stunt” and added that he is not “blocking her.”
Referring to the matter again as “distraction” and a “red herring” speaking to News Nation on Wednesday, Johnson was dismissive and said, “This has absolutely nothing to do about Epstein, this is a scheduling matter. As soon as the Democrats vote to reopen the government, we’ll get back to the regular order and session of Congress and that’ll be, I’m sure, among our first orders of business is to administer the oath to the newly elected representative.”
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.
by Matthew Holloway | Oct 8, 2025 | Education, News
By Matthew Holloway |
A new report on Arizona’s Empowerment Scholarship Account (ESA) from the Common Sense Institute (CSI) shows a robust jump in ESA enrollment of nearly 15,000 students since last year.
According to the detailed report, the school choice program has reached a milestone with 92,362 students enrolled as of September 15, 2025. Projections indicate that ESA numbers will reach 103,000 this fiscal year.
The report from CSI is released on a quarterly basis to address “a lack of reliable and consistent data about who is using the program and how.” CSI noted, “Applying scrutiny to hundreds of thousands of individual transactions on an almost real-time basis has made the program vulnerable to exaggeration, misinformation, and mischaracterization. No comparable program is subject to this kind of examination.”
The quarterly findings indicate the program is maturing from an initial stage of rapid growth to a more steady-state. Universal eligibility, rolled out in 2022, has fueled the fire, but the real story now is “switchers”—57% of new enrollees ditching public schools for tailored options like private academies, therapies, or homeschooling setups. The report underscores how shrinking school-age cohorts (down 20,241 since 2021) aren’t slowing the momentum.
Glenn Farley, Director of Policy & Research at CSI and the report’s author, explained, “Arizona’s ESA program is reaching a point of steady participation. The rapid expansion is behind us, and future growth will be shaped more by broader demographic trends and the choices families make across an increasingly competitive K–12 landscape.”
The key questions that CSI seeks to address include the ultimate cost of the program at full expansion, the steady-state count of how many people are using the ESA program, its ultimate extent, the demographic characteristics of its users, and the efficiency and good operation of the program.
CSI found that total ESA costs are on track to reach $1.0369 billion in FY 2026, with an average award of $10,349 per student. Notably, 88% of funds have already been spent, the highest percentage ever recorded. Administrative approval rates are at a peak of 88.8%, and reimbursements are processed in just 13 days on average, with a whopping 455,142 orders handled in the last quarter alone.
As far as budgetary impact is concerned, a common complaint from opponents like Governor Katie Hobbs, the CSI projects that “state K–12 Basic State Aid costs will exceed appropriations by $35 million in FY 2026, due largely to higher ESA participation and lower-than-expected district enrollment.”
The report also offers a firm, authoritative rebuke to allegations that the program is most used by “the wealthy.”
“Nearly 57% of ESA recipients live in ZIP Codes with a median family income of between $75,000 and $150,000 – up slightly since our last report. A quarter of ESA users may be lower-income, 13% reside in rural areas, and nearly 20% are estimated to be nonwhite,” the report states.
Farley concluded the CSI report’s findings, writing, “Administrative reform throughout 2025 by the Department of Education has improved various high-level metrics: the Department is approving purchases faster and at greater volume and embracing its statutory authority (risk-based auditing, Handbook language noting use-tests for technology purchases and not limiting the purchases directly, etc.). However, the ESA environment often remains narrative rather than fact driven. We remind users: ESA enrollment costs are offset by reduced enrollment in other K-12 programs; ESA misuse rates are lower than comparable programs; ESA growth is slowing and increasingly driven by students switching from traditional public options.”
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.
by Matthew Holloway | Oct 7, 2025 | News
By Matthew Holloway |
Six Arizona GOP House members—Reps. Andy Biggs, Juan Ciscomani, Eli Crane, Paul Gosar, Abe Hamadeh, and David Schweikert—urged Democratic Sens. Mark Kelly and Ruben Gallego in a letter to “do the right thing” by backing H.R. 5371, a clean continuing resolution to reopen the government.
In the letter, the congressmen told Sens. Kelly and Gallego, “Every single one of us voted for this seven-week, clean continuing resolution when it passed the U.S. House of Representatives on September 19th. This same kind of resolution, with no partisan extraneous policy riders, has garnered bipartisan support routinely in the past.” They also stated that the funding levels called for are precisely those that both Kelly and Gallego have supported in the past.
The congressmen explained, “Our goal in passing this bill was quite simple: keep the government open and functioning for all those who depend on it for a paycheck, and the critical services that our federal government provides. Our state is home to ten military installations, over 34,000 federal civilian employees, approximately 20,000 active-duty service members, over 450,000 veterans, and countless additional federal entities.
“Senate Democrats, yourselves included, are making unrelated policy demands that have nothing to do with government funding. It is far past time to stop holding Arizonans hostage and to put the American people first. Our constituents demand that you stop playing political games with their livelihoods.”
Ciscomani wrote via X, “Arizona’s House Republicans are united — and we’re calling on Arizona’s Senators Mark Kelly and Ruben Gallego to stop playing politics and prioritize Arizonans.”
In a statement on Monday, Rep. Crane added, “Last month, the House of Representatives passed a funding extension to prevent a government shutdown. Unfortunately, Senators Kelly and Gallego have repeatedly voted against this approach. A prolonged shutdown harms Arizonans, with many federal employees furloughed or working without pay. I urge our senators to back this sensible measure and help end the government shutdown.”
Hamadeh’s office also offered a statement in support via X writing, “Congressman Hamadeh is proud to stand with his Arizona Congressional Republican colleagues in demanding that Kelly and Gallego start putting Arizonans’ interests over Chuck Schumer’s.”
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.
