Partisan lines have been drawn over the Arizona Governor’s Executive Budget Proposal for Fiscal Year 2025.
Late last week, Democrat Governor Katie Hobbs released her second budget for the Grand Canyon State. In a statement accompanying the announcement, Hobbs said, “Arizonans are counting on us to make the state we call home the best place to live, work, and raise a family. We made incredible progress during my first year in office, and my Executive Budget proposal builds on this foundation and expands opportunities for every Arizonan to reach their full potential. We are cutting out the wasteful taxpayer spending while making critical investments that will help middle class families buy a home, expand access to childcare, make prescription drugs more affordable, and protect disabled Arizonans and seniors. This is what it looks like to invest in our communities and build a state that works for every Arizonan.”
🧵 I just released the Fiscal Year 2025 Executive Budget – a balanced appropriation that reduces overall spending while investing boldly in affordability, health & safety, and preserving our natural resources. Please read about it below ⬇️ pic.twitter.com/Cbsyj9gEXt
Legislative Republicans were quick to come out in opposition to the governor’s proposal. Senate Appropriations Chairman John Kavanagh wrote, “These elements in her proposal are dead on arrival with the Republican Majority. Her grandstanding of bipartisanship during her State of the State Address is a far cry from the reality of this budget proposal, as her funding cuts strictly target Republican priorities.”
House Appropriations Chairman David Livingston added, “Like last year’s proposal, the governor’s budget is an unserious mess. Her revenue and enrollment predictions don’t reflect reality, and her solution to the deficit proposes cuts to K-12 and water investments. We understand most of this is meant to appeal to her base. When she is willing to engage more seriously, Republicans are ready.”
🚨FOR IMMEDIATE RELEASE🚨 The Legislature Will Not Raise Taxes or Cut School Choice, as the Governor’s Budget Proposes
“Like last year’s proposal, the governor’s budget is an unserious mess,” stated House Appropriations Chairman David @Livingston4AZ . “Her revenue and enrollment… pic.twitter.com/XGPvBcwHSS
Hobbs’ allies in the Arizona Legislature supported her proposal. House Democratic Leader Lupe Contreras released a statement, saying, “We applaud the Governor for producing a budget that protects the priorities that will drive our state forward and that our caucus has consistently championed for our communities – public education, affordable housing, childcare for working families and vital services for the most vulnerable Arizonans. She is listening and leading.”
The Senate Democrat Caucus posted, “This budget is a good first step in providing Arizona families with assistance in affording the high costs of childcare, housing, and prescription medications.”
Today, Governor Hobbs released her FY2025 Executive Budget. This budget is a good first step in providing Arizona families with assistance in affording the high costs of childcare, housing, and prescription medications.
In the inaugural week of the 2024 legislative session, Republicans and Democrats took political shots at one another over the budget in anticipation of the governor’s proposal. Arizona Senate President Warren Petersen accused his Democrat counterparts of “refusing to come to the table for budget negotiations,” threatening that his caucus might have to move on without them. The Senate Democrats Caucus clapped back at the Republican chamber leader, asserting that he had “moved forward on every other budget without Democrats, so this newest attempt at grandstanding falls flat.”
The early back-and-forth between the two political parties follows Democrat Governor Katie Hobbs’ second State of the State address, where she called on legislators to “find common ground” and to “work together to solve this gap.”
Both parties have vastly differing approaches to solving the state’s budget shortfall, though their rhetoric is somewhat similar at the start of the legislative session. In the Senate Republicans’ Majority Plan for 2024, they vowed to complete this mission “without irresponsibly tapping into the Rainy-Day Fund or using budget gimmicks,” promising instead to “use sound fiscal management strategies, like trimming unnecessary spending and prioritizing government’s top functions.” Hobbs stated that her soon-to-be-released budget would “rein in wasteful spending without sacrificing public safety and public education, establish guardrails on unaccountable programs without hurting hard-working families, and tighten our collective belts through increased efficiencies and innovation without gutting programs that support small businesses, seniors, and those in need.”
Last year, House and Senate Republicans approved a budget that was vetoed by Hobbs. Despite many partisan fights in the public eye between Republicans and the governor, Petersen and House Speaker Ben Toma deftly managed a surprise budget compromise, in which their policy priorities remained largely intact. Hobbs will be under increased pressure this time around to extract more concessions from Republicans – especially over the Empowerment Scholarship Account (ESA) program.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
On Tuesday, Senate President Warren Petersen issued a press release, blasting his Democrat counterparts for “refusing to come to the table for budget negotiations.”
🚨 FOR IMMEDIATE RELEASE: Senate Democrats Kick Off 2024 by Refusing to Come to the Table for Budget Negotiations
Petersen’s release revealed that the Senate Appropriations Chairman, John Kavanaugh, had transmitted two messages to Democrats – one on December 21, 2023, and the other on January 4, 2024. Those emails requested “input on which areas of government the Minority Caucus would prefer to reduce expenditures on, and which areas to prioritize continued funding for. According to Senate Republicans, not only have Kavanaugh’s emails gone without “response or acknowledgement,” but Petersen “was informed the Minority Leader is directing her Caucus not to engage with the Senate Appropriations Chairman on the budget.”
In a statement accompanying the news release, Petersen said, “It’s unfortunate we’re kicking off this legislative session with Senate Democrats playing games at the expense of our taxpayers. It’s time to be adults. We want all lawmakers to be at the table during budget negotiations, as the citizens of Arizona expect of their elected leaders, but we’ve heard nothing but crickets from the Minority Leader on her statutory obligation. We may have no other choice but to move forward without their input.”
The Senate Republican leader’s words hit a nerve with the chamber’s Democrats, who fired back through their “X” account, writing, “FOR IMMEDIATE RESPONSE: it’s day 2 of session. You’ve moved forward on every other budget without Democrats, so this newest attempt at grandstanding falls flat. The state’s revenue picture has gotten worse month over month, so you know it’s not fiscally responsible to make budget decisions prior to the next Finance Advisory Committee meeting.”
FOR IMMEDIATE RESPONSE: it's day 2 of session.
You've moved forward on every other budget without Democrats, so this newest attempt at grandstanding falls flat. The state’s revenue picture has gotten worse month over month, so you know it’s not fiscally responsible to make… https://t.co/bVERhgqoOn
Senate Republicans corrected the record by reminding Democrats that they had “actually invited Democrats to the table last year as well.” The Republican Caucus shared an email from Kavanaugh from March 2, 2023, in which he extended an invitation to the Senate Minority Leader to “begin the process of discussing with you the budget priorities of the Senate Democratic Caucus.”
“You've moved forward on every other budget without Democrats”
🚨FACT CHECK: We actually invited Democrats to the table last year as well, but don’t let the facts get in the way of a good story. 😏 pic.twitter.com/Hql3FE1WOM
The early back-and-forth between the two political parties follows Democrat Governor Katie Hobbs’ second State of the State address, where she called on legislators to “find common ground” and to “work together to solve this gap.”
Both parties have vastly differing approaches to solving the state’s budget shortfall, though their rhetoric is somewhat similar at the start of the legislative session. In the Senate Republicans’ Majority Plan for 2024, they vowed to complete this mission “without irresponsibly tapping into the Rainy-Day Fund or using budget gimmicks,” promising instead to “use sound fiscal management strategies, like trimming unnecessary spending and prioritizing government’s top functions.” Hobbs stated that her soon-to-be-released budget would “rein in wasteful spending without sacrificing public safety and public education, establish guardrails on unaccountable programs without hurting hard-working families, and tighten our collective belts through increased efficiencies and innovation without gutting programs that support small businesses, seniors, and those in need.”
Last year, House and Senate Republicans approved a budget that was vetoed by Hobbs. Despite many partisan fights in the public eye between Republicans and the governor, Petersen and House Speaker Ben Toma deftly managed a surprise budget compromise, in which their policy priorities remained largely intact. Hobbs will be under increased pressure this time around to extract more concessions from Republicans – especially over the Empowerment Scholarship Account (ESA) program.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
After several years of inflated budgets propped up by trillions in unsustainable COVID cash flowing to the states from the federal government, Arizona lawmakers will be coming into the new year and the new legislative session facing a potential shortfall for the budget year in excess of $400 million. Naturally, the left and their sycophants in the media have for months been decrying this to be the result of 1) historic tax cuts enacted by Republicans in 2021 and 2) the successful universal expansion of school choice in 2022. This couldn’t be further from the truth, and there are three key facts that need to be remembered when discussing the state budget and a potential funding gap.
1. The Shortfall Is a Fraction of the Arizona Budget, Nothing Like California’s Crisis
The projected $400 million shortfall represents less than 5% of the total state budget, which spends $17.8 billion this year. Far from catastrophic. Compare this to our neighbor California, facing a $68 billion dollar deficit (nearly four times the size of our entire budget), which represents 22% of their $308 billion bloated budget – up from less than $200 billion only four years ago.
Opposite to our approach, California has continuously increased taxes, having one of the highest income tax burdens in the country. They also don’t provide choice to parents and families to make educational decisions themselves. Surely, if Arizona taking less of the people’s hard-earned money and providing ESAs to all families is the cause of our small funding gap, California, doing the exact opposite, should place them in tip top shape, right?
On Wednesday, October 11, Arizonans learned the budget Katie Hobbs signed into law will possibly have a $400 million shortfall. This means the state won’t have enough money to fund the budget because it’s too big and is spending too much money.
The left wants to blame the budget shortfall on the implementation of former Governor Ducey’s state income flat tax a couple years ago. They also demonize the families participating in the state school choice ESA program. However, if it weren’t for Hobbs’ spending increase of $2 billion and vetoing a $2 billion smaller budget, the state would still have an outlook with a budget surplus.
Let’s review the short history.
In June of 2022, Arizona Governor Ducey signed into law the Fiscal Year 2023 Arizona Budget. The Radical Left and then-Secretary of State Katie Hobbs praised that budget for being bipartisan.
Moving ahead to the most recent 2023 legislative session, Arizona Senate President Warren Petersen and Speaker of the House Ben Toma wanted the new legislature to prioritize their most important responsibility — the state budget. Accordingly, in February, the state legislature passed a continuation of the same $15.8 billion budget from 2022.
Hobbs vetoed it. The budget Hobbs vetoed is the same as the one she applauded after Ducey signed it into law. This year, Hobbs called the budget partisan and extreme. The budget Hobbs decided was good enough to sign into law was $17.8 billion, exactly $2 billion larger than the budget she vetoed.
Hobbs insisted on a budget that is $2 billion larger even while many economists predicted Arizona and the nation are at risk for an economic slowdown due to rising interest rates. Forbes reported, “At the end of 2022, the National Association of Realtors predicted a 15.8% drop in combined sales and prices for the Phoenix-Mesa-Scottsdale [housing] market in 2023.”
The Federal Reserve, the nation’s central bank, currently shows the median home price in the United States is collapsing faster than any other point in recorded history.
If a recession occurs, Arizona will see less tax revenue. This would also have a negative impact on the budget’s revenue because people are spending less money; therefore, the state is collecting less in taxes.
While the Radical Left wants to blame the budgetary shortfall on the flat tax that benefits everyone, one thing is clear. The state of Arizona is spending too much money, and Hobbs’ extra $2 billion budget is destroying Arizona. It is her fault.
Jeff Caldwell currently helps with operations at EZAZ.org. He is also a Precinct Captain, State Committeeman, and Precinct Committeeman in Legislative District 2. Jeff is a huge baseball fan who enjoys camping and exploring new, tasty restaurants! You can follow him on X here.
Arizona Republican legislators made sure that water investments received sizable contributions in the recently negotiated budget deal for the state.
In a press release issued last week, Representative Gail Griffin, the Chair of the House Committee on Natural Resources, Energy & Water highlighted a realized commitment to strengthen “Arizona’s water resources by directing over $360 million of state general fund dollars to be allocated to projects and programs that help to promote the conservation, development, and enhancement of water in Arizona.”
Griffin lauded Republicans’ efforts to include this funding for the state’s water security and future, saying, “Never before in our state’s history has water been as important to our state’s economic prosperity and individual liberty as it is today. As Republicans, we will continue to find solutions to Arizona’s most pressing issues, from water security to housing availability. We will continue to make investments in Arizona’s long-term water future.”
The release listed several areas where funds were invested: Water infrastructure projects, Reconstruction of a levee, Design and construction of a recharge basin, Installation of new irrigation systems and xeriscaping, Water project assistance for cities, towns, and irrigation districts in rural counties, Wastewater system improvements, Construction of groundwater delivery infrastructure, Brackish groundwater recovery pilot program, Statewide water resources planning, Water supply and demand assessments, Assured and adequate water supply administration, Stream adjudication support, Rural water studies, Water protection fund for projects that address conservation and watershed improvement, Conservation and drought program, Brackish groundwater study, Water conservation projects, On-farm irrigation efficiency projects, Water quality fee fund, PFAS mitigation, Safe drinking water program, Direct potable reuse of treated wastewater, Water infrastructure and commerce grants, Long-term water augmentation, Rehabilitation and drilling of new water wells.
Earlier this session, Representative Griffin was named as a co-chair of the Joint Legislative Study Committee on Water Security, which was formed by Arizona House Speaker Ben Toma and Senate President Warren Petersen to “convene and solicit information from water users, stakeholders, and the public regarding state solutions to address water security in Arizona.”
When announcing the formation of this committee, Speaker Toma said, “The availability of water for the success of all industries in our state is critical to our economy. Strengthening our existing water resources while we secure our future water supply is a top priority as we work to achieve common-sense solutions for our state. His counterpart in the Senate, Petersen, also stated, “From the 1980s Groundwater Management Act to last year’s historic investment in WIFA, the Legislature has led and will continue to lead the water policy solutions that require legislative action to implement.”
Water policy will most certainly be an issue of contention in a divided government in the years ahead. Republicans in the state legislature and Democrat Governor Katie Hobbs have already proven that they have varying opinions about how to lead the Grand Canyon State forward in this critical area. Democrat Attorney General Kris Mayes has also weighed in with her perspectives on Arizona’s water security, attempting to make sure that her office has a seat at the table for future actions.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
