by Jonathan Eberle | Jun 26, 2025 | News
By Jonathan Eberle |
Arizona Governor Katie Hobbs on Tuesday vetoed a continuation budget passed earlier in the day by the state House of Representatives, sharply criticizing House Republicans for what she called “pointless political grandstanding” just days before the June 30 budget deadline.
The House-passed stopgap measure aimed to keep the government operating past the end of the fiscal year while negotiations continued over a full budget agreement. But Hobbs swiftly rejected the proposal, calling it a “sham budget” that threatens critical state services and derails the bipartisan progress already made in the Senate.
“For months, I worked with leaders of both parties, in both chambers, to craft a bipartisan, balanced, and fiscally responsible budget that the majority of Senate Republicans support,” Hobbs claimed in a statement. “That budget has pay raises for State Troopers and firefighters, cuts taxes on small businesses, invests in combatting Veterans homelessness, and makes childcare more affordable and accessible.”
The governor’s veto comes amid rising tensions between the House and executive branch. House Speaker Steve Montenegro (R-LD29) had framed the continuation budget as a responsible step to avoid a shutdown after the Senate-negotiated agreement failed to garner enough support in his chamber. “We owe it to the people we serve to take the time needed to get this right,” Montenegro said. “This continuation budget ensures state services remain funded while giving lawmakers the time to work toward a better, more responsible solution.”
Governor Hobbs, however, dismissed that reasoning and accused House Republicans of endangering essential state services for political gain. “I have long made clear that both of the partisan and reckless House Republican budgets are unacceptable,” she said. “They gut public safety, slash health care for Arizonans, harm businesses, fail to lower costs, and leave our Veterans out in the cold.”
With just five days remaining before the state’s fiscal year ends, the legislature remains without an approved budget. Hobbs urged lawmakers to abandon political brinkmanship and adopt the bipartisan budget already passed by the Senate.
“Now, it’s time for House Republican leadership to move past their political stunts and work productively with their colleagues before they force an unnecessary state government shutdown of their own creation,” she said.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Jun 25, 2025 | Economy, News
By Matthew Holloway |
Earlier this month, Goodyear’s City Council passed a massive $1.2 billion budget for 2026, unchanged from the tentative budget presented to the city in May. The budget is a shocking increase of over $304 million year-over-year or approximately 25.3%, without increasing its combined property tax rate or sales tax.
Goodyear Mayor Joe Pizzillo told reporters that the city was impacted by the loss of the city transaction privilege tax (TPT), eliminated as of Jan. 1st, 2025, through Republican tax reforms passed in the state legislature over the objections of Arizona Cities and Towns.
“A lot of cities here in the valley unfortunately had to raise their taxes to make up those $234 million…more than likely (which will) be doubling over the next five to 10 years,” Pizzillo said. “The city of Goodyear did not raise its sales tax or its combined property tax rate.”
Similar to property tax changes in Maricopa County, the city’s Truth in Taxation notice recorded an increase of $303,271. However, the overall property tax rate will not see an increase. This was accomplished by increasing the primary property tax rate, which is statutorily limited to an increase of 2%, while decreasing the secondary property tax keeping the rate effectively the same at $1.74 per $100 assessed property valuation.
In December 2024, Lee Grafstrom, a tax policy expert with Arizona Cities and Towns, told Fox10 that municipalities aren’t “cutting any of the services that citizens are requesting and requiring, so, we still have to do all the same amount of work. We just have this much less money to do it.”
“We have to find a way to either cut services or make up that shortfall,” he added. “This is a minor piece of a solution to a much larger problem, in terms of housing affordability.”
Finance Manager Ryan Bittle asked rhetorically, “‘Why is my property tax bill going up if the rate isn’t changed?’ (It) is one of the typical questions you might hear, and that’s simply because the value of your property is likely more this year than it was last year.”
The changes, according to Bittle, will bring more consistent revenues to Goodyear’s general fund. He explained that the secondary tax rate can only be used for servicing the city’s debts, while the primary property tax provides revenue for approximately 8% of the general fund on an ongoing basis.
In addition, Bittle explained that most of the property taxes paid by Goodyear property owners goes toward education, by a wide margin. “Most of the property taxes paid by citizens here in Goodyear falls outside of council’s decision-making authority,” Bittle said, noting that a full 66% of the collected taxes fund schools with just 15 cents on the dollar going to the city’s coffers.
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 Jonathan Eberle | Jun 22, 2025 | News
By Jonathan Eberle |
With less than two weeks before Arizona’s fiscal year ends, a deepening budget dispute between the state House and Governor Katie Hobbs escalated Saturday, as House Speaker Steve Montenegro announced plans to introduce a continuation budget to keep state government running past the June 30 deadline.
Montenegro said the House would move forward with a stopgap measure after determining that the Senate-passed executive budget, negotiated by Hobbs and Republican Senate leaders, lacks sufficient support to clear the House.
“The executive budget plan passed in the Senate does not have the votes in the House—with bipartisan opposition from Republicans and Democrats,” Montenegro said. “Now, with time running out and no viable path forward for their plan, it’s our responsibility to act to prevent a shutdown.”
He added that House Republicans had already passed their own budget last week, which he said focused on public safety, infrastructure, and government accountability—but that proposal was “ignored by the Senate.”
“The House is not going to be forced into a take-it-or-leave-it deal that doesn’t reflect the will of our members or the people we represent,” Montenegro said. “We will do what responsible legislators should do: take action to keep government running and protect Arizona taxpayers.”
A continuation budget, currently being drafted, would maintain current funding levels to preserve essential government operations while lawmakers continue to negotiate. However, the governor swiftly condemned the plan and signaled she would veto any such proposal.
In a statement, Governor Hobbs accused House Republicans of abandoning bipartisan talks and attempting to “jam through an irresponsible and partisan ‘budget.’”
“For months I have worked with leaders of both parties, in both chambers, to craft a bipartisan, balanced, and fiscally responsible budget,” Hobbs said. “Sadly, House Republican leadership abdicated their responsibility and refused to meaningfully participate in those bipartisan conversations.”
Hobbs warned that the continuation budget would gut pay raises for state troopers and firefighters, slash childcare and education funding, raise taxes on small businesses, and eliminate key investments in veterans’ services and wildfire mitigation.
“Speaker Montenegro knows this, yet he has chosen to continue with this farce as an exercise in pointless political grandstanding,” she said. “His reckless actions jeopardize basic government functions with potentially devastating consequences.”
The governor also criticized House Republicans for seeking an increase in their own per diem pay while proposing cuts to public safety and education programs.
“This irresponsible House Republican budget will raise costs and make our state less safe, less secure, and less competitive,” she added. “It’s time for House Republican leadership to come back to reality, stop wasting everyone’s time, and show some common sense by working with their colleagues in a productive fashion.”
With the June 30 deadline approaching, the battle over Arizona’s budget now hinges on whether either side can reach a new agreement—or whether the impasse will trigger a government shutdown.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | Jun 19, 2025 | News
By Jonathan Eberle |
Arizona Senate Republicans introduced a new state budget proposal Monday that aims to deliver a balanced fiscal plan while investing in public safety, education, infrastructure, water, and public health — all without raising taxes.
Senate leaders emphasized that their budget reflects bipartisan priorities and presents a path forward to avoid a looming government shutdown.
“This is a bipartisan budget the Republican majority can fully support and the governor will sign,” said Senate President Warren Petersen. “We are protecting the interests of Arizona by boosting pay for public safety personnel and increasing public safety resources to support safer communities.”
Petersen added that the proposal includes key investments in transportation and infrastructure, with a focus on road projects that support economic growth. The budget also addresses water security and enhancements to Arizona’s public health system.
“The governor has been adamant she will veto the House budget,” said Senate Appropriations Chairman John Kavanagh. “With the possibility of a government shutdown in a matter of days, we must move forward with our conservative spending plan, and we’re calling on our colleagues in both chambers to support it.”
Senate President Pro Tempore T.J. Shope offered a blunt assessment of the House proposal, describing it as a “fantasyland budget.”
“Elections have consequences,” Shope said. “We are in an era of divided government, and we must proceed as such. Republicans can’t get everything they want, and neither can Democrats. We did very well with protecting and funding our Republican priorities.”
Lawmakers face a deadline to approve a spending plan before a potential government shutdown later this week.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | Jun 16, 2025 | News
By Jonathan Eberle |
The Arizona House of Representatives passed a structurally balanced, conservative budget on Thursday, advancing a financial plan that focuses on strengthening public safety, reducing costs for families, and increasing government accountability.
Speaker Steve Montenegro (R-LD29) called the budget a reflection of voter priorities. “This budget delivers safe communities, strong families, and a government that works for the people — not the other way around,” he said. “It cuts tuition, raises pay for law enforcement, fixes critical roads, and reins in waste — all without raising taxes.”
Key components of the budget include a 5% pay raise for Department of Public Safety and corrections officers, $94 million for repairs to major highway infrastructure, and a 2.5% in-state university tuition reduction alongside a freeze for the subsequent two years. The budget also fully funds school choice programs and clears a backlog of Empowerment Scholarship Account applications.
Additional funding is designated to keep voter rolls accurate and up to date, fully fund payments for parents acting as caregivers, and provide developmental disability services. An expanded adoption tax deduction is also included.
“The House-passed budget puts the House Majority Plan into action,” Majority Leader Michael Carbone said. “We’re protecting opportunity by lowering costs for students and parents. We’re backing public safety with strong support for our law enforcement officers. And we’re holding government accountable by cutting waste and demanding better results — this is the kind of leadership Arizona voters asked for.”
Speaker Pro Tempore Neal Carter stressed the budget’s potential for boosting small business. “The House-passed budget gives long-overdue relief to Arizona’s small businesses by eliminating the administratively burdensome business personal property tax under the $500,000 threshold,” Carter said. “This helps local job creators grow, hire, and invest in their communities — and makes Arizona a more competitive place to do business.”
The budget package — HB2945 through HB2961 — now moves to the Senate for consideration.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
