by Steve Montenegro | May 4, 2026 | Opinion
By Arizona House Speaker Steve Montenegro |
Last week, the Arizona House of Representatives passed an Arizona First budget focused on increasing take-home pay, lowering costs, and protecting core services. The Arizona Senate is on track to approve it today. Governor Hobbs should sign it.
The fastest way to address an affordability crisis is simple: let people keep more of what they earn.
This budget returns $1.45 billion to taxpayers over the next three years. When government takes less, families keep more through bigger paychecks, larger refunds, and lower overall tax burdens.
Our plan raises the standard deduction so workers can keep more from each paycheck. It exempts tips and overtime pay so frontline workers see meaningful relief at tax time. It reduces the cost of raising a family by exempting childcare expenses from state taxes and increasing the per-child tax refund by 25%. And it supports seniors on fixed incomes by exempting retirement income for Arizonans age 60 and older.
The goal is straightforward: you keep more, and government takes less.
At a time when families are tightening their belts, government should do the same. Yet the governor’s proposal increased spending to $18.7 billion. The House budget spends $800 million less without compromising the core services Arizonans rely on. It reflects the same discipline families practice every day.
This plan shows that responsible leadership is still possible in divided government. It prioritizes stability, protects taxpayers, and delivers a balanced approach ahead of the new fiscal year.
It fully funds K-12 education with an inflation increase, provides $200 million for public school facility repairs, gives additional support to low-income students, and eliminates co-pays for reduced-price school meals. It protects the most vulnerable by funding congregate care within the Department of Child Safety, addressing rising costs for high-need individuals with developmental disabilities, and strengthening foster care support through community providers.
This is what responsible governing looks like: targeted tax relief, controlled spending, and a commitment to core priorities. It recognizes that affordability is not just a talking point. It is the defining issue for Arizona families.
Governor Hobbs now has a clear choice. She can embrace a balanced, responsible budget that lowers costs and delivers real relief. Or she can reject a plan that reflects the will of a divided government working in good faith.
The House has done its job. We cut taxes. We protected essential services. We kept spending in check.
For Arizona families feeling the strain of rising costs, this budget deserves the governor’s signature.
Steve Montenegro is the Speaker of the Arizona House of Representatives and serves Legislative District 29 in the West Valley, Goodyear, and Surprise. Follow him on X at @SteveMontenegro.
by Matthew Holloway | May 2, 2026 | Economy, News
By Matthew Holloway |
Arizona House Republicans announced passage of a state budget proposal this week, saying it delivers significant tax relief while reducing overall spending compared to Governor Katie Hobbs’ plan.
In a press release, House GOP leaders said the budget includes what they described as one of the largest tax cuts in Arizona history while maintaining funding for core government services.
The proposal has advanced through a series of budget-related bills in the House and Senate, including House Bill 4140, which implements key components of the fiscal year 2026–2027 budget.
According to the release, the proposal is designed to provide cost-of-living relief for families, seniors, workers, and small businesses and would spend approximately $800 million less than Hobbs’ budget.
Republican lawmakers said the plan maintains a balanced budget while prioritizing affordability, drawing a contrast with Hobbs’s budget plan.
“Arizona Republicans are delivering one of the largest tax cuts in state history, and our proposal has the votes to pass both chambers,” Arizona Senate President Warren Petersen (R-LD14) said in a statement.
“For months, Governor Hobbs told us full conformity to federal tax relief, including tax cuts for tipped workers, hourly employees, seniors, and small business owners, was impossible. It’s not,” he continued. “Under President Trump, Washington delivered relief for working Americans, and Arizona Republicans are making sure our taxpayers receive those same Trump tax cuts here at home. Republicans balanced the budget with honest numbers, protected core priorities, and provided real relief for families still struggling with higher costs. Arizona is leading the nation as the only state we are aware of advancing the full Trump tax cuts into law. Despite the Governor’s stunts, Republicans stayed at work and got the job done for our citizens.”
The budget proposal comes amid an ongoing policy dispute between the Republican-controlled legislature and the governor over taxes and spending priorities. Earlier in the session, Republican leaders advanced tax proposals they described as among the largest in state history, while Hobbs outlined a separate approach focused on targeted relief and new revenue mechanisms.
Arizona House Speaker Steve Montenegro (R-LD29) said in a statement, “House and Senate Republicans put forward a serious budget built on facts, not wishful thinking.”
He added, “It delivers major tax relief, eases cost pressures on Arizona families, fully funds core state services, and spends far less than the Governor’s proposal. It does not rely on gimmicks, inflated projections, or money that may never show up to balance the budget. In divided government, responsible leadership means facing the math, making hard choices, and protecting taxpayers. Republicans have done that, putting a workable budget on the table and giving Arizona a clear path to finish the session responsibly. The proposal is ready to move, and so is the Legislature. It is time to pass the bills and deliver for Arizona.”
In a post on X, Montenegro and Petersen said the proposal delivers tax relief, reduces spending, and fully funds core state services.
Additional details on specific tax provisions and final budget allocations are expected to be addressed as the proposal moves through the legislative process and negotiations continue with the governor’s office.
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 Staff Reporter | Apr 19, 2026 | News
By Staff Reporter |
Attorney General Kris Mayes is pushing a false narrative about Gov. Katie Hobbs’ leadership prowess, says Senate President Warren Petersen.
Mayes criticized Petersen over his recent interview remarks revealing the governor has refused to meet with legislative leadership to continue budget negotiations.
“Short memory,” said Mayes in a post with a picture of a 2021 headline describing former Republican governor Doug Ducey’s refusal to sign bills until a budget was approved.
The Republican representing LD14 retorted that Ducey continued to negotiate pending approval of the budget.
Unlike Ducey, Petersen said Hobbs hasn’t been willing to meet with the leaders of the Republican-led legislature at all unless they conform to her plan.
“Ducey didn’t walk away from the negotiating table like Hobbs did,” said Petersen. “We continued to meet with him even though he implemented a bill moratorium. Not the same.”
On Monday, Hobbs said she would veto all bills until Republicans publicized their budget plans.
“I’m ready to talk, but I can’t negotiate with politicians who refuse to show the public their plans,” said Hobbs. “The legislative majority needs to put forward their budget proposal and then join me in good faith negotiations so we can pass a bipartisan, balanced budget like we’ve done the past three years.”
Petersen explained in a Wednesday interview with KTAR that Hobbs wanted to balance the budget based on potential future funding to be accrued from the renewal of Proposition 123 — when, if ever, that comes to pass.
The proposition, passed by voters in 2016, pulled $300 million in annual revenue for K-12 funding from the State Land Trust Permanent Fund. It expired last summer, and the legislature still hasn’t agreed on a replacement renewal plan to put before the voters.
“[Hobbs] basically wanted us to balance something off of Prop 123, something that would have to pass later. We said that was irresponsible, and so she threw a temper tantrum and walked away from budget negotiations,” said Petersen.
Last month the Arizona Senate President and Arizona House Speaker issued a joint statement accusing the governor of “distorting the facts” on budget negotiations.
Part of Hobbs’ plan would “dramatically increase” the funds pulled from Arizona’s Public Land Trust, halving it over the next 20 years and jeopardizing the trust’s intended function to fund K-12 education in the long-term.
“This is not a solution. It is a long-term raid on a critical resource,” said the pair. “We’ve put forward a responsible plan that cuts taxes for working families and funds schools without gimmicks. She walked away from the table because her math doesn’t work.”
What’s more, the president and speaker said the governor’s proposed budget would add $1.5 million more in debt.
Hobbs’ communications director, Christian Slater, offered a different view of their budget plan. He claimed the governor’s proposed budget would lower costs, invest over $1.5 billion in public education, cut taxes for the middle class, and end tax breaks for data centers.
“[Republicans] know [their budget proposal is] unbalanced, unserious, and puts billionaires and special interests ahead of everyday working families,” said Slater. “Legislative Republicans must come clean with the people of Arizona and stop hiding their partisan and unbalanced budget from public scrutiny.”
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by AZ Free Enterprise Club | Apr 1, 2026 | Opinion
By the Arizona Free Enterprise Club |
Leading under divided government is hard, but it does not excuse a governor from actually governing. Republican legislative leadership has held a clear and defensible line when it comes to the state’s budget: spend only the revenues the state actually has, provide full tax relief by implementing full conformity and don’t force Arizonans to file their taxes twice and pay more in the process. When Hobbs couldn’t move them off that position last week, she didn’t really explain why their position was unreasonable or come back with a new proposal. Instead, she walked away from the table.
Recently, a rumor was circulating around the Capitol that the Governor and legislative leadership were discussing a deal to deliver conformity tax cuts and build the contours of the budget around a speculative state land trust ballot referral. Referring a Prop 123 extension would dump hundreds of millions of new dollars into district K-12 schools without any strings attached. By the end of last week, that balloon had popped, along with any credibility that Katie Hobbs knows how to lead.
As governor, it is Katie Hobbs’ job to bring people together and solve difficult problems. Yet before the calendar has even turned to April (very early for budget season at the capitol), Governor Hobbs has already admitted that she is out of ideas.
The Prop 123 Gimmick Was Never Going to Work
Now that the budget breakdown has gone public, details of the Hobbs proposal have been released, and it was far worse than anyone had even thought. Under the Hobbs plan, Arizona’s entire budget would somehow hinge on the passage of a new Proposition 123 referral at the ballot in November…
>>> CONTINUE READING >>>
by Matthew Holloway | Mar 21, 2026 | News
By Matthew Holloway |
Arizona legislative Republicans criticized Gov. Katie Hobbs after she stepped away from budget negotiations, raising concerns about her proposed plan involving the state’s Public Land Trust Fund, according to a joint statement released by GOP leadership.
Arizona Senate President Warren Petersen and House Speaker Steve Montenegro said in a statement that Hobbs “chose to walk away from budget negotiations despite a path forward being within reach.”
At issue is the governor’s proposal to increase distributions from Arizona’s Public Land Trust Fund, which supports K-12 education and is protected under the Arizona Constitution. According to the statement, legislative budget analysts estimate the proposal would reduce the fund from approximately $9.7 billion to $4.7 billion over the next 20 years.
The Republican leaders explained that the proposal calls for a 10.9 percent annual distribution over 20 years, compared to a previous structure of 6.9 percent over 10 years. They also raised concerns about the assumptions underlying the plan, including projected long-term investment returns.
“At the center of this dispute is her proposal to dramatically increase withdrawals from Arizona’s Public Land Trust, a voter-protected fund designed to support K-12 education for generations. This is not a solution. It is a long-term raid on a critical resource,” Petersen and Montenegro said.
“The Governor wants to drain a voter-protected education fund, pile on $1.5 billion in new debt, and rely on numbers that simply don’t add up,” they added. “We have shown the Governor’s Office a balanced budget with tax conformity. We’ve put forward a responsible plan that cuts taxes for working families and funds schools without gimmicks. She walked away from the table because her math doesn’t work. Arizonans deserve better than headlines and blame-shifting.”
The joint statement also criticized the broader budget framework, alleging it includes approximately $1.5 billion in new debt, higher taxes and fees, and revenue projections they described as unrealistic.
Republican leadership stated they had presented an alternative budget proposal that they described as balanced and including tax conformity, though details of that proposal were not included in the release.
The lawmakers said they intend to continue working on a budget plan in the coming weeks.
Hobbs’ office has not yet publicly responded to the statement as of publication, but in a post to X following its release, she wrote, “As Governor, and the sister of public school teachers—I know how important strong public schools are for Arizona families. I’m proud to keep fighting for our students, educators, and classrooms, because a great public education is key to expanding opportunity and the Arizona Promise.”
Petersen and Montenegro concluded their statement saying, “While the Governor plays political theater, Arizona families are dealing with real consequences. This impacts your cost of living, your paycheck, your kids’ classrooms, and whether Arizona remains affordable for the families who live here. A temper tantrum won’t balance the budget, and it is not leadership to rely on voters to pass the funding we need after the fact. We’re ready to get this done. The question is whether she is.”
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.
