Rep. Livingston Demands Gov. Hobbs ‘Take Responsibility’ For Her Financial Mismanagement

Rep. Livingston Demands Gov. Hobbs ‘Take Responsibility’ For Her Financial Mismanagement

By Matthew Holloway |

Rep. David Livingston, Chairman of the Arizona House Appropriations Committee, issued a letter to Governor Katie Hobbs this week calling on her to publicly acknowledge her responsibility for a $122 million shortfall in the Arizona State Developmental Disabilities (DDD) program and work with the Republican-controlled legislature to correct the problem. Livingston noted that “Despite repeated requests for meaningful discussions, the Governor and her staff have refused to engage.”

Hobbs has faced sustained criticism from Livingston, the Goldwater Institute, and Arizona State Treasurer Kimberly Yee who described the situation as “unfortunate gross financial mismanagement by the Hobbs Administration.”

In his letter to Hobbs, Livingston wrote, “For the past seven weeks, I have held seven Appropriations Committee hearings, laying out in clear detail how your administration’s budget mismanagement is creating serious financial risks for the state. At every turn, I have asked for serious, responsible discussions to address this situation, yet your office continues to say you ‘aren’t ready.’ Meanwhile, rather than engaging with the Legislature in good faith, you and your staff have chosen to issue public statements, assign blame, and demand more taxpayer dollars—without addressing the broken system that led us here. Here’s the reality:

  • The $122 million shortfall in the Developmental Disabilities (DDD) program stems entirely from unilateral decisions made by your administration. The Legislature was never consulted before these funds were spent, yet now taxpayers are being asked to cover the consequences.
  • Last week, Democrats attempted to force through $122 million in additional spending without any structural reforms or accountability measures—a short-term band-aid that does nothing to prevent future financial shortfalls. Republicans rejected this reckless approach because real solutions require responsible budgeting, not knee-jerk political stunts.
  • Your budget proposal is grossly unbalanced, leaving out over $800 million in expenses. Yet, your office suggested to reporters that lawmakers should simply “pass it” and trust the same administration that created this crisis to handle the details. That is not how responsible government works.”

Livingston emphasized that while Hobbs has opted “instead for public statements and political posturing,” Arizona families have suffered the consequences and “remain uncertain about critical services.”

In his letter, he implored the Governor, “You have a choice: You can work with us to fix this problem responsibly, or you can continue making public statements while Arizona families and service providers face uncertainty.” He added, “What we need is real accountability, long-term planning, and meaningful reforms to ensure this program is funded properly—not just for today, but for the future.”

The Appropriations Chairman closed his letter on an affirmation that “The Republican Majority in the House and Senate is committed to responsible budgeting and ensuring that Arizona families have the services they need—without reckless overspending.” He offered Hobbs a final recommendation: “It is time for you to step up, take responsibility, and come to the table.”

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.

House Appropriations Chair Praises Yee While Condemning Hobbs For Financial Mismanagement

House Appropriations Chair Praises Yee While Condemning Hobbs For Financial Mismanagement

By Matthew Holloway |

Last week, the Chairman of the Arizona House Appropriations Committee, Rep. David Livingston, praised Treasurer Kimberly Yee for her recent letter reporting on allegations of “missing money,” somehow “misplaced” by Democrat Governor Katie Hobbs. Yee explained that the “missing money…appears to be unfortunate gross financial mismanagement by the Hobbs Administration.”

Chairman Livingston said in a statement, “I appreciate Treasurer Yee’s clarity in addressing the financial mess Governor Hobbs has created. The issue isn’t ‘missing money’—it’s blatant mismanagement.”

“Under the Governor’s feckless leadership, state agencies are making massive spending decisions with zero legislative oversight, ballooning costs, and expecting taxpayers to foot the bill. This kind of incompetence cannot stand.”

Livingston has been among the legislators expressing increasing alarm over the State of Arizona’s Developmental Disabilities Program (DDD). The program is presently staring down insolvency in a matter of months due to decisions made by Hobbs’ Office.

“This Governor is running Arizona’s budget into the ground,” Livingston added. “She’s refusing to control spending, and instead of making responsible choices, she’s leaving families on the hook for her failures. The Republican Majority Legislature won’t stand by while she bankrupts the state.”

According to Matt Beienburg of the Goldwater Institute, the budget proposed by Hobbs in late January is “mismanagement at its worst.” He explained, “Her recently released budget plan seeks to tear down Arizona’s Empowerment Scholarship Account program (ESA), the most successful school choice program in the country, even as it fails to account for more than $800 million in statutorily required spending on the state’s Medicaid program.”

In a letter to Hobbs in early February, Livingston called the Governor out for “fiscal mismanagement and lack of legislative consultation.” He claimed that the Hobbs administration has failed to control costs, noting that the program’s supplemental funding needs have ballooned from $109 million to $122 million in just weeks. He observed that in the case of the DDD, “Under Governor Hobbs’ watch, the cost of this program has exploded from $750 million to $1.5 billion.” He added, “The Legislature was blindsided by these numbers, and we need immediate answers on how the administration plans to rein in spending before Arizona families are left with nothing.”

“The state must act now to fix this before families pay the price for this administration’s failure,” Livingston said, according to the Arizona Daily Independent. “We can’t afford more of the governor’s last-minute budget negotiations while programs Arizonans depend on collapse.”

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.

Livingston Demands Answers From Hobbs Over Looming Financial Crisis For Disabilities Program

Livingston Demands Answers From Hobbs Over Looming Financial Crisis For Disabilities Program

By Daniel Stefanski |

A Republican lawmaker is demanding answers of Arizona’s Democrat Chief Executive over a looming financial crisis of a vital program for parents and children.

On Wednesday, State Representative David Livingston sent a letter to Arizona Governor Katie Hobbs, “renewing his warning over the imminent insolvency of the state’s Developmental Disabilities (DDD) program, calling out [the governor’s] administration for its fiscal mismanagement and lack of legislative consultation.”

In a statement that accompanied the press release sharing the contents of the letter, Livingston, the Chairman of the House Appropriations Committee, said, “This administration has made major financial commitments without consulting the Legislature, and now families are staring down the consequences of an unsustainable program. Governor Hobbs must explain why her agencies are making decisions without oversight and what her plan if this program collapses.”

Livingston added, “Under Governor Hobbs’ watch, the cost of this program has exploded from $750 million to $1.5 billion. The Legislature was blindsided by these numbers, and we need immediate answers on how the administration plans to rein in spending before Arizona families are left with nothing.”

The longtime Arizona legislator wrote in his letter, “As I continue to untangle the executive budget proposal, I am most disturbed to learn that decisions made by your departments have threatened the operations of the State’s Developmental Disabilities program. The House Appropriation Committee was briefed last week, less than two weeks after your original budget proposal, that DDD’s supplemental needs have increased from $109 million just to keep the program from ceasing operations in April. This is alarming to both the Legislature and families using this program.”

Representative Livingston noted that his committee “was briefed that cost overruns are for three primary reasons: growth in eligibility, increased rates, and the continuation of the COVID-era Parents as Paid Caregivers Program.” He highlighted that “AHCCCS not only made these decisions without consultation of the Legislature, but without consultation of DDD, the manager of the program.”

The questions Representative Livingston asked of the Governor’s Office are as follows:

  • “Will your office choose the same posture this year and what is your plan when the DDD program must discontinue operations in the Spring?” (referring to the lateness of budget negotiations between the Governor and legislative Republicans)
  • “Can you explain why AHCCCS makes decisions without input?”
  • “I need to know as soon as possible what AHCCCS and DDD plan to do to control the spiraling costs in these programs.”
  • “What oversight and controls can be implemented to relieve the pressure on these employees and ensure uniform implementation?” (referring to reports of pressure by parents on Service Coordinators to increase hours, affecting the spending within the program)

This financial crisis over DDD adds to a rocky start of the 57th Regular Session between Arizona Republican legislators and Governor Hobbs in the third year of a divided state government.

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.

Small Business Advocacy Organization Honors Several Arizona Republican Lawmakers

Small Business Advocacy Organization Honors Several Arizona Republican Lawmakers

By Daniel Stefanski |

A leading small business advocacy organization has presented several Arizona lawmakers with its top award.

Earlier this summer, the National Federation of Independent Business (NFIB) presented a handful of Arizona legislators with its Guardian of Small Business Award. The individuals recognized with the award were as follows:

  • Speaker of the House Ben Toma
  • Representative David Livingston
  • Representative Travis Grantham
  • Senate President Warren Petersen
  • Senator J.D. Mesnard
  • Senator T.J. Shope

“These six lawmakers have gone above and beyond on behalf of Main Street Arizonans,” NFIB State Director Chad Heinrich said. “In this difficult economy, where costs continue to go up and open positions remain unfilled, it’s incumbent on lawmakers to not make it more difficult to own and operate a small business here in Arizona. Our members are grateful for each of these lawmakers’ commitment to free enterprise and sound policy.”

NFIB presented the award to Petersen in August.

NFIB presented the award to Shope in August.

NFIB presented the award to Mesnard in August.

NFIB presented the award to Toma earlier this month.

Toma responded to the award, stating, “Thank you. It is a great honor to be recognized by those dedicated to protecting and promoting small businesses.”

According to its website, “NFIB is the voice of small business, advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses, and remains so today.”

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.

Livingston Accuses Mayes Of Conflict Of Interest In Hobbs Pay-To-Play Investigation

Livingston Accuses Mayes Of Conflict Of Interest In Hobbs Pay-To-Play Investigation

By Daniel Stefanski |

Arizona’s Attorney General is facing yet another instance of Republican opposition to her desire to sideline Maricopa County Attorney Rachel Mitchell in an investigation of the Governor’s Office.

This week, State Representative David Livingston became the latest Arizona official to weigh in on the brewing scandal and investigation over the Governor’s Office’s alleged impropriety with taxpayer dollars, writing a letter to Attorney General Kris Mayes, demanding that she “immediately recuse [herself] from investigating the pay-to pay scandal, which involves substantial donations to both the Arizona Democratic Party and Governor Hobbs’ inaugural fund.”

In his letter, Livingston reminded the state’s top cop that he had previously communicated with her office to “express disappointment with your disposition of my public resources complaint, which alleged that then-Governor-Elect Hobbs misused public resources in violation of A.R.S. S 16-192 by impermissibly funneling 53 contributions to the Arizona Democratic Party through a state website.”

Livingston pointed to Mayes’ handling of this issue, in what he called a “clear conflict of interest in investigating my public resources complaint,” as fuel for his latest transmission to the Attorney General’s Office. He wrote that Mayes’ “conflict of interest and mishandling of my complaint warrants your recusal from investigating the pay-to-play scandal because it likewise stems from Governor Hobbs’ unprecedented inaugural fundraising and political donations to the Arizona Democratic Party.”

The Republican legislator also told Mayes that she “either grossly misunderstand[s] Arizona law or [is] making a desperate attempt to claim jurisdiction over the pay-to-play investigation to protect Governor Hobbs and/or the ADP” with her efforts to shield the Maricopa County Attorney’s and Arizona Auditor General’s Offices from the inquiry. Livingston explained that “it is the county attorney that may refer criminal matters to [the Attorney General’s Office] for investigation by the State Grand Jury if the offenses fall within its jurisdiction,” and that “the Auditor General routinely works with county attorneys to conduct investigations and is statutorily authorized to do so.”

As he concluded his letter, Livingston opined that “if [Mayes] dislike[d] Arizona’s laws or the limits of [her] authority imposed by those laws, you are welcome to advocate for statutory changes through the legislative process. He added a warning, stating that “what you may not do, however, is make false statements about Arizona law to micromanage the conduct of other elected officials and public servants or prevent them from exercising their own powers and duties.”

Livingston’s letter to Mayes comes after letters from two of his Republican colleagues in the State Legislature, Senate President Pro Tempore T.J. Shope and Representative Matt Gress, were sent to Mitchell and Mayes. Shope sent a letter on June 5 to both Mayes and Mitchell, asking both officials to “examine the facts surrounding the Department of Child Safety’s alleged decision to approve a nearly 60% rate increase for Sunshine Residential Homes and determine if conduct by any of the involved parties warrants a criminal or civil investigation.”

Gress followed up with a letter on June 6 to Mitchell, letting her know that “the Auditor General’s Office stands ready to partner with you in getting the facts about this troubling matter,” and that the Joint Legislative Audit Committee “will allocate the resources the Auditor General needs to help restore what appears to be a major breach of trust in our government.”

That day (June 7), Mayes fired off two letters to both Mitchell and the Arizona Auditor General, Lindsey Perry, over the investigation. Mayes told County Attorney Mitchell that “it would not be appropriate or in the best interest of the state to conduct parallel investigations into the same matter,” and that “a separate process conducted by the MCAO could jeopardize the integrity of the criminal investigation that my office will now proceed with.”

Mayes similarly told Auditor General Perry that “while [the Auditor General’s] office is statutorily authorized to examine records and conduct audits at the direction of the Joint Legislative Audit Committee, at this time, the assistance of [her] office is not needed by the Attorney General’s Office for our investigation.”

After the letters from Mayes, Arizona State Treasurer Kimberly Yee sent a letter to Maricopa County Attorney Rachel Mitchell, requesting “that [she] investigate the allegations that have occurred in [her] jurisdiction.” Yee also delivered a letter to Arizona Attorney General Kris Mayes, highlighting the state’s top cop’s recent assertion to the State Auditor General and the Maricopa County Attorney that her office had singular control over any investigation “is not appropriate or authorized by law, as those entities have separate jurisdiction to investigate this matter.”

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.