by Ethan Faverino | Jan 26, 2026 | News
By Ethan Faverino |
Arizona Governor Katie Hobbs recently released her executive budget proposal for the 2026-2027 fiscal year, totaling $17.7 billion in general funding expenditures. The plan represents a $100 million increase over the $17.6 billion budget approval by the Arizona Legislature for the prior year. According to Glenn Farley, Research and Policy Director at Common Sense Institute Arizona (CSI), the proposal extends a pattern of substantial growth in state spending observed in recent years.
In a recent article, Farley told The Center Square, “This budget continues the trend of massive increases, really historically unprecedented increases in the state’s Medicaid-funded disability program run out of the Department of Economic Security (DES).”
Farley highlighted that the most significant expansions in the proposal stem from Arizona’s Medicaid program, K-12 education, and other health care-related initiatives.
A standout element is the marked growth in the state’s Medicaid-funded disability services program operated by DES, which supports home-based care for Arizonans with disabilities. Farley described these increases as “historically unprecedented,” noting a shift where the largest caseload surge now occurs in the DES disability program rather than traditional drivers like the Arizona Department of Education.
The budget addresses the needs of approximately 62,000 qualified Arizonans by expanding access to home-based services through adjusted subsidy structures for home-based providers. For FY26, the proposal allocates an additional $128.1 million from the general fund to DES, supplemented by $271.9 million in the Department Long Term Care System Fund (DLTCSF).
In FY27, ongoing funding increases include $298.8 million from the general fund and $673 million in the DLTCSF.
Farley noted that Governor Hobbs’ budgets have frequently relied on one-time funding sources rather than sustainable ongoing commitments, a pattern that limits long-term fiscal stability.
At the same time, the proposal conforms to recent federal adjustments under HR 1, which aim to restrain cost growth in Medicaid and SNAP by shifting greater responsibilities onto states.
While this alignment addresses federal requirements, it adds operational complexity without resolving underlying sustainability concerns in Arizona’s expanding health and disability services.
In contrast to the administration’s spending approach, Arizona Republicans introduced a tax relief plan earlier this year, projected to save Arizonans $1.1 billion over the next three years, which Governor Hobbs vetoed.
Farley, who served eight years under the prior administration, observed that budget finalization timelines have shifted under Hobbs from the typical time of March or April to May or June.
He further noted an unusually high volume of significant tax code changes this year, driven by federal updates to adjusted gross income calculations, including the addition of new deductions and exceptions.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Staff Reporter | Oct 3, 2025 | News
By Staff Reporter |
Republican lawmakers pushed for reforms to the state’s disability assessment policies before they took effect this week.
House Majority Whip Julie Willoughby and State Senator Janae Shamp issued a press release on Tuesday raising concerns about the reasonableness and evidence basis for the latest assessment policies from the Arizona Department of Economic Security (DES) and Arizona Health Care Cost Containment System (AHCCCS).
Per Willoughby and Shamp, coalitions of parents, advocates, and direct care workers reported having little opportunity for meaningful discussion or improvement regarding the new assessment policies, which they described as “extreme and unsustainable.”
Stakeholders allege the new assessment model from DES and AHCCCS will cause bigger burdens for everyone across the board: families, health care providers, and the state. As one example, they argue against the shift of habilitation services to an age basis instead of a skill basis, citing the long-term costs and setbacks from late intervention.
“Lives are at stake, and we must act now to ensure our disability support system functions for the best possible outcomes,” said Shamp.
The main source of contention concerns rollbacks to a program that paid families to be caregivers to their own children with special needs, the Parents as Paid Caregiver (PPCG) service model. Under the policy changes, children under 10 years old won’t qualify for state-backed attendant care. The changes also implement age limits on habilitation.
“We are urging DES and AHCCCS to pause these harmful changes and sit down with families and providers to develop an approach that works,” said Willoughby and Shamp in a joint statement. “Creating this tool is a huge responsibility, and we need people at the table who have real-life experiences and expertise to ensure the best possible outcomes for our people.”
DES and AHCCCS hosted two public forums earlier this month to review policy updates. Details, including the slideshow and a recording, of that meeting were posted online.
In a joint statement, DES and AHCCCS said the updates were made to address medical necessity and cost effectiveness concerns.
“AHCCCS revised its assessment tools and service policies in collaboration with Managed Care Organizations, providers and stakeholders. These updates are in response to conditions in the Centers for Medicare and Medicaid Services (CMS) waiver approval and to comply with House Bill 2945, which was signed into law in April 2025, and provided the supplemental funding for DDD. Initial proposed policy and procedural revisions were open for public comment from May 9, 2025 through July 9, 2025.
As a part of the policy changes, AHCCCS also updated the assessment tools used to determine eligibility for medically necessary Home and Community-Based Services (HCBS) for individuals under age 18 enrolled in Arizona Long Term Care System (ALTCS), which includes the Developmental Disabilities (DD) and the Elderly and Physically Disabled (EPD) programs. These tools now include standardized developmental milestone metrics to help case managers and support coordinators assess whether a child’s needs meet the definition of extraordinary care and should be further assessed for certain tasks/supports. This may include changes in the number of service hours children are approved to receive. The new assessment tool will take effect on October 1, 2025, and will be applied during each member’s regularly scheduled quarterly review thereafter.”
A spokeswoman for Governor Katie Hobbs said the policy changes were necessary to ensure the state funded appropriate treatments for children with special needs. Hobbs promised there would be alternatives beyond PPCG for families who relied on that service model.
“These changes were made to ensure services remain clinically appropriate for children while protecting the long-term viability of critical programs,” said Hobbs press secretary Liliana Soto. “We also recognize the need for additional support beyond these assessed services and our office, in collaboration with AHCCCS and DES, is actively exploring solutions to provide connections for families navigating these transitions.”
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
by Matthew Holloway | Jul 13, 2025 | News
By Matthew Holloway |
Arizona’s Democrat Governor Katie Hobbs is facing a new round of severe criticism and wide condemnation. On July 9th, reports surfaced that Hobbs nominated her Democrat ally and failed District 17 legislative candidate Dana Allmond for a role in the Department of Veterans’ Services. Hobbs then pulled back the nomination and appointed Allmond to a newly created post with a $170,000 annual salary and a $114,000 annual contract for her assistant, Marcus Trombetta.
Arizona Senator Jake Hoffman (R-LD15) released a scathing statement posted to X on Wednesday writing, “Katie Hobbs nominated fellow Dem politician, Dana Allmond, for a cushy gov’t job. Then Katie DEMOTED her. Then Katie invented a job that’s never existed before for her. Then Katie paid her & her asst. nearly $600,000 of YOUR money!
“FULL STATEMENT: Katie Hobbs’ jaw-dropping nearly $600,000 handout of taxpayer money to a former Democrat politician and her assistant for newly invented jobs reeks of corruption.
“It’s sickening that Hobbs continues to treat Arizona’s government like her personal friends-and-family slush fund, doling out lavish six-figure salaries to political cronies.
“With Hobbs it’s clear, when she’s not entangled in pay-to-play schemes, she’s plundering Arizonans’ hard-earned dollars as if they’re her own personal piggy bank.”
Hoffman’s statement aligns well with reporting from the Arizona Capitol Times, which was confirmed by the Department of Economic Security. Per the Times, after her replacement as nominee for head of the Department of Veterans’ Services with John F. Scott II in April, Hobbs reportedly created the role of “senior executive consultant” for Allmond and promptly renewed her state contract.
Hobbs’ press aide Christian Slater told the outlet that Allmond is part of the DES “senior engagement team” in her new role and will be tasked with helping Arizona veterans access DES services. The move follows a 5% reduction in force at the Department of Economic Security, owing to the Governor’s failure to adjust the budget for reduced federal grants.
According to the Times, the terminated staffers at DES received their 2 ½ weeks’ notice just days after Allmond’s new contract became effective.
In a statement, Slater dismissed any connection and attempted to shift blame to the federal budget cuts driven by the Trump administration, ignoring that Hobbs and Democrat legislators had ample opportunity to work with GOP leaders to account for the difference.
“The workforce reduction at DES was an unfortunate consequence of the Trump administration’s reckless cuts that endanger DES’s work to combat fraud and efficiently deliver the critical services Arizonans rely on,” Slater claimed.
As previously reported by AZ Free News, Republican legislative leaders have questioned the apparent duplication of duties between the new DES “senior executive consultant,” and the Department of Veterans’ Services existing responsibilities.
Earlier in the year, Sen. Hoffman challenged DES Director Michael Wisehart before the Committee on Director Nominations. Per the Times, Wisehart didn’t refute that the role duplicates the responsibilities but answered that Allmond would help connect veterans with needed services, noting that DES also has programs that work with veterans.
A blistering article issued by the Arizona Free Enterprise Club, dating back to March 2024, has also shown that the new role for Allmond is only the most recent in a series of controversial new jobs created by Governor Hobbs. According to the article, at that time, Hobbs had created forty new roles including: six people working in the Office of Resiliency, four new employees in the Office of Tribal Relations, and three new in-house attorneys.
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 | Apr 5, 2025 | News
By Matthew Holloway |
This week, Governor Katie Hobbs issued a directive to all of her agency directors not to appear or testify at the inaugural hearing of the Arizona House Ad Hoc Committee on Executive Budget Mismanagement. Hobbs issued the directive 15 minutes prior to the start of the meeting. Democrats on the committee also refused to attend.
According to Committee Chairman Matt Gress (R-LD4), agency leaders from AHCCCS and the Department of Economic Security (DES), who share responsibility for the $122 million shortfall in Arizona’s Developmental Disabilities (DD) program, were scheduled to appear before the committee and answer for the program’s massive cost overruns that have threatened to disrupt critical services for Arizona families.
Gress said in a statement, “The Governor pulled her directors because she can’t defend the damage she’s done. If she had a plan, she would have sent her team to explain it. Instead, she’s hiding behind a press release while Arizona families face the consequences of her financial mismanagement. This Legislature asked for answers. The Governor responded with a tantrum. What she calls a ‘political stunt’ is actually legislative oversight—a constitutional duty that we will carry out whether she likes it or not.”
In the press release referred to by Gress, Hobbs and Democratic House Assistant Leader Nancy Gutierrez claimed the “Ad Hoc committee is a waste of time and a shameless political stunt,” and derided it as a “sham,” demanding instead that the legislature issue a supplemental budget bill to cover the shortfall.
Despite the conspicuous absence of Democrat members of the committee, the hearing went forward with the Republican members reviewing budgetary data, testimony from the Joint Legislative Budget committee, and expert testimony from former Idaho House Majority Leader Megan Blanksma, whose state suffered what Gress’ office called “a near-identical funding crisis.”
The committee issued its formally adopted findings, naming the Hobbs administration accountable for:
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“Without approval from the Legislature or specific appropriation authority, dramatically expanded its Developmental Disability program by making permanent a temporary, COVID-era program to pay parents to provide attendant and habilitative care to their minor children.”
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“The programmatic and scope changes of the DD program adopted by AHCCCS and implemented by DES led to dramatic unfunded liabilities, threatening the entire DD program and leaving the state with at least a $122 million budget deficit in FY2025.”
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“Through its Medicaid agency at AHCCCS, put the Department of Economic Security under legal threat with a November 2023 Corrective Action Plan, which aimed to grant parents 2 additional hours for care under the PPCG program, which was at odds with the ’extraordinary care’ standards and dramatically expanded costs to the state.”
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“AHCCCS delayed implementation of guardrails on the PPCG program by over 18 months, despite its original plan submitted to the Federal CMS in August 2023, causing considerable cost overruns and unrealistic expectations for families.”
The committee further found that “The critical nature of the Developmental Disabilities program and its pending exhaustion of funds requires that the Executive identify available federal funds, and the Legislature will work to identify transfers of other available funds, in the month of April, to continue the program.”
It also added that “the State Legislature must receive annual reports from the executive administration identifying all federal funds received and an exit plan should those federal funds be eliminated.”
In a statement following the hearing, Gress addressed the Democrats’ absence and Hobbs’ order for her agency directors not to attend.
“Fifteen minutes before the committee hearing began, I received a letter from Governor Hobbs criticizing legislative intent on providing oversight and learning exactly what happened. Now this is a pattern and a practice of Governor Hobbs. She fails to even acknowledge who’s responsible for this problem. Instead, it’s deflection and trying to scare families who rely on the DD services for their loved ones.
“We will not be deterred. Her unhinged, chaotic letter falls far below the standard that Arizonans expect of their leaders. We will continue to find the facts. We will be the adults in the room to provide a supplemental appropriation, and we will ensure that there are guardrails put in place so that this never happens again.
“Let me be very clear, we will not pass a financially irresponsible supplemental. It will include the reforms necessary to protect families who rely on DD for their loved ones. We demand accountability and transparency, and it’s going to happen soon.”
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 | Mar 26, 2025 | News
By Jonathan Eberle |
The Arizona State Senate is considering a bill that would prohibit Supplemental Nutrition Assistance Program (SNAP) recipients from using their benefits to purchase soda. House Bill 2165 (H.B. 2165) directs the state’s Department of Economic Security (DES) to seek a waiver from the U.S. Department of Agriculture (USDA) to implement the restriction.
The measure, which has already passed in the Arizona House of Representatives by a vote of 32-27-1, would require the DES Director to request the waiver. If granted, the purchase of carbonated beverages containing more than one gram of added sugar or artificial sweeteners would be banned for SNAP recipients. If the waiver is denied, the bill mandates that Arizona reapply annually until it is approved.
SNAP, formerly known as the Food Stamp Program, is a federally funded initiative that assists low-income households in purchasing groceries. The program currently allows for the purchase of a variety of food products, including bread, meat, dairy, and infant formula, but excludes items such as alcohol, tobacco, vitamins, and non-food goods.
Supporters of the bill argue that it promotes healthier choices for low-income families and ensures that taxpayer-funded benefits are used for nutritious food. Critics, however, contend that the restriction unfairly targets SNAP recipients and could create logistical challenges in enforcing the ban.
The bill was assigned to the Senate’s Health and Human Services (HHS) Committee for further consideration. If passed and signed into law, the restriction would take effect following the USDA’s approval of the waiver.
The financial impact of the legislation is expected to be minimal, as no additional costs to the state’s General Fund have been identified. The debate over the bill is expected to continue as lawmakers weigh the balance between nutritional policy and personal choice.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
