Battle Brewing Over Budget Between Hobbs And Legislature

Battle Brewing Over Budget Between Hobbs And Legislature

By Daniel Stefanski |

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.”

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.”

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.”

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.

Gov. Hobbs Repeats False Claims About ESA Program In State Of The State Address

Gov. Hobbs Repeats False Claims About ESA Program In State Of The State Address

By Corinne Murdock |

Gov. Katie Hobbs is claiming that the state’s school choice program is rife with abuse and in need of serious reform. 

In her State of the State address on Monday, Hobbs claimed the Empowerment Scholarship Account (ESA) program lacks accountability and transparency, alluding to media reports of questionable and controversial expenditures — some of which were debunked previously.

“We have seen a steady stream of news coverage around unacceptable and sometimes downright outrageous use of taxpayer money under this program, including water park admissions, ski passes, and luxury car driving lessons,” said Hobbs. 

The Arizona Department of Education (ADE) issues quarterly reports on the ESA program; the latest was released several days prior to Christmas. These reports include the program award amount received by students, as well as the number of orders and reimbursements approved and rejected.

ADE also provides lists of allowable and disallowable expenses, both updated last March. The ADE debunked one of Hobbs’ claims of “outrageous” expenditures last summer. In a statement, ADE clarified that it rejects expenditures for water park admissions. 

An ABC15 review of 2022-23 ESA program expenditures found that ADE issued nearly 80 approvals for driving lessons and over 100 approvals for ski passes. However, that report didn’t distinguish whether those expenditures were made in 2022 under former ADE Superintendent of Public Instruction (SPI) Kathy Hoffman, or in 2023 under current SPI Tom Horne. The difference matters because, as Horne stated in November, similar “outlandish purchases” occurred under Hoffman, not him. 

“Approvals like those came during the prior superintendent’s administration led by a friend of the leader of Save Our Schools, and one of my first acts in office was to put an end to it,” said Horne.

As reported by AZ Free News last January, Hoffman’s administration of the ESA program was described as neglectful and improper. In addition to severe understaffing and hundreds of thousands of unfulfilled expense requests, the Horne administration discovered questionable expense approvals such as espresso machines.

Hoffman’s administration of the ESA program has been something that Horne has pointed out repeatedly in refuting claims of improper ESA program expenditures.

“The frivolous ESA spending approvals occurred under the administration of the Governor’s friend, Kathy Hoffman,” said Horne in another statement last month. 

As of Monday, over 73,200 students were in the ESA program. 

Hobbs’ criticism of the ESA program comes days after she announced a plan to effectively dismantle the ESA program. Monday’s speech made mention of several aspects of this proposed plan: fingerprint background checks for private school educators, a new audit authority for the auditor general specific to monitoring ESA expenditures, and requirement of attendance at a public school for at least 100 days to qualify for the program.  

The governor’s plan also aims to require private schools to accommodate Individualized Learning Plans and Section 504 Plans, prohibit private schools from increasing tuition costs at a rate higher than inflation, require private schools to meet certain education requirements, and require ADE to disclose which parental and student rights are waived upon entrance into the ESA program as well as graduation and chronic absenteeism rates. 

At least one of Hobbs’ proposals addresses a practice already in place, according to Horne: accountability in the form of manual reviews of purchases over $500 and rejection of non-academic expenditures. 

Horne explained in a statement that his staff reviews all expense requests, regardless of amount, leading to a rejection of over 12,000 purchase order requests and the suspension of nearly 2,200 accounts totaling $21 million due to public school enrollment.

“My job is to administer the ESA program in line with state law, and if changes are made, the Department of Education will follow them,” said Horne. “My office already reviews all expense requests regardless of amount, unlike the previous superintendent who approved many frivolous requests.”

That $500 threshold appears to be related to another false expenditure-related claim echoed by Hobbs from the activist group, Save Our Schools Arizona. The activist group implied in a viral post picked up by various media outlets that ADE approved an expenditure of over $500 for a Lego set.

“Contrary to a falsified document tweeted by Save Our Schools, no ESA parent has been reimbursed $500 to buy Legos,” said Horne. “To be clear, district, charter and ESA students are allowed to use Legos. The issue here is a pattern of lying. Save Our Schools admitted they fabricated a document to make it look like a parent made a $500 purchase when she did not. By doing so they have misled both the Governor and a prominent newspaper columnist, both of whom have retweeted this lie.”

Although the claim was debunked, Hobbs didn’t retract her viral accusation of ESA program mismanagement. 

“Your taxpayer dollars are being used to buy $500 Lego sets because partisan politicians refuse to place limits on school vouchers,” said Hobbs.

Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.

Arizona Senate Sues Hobbs Over Her Refusal To Nominate Agency Directors

Arizona Senate Sues Hobbs Over Her Refusal To Nominate Agency Directors

By Daniel Stefanski |

On Tuesday night, it was revealed that the Arizona State Senate had filed a lawsuit in the Maricopa County Superior Court against Governor Katie Hobbs over her refusal “to nominate agency directors, bypassing the Senate’s advice and consent processes.”

The lawsuit asks the Court to declare that the Governor has violated state law and to require her to nominate directors to any of the agencies missing Senate-confirmed heads.

This legal action from Senate Republicans, led by President Warren Petersen, promises to reignite a fiery political saga just weeks from the start of business for the Arizona Legislature.

Senator Wendy Rogers, who appeared to break the news of the lawsuit on “X,” celebrated the filing, highlighting her pride that her Senate Republican colleagues are “committed to upholding the law to protect Arizonans’ liberty.”

In September, Hobbs sent a letter to Petersen, informing him that she would “withdraw all director nominations that remain pending before the Senate and pursue other lawful avenues of ensuring State government can continue to function for Arizonans.” The governor blamed Senate Republicans for not “fulfilling (their) statutory obligations in good faith.”

After receiving Hobbs’ correspondence, Petersen stated that “This move by the Executive Branch showcases another prime example of an elected official who believes they’re already above the law and will go to extreme measures to bypass the requirements of the law when they don’t get their way.” Petersen also warned of the consequences of Hobbs’ unprecedented actions, saying, “Without directors fulfilling these obligations, the legality of every decision made by these state agencies is dubious, and litigation against the state would surely prevail.”

It didn’t take long for Petersen’s warning to come to fruition. One day after his statement, Arizona State Treasurer Kimberly Yee held a Board of Investment Meeting and refused to recognize “employees from the Department of Administration or the Department of Insurance and Financial Institutions as legally participating members.”

Senator Jake Hoffman, the chairman of the committee that was tasked with vetting Hobbs’ nominees, reacted to his chamber’s breaking lawsuit against the governor, telling AZ Free News that the state’s chief executive has “made it abundantly clear to voters that Democrats care more about playing petulant political games and throwing temper tantrums than actually governing.” Hoffman contrasted Hobbs’ efforts with those of his colleagues, noting, “Republicans are committed to creating a government that works for every Arizonan.”

On February 2, Petersen announced the formation of the Senate Committee on Director Nominations, tasking this panel “with gathering information and evaluating qualifications on the governor’s executive appointments in order to recommend a course of action for the Senate to take on each individual.” The Senate President appointed five members to serve on the committee – three Republicans and two Democrats.

Over the next several months, the committee held multiple hearings for Hobbs’ nominees. Although Hobbs was upset that not everyone of her nominees received a passing grade, Petersen reminded observers that the process chosen by the Senate had “approved 70 percent of her nominees,” adding that “we are not a rubber stamp.”

The lawsuit follows increased efforts from Senate Republicans to set the agenda for 2024 in a critical election year for both political parties. The Senate Republicans recently released their Majority Plan, laying out their caucus’s priorities on eleven major categories. Republicans in both chambers also held a press conference this month to announce a plan to “ease the financial burden hitting hardworking Arizonans when they fill their gas tanks…by addressing fuel blend requirements in Arizona.”

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

Hobbs’ Elections Task Force Makes Recommendations Ahead Of 2024

Hobbs’ Elections Task Force Makes Recommendations Ahead Of 2024

By Daniel Stefanski |

The Arizona Governor’s Office is taking action to provide more resources for elections ahead of a crucial year of political contests.

Last week, Governor Katie Hobbs announced that she would be earmarking “$2.3 million in American Rescue Plan (ARPA) funding to support free, fair and secure elections.” The governor also revealed the existence of three new executive orders “to authorize paid civic duty leave for state employees to serve as poll workers, make state buildings available as polling locations, and require state agencies to provide voter registration information and assistance to the Arizona citizens they serve.”

In a statement, Hobbs said, “As Secretary of State I oversaw the most secure elections in Arizona history, but I know we must continue to improve Arizona’s elections ahead of 2024. Election officials and voters are facing new challenges when it comes to administering elections and participating in our democracy. I am thrilled to immediately address some of the problems identified by the Bipartisan Elections Task Force to ensure Arizona voters can make their voices heard.”

The flurry of actions from Hobbs follows the completion of a report from the Governor’s Bipartisan Elections Task Force, which was issued a day earlier, on November 1. The Task Force, established on January 6, focused on five main topics under the umbrella of the Arizona elections system, which were Election Administration, Voter Registration, Early Voting, Election Day and Post-election Procedures, and Election Equipment and Security.

In the final report, the Task Force unveiled proposals under each of the topics. For Election Administration, proposals included a Poll Worker Communication Platform, Incentives to Improve Poll Worker Recruitment, Annual Election Officer Certification Trainings, Election Fellowship Program, and Comprehensive Website for Voter Information. For Voter Registration, proposals included Provisional Ballot Form as Voter Registration Form, Cross-Country Voter Registration, Voting Rights Restoration, and AVID (Access Voter Information Database) Funding. For Early Voting, proposals included Disability Resource Liaison, Emergency Voting to Final Weekend Voting, and Ballot Return Interference. For Election Day and After, proposals included Ensuring Timely Recounts and Reconciliation Best Practices Guidelines. And for Election Equipment and Security, proposals included Election Security Advancements and Election Worker Code of Conduct.

The Task Force concluded its report by writing, “We can, and should, continue to refine our election system to ensure voters have access to the polls and that our election officials – the guardians of our democracy – have the resources to do their jobs well. The Task Force’s proposals are motivated by a deep commitment to these goals, and to the overarching goal of protecting democracy in our State.”

Members of the Task Force were Ken Bennett, State Senator District 1; Michelle Burchill, Yavapai County Recorder; Gabriella Cázares-Kelly, Pima County Recorder; Christina Estes-Werther, Attorney and Former Arizona Elections Director; Patty Ferguson-Bohnee, Attorney and Director of the Sandra Day O’Connor College of Law Indian Legal Clinic; Adrian Fontes, Arizona Secretary of State; Renaldo Fowler, Arizona Center for Disability Law, Senior Staff Advocate; Alex Gulotta, All Voting is Local, Arizona State Director; Don Henninger, The Carter Center, Representative; Katie Hobbs, Arizona Governor (Chair); Scott Jarrett, Maricopa County Elections Director; Ben Lane, City of Scottsdale City Clerk; Ken Matta, Election Security Expert; Michael Moore, Chief Information Security Officer; Brad Nelson, Former Pima County Elections Director; Helen Purcell, Former Maricopa County Recorder (Co-Chair); Alma Schultz, Santa Cruz County Elections Director; and Laura Terech, State Representative District 4.

Helen Purcell, the Task Force’s Co-Chair, weighed in on the accomplishments of her group, saying, “This Task Force is made up of talented, bipartisan experts who have diverse on-the-ground experience with Arizona’s elections. It was rewarding to see them come together week after week to brainstorm where additional support is needed, collaborate on potential solutions, and develop the proposals in the final report. Thank you to Governor Hobbs for bringing us together with a unified goal and for her unwavering commitment to protecting democracy in our State.”

Arizona Secretary of State Adrian Fontes added, “I’d like to thank Governor Hobbs, Recorder Purcell, and the entire Task Force for prioritizing safe, secure, and accurate elections. I must also mention all our staff for being generous with their expertise and insight. The work of the Task Force, the Governor’s Executive Orders and the much-needed $2 million in election support will be critical in building towards smooth and successful elections in 2024.”

Earlier this year, the Chair of the Arizona House Municipal Oversight & Elections Committee, Representative Jacqueline Parker, vowed, on behalf of her panel, to “swiftly reject any election-related recommendations of this biased, corrupt, & secretive task force.”

By signing the executive orders and designating the ARPA funds for assignment, Hobbs appears to be bypassing any cooperation, as of now, with the Legislature to improve the state’s elections systems.

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

Sen. Kerr Resigns From Hobbs’ Water Council

Sen. Kerr Resigns From Hobbs’ Water Council

By Daniel Stefanski |

More schisms have appeared between the state’s Democrat Chief Executive and Republican legislative leadership.

Earlier this month, Senate Majority Whip Sine Kerr, the Chair of the chamber’s Committee on Natural Resources, Energy & Water, announced her resignation from the Governor’s Water Council. Senator Kerr sent a letter to Governor Hobbs, which outlined the rationale behind her thinking.

In a subsequent statement, Kerr explained her reasoning for the decision, writing, “The Governor’s Water Policy Council is nothing more than a forum to rubberstamp the progressive environmental goals of special interest groups. Its ultimate objective has nothing to do with serving the best interests of our Arizona citizens and stakeholders who will be greatly impacted by any newly adopted groundwater management policy. The radical agenda being pushed has the potential to damage our economy and kill the livelihoods of our farmers and ranchers. Sadly, this community is not being provided with fair representation at the table.”

Kerr vowed to keep up her efforts to effect legislative change over the state’s water policies in spite of her perceptions of Hobbs’ current track with those endeavors. She said, “I’m incredibly disappointed in the Governor’s approach that seeks to alienate the voices of Arizona’s multi-generational land and water stewards. This extreme departure from Arizona’s historical, collaborative approach to water management favors her own political gains over sound policymaking. Had her approach been taken over the last forty years, we would not have the tools we have today under the Groundwater Management Act, or the major victories for water augmentation, conservation, reuse, recharge, and irrigation efficiency we have adopted at the Legislature in recent years. I plan to continue my work at the Legislature, in collaboration with the agriculture community, to adopt solutions on basin management issues that will benefit all Arizonans and help with continued efforts in security our water future.”

On January 9, Governor Hobbs created the Water Policy Council “to analyze and recommend updates, revisions and additions to the 1980 Arizona Groundwater Management Act (GMA) and related water legislation, which shall include without limitation, analysis and recommendations for groundwater management outside current Active Management Areas.”

On May 4, Hobbs rolled out the members of the Council, saying, “I’m committed to passing water policies that meet this moment and tackle the challenges we face. I know that with our new Water Policy Council, we will develop the path forward and ensure our state’s natural resources are available for generations of Arizonans to come.”

The Republican Senator wasn’t the only member to leave the Council. The Arizona Farm Bureau, on October 13, also announced that it would be withdrawing from the Governor’s panel, citing a “disappointment in what has been the works of the Rural Groundwater Committee of the Council. Stefanie Smallhouse, the President of the Bureau said, “After months of deliberation, the committee’s direction, and thereby the outcome of the greater Council, appears to be pre-determined as essentially a cross between the seriously flawed attempts of the past and an AMA. At best, our priorities have been given very little committee consideration or, at worst, have been totally dismissed. This is unacceptable to our members, farm and ranch families who will undoubtedly be impacted directly and immediately by any rural groundwater regulatory framework.”

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