by AZ Free Enterprise Club | May 8, 2026 | Opinion
By the Arizona Free Enterprise Club |
Less than an hour had passed from when Republicans delivered a budget to Katie Hobbs desk yesterday to when she stamped it with a ‘veto.’ No one is surprised, since from the moment she walked out of negotiations six weeks ago and “challenged” Republicans to show their budget hand, she had already made up her mind about vetoing it. She just needed them to do all the work first.
Hobbs has grown far too comfortable being the only one setting conditions on budget negotiations, considering every condition she has set has been unreasonable, unworkable, or erratic.
She tried to anchor the entire budget to an unprecedented raid of the state land trust, speculative revenue requiring voter approval that could never functionally bridge her reckless spending. She wanted to deliver only half the conformity relief Arizona taxpayers are entitled to under the One Big Beautiful Bill, in direct contradiction to tax forms her own Department of Revenue already issued, creating tax filing chaos. She tried to “trade” not forcing that tax hike on Arizonans for kicking kids off the ESA program (insane). And when Republicans said no to all of it, she flipped the table and stormed off, openly admitting she was out of ideas, and demanding Republicans produce a budget on their own.
While the veto from Hobbs was largely expected, Hobbs’ explanation for her veto was such brazen hypocrisy that it raises the genuine question of whether she is being ironic or fails to see the numerous contradictions in her opposition to the GOP budget…
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by Staff Reporter | May 7, 2026 | News
By Staff Reporter |
Gov. Katie Hobbs’ overruled housing moratorium could leave taxpayers on the hook for more than $1 billion in compensation to builders.
The housing moratorium was a result of the Arizona Department of Water Resources’ (ADWR) indefinite suspension of developer certificates throughout the Valley based on new groundwater regulations imposed under Hobbs in 2024.
For decades, state law required developers to prove 100 years of assured water supply for their developments. Once Hobbs took office, ADWR imposed new regulations that expanded developers’ duty to prove assured water supply beyond their development into the surrounding water management area.
The Home Builders Association of Central Arizona (HBACA) sued ADWR over the regulations last January, represented by the Goldwater Institute. Last month, the Maricopa County Superior Court sided with HBACA and struck down the moratorium. Judge Scott Blaney found that ADWR violated Arizona law on the extent of its powers and on agency rulemaking.
ADWR plans to appeal the ruling.
A former ADWR director and one of the leading policymakers behind the legacy rule on assured water supply (the 1980 Groundwater Management Act) spoke out against the superior court ruling.
Kathleen Ferris, now an Arizona State University (ASU) senior research fellow with the Kyl Center for Water Policy, told KJZZ last month that ADWR was justified in its rulemaking because it had discovered that Phoenix-area groundwater was more interconnected than understood previously.
Whether that court ruling will stand on appeal or no, taxpayers will likely be on the hook for hundreds of millions — perhaps over a billion — in builder compensation claims filed under the Private Property Rights Protection Act, enacted under Proposition 207.
Prop 207 entitles property owners to just compensation for any land use laws’ impact on the use, division, sale, or possession of their property that reduces its fair market value.
One such Prop 207 claim is already underway.
Last September, developers Buckeye Tartesso and Buckeye Tartesso II filed a claim demanding over $320 million in compensation for lost value due to the ADWR rule. That figure, however, reflected only a low estimate which the developers felt they could accept as a settlement.
“[This figure] incorporates a number of conservative assumptions, and the [developers] expect that actual, proven damages would be significantly higher,” read the demand letter. “This demand is an offer of settlement, in the nature of a compromise, and the [developers] reserve the right to seek additional or different damages if litigation is necessary.”
ADWR prevented the developers from obtaining a certificate of assured water source for the Tartesso development in the city of Buckeye, which spanned over 12,800 acres. As a consequence, they were prohibited from subdividing or selling lots on that property.
The Goldwater Institute filed the claim on behalf of the developers.
Should all builders file similar claims, taxpayers could be on the hook for over $1 billion in compensation payments at a time when the state is already struggling with budget woes.
Gov. Hobbs inherited a budget surplus of over $2.5 billion from her predecessor, Republican governor Doug Ducey. After two years in office, the budget plunged to a $1.4 billion deficit: a near-180 on the state’s fiscal health.
The latest figures reflect a slightly better status, though still nowhere near in the black: a deficit of over $300 million, according to Rep. David Schweikert (R-AZ-06).
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by Matthew Holloway | May 6, 2026 | News
By Matthew Holloway |
Arizona Gov. Katie Hobbs vetoed the Republican-backed state budget proposal Tuesday, calling the plan “unbalanced and reckless,” while Republican gubernatorial candidate Andy Biggs sharply criticized the decision and accused Hobbs of blocking tax relief efforts.
In a statement issued by the Governor’s Office, Hobbs said the GOP proposal would “default on our debt obligations, endanger vulnerable children, slash critical public safety funding, and pay for tax breaks to billionaires, data centers, and special interests by kicking Arizonans off their healthcare and taking food off their tables.”
The Republican proposal, passed by the Legislature largely along party lines, included tax cuts tied to federal tax conformity measures, reductions to agency spending, and changes to several state programs. The proposal would have implemented major portions of federal tax cuts adopted in last year’s federal legislation and reduced spending across most state agencies.
Legislative Republicans said the proposal spent roughly $800 million less than Hobbs’ January budget proposal.
The veto follows weeks of tension between Hobbs and Republican legislative leadership over budget negotiations and education funding. On April 13, Hobbs announced she would veto nearly all legislation sent to her desk until Republican lawmakers produced a budget proposal and returned to negotiations.
Following Hobbs’ veto on Tuesday, Congressman Andy Biggs’ (R-AZ05) gubernatorial campaign circulated a statement accusing the governor of repeatedly rejecting tax relief measures.
“The Veto Queen is at it again,” a graphic released by the campaign stated. “Katie Hobbs has now vetoed over $1 billion in tax relief for Arizona workers, families, and small businesses for the 3rd time in 5 months as our state’s affordability crisis deepens.”
Biggs also said he had previously worked on multiple state budgets during his tenure as president of the Arizona Senate.
“As a former State Senate President, I’ve written multiple state budgets and worked with different governors to put forward structurally sound and responsible budgets that protect public safety and allow Arizonans to keep more of their money,” Biggs stated.
“It takes patience, leadership, and a commitment to good-faith work between the governor and the Legislature. Katie Hobbs has shown she has none of those attributes, which is why she keeps falling back on simply vetoing bills and budgets. Arizonans deserve a leader with a vision, not vetoes. In November, we’ll make that change.”
Arizona House Speaker Steve Montenegro (R-LD29) also criticized Hobbs following the veto, accusing the governor of pursuing higher spending priorities.
“Once again Gov. Hobbs creates fiscal chaos for Arizona as she fights for her California-style budget,” Montenegro wrote in a post on X. “This budget focuses on what matters most to Arizona families, higher take-home pay, lower costs.”
“What we will not do is allow this governor to raise taxes and spend more for her programs on the backs of every family in Arizona,” Montenegro added.
Despite the veto, Hobbs’ office indicated negotiations could resume. According to KJZZ, the governor’s office said Hobbs had reached out to legislative leadership seeking additional budget meetings this week.
The Legislature adjourned after passing the proposal, with lawmakers expected to return in June unless leadership calls them back sooner. However, Arizona Senate President Warren Petersen (R-LD14) pushed back on claims that Republican lawmakers were taking an extended break following passage of the budget proposal.
Responding to a social media post by journalist Craig Harris stating that “The GOP-controlled Arizona Legislature is taking a one-month paid vacation,” Petersen wrote on X, “This is false, the Senate will be back on Monday and many members, myself included will be there every day this week.”
“The governor placed a moratorium on bills and we delivered a budget. There is no floor work to do,” Petersen added.
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 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 3, 2026 | News
By Matthew Holloway |
Governor Katie Hobbs was among several Democratic officials tied to a private, high-dollar fundraiser in Los Angeles in April, according to reports and an event invitation circulated on social media. The event included multiple figures viewed as potential 2028 presidential contenders.
An invitation shared on X by political consultant Drew Sexton showed Hobbs listed among multiple Democratic governors scheduled to appear at a Democratic Governors Association (DGA) reception in Los Angeles on April 23. The invitation also listed California Governor Gavin Newsom, Michigan Governor Gretchen Whitmer, Kentucky Governor Andy Beshear, Massachusetts Governor Maura Healey, Maryland Governor Wes Moore, Minnesota Governor Tim Walz, Kansas Governor Laura Kelly, and North Carolina Governor Josh Stein among the participants.
The event was hosted by Ellen Bronfman Hauptman and Andrew Hauptman, according to the invitation, and included contribution levels listed at $100,000 for hosts and $45,000 for “friends.” The location was listed as Los Angeles, with the specific address provided to attendees prior to the event.
The Los Angeles Times also identified Hobbs among the attendees at the gathering, describing it as a fundraiser that brought together several prominent Democratic figures considered potential 2028 presidential candidates.
A separate report from the New York Post described the event as a private gathering of major Democratic donors hosted at the home of a liquor heiress, where multiple potential presidential contenders met with contributors.
The invitation describes the gathering as a DGA reception, a type of event commonly used to raise funds and support Democratic gubernatorial candidates and initiatives. Participation by sitting governors and national political figures at such events is a routine part of party fundraising and political networking.
The fundraiser comes as Democratic officials across the country begin early-stage positioning ahead of the 2028 presidential election cycle, and amidst a tense Arizona gubernatorial election.
In his post to X, Sexton was critical of Hobbs’ decision to join Govs. Newsom and Walz at the California fundraiser, writing, “She loves taking California dollars, but she won’t do anything about gas prices for Arizonans.”
Details on the total amount raised, the full list of attendees, and how event funds will be allocated were not publicly disclosed.
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.
