Hobbs Urged By Arizona Superintendent To Sign Tax Credit Bill To Fund Schools

Hobbs Urged By Arizona Superintendent To Sign Tax Credit Bill To Fund Schools

By Staff Reporter |

The Arizona superintendent of schools is urging Gov. Katie Hobbs to lift a financial burden for schools.

Hobbs has yet to decide on a bill, SB 1142, allowing Arizona schools to participate in a new federal school tax credit opportunity. Superintendent Tom Horne says the governor needs to sign the bill, or else Arizona schools will lose out on critical funding. 

The pending legislation wouldn’t come at a cost to the state, and it could potentially provide up to $6 billion more to public, charter, and private schools.

“Any school could establish such a scholarship organization to accept contributions and bring more money to the classroom,” said Horne. “It does not cost the state any money and would increase funding for education.”

Horne mentioned that another prominent Democratic governor has backed this federal program.

“This bill benefits students in public district schools, charters, and every other school setting,” said Horne. “[Gov. Hobbs] should join fellow Democrat Governor Jared Polis of Colorado in supporting this program.”

Unlike Hobbs, the Colorado governor has expressed support for school choice. One other Democratic governor, Josh Stein of North Carolina, has opted into the program. 

The Democratic governors of Kansas, Kentucky, North Carolina, and Wisconsin all vetoed opting into the program. 

Gov. Hobbs vetoed similar legislation back in January (SB 1106/HB 2153).

State Sen. Shawnna Bolick (R-LD2) sponsored the bill. It passed both chambers without support from any Democratic lawmakers, and was sent to Gov. Hobbs on Wednesday. 

Arizona House Democratic lawmakers said they opposed SB 1142 because it doesn’t establish enough oversight of the distribution of funds. Some characterized it as a wrongful diversion of public funds from public schools, insisting it would ultimately impact the state general fund. However, this program derives its funds from a federal tax credit. 

Last year, Congress included the federal school tax credit program within the FY2025 reconciliation act (the “One Big Beautiful Bill Act”). The program launches January 1, 2027. 

The federal legislation allows taxpayers to donate up to $1,700 annually to state-recognized Scholarship Granting Organizations (SGOs) that issue grants to cover eligible school expenses for certain students like books, supplies, tutoring, special needs services, computers, internet access, tuition, fees, room and board, uniforms, and transportation. 

With that donation potential, Arizona schools could see up to $6 billion in extra funding. (The Arizona Department of Revenue reported over 3.5 million individual income tax returns in 2023).

Only students whose family income falls below 300 percent of their area median income would qualify for SGO grants.

The federal legislation requires SGOs to be 501(c)(3) nonprofits, provide scholarships to 10 or more students who don’t attend the same school, spend at least 90 percent of revenue on qualifying scholarships, and prioritize scholarships first for students who have received scholarships in previous years and then for siblings of such students.

Should Gov. Hobbs approve Arizona’s participation in the program, the Arizona Department of Revenue would administer the federal SGO credit and approve SGOs.

ADOR would submit a list of certified SGOs to the Secretary of the Treasury annually and post the list on the ADOR website. 

AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.

Arizona House Republicans Question Impact Of Hobbs Energy Plan On Housing And Costs

Arizona House Republicans Question Impact Of Hobbs Energy Plan On Housing And Costs

By Staff Reporter |

Arizona House Republicans are raising concerns about Governor Katie Hobbs’ recently released state energy plan, arguing it prioritizes solar development and government programs over housing availability and energy affordability.

In a press release, the Arizona House Republican Caucus said the plan advances policies that emphasize utility-scale solar projects, expanded renewable energy deployment, and the use of state-owned land for energy infrastructure.

The criticism follows the rollout of the governor’s broader energy strategy, which includes 31 recommendations developed by the Arizona Energy Promise Task Force to address rising energy demand, data center growth, and utility costs across the state.

According to House Republicans, the plan promotes solar development on state land, including areas near existing communities, rooftop solar installations on government buildings, and participation in virtual power plant programs.

Republican lawmakers cautioned that these proposals could affect the availability of land for residential development. Citing data from the Common Sense Institute, they noted that the Hobbs administration has “identified land closest to existing residential areas as ‘best’ for solar development,” adding that approximately 276,000 acres of state land within 10 miles of incorporated cities and towns could support up to 200,000 housing units.

House Majority Leader Michael Carbone (R-LD25) said the administration’s plan emphasizes renewable energy projects and related investments while raising concerns about impacts on housing supply and costs to taxpayers.

He explained in a statement, “Hobbs is calling this an all-of-the-above energy plan. It’s not. It’s a solar-heavy political plan that puts green industry insiders ahead of taxpayers, pushes utility-scale solar onto state land that could support badly needed housing, and says nothing about lowering gas prices for Arizona families. When Hobbs says ‘all of the above,’ what she means is more wind and solar.”

The governor’s office has described the energy plan as part of a broader effort to address affordability and reliability while bringing together stakeholders from utilities, industry, and government.

In separate announcements, the Hobbs administration has highlighted programs focused on lowering energy costs, including efficiency upgrades and rebate initiatives designed to reduce utility bills for Arizona households.

Carbone criticized Hobbs’ energy plan, stating, “You cannot claim to have an energy plan for Arizona while ignoring gasoline prices, fuel supply, and the infrastructure needed to keep this state moving. This report does not confront boutique fuel problems, does not address refinery or pipeline capacity, and does not even include the industry that supplies the fuel Arizona families and businesses rely on every day. That is not all of the above. That is selective politics dressed up as policy.”

He added, “Her report is long on politics and short on answers. It does not lower costs. It does not increase housing supply. It does not put taxpayers first. House Republicans are focused on affordability, reliability, and policies that serve Arizona families, not a narrow political agenda.”

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.

Hobbs’ New Arizona Board Of Regents Picks Devoted To DEI

Hobbs’ New Arizona Board Of Regents Picks Devoted To DEI

By Staff Reporter |

The Arizona Board of Regents (ABOR) grew by two new members last week. 

On Monday, Gov. Katie Hobbs appointed Michele Halyard, an oncologist specializing in breast cancer, and Steve Peru, formerly Coconino County’s manager.

“Dr. Michele Halyard is a leader in medical education who will provide expertise to the Board as the universities work to meet the state’s healthcare needs,” said Hobbs in an announcement. “Steve Peru is a longtime public servant with decades of experience who will bring his pragmatic leadership and focus on accountability to the Board. Our public university students deserve the best, and I’m confident Michele and Steve will help ensure the continued excellence of higher education in Arizona.”

Halyard’s past and present accomplishments included in Hobbs’ announcement referenced a fellowship with the American Society for Radiation Oncology, professorship of radiation oncology, vice deanship of the Mayo Clinic Alix School of Medicine, board membership with the Arizona Community Foundation, and membership with the Arizona Bioscience Roadmap Steering Committee. 

One thing not mentioned in Hobbs’ announcement was Halyard’s career-long DEI goals on reforming health care with health equity. 

Halyard has spent her 40 years in medicine advocating for affirmative action and health equity in medicine, according to Mayo Clinic profiles on the doctor published in 2023 and 2024.

Halyard expressed her belief in the existence of structural racism in medicine, and its disparate impacts on patient suffering and mortality. 

“I didn’t see a lot of people of color at the clinic either working or as patients, and I really thought what a shame that was because of the preeminence of healthcare that we deliver,” said Halyard. “People who, perhaps, feel shut out from the healthcare system, people who experience structural racism that prevents them from getting in for the best care, that really results in excess death, excess suffering among populations of people.” 

It was under Halyard that Mayo Clinic initiated “antiracism efforts” by using affirmative action in recruiting.

Halyard’s husband is Phoenix City Councilman Kevin Robinson, a Democrat and former Phoenix Police Department assistant chief. 

Peru’s historic dedication to DEI initiatives wasn’t mentioned in Hobbs’ press release, either. 

Shortly after joining Coconino County as their manager, Peru took on a years-long effort by the county to recruit an individual for a DEI directorship position.

In the weeks following Trump’s inauguration last year, Peru posted a comment agreeing with another colleague’s LinkedIn post advocating for DEI in K-12 in the wake of the new administration’s policies. 

Prior to joining Coconino County, Peru was the chief development and government relations officer at Coconino County Community College and former CEO and president of United Way of Northern Arizona. 

Last September Hobbs appointed Jimmy McCain, the youngest son of John McCain, to ABOR. McCain’s appointment stirred controversy, not only for his conflict with Arizona legislative leaders and President Donald Trump, but with his role at a company that was a key sponsor of Hobbs’ inaugural committee. 

Hobbs has also appointed Lee Stein, former assistant U.S. attorney and special assistant attorney general within the Arizona Attorney General’s Office.

The governor’s two picks for student regents have backgrounds in gun control advocacy. Their contributions to ABOR include expanding time and resources for students’ mental health. 

AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.

Arizona Repeals César Chávez Day In Bipartisan Measure

Arizona Repeals César Chávez Day In Bipartisan Measure

By Matthew Holloway |

Arizona Governor Katie Hobbs has signed a bipartisan emergency measure to repeal the state law recognizing César Chávez Day, following the legislature’s action on Monday.

House Bill 2072, sponsored by Rep. Lisa Fink (R-LD27), removes statutory recognition of the March 31 holiday honoring the late union leader following New York Times reporting on allegations that he sexually abused women and minors during his tenure.

The bill passed the Arizona House with a 48-8 vote and cleared the Arizona Senate with a 29-1 vote, with State Sen. Sally Ann Gonzales (D-LD20) casting the sole dissenting vote.

“Once these reports came to light, there was no excuse for leaving this honor in Arizona law,” Fink said. “The women and children Chavez harmed should not have to watch the state continue honoring his name. Repealing this law is the proper response. It respects the victims he left behind and removes a state honor that should not remain in place.”

The legislation advanced following recent reporting on allegations involving Chávez during his tenure as president of the United Farm Workers.

“Arizona law should not honor a man tied to sexual abuse against children and violence against women,” House Speaker Steve Montenegro (R-LD29) said in a statement. “The House acted today because victims deserve better, the truth cannot be ignored, and state honors carry meaning.”

Montenegro urged Hobbs to sign the bill, stressing bipartisan support in both chambers of the legislature.

Hobbs said in a statement on Wednesday that she is “deeply troubled by the recent revelations about César Chávez.”

“After learning the troubling news, I decided not to recognize César Chávez Day this year and have signed legislation to repeal the observance of March 31st as César Chávez Day. While I know signing this bill won’t erase the pain, my thoughts are with the victims and everyone affected. I’m working with community leaders to find meaningful ways to honor and celebrate our farmworker community and their continued contributions to the state of Arizona. “

Addressing the Arizona farmworkers Chávez once represented, Hobbs said, “I am incredibly grateful for our hardworking farmworkers. Their resilience is evident in the lettuce fields of Yuma and the orange-picking farms of Mesa. Arizona’s farmworkers are the backbone of our state’s economy. I remain committed to supporting them and ensuring their contributions are recognized with dignity and respect.”

A March 2026 report by The New York Times detailed allegations from multiple women who said Chávez engaged in sexual misconduct, including claims that he “used his power within the organization to exploit women and girls.”

House Republicans stated in a release that “Arizonans should not be forced to celebrate a figure whose legacy is now under serious question,” adding that the measure reflects “a responsibility to ensure state-recognized holidays align with values supported by the public.”

The emergency legislation, an amended version of HB 2072, repeals sections of the Arizona Revised Statutes that establish the holiday and includes an emergency clause that makes the repeal effective immediately upon the governor’s signature. The bill text specifies that it “repeals section 1-301, Arizona Revised Statutes,” which designates César Chávez Day as a state holiday.

In a March 30 letter to Governor Hobbs, Gonzales urged a veto of the measure, arguing the emergency clause is unconstitutional.

“House Bill 2072 is not an emergency, and it lacks the constitutionally required section that explains why it is necessary to preserve the public peace, health, or safety,” Gonzales wrote. She added that the bill “denies the people of Arizona their constitutionally protected right to direct democracy via referendum.”

Gonzales also called on state leaders to pursue recognition of farmworkers’ contributions through an alternative designation, writing that lawmakers should consider “renaming Dr. Cesar Estrada Chavez Day” rather than eliminating it entirely.

Despite those objections, the bill received the supermajority required for an emergency clause.

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.

AZFEC: Chaos Katie Runs Away From Budget Negotiations…Now What?

AZFEC: Chaos Katie Runs Away From Budget Negotiations…Now What?

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…

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