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.

Hobbs’ State Of The State Draws Quick GOP Rebuttal

Hobbs’ State Of The State Draws Quick GOP Rebuttal

By Daniel Stefanski |

Arizona’s leading Republican lawmakers wasted no time in holding the state’s Democrat governor accountable on the first day of the Second Regular Session of the 56th Legislature.

On Monday, Arizona Governor Katie Hobbs delivered her second State of the State address, and the border crisis was the first theme she tackled in her speech to legislators and guests in the House chamber and gallery.

Hobbs blamed both “Democratic and Republican administrations” for “the failure to secure our southern border,” railing against “the same old political games that created this crisis and that have continually hurt communities, families, and our state.” The second-year governor asserted that she “delivered” on multiple fronts to help mitigate the crisis, including the launch of Operation SECURE and the creation of a Border Coordination Office within the Arizona Department of Homeland Security.

Both Senate President Warren Petersen and House Speaker Ben Toma reacted to the governor’s State of the State, releasing a joint video immediately after the conclusion of Hobbs’ remarks. The two men prioritized their response to this specific issue, dedicating almost two minutes of their five-minute video to discuss the governor’s record on border security. Toma argued that despite Hobbs’ attempt to make Arizonans “believe she’s all about securing our border and ending the lawlessness caused by Joe Biden’s immigration system…her record is one of open borders…and she’s continued that approach as governor.” The House Speaker alleged that “the governor’s reputation on immigration policy has only fueled this crisis.”

Petersen talked about “major mistakes” from Hobbs by vetoing three bills in particular “that would have kept families safe from drugs and crime.” Those 2023 bills, according to the Senate Republican leader, were HB 2675 (drug cartels, terrorist organizations; sponsored by Montenegro), HB 2469 (sovereign authority, border, health crisis; sponsored by Montenegro), and SB 1408 (electronic applications, human smuggling; sponsored by Wadsack). The East Valley lawmaker also noted that Hobbs “was a staunch critic of the shipping container barrier and advocated for its removal” at the border.

Toma also highlighted an instance when his colleagues “stopped (Hobbs’) irresponsible proposal of providing $40 million in state funding to pay for the college education of illegals in our state.”

During 2023, the first year of a rare, divided government in the Grand Canyon State, legislative Republicans effectively pointed out that the reality with the border crisis could have been more daunting for Arizonans if not for their check on Democrats. When Hobbs signed the state budget compromise in May, Petersen noted his members “prevented the Governor and Democrat Legislators from advancing their extremist agenda,” and promised “we’re not getting rid of state-funded border security resources to keep our communities safe.” Despite Hobbs’ efforts to be perceived as taking the border crisis seriously in the new year, she is unlikely to work with legislative Republicans on much – if any – fixes to help mitigate the lawlessness and consequences for affected communities.

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

Fontes Drops New Elections Procedures Manual, Draws Threats Of Litigation

Fontes Drops New Elections Procedures Manual, Draws Threats Of Litigation

By Daniel Stefanski |

Arizona has a new Elections Procedures Manual for the 2024 cycle, though litigation is all but certain from state Republicans.

On Saturday, just before the statute-mandated deadline of December 31, Democrat Adrian Fontes issued the 2023 Election Procedures Manual, after securing approvals from his fellow Democrat officeholders, Governor Katie Hobbs and Attorney General Kris Mayes. In a statement to accompany the release of the manual, Fontes said, “Free, fair and secure elections have been this group’s commitment to the voter from the very beginning. This is what happens when a committed group of leaders comes together to serve their community. It’s good for our democracy and it’s good for Arizona.”

For the first time since 1978-1979, Democrats control the top three statewide offices in Arizona (Governor: Bruce Babbitt, Attorney General: John LaSota, Secretary of State: Rose Mofford). One of the most significant consequences of securing this power trifecta is the ability to negotiate, craft, and green light the state’s Election Procedures Manual without initial interference from opposing political voices, as required by law every two years.

Arizona Republicans were quick to push back against the elections manual and signaled a willingness to challenge the legality of its contents in court. House Speaker Ben Toma stated, “A lawful Elections Procedures Manual is paramount for the integrity of our elections. It’s been a top priority of the Arizona House Republican Caucus. I’m disappointed that SoS Fontes refused to correct many objections we raised in our comment to the EPM draft. We are preparing for litigation.”

The speaker’s reference to previous ‘objections’ harkened to an August public comment letter, which was submitted by Senate President Warren Petersen and Toma to the Arizona Secretary of State’s Office after they reviewed the draft manual. Then, the legislators had identified their chief concern with Fontes’ initial offering, which was the “unlawful delay in the implementation of a 2021 state law that helps prevent voter fraud by requiring county recorders to remove any voters registered on the active early voter list who have not cast a ballot during two consecutive election cycles and have not responded to notification from the recorder that they wish to continue participation.” Petersen and Toma asserted that the consequence of this delay would be the perpetuated issuance “of ballots being sent to the homes of voters who may have moved or no longer wish to participate in this process, opening the door for ballots getting into the hands of unintended individuals.”

In a new statement after the release of the approved EPM, Petersen said, “We warned the SOS early on that we would sue if the Elections Procedure Manual was not corrected to reflect the laws passed by the legislature. Unfortunately that did not happen. I imagine there will be many plaintiffs joining the Senate in protecting our elections.”

Arizona Republican Party Chairman, Jeff DeWit, also promised legal action against the manual, calling it an “egregious destruction of election fairness by the Democrats.”

The AZGOP shared four “concerning elements” from its cursory review of the manual: limitation of free speech, restriction of voter challenges, exclusion of Republican oversight, and refusal to heed legal precedent. In its press release, the state Republican party charged Fontes with “trying to take powers from the state legislature that are not his to take.”

Representative Alexander Kolodin weighed in on the EPM, writing, “Fontes’ EPM is not an Elections Procedures Manual, it is a how-to manual to disenfranchise Republican voters and a breathtakingly unlawful power grab. It cannot be allowed to stand!”

While most Arizona Republicans are united in opposition to the 2023 EPM, so, too, are Democrats in their support of the Secretary of State’s submission. Governor Katie Hobbs, who preceded Fontes, said, “Partisan politics should have no role in how we run our elections. This EPM builds on the 2019 EPM and 2021 draft EPM from my tenure as Secretary of State and will ensure dedicated public servants from across the state will have the guidelines they need to administer free and fair elections. Together, we can protect our democracy and make sure every Arizonan has the opportunity to have their voice heard.”

As Secretary of State, Hobbs was required to finalize the EPM in 2021, but a divided government shared with Republican Governor Doug Ducey and Attorney General Mark Brnovich stymied the quest to secure a green light for the manual. Hobbs and Brnovich were also mired in an ongoing political feud, which resulted in legal bar charges that the Secretary of State brought against the state’s top prosecutor and several of his attorneys. After receiving Hobbs’ updated manual, Brnovich sued the SOS “to compel her production of a lawful EPM.” Brnovich alleged that “the SOS failed to provide the Governor and Attorney General with a lawful manual by October 1, 2021, as required, and instead included nearly one-hundred pages of provisions not permitted under the EPM statute.” The challenge from the former Attorney General was rendered unsuccessful, and the state was forced to revert to the previous cycle’s EPM (2019) to govern the 2022 races.

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

Horne On ESA Report: “Nothing Is Being Withheld”

Horne On ESA Report: “Nothing Is Being Withheld”

By Daniel Stefanski |

The holiday season didn’t bring holly and jolly to the ongoing feud between Arizona’s Democrat Governor and Republican Superintendent of Public Instruction.

In the days leading up to Christmas, Governor Katie Hobbs and Superintendent Tom Horne exchanged press releases over their dueling perceptions of the due date of the quarterly Empowerment Scholarship Account (ESA) report.

On December 21, the Director of the Governor’s Office of Strategic Planning & Budgeting, Sarah Brown, transmitted a letter to Horne, asking him to send the FY 2024 Quarter 1 Report for the ESA Program to statutory recipients by the following day. Brown opined that this “late report comes after a number of stories showing a concerning lack of accountability and transparency in the ESA program.”

Governor Hobbs posted a short statement to her “X” account, asserting that “Arizonans deserve to know how their taxpayer dollars are being spent. We need true accountability and transparency in the ESA voucher program.”

Horne wasted no time in responding to the latest attack on the program he guides and stewards, saying, “The Department of Education has been in contact with the Governor’s Office for nearly three weeks regarding this issue. They are fully aware that we are preparing the report she has requested. Nothing is being withheld.”

Brown also accused Horne of essentially mismanaging dollars in his budget, highlighting the Department of Education’s spending of “millions of dollars advertising the program even with the escalating costs that threaten to crowd out critical spending from the State budget.”

The superintendent’s marketing efforts for the ESA program were practically mandated and empowered earlier this year with the passage of the State’s budget between Governor Katie Hobbs and Legislative Republicans, when freshman Senator Janae Shamp reportedly earmarked $10 million for school choice advertising at the Arizona Department of Education. On August 24, Shamp responded to a critical piece about the targeted funds, writing, “Families are not getting the REAL facts. So called ‘reporting’ by the left and their media henchmen fails to acknowledge the true winners of this money well spent…THE KIDS! Now they will receive education that meets their personal needs.”

Before Shamp’s allocation, Horne had executed marketing campaigns for the ESA program, though at far less expense than the levels he obtained after the latest State budget.

The Governor’s Office also pointed out the revelations of ESA dollars being used to fund “ski passes and luxury car driving lessons.” In his response to this criticism, Horne retorted that those “frivolous ESA spending approvals occurred under the administration of the Governor’s friend, Kathy Hoffman.” He added that his department had “reviewed more than 15,000 ESA applications, rejecting thousands that were incomplete in the first quarter of Fiscal Year 2024 alone.”

As he closed his statement, the Republican schools chief wished his readers a “Merry Christmas!”

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