On Monday, Arizona House Republicans revealed that the Department of Child Safety’s (DCS) Congregate Care program is bound for bankruptcy in a week’s time and announced the creation of a House Ad Hoc Committee to investigate the responsibility of Democrat Governor Katie Hobbs for a series of fiscal failures.
Arizona House Speaker Steve Montenegro, joined by Majority Leader Michael Carbone, Majority Whip Julie Willoughby, Speaker Pro Tempore Neal Carter, and members of the House Republican Majority called out the governor directly. “This is not a simple oversight—it is gross financial mismanagement at the highest level,” said Speaker Montenegro. “Governor Hobbs has made a habit of overspending, ignoring reality, and then sounding the alarm only when disaster strikes. The difference here is that Arizona’s children will be the ones to suffer for her failures. That’s why I’m taking immediate action.”
The Speaker continued, “This is a pattern. Congregate Care is set to go bankrupt next week. The Governor’s mismanaged Developmental Disabilities program will collapse by the end of April. Her administration failed to budget for formula growth in AHCCCS for two years straight—racking up hundreds of millions in unaccounted costs. The list goes on. This is not leadership. This is incompetence.”
“The people of Arizona didn’t elect us to stand by while the Governor manufactures crisis after crisis. House Republicans will ensure accountability and enforce responsible budgeting, but we expect the Governor to take ownership of her failures. That starts with making her staff available to the Legislature so we can fully understand the depth of this mismanagement and pursue the right solutions. Governor Hobbs may be comfortable with chaos, but we are not.”
As reported by AZ Free News in February, Treasurer Kimberly Yee reported on the allegations against the Hobbs administration in a letter to Chairman of the Arizona House Appropriations Committee, Rep. David Livingston.
In a statement at the time, Livingston said, “I appreciate Treasurer Yee’s clarity in addressing the financial mess Governor Hobbs has created. The issue isn’t ‘missing money’—it’s blatant mismanagement.”
“Under the Governor’s feckless leadership, state agencies are making massive spending decisions with zero legislative oversight, ballooning costs, and expecting taxpayers to foot the bill. This kind of incompetence cannot stand.”
The release from Montenegro detailed that the House Ad Hoc Committee on Executive Budget Mismanagement will examine “how the Governor has consistently mismanaged the budget, ignored financial reality, and allowed critical services to reach the brink of collapse before taking action.”
The Speaker also directed the Chairman of the Joint Legislative Budget Committee to summon the Committee to order and instruct Governor Hobbs to redirect existing funds to handle the crisis and prevent harm to the children in DCS custody noting, “The Governor’s administration failed to spend wisely, and it is their responsibility to fix this situation—not the Legislature’s job to bail them out.”
A bill asking President Trump and Congress to prevent the Environmental Protection Agency (EPA) from imposing sanctions on Arizona is currently making its way through the Arizona legislature.
House Concurrent Memorial (HCM) 2010, sponsored by Rep. Michael Carbone (R-LD25) urges the federal government to prevent the EPA from imposing what lawmakers call “coercive and likely unconstitutional” penalties on Arizona regarding ozone pollution standards. The resolution also calls for maintaining the existing 2015 air quality standard rather than implementing stricter regulations.
The federal Clean Air Act requires the EPA to set and periodically review air quality standards to protect public health. In 2015, the EPA lowered the National Ambient Air Quality Standard for ground-level ozone to 70 parts per billion to reduce harmful pollution linked to respiratory illnesses. However, Arizona officials argue that some areas struggle to meet the standard due to factors beyond their control, such as emissions from outside the state or even outside the country.
The Arizona Department of Environmental Quality (ADEQ) is responsible for implementing and enforcing air quality regulations at the state level. Under federal law, state air quality plans must prevent emissions that significantly contribute to pollution in neighboring states or interfere with visibility protections.
The resolution, if passed, would formally request that:
The President and Congress intervene to stop the EPA from penalizing Arizona for failing to meet ozone standards deemed unattainable with current technology.
The EPA revise its regulations to allow Arizona’s air quality plan to account for cross-border emissions when determining compliance.
The EPA maintain the 2015 ozone standard rather than implement stricter limits that the resolution claims lack sufficient scientific backing.
Additionally, the measure directs the Arizona Secretary of State to send copies of the memorial to federal officials, including the President, congressional leaders, and Arizona’s U.S. Senators and Representatives.
The measure passed the Arizona House with a 32-27-1 vote and was approved by the House Natural Resources, Energy & Water Committee in a 6-4 vote.
Supporters of the resolution argue that Arizona should not be penalized for ozone levels influenced by external sources beyond state control. If approved by the Legislature, HCM 2010 will serve as an official request for federal action but will not carry the force of law.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
Arizona’s ongoing housing crisis is taking center stage as state lawmakers, led by House Majority Leader Michael Carbone, voice strong opposition to Governor Katie Hobbs’ water policies, accusing them of exacerbating the state’s housing shortage. In a statement released last week, Carbone applauded House Speaker Steve Montenegro for authorizing a lawsuit against the Arizona Department of Water Resources (ADWR) over its adoption of a controversial 33.3% groundwater tax. Carbone claims that this policy is driving up the cost of housing and ultimately harming Arizonans who are already grappling with soaring housing prices.
At the center of the dispute is a policy known as the housing moratorium, which has been criticized for preventing the development of large swathes of land that could otherwise be used to build affordable homes. According to Carbone and other critics, the moratorium was adopted illegally, and it has led to a situation where hundreds of thousands of acres of land remain undeveloped. This, in turn, limits the amount of available space for new homes, driving demand to already crowded urban areas and increasing housing costs.
Carbone explained that “water policy is land use policy, and land use policy is housing policy,” suggesting that the restrictions on land development, while related to water conservation, are having broader economic consequences.
As a result of the moratorium, many Arizonans are facing higher costs when it comes to purchasing new homes. The housing moratorium is expected to increase home prices by $19,600 to $23,700 per house. Additionally, the proposed 33.3% groundwater tax has been predicted to add an extra $5,100 to $7,900 to the cost of new homes. These measures have raised concerns about the affordability of housing, especially in a state already struggling with rapid population growth and a housing shortage.
The Arizona House of Representatives, alongside the Home Builders Association of Central Arizona (HBACA) and members of the Arizona Senate, have joined forces in a legal battle against the ADWR’s actions. The lawsuit seeks to halt the 33.3% groundwater tax, which lawmakers argue is not only illegal but also harmful to Arizona’s housing market. Carbone criticized the governor’s policies, stating that they are not about ensuring water security but rather a means of “government control.”
“The Governor wants to dictate where and how Arizona families live, limiting all future growth to cities and driving up home prices,” Carbone said. “Affordable housing is central to the American Dream, and we are committed to fighting these illegal policies that will only make the housing crisis worse.”
The legal battle focuses on the ADWR’s authority to implement such a tax and whether it complies with state law. Proponents of the lawsuit argue that homebuilders have long demonstrated a commitment to responsible water management, having replenished 100% of the groundwater they use annually since 1995. Therefore, they contend, penalizing the homebuilding industry with additional taxes is unfair and counterproductive.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
Arizona’s House Republican leadership has issued a strong condemnation of Governor Katie Hobbs’ handling of the state’s Developmental Disabilities (DDD) program, citing a $122 million budget shortfall and accusing the administration of gross mismanagement. The joint statement, released last week, criticized the governor for reckless spending decisions and a lack of consultation with the legislature, which they say has contributed to a financial crisis in the program.
House Speaker Steve Montenegro, Majority Leader Michael Carbone, Majority Whip Julie Willoughby, and Speaker Pro Tempore Neal Carter joined forces to decry what they called Hobbs’ failure to take responsibility for the growing issues facing the program. The DDD program, which serves Arizona’s most vulnerable citizens—those with developmental disabilities—has seen its financial situation worsen due to an unsustainable increase in costs.
The Arizona Developmental Disabilities program is a $4 billion initiative that provides essential services and care for individuals with developmental disabilities. According to the House Republicans, the program is on track to double in cost from fiscal year 2023 to fiscal year 2026, creating a serious budget shortfall that the governor’s office has failed to adequately address.
Republican leaders were especially vocal in their criticism of Governor Hobbs’ management of the program, accusing her of making “reckless spending decisions” that have led to the current crisis. The lawmakers pointed out that the governor’s administration had failed to work collaboratively with the legislature to develop solutions, instead opting for unilateral actions that have only exacerbated the problem.
“Governor Hobbs’ gross mismanagement puts Arizona’s most vulnerable citizens at risk,” the joint statement reads. “Her administration’s reckless spending decisions—made without consulting the Legislature—have bankrupted the DDD program, creating an avoidable crisis. Now, she’s demanding a taxpayer bailout without accountability or reforms.”
Adding fuel to the fire, the House Republicans also highlighted the recent shake-up within the governor’s administration. Governor Hobbs’ budget director resigned, she demoted the director of the Department of Economic Security (DES), and removed her health policy advisor—all actions that Republican lawmakers argue signal a lack of leadership and accountability within the administration.
Instead of collaborating with lawmakers to address the growing concerns, House Republicans claim that Governor Hobbs has deflected blame, choosing to focus on political tactics rather than on solving the issue at hand. They argue that these leadership changes are a direct result of the administration’s inability to manage the program effectively.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
Arizona Republicans are reacting to a financial crisis involving a local school district and calling for serious investigations into the developing matter.
This week, a number of Republicans in both the Arizona House of Representatives and Senate released statements about the situation surrounding Isaac Elementary School District being placed in receivership by the Arizona State Board of Education. Some legislators are even looking to the Maricopa County Attorney to investigate the school district if the state’s attorney general does not spring into action.
House Speaker Steve Montenegro said, “Our sympathies begin and end with the students, faculty, and parents of Isaac. At the heart of this crisis are more than 4,800 students and hundreds of employees who have been abandoned by failed district leadership. The falsification of financial records and the mismanagement of public funds are a betrayal of trust and must be investigated immediately. The people of Arizona deserve to know how this happened, and those responsible must be held accountable.”
Senator David Farnsworth, the Chair of the Education Committee, added, “I’m incredibly concerned by what’s transpired within the Isaac Elementary School District. My colleagues in both the Senate and House are investigating what led to the tremendous overspending and what legislative reforms we need to adopt to make certain a similar situation doesn’t happen in the future. What the State of Arizona won’t do is provide this school district a financial bailout without implementing any corrective policies. Doing so would only be a Band Aid on the wound and most certainly do more harm than good.”
Senator Carine Werner, a first-term legislator and the Vice Chair of the Education Committee, wrote, “My heart goes out to the teachers and staff of Isaac Elementary School District, many of whom are already living paycheck to paycheck and are now fearing the money isn’t going to hit their bank accounts come pay day because of the gross financial mismanagement by administrators within this district. We are working on solutions to ensure the children of these schools are not disrupted in their learning environments and those responsible are held accountable.”
Arizona House Majority Leader Michael Carbone stated, “Since taking office, Mayes has shown zero interest in tackling corruption in school districts. Instead, she has used her office to attack parents who use Empowerment Scholarship Accounts to seek better opportunities for their children. This is the same Attorney General who dropped all felony charges against a former Scottsdale Unified Superintendent engaged in a laundry list of fraudulent schemes at multiple school districts. Amazingly, Mayes only required the former administrator to pay income taxes on illegal kickbacks the administrator received – a sweetheart settlement for the ages. The students in Isaac deserve better.”
In their letter sent to Maricopa County Attorney Rachel Mitchell, Arizona House Republican leadership wrote, “In late December, the Arizona Auditor General sounded the alarm over the possibility of a receivership and noted that the Isaac Elementary School District has been identified as one of Arizona’s highest-risk districts since December 2020. The Auditor General has also reported that ‘[t]hroughout FY 2024, the District failed to report expenditures in the appropriate funds throughout the year and submitted a misleading and inaccurate FY 2024 annual financial report’ to the Arizona Department of Education. And in another report documenting multiple deficiencies in Fiscal Year 2023, the Auditor General noted potential conflict of interest issues, miscoded financial transactions, incomplete financial records and documentation, failures to deposit cash in a timely manner, and failures to provide training and guidance related to restrictions on accepting gifts or benefits.”
The House Republicans asked Mitchell to confirm an investigation into the Isaac Elementary School District matter because they lack confidence that Mayes would “fully and fairly investigate the school district’s leadership over these serious issues.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
