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.”
Arizona lawmakers are advancing a series of bills aimed at increasing transparency, accountability, and taxpayer protection. These measures tackle issues ranging from government spending on elections to school board meetings and travel, with a focus on ensuring that public funds are used responsibly and efficiently. With strong support from various groups, these bills reflect ongoing concerns about how taxpayer money is spent and how local government actions are conducted.
One of the most significant pieces of proposed legislation, HB2722, is backed by the Arizona Free Enterprise Club and sponored by Rep. Neal Carter (R-LD15). The bill seeks to prevent taxpayers from indirectly subsidizing private businesses through government gifts. Specifically, it targets “gift clauses” in state and local government contracts, which some argue allow for inappropriate use of taxpayer funds to benefit private entities.
The Arizona Free Enterprise Club has been vocal about the need for stronger protections against such expenditures. The organization has stated that this bill is necessary to curb the growing trend of government spending on private corporations without clear public benefit.
“Taxpayers should not be used as a backdoor financing mechanism for private companies,” said Arizona Free Enterprise Club officials. “This bill is about ensuring that public dollars are spent in a way that directly benefits the public, not private interests.” If passed, this bill would create stricter guidelines on how public funds can be spent and would allow taxpayers to hold officials accountable when misused funds are discovered.
Another bill making its way through the Arizona legislature is SB1036, supported by the Goldwater Institute and sponosred by Sen. John Kavanagh (R-LD3). This bill targets government spending on influencing elections, a topic that has sparked considerable debate in recent years. SB1036 would create a private right of action for taxpayers, allowing individuals to sue if they believe government funds are being spent on efforts that influence an election. This would make it easier for citizens to challenge the use of taxpayer money in elections, particularly when the spending appears to be partisan or otherwise improper.
The Goldwater Institute has argued that taxpayers have a right to ensure their money isn’t used to sway political outcomes. According to a recent report by the organization, there have been multiple instances of local governments spending taxpayer funds to advocate for policies that align with political interests, which has raised concerns about government overreach.
“Governments should not be using taxpayer money to influence the political process,” said Goldwater Institute officials. “This bill provides taxpayers with the ability to stand up for their rights and ensure public resources are not misused.”
Another bill, HB2169, which was introduced by Representative Matthew Gress (R-LD4), seeks to address transparency within Arizona’s public school districts. The bill would require school board meetings to be held in public facilities within the district, ensuring that they are easily accessible to the communities they serve. Additionally, the bill mandates that school boards must receive public approval before engaging in out-of-state travel, making it more difficult for administrators to make costly decisions without community oversight.
This legislation gained near-unanimous support, with proponents arguing that it ensures greater accountability for how public schools operate and how funds are spent. Critics of the current system have pointed to examples of school board members using taxpayer money for luxury travel without clear, public approval or benefit. A notable incident involved a local school district that faced backlash after spending taxpayer funds on extravagant trips while simultaneously requesting additional funding from voters for educational needs.
“Public education is about serving the community,” said Representative Gress in a statement. “We need to make sure that the actions of school boards are always in the public interest. This bill strengthens public trust in our school systems.”
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.
The State of Arizona is fast-tracking a tax reduction policy through the legislature that became a staple of President Donald J. Trump’s campaign platform over the past year.
This week, the Arizona House of Representatives Committee on Ways and Means passed HB 2081, which would exempt taxation on tipped wages from the state’s individual income tax.
State Representative Gail Griffin, a Republican who was the sponsor of this legislation, said, “I worked in the service industry years ago and understand the challenges tipped employees face. Tips are an expression of appreciation from customers for services provided. Tips are gifts and, in my opinion, should not be taxed. HB 2081 ensures that Arizonans who rely on tips to support themselves and their families can keep more of their hard-earned money. I’m grateful to Chairman Olson for making this the committee’s first bill for the session.”
Another Republican lawmaker, State Representative Neal Carter, added, “A key feature of a good taxation system is voluntary compliance and simplicity of administration. Tips are often paid in real time and in strange amounts. Taxing tips simply punishes the honest because strict compliance is difficult to achieve.”
As a candidate for President, Trump announced his plan for no federal taxes on tips back in June in the State of Nevada. Shortly after Trump’s announcement last summer, his Democrat opponent, then-Vice President Kamala Harris, mirrored his proposal in an attempt to woo voters on the campaign stump. On Inauguration Day this week, the newly minted Commander in Chief riffed that he thought his campaign may have secured the State of Nevada’s electoral votes in the November General Election because of that promise.
A poll from The Associated Press-NORC Center for Public Affairs Research earlier this month showed that 54% of respondents would strongly or somewhat favor eliminating taxes on earnings from tips.
The U.S. Bureau of Labor Statistics estimates that there are 2,277,900 waiters and waitresses across the country.
The bill passed the Arizona House committee along a party-line vote – 5-3, with one Democrat member absent.
According to the Arizona Legislature’s Request to Speak system, representatives from the Republican Liberty Caucus of Arizona, Arizona Licensed Beverage Association, and Fraternal Order of Police AZ State Lodge, signed in to support the bill. Representatives from Living United for Change in Arizona, the Arizona Center for Economic Progress, and Rural Arizona Action opposed the legislation.
HB 2081 will soon make its way to the floor of the Arizona House of Representatives for a vote from the full chamber.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
The Arizona House Ad Hoc Committee on Oversight, Accountability and Big Tech convened on Tuesday to discuss the influence of Big Tech on free speech.
Chairing the committee was State Rep. Alex Kolodin (R-LD03); the two other members were State Reps. Neal Carter (R-LD15) and Cesar Aguilar (D-LD26). The committee heard testimony from Robert Epstein, a renowned psychologist and Big Tech data researcher, and James Kerwin, senior counsel for Mountain States Legal Foundation. More individuals were reportedly scheduled to testify, but Kolodin disclosed that they were unable to do so for fear of retribution by Google.
Kolodin opened the committee meeting with allegations of the “disturbing parallels” between modern society and the fictional world depicted in the book “1984” by George Orwell. Kolodin referenced the Orwellian concepts of “thoughtcrime” and “newspeak,” claiming further that they exist currently.
“That crime was thoughtcrime, and the crime was not merely that you said something wrong, the crime was that you thought wrong, that you weren’t purely of a mind that matched the party’s ideology,” said Kolodin. “There is a fear that is exactly what’s going on in our country today. There’s an attempt to redefine free speech as misinformation.”
Epstein was the first guest speaker. He summarized his ongoing, near-decade data collection of Google’s practice of creating “ephemeral experiences,” or persuasive search engine results, to influence voters. The term was discovered to be regularly used by Google internally via their company emails.
Epstein dubbed Google’s practice the “Search Engine Manipulation Effect” (SEME).
Based on multiple experiments on SEME conducted domestically and abroad, Epstein determined that the practice consistently influenced voters to shift their voting preferences anywhere from 20 to 80 percent.
“The most disturbing set of scientific findings that I’ve ever encountered in my life. The more we have learned, the more disturbed I have become at what I’m finding,” said Epstein.
AZ Free News reported last November that there was an apparent, consistent bias for two Democratic candidates — then-gubernatorial candidate Katie Hobbs and then-secretary of state candidate Adrian Fontes — over their respective Republican opponents, Kari Lake and Mark Finchem.
We reported that search results for “Katie Hobbs” brought up her campaign website first, followed by news reports that portrayed her favorably, her Twitter feed, her Wikipedia page, an endorsement by Emily’s List, her Ballotpedia, and her Facebook.
By contrast, a search for “Kari Lake” didn’t yield her campaign website on any of the first 11 search result pages, and didn’t appear even when omitted results were included. Her search results yielded a Wikipedia page first alongside unfavorable media coverage.
It wasn’t until after our report was published that search results for Kari Lake were modified. Epstein declared during Tuesday’s meeting that Google’s interference resulted in a race-determining advantage for Hobbs.
“If you took Google out of that picture, Kari Lake would’ve won,” said Epstein.
According to Epstein’s data collection, Google would also discriminately deploy voting reminder graphics to certain voters at certain times, with reported favoritism to Democratic voters. Some voters reportedly didn’t get a reminder to vote.
Epstein disclosed that he voted for both Hillary Clinton in 2016 and Joe Biden in 2020, but that he was concerned with Google’s influence over private decision-making.
“I object to the fact that a private company that is not accountable to the public in any way is messing with our elections,” said Epstein.
Epstein proposed implementing a monitoring system that would prevent manipulation from Google in the future.
After an hour break, Kerwin testified on the relationship between government and Big Tech concerning censorship. He explained that government wording in its communications determines whether a constitutional violation occurred. In most cases, Kerwin declared that the open relationship between government and social media companies to monitor speech exists in a “gray area” within the law.
Kerwin cited the ongoing case, Missouri v. Biden, as a “watershed” case on this gray area. The Biden administration was sued for coordinating with social media companies to flag and remove posts, and the federal judge in the case determined that the plaintiffs were likely to prevail based on preliminary evidence produced.
That’s when Kerwin broached the subject of Gov. Katie Hobbs. Kerwin reviewed several emails from Hobbs’ secretary of state staff requesting that Twitter remove certain tweets they classified as misinformation or disinformation.
“This suggests a troubling intention on part of a government official to stamp out speech they disagree with,” said Kerwin.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
