On Tuesday, House Democrats took to the House floor to recognize their invited families with disabilities to push the passage of HB2816, a bill to provide funding for the Department of Economic Security (DES). The agency runs out of funds in May.
The bill from Assistant Minority Leader Nancy Gutierrez appropriates $122.3 million in state general funds and nearly $403 million in developmental disabilities Medicaid expenditure authority funds to the DES for developmental disabilities program expenses.
House Democrats are shenanigating to try and bring forward for a floor vote Assistant Leader Nancy Gutierrez’s HB2816 to provide the supplemental funding to keep the program for developmentally disabled children and adults, and paid parental caregivers. Rather than support a… pic.twitter.com/lJ1VHS0mRC
HB2816 did not make it past introduction. However, that didn’t stop House Democrats from attempting to bypass regular processes to get it heard on the floor on Tuesday.
“Republicans are blocking needed supplemental funds to keep the program going past May,” said Arizona House Democrats.
At the risk of getting gaveled down if she mentions developmental disability funding or her bill to save the families who need it, Assistant Democratic Leader Nancy Gutierrez artfully argues against the Republican countermove to block her motion to bring her HB2816 to a floor… https://t.co/52V2zpnkJ1pic.twitter.com/nsBByuiyHe
House Minority Leader Oscar De Los Santos accused House Republicans of being against funding children’s disability services.
“Arizona House Republicans just KILLED the bill to fund lifesaving disability services for children with Down syndrome, autism, and other developmental disabilities. All while heartbroken families watched from the gallery,” said De Los Santos.
BREAKING: Arizona House Republicans just KILLED the bill to fund lifesaving disability services for children with Down syndrome, autism, and other developmental disabilities. All while heartbroken families watched from the gallery. pic.twitter.com/dD0BtYCLJA
House Republicans said Governor Katie Hobbs’ mismanagement was to blame for the budget shortfall and constricted timeline. Majority Leader Michael Carbone alleged to ABC15 that Hobbs had stretched disability services beyond their capabilities without the legislature’s consent.
“She expanded the scope and raised rates, all without the consent of the legislature of the necessary funding to meet her policy changes, and it now threatens the viability of the entire program,” said Carbone.
This wouldn’t be the only area of alleged mismanagement by Hobbs. House leaders addressed the pending shutdown of the Department of Child Safety’s Congregate Care program, which Speaker Steve Montenegro attributed to poor budgeting by Hobbs.
“The governor spends beyond her budget. She waits until it fails, and then she declares an emergency. In January, we were told by the governor’s staff that they needed supplemental funding for DCS,” said House Speaker Steve Montenegro in Monday’s press conference.
Hobbs’ spokesman, Christian Slater, said Republican lawmakers were “lying” about the governor’s budget handling. Slater accused Republicans of attempting 50 percent cuts to the Department of Developmental Disabilities.
“Governor Hobbs produced a balanced budget proposal that secures the border, raises pay for State Troopers and firefighters, combats Veterans homelessness and protects Arizonans with autism, cerebral palsy, and Down Syndrome,” said Slater. “Instead of showing Arizonans a budget plan of their own, Republican lawmakers have gone to the press to lie about the Governor’s budget, refused to enter negotiations, and are holding kids in foster care and Arizonans with disabilities hostage to their political games.”
NEW: Republican lawmakers are lying to their constituents instead of negotiating a budget. Today, we called on them to pass the Governor’s budget. And if they don’t like that, then they need to show Arizonans their plan. pic.twitter.com/KhFzrNlMS0
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’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.
Last week, Governor Katie Hobbs announced her signing of Executive Order 2025-01 to direct the creation of Operation Desert Guardian, a joint task force of the Arizona Department of Emergency and Military Affairs, the Arizona Department of Public Safety, and the Arizona Department of Homeland Security. The response from the GOP-led legislature showed frustration with the Governor’s move.
According to the Governor’s Office, the order is an effort to “expand border security operations in Arizona’s four border counties.” It also indicated that the operation will seek partnership with “local law enforcement, sheriffs, and the federal government to disrupt Transnational Criminal Organizations (TCOs) operations within Yuma, Pima, Santa Cruz, and Cochise counties.”
Hobbs said in a statement, “I’m proud to launch Operation Desert Guardian to combat the cartels, stop drug smuggling and human trafficking, and secure Arizona’s border.”
“My administration has been in contact with the federal government and local sheriffs about the Operation, its critical objectives, and our shared commitment to keeping criminals and drugs out of Arizona’s communities. I have worked productively with the federal government on Task Force SAFE and partnered with local law enforcement to deliver critical border security support, and I look forward to continued partnership on our shared border security priorities. With Operation Desert Guardian, I’m confident we can take an important next step in our ongoing work to secure the border.” According to the Governor’s Office, the objectives of the order include:
Identifying and mitigating security vulnerabilities along our 370-mile southern border, and
Combating border-related crimes perpetrated by TCOs by dismantling their supply chains and operating networks.
Arizona House Speaker Steve Montenegro reflected great skepticism of Hobbs’ sincerity and the lateness of her apparent concern for the border. In a statement to AZ Free News, Montenegro said:
“Too little, too late. For years, Governor Hobbs has refused to take meaningful action while Arizonans have paid the price. The border crisis has spiraled out of control under her watch, forcing the legislature to step up where she has failed. Republicans led the charge to pass critical fentanyl crime legislation and put a measure before voters—who overwhelmingly supported making it a state crime to cross the border illegally.
Montenegro added, “Now, with the crisis at a breaking point, the Governor is scrambling to look tough on border security. While I hope this effort delivers real results, it’s clear who has been leading on this issue all along—and it’s not Katie Hobbs.”
