Arizona Legislature Passes $18.3B Budget with Bipartisan Support

Amidst a politically charged atmosphere, the Arizona Legislature has successfully passed an $18.3 billion state budget, garnering support from both parties despite notable reservations among some Democrats. The budget features significant tax cuts reminiscent of previous federal reductions endorsed during the Trump administration.

Republicans in Arizona’s legislative bodies had been persistent in presenting tax plans to Governor Katie Hobbs, who repeatedly vetoed them. She indicated a willingness to approve a scaled-down version focused on middle-class tax relief but required broader budget negotiations for the larger Republican proposal.

House Speaker Steve Montenegro (R-Goodyear) expressed satisfaction with the outcome, stating, “Now we’re going to send up nearly the same package as the last time, and the governor is going to sign it.” The tax cuts are projected to decrease state taxes by approximately $1.4 billion over the upcoming years. Montenegro emphasized the impact, calling it “historic” and highlighting its significance for residents.

Despite the bipartisan passage, Governor Hobbs and Democratic leaders acknowledged that the budget did not achieve all of their objectives, particularly in education reform and funding. House Minority Leader Oscar De Los Santos highlighted Democratic achievements, including securing funds to address federal Medicaid and food assistance changes impacting Arizonans, with $20 million allocated to enhance staffing in state agencies managing these programs.

De Los Santos commended community advocates and the Democratic caucus for their efforts. “In a divided government, no side will get everything they want, but I want to thank community advocates and everyday Arizonans, and most of all, the House Democratic caucus for fighting for an Arizona we can afford,” he stated.

Additional Democratic priorities in the budget include $37 million for low-income schools, funding for school meal programs, and the Sun Bucks initiative supporting families during summer months.

However, some Democrats remained opposed to the budget, citing concerns over continued funding for state trooper positions under the Gang and Immigration Intelligence Team Enforcement Mission. This funding, according to the governor’s office, is intended for combating drug trafficking but could be redirected under different leadership.

Senator Sally Ann Gonzales (D-Tucson) expressed skepticism, pointing to potential uses for immigration enforcement. “We always talk here at the Legislature about the devil is in the details,” she said. “Well, I just read you what the devil is saying in this budget about this money being used for immigration enforcement.”

Criticism also arose over insufficient changes to the school voucher program, which was highlighted in an Auditor General’s report for mismanagement. Additionally, funding for public schools and universities saw reductions, with $16 million cut and the removal of adult education funding at community colleges.

Senator Jake Hoffman (R-Queen Creek) suggested that the budget closely resembled a prior Republican-only plan vetoed by Hobbs, with modifications to gain Democratic support. “Once you set the press releases aside, it is very nearly the same budget that this chamber passed months ago, changed in ways that make it worse, not better,” he commented.

Despite the criticisms, Governor Hobbs defended the budget as a bipartisan success, stating, “When I meet with Arizonans, they tell me they want their elected officials to work together to lower costs, create jobs, keep their communities safe, and expand opportunity and freedom in every corner of our state. Today, I’m proud to say that we have delivered.”