In a contentious political maneuver, Arizona’s Republican leaders have pushed through a plan to allocate emergency funding to a vital program for residents with developmental disabilities. This decision has sparked controversy, as it overrides a bipartisan proposal with broader support. The program, run by the Arizona Department of Economic Security’s Division of Developmental Disabilities, requires a $122 million cash boost to prevent a financial shortfall set to hit in May, which could jeopardize payments to service providers caring for this community.
The need for funding is undisputed across party lines at the Arizona Capitol; however, the approach to this funding has led to significant disagreements. The ensuing uncertainty has heightened anxiety among families dependent on the program.
“We have seen emergency sessions skyrocket because parents are panicked. There are increased calls to crisis hotlines. This is unfair and it’s unreasonable,” stated Michele Thorne, who manages a caregiver support organization.
Republicans have pointed fingers at the Hobbs administration, accusing it of mismanagement, particularly criticizing the decision to permanently allow parents to be paid as caregivers, which they claim is a major factor in the funding crisis. To address these concerns, identical bills were passed by committees in the Arizona House and Senate on Tuesday. These bills propose $122 million in funding alongside Republican-favored reforms.
The proposed House Bill 2945 would require the Hobbs administration to limit the parents-as-paid-caregivers program to 20 hours per child per week starting in October, instead of the 40-hour limit set for July. Additionally, it seeks to grant the GOP-controlled Legislature veto power over state Medicaid waiver requests, which are typically overseen by the governor’s office.
The Senate Appropriations Committee approved the bill with a 6-4 vote along party lines. Meanwhile, Democratic lawmakers and Governor Katie Hobbs have advocated for unconditional emergency funding and propose addressing program reforms in the new fiscal year starting July 1. They argue that increased costs and enrollment, rather than mismanagement, have led to the budgetary strains on the DDD program.
In the Arizona House, the bill did not secure unanimous Republican support, passing narrowly with an 11-10 vote. Republican Representatives Julie Willoughby, Justin Olson, and Jeff Weninger sided with Democrats in opposition. Willoughby sought to amend the bill to maintain the 40-hour weekly cap for parent caregivers and recommended a revised process for Medicaid waiver reviews, which would involve the Joint Legislative Budget Committee instead of legislative veto power.
“I do believe that in this community we do need some bipartisan support,” Willoughby expressed. “There does need to be some reforms to make sure that families aren’t in this fiscal cliff regularly.”
However, others in the Republican camp, such as Rep. Matt Gress (R-Phoenix), argued that Willoughby’s amendment fell short because the Joint Legislative Budget Committee lacks authority to block Medicaid waivers.
Concerns were voiced by families and advocates during the hearing, urging legislators to reject the Republican bill. They argued that the parent caregiver program is crucial, given the shortage of alternative providers.
“I have exactly the same level of training as those other people who come in and work to help my son, care for him, make sure that he is safe … I am just as valuable as they are, and I don’t have any turnover, I’m not going to leave,” shared parent Amy Haley.
Willoughby’s amendment appeared to have enough bipartisan support to pass initially, but last-minute changes to the House Appropriations Committee’s composition, resulting in a 14-7 Republican majority, led to its rejection on an 11-10 vote.
“We had a bipartisan solution, and they killed it,” stated Rep. Nancy Gutierrez (D-Tucson), who, along with other Democrats, commended Willoughby for her cross-party efforts.
Committee chair Rep. David Livingston (R-Peoria) defended the move to alter the committee’s composition, citing legislative rules requiring identical bills from both House and Senate committees to ensure timely funding.
“We did what we had to do,” Livingston remarked. “The bill had to pass to give an opportunity to fix the DDD situation the governor caused.”
Despite the setback, Willoughby remains hopeful that Republican leadership will consider incorporating elements of her amendment into the final legislation. Livingston indicated openness to future amendments but noted pending negotiations with the governor’s office.
Governor Hobbs has expressed opposition to the current version of the bill, emphasizing the need for collaboration rather than unilateral action. “Today, Republicans forced through their unserious proposal in a stacked committee to slash services for Arizonans with disabilities, threaten Medicaid programs for middle class children and people with severe mental illness, and gut down payment assistance for working families,” Hobbs stated.
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