Arizona Reaches Bipartisan Agreement to Fund Critical Services for Disabled Residents
In a significant bipartisan accomplishment, Governor Katie Hobbs signed a measure on Thursday to secure funding for essential services benefiting tens of thousands of Arizonans with disabilities, a matter that had previously sparked a prolonged debate with Republican legislators.
The compromise, a $122 million package, received overwhelming support in the Senate, passing with only one opposing vote. This approval followed a previous day’s Senate passage of a Republican-backed proposal, which faced rejection in the House. Eventually, the House approved a new plan late Wednesday with substantial support, leading to its final ratification by the Senate on Thursday.
The urgency of the legislation was underscored by the impending threat of funds depletion for the Parents as Paid Caregivers program, which would have left families without financial support as early as next week. Governor Hobbs emphasized the relief this brings to families, stating, “Now, Arizonans with developmental disabilities and their families can feel some relief knowing services that allow them to maintain their independence and dignity will continue.”
Senate Majority Leader Janae Shamp highlighted the collaborative effort, asserting that the legislative process aims at achieving optimal solutions through bipartisan cooperation. “That’s exactly what we did,” said Shamp. Senate Minority Leader Priya Sundareshan acknowledged the compromise didn’t fulfill all Democratic aspirations but deemed it a necessary and practical resolution.
The Parents as Paid Caregivers program, initiated during the coronavirus pandemic due to a shortage of private caregivers, became the focal point of contention. Federal funding for the program diminished last year, prompting Hobbs to integrate its costs into the state budget, a decision criticized by Republicans for lack of legislative involvement. The situation intensified when it emerged mid-budget cycle that state funds were insufficient to sustain the program through the fiscal year ending June 30.
In the following weeks, the legislative chambers witnessed a strong turnout of parents advocating for continued program funding. Representative David Livingston, chair of the House Appropriations Committee, expressed the program’s life-saving impact, noting that additional funds would also support nursing home residents.
Initially, Republicans resisted Governor Hobbs’ January funding request, accusing her of unauthorized overspending and insisting on stringent conditions. These conditions included oversight of the state’s Medicaid program and reallocating funds from housing and business development to drug rebate funds, which Hobbs eventually utilized.
The Senate’s initial Republican-only proposal was met with accusations from Hobbs of “political games.” This led to further negotiations and ultimately a House and Senate compromise. Representative Julie Willoughby, a key figure in the compromise discussions, worked with Democrats to broker the agreement, even after initial resistance from Republican leadership.
Although a vocal critic of Hobbs, Representative Matt Gress commended the deal, acknowledging the compromise’s balancing act between program sustainability and fiscal accountability.
Democratic Representative Nancy Gutierrez praised the bipartisan effort for safeguarding essential services without negatively impacting other vulnerable groups. Despite the agreement, some Democrats, like Senator Lela Alston, criticized the delay and its resultant anxiety for families.
The final legislation draws required funds from a drug rebate fund, which Hobbs described as “readily available.” However, the compromise imposed new legislative oversight for Medicaid program expansions, requiring approval from the GOP-controlled Legislature.
Additional amendments include limiting parental payments to 40 hours per week, excluding nighttime hours, and prohibiting payments for non-specialized tasks. A special review of the program by the state Auditor General is scheduled for completion by August 2026, with $355,000 allocated for this purpose.
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