Republicans Target Hobbs Over $122M Disability Budget Gap as Democrats Absent from Key Meeting

Arizona’s Division of Developmental Disabilities (DDD) faces a significant $122 million budget shortfall, raising alarms about the future of disability services in the state. Caregivers have been notified that they may not receive payment next month, as Republican lawmakers scrutinize Governor Katie Hobbs’ handling of the program.

The Republicans have created an ad hoc Committee on Executive Budget Mismanagement aimed at investigating the escalating costs within DDD, a branch of the Department of Economic Security. The looming financial crisis has put vulnerable populations at risk, with critical services hanging in the balance if the Legislature does not approve a supplemental budget by May.

Brandi Coon, co-founder of the Raising Voices Coalition, emphasized the impact on Arizona’s direct care workforce. “Nurses, therapists, habilitation providers are leaving due to instability and the looming threat of not being paid,” she stated. Coon stressed that rebuilding this workforce will be a long and challenging process.

As accusations of mismanagement fly, Governor Hobbs has opted to withdraw agency officials from committee hearings. In a letter to committee chair Rep. Matt Gress, R-Phoenix, she criticized the hearing as “shameless political theater” and insisted that her agency is ready for discussions on program sustainability only when politics are set aside.

Discontent regarding attendance also permeated from the Republicans, especially from Rep. Nick Kupper, R-Surprise, who expressed disappointment that agency heads did not attend the hearing. “I really wish that my counterparts would have come here today to work in good faith as well,” he lamented.

Democrats and the Governor’s Office are advocating for a “clean” supplemental bill to address the shortfall and provide necessary stability for families relying on DDD services. However, House Republicans have rejected this approach, citing inappropriate use of state funds for programs dependent on expired federal support.

“This Legislature will provide the funding necessary for DDD to remain intact and there will be guardrails placed on that,” declared Gress. He added that calls for a clean bill would not be entertained in the current legislative climate.

The April 3 hearing also featured insights from the Joint Legislative Budget Committee (JLBC) about the DDD’s enrollment growth and recent policy changes that contributed to the deficit. Increased enrollment and upcoming policy changes have exacerbated financial challenges.

Rep. Justin Olson, R-Mesa, noted, “The governor spent funds that were not authorized.” He urged Hobbs to identify available federal funds that could help mitigate the strain on Arizona’s disability care system.

Additionally, the committee touched on a testimony from former Idaho state Rep. Megan Blanksma, who discussed her experiences with Idaho’s equivalent program. Her insights reflected concerns about potential fraud and sustainability in that state’s program, which closed earlier this year.

Democrats chose not to attend the hearing after learning of Blanksma’s participation, criticizing her as being potentially dismissive of the concerns of families needing support. “No thank you,” retorted House Assistant Minority Leader Nancy Gutierrez, implying that such testimonies undermined the rights of those advocating for disability services.