budget
House Unveils Bold Independent Budget, Shocking Senate and Governor

House Republicans have unveiled their own budget proposal, a $17.3 billion package that has received swift disapproval from both Governor Katie Hobbs and Senate leaders.
The proposal advanced through the House Appropriations Committee with a partisan vote. However, Hobbs criticized the plan for cuts to essential health care and education funding.
“From day one, I have worked across party lines to develop a budget that is responsible and balanced. This partisan budget is not that,” Hobbs stated. “House Republicans are playing political games with the future of middle-class families. My focus remains on crafting a bipartisan budget that ensures public safety, reduces childcare costs, supports public education, and provides for our veterans.”
While some House Republicans acknowledge that this budget will not be the final version expected to receive Hobbs’ signature, discussions for amendments are ongoing. Appropriations Chairman David Livingston encouraged House members to contribute ideas as negotiations continue.
“This budget serves as a robust financial roadmap, with 85% of it likely to become law,” Rep. Matt Gress affirmed from the House floor.
Both Livingston and Senate Appropriations Chairman John Kavanagh pointed out that the budget was developed without Senate collaboration, a move they deem unprecedented.
Democrats, meanwhile, have labeled the proposal an ineffective exercise, claiming Republicans have been absent from serious negotiations for weeks leading up to the committee hearing.
“House Republicans have been completely MIA from budget talks for weeks,” denounced House Minority Leader Oscar De Los Santos. “This latest effort is a desperate attempt to regain relevance driven by the far right.”
In contrast, Livingston and Gress asserted that the budget reflects input from House Democrats, the Senate, and the Governor’s office. Gress highlighted plans to fully fund the Arizona Health Care Cost Containment System’s Parents as Paid Caregivers program, along with $3.8 million earmarked for reduced-price school lunches.
The budget also proposes a 5% salary increase for correctional officers, addressing one of Hobbs’ priorities, along with $94 million allocated for much-needed infrastructure improvements on key highways.
Additionally, the budget aims to reduce public university tuition for in-state students by 2.5%, saving about $300 per student.
The Joint Legislative Budget Committee previously indicated available resources of approximately $277 million, leading both parties to recognize the limited funding landscape.
“This is an unusual budgeting process without an agreement with the Senate or the governor,” Livingston remarked. “We need to address the disparities between our plan and that of the governor.”
Democrats are preparing to unveil a bipartisan alternative budget next week. Arizona Education Association President Marisol Garcia expressed dismay over proposed cuts to public school funding, particularly aimed at assisting underprivileged students.
“How long must our educators cover these gaps out of pocket?” Garcia questioned.
Concerns were also raised around provisions preventing public universities from using any funds for tuition or costs related to undocumented students, a move criticized as potentially overturning voter-approved Proposition 308.
“That is absolutely egregious,” Rep. Lorena Austin stated.
Earlier, Hobbs pointed out the budget proposed significant cuts to Medicaid and a sizable increase to the state hospital tax.
House Democrats have opted to withhold specific details of their alternative budget, planning to present it publicly next week.
“While it won’t be a perfect budget, it will reflect our state’s priorities,” De Los Santos said.
Livingston confirmed that the House intends to amend its budget on June 13, aiming for a vote if sufficient support is garnered. He noted the Senate is likely moving forward with the governor’s proposal.
“If that’s what they want to do, let’s acknowledge it’s the governor’s budget modified in the Senate,” he remarked.
The Senate is set to convene on June 16 to unveil its own budget bills.