AZFEC Demands Accountability: Lawmakers Must Confront Hobbs on Financial Scandal Fallout

By the Arizona Free Enterprise Club |

Recent actions by Governor Hobbs have ignited significant controversy regarding budget management in Arizona. Her administration has drawn criticism for what many see as incompetence, culminating in a new budget request aimed at addressing a financial shortfall in the Division of Developmental Disabilities (DDD).

The proposed supplemental appropriation seeks to alleviate a projected funding gap within the Arizona Department of Economic Security (DES) that could leave services for individuals with disabilities in jeopardy by May. This situation places pressure on a program critical for many Arizonans reliant on state assistance.

Hobbs has attempted to deflect accountability onto the state legislature, but scrutiny suggests the root of the problem lies with her administration’s choices. A specific concern is the Parents as Paid Caregivers program, initially launched during the pandemic and funded entirely by the federal government. While designed as a temporary measure, Hobbs has secured federal approval to extend it indefinitely.

However, this extension comes with significant financial implications. Starting April 1, Arizona must contribute 32% of the program’s costs. In prior budget discussions, Hobbs sought funding for this obligation, but her proposal was rejected by lawmakers. Instead of addressing the issue proactively, she chose to continue funding the program without a reliable financial plan, underestimating legislative pushback and the challenges posed by upcoming elections.

The result is stark: a DDD shortfall that has surpassed $100 million, raising concerns about the sustainability of essential services moving forward. Stakeholders are now left to wonder how the administration plans to rectify this fiscal crisis.