Arizona state budget
Hobbs Unites Parties on Budget Deal, Averting Shutdown Crisis

Governor Katie Hobbs has officially signed a bipartisan budget on June 27, successfully averting a potential government shutdown after weeks of contentious negotiations between the Legislature’s two chambers.
This budget, worth $17.6 billion, largely mirrors the proposal previously negotiated with the Senate. House Republicans, initially resistant, ultimately agreed to pass the Senate’s version after Hobbs vetoed their own proposals on June 25. Minor adjustments were made before the House approved the Senate budget the following day.
In her statement, Hobbs highlighted key achievements of the budget, including salary increases for state police and firefighters, initiatives to make childcare more affordable, advancements in drug smuggling and human trafficking prevention, and investments in public education across all levels.
Christian Slater, Hobbs’ communications director, described the budget as a significant victory, noting the inclusion of major initiatives such as funding for childcare programs and support for veteran homelessness. This budget marks the third bipartisan bill passed during Hobbs’ tenure amidst a divided government.
Both House and Senate Republicans expressed approval for the budget despite earlier struggles over its passage. Senate President Warren Petersen emphasized the importance of a bipartisan approach in his address, criticizing those who sought to score political points at the expense of effective governance.
Petersen reiterated the need for unity among lawmakers as the Senate finalized the budget for Hobbs’ signature. He urged colleagues to ensure this collaborative spirit continues moving forward, indicating that public scrutiny should not be underestimated.
While House Republicans added about $17 million in spending and amendments to the Senate budget, House Speaker Steve Montenegro framed this development as a testament to their leadership during budget negotiations. He championed his party’s commitment to key values and priorities throughout the complex process.