House Appropriations Committee Optimistic About Achieving Budget Approval by April

As the deadline to pay disability service providers approaches, Arizona’s House Appropriations Committee Chairman believes the Legislature can finalize a budget by the end of April. Rep. David Livingston, R-Peoria, stated on March 12 that both the House and Senate are aiming for an agreement before May 1.

“Our goal is to pass a budget and sine die before May 1 to fix last year’s budget, this year’s budget, and the three-year rolling budget all at the same time,” said Livingston. He emphasized that successful negotiations depend on all parties participating constructively.

The urgency is underscored by a projected $122 million shortfall for the Division of Developmental Disabilities (DDD), which may exhaust its funds for service providers by May. Republican lawmakers insist they won’t allocate emergency funds outside of a comprehensive budget agreement.

Despite the looming deadline, neither Livingston nor Gov. Katie Hobbs has initiated budget discussions. On February 26, Hobbs urged Republicans to refrain from using families with children with developmental disabilities as political leverage, requesting a clear presentation of their budget priorities.

“These are not Democratic or Republican kids. They are kids with disabilities that need the services the state provides,” Hobbs remarked, criticizing the GOP for its reluctance to support necessary funding.

Livingston mentioned that they have yet to meet with Hobbs’ staff regarding the budget. Historically, both budget negotiations in 2023 and 2024 concluded with Hobbs signing the budgets after May.

Political consultant Doug Cole noted that the debate over DDD funding has become highly politicized, particularly as both parties position themselves ahead of Hobbs’ re-election bid in 2026. He remarked on the narrative surrounding fiscal management being shaped by Republican voices.

On March 6, House Republican leaders issued a statement blaming Hobbs for the DDD financial crisis, claiming her administration made “reckless spending decisions” unaccompanied by legislative consultation. They demanded an end to political games and called for constructive collaboration to avert future crises.

Reports indicate that DDD’s funding troubles began with cuts to the Parents as Paid Caregivers program, initiated during the pandemic. Although Hobbs sought to allocate state funds for this program in 2024, legislators did not approve her request, forcing her to rely on pandemic recovery dollars.

With DDD enrollment continuing to grow, the fiscal shortfall persists. Republicans have signaled their intention to reform the program rather than provide emergency funding without broader budgetary reform.

During a House Appropriations hearing on February 19, Republicans rejected a Democratic amendment that proposed immediate funding for the DDD shortfall. Instead, they reiterated that any action would only occur within the context of a comprehensive budget plan.

While Hobbs has decried Republican proposals to severely cut DDD funding as inhumane, GOP lawmakers argue that the current budget process is not sufficient for addressing the complexities of funding disability services effectively.

Livingston expressed optimism that dialogue can resume swiftly, noting shared priorities on transportation and border law enforcement funding. “Once those meetings start, if the House, Senate, and Governor’s team want to get this done, we can meet daily,” he said.

The Arizona Developmental Disabilities Planning Council has urged the legislature to act quickly, warning that proposed cuts to DDD funding could have devastating effects on individuals with intellectual and developmental disabilities. They emphasized the necessity of adequate services for the well-being and rights of this vulnerable population.