Rep. Livingston Calls on Gov. Hobbs to Own Up to Financial Mismanagement

By Matthew Holloway |

Rep. David Livingston, Chairman of the Arizona House Appropriations Committee, has sent a letter to Governor Katie Hobbs urging her to accept accountability for a $122 million shortfall in the Arizona State Developmental Disabilities (DDD) program. He criticized her administration for failing to engage in discussions aimed at resolving the issue. Livingston asserted that “Despite repeated requests for meaningful discussions, the Governor and her staff have refused to engage.”

Hobbs has encountered criticism not only from Livingston but also from the Goldwater Institute and Arizona State Treasurer Kimberly Yee. Yee recently characterized the situation as “unfortunate gross financial mismanagement by the Hobbs Administration.”

In his communication, Livingston detailed his efforts over the past seven weeks, during which he held seven Appropriations Committee hearings. He expressed frustration over the lack of dialogue from Hobbs’ office, stating that “rather than engaging with the Legislature in good faith, you and your staff have chosen to issue public statements, assign blame, and demand more taxpayer dollars—without addressing the broken system that led us here.”

The $122 million shortfall, according to Livingston, is the result of unilateral decisions made by the governor’s administration, without prior consultation with the Legislature. He raised concerns that taxpayers are now being asked to cover the repercussions of these decisions.

Last week, Democrats proposed an additional $122 million in spending to address the shortfall, but Livingston argued that this plan lacked structural reforms or accountability measures. He dismissed it as a temporary fix rather than a sustainable solution, emphasizing that effective budgeting requires more than political maneuvering.

Livingston pointed out that Hobbs’ budget proposal is significantly unbalanced, omitting over $800 million in expenses. He noted that the administration suggested lawmakers “pass it” while trusting their handling of the details, a proposal he deems irresponsible.

As families in Arizona face uncertainty regarding critical services, Livingston urged Hobbs to collaborate with the legislature to create a responsible solution. He emphasized the need for accountability, long-term planning, and meaningful reforms to ensure funding for the DDD program. “You can work with us to fix this problem responsibly, or you can continue making public statements while Arizona families and service providers face uncertainty,” he wrote.

Closing his letter, Livingston reaffirmed the Republican majority’s commitment to responsible budgeting, ensuring Arizona families receive necessary services without irresponsible spending. He urged Hobbs to take responsibility and engage in constructive discussions.

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.