Gov. Hobbs vetoes 2 Arizona budget plans as government shutdown deadline nears

PHOENIX – With less than a week to go before a potential state government shutdown, the Arizona budget saga continues to twist and turn.

The Republican-led state Senate approved two House budget proposals on Wednesday, but it didn’t take long for Democratic Gov. Katie Hobbs to veto them — as promised.

Monday is the state-mandated deadline to fund the next fiscal year, which starts July 1. If Hobbs doesn’t sign an Arizona budget by then, the state government would shut down for the first time.

Hobbs issued the following statement after rejecting the GOP proposals Wednesday:

“For months, I worked with leaders of both parties, in both chambers, to craft a bipartisan, balanced, and fiscally responsible budget that the majority of Senate Republicans support. That budget has pay raises for State Troopers and firefighters, cuts taxes on small businesses, invests in combatting Veterans homelessness, and makes childcare more affordable and accessible. It passed the Senate and should be voted on by the House.

“I have long made clear that both of the partisan and reckless House Republican budgets are unacceptable. They gut public safety, slash health care for Arizonans, harm businesses, fail to lower costs, and leave our Veterans out in the cold. These unserious budgets are wrong for the people of Arizona.

“Now, it’s time for House Republican leadership to move past their political stunts and work productively with their colleagues before they force an unnecessary state government shutdown of their own creation.”

House Speaker Steve Montenegro issued the following statement in response to Hobbs’ vetoes:

“I’m disappointed the Governor has now vetoed two responsible budgets passed by the House—each of which would have prevented a government shutdown and kept essential state services running.

“The House has done its job, twice. We passed a balanced budget that prioritized responsible spending and core needs. When that plan was rejected, we advanced a continuation budget to avoid disruption and allow time for further negotiations. Both were rejected.

“Despite the Governor’s actions, House Republicans will continue working to keep government operating and protect Arizona taxpayers from the consequences of political brinkmanship.”

How did Arizona budget negotiations get to this point?

When House Republicans unveiled their initial attempt at a spending plan two weeks ago, Hobbs called it “dead on arrival.” She specifically said the funding levels for health care and education were not acceptable. But that didn’t stop the Senate from passing it Wednesday.

The Senate already had passed its own $17.6 billion bipartisan budget package, one that Hobbs helped negotiate. However, House leaders expressed concerns about spending levels in the Senate plan and haven’t yet brought it to the floor for a vote.

Instead, the House passed a continuation budget on Tuesday night in an effort to keep the government open if negotiations continue beyond the deadline.

“What we did yesterday was to say, ‘Look, we want to continue to have these conversations,’” Montenegro told KTAR News 92.3 FM’s The Mike Broomhead Show on Wednesday, before the Senate passed both House spending plans.

Montenegro said every aspect of government is funded at least at last year’s levels in the continuation plan.

“I’m confident we’ll be OK,” he said. “These conversations just need to continue to happen.”

Montenegro first announced that the House would pursue a continuation budget on Saturday. Hobbs responded by saying House leaders “abdicated their responsibility” during the negotiation process.

“Let me be clear: Any kind of partisan ‘continuation budget’ will immediately meet my veto pen, if it even has the votes to reach my desk,” Hobbs said in a statement.

On Wednesday, with the clock ticking, she carried out her veto threat.

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