PHOENIX, ARIZONA — Governor Katie Hobbs vetoed two proposed budget plans on Wednesday, criticizing them as partisan and reckless, with state lawmakers scrambling to finalize a deal ahead of a looming June 30 deadline to prevent a government shutdown.
Vetoed Proposals and Budget Negotiations
The vetoes came after House Republicans indicated that a budget proposal negotiated between the state Senate and Gov. Hobbs’ office lacked sufficient support in the House.
In response, the House introduced a new budget intended to keep the state government running past the end of the month, while buying more time for ongoing negotiations.
Earlier this month, the House had already passed a separate budget, which House Speaker Steve Montenegro defended as structurally balanced and conservative.
According to Montenegro, the GOP-favored budget included provisions to cut tuition, raise pay for law enforcement, repair critical roads, and reduce waste, all without raising taxes.
Senate Approval and Hobbs’ Veto
On Wednesday, the Arizona Senate approved both the House’s budget and the compromise plan. However, the proposals were immediately sent to Gov. Hobbs, who was expected to veto them, providing a “reality check” for the House, said Senator John Kavanagh, the Appropriations Committee Chair.
Gov. Hobbs vetoed both proposals, criticizing the political gamesmanship by the House Republicans.
In her veto letters, she highlighted that the Senate-approved budget included pay raises for State Troopers and firefighters, tax cuts for small businesses, investments in combating veteran homelessness, and measures to make childcare more affordable and accessible.
GOP’s Response and Concerns of Shutdown
In response to the vetoes, Speaker Montenegro expressed disappointment, accusing Hobbs of undermining efforts to protect Arizona taxpayers and keep the state government running.
Despite the vetoes, Montenegro emphasized that House Republicans would continue to work on keeping government operations functional.
“We’ll continue working to keep government operating and protect Arizona taxpayers from the consequences of political brinkmanship,” Montenegro said in a statement.
As the budget crisis unfolds, the Secretary of State’s office was alerted by the Arizona Department of Administration to prepare for potential shutdowns.
Agency heads were instructed to create contingency plans, including the possibility of furloughs, in case the state fails to pass a budget before the end of the month.
Read Also: Advocacy Groups Urge California Governor to Commute All Death Row Sentences
Hobbs’ Veto Record and Political Tensions
Gov. Hobbs has made it clear that she is committed to standing her ground in the ongoing budget battle, and her recent vetoes only add to her growing list of vetoed proposals.
According to her spokesperson Christian Slater, Hobbs has surpassed her previous veto record, which she had previously set in early 2023 when she vetoed a budget proposal she described as one-sided and an insult to Arizonans.
The House Rules Committee is expected to review the Senate’s budget bills on Thursday, as the pressure mounts to resolve the deadlock before the June 30 deadline.
What’s Next?
As the Arizona budget battle continues, both sides appear unwilling to back down. With a government shutdown looming, the pressure is mounting for legislators to come to an agreement that will keep state operations functioning.
It remains to be seen whether Gov. Hobbs and House Republicans can bridge the divide before time runs out.
What Do You Think?
Do you believe Gov. Hobbs’ vetoes were justified, or do you think the House Republicans’ budget was the better option for Arizona? How should lawmakers resolve this impasse before the June 30 deadline? Share your thoughts in the comments below on RidgecrestPact.org.
