Republicans Accuse Katie Hobbs of 'Walking Away' During Budget Talks

Arizona's budget negotiations have hit a wall, and Republican legislative leaders are pointing the finger directly at Governor Katie Hobbs (D-AZ) after she "walked away" from the table.

Senate President Warren Petersen (R-AZ) didn't mince words after the breakdown, taking to X to write, "In a juvenile act, the governor has walked away from the table. She failed to lead on conformity, and now she is failing to lead on the budget. Temper tantrums are for toddlers, not governors."

Petersen and House Speaker Steve Montenegro (R-AZ) released a joint statement accusing Hobbs of distorting the facts and pushing a budget plan they say would hurt Arizona taxpayers and students for decades to come.

At the heart of the dispute is Gov. Hobbs' proposal to increase withdrawals from Arizona's Public Land Trust, a voter-protected fund intended to support K-12 education in the long term.

Legislative budget analysts warn her plan would slash the fund nearly in half over 20 years, dropping it from roughly $9.7 billion to $4.7 billion.

Her proposal calls for a 10.9 percent distribution rate over the next two decades, a significant jump from the previous 6.9 percent over ten years. Petersen and Montenegro called it "a long-term raid on a critical resource."

Leaders Critique

The leaders also criticized the broader budget proposal, saying it layers in $1.5 billion in new debt, higher taxes and fees, and revenue projections they described as unrealistic, including assumptions of strong investment returns with no economic downturns for 20 straight years.

Republicans say they presented Hobbs with a balanced alternative that cuts taxes for working families and funds schools without "gimmicks." They are accusing her of walking away because "her math doesn't work."

Petersen and Montenegro pledged to continue working toward a responsible budget in the coming weeks, but warned that a veto from Hobbs would have real consequences, including delayed pay raises, school funding uncertainty, and broader economic instability for Arizona families.

Moreover, gubernatorial candidate Andy Biggs (R-AZ) weighed in on the issue on X, calling Hobbs' exit a failure of leadership ahead of the upcoming election.

Governor Hobbs has not yet issued a public statement responding to the Republican leaders' accusations.