Featured

Arizona Republicans Unveil Budget Plan With Sweeping Tax Cuts and Agency Spending Reductions

Arizona Republican lawmakers introduced a budget proposal this week that includes significant tax relief and spending reductions across most state agencies, though it leaves out an education funding mechanism that has become a sticking point between the GOP-controlled Legislature and Governor Katie Hobbs (D-AZ).

The plan spends roughly $800 million less than Gov. Hobbs' own budget proposal and includes $1.45 billion in tax relief. It would align state tax law with federal cuts passed by Congress, including eliminating taxes on tips and overtime.

To offset costs, the proposal calls for across-the-board cuts of approximately 5% to nearly all state agencies, expected to save around $99 million.

The Department of Public Safety, Department of Corrections, and Department of Child Safety would be exempt from those reductions.

Additional savings would come from eliminating solar energy tax credits, cutting funding to economic development organizations, and incorporating roughly $100 million in government efficiency savings previously outlined by Hobbs.

Reductions in Funding

KJZZ also reports that the plan reduces funding for Arizona State University by $16 million, cuts $7 million from the Superintendent of Public Instruction's Office, trims $4 million from graduate medical education, and reduces community college funding.

Senate President Warren Petersen (R-AZ) and House Speaker Steve Montenegro (R-AZ) said the proposal funds core services while offering Arizonans cost-of-living relief.

"We're moving a budget that cuts taxes, funds core services, shrinks government, includes priorities both sides have raised and gives Arizona a responsible path to finish the session," Petersen said.

Notably absent is any renewal of Proposition 123, a voter-approved education funding mechanism that expired last year and had directed roughly $300 million annually to public schools.

Republicans said budgeting around a measure still requiring voter approval would be fiscally irresponsible.

The budget arrives more than a month after budget negotiations broke down, with each side blaming the other for the impasse.

Hobbs has said the absence of Prop. 123 is "incredibly concerning," calling it a once-in-a-decade opportunity to direct a billion dollars into public education without raising taxes.

Republicans contend the governor walked away from the negotiating table, and they are moving forward regardless.

Ericka Rodriguez Diaz

Ericka Piñon is a reporter for Cactus Politics specializing in Arizona Legislative Correspondent. With 1 year on the ground in Phoenix, Arizona, they have been cited by Cactus Politics, Big Energy News, The Floridian Press, and Texas Politics. Her focus is on Public Relations and Communications. Email: Ericka@dnm.news

Recent Posts

SNAKEBITE— 6.9.26— Bliss's Anti-Prostitution Bill Becomes Law— Hamadeh Demands Fed Oversight of CA Elections— AZ Outlaws Nicotine for Kids, Much More...

Bliss's Anti-Prostitution Bill Becomes Law State Representative Selina Bliss (R-1) is celebrating the signing into…

4 hours ago

Mark Kelly Introduces Bipartisan Bill Improving Child Literacy

Senator Mark Kelly (D-AZ) has introduced bipartisan legislation to improve child literacy rates amidst an…

4 hours ago

Andy Biggs's TRUE Accountability Act Unanimously Passes House

Representative Andy Biggs (R-AZ) is celebrating the unanimous passage of his Taxpayers Resources Used in…

4 hours ago

Selina Bliss's Anti-Prostitution Bill Signed Into Law

State Representative Selina Bliss (R-1) is celebrating the signing into law of House Bill 2720,…

24 hours ago

Abe Hamadeh Calls for Federal Oversight of California Elections Following LA Mayor Race

Representative Abe Hamadeh (D-AZ) is pushing for sweeping changes to how elections are conducted in…

1 day ago

Arizona Officially Outlaws Nicotine Companies Marketing to Kids

For years, nicotine products have been creeping into the hands of teenagers through flashy packaging…

1 day ago