(The Center Square) – Arizona Governor Katie Hobbs has issued a threat to veto almost all legislative bills unless Republicans make their budget proposal public.
It appears Hobbs’ demand might soon be met. Senate President Warren Petersen (R-Gilbert) informed The Center Square that he anticipates the budget’s release within the next fortnight.
Petersen identified Prop. 123 and tax cuts as the primary points of contention between Republicans and Hobbs. He previously stated to The Center Square that Republicans seek full implementation of tax cuts from the federal One Big Beautiful Bill Act, whereas Hobbs prefers to implement only half.
Earlier this week, Hobbs reiterated her intention to veto every bill, save for two safety-related ones, if the Republican budget isn’t presented. She expressed discontent with the preliminary details, suggesting the GOP proposal misprioritizes issues.
“Arizonans warrant more than mere political maneuvering. They deserve a budget that offers tax relief for the middle class, adequately funds our public education system, and reduces everyday costs for citizens. I am prepared to negotiate, and my door remains open,” Hobbs stated.
She further added, “The legislative majority must present their budget proposal and then engage with me at the negotiating table so we can enact a bipartisan, balanced budget, as has been our practice over the last three years.”
Petersen informed The Center Square that Hobbs is advocating for Republicans to “balance the budget using Prop. 123,” a measure specifically designated for K-12 education. In 2016, Arizona voters approved Prop. 123, which boosted the annual disbursement from the state’s land trust fund from 2.5% to 6.9% for a decade.
The state land trust fund contributes to K-12 education support by “generating revenues via the sale and use of lands and the investment of proceeds associated with acreage granted to the state,” as detailed by the Arizona Joint Legislative Budget Committee.
Hobbs’ proposal for Prop. 123 suggests raising its annual distribution to 10.9% for the next twenty years.
Petersen mentioned that Republicans informed the governor that utilizing the proposition to balance the budget would be irresponsible, as her plan would deplete the trust within two decades.
He further stated that following the Republicans’ rejection of the concept, Hobbs withdrew from negotiations.
The Senate president affirmed that Republicans desire Prop. 123 to safeguard school choice and ensure funds are directed towards classrooms.
Petersen confirmed that Republicans possess a balanced budget and are nearing the acquisition of the 47 votes required for its passage in both legislative chambers.
He explained that once Republicans have secured these votes, they will advance the budget for a vote.
Petersen concluded by stating that Republicans “must collaborate with the governor,” emphasizing their consistent readiness to “engage in negotiations with her.”