Arizona’s Republican-controlled House passed a $17.3 billion budget package on a 31–0 party-line vote Friday evening, bypassing both Senate negotiations and Governor Katie Hobbs’ administration.
Partisan Push in House Raises Eyebrows
On June 13, 2025, Arizona House Republicans approved a standalone budget after Democrats staged a boycott, citing inadequate K‑12 funding, Medicaid cuts, and omission of childcare support azcapitoltimes.com. The 31–0 vote came as all 29 Republicans present voted in favor, while Democrats remained absent. Governor Hobbs immediately labeled the measure “dead on arrival” due to its shortcomings .
Funding Priorities Spotlighted
The proposal includes a 5 % salary increase for Department of Public Safety and corrections officers, $94 million earmarked for infrastructure projects such as I‑10 and Highway 347, and a 2.5 % tuition reduction followed by a three-year freeze for in-state students . It also preserves funding for the Division of Developmental Disabilities’ Parents as Paid Caregivers Program—a critical initiative serving thousands .
Senate and Governor Gear Up for Alternative Deal
While the House moves forward independently, Senate Republicans and Governor Hobbs are expected to unveil a separate, consensus-driven budget early next week azcapitoltimes.com. Negotiations have centered on K‑12 education funding tied to Proposition 123, veteran and emergency personnel compensation, and the inclusion of member-directed lump sums—proposed at $90 million—with Hobbs emphasizing childcare affordability, veteran homelessness support, and first-responder pay .
Republicans Defend Unilateral Tactics
House Appropriations Vice-Chair Matt Gress described the move as necessary to communicate priorities to the Senate ahead of its vote . He noted similarities between the House plan and the anticipated Senate version, though he acknowledged the House’s proposal is “more conservative” . Meanwhile, Senate Appropriations Chair John Kavanagh expressed support for balancing statewide projects with local initiatives .
Looming Deadline and Budget Impasse
Arizona’s constitution mandates a balanced state budget before the fiscal year begins on July 1. With no bipartisan agreement yet, delays raise risks of government disruption and financial uncertainty . Revenue forecasts have dropped from $612 million to $277 million, further tightening budget flexibility .
Key Issues to Watch
- K‑12 Education Funding: Negotiations hinge on extending Proposition 123 revenue-sharing to support Arizona schools.
- Healthcare and Medicaid: Democrats and the governor criticize the House plan for deep cuts to medical services.
- Childcare Funding: Hobbs insists on restoring support for childcare affordability before signing any budget.
- Lump Sum Spending: Debate continues over the distribution of earmarked legislative funds.
What Comes Next
The Senate is expected to introduce its version of the budget early next week. Governor Hobbs has pledged to sign a bipartisan plan but urged Republicans to demonstrate good faith by addressing core concerns. As legislators work toward reconciliation, both sides face growing pressure to resolve the budget by the June 30 deadline.
Should talks collapse, the state risks operational interruptions. Arizona residents are monitoring developments closely, especially in education, public safety, and social services sectors that rely heavily on state funding.