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Arizona edges closer to government shutdown after House passes budget Hobbs vowed to veto

The Arizona Capitol in Phoenix on May 28, 2025.
Gage Skidmore/CC by 2.0
The Arizona Capitol in Phoenix on May 28, 2025.
Disarray continues in the Arizona Legislature, with Republican infighting on full display as the state marches toward a government shutdown. But there are signs a bipartisan budget package is on the move that Democratic Gov. Katie Hobbs could actually sign to avoid a shutdown.

Republicans in the Arizona House passed their own partisan budget on Tuesday for the second time in two weeks despite opposition from Democratic Gov. Katie Hobbs, who must give final approval to any budget package.

Hobbs and the Republicans who control the Arizona Senate already negotiated a bipartisan budget deal that passed out of the Arizona Senate last week, but House Republicans have refused to hear that spending package.

Instead, they’re calling for lawmakers to approve a so-called continuation budget that will continue funding for basic services to avoid a looming state government shutdown, which would be unprecedented and will occur if lawmakers don’t pass a spending plan by July 1.

A government shutdown

State Rep. David Livingston on Jan. 13, 2025.
Gage Skidmore/CC by 2.0
State Rep. David Livingston on Jan. 13, 2025.

If that happens, many government services will pause and government employees could be furloughed. Essential services like the Department of Public Safety would remain active, but lawmakers warned there will be a reduced DPS presence around the state.

Rep. David Livingston (R-Peoria) said schools would also be impacted by a shutdown, which he said could last weeks and put some school funding at risk.

“I don't know if schools would even start on time,” he said. “I mean, we're talking, you know, if we go 6 to 7 weeks of a government shutdown, I would imagine K-through-12 would not start on time in Arizona.”

Livingston, who controls the House committee that considers budget bills, said that’s why they need to pass the continuation budget. And he said that proposal is the only budget he will support to avoid a shutdown.

“What the governor's staff needs to understand is that this is her last chance,” Livingston said. “This is where we are, folks. We have a very basic budget to keep the lights on.”

Agree to disagree

But critics said the House’s continuation budget fails to address critical needs, like pay bumps and other funding for public safety.

Jeff Hawkins with the Arizona State Troopers Association said DPS will be hobbled without new funding included in the bipartisan budget backed by Hobbs and Senate Republicans. That would provide millions of dollars for raises for DPS officers to help keep them from leaving for other law enforcement agencies that have handed out raises recently, like the Maricopa County Sheriff’s Office and the Mesa Police Department.

“Those are folks that all now pay more than a state trooper,” said Hawkins, who told KJZZ last year that hundreds of trooper positions were unfilled.

Hawkins said the bipartisan deal would also pay to replace department vehicles and fix the DPS air fleet.

“I can tell you, without the money, those planes are grounded. So if you have an emergency and need air rescue, do not call DPS, rangers will not respond,” he said.

How did we get here?

Arizona House Minority Leader Oscar De Los Santos (left) chats Monday, June 23, 2025, with House Speaker Steve Montenegro.
Howard Fischer/Capitol Media Services
Arizona House Minority Leader Oscar De Los Santos (left) chats Monday, June 23, 2025, with House Speaker Steve Montenegro.

The House and Senate took a series of week-long breaks starting in early May, ostensibly to work on a state budget.

The House passed a Republican-supported budget on party lines on June 13, which Democrats didn’t even vote on and which Hobbs promised to veto.

The Senate never took the first House budget up for a vote. Instead they, introduced a bipartisan budget negotiated between Senate GOP leaders and Hobbs’ staff.

The Senate passed their budget on June 20 with some bipartisan support and some bipartisan opposition. But, the House Republicans went home rather than take it up, and began to criticize the Senate budget openly.

The House introduced their continuation budget on Monday and sent it to the Senate on Tuesday.

Senate President Warren Petersen (R-Gilbert) said in a text that he will put the new House budget up for a vote in the Senate “out of respect.”

What’s next?

Katie Hobbs in April 2024
Marnie Jordan/Cronkite News
Katie Hobbs in April 2024

House Republicans passed the continuation budget despite those concerns.

Each budget bill passed 31-25 on party lines without the support of Democrats.

However, even some of the Republicans who voted for the package acknowledged it fails to adequately address all needs.

Arizona Rep. Alexander Kolodin (R-Scottsdale) speculated on the House floor that he believes the continuation budget will be sent along to Hobbs’ desk to be vetoed in order for the governor and Senate to apply more urgency to passing their own preferred budget.

“Make no mistake. The purpose of this bill is to go over to the Senate, to be voted out of the Senate and to be vetoed by Katie Hobbs at the eleventh hour so that the Senate and others involved can wash their hands of the Senate-Hobbs budget. Can say, ‘Look! We tried to get a conservative budget, but Katie Hobbs vetoed it,’” Kolodin said.

Hobbs spokesperson Christian Slater responded to Kolodin’s theory saying that his comments weren’t directed at Hobbs and she believes the continuation budget is nothing more than “pointless political grandstanding.”

There were some signs of cracking in the House Republican coalition ahead of the final House vote.

On the House floor, Rep. Teresa Martinez (R-Casa Grande) thanked former Speaker of the House Ben Toma for his leadership, rather than current Speaker Steve Montenegro (R-Goodyear), because they negotiated a budget much faster.

“I think this is a exercise in - well, you know, just nonsense,” Martinez said.

To talk about budget drama at the state Capitol overnight, the ongoing fight between Maricopa County supervisors and the recorder and more, The Show sat down with Paul Bentz of HighGround and attorney Tom Ryan.

During a Republican caucus meeting ahead of the full House vote, Montenegro attempted to shut down Livingston as he explained the budget bills.

“Chairman, I think we’ve heard enough,” Montenegro said.

“Well, thank you, Mr. Speaker, but I’m not done. I could speak on every bill if you wish,” Livingston said before continuing his explanation.

Livingston said the purpose of the continuation budget is to keep the government funded while negotiations continue.

He said he is open to advancing separate bills to fund DPS and address transportation needs, and said Hobbs could call special sessions to address various areas of need after the budget passes.

But all of that looks unlikely, because Hobbs has remained steadfast that she won’t sign the continuation budget if Senate Republicans choose to send it her way following the House vote.

Slater said that Hobbs’ comments from Saturday still stand.

“For months I have worked with leaders of both parties, in both chambers, to craft a bipartisan, balanced, and fiscally responsible budget. Sadly, House Republican leadership abdicated their responsibility and refused to meaningfully participate in those bipartisan conversations. Now, to cover for the failures, they are attempting to jam through an irresponsible and partisan ‘budget,’” Hobbs stated at the time.

Rep. Sarah Liguori (D-Phoenix) said Monday that the continuation budget isn’t the only way to avoid a government shutdown - there’s still the Senate plan.

“We are not forced to shut down the government if this budget gets vetoed. I want to make that clear. We often say a budget is a moral document. This budget is a political choice,” she said.

Or, as House Minority Leader Oscar De Los Santos (D-Laveen) said, “This budget is a betrayal of the mandate of the people of the state of Arizona. This is a political, partisan tantrum that's going nowhere.”

House Democrats urged Montenegro to put the Senate budget up for a vote.

The Senate is scheduled to reconvene on Wednesday.

EDITOR'S NOTE: The story has been updated to correct the spelling of Teresa Martinez's name.

More Arizona politics news

Camryn Sanchez is a senior field correspondent at KJZZ covering everything to do with Arizona politics.
Wayne Schutsky is a senior field correspondent covering Arizona politics on KJZZ. He has over a decade of experience as a journalist reporting on local communities in Arizona and the state Capitol.