Arizona Legislature passes $18.3 billion bipartisan budget

The Republican-controlled Arizona Legislature passed an $18.3 billion state budget with bipartisan support, though some Democrats felt the deal included too many concessions to GOP legislators and not enough education funding.

Nearly every Republican lawmaker voted for the budget deal, which is highlighted by a massive state-level tax cut package mirroring federal cuts backed by President Donald Trump last year.

For months, Republicans in the House and Senate sent similar tax plans to Democratic Gov. Katie Hobbs, who promptly vetoed them.

Hobbs had said earlier in the year she would immediately sign a slimmed down version that included only tax cuts she thought would most benefit the middle class — but said she would only consider the larger Republican plan as part of budget negotiations.

Republicans refused to send her pared down version.

And House Speaker Steve Montenegro (R-Goodyear) said that persistence paid off.

“Now we're going to send up nearly the same package as the last time, and the governor is going to sign it,” he said.

The cuts are expected to reduce taxes by around $1.4 billion over the next several years.

“That's historic. It's meaningful money for Arizonans,” Montenegro said.

Howard Fischer/Capitol Media Services

Hobbs, who is expected to sign the deal, and Democratic leaders also touted aspects of the budget, though it lacked many of the high-profile wins they sought, like reforms to the state’s school voucher program or a renewal of the Proposition 123 education funding measure that expired last year.

House Minority Leader Oscar De Los Santos said Democrats were able to secure money to mitigate the impact of federal changes to Medicaid and food assistance programs, which have resulted in significant numbers of Arizonans losing benefits.

That includes $20 million to hire more staff at the state agencies that administer those programs to help Arizonans navigate those changes and ensure they don’t lose access because of bureaucratic hurdles.

“In a divided government, no side will get everything they want, but I want to thank community advocates and everyday Arizonans, and most of all, the House Democratic caucus for fighting for an Arizona we can afford,” De Los Santos said.

Democrats also touted $37 million in continued funding for low-income public schools and millions for food programs that provide free school meals to qualified students. They also secured funding for Sun Bucks, which provides grocery assistance over the summer for families that rely on those school meals.

But not all Democrats were on board with the budget deal, with a handful in each chamber voting against the spending package.

They pointed to the decision to continue funding state trooper positions as part of the Gang and Immigration Intelligence Team Enforcement Mission that could be used for “immigration enforcement and border security,” according to budget language.

The governor’s office has said that money will be used to combat drug trafficking. However, that could change if a Republican wins the governor’s office in this year’s election.

“We always talk here at the Legislature about the devil is in the details,” Sen. Sally Ann Gonzales (D-Tucson) said. “Well, I just read you what the devil is saying in this budget about this money being used for immigration enforcement.”

That funding was also included in last year’s budget, when Democrats successfully reduced it by $5 million.

“Is this a win?” said Sen. Catherine Miranda (D-Phoenix). “I would rather call it very good defense, because last session was a win. We slashed $5 million from the border funds. You all tried to bring back that $5 million, and we blocked it.”

Other Democrats complained that the budget did too little to rein in the school voucher program after a recent Auditor General’s report flagged a litany of issues with the billion-dollar program that they say put public dollars at risk.

At the same time, they said it did too little for public schools or universities, which lost $16 million in this budget. It also removes funding for adult education programs at the state’s community colleges.

Sen. Jake Hoffman (R-Queen Creek) had a theory as to why some Democrats were upset, arguing the budget was very similar to a Republican-only spending plan Hobbs vetoed, with some minor changes to bring Democrats on board.

“Once you set the press releases aside, it is very nearly the same budget that this chamber passed months ago, changed in ways that make it worse, not better,” he said.

But Hobbs, whose office negotiated the budget with Republican lawmakers, argued that’s not the case, saying the budget is a bipartisan win.

“When I meet with Arizonans, they tell me they want their elected officials to work together to lower costs, create jobs, keep their communities safe, and expand opportunity and freedom in every corner of our state,” she said in a statement. “Today, I’m proud to say that we have delivered.”