Gov. Katie Hobbs signs $18.3 billion state budget into law

Massive tax cuts were part of an $18.3 billion bipartisan state budget Democratic Gov. Katie Hobbs signed into law on Saturday.

The state budget includes $1.4 billion in tax cuts over the next few years to align with federal cuts the Trump administration passed last year.

Hobbs advocated all year for only implementing some of those cuts, calling it the “middle class tax cuts package.” However, in negotiations with GOP lawmakers, who accused Hobbs of trying to take credit for Trump’s idea, she eventually adopted full tax conformity.

“Starting on July 1, Arizonans will have no tax on tips and overtime, a higher standard deduction and a senior tax credit and next year expanded child tax credit,” Hobbs said at a bill signing ceremony.

Hobbs touted the fact that every year she’s been in office, the state has cut taxes. Republican state lawmakers, who pushed for full tax conformity for months, also tout the tax cuts as a win.

Tax conformity had been included in an earlier partisan budget which Hobbs vetoed.

“While Arizonans are struggling with higher costs because of Washington's misguided policies, I am going to fight to lower costs and ensure that working class families in Arizona can get ahead,” she said.

The signed state budget also includes slight cuts to most state agencies, with some exemptions.