The state Legislature continues its break next week. GOP leaders said they would use their time out of session to work on a new state budget ahead of the end of the fiscal year on June 30.
There are other issues they need to address as well — including a renewal of Proposition 123, which voters approved nearly a decade ago and is set to expire. The measure takes money out of the state land trust and gives it to schools.
Republican lawmakers and Gov. Katie Hobbs are not in agreement over what a new version should look like, including a proposal from the GOP to ask voters to add protections for ESAs — basically school vouchers — to the state constitution.
Gov. Hobbs joined The Show to talk about some of these issues, starting with Prop 123 and where she and lawmakers are on coming up with a plan to renew it.
Full conversation
KATIE HOBBS: I put forward a plan that pays our teachers more and invests in public education. And unfortunately, the Republicans in the Legislature have chosen to politicize public education. They’re trying to bog this proposal down with constitutional protection for the unaccountable ESAs.
So we’re still pushing for a plan that pays teachers more and doesn’t constitutionally protect this program. And at the end of the day, voters will be able to have the final say, but we’re not even close to getting something through the Legislature at this point.
And unfortunately with their politicizing, what that’s going to do — this funding expires this year. And because they’re politicizing it, they’re going to have to kick it to the November 2026 ballot instead of having me sign legislation that would allow for an election this year. And so we’re kicking it down the road, and we need solutions now.
BRODIE: Are there any areas of agreement? I know in the past, you and the Republicans have had different percentages that you’d like to take out of the trust and where that money would go. Are there areas of agreement here?
HOBBS: Yeah. Well, so far we haven’t seen the plan that the Senate Republicans are trying to push through. So I don’t know the answer to that. I think that the amount from the trust was an issue that we were concerned about when we first passed this in 2016. However the 10 years it’s been in place have shown that the trust can sustain it, and our projections show we could, we could even take more.
But we really want to get a plan that increases teacher pay, which is something we know needs to happen across the state. And I don’t even know if there’s agreement from the Republicans on that.
BRODIE: If the Republican plan that they send to the ballot — because of course it wouldn’t go to you, it would just go right to the ballot — if that were to include constitutional protections for ESAs, does that mean that you don’t support the plan?
HOBBS: That is absolutely a nonstarter for me. What I’ve said from the get-go is that I want to see a bipartisan plan, and certainly there aren’t any Democrats in the Legislature that would get on board with that.
And there’s bipartisan support among Arizonans for the ESA program, but I don’t think there’s bipartisan support for the current iteration of that program that has no accountability and no protection for taxpayers. It’s a $1 billion boondoggle, and I certainly don’t want to provide constitutional protection for that.
BRODIE: So what would that mean? Again, assuming that that is the plan that goes to the ballot, would you be in favor of a separate plan that didn’t include the vouchers? Or what would that mean?
HOBBS: I think if that’s what they try to put forward, it’s going to face challenges from the get-go. I don’t want to get too in the weeds, but constitutional amendments that go to the ballot have to focus on a single subject.
And so it’s ripe for challenge before it even gets to the ballot. I’m sure that’s something that they might be considering, but I would anticipate multiple lawsuits filed if that’s what they end up putting forward.
BRODIE: All right. One other thing I know you guys are working on is the state budget. Obviously, that was the point of legislative leadership deciding to take a couple-week break to focus on that. I know you’re not a huge fan of that approach.
Are you making any progress? Are you getting closer to passing or coming up with an agreement on a budget?
HOBBS: Look, I put out my budget in January. It lowers costs. It works to protect the border. It, gives police officers a raise. It addresses veterans’ homelessness.
We have yet to see what the Republican priorities are. And before we can negotiate a budget, they need to show us what their priorities are. And we’re not even there yet.
BRODIE: Have there not been meetings between at least your office, your staff and legislative staff?
HOBBS: On the budget, no.
BRODIE: Really? So it sounds like you’re not anywhere close to having an agreement,what, like five weeks ahead of the end of the fiscal year?
HOBBS: That is correct. Yes.
BRODIE: OK. Another issue that I know has been ongoing throughout the session is a bill dealing with Chase Field downtown. There’s been a few different iterations of this. Is that one that there might be some agreement?
Because it seems like there’s been some bipartisan agreement on that. Although the city of Phoenix, the county is not necessarily on board with what’s been at the Legislature so far. What’s the status of that?
HOBBS: Yeah. So I want to get a bill that will help keep the Diamondbacks in Phoenix, that will create jobs and that protects taxpayer dollars. I think we’re headed in the right direction. I think we’re close. I have brought together business leaders, the elected leaders of the county and the city, along with legislators to hammer out a plan that works.
It is important to keep the Diamondbacks in Phoenix. It will hurt small businesses and Arizonans if they’re not. But we have to make sure we’re putting in reasonable guardrails for our taxpayer dollars. And I feel like we’re very close. We’re having ongoing discussions, and I’m optimistic about getting that done.
BRODIE: So is there a way to make sure that there is some amount of money raised from the state — because that seems to be what the Diamondbacks want — to put into this fund, while not taking a ton of money from the county and the city of Phoenix and even the state?
HOBBS: So the idea of the stadium district is that the revenue generated by the sales at Chase Field are what are funding the needs. I’m not in support of a plan that takes general fund dollars, and I don’t think that’s on the table right now.
But I know I don’t want to get into the specific details because those are changing. But yeah, general fund dollars are off the table here.
BRODIE: No, but if right now the sales taxes go to the state, the county and the cities — and I know that’s one of the issues that Mayor Kate Gallego has had, that some of the county supervisors have had is that if the plan, as it has been discussed in the Legislature, were to go into effect, they would lose out on all of that tax revenue that they currently get from sales of Chase field.
So it seems like there’s a balance to be struck.
HOBBS: Yeah. And that’s part of the ongoing discussion. I think we’re looking at what kind of cap makes sense. The fact of the matter is if the Diamondbacks are not playing at Chase field, there is no revenue generated at all. So the city and the county are losing that revenue period.
And so we want to find a plan that strikes the right balance and, and look at a reasonable cap there on in terms of how much of the revenue goes back into the stadium.
BRODIE: Before I let you go, I want to ask you: Obviously, none of us can see the future. But there’s been a lot of discussion about how you are very, very close to your veto record set from 2023. You’re, I think, five short. Given what is still left to go in the Legislature, do you think that record is going to stand after the end of May or June?
HOBBS: Well, I don’t know what kind of bills — you know, this Legislature has sent me bills that I’ve already vetoed this session, and they’ve sent them again to me this session. And there’s always that chance to resurrect something that seems like it’s dead. And I don’t know what’s sitting in that pile.
But the things that we’ve just touched on, those are really the big outstanding issues. And so, hopefully the Legislature gets to work on solving these tough challenges instead of stuff that infringes on Arizonans’ freedoms and doesn’t move us forward on tackling our tough problems.
BRODIE: Do you make anything of the number of bills you veto or have to veto, given that the first year it was pretty high? Second year was lower. Now the third year we’re back up high again?
HOBBS: You know, I think that a lot of it is political gamesmanship. I’ve been very clear that I’m not gonna sign legislation that takes away Arizonans freedoms and is not focused on solving tough problems. I get a lot of legislation that is solutions in search of a problem.
And I have asked the Legislature to work with me on the Arizona Promise, bringing about freedom and security and opportunity for Arizonans. And I’m continued to be ready to do that.
