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Arizona Budget Stalemate Pushes State Toward Shutdown

Governor Katie Hobbs’s vetoes of two Republican budgets prompted her directive for state agencies to ready shutdown plans before the June 30 deadline.

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FILE - Arizona Democratic Gov. Katie Hobbs, center, delivers the State of the State address at the state Capitol as she is flanked by Speaker of the House Ben Toma, left, R-Glendale, and President of the Senate Warren Petersen, R-Gilbert, Jan. 8, 2024, in Phoenix. (AP Photo/Ross D. Franklin, File)
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Overview

  • The state Senate approved two GOP-passed budgets on June 25—a $17.3 billion plan and a $17 billion continuation measure—both expected to be vetoed by the governor.
  • Governor Katie Hobbs rejected the all-Republican budgets as partisan and reckless, insisting she will only sign a bipartisan spending plan.
  • House leaders have declined to consider the Senate’s $17.6 billion bipartisan budget that Hobbs and Senate Republicans negotiated, deepening the impasse.
  • Senate President Warren Petersen criticized the intraparty divide for blocking a deal and urged lawmakers to reach a consensus budget to keep the government open.
  • With no agreement by the June 30 deadline, Hobbs has ordered agencies to prepare for a government shutdown that could furlough thousands and halt state services.