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2mo ago

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.