Overview

• The Arizona House approved a $17 billion continuation budget on June 24 to extend funding past the June 30 deadline.
• Governor Katie Hobbs has signaled she will immediately veto the skinny budget and has directed agencies to plan shutdown protocols.
• The GOP-controlled Senate, which backed a $17.6 billion bipartisan plan negotiated with Hobbs, adjourned without taking up the House’s proposal.
• Rifts between House conservatives and Senate Republicans widened after the lower chamber refused to negotiate a compromise that included pay raises for police and firefighters.
• If no budget is signed by July 1, nonessential state services will shut down and hundreds of employees may face furloughs.