Arizona leaders clash over opposing ~$18B state budget plans

Budgets for next fiscal year are being proposed by both political parties— as Gov. Katie Hobbs and Republican lawmakers are presenting opposing budgets that are going to affect Arizona taxpayers.

What we know:

GOP lawmakers were saying Gov. Hobbs is going to raise taxes, the same thing she's saying about GOP leaders. They both say the opposite party is not willing to negotiate, despite both saying they are. 

The budget does have some similarities, like giving tax cuts to the middle class, they're still arguing over very specific points, like how to fund education.

"Arizona's responsible budget deserves a governor's signature," says Arizona House Speaker Steve Montenegro.

"I think we need to make these cuts strategically, and smartly," Gov. Hobbs said.

What they're saying:

Montenegro says the House passed the Republican-led budget last week and the Senate passed it on May 4.

"So we have been at the table. We're going to continue to fight for Arizona," Montenegro said.

By the numbers:

The Republicans' budget is $17.9 billion, $800 million less than what Gov. Hobbs is proposing.

"What we will not do is allow this governor to raise taxes and spend more for her programs on the backs of every family in Arizona," Montenegro said.

It gives back almost $1.5 billion to Arizona taxpayers. Montenegro says it exempts taxes on tips and overtime.

"This budget focuses on what matters most to Arizona families, higher take-home pay, lower costs," Montenegro said.

The other side:

Hobbs is introducing an $18.7 billion budget. It includes a very similar proposal to deduct tips and overtime from being taxed.

"And not slash and burn with just across-the-board cuts like we're seeing come out of Washington, D.C.," Hobbs said.

But Hobbs is blaming Republicans for raising prices on healthcare, making cuts to food assistance programs, and saying the current ESA voucher program is unacceptable.

"It is a rampant drain of funds from public schools, and there is no accountability for how those funds are used," Hobbs said.

Dig deeper:

Meanwhile, GOP leaders say they're fully funding education and supporting seniors.

"Even while spending less, this budget still funds education, protects core services, supports vulnerable Arizonans," says Arizona Majority Leader Michael Carbone.

What's next:

But both parties agree it’s time to negotiate.

"It has things in there that even the governor has mentioned she wants, so we have been at the table," Montenegro said.

"I'm hopeful that we can get back to the table and start having real conversations," Hobbs said.

Hobbs did sign a bill moratorium for most bills, meaning she wouldn't sign anything into law until GOP leaders sit down to engage in negotiations.

They have until the end of the session in June to try and approve a budget. 

FOX 10 reached out to her office to see if that is still in effect and are waiting to hear back.

The Source: Arizona House of Representatives

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