dailyloe.com – Arizona Governor Katie Hobbs is threatening to veto nearly all bills unless Republicans publicly release their proposed state budget. Hobbs said this week she would veto every bill besides two safety bills unless she saw the Republican budget plan. She stated she has not been happy with what she has heard about the proposal so far. The governor noted the GOP proposal is focused on the wrong things.
Senate President Warren Petersen told The Center Square he hopes to release the budget within the next two weeks. Petersen, a Republican from Gilbert, said the two main areas of disagreement are Proposition 123 and tax cuts. He previously stated Republicans want to fully implement all tax cuts from the federal One Big Beautiful Bill Act. Governor Hobbs wants to apply only half of those tax cuts.
Hobbs criticized the political standoff in a statement. She said Arizonans deserve more than these political games. The governor said they deserve a budget that cuts taxes for the middle class. She added it should fund public schools and lower costs for everyday Arizonans.
Hobbs said she is ready to negotiate and that her door is open. She called for the legislative majority to put forward their budget proposal. Hobbs said they should then join her at the negotiating table. The goal is to pass a bipartisan, balanced budget like the past three years.
Petersen told The Center Square that Hobbs wants Republicans to balance the budget using Proposition 123. That proposition is meant for K-12 education funding. Arizona voters passed Proposition 123 in 2016. It increased the annual distribution from the state’s land trust fund from 2.5% to 6.9% for ten years.
The state land trust fund supports K-12 education by generating revenues. This comes from the sale and use of lands and investment of proceeds. The Arizona Joint Legislative Budget Committee provided that description. The fund is associated with acreage granted to the state.
In her Proposition 123 proposal, Hobbs calls for increasing its annual distribution. She wants to raise it to 10.9% over the next two decades. Petersen said Republicans told the governor this approach is not responsible. They argue her proposal would bankrupt the trust in 20 years.
Petersen added that once Republicans rejected the idea, Hobbs walked away from negotiations. The Senate president said Republicans want Proposition 123 to protect school choice. They also want the money to go directly to the classroom.
Petersen said Republicans have a balanced budget ready. He stated they are currently close to securing the 47 votes needed. Those votes are required to pass the budget in both houses of the Legislature.[]
Source: Yahoo
