PHOENIX (KVOA) – Gov. Katie Hobbs has vetoed a Republican-backed budget proposal, calling it unbalanced and reckless in a statement she released on Tuesday.
Hobbs said the budget would force Arizona to default on debt obligations, endanger vulnerable children and slash public safety funding. The governor criticized the proposal for providing more than $600 million in tax breaks to billionaires, data centers and special interests while potentially removing up to 200,000 Arizonans from healthcare and reducing food assistance.
“Arizonans cannot afford chaotic and dysfunctional Washington-style budgeting in our state government,” Hobbs said.
The vetoed budget would end funding for the Rio Nuevo project, which the governor’s office states would eliminate jobs and cause the state to default on debt obligations, according to the Arizona Governor’s Office. The proposal also cuts $16 million from the Department of Child Safety, potentially forcing reductions in social worker spending and putting vulnerable children at risk.
Additional cuts outlined by the governor’s office include $1.8 million from SUN Bucks, which would leave 640,000 children without summer food assistance and forfeit $79 million in federal funds. The budget provides no funding for the Colorado River Litigation Fund or Colorado River Protection Fund, undermining the state’s ability to secure water rights, the governor’s office states.
The proposal sweeps money from the Arizona Competes Fund, risking 21,000 jobs and limiting the state’s ability to compete for business investments, according to the governor’s office. It also cuts $2.2 million from the Department of Forestry and Fire Management with no investment in wildfire suppression.
The budget sweeps the Border Security Fund, removing resources from local law enforcement, the governor’s office states. It also includes previously vetoed bills targeting healthcare and food assistance programs.
Hobbs criticized the legislature for refusing to sweep their own $28 million fund, which includes $6 million that may be used for carpet replacement, media studio upgrades and office renovations, according to the governor’s office.
“Let’s get back to the negotiating table and get serious about delivering for Arizonans,” she said.
April Bradham, president and CEO of the Arizona Food Bank Network, said the budget would hurt vulnerable families.
“Food banks are already serving record numbers of people, and, for the first time ever, food bank visits each month are outpacing the number of people who access help from SNAP,” Bradham said.
Nicole Newhouse, executive director of the Arizona Housing Coalition, said the budget fails to address housing affordability concerns. The proposed $14 million transfer from the Housing Trust Fund undermines investments in housing and shelter infrastructure, potentially disrupting commitments already made to communities across Arizona, according to the governor’s office.