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Arizona Gov. Katie Hobbs Clashes with GOP over Proposed $17.9B State Budget

The plan would trim most state agencies by 5% and redirect savings to tax relief, while Gov. Katie Hobbs says it would cut safety-net programs.

  • On Monday, Arizona Republican lawmakers unveiled a $17.9 billion budget proposal, spending about $800 million less than the $18.7 billion plan proposed by Governor Katie Hobbs.
  • Tensions escalated after Hobbs threatened to veto all legislation until a budget surfaced, prompting legislative leaders to advance the framework amid her challenging reelection battle.
  • The plan includes $1.45 billion in tax relief over three years, while implementing a 5% operating budget cut for most state agencies and defunding the state Office of Tourism to save over $8 million annually.
  • Governor Hobbs' spokesperson Christian Slater criticized the proposal, saying "it's disappointing that legislative leadership continues to refuse to negotiate on Prop 123," though both sides expressed willingness to resume talks.
  • Senate and House Appropriations Committees scheduled a joint hearing on Tuesday at 10:00 a.m. to review the 16 bills defining the GOP budget proposal.
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AZCentral broke the news in Phoenix, United States on Tuesday, April 28, 2026.
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