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Gov. Hobbs, Republican leaders reach agreement on $17.8 billion budget

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Posted at 4:42 PM, May 09, 2023
and last updated 2023-05-10 11:16:20-04

PHOENIX — A months-long budget battle at the State Capitol appears to be winding down.

Governor Katie Hobbs and Republican leaders reached an agreement on a $17.8 billion budget Tuesday.

"We have a bipartisan budget that the big three, the governor, the president of the Senate and the speaker of the House shook hands and agreed to," said David Livingston, House Appropriations Committee Chairman.

The House and Senate Appropriations committees adopted 17 appropriations bills. The vote was passed along party lines by six Republicans and four Democrats.

In the House, one Democrat begrudgingly joined Republicans to make the vote 10-5.

"With all the flaws in this bill, because I feel strongly about the ESL's I will be an aye today," said State Representative Judy Schwiebert (D) north Phoenix - District 2.

The $17.8 billion budget will be the largest in state history, but Democrats are not happy.

For starters, there is no cap or cuts on universal school vouchers.

Democrats believe the scholarships will cost the state a billion dollars in three years.

Both the secretary of state and the attorney general, who are Democrats, say the budget underfunds their agencies, leaving Arizonans and voting systems vulnerable.

Republicans were not impressed. "Which is it? Are you going to compromise [to] get what you like, get you things you don't like? Or is it my way or the highway?" State Senator Anthony Kern asked his Democratic colleagues on the appropriations committee.

The budget does include a $260 million one-time rebate that gives families a $250 tax credit for each child younger than 17.

There is a $750 cap for each family.

Governor Hobbs did get the full $150 million she sought for the state's housing trust fund. The money will be used to build affordable housing, fund homeless shelters and eviction prevention programs.

The governor also managed to eliminate results-based funding that gives extra money to high performing K-12 schools. That will free up $300 million in one-time funding for all public schools. The money, however, cannot be used for teacher pay raises.

The Senate passed the budget bills Wednesday morning and Governor Hobbs released the following statement:

"Today we showed Arizonans we can reach across the aisle, compromise and make government work. I am glad Democrats and Republicans in the Arizona Senate came together to pass budget bills that make historic investments in affordable housing, build roads, bridges and public transit, invest in our Tribal communities, and expand access to health insurance for children. I look forward to the Arizona House passing this budget and to continuing to partner with legislators of both parties to build an Arizona that works for all of our communities."

The House has yet to make a decision on the budget.