The Veridus BLOG

The race for Arizona Governor began in earnest this week as the Hobbs campaign launched a slate of broadcast TV ads it characterized as “the earliest ever for an Arizona gubernatorial race.” The 30-second biographical spots are airing in English and Spanish and highlight Governor Katie Hobbs’ working-class background, as well as her focus on affordability issues.

Governor Katie Hobbs lifted her bill moratorium Thursday, clearing lawmakers to once again begin sending her bills to sign or veto. The announcement ends a legislative blockade that she began a month earlier, and is fueling optimism among Capitol-watchers that a budget deal is moving closer.

As expected, Governor Katie Hobbs today vetoed a GOP-led budget package for fiscal 2027. The $17.9 billion spending plan passed the Arizona House and Senate via party-line votes, and Governor Hobbs had already signaled her opposition. With a statement accompanying the veto, she called the legislative proposal “unbalanced and reckless,” and likened it to “Washington-style budgeting.”

Today, the Arizona State Senate approved the Republican majority’s $17.9 billion budget package for fiscal 2027. It will be transmitted to Democratic Governor Katie Hobbs, who has raised objections to the spending plan and is widely expected to veto it. The same proposal passed out of the House last week, clearing both chambers by a GOP-only, party-line vote.

Wednesday afternoon, the Arizona House of Representatives via a party-line vote advanced the GOP majority’s spending plan for fiscal year 2027. The proposal was introduced earlier this week.

The election year is well underway, and political observers recently got their first look at fundraising progress via candidates’ filing of Q1 campaign-finance reports. Below is a snapshot of reports filed by candidates for statewide offices.

State budget cuts are coming. Big ones. Thursday, the Finance Advisory Committee announced that Arizona State government finances have deteriorated markedly in recent months. In January, the 4-sector forecast projected $577 million in available resources. That estimate was slashed to $377 million as part of the April outlook released this week.

Nearly 2,000 bills were introduced to begin the Arizona legislative session. Most have now reached their eternal resting place. Today was the last chance for House and Senate committees to meet (except for Appropriations committees, which have one more week of work). That means, for the vast majority of bills, this was the deadline to clear committee and move to the full House or Senate for consideration.

The Republican field opposing Democratic Governor Katie Hobbs shrank this week as Arizona businesswoman Karrin Taylor Robson bowed out of the race.

It took only five weeks, but the newly minted Arizona Independent Party has its first entrant in what’s already a crowded field for Governor this year. Arizona health care executive Hugh Lytle joined the race Tuesday, vowing to “bridge the partisan divide.” He accused the Democratic and Republican parties of being “trapped in a fight that never ends. They argue, they posture, they divide, but they don’t solve big problems.”

The Arizona State Capitol revving to life wasn’t the only political news in recent days. Statewide candidates also filed their Q4 campaign-finance reports, giving us a good idea who’s got cash as the 2026 election year gets underway.

Today, Governor Katie Hobbs released her fiscal 2027 Executive Budget, a $17.7 billion General Fund spending plan that prioritizes her affordability agenda - including a $236 million tax cuts package.

This evening, Arizona Governor Katie Hobbs vetoed a GOP-led tax cuts package - forcing legislators back to the negotiating table to discuss to what degree Arizona will conform to federal tax code changes.

Today, the 57th Arizona Legislature assembled for the 2nd regular session at the Arizona State Capitol as Governor Katie Hobbs delivered her fourth State of the State address.

The 2nd Regular Session of the 57th Arizona Legislature convenes Monday at the State Capitol, with Governor Katie Hobbs set to deliver her fourth State of the State address as the headliner of Opening Day.

Call it, Arizona’s Mostly Beautiful Bill. This week, Governor Katie Hobbs unveiled plans for a “Middle Class Tax Cuts Package,” which involves adopting some - but not all - of the federal tax changes created by President Trump’s One Big Beautiful Bill.

With a federally-imposed deadline passing this week without a deal on water cuts among the seven Colorado River basin states, the likelihood of litigation or federal intervention is only going up.

Campaign-finance reports for the 3rd quarter were made public this month for statewide candidates, but not much fuss was made. Expect far more attention to be paid in 2026 as the dollar amounts - and stakes - get bigger.

Friday marks 90 days since the Legislature adjourned sine die, which means each of the bills Governor Katie Hobbs signed into law last session (minus those that had an emergency clause and became active immediately) are now effective.

Lean days are here. In terms of the Arizona State budget, anyway.