IN FOCUS - Apr. 18, 2025

Welcome to the endgame in the battle between Governor Katie Hobbs and the GOP-led Arizona Legislature over the future of the Division of Developmental Disabilities. 

On Thursday, Governor Hobbs issued a moratorium on any further legislation advancing until a bipartisan deal is reached to close a $122 million shortfall and ensure DDD services are funded without interruption through the remainder of the fiscal year, which concludes June 30. The Governor’s explicit veto threat punctuates what has been a bitter and, at times, personal war of words between her and Republican lawmakers.

House Appropriations Chairman David Livington (R-Peoria) and Vice Chairman Matt Gress (R-Phoenix) have blamed the Governor for DDD overspending. They and other GOP legislators say they won’t support supplemental funding that doesn’t include reforms to ensure a similar fiscal crisis is not repeated. Governor Hobbs and Democrats are pushing for a clean supplemental bill.

The stalemate comes as DDD funding is projected to run out in the next two weeks. Meanwhile, other legislative action is coming to a halt. Bills impacted by the Governor’s moratorium include the Arizona Diamondbacks’ proposal to fund stadium renovations. Countless other measures also hang in the balance.

Budget negotiations will likely also be further complicated. The Finance Advisory Committee on Thursday revised downward its fiscal forecast, trimming nearly $340 million from estimated surplus projections as the national economic outlook darkens.