Veridus Advisory: Governor Hobbs vetoes Arizona budget package

Dear clients:

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.”

Hours before the Governor’s veto was announced, House and Senate Republicans held a joint press conference to argue their proposal prioritizes Arizona families.

“Affordability is the issue we’re delivering on,” said Senate President Warren Petersen (R-Gilbert). “We are putting more money in the pockets of the citizens of Arizona, and government is doing with less - as it should.”

What now? House lawmakers voted to adjourn until June 1 “or until such earlier time as the Speaker may determine.” The Senate adjourned until Monday, May 11. 

Theoretically, this may facilitate further budget talks between legislative leaders and the Hobbs administration. A deal must be reached before the fiscal year ends, on June 30. 

We will continue to monitor developments and keep you informed.

Sincerely, 

The Veridus team