Veridus Advisory: Governor Hobbs Vetoes GOP Budget Proposals, State Shutdown Nears

Dear Clients,

Arizona budget drama escalated today as Democratic Governor Katie Hobbs made good on her promise to veto a pair of GOP-authored legislative budget packages, which she dubbed “unserious.” She reportedly vetoed the budget bills just 15 minutes after they reached her desk.

The executive action immediately followed the state Senate’s unusual maneuver to approve a pair of separate and distinct House GOP-led spending packages: a skinny, $17.3  billion package and a skinnier, $17 billion stopgap budget. Both GOP plans passed on party-line votes. Senate President Warren Petersen (R-Gilbert), frustrated that House Republicans have still refused to consider a bipartisan Senate budget last week, lamented that “inexperienced legislators have been hoodwinked by charlatans.”

There remain just five days until the end of the fiscal year and a possible shutdown of State services. A Senate-passed, $17.5 billion budget package still awaits consideration in the House, and it is possible that a majority of legislators rally around that plan or a near version of it. It is also possible, however, that differences between legislative Republicans and the Governor cannot be bridged and the State next week enters its first protracted government shutdown in memory.

We will keep you informed of any new developments.

Sincerely,

The Veridus Team