Arizona budget balancing act … Executive order overload … And no dresses on the front lines

Photo via Maricopa County

By Nicole Ludden and Hank Stephenson | Arizona Agenda

After attempting to kill off Arizona’s universal school voucher program entirely in her first budget proposal, then trying to keep kids who already attend a private school from receiving them in her second budget proposal, Gov. Katie Hobbs’ budget proposal this year attempts to implement an income cap on vouchers.

That lowering of expectations is in line with the “moderate” spending proposal the governor outlined on Friday for the upcoming fiscal year.

The state’s finances have swung wildly since Hobbs took office, going from an estimated $2 billion surplus when she was first elected to a deficit of over $1 billion just a year later.

Now, after a round of dramatic cuts to get the budget back in line, the state once again has a little cash to spend.

Hobbs’ budget proposal for Fiscal Year 2026, which starts in July, is more grounded in political reality than her past proposals. But its investments in the social safety net and a focus on driving down the cost of living still reflect her priorities and values as a Democrat and former social worker who has lived through foreclosure and had to side-hustle as an Uber driver.

Arizona has a nearly $18 billion budget. But only a small fraction of that money is really up for debate during budget season.

The vast majority of Arizona’s spending is locked in for programs the state is required to fund, like education, healthcare and prisons. The cost may go up or down depending on the number of people using each program, but the spending isn’t really discretionary.

So when we talk about budget proposals, we’re really only looking at the $1 billion or $2 billion that our politicians are fighting over.

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