Threat of possible recession looms over upcoming budget talks

By Jakob Thorington | Arizona Capitol Times

Key Points:
  • Gov. Hobbs to start budget discussions soon
  • Uncertain economic conditions will impact budget talks
  • Hobbs won’t use rainy day funds to backfill cuts

Lawmakers averted a funding crisis for the Division of Developmental Disabilities, and with Gov. Katie Hobbs’ lifting of a bill moratorium, attention is now turning to other key priorities at the state Capitol. 

The major task for the Legislature is the state budget, which lawmakers are statutorily obligated to complete. House Appropriations Committee Chairman David Livingston, R-Peoria, said he hopes to get a budget agreement to Gov. Katie Hobbs’ desk and end the legislative session by Memorial Day.

The challenge for lawmakers this year will be uncertain economic conditions, and economists on the Legislature’s Financial Advisory Committee have warned that the Legislature should reduce spending, given the possibility of a recession that could occur in the near future. 

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