By Reagan Priest | AZ Capitol Times
Key Points:
- Gov. Katie Hobbs signed a bipartisan budget Saturday after the Legislature adjourned in the wee hours of the morning
- The $18.3 billion package includes $1.4 billion in tax cuts, 2.5% agency budget cuts and a moratorium on data center tax incentives
- The budget did not include an extension of Prop. 123, despite the governor’s best efforts
Gov. Katie Hobbs signed an $18.3 billion budget package with $1.4 billion in tax cuts, a three-year moratorium on new data center tax incentives and 2.5% agency budget cuts — capping off the 2026 legislative session.
It wasn’t seamless. The last few months of this year’s session saw a negotiation standstill, a bill moratorium, a vetoed Republican budget proposal, an extended break for House members and finally, a bipartisan deal to keep the state government funded into the next fiscal year.
In a statement released after the Legislature sent the budget to her desk Thursday, Hobbs celebrated the passage of her fourth bipartisan budget during her tenure on the Ninth Floor.
