Hobbs gambles on federal border money and sports betting taxes for budget balance

Caitlin Sievers | AZ Mirror

Gov. Katie Hobbs’ proposed budget hinges on nearly $800 million in reimbursements for border activities from the federal government as well as another nearly $150 million from new taxes on sports betting. 

Neither of those funding sources are guaranteed to ever materialize, however — the former depends on how much money President Donald Trump’s administration gives to Arizona, while the latter will require legislative approval and raises constitutional questions. Both, however, are critical to the Democratic governor’s $17.7 billion budget plan. 

“I think that we have a very reasonable and balanced budget based (on) some pretty reasonable assumptions about fees that we can levy on sports betting,” Christian Slater, spokesman for Hobbs, told reporters on Friday. 

Republican legislative leaders disagreed, saying in a joint statement that the proposal included “unrealistic revenue assumptions, hidden tax increases, and policies that would raise costs for Arizona families while creating long-term tax confusion.”

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