Governor Hobbs has proposed a $16 billion budget, a decrease from last year’s $17.8 billion state spending plan. The economists at the JLBC think the deficit for the next two years is $1.7 billion, nearly twice the amount Hobbs’ $900 million estimate. The Governor’s Office estimates Arizona will pull in $823 million more revenue than the JLBC thinks the state will. The JLBC estimates baseline spending will decrease $1.5 million in the next fiscal year due to the cessation of one-time spending in last year’s budget. 

Hobbs proposed cutting about $1 billion from the budget in a mix of cuts, sweeps and clawbacks and delays including clawing back $770 million in existing funding: 

    • $419 million in transportation projects, like the I-10 widening in the West Valley.
    •  $188 million for capital projects, including state corrections department repairs. 
    • $163 million in operating expenses, like the Prescott Rodeo and Arizona Department of Education.
    • Sweep $282 million in funds from 44 agencies.

For the next fiscal year, the governor proposes cutting $737 million, including: 

  • $413 million in ESA cost.
  • $300 million of planned funding for long-term water projects.
  • $4 million from the House and Senate budgets, combined.
  • $3 million from the Governor’s Office budget, including $1 million from the Missing and Murdered Indigenous People Task Force.
ADHS Licensing Program Investments

Hobbs made several proposals to improve ADHS’ healthcare licensing system after a series of articles in the Arizona Republic highlighting the impact that the lack of investment in and poor leadership at ADHS licensing programs during the Ducey Administration had – as well as the scathing Auditor General Reviews.

Arizona Republic Article Prompts Hobbs to Direct DHS & APS to Investigate Regulation of Assisted Living Facilities

Governor Hobbs proposes an increase of $24.8 million in ADHS’ licensing programs including $1.9 million ongoing and $157,500 one-time to add 16 employees to follow up on complaints, general inspections, and enforcement. She’s also proposing $500K ongoing and $900K one-time to fund improvements to AZCARECHECK to improve transparency.

There’s also $500K earmarked for an independent assessment of AZ’s network of services for persons with a serious mental illness, and $485K for ADES Ombudsmen and $271K ongoing for an ombudsman for the AZ State Hospital.

The budget also includes a $10M item for AHCCCS to get more people to join behavioral health quality improvement initiatives.

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