Overview
- Republican leaders unveiled the $17.9 billion plan Monday, pitching full conformity to recent federal tax changes worth about $1.45 billion over several years, including no state tax on tips and overtime and larger family credits.
- Funding comes from roughly 5% trims to most state agencies that spare public safety, corrections and child safety, along with ending solar tax credits.
- Following Tuesday’s committee action, the package also revives stricter eligibility and work rules for Medicaid (AHCCCS) and SNAP that Republicans say would save about $180 million in the first year.
- Hobbs kept her bill‑signing moratorium and criticized across‑the‑board cuts, and she objects that the plan drops her sports‑betting fee, a short‑term‑rental charge, and a renewal of Proposition 123 for K‑12 schools.
- Agency heads and advocates warn the reductions could slow SNAP processing at the Department of Economic Security and strain wildfire staffing, and the plan would raise state employee health premiums starting in 2027.