Overview
- The agreement, announced Tuesday, sets an $18.29–$18.3 billion fiscal-year budget after weeks of closed-door talks between Republican legislative leaders and Democratic Gov. Katie Hobbs.
- The package fully conforms Arizona’s tax code to the federal H.R. 1 changes, delivering about $1.45 billion in state tax relief over four years and ensuring many taxpayers will not need to refile 2025 returns.
- Negotiators paused new data-center sales-tax exemption certificates for three years while allowing construction to continue, a concession meant to address local water and utility concerns.
- The deal directs targeted new funding—including roughly $112 million for corrections, $58 million for child safety, $25.5 million for county probation and reentry, $10 million for wildfire suppression, and $4.3 million for rural hospitals—while holding most agencies to a 2.5% operating cut.
- Lawmakers advanced the 16-bill package in a joint appropriations hearing with limited room for amendments and must still pass both chambers and secure the governor’s signature before the June 30 deadline, a fast timetable that compressed public input and oversight.