Overview
- Hobbs, who on Monday signed 32 bills and vetoed 19, said she will reject most new legislation until Republicans release a public budget plan, with only a first‑responder death‑benefit expansion and $4.75 million for the Department of Public Safety exempt.
- She has since vetoed three GOP-backed school-related bills, writing that Republicans have not engaged in good‑faith budget talks.
- The standoff centers on whether to renew Proposition 123, a 2016 voter measure that raised State Land Trust payouts to K‑12 from 2.5% to 6.9%, with its lapse pushing hundreds of millions onto the state’s general fund.
- Republican leaders called the freeze political theater and argue Hobbs’ budget leans on uncertain money, including hoped‑for federal border‑cost reimbursements and a Prop 123 renewal that would require voters.
- The fiscal year ends June 30, and without a deal Arizona risks a July 1 shutdown that could disrupt payments and services for schools, state workers and contractors.