Arizona Gov. Katie Hobbs clashes with GOP over proposed $17.9B state budget

Arizona leaders clash over GOP state budget plan

Arizona's budget battle is heating up as state GOP leaders unveiled their plan, which stands in contrast to Governor Katie Hobbs' budget. FOX 10's Taylor Wirtz has more.

PHOENIX - Arizona's budget battle is heating up, as State GOP leaders have unveiled their plans, and now, Governor Katie Hobbs is responding.

What we know:

Arizona Republican leaders have unveiled a $17.9 billion budget proposal. Their main goal is to mirror current federal tax relief by eliminating state taxes on tips and overtime, increasing child tax credits, and providing retirement deductions.

"What we've done is we've put a budget forward that thinks of Arizonans first. That brings a total of almost $1.5 billion in tax relief for Arizonans over the next three years," said State Speaker of the House Rep. Steve Montenegro.

"We're the only known state advancing the full Trump tax cuts into state law," said State Senate President Warren Petersen.

Dig deeper:

Payment would come from cutting most state agency budgets by 5%, and reducing funding for programs like SNAP and Medicaid. This stands in contrast to Gov. Katie Hobbs’ proposed $18.7 billion budget.

The other side:

In response to Republicans on April 28, Gov. Hobbs said she is thrilled to see middle-class tax cuts and childcare funding in the proposal, but claims the GOP is paying for it by kicking people off Medicaid and cutting SNAP benefits.

"I think we need to make these cuts strategically and smartly. And not slash and burn with just across-the-board cuts like we're seeing come out of Washington, D.C.," Gov. Hobbs said.

Gov. Hobbs also wants to reel in the ESA school voucher program, calling the current form unacceptable.

"It is a rampant drain of funds from public schools. And there's no accountability for how those funds are used," Hobbs said.

Republicans say they stand by their work.

"We're spending about $800 million less than what the governor has proposed, and the governor has proposed to raise taxes," Montenegro said.

What's next:

As far as negotiations are concerned, both sides say they’re willing to listen.

"I'm hopeful that we can get back to that table and start having real conversations," Gov. Hobbs said.

"When she's ready to come back to the table, we'll be waiting for her," Montenegro said.