The Arizona House of Representatives passed a continuation budget Tuesday morning in a last-ditch effort to prevent a state government shutdown, despite Governor Katie Hobbs' promise to veto the measure. The move escalates a political standoff between House Republicans and the Democratic governor with just five days remaining before the June 30 deadline.
The stripped-down spending plan, which House Republicans describe as a "skeleton budget," now heads to the Senate after passing on party lines. Without legislative action by June 30, Arizona faces its first government shutdown in state history, halting most operations except core functions like prisons.
The continuation budget represents House Republicans' rejection of a $17.6 billion spending plan negotiated between the Senate and Hobbs1. The Senate passed that bipartisan agreement Friday before adjourning for the year, but House Speaker Steve Montenegro claimed it lacked sufficient support in his chamber2.
"The House also has a voice and we want to make sure we are doing our job and representing the people who sent us," Montenegro said, defending the decision despite Hobbs' opposition1.
The House Appropriations Committee had approved the $17 billion continuation plan Monday, which is less than both the Senate's $17.6 billion proposal and the House's own $17.3 billion budget passed the previous week3.
House Democrats criticized Republicans for refusing to consider the bipartisan Senate agreement. Rep. Oscar De Los Santos said Governor Hobbs, Senate Republicans, Senate Democrats, and House Democrats had all reached consensus, but House Republicans "decided to not come to the negotiating table"1.
Hobbs' office has characterized the continuation budget as "pointless political grandstanding," with press aide Christian Slater confirming she would veto the measure2. The governor warned the plan would eliminate pay raises for state troopers and firefighters while cutting childcare and education funding3.
According to Fox 10 Phoenix, Rep. David Livingston warned that if Hobbs doesn't sign a budget, "government will be shut down for a minimum of two weeks," potentially jeopardizing K-12 school payments if the impasse extends into July1.
State revenues have exceeded projections this year, with sales tax collections in April reaching $721 million and fiscal year revenues running $223 million above estimates, according to the Missoula Current2. Despite the strong revenue picture, lawmakers remain divided over spending priorities and the size of government.
The continuation budget maintains current funding levels while negotiations continue, though Montenegro expressed confidence Tuesday that "there will not be a shutdown"1.
