Arizona Republicans' Late-Inning Budget Clash Puts Government Shutdown on the Table

Days before the June 30 deadline to pass a state budget, a clash between Republicans at the Arizona Capitol threatens to shut down state government.

House Republicans are refusing to vote on the $17.6 billion budget passed early Friday by the Republican-controlled state Senate, with the support of Democratic Gov. Katie Hobbs.

“The executive budget plan passed in the Senate does not have the votes in the House—with bipartisan opposition from Republicans and Democrats,” House Speaker Steve Montenegro said in a statement released late in the day Friday .

“Now, with time running out and no viable path forward for their plan, it’s our responsibility to act to prevent a shutdown.”

A House spokesman said the chamber plans to convene at 1:15 p.m. Monday to work on a continuation budget that would fund state government past June 30.

Hobbs: House GOP engaging in 'farce'

In a statement Saturday after meeting with House Republicans, Hobbs ripped their budget plan as a "farce" and said she would veto any partisan continuation budget:

“For months I have worked with leaders of both parties, in both chambers, to craft a bipartisan, balanced, and fiscally responsible budget. Sadly, House Republican leadership abdicated their responsibility and refused to meaningfully participate in those bipartisan conversations. Now, to cover for their failures, they are attempting to jam through an irresponsible and partisan ‘budget.’ I remain committed to having conversations about improving our bipartisan budget, but let me be clear: any kind of partisan ‘continuation budget’ will immediately meet my veto pen, if it even has the votes to reach my desk.

“Speaker Montenegro knows this, yet he has chosen to continue with this farce as an exercise in pointless political grandstanding. His reckless actions jeopardize basic government functions with potentially devastating consequences for small businesses, veterans, children, and countless families across our state who rely on their elected officials to fulfill their basic constitutional duties. We do not need another month, nor do we have the luxury of time, to redevelop a budget that we have already spent months negotiating.

“While House Republicans work to give themselves a 514% boost to their daily pay, they’re fighting to pass a budget that cuts raises for state troopers and firefighters. Their budget guts much needed investments in childcare, it slashes funding for K-12 schools, community colleges and universities, cuts programs to fight veterans homelessness, eliminates wildfire mitigation money, raises taxes on small businesses and underfunds critical infrastructure projects."

Has Arizona government been shut down?

Arizona has not experienced a full-on government shutdown like the ones seen at the federal level.

If there's no budget when the next fiscal year starts on July 1, it remains to be seen how long the state’s 30,000-plus employees could collect paychecks and continue to provide vital services such as public safety and health insurance benefits.

The closest the state has come to a shutdown in recent times was during the financial crisis brought on by the Great Recession.

In 2009, Republican Gov. Jan Brewer signed a budget into law eight days late, on July 8. She waited until lawmakers in the Republican-controlled House and Senate restored cuts to K-12 education in a budget that was transmitted to her a few hours late, on July 1.

What triggered House revolt?

The budget revolt was triggered by the Senate's decision to ignore the House-produced budget and negotiate a budget on its own with Hobbs.

Josh Kredit, chief of staff for the Republican Senate, posted the Senate’s blow-by-blow account of what led up to the House revolt. He said the House never responded to the Senate’s offer to team up in negotiations with Hobbs’ office.

Republican Sen. Jake Hoffman, president of the right-wing Arizona Freedom Caucus, told Kredit his post was "inappropriate." Freedom Caucus members are leading the House rebellion.

Republican fight lights up social media

In the midst of the budget debate on the Senate floor late Thursday night, Republican Senate President Warren Petersen, who is running for attorney general, posted: “We have one job to do down here at the Capitol. Pass a real budget. Not a fake budget for optics and talking points that will be gutted by a line item veto pen.”

State Rep. David Livingston of Peoria, the top House budget writer, had been trolling Petersen on social media all day Thursday.

State Rep. Rachel Keshel of Tucson, a member of the Freedom Caucus, claimed Republicans were staging a budget “coup” with Hobbs.