By admin 
PHOENIX (AZFamily) — Republican lawmakers and Gov. Katie Hobbs have agreed to a revised state budget that includes over a billion dollars in tax relief, more than a month after the governor vetoed the original plan.
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According to a news release issued by Arizona Senate Republicans, the $18.29 billion budget delivers $1.45 billion in tax relief over four years and reduces net ongoing spending by $68 million. The budget also rejects or modifies over $3 billion in proposed executive tax increases, fees and spending over the next three years.
In addition, GOP lawmakers say the budget bills make Arizona the only state to deliver President Donald Trump’s tax cuts at the state level.
As part of the package, $112 million will be reserved for corrections operations, including a four percent correctional officer stipend. Other services included in the budget are:
- $58 million for child safety operations, including foster care coaching and guardian contract costs
- $25.5 million for county support programs, probation services, reentry efforts and sheriff’s assistance
- $10 million for wildfire suppression efforts
- $4.3 million to help rural hospitals
The agreement also includes a three-year moratorium on data center tax incentives, while allowing construction of new centers to continue.
Gov. Hobbs sent the following statement in response to the budget agreement:
“This bipartisan, balanced budget agreement will put Arizona first and deliver opportunity, security and freedom to communities throughout the state. With this agreement, we are delivering a $1.4 billion tax cut for working class families, investing in job creation, education and water security while tightening our belts, and securing a moratorium on the data center tax exemption so we can develop a responsible path forward that protects our water future and lowers utility bills for Arizona families. This bipartisan compromise shows what we can do when we put common sense before political games and focus on delivering real results for our communities. It will put money back in the pockets of Arizona families and lower costs, make our communities safer and protect the vital services that Arizonans rely on. In the coming days, I look forward to working with legislators in both parties to pass this bipartisan budget agreement that will make Arizona stronger, safer and more prosperous.”
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The agreement comes more than a month after Gov. Hobbs vetoed the original budget, which included cuts to most state agencies except for the Arizona Department of Public Safety and the Arizona Department of Child Safety. Gov. Hobbs criticized cuts to a kids’ food program, child services and state forestry.
Arizona Democrats also claimed the GOP plan primarily benefited the wealthy and corporations, using examples like tax breaks for data centers.
Budget bills will be considered during a joint Senate & House committee hearing Wednesday morning, and are expected to receive final legislative votes on Thursday.
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