As fiscal changes loom with the advent of Arizona's new state budget, various entities brace for the impact of a $16.1 billion plan aimed at addressing a nearly $2 billion deficit. Notably, Governor Katie Hobbs and Republican leaders in the state legislature have faced a barrage of criticism over their approaches to budgetary allocations, which some claim prioritize certain sectors over others, as detailed in an article by AZPM.
At the heart of the disputes is Arizona Attorney General Kris Mayes, whose office took legal steps against the reallocation of $115 million of opioid settlement funds to the Department of Corrections, Rehabilitation and Reentry. Mayes labeled the budgetary move as a "gimmick" meant to "backfill the budget" of the Department of Corrections. Despite the judge dissolving the temporary restraining order on June 24, which had been granted four days prior, Mayes remains vigilant. "Intend to watch like a hawk, how the Department of Corrections uses this money," Mayes said in a statement to AZPM.
Another vocal critic is the Water Infrastructure Finance Authority (WIFA) of Arizona, which expressed concerns over a "remarkably short-sighted" reduction in funds. WIFA, which had been promised more than $1 billion over three years by former governor Doug Ducey, has received about $443 million, falling short of the commitment for water conservation and sourcing projects. WIFA Assistant Director Chelsea McGuire conveyed her unease not only about the available funds but the implications of these consecutive cuts. "It's that trend that's going to be really hard for us to go out to the market with a straight face and say, the state of Arizona remains committed to this project, the state of Arizona remains committed to bringing in this new water source," McGuire explained in an interview with AZPM.
The education sector is similarly grappling with the new financial blueprint. Save Our Schools Arizona (SOSAZ) decried the state budget's allocation of funds, especially towards the Empowerment Scholarship Account (ESA) system, which was barely adjusted despite concerns over its fiscal impact. "The fact that the budget was balanced on higher ed, K-12 [education], water, roads, the things that all of us really, really need, all of those things were slashed and vouchers were hardly touched," SOSAZ's director Beth Lewis emphasized in a statement to AZPM. The group feels that the voucher program, which has faced bipartisan criticism, was not sufficiently reevaluated in the context of the budget deficit.
