The Arizona House Republicans have launched a legislative stopgap. With the Division of Developmental Disabilities (DDD) confronting a $122 million funding shortfall that jeopardizes nearly 60,000 Arizonans, including those with autism, cerebral palsy, and Down syndrome, lawmakers are stepping in to fill the gap, according to a statement obtained by the Arizona House of Representatives.
Speaker Steve Montenegro has criticized Governor Katie Hobbs' administration for expanding Division of Developmental Disabilities (DDD) programs without legislative approval, creating a precarious financial situation just weeks before the end of the fiscal year. In response, Chairman of the House Appropriations Committee, Rep. David Livingston, introduced HB2945 today, following Speaker Montenegro's direction. Montenegro emphasized that the crisis was not a sudden development, blaming Hobbs’ administration for expanding programs without legislative consent and ignoring important program limitations. He framed the proposed legislation as a solution that balances compassion with fiscal responsibility, aiming to provide a fully funded resolution that safeguards families, restores order, and prevents similar issues in the future.
The new legislation aims to support Division of Developmental Disabilities (DDD) services through June 30 without raising taxes or increasing government spending. Instead, it reallocates unused or mismanaged funds under Governor Hobbs’ control. Notable reallocations include $38 million from the Housing Trust Fund, $10 million from the Arizona Commerce Authority Competes Fund, and $74 million from the Prescription Drug Rebate Fund. The proposal also introduces policy reforms to ensure stronger oversight and sustainability for DDD in the future, such as requiring full legislative approval for all Medicaid waiver submissions, comprehensive reporting on federal fund use by state agencies, and imposing a cap on Parents as Paid Caregivers (PPCG).
Looking ahead, the bill addresses future challenges by setting guidelines for PPCG, including a 40-hour weekly cap starting July 1, 2025, followed by a potential reduction to a 20-hour cap through a new waiver submission. Parents would be allowed to obtain additional hours from other Direct Care Workers, and full legislative reauthorization will be required when the current waiver expires in September 2027. Speaker Montenegro has urged both Democratic colleagues and Governor Hobbs to support this "responsible plan," which seeks to protect Arizona’s most vulnerable populations.
Despite political divisions, swift action in the Arizona House is expected to prevent disruptions in services. The key issue remains whether these proposed measures will bridge the partisan gap and deliver effective solutions for the families affected.
