Work on finalizing a state budget was paused Friday evening, sending lawmakers home with a plan to regroup at 8 a.m. Saturday
It is widely seen as a sign of continued disagreement over how to close the combined $1.4 billion deficit in this year’s budget, as well as the deficit due to take effect on July 1.
But Republicans said the pause in what was expected to be a marathon all-night session was due to the time it takes to draft bills and get the information to their members. They indicated they have the vote to balance a budget and eliminate a $1.4 billion deficit.
Continuing in the morning will “give people time to actually read the bills and give the staff enough time to check it and not get fired and come back at 8 a.m. when everything is ready to go,” said Speaker of the House of Representatives Ben Toma. ‘Rock ‘n’ roll. Get her ready.”
Representative Lupe Contreras, the House Democratic leader, chuckled at Republicans’ explanation for the delay.
“That’s funny,” he said. “If the votes are there, you don’t leave the building. You don’t leave when the votes are collected.’
Contreras, a 12-year legislative veteran, reiterated what has become standard practice in budget matters: You don’t let lawmakers go home when the budget is being voted on, even if it means working all night. Former Republican House Speaker Rusty Bowers, who was at the Legislature Friday talking to lawmakers about water bills, said it’s not a good idea to give lawmakers more time to analyze budget items once they’re close to passage.
“You’ve got to close it down before the plague breaks out,” Bowers said.
In the Senate, Majority Leader Sonny Borrelli, R-Lake Havasu City, indicated the pause was only to give the Legislature’s lawyers time to draft bills related to the budget. Although a budget package of 16 bills has been public for two days, changes are being prepared.
Borrelli indicated in a text message that there are votes to approve a budget. “We’ll be fine,” he wrote.
Democrats sent a different message, saying they strongly oppose the budget as it is presented.
“Senate Democrats are still fighting for a better budget for all Arizonans,” Sen. Anna Hernandez, D-Phoenix, tweeted just before 9 p.m. “The budget in its current form does not have the votes to pass in the Senate.”
Disagreement over issues
Lawmakers on Friday began work on some of the budget legislation they generally agree on, such as environmental and criminal justice bills.
But the big money bill, which maps out how the state will balance a budget that eliminates a $1.4 billion deficit, has yet to be heard. Throughout the day, there were clear signs of disagreement on key funding issues, such as whether to take $115 million from the state’s opioid fund this year and next to cover prison costs, fund a low-income tax credit be restored and a tax credit for low incomes must be rolled back. plan to limit the amount of money that can be raised for private school tuition bills.
On Thursday, the budget package disappeared from the appropriations committees — an important step in the process — but with only Republican votes. Democrats were united in their opposition even as they considered a budget negotiated by Democratic Gov. Katie Hobbs with Toma and Senate President Warren Petersen.
The House and Senate announced they would return to resume work at 8 a.m. Saturday.
The Legislature is required by the Arizona Constitution to prepare a balanced budget for the fiscal year beginning July 1, meaning it has until the last hour of this month to complete its work. Because this year’s budget has a $729 million deficit, lawmakers must close that gap before the budget year ends. Projections indicate that the upcoming budget will have a $690 million deficit – another gap that must be resolved by July 1.
Lawmakers approve more bills during the budget process
Lawmakers used some of their time Friday to pass several bills unrelated to the budget, including a bill that would legalize the therapeutic use of psilocybin mushrooms. After gaining bipartisan passage in February, the bill passed the House of Representatives on Friday 42-16-2.
Senate Bill 1570 is now on Hobbs’ desk and would allow entrepreneurs to develop a system similar to Oregon’s that would allow entrepreneurs to legally grow psilocybin mushrooms and make them available to patients at authorized clinics. Guided psilocybin sessions may result in mental health benefits, especially for post-traumatic stress disorder, some studies show.
“I have heard countless testimonials about the success of this alternative therapy,” said the bill’s sponsor, Senate President Pro Tempore TJ Shope, R-Coolidge. “I ask Governor Hobbs to help our veterans and first responders by signing this bill.”
Lawmakers gave approval for several government agencies to continue their activities.
The Arizona Commerce Authority, once seemingly destined for extinction, will survive for another five years, but with new guardrails.
The Senate voted 22-3 on Friday to approve a revamped agency that would continue to serve as a public-private partnership that would attract businesses to Arizona.
The provisions in Senate Bill 2210 call for the agency to hire an attorney with experience litigating cases involving Arizona’s constitutional gift clause. The gift clause became an issue after Attorney General Kris Mayes found in January that the authority had violated the clause by providing lavish gifts and accommodations to companies it wooed during high-profile sporting events, such as the 2023 Super Bowl and subsequent Phoenix Open.
The donation clause prevents the state from using state resources to attract businesses or other activities without providing a tangible benefit to the state. The AG’s opinion followed an audit that accused the agency of lavish spending at taxpayer expense.
State Sen. Jake Hoffman, R-Queen Creek, introduced a bill to abolish the agency. That did not gain traction, but lawmakers did look for a shorter line for the agency. Hoffman was absent from Friday’s deliberations.
In addition to a five-year extension, the bill also limits the agency’s state-paid workforce to 100, though it allows other hires if funded with outside dollars. The bill requires annual reports to legislative leaders and the governor on the agency’s progress in recruiting businesses and directs local governments to report annually on zoning and building permit information, among other things.
It passed the Senate on a 22-3 vote and will return to the House of Representatives so it can be sent to Hobbs’ desk.
What’s on the chopping block: AZ leaders have a plan to eliminate a $1.3 billion deficit
Reporter Mary Jo Pitzl can be reached at maryjo.pitzl@arizonarepublic.com or at 602-228-7566 and follow her on both Threads and X, the platform formerly known as Twitter, @maryjpitzl.
Reporter Ray Stern can be reached at rstern@arizonarepublic.com and at X @raystern.
This article originally appeared in the Arizona Republic: Arizona lawmakers are taking a break for the night before resuming budget work on Saturday
