By Howard Fischer
Mail | X: @azcapmedia

PHOENIX — House Republicans are moving to make Katie Hobbs the first Arizona governor to preside over shutting down state government.

On a party-line vote, the House Appropriations Committee Tuesday approved a stripped-down $17 billion spending plan, a "continuation bill" to keep government open. That is not only less than the nearly $17.6 billion plan the Democratic governor negotiated with the Senate but also less than a $17.3 billion plan House Republicans approved a week ago.

Hobbs, however, remains unmoved even though, without a state budget, there is no authority for the state to spend money after June 30.

“She’s vetoing the continuation bill,” said press aide Christian Slater. But he would not respond to questions about whether his boss could be the first governor ever to shutter the state.

There are, however, signs that what has so far been a united front by House Republicans may be cracking.

One is the fact that, even as the House votes for its $17 billion plan, there have been ongoing negotiations involving the House, Senate and the governor.

That is happening despite several GOP lawmakers, led by Rep. David Livingston, saying they cannot accept any larger spending plan, no matter how it is packaged.

There’s also the fact House Speaker Steve Montenegro tried to shut down Livingston during the House GOP caucus. Livingston, a Peoria Republican, was detailing why he believes anything above $17 billion should be cast aside.

“I think we’ve heard enough,” interjected Montenegro, a rare rebuke of a fellow Republican in public.

More significant is that Montenegro told Capitol Media Services after the caucus that he does not believe there will be a shutdown.

But Livingston believes time has run out for talks, what with the Monday midnight deadline. That, he said, leaves the continuation budget.

It’s even worse than state offices closing. Livingston said if it gets to July 1 there may be little opportunity to try to negotiate something different, what with Fourth of July weekend.

“I believe, in my heart of hearts, if the governor doesn’t sign a budget, government will be shut down a minimum of two weeks,” he said. “And if we go a month, K-12 payments will be in jeopardy.”

The vote to go with the stripped-down state budget came despite pleas from some who said going that route will end up costing more in the long run.
One of those was Nick Ponder, who represents an organization of all community colleges in the state.

He pointed out the budget being pushed through the House lacks $12 million for the schools that was in $17.6 billion budget passed by the Senate — the one negotiated with Hobbs and the one House Republicans are not even willing to bring up for a vote. That includes $6 million for adult education programs.

“There are about 800,000 individuals in Arizona who lack a high school diploma,” he told lawmakers, with about two thirds of those getting some form of state assistance. That includes the Arizona Health Care Cost Containment System, the state’s Medicaid program.

“Each individual on AHCCCS cost the state about $7,100 a year,” Ponder said.
“About 5,000 students a year go through our programs,” he continued. “If we can get two-thirds of those individuals off of AHCCCS, that $23 million a year in savings to the state.”

What’s also not in the House GOP budget is $9.5 million for a proposed 5% increase in pay for state troopers. Jeff Hawkins, president of the Arizona State Troopers Association said that gap will have costs, too, in the form of turnover.

He said other police agencies are approving significant increases in their pay to keep experienced officers, including a 15% increase by the Maricopa County Sheriff’s Office and a 12% pay hike for Mesa Police Department.

“Those are all folks that now pay more than a state trooper,” Hawkins said.
What’s also missing, he said, is $11.2 million “to keep the lights on” at DPS offices. He said it’s not a question of paying the power bill but “the infrastructure at headquarters is so old that, literally, the lights will turn off.”
While rejecting any effort to add to the bill, Livingston did offer a carrot of sorts to Hobbs and others who support more spending.

He said once there’s a guarantee of continued state operations beyond July 1 — what the House GOP spending plan would provide — then there could be a special legislative session to decide whether to add back in some of the priorities that were in the larger spending plan.

In fact, Livingston said he would support some of those requests. That includes $25 million he proposed himself to widen a stretch of Interstate 10 between Citrus Way and State Route 85 in the earlier $17.3 billion House plan.

He said, though, if the state is to pass a continuation budget, then it must be stripped of everyone’s pet projects, including his own.