AZ Legislative Update – Bipartisan Budget Deal Reached Between Senate and Governor
Posted by [email protected] on Jun. 12, 2025 / Subscribe 0
After several weeks of intense negotiations, Senate leadership has reached a deal with the Governor’s Office on a bipartisan FY 2026 budget package without the endorsement of House leadership.
Despite the House not being on board with the negotiated deal, there should be enough support and political pressure from a bipartisan group of members in both legislative chambers for its passage.
The Senate budget bills will be introduced tomorrow, and we anticipate that session will come to a close, sine die, by the end of next week, avoiding a government shutdown.
Details with regards to what exactly is in the spending package should start to leak out shortly; however, with only a $277 million projected surplus, we do not anticipate much in terms of any new spending.
Not to be completely outdone by the Senate, House leadership yesterday decided to introduce their own budget; however, it is not expected to gain any real traction with Democrats, the Governor, and the AZ Senate in opposition.
The House’s $17.69 billion budget plan contains $16.54 billion in ongoing revenue, plus roughly $1.15 billion one-time funds and prior-year balance. The proposed package includes a 5 percent pay raise for public safety officers, $94 million for roads, cuts in AHCCCS (Medicaid) and includes disability services savings with tighter reporting rules.
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