Work on finalizing a state budget paused Friday evening, sending lawmakers home with a plan to regroup Saturday at 8 a.m.
It’s widely viewed as a sign of continued disagreement on how to close the $1.4 billion combined deficit in this year’s budget, as well as the one that must take effect on July 1.
But Republicans said the break in what was expected to be a marathon overnight session was due to the time it takes to draft bills and get the information to their members. They indicated they have the votes to create a balanced 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 be under the gun and come back at 8 a.m., when everything’s ready to go,” House Speaker Ben Toma said. “Rock and roll. Get her done.”
Rep. Lupe Contreras, the Democrats’ leader in the House, 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 banked.”
A 12-year legislative veteran, Contreras was repeating what has become standard practice on budgets: You don’t let lawmakers go home when a budget vote is pending, even if it means working through the night. Former Republican House Speaker Rusty Bowers, who was at the Legislature on Friday talking to lawmakers about water-related bills, said it’s not a great idea to allow lawmakers more time to analyze the budget items once they near agreement.
“You gotta shut it down before the plague sets in,” Bowers said.
In the Senate, Majority Leader Sonny Borrelli, R-Lake Havasu City, indicated the pause was only to give the Legislature’s attorneys time to draft bills related to the budget. Although a 16-bill budget package has been public for two days, changes are being drafted.
Borrelli indicated in a text message that there are the votes to pass a budget. “It will get done,” he wrote.
Democrats sent a different message, saying they are standing strong against the budget as presented.
“Senate Dems 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.”
Discord over issues
Legislators started work Friday on some of the budget-related legislation on which they generally agree, such as the environment and criminal justice bills.
But the major money bill, which maps out how the state will produce a balanced budget that erases a $1.4 billion deficit, has yet to get a hearing. Throughout the day, there were clear signs of discord on key funding issues, such as whether to take $115 million from the state’s opioid fund for this year and next to cover prison costs, restore funding for a low-income housing tax credit and reverse a plan to cap the amount of money that can be raised for private school tuition accounts.
On Thursday, the budget package moved out of the appropriations committees ― a key step in the process ― but with Republican votes only. Democrats were unified in their opposition even as they considered a budget that had been negotiated by Democratic Gov. Katie Hobbs along with Toma and Senate President Warren Petersen.
The House and Senate announced they would return at 8 a.m. Saturday to resume work.
The Legislature is required by the Arizona Constitution to produce a balanced budget for the fiscal year that begins July 1, meaning it has until the last hour of this month to complete its work. Because the current year’s budget has a $729 million deficit, lawmakers must close that gap before the budget year ends. Projections indicate the upcoming budget will have a $690 million deficit ― another gap that must be resolved before July 1.
Lawmakers pass more bills during budget process
Lawmakers used some of their time on Friday to pass several bills unrelated to the budget, including one that would legalize the therapeutic use of psilocybin mushrooms. Having passed the Senate on a bipartisan vote in February, the bill passed the House on Friday 42-16-2.
Now headed to Hobbs’ desk, Senate Bill 1570 would allow entrepreneurs to develop a system similar to Oregon’s that allows entrepreneurs to legally grow psilocybin mushrooms and make them available for patients in authorized clinics. Guided psilocybin sessions can result in mental health benefits, especially for post-traumatic stress disorder, some studies show.
“I’ve heard numerous testimonies regarding the success of this alternative therapy,” said the bill’s sponsor, Senate President Pro Tempore T.J. Shope, R-Coolidge. “I ask Gov. Hobbs to help our veterans and first responders by signing this bill.”
Lawmakers gave approval for several state agencies to continue operations.
The Arizona Commerce Authority, once seemingly destined for extinction, will continue for another five years but with new guardrails.
The state Senate on Friday voted 22-3 in favor of a retooled agency that would continue to serve as a public-private partnership attracting business to Arizona.
The provisions in Senate Bill 2210 call for the agency to hire an attorney with experience in litigating cases involving Arizona’s constitutional gift clause. The gift clause became an issue after state Attorney General Kris Mayes in January determined the authority violated the clause by providing lavish gifts and accommodations to businesses it was wooing during high-profile sporting events, such as the 2023 Super Bowl and the subsequent Phoenix Open.
The gift clause prevents the state from using state resources to attract business or other endeavors without resulting in a tangible benefit to the state. The AG’s opinion came on the heels of an audit that faulted the agency for its lavish spending at taxpayer expense.
State Sen. Jake Hoffman, R-Queen Creek, ran a bill to abolish the agency. That didn’t get traction, but lawmakers did look for a shorter leash for the agency. Hoffman was absent during deliberations on Friday.
In addition to a five-year extension, the bill also caps the agency’s state-paid workforce at 100, although it allows other hires if funded by outside dollars. The bill requires annual reports to legislative leaders and the governor on the agency’s progress in recruiting businesses and mandates local governments annually report on zoning and building permit information, among other things.
It passed the Senate on a 22-3 vote and will return to the House so it can be sent to Hobbs’ desk.
What’s on the chopping block: AZ leaders have a plan to erase 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 Threads as well as on X, the platform formerly known as Twitter, @maryjpitzl.
Reporter Ray Stern can be reached at rstern@arizonarepublic.com and on X @raystern.
This article originally appeared on Arizona Republic: Arizona lawmakers break for the night, to resume budget work Saturday
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