The top news to report is that our state passed a $16.1B budget yesterday night. This was neither a conservative nor a democratic budget; it was a painstakingly negotiated budget, constrained by the realities of a $676 million deficit in a time of divided government.
The Governor’s office, along with Republican Senate and House leaders, had been negotiating how to balance the budget for weeks. Governor Hobbs aimed to minimize cuts to agencies and continue funding priority issues like childcare, education, and social services. Democrats prioritized reigning in the runaway spending on the universal voucher program, which currently subsidizes private school tuition to the tune of $500 million and growing. In contrast, Republicans sought deep cuts to agencies, public education, and social services.
A budget is a moral document, and the priorities of each side very clearly reflected their values.
Crafting and voting on the budget was neither easy nor perfect. We worked 14-hour days on Friday and Saturday leading up to the final vote. I fought hard for affordable housing, pushing for the continuation of the Low Income Housing Tax Credit (LIHTC), and increased funding for the arts, the Area Agency on Aging, and community colleges. However, the Republican leadership refused to budge on school voucher reform, LIHTC, and funding for universities.
In the end, the budget passed the House and Senate with bipartisan support. I am proud to have helped negotiate $15 million for the Housing Trust Fund. (It’s worth noting that last year, the HTF received a historic $150 million, but this year, the budget included no funding until yesterday).
In explaining my vote, I reminded everyone how we arrived at this painful fiscal juncture. The last budget I voted on in 2022 included two issues I have steadfastly opposed: the $2 billion loss in revenue due to the flat tax and unchecked spending on universal vouchers, which are the two biggest drains on our economy. It is very hard to see how we move forward with such extreme cuts to revenue and increases in spending. I am dedicated to starting work on budget solutions for next year soon - just need a few more hours of sleep first.
I will dive deeper into the budget again next week. For now, here are some highlights of the wins below.