Arizona House Republicans passed a budget plan on May 5 that spends $800 million less than the governor’s proposal and returns $1.45 billion to taxpayers.
The Republican majority said the plan would keep spending under control without cutting core services. Gov. Katie Hobbs proposed an $18.7 billion budget.
The budget package now heads to Gov. Hobbs after passing both chambers, according to the Arizona House GOP. The vote comes amid ongoing negotiations between the Republican majority and the Democratic governor.
According to Senate Republicans, Arizona’s legislative budget aligns with updated April revenue estimates that showed a $200 million drop in available resources. The plan limits overall spending growth to 1.9%, which they said is below combined population and GDP growth. It maintains current funding levels for K-12 education and public safety while adding eligibility verification in public assistance programs — steps they said could redirect resources toward tax relief for working families and seniors.
The Arizona budget incorporates federal tax adjustments, eliminating state taxes on tips and overtime pay while expanding deductions for child-care expenses and seniors. According to The Center Square, the plan ensures no Arizona taxpayer will need to refile for the prior year.
The Arizona House Republican Majority Caucus represents GOP members serving in the Arizona House of Representatives. The group focuses on fiscal responsibility, economic opportunity, and core state services, according to its website.
