Arizona lawmakers have returned to the state Capitol in Phoenix, working diligently to finalize a budget agreement as the June 30 deadline approaches. The Legislature had taken an early recess after Governor Katie Hobbs vetoed a Republican-backed budget, which she criticized as “unbalanced and reckless.” This proposal, referred to as a “skinny budget,” was deemed inadequate by Hobbs for failing to fund key state priorities.

Progress in Negotiations

Despite the initial setback, both parties have been engaged in closed-door negotiations. Senate President Warren Petersen has indicated that they are “99 percent of the way” to a final agreement. Governor Hobbs’ office has also expressed optimism, stating that the two sides are “very close” to reaching a deal.

A significant point of discussion has been Proposition 123, an education funding initiative that Hobbs has advocated for inclusion in the budget. Petersen has confirmed that a solution has been reached regarding this issue, although any extension of Proposition 123 will still require voter approval.

Challenges and Compromise

Governor Hobbs has acknowledged that compromise is necessary to move forward. “I put out my budget in January. That is my vision, my plan,” Hobbs stated, emphasizing the need for negotiation. The budget talks follow months of public tension between the Democratic governor and Republican legislative leaders.

Earlier this year, Hobbs walked away from negotiations and imposed a bill-signing moratorium, refusing to act on most legislation until lawmakers returned to the table. In May, she vetoed the Republican-backed budget proposal, prompting legislative leaders to recess and continue negotiations privately.

With the new fiscal year beginning on July 1, lawmakers are under pressure to pass a state budget by June 30. While a final agreement has yet to be announced, both sides remain optimistic about reaching a resolution soon.

Original reporting: 12News / KPNX (Phoenix) — read the source article.