PHOENIX — With only days remaining before a possible government shutdown, Arizona Gov. Katie Hobbs signed into law a $17.6 billion bipartisan state budget Friday afternoon, ensuring continued operation of government services.
The state Senate approved the budget after the House passed it Thursday evening, ending weeks of tense negotiations between lawmakers in both chambers and the Governor’s Office. A shutdown would have occurred if the budget wasn’t finalized before the June 30 deadline.
The budget includes funding increases for a wide range of priorities, including public safety, transportation, education, health services, and water infrastructure. Key allocations in the final plan include:
$92 million for public safety.
$119 million for transportation.
$281 million for K-12 education.
$29 million for higher education.
$182 million for health and welfare services.
$12 million for water initiatives.
The final version was largely based on a Senate proposal initially approved the week before. After two previous House-led budgets were vetoed by Hobbs, lawmakers from both chambers came together to amend and re-pass the Senate’s original version.
Negotiations focused on avoiding a repeat of the earlier budget impasses, with minimal changes made in the House to expedite the process. Leadership on both sides emphasized compromise and urgency as the deadline approached.
With the new budget in place, Arizona avoids what would have been its first-ever state government shutdown, and agencies across the state can continue operating without interruption.
