Arizona governor and GOP legislators lock horns over disability services shortfall
Add Axios as your preferred source to
see more of our stories on Google.

Illustration: Allie Carl/Axios
Democratic Gov. Katie Hobbs and Republican legislative leaders are locked in a political tug-of-war over a budgetary shortfall for programs that help people with developmental disabilities, and funding is expected to run dry in coming months if they can't reach an agreement.
The big picture: Hobbs is pushing for $122 million for the Department of Economic Services' Development Disabilities Division (DDD).
Why it matters: DDD serves about 60,000 people with developmental disabilities, and without a funding boost, some could go without care for months before the next fiscal year begins July 1.
Zoom in: Margaret Travillion, CEO of Lauren's Institute for Education (LIFE), said larger organizations might temporarily absorb payroll costs, but most providers can't, leading to possible staff losses.
- Even those that can, like LIFE, would need to recoup expenses next year, she said.
- David Carey, president of the Arizona Disability Advocacy Council, said individuals with developmental disabilities like himself could end up in facilities like nursing homes, where a lack of care could result in secondary conditions like pneumonia.
Catch up quick: Rep. David Livingston, who chairs the House appropriations committee, and other GOP lawmakers blame Hobbs for continuing the federally funded Parents as Paid Caregivers Program without legislative approval, despite a lack of state funding to replace federal money that dried up.
- The appropriations committee last week rejected a proposal by Rep. Nancy Gutierrez, D-Tucson, to provide the $122 million.
- Livingston, R-Peoria, said the issue can be resolved through regular budget negotiations.
Yes, but: Budget negotiations could drag on past the point when DDD funding dries up.
- Last year, the governor and Legislature didn't reach a budget agreement until June. In 2023, it took until mid-May.
The latest: Hobbs spoke at the annual Disability Day at the Capitol on Wednesday, accusing Republicans of "politicizing and weaponizing" the issue and using people who rely on DDD services as "political pawns." She noted that GOP lawmakers approved supplemental funding requests mid-year under Republican Gov. Doug Ducey.
The other side: In a letter to Hobbs on Monday, Livingston accused Democrats of pushing funding without accountability or long-term planning. He called for structural reforms to ensure sustainable funding.
Friction point: Both sides accuse the other of refusing to negotiate.
- Livingston accused the Hobbs administration of refusing his requests for "serious, responsible discussions" on the issue.
- Hobbs told reporters Wednesday that she's willing to negotiate with the Republicans, "but they won't send me anything to negotiate on."
What they're saying: Dawn Bailey, a single mother of a 20-year-old daughter who requires round-the-clock care due to developmental disabilities, called the potential loss of DDD funding a "grave concern."
- Bailey told Axios her daughter is "very medically complex with significant cognitive and physical disabilities. She [requires] 100% full care at 20, so she cannot be alone, she requires care for every aspect of her daily living."
