June 1, 2026

Still cooking a budget. The coming fiscal storm. The bottom line.

June 1, 2026

No budget yet. Despite Republican legislative leaders' statements last week to press that this would be budget week, bills are nowhere in sight. The official line remains that negotiations are going well and that our state is staying on track to meet its constitutionally mandated deadline of midnight on June 30.

Budget deal close, Arizona leaders say - KTAR.com
With the budget clock ticking, Gov. Katie Hobbs says she and Republicans in the Arizona Legislature are close to a deal.

Both Gov. Katie Hobbs and Republican legislative leaders say they continue to meet daily (according to Hobbs, "sometimes twice a day"). Multiple journalists have remarked on the new, oddly conciliatory tone between the two sides, which had before been openly hostile. Hobbs says she's feeling "confident," as Arizona's divided government has faced partisan bickering and political brinksmanship every year of her tenure as governor but has gotten past it to ink deals, and only "very minor sticking points" remain. And Senate President Warren Petersen (R-14) inched his personal budget progress meter from 97% to 99% (but won't predict a date), saying, "The last 1% can be the hardest." 

What watching the legislature feels like right now

Looming giveaways. As for what's in the deal being negotiated behind closed doors, we still don't know specifics, but Republican legislative leaders are claiming early victory on one of the biggest sticking points: tax conformity. Petersen told media that Arizona will fully adopt last year’s disastrous federal changes at the state level, saying Republicans "put a line in the sand” and "would absolutely not budge" on that point. Some Capitol insiders are speculating that this massive $1.4 billion package of giveaways will carry a built-in 3-year expiration, meaning lawmakers would have to vote the giveaways into law again in 3 years if they wanted to put such a dent in Arizona's tax code. That's the best possible outcome on such an ill-advised deal. 

The coming storm. The newest monthly numbers from the nonpartisan analysts at the Joint Legislative Budget Committee show Arizona has more money than initially projected, $115 million above January’s numbers. This increase is primarily coming from capital gains taxes, as pessimistic consumer sentiment drives investors to sell stock. In other words, we’ve got short-term revenue gains but long-term worries.

The conditions driving Arizona's temporary bump in capital gains collections.

This is no surprise: economists on the nonpartisan Finance Advisory Committee warned lawmakers in April that, with inflation and Trump's war in Iran, consumer sentiment is sour and "conditions will likely not return to normal for awhile." Word is that lawmakers plan to use these revenues to balance this year’s budget, filing the looming fiscal storm under “Problems for Later” rather than considering it long-term.

I think they will find the money. I think they will all declare victory, sing "Kumbaya," and say that's great. And then if the revenue numbers go in the tank somewhere down the road... we'll deal with it then. — veteran journalist Howie Fischer speaking to KJZZ

Back in session. Meanwhile, rank-and-file lawmakers (who have been recessed for most of the past month with little official work to do) are slated to return Monday. The Senate plans to vote on a handful of outstanding, mostly inoffensive bills; the House, undeterred by reality, will discuss a crop of veto-bait measures. Lawmakers haven't announced whether they will stick around, but we predict they’ll adjourn again for another week, or until budget bills drop. 
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Arizona Budget Deadline

The bottom line. If you find this incredibly frustrating, you’re not alone. Our state lawmakers’ opaque, secretive behavior and insistence on prioritizing their own interests over those of their constituents is enough to make anyone want to scream. However, nothing at our state Capitol will change until our politicians do. CEBV has long held that, wherever possible, we must work to elect fighters over folders — lawmakers who will uphold our values, not negotiate them away in the face of opposition. Our primary task moving into election season must be to do all we can to elect a new, more representative legislature.

⏰ If you have 5 minutes: Contact Gov. Hobbs at 602-542-4331 or engage@az.gov. Remind her office that you oppose copying federal conformity (i.e., Trump's disastrous tax cuts for the rich) down to the Arizona level. Tell her that, if she must agree to attacking our state's bottom line in this way, the very least she can insist on is a built-in 3-year expiration date for those tax cuts, to guard against the permanent harms of slashing away necessary revenues that will never return. 

⏰⏰ If you have 10 minutes: Repeat the same message to your own state representatives and senator.

⏰⏰⏰ If you have 20 minutes: Contact Republican legislative budget negotiators (below). Remind them that we expect them to build a budget that funds the services Arizonans depend on, not to slash and burn. The least we can do is annoy them; at most they’ll know how unpopular their ideas are. You can contact these lawmakers regardless of what district you live in, as they are negotiating on behalf of the entire state.

☎️ Steve Montenegro (House, R-29) • smontenegro@azleg.gov • 602-926-3635
☎️ Michael Carbone (House, R-25) • mcarbone@azleg.gov • 602-926-4038
☎️ Warren Petersen (Senate, R-14) • wpetersen@azleg.gov • 602-926-4136

⏰⏰⏰⏰ If you have 30 minutes: Scan the list of ballot referral measures that are still alive (especially those marked in the list as high priority), and contact your senator on HCRs and your representatives on SCRs with your expectations. This is especially important if you have Republican lawmakers. We must not allow these harmful measures to get wrapped into negotiations as the price of someone’s budget vote. If you've done this recently, it's time to do it again.

⏰⏰⏰⏰⏰ If you have 45 minutes: Choose one or more bills from the Bills on the Floor section below and reach out to your representatives, senator and/or the governor as indicated.

⏰⏰⏰⏰⏰⏰ If you have 60 minutes: Join us on Zoom for our CEBV Happy Hour conversation, packed with political analysis, conversation and community. This week we'll talk with TJ L'Heureux of the Arizona Agenda. Happy Hour meets every Sunday at 4 PM through the end of legislative session. We're looking forward to seeing you!

These bills are scheduled for floor action; RTS is not available. Anything listed as being "scheduled for floor debate" may also be voted on. After the votes, bills will proceed to the governor's desk for her signature or veto. To express your views, directly contact your senator for bills being heard on the House floor and your representatives for bills being heard on the Senate floor. You can also contact the governor at 602-542-4331 or engage@az.gov.

Affordability

SB1049, sponsored by Wendy Rogers (R-7), would upend the current basis of deciding spousal support in a divorce. Insultingly, it lowers the standard of living factor to one-half of the marital standard of living, instead of the entire marital standard of living — as if people could spend half as much and still afford a home. When is the last time the sponsor looked for an apartment or paid rent? The sponsor stated in committee that she introduced the bill because "there's a racket out there" of people who marry and divorce solely to obtain lifetime spousal benefits. Scheduled for House floor debate, 6/1. OPPOSE. 

Energy, Water & Climate

🌟 HB2342, sponsored by Stacey Travers (D-12),  would require homeowner's associations to allow reasonable shade structures in residents' back yards. The HOAs could adopt rules on size, placement and appearance. In our rapidly heating desert climate, shade is a necessity. This bill will help homeowners protect their families from excessive heat, reduce energy costs, create more usable outdoor living spaces, and quickly and sustainably adapt to rising temperatures. Scheduled for a House final vote, 6/1. SUPPORT. 

🌟
Any bill you see marked with this sparkly star 🌟 is a rare and wonderful thing: a bill we can support!

SB1332, sponsored by John Kavanagh (R-3), would mandate a legislative review of whether state participation in light rail expansion is "warranted." This review is designed to dig for evidence that light rail is overly expensive, inflexible and economically harmful, despite the fact that voters have repeatedly approved it. The sponsor has made no secret of his distaste for light rail; he and his Republican colleagues are doing everything they can to obstruct it. Lawmakers should listen to voters and honor their intent, not try to thwart it. Scheduled for House floor debate, 6/1. OPPOSE.

🐟 SB1418, sponsored by Frank Carroll (R-28), is a bill vetoed last year that would ban counties from using zoning regulations for small modular reactors colocated with "a large industrial energy user," such as a data center or aluminum smelter. The purpose seems to be to pepper our state with nuclear-powered data centers. This flies in the face of voter wishes; Arizonans of all political affiliations are pushing back against data centers in our communities due to their excessive land, energy and water usage. Part of a package of Republican-sponsored bills that would create broad exemptions for this untested, hazardous technology and force it into our state. Scheduled for House floor debate, 6/1. OPPOSE. 

🐟
FISHING FOR VETOES
If you see this little fish next to a bill, it indicates a failed or previously vetoed idea — something intended as "bait" to artificially drive up the governor's veto count and bolster stinky talking points.
"Any man who puts his intelligence up against a fish and loses had it coming." — John Steinbeck

SB1519, sponsored by Tim Dunn (R-25), would increase the weight limit for off-highway vehicles from 2500 to 3500 pounds at the request of Polaris Industries, an off-road vehicle company. Excessive off-road travel in Arizona is already destroying pristine habitat; heavier vehicles will do even more harm. The bill has been amended to subject these heavier vehicles to a reduced vehicle license tax instead of no tax, which basically means Arizona would be selling our desert to Polaris to be torn up in exchange for a small amount of revenue. Scheduled for House floor debate, 6/1. OPPOSE.

Public Safety

🌟 HB2641, sponsored by Sarah Liguori (D-5), would ban PFAs from being used in firefighting foam. Studies have found high levels of these "forever chemicals" in the blood of firefighters; they cause serious health problems like cancer, high cholesterol, depressed antibody response and reproductive issues. Limiting PFAs would benefit public health and help protect our food and water from contamination. Scheduled for a House final vote, 6/1. SUPPORT.

🌟 HB2673, sponsored by Consuelo Hernandez (D-21), would establish a study committee to institute basic safeguards for screening and treating mental illness in prisoners, a long-overdue move. In 2022, a federal judge ruled mental health care for incarcerated Arizonans is so bad it amounts to cruel and unusual punishment. This bill is not only ethically imperative, but is a small step toward reforming Arizona's prison system so it is not continually being held in contempt of court and accruing millions of dollars in fines. Scheduled for a House final vote, 6/1. SUPPORT. 

HB2946, sponsored by Khyl Powell (R-14), would create a host of restrictions making it difficult for cities and counties to thoughtfully plan their growth. Increases would be capped at 50% and limited to one every four years, except with unanimous approval and under specified extraordinary circumstances, and cities and counties would be banned from charging development fees for parks and libraries or from basing fees on residence size or number of bedrooms. Scheduled for a House final vote, 6/1. OPPOSE.

SB1624, sponsored by David Gowan (R-19), would institute a host of limits on photo radar, including capping the cost of tickets at $75, banning cities from suspending or revoking a driver license based on information from a red-light camera, and banning insurance companies from raising rates or canceling coverage because someone gets photo radar speeding or red-light tickets. Nobody likes a ticket, but Arizona has had speed cameras since 1987 for good reason. Numerous studies have found both speed and red-light cameras offer many safety benefits, reducing traffic crashes and injuries by up to 35 percent. These ill-considered limits will lead to more dangerous roads and more collisions. Scheduled for House floor debate, 6/1. OPPOSE. 

SB1725, sponsored by JD Mesnard (R-13), would declare "excessive marijuana smoke and odor" a public nuisance, making it a criminal activity that endangers public health and safety. Violators would be subject to nuisance law. Prop 207, which voters approved in 2020, already bans smoking marijuana in public spaces and open areas, or anywhere other than one's own home or private property. The measure also fails to define the term "excessive," which could lead to absurd or unjust outcomes. A similar ballot referral, SCR1048, failed to clear the Senate. Scheduled for House floor debate, 6/1. OPPOSE.

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2026 Session Timeline

Wednesday 6/24: Early voting begins for the 7/21 primary election
Tuesday 6/30: Constitutionally mandated deadline to pass a state budget

Committees & Contacts

Here's a handy list of lawmaker contact info, committee chairs and assignments.

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Congratulations, you made it to the end! Please enjoy this short video of Cairo and the Nile river delta seen from Earth orbit, filmed by astronaut Jessica Meir, who is living on board the International Space Station: