National economic uncertainty is impacting Arizona lawmakers and their budget deadline. But this year, there may be good reason to push to the last minute.
President Donald Trump’s fluctuating tariff policies and Congress’ wanting $800 billion in savings − most likely out of Medicaid over a 10-year period − has made it hard to keep up with the economic picture.
Despite some informal conversations on a plan for the state budget, talks have yet to be held between “the big three”: Gov. Katie Hobbs, House Speaker Steve Montenegro and Senate President Warren Petersen. The budget year starts July 1 and the June 30 deadline is quickly approaching.
In January, budget officials expected around $600 million in surplus for lawmakers to use, but the number is looking closer to about half that. It’s hard to predict at the moment how recession fears in Washington, D.C., are going to affect the state.
And yet, lawmakers are creating a wish list of projects they’d like funding in the next year. From proposals to spend $39 million for a road project in the southeast Valley to $15 million for the Prescott rodeo grounds, lawmakers have new demands on the state budget.
That is if the state has the money to pay for them.
This week on The Gaggle, a politics podcast by The Arizona Republic and azcentral.com, hosts Ron Hansen and Mary Jo Pitzl take a look at Arizona’s economic forecast and what it might mean for state spending in the year ahead.
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This article originally appeared on Arizona Republic: Trump’s tariffs, cuts in Congress impacting AZ budget process