June 13,2026 | TRIADVOCATES LLC

June 13, 2026
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Just before sunrise today, Arizona lawmakers adjourned for the year after a marathon of rapid-fire votes. Having just passed the $18.3 billion bipartisan budget on Thursday night (more on that below), most lawmakers arrived at the Capitol yesterday morning expecting to tie up loose ends on remaining bills before closing up shop for the year. But that’s not how things unfolded. Rather, last-minute dealmaking and a Hail Mary attempt to put guardrails on the state’s private school voucher program made for a long night of extremely contentious debate. To fully appreciate the frantic events in the final hours of session, it must be acknowledged that the Empowerment Scholarship Account (ESA) program is widely considered the top priority for both sides of the aisle—Republicans want to protect school choice at all costs and consider it one of the party’s greatest accomplishments, while Democrats are demanding reform for a billion-dollar program they say is fraught with fraud, waste and abuse. Mid-morning yesterday, rumors began circulating that GOP leaders were nearing a deal with the state’s largest teachers’ union to put modest guardrails on the program (i.e., more stringent review of expenses, prohibitions on luxury spending, and a cap on the amount families can roll over for students with disabilities). Why would they do that, you ask? Because in exchange for putting those restrictions in place, the teachers’ union would have agreed to cease gathering signatures to place their own, much more restrictive measure on the ballot. Their initiative, according to some Republicans, would essentially unravel the ESA program we see today. Okay, but what was in it for the teachers’ union if early polling shows Arizona voters are supportive of the tougher ESA restrictions they intend to put on the ballot? Well, as part of the deal, Republican leaders also would have agreed to nix a separate ballot referral that would effectively ban teachers’ unions from using any school resources and would prohibit them from deducting union dues from an employee's paycheck. Alas, the puzzle pieces start to fit. However, the house of cards collapsed around 8 p.m. when GOP Senator Jake Hoffman sided with Democrats (who deemed the proposal too weak) to kill the bill on the floor. Republicans then shifted to an alternative, retaliatory plan, unveiling HCR 2048 (the “Military Families College Savings and Scholarship Protection Act”). Embedded in the language is a clause that Democrats say would effectively bar any reforms to the ESA school voucher system—including, say, the one pushed by the teachers’ union expected to appear on the ballot in November. That bill passed along party lines and, because resolutions only require approval from both chambers, it bypasses the Governor to be placed on the ballot for voter consideration. In a divided government, the resolutions are really the only tactic Republicans have to get measures through that would otherwise be met with a veto from Governor Hobbs. As a result, Arizonans will be asked to consider at least 10 statewide ballot measures. This plan, however, does not come without its risks, as these initiatives, if passed, are virtually etched into stone. More on that below. But first, let's talk budget.
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FY 2027 Budget With three weeks to go until the new fiscal year, lawmakers passed an $18.3 billion bipartisan budget package on Thursday evening. Governor Hobbs signed it late this afternoon. What got off to a rocky start in budget negotiations between Republican leadership and the Governor earlier this year came in for a relatively smooth landing when the state saw an unexpected influx of money thanks to high capital gains. Here are the highlights: Tax Conformity
HR 1 Implementation
The budget includes a 2.5% across-the-board cut to most state agencies, with some exceptions, including the Department of Economic Security, the Arizona State Schools for the Deaf and Blind, Arizona Department of Public Safety, and the Arizona Department of Corrections, Rehabilitation & Reentry. For reference, the Republican spending package initially proposed a 5% cut to all agencies. Education
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Forever? Forever, ever? Arizonans will be asked to consider at least 10 statewide ballot measures in November. If passed, they'll be nearly impossible to amend. Here's why: In 1998, Arizona voters passed the Voter Protection Act (VPA) to ensure the state Legislature could not easily overturn future voter-passed initiatives. Technically, the VPA is an amendment to the state constitution that prohibits legislators from altering, redeveloping, or repealing ballot initiatives. Thus, the only way the state Legislature can amend a voter-created initiative is if it “furthers the purpose” of the initial measure. After that, the amendment must receive a three-fourths vote in the House and Senate. Only if it passes both criteria can the state Legislature alter a ballot initiative, meaning it’s almost impossible—even if there are unintended consequences or technical changes that need to be addressed down the line. This adds even more weight to the flurry of contentious late-night votes that will put Republican initiatives on the ballot. Here’s a quick rundown of those that passed last night:
Campaigns seeking to place measures on the November ballot through the state's citizen initiative process must collect valid voter signatures by July 2, 2026. The following citizen initiative is expected to qualify:
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Agency Director Confirmations Just hours before adjournment, two more of the Governor’s agency director nominees were confirmed by the Senate following Thursday's confirmation hearings.
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Now that session has officially ended, we know the effective date for legislation passed this session will be September 12, 2026, unless otherwise specified. And, with that, we are adjourned. |
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