PHOENIX — Republican lawmakers on Tuesday are set to fast-track a plan to cover a $122 million shortfall so nearly 60,000 Arizonans with disabilities can continue to have state services through the end of June. But a spokesman for Gov. Katie Hobbs told 12News she will veto the proposal, calling it "unserious" and an attack on "disabled Arizonans.
" Funding for the state's Division of Developmental Disabilities (DDD), which provides services for children and adults with autism, cerebral palsy, Down syndrome, and other disabilities, is set to run out at the end of the month . The cause is rapid growth and more family members getting paid to provide services to relatives. The GOP plan includes taking money from three other state entities and imposing significant reductions to the number of hours for parents as paid caregivers, capping their weekly allotment to 20 in October.
It also gives the Legislature more control over the state's Medicaid program, typically run by the governor's office. “This crisis didn’t happen overnight,” said House Speaker Steve Montenegro in a statement. “The Hobbs administration expanded programs in DDD without legislative approval and delayed or ignored key program limitations.
They now want taxpayers to bail them out—without a plan to fix it. Republicans won’t do that." Hobbs said she has had a plan to fully fund DDD services since Jan.
17, when she released her budget. "The Republican bill is unserious. It not only attacks disabled Arizonans, but paves the way for attacks on health care for middle-class kids and people with serious mental illnesses," Christian Slater, her spokesman, told 12News.
"The governor will negotiate with anybody who wants to fund the program and support the families who rely on it. It's clear these lawmakers are not there yet." Republican leaders declined interview requests with 12News.
RELATED: Disabled community rallies at state Capitol for additional funding, but is not allowed to speak at committee hearing on funding Hearings are set to occur at 10 a.m. on Tuesday in the Arizona House Appropriations and Senate Appropriations committees.
The plans—HB 2945 and SB 1734—are "mirror bills." "This expedites the legislative process. Once each chamber votes on their respective bill, just one will be sent directly to the governor," said Kim Quintero, director of communications for Senate Republicans.
The GOP plan would: • Cover the funding shortfall for May and June by taking $38 million from the Housing Trust Fund, $10 million from the Arizona Commerce Authority Competes Fund, and $74 million from the Prescription Drug Rebate Fund. • Require full legislative approval of all Medicaid waiver submissions—including new waivers, renewals, and terminations—before they are sent to the federal government. • Requires all state agencies to report the use and planned use of federal funds, along with contingency plans for when those funds decrease or expire.
• Codifies the scheduled 40-hour weekly cap for Parents as Paid Caregivers (PPCG), effective July 1. • Directs the state to submit a new waiver by October 1, to implement a reduced 20-hour cap for PPCG, while allowing parents to seek additional hours from non-parent direct care workers. • Maintains the PPCG program, but requires full legislative reauthorization when the current waiver expires in September 2027.
Hobbs has said the bills violate several basic rules of budgeting and financial management and could be unconstitutional. As of Friday afternoon, the bills had at least 139 in opposition and six in support, according to the Legislature's online bill status site. Brandi Coon, co-founder of the 6,000-member Raising Voices Coalition, said she expects more than 100 people from the disabilities community to attend Tuesday's hearings and voice opposition.
Coon, a Republican from Queen Creek, said the GOP plan would result in a slow dismantling of the state's Medicaid program, and it's a "wild attempt at control" for Republicans. She added that Republicans are using their plan as leverage to negotiate with Hobbs for the new state budget that begins July 1, and it's "icky" that the GOP is using the disabled community as pawns. Coon said she has a 10-year-old with severe cerebal palsy and constant seizures from epilipsy.
She added that many paid parental providers knew they would only be paid 40 hours a week starting in July. But, she said a cut to 20 hours a week in the fall is too much. "It's essentially saying: 'We don't want to pay for the care, and you will do it for free anyway,'" she said.
Shawn Cutting, who is also worried about losing services at the end of the month, said cutting the paid parental hours in the fall would be devastating. The Phoenix woman is currently paid $19 an hour to help care for her 6-year-old son, Dominic. He has level 3 autism and has significant problems communicating.
"I won’t be able to pay my bills. I could possibly lose my home," she said. "If they cut my hours to 20 hours a week, I won’t be able to find providers.
They say we’re supposed to find backup providers, but there are not backup providers available. That’s why there’s the parent-paid Caregiver Program because there’s a shortage." Cutting added: "I'm not getting rich.
I'm surviving.".
Politics
Republicans want to cut the number of hours caregivers can be paid for when taking care of disabled Arizonans

Legislative Republicans are set to pass a funding gap plan with new restrictions on Medicaid services on Tuesday, but Gov. Katie Hobbs plans to veto it.