Op-Ed by Arizona House Speaker Steve Montenegro
Last week, the Arizona House of Representatives passed an Arizona First budget focused on increasing take-home pay, lowering costs, and protecting core services. The Arizona Senate is on track to approve it today. Governor Hobbs should sign it.
The fastest way to address an affordability crisis is simple: let people keep more of what they earn.
This budget returns $1.45 billion to taxpayers over the next three years. When the government takes less, families keep more through bigger paychecks, larger refunds, and lower overall tax burdens.
Our plan raises the standard deduction so workers can keep more from each paycheck. It exempts tips and overtime pay, so frontline workers see meaningful relief at tax time. It reduces the cost of raising a family by exempting childcare expenses from state taxes and increasing the per-child tax refund by 25%. And it supports seniors on fixed incomes by exempting retirement income for Arizonans age 60 and older.
The goal is straightforward: you keep more, and the government takes less.
At a time when families are tightening their belts, the government should do the same. Yet the governor’s proposal increased spending to $18.7 billion. The House budget spends $800 million less without compromising the core services Arizonans rely on. It reflects the same discipline families practice every day.
This plan shows that responsible leadership is still possible in divided government. It prioritizes stability, protects taxpayers, and delivers a balanced approach ahead of the new fiscal year.
It fully funds K-12 education with an inflation increase, provides $200 million for public school facility repairs, gives additional support to low-income students, and eliminates co-pays for reduced-price school meals. It protects the most vulnerable by funding congregate care within the Department of Child Safety, addressing rising costs for high-need individuals with developmental disabilities, and strengthening foster care support through community providers.
This is what responsible governing looks like: targeted tax relief, controlled spending, and a commitment to core priorities. It recognizes that affordability is not just a talking point. It is the defining issue for Arizona families.
Governor Hobbs now has a clear choice. She can embrace a balanced, responsible budget that lowers costs and delivers real relief. Or she can reject a plan that reflects the will of a divided government working in good faith.
The House has done its job. We cut taxes. We protected essential services. We kept spending in check.
For Arizona families feeling the strain of rising costs, this budget deserves the governor’s signature.
Steve Montenegro is the Speaker of the Arizona House of Representatives and serves Legislative District 29 in the West Valley, Goodyear, and Surprise. Follow him on X at @SteveMontenegro.
The opinions expressed in this editorial are those of the author.
