PHOENIX — Arizona finally has a solution for the $122 million budget hole in the state’s disability services after the Legislature passed a bipartisan funding bill.
The Division of Developmental Disabilities was set to run out of money in one week, threatening services for nearly 60,000 Arizonans. Without additional funding, the program could not pay claims or offer services until the start of the state’s new budget year in July.
Gov. Katie Hobbs signed House Bill 2945 on Thursday afternoon, just hours after the Arizona Senate passed the legislation.
“I’m proud to bring an end to the months of confusion and uncertainty that were forced on Arizonans who rely on the DDD program," Hobbs said in a statement. "Now, Arizonans with developmental disabilities and their families can feel some relief knowing services that allow them to maintain their independence and dignity will continue."
The Arizona House passed the bill Wednesday night after hours of negotiations behind closed doors between Republicans and Democrats.
“This was very difficult, but it came down to teamwork, and House Republicans and House Democrats working together to get the job done,” state Rep. David Livingston told ABC15 after the House vote.
Livingston, who chairs the House Appropriations panel and leads budget talks, said he was relieved and satisfied with HB 2945, which passed 48-11.
“I think the citizens of Arizona won today,” he said.
Bipartisan fix comes together after 'dead on arrival' bill
That victory came after Hobbs dismissed a bill passed by the Senate earlier Wednesday as “dead on arrival.” The legislation, Senate Bill 1734, passed midday Wednesday, largely on party lines.
“We just have to get it done,” state Sen. David Farnsworth said before voting for the bill. “We need to get it done quickly.”
Families who depend on DDD services said Wednesday that their community needed a resolution.
"Our caregivers are really stressed out,” said Michele Thorne, CEO of Care 4 the Caregivers and mother of two. “We're really tired. We have been here way more than we need to be.”
Thorne, whose son receives DDD services, was hopeful after the Senate passed its bill.
“I think that we did see some good changes,” she said. “I think they're moving in a positive direction.”
In the Senate, Democrats objected to pulling some money from a state housing fund and changes to the Medicaid waiver process, all things removed from the bill passed by the House.
“The taxpayers should not have to be put in a position where we're robbing Peter to pay Paul, putting crucial services like the Housing Trust Fund in jeopardy,” state Sen. Ortiz said during the Senate vote. “And all people on AHCCCS should not have to accept what the majority is trying to do with this waiver program here, which could eventually jeopardize every person on AHCCCS’ health care.”
How the House bill differs from the Senate bill
The House bill pulls all of the supplemental funding for DDD from the prescription drug rebates fund, as Hobbs and Democrats wanted. It adjusts the proposed requirement for legislative approval of Medicaid waivers, except in certain cases.
Like the Senate bill, HB 2945 no longer cuts the number of weekly hours for the Parents as Paid Caregivers Program.
“We know that there's no direct care workers staff in Arizona who could actually provide the services to our children, so I was happy to see that change,” Thorne said.
The House bill also adds some reforms to the parent caregiver program and funds a special audit of it.
“This deal ensures critical services for disabled Arizonans will continue, delivers reasonable guardrails for the Parents as Paid Caregivers Program, and protects funding to respond to Arizonans’ housing needs,” Hobbs said in a statement Wednesday night. “It’s time for the Senate to get this negotiated bill on my desk to protect services for these families.”
Lawmakers now must tackle the state budget. The Legislature is supposed to pass a budget within 100 days – a mark they passed on Tuesday.
But HB 2945 offers some hope, Livingston said.
“One of the things it shows is, the governor can rely on the House and the House Republicans and House Democrats to work together to get things done,” he said.
