♪.

>> COMING UP NEXT ON "ARIZONA HORIZON."

IT'S THE JOURNALISTS' ROUNDTABLE.

WE'LL LOOK AT THE WEEK'S TOP STORIES, INCLUDING THE GOVERNOR'S CHIEF BUDGET DIRECTOR ANNOUNCING RESIGNATION.

JOURNALISTS' ROUNDTABLE IS NEXT ON "ARIZONA HORIZON."

>> GOOD EVENING, AND WELCOME TO "ARIZONA HORIZON."

I'M TED SIMONS.

IT'S FRIDAY, AND THAT MEANS IT'S TIME FOR THE JOURNALISTS' ROUNDTABLE, AND JOINING US TONIGHT, MARY JO PITZL OF "THE ARIZONA REPUBLIC" AND AZCENTRAL.COM.

WAYNE SCHUTSKY OF KJZZ RADIO AND CAMRYN SANCHEZ ALSO FROM KJZZ RADIO.

THANK YOU FOR JOINING US.

THE BUDGET DIRECTOR LEAVING, WE'LL GET TO THAT.

LATE TODAY NOW PROP 123, THERE IS MOVEMENT ON PROP 123?

>> FINALLY A PROPOSITION ON THE TABLE.

THIS ONE FROM SENATOR J.D.

MESNARD AND REPRESENTATIVE MATT GRESS, THIS WOULD EXTEND THE CURRENT PROP 123 WHICH HAS BEEN IN PLACE FOR A DECADE.

GOING TO EXPIRE AT THE END OF JUNE AND PROVIDES MONEY FOR PUBLIC SCHOOLS.

THIS ONE, THOUGH, IS A LITTLE DIFFERENT THAN ITS PREDECESSOR BECAUSE THE BILL AS IT'S WRITTEN RIGHT NOW, SAYS LET'S DEDICATE THIS TO TEACHERS AND IF WE DO THAT, THEY'LL GET A $4,000 BUMP IN BASE SALARY IN YEAR ONE OF THIS, BUT THIS IS VERY AMENDABLE.

THEY'VE GOT A LOT OF IDEAS IN THERE, A LOT OF IDEAS ON THE OUTSIDE, AND WE'LL SEE WHAT COMES OUT OF THE SAUSAGE MAKING FACTORY, IF IT DOES, AND IF LAWMAKERS DECIDE TO SEND IT TO THE BALLOT, WHICH WOULD HAVE TO BE APPROVED BY THE VOTERS AT SOME FUTURE ELECTION.

>> WAYNE, NEEDS TO BE AMENDABLE BECAUSE THE GOVERNOR IS NOT CRAZY ABOUT ALL THE MONEY GOING TO TEACHERS?

>> THEY DON'T NEED THE GOVERNOR ON BOARD TO SEND IT DIRECTLY TO VOTERS.

SHE IS A STAKE HOLDER AND REPRESENTING DEMOCRATIC INTERESTS AND WANTED A HIGHER FUNDING LEVEL THAN WHAT THE REPUBLICANS ARE POSING TO PAY FOR TEACHER PAY AND ASSORTMENT OF OTHER EXPENSES, BUT THEY'RE NEGOTIATES LIKE MARY JO SAID, OUTSIDE FACTORS PLAYING INTO THIS AND SENATOR J.D.

MESNARD SAID THE PROPOSAL ON THE TABLE, WHICH KEEPS THE FUNDING LEVEL CONSISTENT, 6.9%, THERE'S A LOT OF NEGOTIATIONS IT COULD MOVE AROUND AND WHAT IT'S PAYING FOR COULD MOVE AROUND.

>> 6.9%, SOME SAY IT'S TOO HIGH, SOME NOT HIGH ENOUGH, WHAT'S THAT ABOUT?

>> OUR TREASURER KIMBERLY YEE SAYS STOP WITH THE HIGH NUMBERS, WE NEED TO BE MORE CONSERVATIVE.

PULLING MAYBE 4.5% HYPOTHETICALLY.

THAT'S HER SUGGESTION, HER PITCH.

I DON'T THINK ANYONE IS ENTHUSIASTIC ABOUT THE LEGISLATURE WHO WANTS TO USE THE MONEY FOR BIG CHANGES ESPECIALLY WHEN IT COMES TO TEACHER SALARIES, YOU WANT IT TO BE A SUBSTANTIAL INCREASE.

>> I REMEMBER WHEN THIS CAME ABOUT, THE STATE TREASURER WAS AGAINST THIS AND SOME REPUBLICANS AS WELL.

ARE WE HEARING THAT KIND OF TALK OR IS IT KIND OF OVER?

>> NO, WE'RE NOT.

OVER THE LAST DECADE, THE CONCERNS OF THEN-TREASURER JEFF DeWIT, IT COULD DEPLETE IT.

THE TRUST HAS PERFORMED QUITE WELL, MADE A LOT OF MONEY AND EXCEEDED INITIAL EXPECTATIONS.

THEY THINK WE GOT ROOM TO TAKE 6.9% OUT EVERY YEAR AND EXTEND ELSEWHERE.

>> THIS WAS ONE OF THE BIG THINGS IN THE SESSION?

>> YEAH, THEY TRIED TO DO IT LAST SESSION AND REPUBLICANS CAME OUT WITH THEIR PROPOSAL, DEMOCRATS WITH THEIR PROPOSAL AND NOT ABLE TO MEET IN THE MIDDLE.

WE'RE NOT SEEING SO MANY NUMBERS AND GRAND PLANS THROWN OUT PUBLICLY, THERE IS MORE GOING ON TO GET A DEAL DONE, AND STAKEHOLDERS LIKE THE TREASURER, REPUBLICAN TREASURER TO BE CONSERVATIVE HOW THE MONEY IS SPENT, THEY'RE GOING TO WARN, WE DON'T WANT TO OVEREXTEND THIS BUT REPUBLICANS ARE LOOKING AT THE PERFORMANCE OF THE PAST TEN YEARS AND SAYING THE FUND GREW, SO LET'S KEEP IT AT 6.9.

>> USE IT IF IT'S THERE.

CAMRYN, WHO IS SARAH BROWN, AND WHAT DID SHE USED TO DO?

>> I GUESS FOR THE TIME BEING SHE IS THE BUDGET DIRECTOR FOR THE GOVERNOR.

BEEN IN THE ROLE FOR A COUPLE OF YEARS, AND HER LEAVING IS AN AWKWARD TIME BECAUSE THEY OPENED THE SESSION AND STARTED BUDGET NEGOTIATIONS AND THE GOVERNOR'S STAFF SUBMITTED BUDGET PROPOSAL AND SHE SAYS ACTUALLY, I'M LEAVING, GOOD LUCK.

THERE IS SPECULATION WHY SHE MIGHT BE DOING THAT NOW.

>> WHAT SPECULATION?

>> AS HAS HAPPENED IN THE PAST, WHEN THE DEMOCRATIC GOVERNOR STAFF PRESENTED BUDGET IDEA TO THE LAWMAKERS OF THE CAPITOL, THEY GOT PUSHBACK, AND TOUGH QUESTIONS I THINK THE REPUBLICANS CALLED IT.

ONE OF THE ACCUSATION SAYS THEIR NUMBERS WERE WAY OFF PARTLY BECAUSE THEY DIDN'T ACCOUNT FOR ANY POTENTIAL GROWTH OVER THE NEXT FEW YEARS IN AHCCCS, OUR STATE MEDICAID AGENCY.

>> MARY JO, WHY THIS MOVE AND WHY NOW?

>> SARAH BROWN SAID I'VE ENJOYED DOING THIS BUT I'VE GOT TO MOVE ON AND DO OTHER THINGS WITH MY LIFE.

BUT IT'S VERY EASY TO DRAW A CONNECTION BETWEEN THE BUDGET, THE GOVERNOR'S PROPOSAL HAS GONE THE A LOT OF GRIEF, BROWN PRESENTED IT TO LEGISLATIVE PANEL HER FIRST YEAR IN OFFICE BUT THE NEXT TWO BUDGETS CAME ALONG.

IT WENT TO ANOTHER STAFFER.

YEAH, THERE HAVE BEEN PROBLEMS WITH THE PROJECTION, AND I WOULD SAY NOT ESTIMATING GROWTH IN THE OUTYEARS FOR THE MEDICAID PROGRAM, MUCH ADO IS MADE ABOUT THAT, SURELY MEDICAID IS PROBABLY GOING TO GROW.

THEY'RE MAKING A BUDGET FOR THIS YEAR AND WANT A LONGER TERM PLAN WHICH IS PRUDENT, BUT THE OUTYEARS WERE NOT PROJECTED WELL.

>> I WAS GOING TO SAY, THE OUTYEARS NOT PROJECTED WELL, IS IT THAT BIG OF A STICKLER OR HEY, WE NEED TO FIX THAT?

>> I THINK IT'S BOTH.

I THINK MARY JO IS CORRECT WHAT SHE'S SAYING, THERE'S LOTS OF EXPENSES CONTINUING SO YOU HAVE TO ENVISION WHAT THE EXPENSES GOING OUT ARE AND COUPLED WITH OTHER ISSUES WHERE WE'RE FACING A SHORTFALL FOR AGENCIES, SOME OF IT HAS TO DO WITH AHCCCS AND SOME SERVICES FOR DEVELOPMENTALLY DISABLED CHILDREN THROUGH THE DEPARTMENT OF ECONOMIC SECURITY.

REPUBLICANS ARE TYING THOSE TOGETHER AND SAYING YOU MESSED UP THE PROJECTIONS LAST YEAR AND WE NEED TO FIX IT, WE DON'T WANT TO SEE IT HAPPEN AGAIN.

IT'S DIFFERENT THAN THE POLICY DISAGREEMENTS WE'VE SEEN REPUBLICANS HAVE.

WE DON'T LIKE SPENDING ON THIS THING, THEY'RE SAYING WE THINK THE MATH IS WRONG.

>> TWO YEARS AGO, WE HAD TWO BILLION DOLLARS OF A SURPLUS AND THEY GAVE IT ALL AWAY.

SPEND IT ALL ON THINGS INSTEAD OF PUTTING IT IN THE RAINY DAY FUND OR BOOSTING UP RESERVES.

>> ANY IDEA WHO WOULD REPLACE HER AS BUDGET DIRECTOR?

ANY IDEA HOW WOULD IMPACT NEGOTIATIONS WITH THE LEGISLATURE?

.

>> YOU WANT SOMEONE RUNNING THE SHIPMENT OF A LOT OF PEOPLE AT THE GOVERNOR'S OFFICE ON THE BUDGET TEAM, SO IT COULD BE ONE OF THEM OR LOOKING FOR SOMEBODY NEW.

I'M NOT REALLY SURE, BUT AGREE WITH WHAT WAYNE SAID, THIS IS ABOUT THE MATH ISN'T MATHING THE WAY THEY WANT IT TO.

THE GOVERNOR AND THE STAFF IS DIFFERENT FROM THE LEGISLATIVE STAFF.

THEY HAVE SEPARATE TEAMS AND HOPE THE NUMBERS MESH BECAUSE WE'RE ON THE SAME PAGE.

WHEN YOU ARE GOING TO THE BUDGET NEGOTIATIONS AND NO ONE IS AGREEING HOW MUCH MONEY YOU HAVE OR WILL HAVE, THAT MAKES IT HARD.

>> MARY JO, SOUNDS AS THOUGH THE GOVERNOR'S OFFICE AND THE SECRETARY OF STATE'S OFFICE REGARDING THE MVD, THIS GLITCH THING IT.

KEEPS GOING BACK AND FORTH.

WHAT'S HAPPENING HERE?

>> I DON'T KNOW.

I THINK THEY'RE IN JUNIOR HIGH.

AT THE HEART OF IT IS THIS PROBLEM THAT EMERGED RIGHT BEFORE THE ELECTIONS LAST FALL THAT FOUND OUT THAT OOPS, IT LOOKS LIKE THERE'S A LOT OF PEOPLE WHO HAVE BEEN GIVEN THE RIGHT TO VOTE A FULL BALLOT.

ALL THE FEDERAL RACES, THE STATE RACES, THE LOCAL RACES WHO AREN'T CITIZENS OR MAYBE CITIZENS BUT NEVER PROVIDE PROOF THEY WERE CITIZENS, SO THAT CREATED A BIG HUBBUB IN SEPTEMBER.

THEY FOUND A TEMPORARY FIX SO THE ELECTIONS COULD GO ON BECAUSE THE MAJORITY OF VOTERS THAT WOULD BE AFFECTED BY THIS TENDED TO BE REPUBLICANS, AND SO WE'VE GOT TO TAKE CARE OF THAT, LET EVERYBODY VOTE.

I THINK I MIGHT BE ONE OF THOSE PEOPLE BECAUSE I'M OLDER AND I'VE HAD A DRIVER'S LICENSE FOR A LONG TIME.

>> ANYONE WHO'S BEEN AROUND FOR A WHILE MIGHT BE ON THE LIST.

>> EXACTLY.

NOW WE'VE GOT THE SECRETARY OF STATE'S OFFICE TAKING A LOOK TO FIND OUT WHAT HAPPENED HERE?

THE GOVERNOR'S APPOINTED HER OWN PEOPLE TO LOOK AT THAT AND THE E-MAIL THAT EMERGES SHOWS FIGHTING BACK AND FORTH.

THE BIG TAKEAWAY I TOOK FROM THAT, THERE IS NO WAY THEY'LL HAVE THE VOTER ROLLS CLEANED UP FOR ELECTIONS THIS SPRING.

>> I WAS GOING TO ASK ABOUT THAT.

FIRST OF ALL, A SECRETARY OF STATE EMPLOYEE IN 2017, MICHELE REAGAN?

>> IT WAS.

>> FIRST NOTICED THIS, AND WE'RE JUST NOW HEARING ABOUT IT MORE, I DON'T KNOW WHAT THAT'S ALL ABOUT.

SOMETHING'S GOT TO GET DONE BEFORE THE SPRING ELECTIONS?

>> ESSENTIALLY WHAT WAS PITCHED WHEN WE HAD THE JUDICIAL RULING FROM THE SUPREME COURT THAT ALLOWED THE FOLKS TO VOTE, LET'S GET THE ELECTION OUT OF THE WAY, AND NOTIFY THESE PEOPLE, THEY CAN PROVIDE THE INFORMATION THEY NEED, BING, BANG, BOOM, THEY CAN VOTE IN THE NEXT ELECTIONS.

THE NEXT ELECTIONS AREN'T UNTIL 2026, WE HAVE JURISDICTIONAL ELECTIONS COMING UP, AND EVERYONE IS STUCK ON FIXING THE BROAD PROBLEM WITHOUT FINDING THE IMMEDIATE PROBLEM WHICH IS GETTING THESE PEOPLE TO HAVE THE DOCUMENTATION SO THEY CAN VOTE IN THE NEXT ELECTION.

>> WE'VE ONLY GOT BING, NOT THE BANG AND THE BOOM.

[LAUGHTER] >> WE HAD THE LAST ELECTION WITH THIS PROBLEM THERE, DO WE HAVE ANOTHER ELECTION?

THE JURISDICTIONALS IN THE SPRING?

DO WE DO THOSE WITH THE PROBLEM HANGING OVER AS WELL?

>> PROBABLY NOT.

I THINK THE COURT WOULD ERR ON THE SIDE OF CAUTION, YOU DON'T WANT TO TAKE AWAY HUNDREDS OF THOUSANDS OF PEOPLE'S RIGHT TO VOTE BECAUSE THEY MAY OR MAY NOT HAVE SHOWN PROOF OF CITIZENSHIP.

I DON'T THINK THERE'S ENOUGH TIME TO ADDRESS IT BEFORE THAT HAPPENS, AND THERE'S BEEN FINGER-POINTING IN THE MEANTIME, NOBODY WANTS TO TAKE THE FALL FOR THE HUGE MESSUP AND I THINK SOMEBODY GOT FIRED AND I THINK THAT HER COLLEAGUE SAID IT WAS VERY SAD BECAUSE THEY DIDN'T THINK IT WAS HER FAULT, REALLY.

>> YEAH, AS YOU MENTIONED BEFORE, THIS HAPPENED OVER THE COURSE OF MULTIPLE ADMINISTRATIONS, REPUBLICANS AND DEMOCRATS, THAT THIS WAS FLAGGED MULTIPLE TIMES AS A PROBLEM.

I DON'T KNOW ANYONE THAT FLAGGED IT KNEW IT WAS THIS WIDESPREAD.

IT WAS INDIVIDUAL CASES, BUT NOW FOCUSING ON WHO WAS AT FAULT, NO ONE WANTS TO BE THE FACE OF THE ISSUE, BUT JUST FIX IT.

>> YEAH, ARE THE FINGERS DRAWING BACK A LITTLE BIT?

ARE THEY JUST GOING AT IT?

>> I THINK THE PROCESS IS MOVING ALONG TO START CLEANING UP THE ROLLS.

LISTS SENT OUT TO THE COUNTY, MOHAVE, HERE IS THE QUESTIONABLE ONES IN YOUR COUNTY, IN GRAHAM COUNTY.

THEY DON'T HAVE THE GUIDELINES WHAT THEY'RE SUPPOSED TO USE AND WORK WITH THE MVD BECAUSE THAT'S HOW MANY, MANY PEOPLE REGISTER TO VOTE, WHEN THEY SIGN UP FOR A DRIVER'S LICENSE.

>> YOU MIGHT BE ON THE LIST, I MIGHT BE ON THE LIST, ANYONE VOTING BACK IN THOSE DAYS, HOW DO YOU KNOW IF YOU'RE ON THE LIST?

>> THAT'S WHAT WE'RE WAITING TO HEAR FROM COUNTY RECORDER AND THANKS FOR REMINDING ME THAT WE'RE ALL OLD.

>> I DO THAT ON A REGULAR BASIS.

CAMRYN, STARTER HOMES, BILL, LOOKS LIKE SOMETHING HAS PASSED IN THE HOUSE.

WHAT DOES IT DO?

NOT DO?

>> THIS WAS A CONTENTIOUS BILL THAT DIDN'T MAKE IT INTO LAW LAST TIME AROUND.

IT'S A HOUSING BILL PUSHED BY INTERESTING COALITION OF FOLKS WITH THE LEGISLATURE AND NOTABLY HAS BIG REPUBLICAN LAWMAKERS BEHIND IT.

THE IDEA BEHIND THE BILL IS IN A NUTSHELL TO MAKE IT EASIER TO CREATE STARTER HOMES, SMALL SINGLE-FAMILY HOMES, CUTE LITTLE HOUSES WHERE EVERYBODY CAN BE HAPPY.

IF WE DO THAT, AND MAKE IT EASIER TO BUILD THEM, WE WILL HAVE DEVELOPERS DOING IT, IT WILL INCREASE HOUSING SUPPLY BUT ALSO THE AFFORDABILITY BECAUSE OF SUPPLY AND DEMAND.

THAT'S A LOVELY CONCEPT.

THERE ARE CONCERNS FROM THE CITIES AND TOWNS HOW THIS WOULD AFFECT LOCAL CONTROL AND ZONING AND COMMUNITIES.

IN HOBBS' VETO, SHE SAID I'M CONCERNED ABOUT THIS WILL ALLOW BUILDING IN ZONES IT'S NOT ZONED FOR, IT COULD AFFECT FIRE ISSUES AND AIRPORT LAWS AND THE SPONSOR SAID THAT'S RIDICULOUS.

>> THE MINIMUM SIZE, WAYNE, SOUNDS LIKE YOU CAN'T REQUIRE MINIMUM LOT SIZES MORE THAN 1500 SQUARE FEET.

MINIMUM LOT SIZES 1500 SQUARE FEET?

>> IN CERTAIN TYPES OF DEVELOPMENTS OVER A CERTAIN SIZE.

ESSENTIALLY TRYING TO STOP CERTAIN CITIES WHO DON'T WANT STARTER HOMES IN THEIR COMMUNITY FROM LEGISLATING THEM OUT OF EXISTENCE.

SO THEY'RE ARGUING THAT THIS WOULD CREATE AFFORDABLE HOMES, NOW AGAIN, THE LEAGUE OF CITIES AND TOWNS SAY THERE'S NOTHING IN THERE THAT SAYS THEY HAVE TO BE AFFORDABLE AND MANY OF US HAVE SEEN CUSTOMARILY PROPERTIES IN CERTAIN PARTS OF TOWN THAT ARE VERY EXPENSIVE.

THAT'S THE CONCERN ON THE OTHER SIDE OF THE EQUATION.

>> THIS PERTAINS IF YOU HAVE A FIVE-ACRE CHUNK OF LAND, YOU CAN CHOP IT UP INTO 1500-SQUARE-FOOT LOTS.

JANINE CONNELLY THE NEW REPRESENTATIVE FROM TEMPE SAYS I DON'T THINK WE HAVE FIVE ACRE LOTS IN TEMPE.

HOW MUCH OF AN IMPACT WOULD THIS MAKE?

LOT OF CITIES ARE BUILT OUT IN THE AREAS WHERE PEOPLE WANT TO LIVE.

>> CITIES AND TOWNS HAVE THEIR OWN IDEA?

WHAT ARE THEY CALLING FOR?

>> I THINK THEY'RE GOING TO KEEP ON SAYING THEY WANT CHANGES UNTIL THE END OF TIME, I DON'T THINK THEY LIKE THE CONCEPT OF IT.

BUT THEY WANT TO BASICALLY KEEP IT UNDER LOCAL CONTROL.

THAT'S WHAT IT COMES DOWN TO IN PRETTY MUCH EVERY HOUSING ISSUE OVER THE LAST FEW YEARS ESPECIALLY WHEN IT COMES TO ZONING, THE IDEA OF BIG GOVERNMENT SAYING YOU CAN'T DECIDE HOW THE COMMUNITY LOOKS, YOU CAN'T DECIDE YOU LOCAL GOVERNMENT ON THESE ISSUES.

THAT'S ALMOST BEEN IN RECENT MEMORY FOR THE PAST SEVERAL DECADES A LOCAL ISSUE AND YOU CAN GO TO THE VERY BORING, VERY LONG PLANNING AND ZONING MEETINGS AND CAN YOU SEE FOR YOURSELF.

THE LAWMAKERS ARE FED UP WITH THE BIG GOVERNMENT.

WHAT'S INTERESTING TO ME IS THE WHOLE THING ABOUT AESTHETIC REVIEW, AND YOU CAN'T BUILD THIS NEW DEVELOPER BECAUSE I DON'T LIKE THE SIZE OF THE WINDOW OR THE COLOR OF THE HOUSE.

THAT SEEMS LIKE SOMETHING REPUBLICANS WOULD BE HATE TO BE TOLD.

DON'T TELL ME WHAT TO DO WITH MY STUFF.

AND YET REPUBLICANS SUPPORT THE OPPOSITION TO THAT, WHICH IS WILD TO ME.

>> A LOT OF THE CITIES ARE RESISTANT BECAUSE THEY HAVE TO DEAL WITH THEIR OWN CONSTITUENTS.

PEOPLE IN EXISTING NEIGHBORHOODS SAY YOU ARE GOING TO PUT A TINY HOUSE ON THE 1500 ACRE LOT, AND THEY WORRY THAT, IF YOU REDUCE THE REQUIREMENTS FOR DESIGN, THAT IT COULD LABEL IT AS A LOWER INCOME PLACE, AND YOU GET THE WHOLE STIGMA AND WHAT DOES THAT DO TO PROPERTY VALUES, WHAT DOES IT DO TO THE OVERALL VALUE OF THE AREA.

WHAT THE LEAGUE OF CITIES IS LOOKING AT, OKAY, I'M HEARING THEY'RE TALKING ABOUT MAYBE NOT A 6,000-SQUARE-FOOT LOT, WHICH IS LIKE THE SIZE, TYPICAL FOR A LOT OF SINGLE FAMILY HOMES, BUT SOMETHING BETWEEN 6,000 AND 1500, MIDDLE GROUND THERE AND A LITTLE MORE CONTROL OVER CERTAIN THINGS.

SO THAT THESE PLACES DON'T LOOK LIKE IMMEDIATE HOUSING PROJECTS.

>> IS THERE ANY GUARANTEE THAT THESE PLACES, WE MENTIONED THE STARTER HOME BILL DOESN'T MENTION ANYTHING EXPLICITLY ABOUT STARTER HOMES, IS THERE ANY GUARANTEE THAT SOMEONE CAN'T SELL IT WITH THE PRICE JACKED UP AND SOMEONE SAYS THEY CAN'T AFFORD THAT.

>> BANKING ON THE SMALLER HOMES MEAN SMALLER PRICES, FOLKS IN SCOTTSDALE KNOW THAT'S NOT TRUE.

A SIMILAR BILL PASSED THROUGH LEGISLATURE LAST YEAR, IT WAS VETOED BY THE GOVERNOR, AND EXPLICITLY ADDRESSED ONE OF THE ISSUES THE GOVERNOR OUTLINED, KEEPING HOMES AWAY FROM MILITARY AIRPORTS.

SO IT WILL BE INTERESTING TO SEE, WITH THAT REMOVED, WHETHER SHE JUSTIFIES THE VETO OR BROADLY POPULAR ENOUGH TO PULL A TAMALE BILL, AND SIGN A BILL SHE VETOED DESPITE MINOR CHANGES.

>> I LOVE THE EXISTENTIAL QUESTION THAT REPRESENTATIVE JUSTIN WILLMUTH HAD, WHAT'S AFFORDABLE?

WHAT'S AFFORDABLE FOR YOU IS DIFFERENT THAN WHAT'S AFFORDABLE FOR ME.

>> THE CITIES AND TOWNS WANT TO SEE NOTHING MORE THAN 120% OF THE MEDIAN INCOME OF THAT AREA.

THEY HAVE A TARGET IN MIND, BUT WE'LL SEE HOW FAR THAT GOES.

CAMRYN, MARIA ELENA CRUZ NAMED TO THE SUPREME COURT, FIRST DEMOCRATIC APPOINTEE IN 20 YEARS.

>> THE FIRST TIME HOBBS GOT TO DO THIS AND PUT SOMEONE ON THE STATE SUPREME COURT.

SHE DID STRESS THAT THE NEW JUDGE, JUDGE CRUZ, HAS A BIPARTISAN HISTORY IN THAT SHE HAD BEEN APPOINTED TO A DIFFERENT COURT BY DOUG DUCEY, OUR LATEST REPUBLICAN GOVERNOR.

SHE SAID THAT IS A WAY TO BE LIKE, DON'T WORRY, SHE'S NOT AN EXTREME LEFTIST PICK OF MINE, YOU ARE GOING TO BE OKAY.

>> I'VE HEARD FROM FOLKS IN THE LEGAL COMMUNITY, THEY'RE EXPECTING A LIBERAL JUSTICE HERE, THEY MIGHT HAVE ANOTHER THING COMING.

IN YUMA, STILL LIVES IN YUMA AND TRAINED BEHIND RELATIVELY CONSERVATIVE JUDICIAL PEOPLE DOWN THERE?

>> YEAH, DEFINITELY.

I THINK ANDREW GOULD, WHO WAS A SUPREME COURT JUSTICE UNTIL A COUPLE YEARS AGO, HE WAS FROM YUMA AS WELL.

THEY HAD A SIMILAR PATH UP TO THE TOP OF THE COURT.

>> FIRST LATINA, FIRST BLACK ARIZONA STATE SUPREME COURT, WHICH THE GOVERNOR MENTIONED AND WANTED TO BETTER REFLECT THE STATE WITH THIS APPOINTMENT.

>> YEAH, I THINK OBVIOUSLY RIGHT NOW WITH WHAT'S GOING ON AT THE FEDERAL LEVEL, A LOT OF FOLK US ON PEOPLE'S IDENTITY AND DIVERSITY IN VARIOUS LEVEL OF GOVERNMENT.

AND WHAT JUDGE CRUZ AND THE GOVERNOR SAID IS THAT YOU CAN MAKE A CHOICE THAT BETTER REFLECTS THE POPULATION AS JUDGE CRUZ DOES, BECAUSE OUR CURRENT SUPREME COURT IS ALL -- THEY'RE ALL WHITE AND CAN BE EXTREMELY QUALIFIED AS JUDGE CRUZ IS.

SHE SERVED ON APPEALS COURT, ON THE COURT IN YUMA, SERVED ON THE COURT IN COCOPAH NATION.

EMINENTLY QUALIFIED BUT REPRESENTS PEOPLE IN THE STATE WHO HAVE NEVER BEEN ABLE TO LOOK AT SUPREME COURT BEFORE AND SEE THEMSELVES.

>> YEAH, WE HAVE ANOTHER CANDIDATE FOR ATTORNEY GENERAL.

HE IS CURRENTLY THE SENATE PRESIDENT.

TALK TO US ABOUT IT?

>> SENATE PRESIDENT WARREN PETERSEN OFFICIALLY FILED A STATEMENT OF INTEREST RUNNING FOR ATTORNEY GENERAL IN 2026.

THE OTHER GUY IS RODNEY GLASSMAN, HE'S WON ONE THING, HE WAS ON TUCSON CITY COUNCIL MANY MOONS AGO AS A DEMOCRAT, BUT AS A REPUBLICAN, UNSUCCESSFUL IN SEVERAL RACES.

PETERSEN IS THE MOST HIGH-RANKING AND PROMINENT NAME IN THE RACE EXCEPT FOR MAYES, IF SHE CHOOSES TO RUN FOR RE-ELECTION.

>> WILL HE BE THE ONLY HIGH-RANKING REPUBLICAN.

DOES THIS CLOSE OUT THE OTHER WANNA-BES?

>> I DON'T KNOW.

REPUBLICANS LOVE TO HAVE CONTESTED PRIMARIES, COULD THIS INVITE OTHER PEOPLE.

MAYBE HE'S NOT FAR ENOUGH MAGA FOR SOME OF THE BASE OF THE PARTY, SO WHO KNOWS WHAT THAT MIGHT BRING US?

>> NO KIDDING, APPARENTLY SAID MAYES HAS BLATANTLY FAILED TO ENFORCE OUR LAWS, ACTIVIST ATTORNEY GENERAL.

IT'S ALREADY STARTED.

>> THE IDEA HE WAS GOING TO RUN HAS BEEN IN THE ETHER FOR A WHILE.

GOING AGAINST BEN TOMA, THEY FILED MANY, MANY LAWSUITS AND BRIEFS AND ALL THESE THINGS, CHALLENGING VARIOUS ACTIONS BY THE FORMER GOVERNMENT UNDER FORMER PRESIDENT BIDEN AND ACTIONS UNDER GOVERNOR HOBBS.

HE'S BEEN TRYING TO BUILD UP THE LAWYERLY CREDENTIALS BECAUSE AS MR. GLASSMAN RECENTLY POINTED OUT, HE HASN'T BEEN A LAWYER ALL THAT LONG AND DOESN'T HAVE WHAT YOU THINK OF AS THE TRADITIONAL COURTROOM EXPERIENCE THAT YOU LOOK FOR GOING INTO THE ATTORNEY GENERAL'S OFFICE, SHOULD BE SAID ATTORNEY GENERAL MAYES DIDN'T HAVE A LOT OF THAT BACKGROUND EITHER WHEN SHE WAS ELECTED.

SO IT COULD BE AN INTERESTING ELECTION NEXT YEAR.

>> SO SINCE THIS WAS THE WORST KEPT SECRET AT THE CAPITOL, WHO'S ANNOUNCED FOR PETERSEN'S SEAT?

>> PETERSEN'S SEAT, I'M NOT SURE.

>> DO WE KNOW?

>> NO.

BUT HIS SEAT MATES ARE -- >> I STUMPED THE PANEL.

IT'S ALL RIGHT.

>> WE CAN SAY IT'S A STATE REPUBLICAN SEAT.

SO YOU'LL LIKELY SEE SHIFTING AROUND, THE HOUSE MOVED OVER TO THE SENATE AND A NEW CANDIDATE JUMPS INTO THE HOUSE.

IT'S GOING TO STAY IN REPUBLICAN HANDS BASED ON WHERE HE LEAVES.

>> AS FAR AS THE SENATE PRESIDENCY.

>> LET'S GO THAT DIRECTION.

>> DAVID GALLIN HAS MORE TIME IN THE SENATE.

>> MAYBE.

LIKE WE MENTIONED, THIS HAS NOT BEEN A WELL-KEPT SECRET, I EXPECT PETERSEN HAS BEEN PREPPING THE PAST TWO YEARS, ESPECIALLY BECAUSE OF HIS ACTIONS IN COURT, JUMPING IN AND FILING THE AMICUS BRIEFS AND FREQUENTLY GOING AFTER MAYES IN PARTICULAR, AND SORT OF ACCUSING HER OF NOT DOING HER JOB.

NOT JUST WHEN HE ANNOUNCED BUT OVER THE COURSE OF THE YEARS, AND THE NEXT TWO YEARS TO COME, SENATE PRESIDENT IS REALLY IMPORTANT QUESTION BECAUSE I EXPECT HE'S PROBABLY GOT SOMEONE IN MIND, POTENTIALLY, AND I THINK THAT PEOPLE AT THE SENATE IN THE REPUBLICAN CAUCUS HAVE BEEN THINKING ABOUT THIS.

I EXPECT PEOPLE HAVE PLANS.

>> WHAT DO YOU THINK THOSE PLANS ARE?

>> I SIDE WITH MARY JO.

SENATOR GALLIN MADE NO SECRET ABOUT WANTING THE PRESIDENCY THIS YEAR.

I BET HE GOES FOR IT AGAIN.

>> GOT TIME FOR THE ISAAC SCHOOL DISTRICT.

HOLY SMOKES, I DON'T KNOW IF WE HAVE ENOUGH TIME ABOUT THAT.

TALK TO US ABOUT THE LATEST.

SOUNDS LIKE PEOPLE ARE GETTING PAID, SOUNDS LIKE THE TOLLESON DISTRICT CAME THROUGH?

>> THE ISAAC SCHOOL DISTRICT AFTER HAVING SELF-INFLICTED FINANCIAL CHAOS AND THE COUNTY WITHHOLDING, SAYING WE'RE NOT GOING TO SEND YOU ALLOCATION OF STATE DOLLARS ANYMORE, YOU RACKED UP DEBT, YOU GOT TO PAY US BACK.

LO AND BEHOLD TODAY, COUNTY TREASURER JOHN ALLEN RELEASED MONEY SO THE PAYROLL CAN GO OUT, THE PAYROLL THAT SHOULD HAVE BEEN OUT TUESDAY CAME OUT FRIDAY.

PEOPLE IN THAT SCHOOL DISTRICT WORK FORWARD TWO DAYS WITHOUT PAY.

THEY'RE GETTING THE BACK PAY.

WHERE IS THIS MONEY COMING FROM?

NEIGHBORING SCHOOL DISTRICT TOLLESON UNION DECIDED THEY WOULD BUY, THEY DID A LEASE PURCHASE AGREEMENT TO BUY TWO PROPERTIES IN THE ISAAC DISTRICT, GAVE MONEY TO ISAAC TO HELP THEM MEET THEIR DEBTS AND PAY THEIR BILL, AND GIVEN THEM 12 YEARS TO PAY IT BACK, AND TOLLESON WILL MAKE A NICE LITTLE MONEY OFF OF THE INTEREST RATE.

>> THE LEGISLATURE, ONE LAWMAKER, REPRESENTATIVE GRESS CALLED THIS A MOCKERY OF FINANCE?

>> I THINK THAT'S WHEN TOLLESON STEPPED IN, HE WAS TRYING TO TIE IT TO ACCOUNTABILITY MEASURES FOR SCHOOL BOARD SUPERINTENDENTS THAT HAVE THE PROBLEMS IN THE FUTURE, MAKING SURE THEY DON'T RUN FOR OFFICE AGAIN.

THAT'S WHY HE'S MIFFED THEY CIRCUMVENTED THAT.

>> SORT OF TO THE POINT WAYNE WAS MAKING EARLIER, THE VOTER REGISTRATION, CITIZENSHIP STATUS.

THERE WAS AN IMMEDIATE RUSH TO FIGURE OUT WHO TO BLAME, WHO'S HEAD TO CHOP OFF, MEANWHILE YOU HAVE TEACHERS PARADING AT THE CAPITOL SAYING WE DON'T KNOW IF WE'RE GOING TO GET PAID TOMORROW.

>> AND THEY DIDN'T.

>> THEY DIDN'T FOR TWO DAYS.

FIX THAT IMMEDIATE PROBLEM, NOW THAT'S BEEN FIXED.

THEY HAD 28 MILLION IN DEBT.

>> IT KEPT GOING UP, THE NUMBERS KEPT GOING UP.

>> THERE'S GOING TO BE PLENTY OF TIME, AND PLENTY OF NOTICE.

THERE HAVE BEEN AUDITOR GENERAL REPORTS ON THE DISTRICT'S POOR PERFORMANCE.

I DON'T KNOW HOW YOU CAN JUSTIFY KEEPING THE BOARD MEMBERS THERE.

GRESS'S BILL GIVES LAWMAKERS THE AUTHORITIES TO FIRE SCHOOL MEMBERS.

USUALLY THE VOTERS GET RID OF ELECTED OFFICIALS THROUGH A RECALL.

>> LAST POINT ON THIS, IS THIS LEGAL?

IS THE AGREEMENT LEGAL, WHAT TOLLESON IS DOING?

>> SO GRESS IMPLIED MAYBE IT ISN'T LEGAL.

HE'S NOT PLEASED ABOUT THE WAY THEY WENT ABOUT FIXING THIS PROBLEM, A WILD OUT OF NOWHERE HAIL MARY PLAY, AND WASN'T THE PLAN HE WANTED, THE PLAN HE PUT FORWARD.

HE FLOATED THE IDEA THE REPUBLICAN COLLEAGUES ARE LOOKING INTO WHETHER IT'S LEGAL OR NOT.

NOTHING HAS BEEN FILED IN COURT, IT'S SUGGESTION FOR NOW, AND I THINK THAT THIS IS FAR FROM THE END OF THIS CONVERSATION.

I COULDN'T BELIEVE WHAT I WAS WATCHING.

COULDN'T BELIEVE I WAS WATCHING TEACHERS WORK WITHOUT PAY.

>> THIS IS THE SAME DEAL THAT THE STATE USED WHEN IT SOLD OFF STATE BUILDINGS DURING THE GREAT RECESSION.

NOBODY SUED OVER THAT.

>> MOCKERY IN ALL DIRECTIONS.

PANEL, THANK YOU FOR JOINING US.

THAT'S IT FOR NOW.

THANK YOU FOR JOINING US.

YOU HAVE A GREAT WEEKEND.