STATE CAPITOL, PHOENIX – State Representative David Livingston, Chairman of the House Appropriations Committee, is renewing his warning over the imminent insolvency of the state’s Developmental Disabilities (DDD) program, calling out Governor Katie Hobbs’ administration for its fiscal mismanagement and lack of legislative consultation.

In a letter sent to the governor today, which was also read aloud in today’s Appropriations Committee hearing, Chairman Livingston highlighted the administration’s failure to control runaway costs, noting that the program’s supplemental funding needs have ballooned from $109 million to $122 million in just weeks – jeopardizing critical services as soon as April.

“This administration has made major financial commitments without consulting the Legislature, and now families are staring down the consequences of an unsustainable program,” said Chairman Livingston. “Governor Hobbs must explain why her agencies are making decisions without oversight and what her plan if this program collapses.”

In his letter, Chairman Livingston outlined three key drivers of the cost overruns: increasing eligibility, rate hikes, and the continuation of the COVID-era Parents as Paid Caregivers Program (PPCG). He raised concerns about the lack of cost controls and oversight, questioning whether the eligibility criteria are strict enough and whether service coordinators are under undue pressure to approve excessive hours.

Livingston pointed out that the governor’s FY26 budget proposal seeks an additional $328 million in General Fund spending for the program – doubling its General Fund costs over the past four years.

“Under Governor Hobbs’ watch, the cost of this program has exploded from $750 million to $1.5 billion,” Chairman Livingston said. “The Legislature was blindsided by these numbers, and we need immediate answers on how the administration plans to rein in spending before Arizona families are left with nothing.”

Chairman Livingston is calling on the governor to provide a clear plan for capping hours in the PPCG program, preventing service duplication, and ensuring spending decisions are made with appropriate oversight.

“The state must act now to fix this before families pay the price for this administration’s failure,” Livingston said. “We can’t afford more of the governor’s last-minute budget negotiations while programs Arizonans depend on collapse.”

A copy of the letter is attached and available online https://bit.ly/3WRnpai.

David Livingston is a Republican member of the Arizona House of Representatives serving Legislative District 28 in Peoria. He also serves as Chairman of the House Appropriations Committee. Follow him on X at @Livingston4AZ.