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Arizona confronts $1 billion deficit as state Legislature opens for 2024

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Arizona confronts  billion deficit as state Legislature opens for 2024

A steep budget deficit caused by plummeting tax revenues and escalating school voucher costs will be in focus Monday as Democratic Gov. Katie Hobbs and the Republican-controlled Arizona Legislature return for a new session at the state Capitol.

The Legislative new year officially begins in the afternoon with the governor’s annual State of the State address. The goal is to wrap up the legislative session within 100 days, but lawmakers typically go until May or June, especially when there are difficult problems to negotiate like a budget shortfall.

ILLEGAL IMMIGRANTS SEEN POURING INTO US THROUGH BREACH IN BORDER WALL IN ARIZONA

The state had a budget surplus of $1.8 billion a year ago. But it now has a shortfall of about $400 million for the current fiscal year and another $450 million shortfall the year after.

A tax cut approved by legislators in 2021 and signed into law by Hobbs’ Republican predecessor, Gov. Doug Ducey, replaced the state’s graduated income tax with a flat tax that took full effect last year. Arizona subsequently saw a decrease of over $830 million in revenues from income taxes, marking a nearly 30% decline from July through November.

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Gov. Katie Hobbs of Arizona is seen here delivering her State of the State address at the Arizona Capitol in Phoenix on Jan. 9, 2023.  (AP Photo/Ross D. Franklin, File)

Meanwhile, a school voucher program expansion that originally was estimated to cost $64 million for the current fiscal year could now top $900 million, according to budget analysts.

ARIZONA NONPROFIT PROVIDES SAFE PLACE AND SUPPORT FOR HOMELESS, PREGNANT MOMS: ‘OWE MY BLESSINGS TO THEM’

The voucher program lets parents use public money for private-school tuition and other education costs. Nearly 73,000 students participate now that all students can get the vouchers. The average scholarship is roughly $9,700 per student.

Water will also be an issue for the Legislature amid a severe long-term drought in the arid southwestern state. Concerns are growing in Arizona about shortages from the Colorado River system, which provides the state with about 40% of its water, and about shrinking supplies of groundwater and regulation in rural areas.

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Calling drought the “challenge of our time,” Hobbs has limited housing development in parts of metro Phoenix over water concerns and canceled state land leases that for years gave a Saudi-owned farm nearly unfettered access to pump groundwater.

Worries about a record number of migrant arrivals on Arizona’s southern border could also be a potent issue for state lawmakers in an election year.

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Los Angeles, Ca

Jury says it is deadlocked in trial of man accused in Palisades Fire

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Jury says it is deadlocked in trial of man accused in Palisades Fire

Jurors deliberating the fate of the man accused of starting the Palisades Fire, one of the most destructive wildfires in California’s history, failed to reach a verdict Thursday afternoon, telling the judge they were deadlocked.

A spokesperson from the United States Attorney’s Office told KTLA that jurors will continue to deliberate until they reach a verdict or give up.

Jonathan Rinderknecht, 30, a former Uber driver and one-time Pacific Palisades resident, is accused of starting the Lachman Fire on New Year’s Eve. The fire continued to smolder underground for about a week, even after Los Angeles firefighters believed it had been extinguished.

Flames reignited on Jan. 7, erupting into the deadly Palisades Fire that killed 12 people and destroyed thousands of homes in the upscale community, authorities said.

  • A courtroom sketch of Jonathan Rinderknecht, 29, during his initial court appearance on Oct. 23, 2025.
  • Palisades Fire Suspect

Prosecutors argued that Rinderknecht deliberately set the fire, claiming he had grown increasingly resentful of wealthy residents and viewed Pacific Palisades as a symbol of that frustration.

“Their case, though circumstantial, is strong,” KTLA legal analyst Alison Triessl said. “The defense is relying on, can they (prosecutors) show beyond a reasonable doubt that Mr. Rinderknecht actually started this fire and it wasn’t the result of fireworks or some intervening cause.”

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The defense argued there is no direct physical evidence tying Rinderknecht to the fire and said the prosecution’s case relies entirely on circumstantial evidence. Rinderknecht did not testify during the trial.

Defense attorney Steve Haney spoke outside the courthouse Wednesday about why he believes it will be difficult for prosecutors to prove how the fire started.

“The lack of scene preservation. The fact that they got there after a lot of the evidence was missing. Not a lot of direct evidence. This is a circumstantial case, which is always difficult as a prosecutor to prove,” Haney said.

Rinderknecht, who was arrested and indicted last October, faces up to 45 years in prison if found guilty of three arson counts, including destruction of property by means of fire, arson affecting property used in interstate commerce and timber set afire.

Tony Kurzweil contributed to this report

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Los Angeles, Ca

Boyle Heights warehouse cleanup begins as crews face 85 million pounds of spoiled food

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Boyle Heights warehouse cleanup begins as crews face 85 million pounds of spoiled food

Cleanup efforts are underway Thursday at the Boyle Heights cold-storage warehouse that burned for eight days after firefighters officially declared the massive blaze knocked down Wednesday evening. Los Angeles Fire Department crews remain at the Lineage warehouse near Union Pacific Avenue and South La Puente Street as they transition into the overhaul phase, searching for […]

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Los Angeles, Ca

Hospital needs help identifying man found unconscious in downtown Los Angeles

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Hospital needs help identifying man found unconscious in downtown Los Angeles

A hospital needs help identifying a male patient who was found injured and unconscious in downtown Los Angeles.

The man is believed to be in his 30s, according to the Los Angeles General Medical Center. 

He was found injured on the ground on Omar Street and has been hospitalized since June 22.

He stands 5 feet 8 inches tall and weighs 176 pounds. He has brown eyes, dark brown hair and tattoos across his upper body.

A male patient in his 30s was found injured in downtown Los Angeles on June 22, 2026. (Los Angeles General Medical Center)

He did not have any personal belongings to help staff identify him or contact loved ones. Workers did not disclose the nature of his injuries.

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Anyone who recognizes the man is asked to call clinical social worker Cesar Robles at 323-409-6885.

The public can also call the L.A. General Medical Center’s Department of Social Work at 323-409-5253 or, after hours from 5 p.m. to 8 a.m., call 323-409-6883. On weekends, call 323-409-5254.

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