"Arizona's Budget Deficit Worsens Amid Tax Cuts and School Voucher Growth"
Arizona is grappling with a nearly $1 billion budget deficit, largely due to a significant tax cut and the expansion of a school voucher program. The tax cut, which replaced the state's graduated income tax with a flat tax, has led to a substantial drop in revenue. Meanwhile, the voucher program's costs have soared beyond initial estimates, now potentially reaching $900 million. Governor Katie Hobbs and the Republican-led legislature are facing challenges in addressing the shortfall, with debates over the impact of the tax cut and the future of the voucher program. Hobbs has proposed reforms to increase accountability in the voucher program, while some Republicans believe budget balancing can be achieved through other measures.