PHOENIX — Arizona’s latest budget impasse has moved beyond taxes, schools, Medicaid, and agency spending into a more revealing political standoff: whether Gov. Katie Hobbs (D) or House Speaker Steve Montenegro (R-29) should be the one to call first.

The dispute follows House Republicans’ passage of a $17.9 billion budget package, which GOP leaders say would implement many of the federal “Big, Beautiful Bill” provisions, including nearly $1.5 billion in tax relief over three years, eliminate state taxes on tips and overtime, expand child-care tax relief, increase the dependent tax credit, and spend roughly $800 million less than Hobbs’ latest budget proposal. Republicans also say that, in addition to tax relief, the plan funds key core services, including K-12 education, public safety, and child protection.

Yet despite the GOP agreeing to several key Democrat funding requirements, Hobbs has objected to key portions of the Republican plan, including proposed eligibility changes affecting Medicaid and SNAP. Her office has also criticized Republicans for omitting her proposal to repeal the state’s data center tax exemption, which she claims could raise $38 million in annual revenue.

But the policy fight is now being overshadowed by what can only be described as a childish argument over who should call whom.

Montenegro says that Hobbs demanded that Republicans provide a public budget proposal, which he claims they did. He is insisting that it’s now up to Hobbs to re-engage.

“We’re waiting for her to pick up the phone, email us, text us,” Montenegro said, adding that Hobbs was the one who “walked away” from negotiations weeks ago.

Hobbs’ office, meanwhile, says it is still reviewing the plan and is “awaiting a sign” that Republicans are serious about bipartisan negotiations.

House Assistant Minority Leader Nancy Gutierrez (D-18) pushed back on Montenegro’s posture, saying, “The last time I looked, she’s the governor,” arguing that perhaps the Speaker should call her.

That exchange captures a deeper dysfunction at the Capitol: Both sides claim they are ready to negotiate, yet neither appears willing to make the first move without framing the other as unreasonable.

The risk is that a substantive and necessary budget debate is devolving into nothing more than performative brinksmanship. Hobbs previously threatened to veto (nearly) all GOP bills until Republicans produced a budget plan, saying Arizonans deserve more than “political games.” Republicans answered with a “good faith” proposal and now accuse Hobbs of intentionally delaying the budget to pressure the GOP for concessions.

With the Senate yet to weigh in on the House plan, the budget is not yet final. But unless someone blinks first, Arizona’s budget negotiations may be more about ego than arithmetic.