Arizona Morning Roundup 9-18-26: Arizona Keeps Missing HHS Audits, Hobbs Announces Infrastructure District Program, Biggs Pushes Arizona’s Interests In Water Act, and More

Here are the exciting Arizona politics stories we’re following today:

•I CAN GET A WITNESS–Rep. Matt Gress announced late Thursday that Health and Human Services Assistant Secretary for Financial Resources Gustav Chiarello will testify Monday, Sept. 21, before the Joint Legislative Audit Committee over Arizona’s repeated failure to file its federally required Single Audit on time. Arizona has missed the deadline four fiscal years in a row. The FY2025 audit was due March 31 and is still outstanding, and the Auditor General now projects it may not be finished until March 5, 2027—less than four weeks before the next audit comes around. Where is the audit? HHS has warned continued noncompliance can bring additional conditions on federal awards, withheld payments, disallowed costs, or suspension of awards. The Auditor General and the Governor’s Office will also testify, as willJohn Cena and Sydney Sweeney. Just wanted to see if you were paying attention.

•AFFORDABLE INFRASTRUCTURE AND YOU–Governor Katie Hobbs and the Arizona Finance Authority formally launched the State Affordability Infrastructure District program Thursday under HB 2999. The AFA is now accepting petitions. A qualifying district can issue tax-exempt financing for roads, water, sewer, utilities and other public infrastructure associated with development, spreading infrastructure costs for as long as 30 years. Well, I know what I’m doing this weekend: making an infrastructure petition!

•BIGGS COMES OUT BIG FOR WATER–Arizona Republican legislative leaders came out Thursday behind Rep. Andy Biggs’ new Colorado River Basin Water Security and Infrastructure Act. The proposal would authorize roughly $19 billion: a $5 billion basin water-augmentation program, $1 billion to restore, modernize, and operate the Yuma Desalting Plant, $1 billion for Mexican seawater desalination and $12 billion for federal basin infrastructure. Surely no Democrats will find objection to this plan, right? RIGHT?

•SCOTTSDALE WATER SWAP–Speaking of water, Scottsdale has a notion: introduce advanced-purified wastewater into the Central Arizona Project system and receive Colorado River water in exchange; downstream users could therefore encounter Scottsdale’s purified supply, and Scottsdale has offered to help with additional testing/monitoring costs. I only drink pure Scottsdale water, distilled from the sweat (at best) of peasants!

•BOARD TO DEATH–Speaking of Scottsdale, only one candidate out of three showed up to a virtual election forum Tuesday, leaving parents annoyed. Jennifer Johnson attended the Chamber forum while Amy Carney and Jeanne Beasley pulled out, saying they had understood attendance was only for Chamber members. They objected after Johnson promoted registration publicly. The Scottsdale Parent Council now says it is inviting all three candidates to another forum under the same rules, specifically so parents can hear them together. Put your camera on mute.