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STEVE: COMING UP NEXT ON "ARIZONA HORIZON," IT'S THE JOURNALISTS' ROUNDTABLE.

WE'LL LOOK AT THE WEEK'S TOP STORIES INCLUDING THE STATE BUDGET DISAGREEMENT BETWEEN HOUSE AND SENATE REPUBLICANS.

THAT STORY AND MORE COMING UP ON "ARIZONA HORIZON."

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STEVE: GOOD EVENING, AND WELCOME TO "ARIZONA HORIZON."

I'M STEVE GOLDSTEIN FILLING IN FOR TED SIMONS.

IT'S FRIDAY, AND TIME FOR THE JOURNALISTS' ROUNDTABLE.

JOINING US, HOWIE FISCHER OF CAPITOL MEDIA SERVICES, WAYNE SCHUTSKY OF KJZZ AND JEREMY DUDA OF AXIOS PHOENIX, JEREMY'S WIFE IS AN EMPLOYEE OF ARIZONA PBS.

>>> AS WE SIT HERE FRIDAY AFTERNOON, ANY PROGRESS ON THE HOUSE SIDE, GOVERNOR HOBBS CALLED IT A DEAL.

>> DEFINE PROGRESS.

REPUBLICANS THIS AFTERNOON, WERE DOING THE PRELIMINARY APPROVAL OF THE BUDGET.

THE DEMOCRATS, MOST OF THEM DIDN'T BOTHER SHOWING UP IN THE CHAMBERS, THEY SAID, A, YOU HAVEN'T CARED TO ENGAGE US, AND, B, WE DON'T THINK IT'S THE FINAL BUDGET ANYWAY, SO WHY PARTICIPATE IN THIS?

YES, THEY PROBABLY WON'T HAVE THE FINAL VOTES UNTIL MONDAY.

GOP LAWMAKERS DECIDE IT'S A GOOD TIME FOR VACATION.

WE'RE SUPPOSED TO SEE THE SENATE VERSION OF THE BILL MONDAY.

THE SENATE VERSION IS BEING BILLED WITH NOT ONLY THE SENATE REPUBLICANS, SENATE MINORITY DEMOCRATS AND THE GOVERNOR.

THEY'LL PUT OUT THEIRS, AT SOME POINT SOMEBODY HAS TO SAY, WHO GETS TO HEAR WHAT VERSION?

DO WE AMEND ONE OF THE VERSIONS OR WHATEVER?

THE KEY IS COMING UP WITH REPUBLICAN VOTES, YOU NEED A MAJORITY OF THE MAJORITY OF REPUBLICANS TO GET CLEARANCE, AND FILLING IN SUFFICIENT DEMOCRATIC VOTES TO REPUBLICANS WHO DON'T LIKE IT.

STEVE: JEREMY, WHAT'S THE BIGGEST DIFFERENCE BETWEEN WHAT THE SENATE IS NEGOTIATING WITH GOVERNOR HOBBS AND WHAT THE HOUSE IS PUTTING OUT?

>> THE BIGGEST STICKING POINT IS WHAT MATT GRESS CALLED THE 90-90-90 VOTE.

THEY GAVE EVERYBODY THE POT OF MONEY, THE SENATE REPUBLICANS WANT TO DO SOMETHING SIMILAR, A LITTLE OVER $5 MILLION AND SAID WE'LL GIVE THE SAME AMOUNT TO THE GOVERNOR'S OFFICE, THE SAME AMOUNT TO THE HOUSE.

THE HOUSE HAS NOT BEEN RECEPTIVE TO THAT.

THEY WANT BIGGER TICKET PROJECTS.

THEY DON'T LIKE THE PER-PERSON ALLOCATION THE WAY THEY DID A COUPLE YEARS AGO.

DOES NOT SEEM LIKE INSURMOUNTABLE OBSTACLE BUT HAS BEEN A MAJOR STICKING POINT FOR THE LAST FEW WEEKS, PROBABLY LONGER THAN THAT, AND WON'T KNOW ALL THE DIFFERENCES BETWEEN THE TWO BUDGET PLANS UNTIL MONDAY, BUT THAT HAS BEEN THE THING THAT KEEPS COMING UP OVER AND OVER AGAIN.

WE HEAR HOW THEY'VE NOT BEEN ON THE SAME PAGE, NOT NEGOTIATING TOGETHER WITH THE GOVERNOR.

MEETING SEPARATELY WITH THE GOVERNOR'S OFFICE WHICH IS PRETTY BIZARRE.

THE SENATE SEEMS LIKE JOHN KAVANAGH, THE SENATE APPROPRIATIONS CHAIR TOLD ME, WE'LL BE 100% BY MONDAY AND THEY'LL PASS THAT AND SEE WHAT THE HOUSE DOES WITH IT.

STEVE: THE HOUSE IS GETTING IN THE WAY OF THE PROGRESS?

>> I DON'T KNOW IF THEY'RE GETTING IN THE WAY OF IT.

THE SENATE AND THE GOVERNOR ARE MOVING ALONG.

AS HOWIE MENTIONED, ONCE IT BECOMES MONDAY AND WE'VE SEEN BOTH SETS OF BILLS INTRODUCED, IT CAN GET STICKY WHO'S HEARING WHAT, AND ULTIMATELY IF THE SENATE VERSION DOES MOVE THROUGH THE SENATE, THEY HAVE TO CONVINCE THE HOUSE TO TAKE UP THAT VERSION.

THAT'S WHERE THINGS COME INTO CONFLICT AND WE'LL SEE WHEELING AND DEALING AND NEGOTIATING.

>> WHAT MAY HAVE TO HAPPEN, IS TAKE THE HOUSE PLAN AND PUT IT UP IN THE SENATE AND SAY, SEE, YOU DON'T HAVE THE VOTES HERE, AND THEN CAN YOU TELL THE HOUSE REPUBLICANS, NO, THIS ISN'T GOING TO WORK, LET'S START OVER.

AGAIN, IT'S A QUESTION WHO BELIEVES WHAT THEY CAN GET THROUGH?

I FORESEE THE SENATE SAYING, SURE, WE'LL GIVE THIS A TRY.

WHAT DO YOU THINK IS GOING TO HAPPEN.

STEVE: ONE QUESTION ABOUT THE MAJORITY OF THE MAJORITY.

THAT PHRASE STICKS WITH ME.

WE'VE SEEN CERTAIN LEADERS, WHETHER IT'S SPEAKER OF THE HOUSE OR THE HOUSE MAJORITY LEADER OR THE SENATE PRESIDENT SAY NO, NO, NO, IF THE DEMOCRATIC GOVERNOR LIKES THIS, IF IT'S NOT THE MAJORITY OF THE MAJORITY, IT'S NOT GOING TO MOVE FORWARD.

IS THAT WARREN PETERSEN'S TACK AS WELL?

>> FOR EXAMPLE, YEARS AGO WE HAD MEDICAID EXPANSION PASSED AND THEY LITERALLY ROLLED THE SENATE PRESIDENT.

STEVE: THE NEXT GOVERNOR UMEAN?

>> THE NEXT GOVERNOR, MR. BIGGS.

HE'LL BE BACK, AND IT CAN HAPPEN.

BUT I THINK THERE'S BELIEF, IF YOU WANT TO HAVE YOUR PEOPLE LOYAL TO YOU, IF, IN FACT, YOU HAVE 33 HOUSE REPUBLICANS, YOU PROBABLY NEED 17 OF THEM TO SIGN ONTO THE PACKAGE, AND THEN YOU FILL THE REST OF IT IN WITH DEMOCRATS AND ALLOWS THE CONSERVATIVE MEMBERS, THE ALEXANDER COLADENS OF THE WORLD TO SAY I'M NOT FOR THIS BUT IT DOESN'T MATTER.

THEY ALL UNDERSTAND THAT.

I WOULD BE HARD PRESSED TO THINK YOU WOULD PASS A BUDGET WHERE YOU HAVE FEWER THAN 16 REPUBLICANS OR FEWER THAN, LET'S SAY 8 REPUBLICANS IN THE SENATE JUST GOING FOR IT.

>> YEAH, THE SENATE PRESIDENT, SPEAKER OF THE HOUSE, THESE FOLKS ARE DEPENDENT ON VOTES OF THE MAJORITY FOR THEIR POSITION, AND MAKE YOU REAL UNPOPULAR REAL QUICK, YOU GO AGAINST THE MAJORITY OF YOUR OWN CAUCUS.

AND THAT MAKES US A BALANCING ACT.

THE MAJORITY OF THE CAUCUS, A DEMOCRATIC GOVERNOR, WHO PRESUMABLY BRINGS ALONG MOST DEMOCRATIC LAWMAKERS, AND THE HOUSE BUDGET WORTH NOTING HAS A LOT OF STUFF, AND I THINK WE'RE GOING TO GET TO SOME OF THAT IS A MAJOR NON-STARTER WITH THE DEMOCRATIC GOVERNOR, AND SO THIS IS WHY YOU HAVE TO HAVE EVERYONE NEGOTIATING TOGETHER.

>> YEAH, WHEN WE'RE TALKING ABOUT GETTING THE MAJORITY OF THE MAJORITY, THE HOUSE PLAN WHICH IS FISCALLY CONSERVATIVE, YOU SEE LITTLE PROJECTS HERE AND THERE THAT STICK OUT AS A PROPOSAL FOR ONE LAWMAKER OR ANOTHER, IS THIS MEANT TO GET A REPUBLICAN HOUSE MEMBER IN LINE, AND MAKE SURE THEY VOTE ON THIS?

SO I WOULD IMAGINE AS HOWIE SAID, WE'RE GOING TO SEE A REPUBLICAN MAJORITY ON WHATEVER WE END UP SEEING.

>> ANOTHER PIECE WE'VE SEEN IN THE HOUSE PLAN THAT WE'VE SEEN, THERE ARE THINGS THAT THE GOVERNOR VETOED EARLIER THIS YEAR.

DIFFERENT AND MORE FREQUENT REVERIFICATIONS, FOR FOOD STAMPS.

SO I FIGURE, OKAY, WE'LL PUT IT IN THE PACKAGE, AND WILL YOU SWALLOW HARD, OR ARE YOU GOING TO SAY WE DON'T WANT THIS.

OBVIOUSLY THERE HAVE TO BE SOME THINGS THEY WANT TO SEND BACK TO HER.

SENATOR MARK FINCHEM IS HAVING A FIGHT OVER FAMILY COURT JUDGES THAT ARE GOING AHEAD AND TELLING FAMILIES YOU HAVE TO HAVE PSYCHOLOGISTS.

THERE'S A PROVISION, WE'RE GOING TO FREEZE THE FAMILY COURT JUDGES, THAT MAKES THE FINAL VERSION.

EVERYBODY HAS GOT SOMETHING IN THERE.

THERE ARE BIG HIGHWAYS, WIDEN I-10 FROM CITRUS TO STATE ROUTE 85.

THREE LANES EACH WAY.

BECAUSE THANG THERE WILL BE DEVELOPMENT OUT THERE.

WE'RE GOING TO FIX THIS INTERSECTION IN PARADISE VALLEY OR THIS INTERSECTION UP IN PRESCOTT VALLEY, AND SO THERE'S A LITTLE PORK EVEN IN THAT.

>> WHICH INCIDENTALLY IS WHY YOU DO THE PERPERSON ALLOCATIONS A FEW YEARS AGO, EVERYONE HAS THEIR DISTRICT AND THEIR RODEO, YOU DO IT ONE WAY OR THE OTHER.

MAYBE IT ENDS UP ALL THE SAME IN EITHER VERSION.

STEVE: BRIEFLY, LET ME ASK YOU THIS, THIS IS A PHRASE VIEWERS WANT TO KNOW ABOUT, IS THIS A FISCALLY RESPONSIBLE BUDGET?

>> FISCAL RESPONSIBILITY IS IN THE EYE OF THE BEHOLDER.

I WOULD IMAGINE EVERYONE HAS THESE FEDERAL CUTS ON THE MIND, DEMOCRATS AREN'T PSYCHED ABOUT IT, BUT I THINK THE GOVERNOR HAS THAT ON THE MIND, SO I DON'T THINK THEY'RE GOING TO GO OUT OF THEIR WAY TO OVERSPEND LIKE A FEW YEARS AGO.

LOOK AT THIS HUGE POT OF MONEY, SPEND IT DOWN TO $11 MILLION LEFT IN THE BANK.

FISCAL RESPONSIBILITY?

SURE.

>> THEN YOU HAVE -- IS IT AN EMOTIONALLY RESPONSIBLE BUDGET?

IN OTHER WORDS, YOU CAN SAY, YEAH, WE CAN BALANCE THE BUDGET.

WE ALWAYS DO, WE HAVE TO.

THIS ISN'T LIKE CONGRESS.

BUT THEN AGAIN, IF WE ARE MAKING CUTS TO THE MEDICAID PROGRAM IN TERMS OF WORK REQUIREMENTS AND INCREASED ELIGIBILITY REQUIREMENTS AND OTHER THINGS, IS THAT RESPONSIBLE IF WE'RE KICKING MORE PEOPLE OFF OF MEDICAID?

YEAH.

WE'LL HAVE A BALANCED BUDGET.

I CAN GUARANTEE THAT.

WILL EVERYONE BE HAPPY?

I CAN GUARANTEE THEY WON'T.

>> THAT GOES BACK TO THINGS THAT ARE NON-STARTERS, I HAVE A HARD TIME SEEING KATIE HOBBS SIGN A BUDGET THAT KICKS FOLKS OFF MEDICAID.

SOUNDING ALARMS ABOUT CONGRESSIONAL CUTS, THE FEDERAL LEVEL.

I DON'T THINK SHE'S ABLE TO DO THAT AT THE STATE LEVEL.

STEVE: HOWIE, CLOSE US OUT WITH IN-STATE TUITION, MATT GRESS BROUGHT THIS UP AS WELL, HOW DOES IT RELATE TO VOTERS DECIDING THIS IN 2022?

>> IN 2022, PRIOR TO THAT WE HAD BALLOT MEASURES GOING BACK OVER A DECADE, IF YOU'RE NOT HERE LEGALLY, YOU ARE NOT ENTITLED TO INTUITION STATE BENEFITS.

2022, VOTE IS PASSED, PROP 208, IF YOU'RE A DREAMER, BEEN HERE SINCE A CHILD, SPENT A CERTAIN NUMBER OF YEARS IN HIGH SCHOOL HERE, WE GIVE YOU IN-STATE TUITION.

THERE IS VERBIAGE IN THE BUDGET PACKAGE, BUDGET DOESN'T JUST MEAN NUMBERS, IT MEANS POLICY, THAT SAYS IF YOU'RE NOT HERE LEGALLY, YOU'RE NOT ENTITLED TO BENEFITS.

THEY'RE NOT REPEALING PROP 308, AND THEY SAY, WELL, BUT THIS IS A DIFFERENT GROUP.

HOW IS IT A DIFFERENT GROUP?

THERE'S THIS CASE OUT OF TEXAS THAT SAID, TEXAS HAD TUITION FOR DREAMERS.

IT'S MORE PERFORMANCE FOR THE RED MEAT SAYING WE'RE DOING WHAT TRUMP WANTS TO DO, MAKING SURE PEOPLE WHO ARE NOT HERE LEGALLY, DON'T GET ANY BENEFITS.

STEVE: IS THE GOVERNOR GOING WITH IT?

>> THE COURTS MIGHT HAVE A HARD TIME SWALLOWING IT, AS HOWIE POINTED OUT, IT CONFLICTS WITH VOTER APPROVED BALLOT INITIATIVE.

STEVE: GOOD MEAT IN MARICOPA COUNTY YET AGAIN, THE NEW COUNTY RECORDER RELATIVELY NEW, JUSTIN HEAP, DECIDED HIS FIGHT WITH THEM HAS GONE TOO FAR, THE RESPONSIBILITIES WERE TAKEN AWAY FROM HIS OFFICE WHICH WE SAW, STEPHEN RICHER LOST THE PRIMARY LAST SUMMER.

JEREMY, WHAT IS THE LAWSUIT AT ITS CORE ABOUT?

>> IT'S AT ITS CORE ABOUT WHO HAS WHAT AUTHORITY OVER ELECTIONS IN MARICOPA COUNTY.

VERY SPECIFICALLY OVER THE ASPECTS AND RESPONSIBILITIES THAT WERE MOVED FROM THE RECORDER'S OFFICE TO THE BOARD OF SUPERVISORS IN DECEMBER, I THINK IT WAS BEFORE DECEMBER, BEFORE THE ELECTION, AFTER THE PRIMARY.

THEY KNEW THEY WERE GOING TO HAVE NEW COUNTY RECORDER.

THEY MADE CHANGES THAT STEPHEN RICHER AGREED TO ON HIS WAY OUT THE DOOR, TRANSFERRED I.T.

SERVICES FROM THE RECORD TORT BOARD OF SUPERVISORS.

THAT'S THE BIG ONE, THE FOCUS OF THE LAWSUIT, JUSTIN HEAP NEEDED THAT TO DO THINGS IN TERMS OF ELECTION INTEGRITY.

HE CAMPAIGNED ON BIG IDEAS, BIG PROMISES WHAT HE WAS GOING TO DO FOR ELECTIONS IN MARICOPA COUNTY, AND EVEN IF THAT AGREEMENT STAYED IN PLACE, THE PREVIOUS ONE, PROBABLY LACKS AUTHORITY.

RESTRICTS HIM MORE THAN HE WANTS TO, MORE POWER AND WANTS TO GO TO COURT TO FORCE THE SUPERVISORS, THEY'VE BEEN ABLE TO AGREE, COME INTO AGREEMENT AND NOW HE WANTS TO -- >> TYING UP ALL THIS IS DOES HE NEED PERMISSION FROM THE BOARD OF SUPERVISORS AND/OR COUNTY ATTORNEY TO HIRE HIS OWN LAWYER.

HE IS SUING THE TREASURER, WHICH YOU LOOK AT ON THE SURFACE, IT WOULD SUGGEST -- SORRY THE RECORDER, AND LOOK AT THE SURFACE SUGGESTS HE NEEDS PERMISSION.

HE HAS AMERICA FIRST LEGAL.

A RIGHT-WING FIRM DEFENDING HIM AND BRINGING THIS CASE, AND SO IF THEY'RE NOT CHARGING HIM, DOES HE NEED THAT PERMISSION?

HE HAD A DIFFERENT ATTORNEY, YOU KNOW, FORMER SUPREME COURT JUSTICE GOULD, DOING A LOT OF WORK FOR REPUBLICANS.

NOW IT'S A WHOLE DIFFERENT GROUP.

THIS COULD GET THROWN OUT ON TECHNICAL ROUNDS.

>> ACTUALLY, THE COUNTY ATTORNEY SENT THE LETTER TO AMERICA FIRST LEGAL, SAYING YOU DID NEED MY PERMISSION.

IT SAID UNDER THE IMPRESSION YOU ARE RETAINED AS THE RECORDER'S ATTORNEY, YOU HAVE NOT.

THEY POINT TO A LAW THAT SPELLS OUT COUNTY ATTORNEY'S DUTIES THAT DOESN'T DEAL WITH THE ISSUE BUT LANGUAGE THEY COULD INTERPRET THAT WAY AND APPELLATE COURT SENTIMENT.

THE CHALLENGE TO THE CHALLENGE COULD BE CHALLENGED.

IT'S ALL GETTING TIED UP.

GOING BACK TO THE ORIGINAL ISSUE, IT'S THE I.T.

SERVICES, OTHER RESPONSIBILITIES THAT WERE REMOVED UNDER THIS AGREEMENT BECAUSE UNDER STATE LAW, A LOT OF THE RESPONSIBILITIES CAN BE THE SUPERVISORS, THE RECORDER, AND HEAP SEEMS TO BE UNDER THE IMPRESSION THEY TOOK RESPONSIBILITIES AWAY THAT ARE HIS, BUT A LOT OF THEM COULD BE ONCE EITHER WAY.

>> WE SAW THE OLD BOARD OF SUPERVISORS MAKE CHANGES TO ADRIAN FONTES, BUT HE WENT ALONG AND DEALT WITH FOLKS LIKE BILL GATES, TEAM UP WITH THIS, ANOTHER PERSON WAS HIRED TO DO THE RECORDING DUTIES IN ESSENCE.

>> THIS IS DIFFERENT COUNTY-BY-COUNTY, AND THE LAWS ARE AT TIMES A BIT VAGUE, IF NOT ENTIRELY CLEAR.

WHAT HAS TO BE ENTIRELY CLEAR, WITH ONE SIDE OR THE OTHER, STEPHEN RICHER USED TO TALK ABOUT THIS, AND AN ISSUE FOR HIM.

I THINK WE HAVE SOME COUNTIES WHERE THE BOARD OF SUPERVISORS HAVE TAKEN A LOT MORE AWAY FROM THE RECORDER.

STEVE: STICKING UP FOR HEAP.

>> BECAUSE OF THE AMBIGUITY OF THE LAWS.

THE COURT IS UNSETTLED, A LOT OF THE STATUTES SAY THE RECORDER OR OTHER OFFICER IN CHARGE OF ELECTIONS, HE WANTS THAT TO BE THE DEFAULT TO THE RECORDER, I BELIEVE, AND SO UNLESS THERE IS AGREEMENT BETWEEN THE RECORDER -- >> WHICH, OF COURSE, ALWAYS LEADS WHOEVER LOSES SAYS IT WAS AN ACTIVIST JUDGE.

THE FACT IS IF YOU CRACK BETTER LAWS AND THIS IS HARDLY A MODEL OF CLARITY IN TITLE 16 IN TERMS OF THE ELECTION CODE, YOU WOULDN'T HAVE THESE PROBLEMS.

>> ONE OF THE BIG PROBLEMS IS EARLY BALLOT PROCESSING THAT HAD BEEN SWITCHED UNDER THE NEW RECORDER AND SWITCHED BACK TO THE BOARD OF SUPERVISORS, THEY OPEN UP THE EARLY BALLOTS, THE SUPERVISORS OVERSEE THE FUNCTION, IF YOU LOOK AT STATE LAW, THE SUPERVISORS ARE ALLOWED TO CONTROL THAT FUNCTION.

IT'S THE BOARD OF SUPERVISORS OR THE HEAD OF THIS PUBLIC BODY.

HEAP'S ARGUING THAT SHOULD BE HIS BECAUSE THE RECORDER HANDLES OTHER EARLY VOTING FUNCTIONS BUT STATE LAW DOESN'T SEEM TO -- >> UNDERSTAND UNDERNEATH ALL THIS, JUSTIN HEAP IS ONE OF THE PEOPLE WHO IS PART OF THE CONSPIRACY THEORIES, AND HE'S CONVINCED THE BOARD OF SUPERVISORS, FOUR OUT OF FIVE BEING REPUBLICANS, BEING PART OF THE CONSPIRACY THEORY, HAVE BEEN HIDING THINGS -- THIS GOES BACK TO DID KARI LAKE REALLY WIN THE GOVERNOR'S RACE?

STUFF LIKE THAT.

I THINK HE BELIEVES THAT SOMEHOW HE'S GOING TO SHOW HOW WE'RE DOING IT.

STEVE: MY FINAL POINT FOR YOU TWO, JEREMY, TO YOU FIRST.

I'M LOOKING AT MAKEUP, THE DYNAMIC NOW.

BILL GATES IS GONE.

JACK SELLERS IS GONE.

THEY HAVE BEEN -- TOM GALVIN IS CONSIDERED A MODERATE.

DEBBIE LESKO, MARK STEWART, VERY MUCH DONALD TRUMP SUPPORTERS.

IT FEELS LIKE THEY SHOULD BE ON THE SAME POLITICAL PAGE AS HEAP.

CLEARLY SOMETHING ELSE.

>> DOES NOT SEEM HEAP WORKS WELL WITH FELLOW REPUBLICANS.

LESKO, I THOUGHT HE COULD HAVE MADE AN ALLY OF HIS, I THINK WE'VE SEEN IN THE LAST COUPLE OF DAYS, VERY MUCH NOT THE CASE.

DOES NOT SEEM ANY HAPPIER WITH JUSTIN HEAP THAN TOM GALVIN OR KATE BROPHY McGEE.

>> THEY AGREED ON 98% OF ALL THIS, AND ALL OF A SUDDEN, HE CAME BACK, I HAVE 170 CHANGES I'D LIKE TO BE MADE HERE.

THE BOARD SAYS, OKAY, I'M DONE WITH YOU.

STEVE: LET'S GO TO CORP. COM.

A COUPLE OF CONSERVATIVE CORPORATION COMMISSIONERS GOT PRIMARIED BY STATE LAWMAKERS, IS THIS A CASE OF MR. HOFFMAN DECIDING HE'S GOING TO PICK AND CHOOSE LIKE YEE AGAINST HORNE?

>> HE'S BECOME TRUMP'S SURROGATE, IF YOU WILL, HERE.

HE SAYS IF YOU ARE NOT PROPERLY LOYAL TO PRESIDENT TRUMP, THEN WE WANT TO GET RID OF YOU.

THE PURITY OF THE PARTY, IF YOU WILL.

A LOT OF IT HAS TO DO WITH TRUMP SAYING WE LIKE CLEAN COAL.

WE WANT ENERGY INDEPENDENCE, THAT IS DEPENDENT ON COAL.

WE HAVE THE POWER PLANT NEAR JOSEPH CITY, THAT APS HAD BEEN LIMPING ALONG FOR A LONG TIME WITH THE EPA SAYING, LOOK, WE'LL LET YOU KEEP IT OPEN.

YOU NEED TO CLOSE IT BECAUSE IT CANNOT BE RETROFIT, AND SO THE CORPORATION COMMISSIONERS LOOKED AND SAID IT WILL COST $1.9 BILLION TO GET THIS BACK ONLINE.

APS SAID THAT DOESN'T MAKE SENSE, THE COMMISSIONERS SAID IT DOESN'T MAKE SENSE, BUT SOMEHOW TO THE TWO CHALLENGERS, THE HOFFMAN PICK CHALLENGERS, THEY SHOULD HAVE BEEN DOING IT ALL ALONG, AND THAT SHOWS THEY'RE NOT LOYAL TRUMPERS.

STEVE: A COLLEAGUE WROTE IT ABOUT A TEAM MAKING OF MR. HOFFMAN, RIGHT?

>> DEEP DIVE, KIMBERLY YEE RUNNING FOR SUPERINTENDENT, HE'S DONE THIS WITH A LOT OF POSITIONS, HE LEADS THE FREEDOM CAUCUS AT THE LEGISLATURE.

HE'S BEEN INVOLVED AT THE LEGISLATIVE LEVEL BUT TAKING ANOTHER STEP UP TO WIN THE STATEWIDE RACES WITH CANDIDATES THAT FIT INTO HIS POLITICAL MOLD WHICH IS FAR RIGHT, THIS MAGA, TRUMP'S OWN IMAGE TYPE OF THING.

SOMETIMES HAVE YOU ISSUES THEY LIKE TO POINT TO, LIKE THE POWER PLANT.

SOMETIMES IT SEEMS LIKE THEY FIND THE ISSUE AFTER THEY FIND THE PERSON THEY WANT TO PRIMARY.

THEY HAVE ISSUES WHERE THE CURRENT CORPORATION COMMISSION IS DEFERENTIAL TO UTILITIES THAT WANT TO ADOPT THE CLIMATE FRIENDLY POLICIES AND THINGS LIKE THAT, BUT VERY LITTLE BASIS TO THE CONCERNS, THE INCUMBENTS WOULD SAY, BUT THEY STILL POINT TO THEM AS REASONS TO CHALLENGE THEM.

>> OR RATE MAKING, THERE'S A CHANGE IN TERMS OF ALLOWING UTILITIES TO COME BACK FOR A RATE HIKE.

THAT'S ANOTHER THING REPRESENTATIVE HEAP TALKED ABOUT.

IF YOU TALK TO NICK MYERS, INCUMBENTS BEING CHALLENGED, THIS ISN'T ABOUT POLICY, THE FREEDOM CAUCUS, JAKE HOFFMAN WANTS PEOPLE HE CAN CONTROL.

PEOPLE WHO ARE PART OF HIS CLIQUE, CONTROL THEM IN A WAY YOU CAN'T CONTROL OTHER FOLKS.

THEY DO NOT VIEW THIS -- THEY VIEW THE POLICY IN THE WAY WAYNE MENTIONED, COMING UP WITH EXCUSES BECAUSE THEY NEED A REASON TO SAY THIS IS WHY WE'RE CHALLENGING THE INCUMBENTS.

>> BUZZ WORDS.

THE GREEN NEW DEAL.

IT'S DEI.

ESG.

ENVIRONMENTAL STUFF.

THE RENEWABLE ENERGY STANDARD, PUT IN GOING BACK TO WHEN KRIS MAYES WAS ON THE COMMISSION, THEY VOTED TO REPEAL IT.

IT'S A MOOT POINT BECAUSE MOST OF THE UTILITIES CAME UP WITH THEIR OWN STANDARDS BECAUSE THEY RECOGNIZE THAT, WHILE BASE LOAD IS IMPORTANT, COAL IS BASE LOAD, NATURAL GAS CAN BE BASE OR PEAK LOAD.

NUCLEAR BASE, TALKING ABOUT SMALL NUCLEAR PLANTS.

THEY NEED RESOURCES TO DO IT.

A LOT OF THAT INVOLVES WIND AND A LOT INVOLVES SOLAR.

STEVE: A LOT OF HEAP -- WE'VE BEEN TALKING TWO HEAPS ALREADY, FAIR TO SAY THE DEMOCRATIC PARTY IS IN A HEAP OF TROUBLE?

>> OOH.

STEVE: WHAT DOES THE CURRENT STATE, ROBERT BRANSCOMB, ET CETERA?

>> THE BRAND-NEW CHAIRMAN, A BIT OF A SURPRISE, HE TOOK OUT THE INCUMBENT CHAIRWOMAN, WHO HAD THE BACKING OF EVERY ELECTED STATEWIDE DEMOCRAT.

THERE WAS DESIRE FOR CHANGE IN THE PARTY BECAUSE OF FISCAL ISSUES, CONCERNS ABOUT SELF-DEALING WITH PARTY FUNDS, BUT IT HAS NOT GONE WELL SINCE THAT TIME.

BRANSCOMB HAS RUN INTO A LOT OF OPPOSITION FROM FOLKS IN THE PARTY WHO SAY HE'S NOT UP TO THE JOB, INCLUDING FOLKS THAT VOTED FOR HIM INITIALLY.

THE PARTY IS AT RISK OF RUNNING OUT OF MONEY ACCORDING TO THE TREASURER, THEY STILL HAVE NOT APPROVED A BUDGET FOR THIS YEAR, AND NOW I BELIEVE MARY JO AT THE REPUBLIC REPORTED THAT HE SIGNED CHECKS, THOUGH THEY DON'T HAVE THE BUDGET.

ANOTHER ISSUE THE TREASURER FLAGGED.

SO THERE'S A LOT OF FOLKS SAYING, HEY, WE WANT A REDO.

THEY COLLECTED SIGNATURES, AND SO BRANSCOMB IS SUPPOSED TO BE CALLING A VOTE WITHIN THE NEXT 20 DAYS FOR A VOTE ON THE CHAIRMAN.

STEVE: BIG PICTURE, THIS MATTERS TO THOSE OF US WHO ARE POLITICAL JUNKIES AND THE CORE FOLKS OF THE PARTY.

IF THEY FIND A WAY TO RAISE MONEY.

IF RELATIONSHIPS ARE HEALED WITH SENATORS GALLEGO AND KELLY, FOR EXAMPLE, DOES ALL THIS GO AWAY?

COULD THIS HURT IN 2026?

>> IT DEPENDS, FAR ENOUGH OUT FROM THE ELECTION, IF EVERYTHING IS SETTLED AND CALMS DOWN, STATE DEMOCRATIC OR REPUBLICAN PARTIES, THEIR ROLES ARE LIMITED, MUCH MORE THAN THE AVERAGE PERSON MIGHT THINK.

YOU'RE DISTRIBUTING MONEY THAT'S COME IN FROM NATIONAL ORGANIZATIONS LIKE THE DNC OR RNC.

PEOPLE SEND OUT MAIL USING THE DISCOUNT THAT YOU GET AS A POLITICAL PARTY.

YOUR JOB IS NOT TO AGITATE AGAINST YOUR FELLOW ELECTED OFFICIALS THAT WE LEARN, I THINK IN THE PAST MORE OFTEN WITH THE REPUBLICAN PARTY OUT HERE.

JOHN McCAIN AND CHAIRMAN THAT HE WAS OFTEN AT ODDS WITH, AND HE GOT NATIONAL FOLKS TO DIRECT MONEY TO A COUNTY PARTY SO WE'RE NOT DEALING WITH YOU.

WE'RE GOING TO CUT YOU OUT ENTIRELY.

SOMETHING LIKE THAT COULD HAPPEN, IT COULD BE FINANCIALLY MORE COSTLY TO THE DEMOCRATS, AND IN THE END, YOU JUST DON'T WANT THIS DISTRACTION IF YOU ARE EITHER PARTY.

THE DEMOCRATS HAVE HIGH HOPES OF RETAINING STATEWIDE OFFICES THE NEXT YEAR, TAKING CONTROL OF THE LEGISLATURE, AND THE MORE PEOPLE FOCUS ON THE INFIGHTING, THEORETICALLY, THAT MAKES THINGS MORE DIFFICULT.

>> THAT'S THE POINT, WHEN KELLI WARD HEADED THE REPUBLICAN PARTY, FOLKS SAID WE'RE NOT GIVING HER ANY MONEY.

SHE'S CRAZY.

SO AS YOU POINTED OUT, THEY GAVE IT TO COUNTY REPUBLICAN PARTIES.

FOUND A WAY AROUND IT.

IF THIS CONTINUES, AND IF BRANSCOMB BECOMES SOMEBODY NOBODY TRUSTS, THERE'S NOT GOING TO BE MONEY IN THE PARTY.

IT'S GOING TO FIND ITS WAY SOMEWHERE ELSE.

MAY END UP THROUGH THE GOVERNOR WHO'S GOT $4.1 MILLION OF HER OWN SITTING THERE, AND SHE'LL SAY I WILL BE THE TREASURER, THE GODMOTHER OF THE PARTY.

STEVE: FINAL IN THIS ONE?

>> DEMOCRATS NEED ALL THE HEADWIND GOING IN THEIR DIRECTION TO WIN ARIZONA.

THERE WAS TALK OF ARIZONA BEING A PURPLE STATE WHEN THEY WON 2022.

VOTER REGISTRATION BENEFITTED FROM ALL THAT DISCORD IN THE REPUBLICAN PARTY.

NOW THAT IT'S IN THEIR PARTY, THAT DOES NOT GOING TO LAST.

STEVE: GOVERNOR HOBBS AND CHINA, VETOED A BILL AND COME BACK STRONG WITH HER OWN PROPOSAL WHICH IS NOT GOING TO BECOME INVESTIGATION IN.

>> THIS IS FUNNY.

THE ORIGINAL BILL STARTED OUT IN THE SENATE AS SAYING IF YOU ARE A CITIZEN OF CERTAIN COUNTRIES THAT ARE ENEMIES, CHINA, NORTH KOREA, CUBA, RUSSIA, AND IF YOU HAD CERTAIN LEVEL OF OWNERSHIP, YOU COULDN'T OWN PROPERTY HERE.

WENT OVER TO THE HOUSE, AND FOR A VARIETY OF REASONS, SOME OF WHICH I'M NOT SURE I UNDERSTAND, REPRESENTATIVE COLADEN SAID WE'RE GOING TO MAKE IT SIMPLE.

THE PEOPLE'S REPUBLIC OF CHINA CANNOT OWN PROPERTY IN THE UNITED STATES.

I'M NOT SURE THE PRC IS GOING OUT AND CHECKING IN WITH REAL ESTATE AGENTS AND SUCH.

THAT WENT TO THE GOVERNOR.

THE GOVERNOR SAID IT DOESN'T SOLVE ANYTHING, WHICH IS DREW, AND ALSO DIDN'T HURT ANYTHING BECAUSE IN FACT, THAT EVEN THOUGH THE PRC COULDN'T BUY, PRESIDENT XI COULD BUY PROPERTY NEXT DOOR TO EVERYONE ELSE, AND SO IT WAS A FIGHT YOU DIDN'T NEED TO PICK.

THE REPUBLICANS CAME BACK AND SAID SHE DOESN'T CARE THE CHINESE ARE COMING AND TAKING OVER, AND SHE PROPOSED WHAT SHE CONSIDERS A MORE COMPREHENSIVE ONE, WHICH IS PERFORMANCE, THAT'S NOT GOING ANYWHERE.

STEVE: THIS OVERRIDE THAT SENATE PRESIDENT PETERSEN WAS GOING TO TRY, ANY ACTION ON THAT?

>> NOT GOING TO HAPPEN.

THE LEGISLATURE OVERRIDE A VETO SINCE 1981 OR SO?

I CAN'T SEE A SINGLE DEMOCRAT GOING ALONG WITH THIS, AND YOU NEED TWO-THIRDS VOTE, BUT ALSO GOVERNOR HOBBS' PLAN, THAT'S NOT GOING TO GO ANYWHERE EITHER.

WE'RE POSSIBLY IN THE LAST WEEK OF THE LEGISLATIVE SESSION COMING UP, IF THEY PASS A BUDGET, EVERYONE IS GOING TO GO HOME AFTER THAT.

NOT A LOT OF TIME TO VET MORE BILLS.

NOT GOING TO TAKE THE GOVERNOR'S BILL UP.

IF SHE WANTED TO TAKE -- FEELS A STRONGER PLAN IN PLACE, IT WOULD HAVE BEHOOVED HER WITH AN ELECTION COMING UP NEXT YEAR, WHY DID YOU VETO THE CHINA BILL.

WE WANT TO SEE CHANGES TO THIS.

STEVE: 20 SECONDS?

>> THE VETO ENDED UP GETTING NATIONAL MEDIA COVERAGE, ON REPUBLICAN FRIENDLY NETWORK, THE REPUBLICAN LEADERSHIP SAW THAT, THEY SAID THE GOVERNOR IS MAKING HEY.

STEVE: THIS IS NOT GOING ANYWHERE?

>> THEY SEND THINGS TO THE GOVERNOR, KNOWING SHE'S GOING TO VETO IT SO THEY CAN SAY LOOK, IN 2026, THE COMMIES ARE COMING AND SHE'S NOT PROTECTING US.

STEVE: GENTLEMEN, GOOD TO HAVE YOU HERE, GOOD TO SEE THE DEAN OF THE CAPITOL MEDIA CORPS.

>> I'M WEARING MY BUDGET TIE.

STEVE: THAT'S IT FOR "ARIZONA HORIZON."

I'M STEVE GOLDSTEIN FOR TED SIMONS.

THANK YOU SO MUCH FOR WATCHING.

SEE YOU NEXT TIME.