As her polling numbers continue to sink and she struggles under the weight of governing, Governor Katie Hobbs took another hit this week when her chief budget adviser announced her exit.
On Wednesday, Sarah Brown, director of the Governor’s Office of Strategic Planning and Budgeting, advised that she would be leaving on February 12.
“Working for you has been a dream, but the time has come for me to give more of myself to other parts of my life,” she wrote in a resignation letter to the Governor, according to the Arizona Republic.
Brown has been serving as budget director since late 2022. According to the Arizona Republic, Brown and Hobbs had “worked together for three years, with Brown serving as Hobbs’ chief financial officer and human resources director when Hobbs was secretary of state.”
Brown’s resignation came just hours before news broke that $339 million had disappeared from Hobb’s proposed Arizona budget. While the state still has a surplus, the missing money has lawmakers asking questions.
“$339m disappeared from Arizona’s budget and I have questions for Katie Hobbs!” tweeted Arizona State Representative Alex Kolodin.
$339m disappeared from Arizona’s budget and I have questions for Katie Hobbs! pic.twitter.com/1xTJHUrwcA
— Rep. Alexander Kolodin (@realAlexKolodin) January 30, 2025
Earlier this month, Hobbs released her FY2026 Executive Budget, raising concerns about its failure to invest in critical efforts to secure the border, support working families, and help Arizonans thrive.
Speaker of the Arizona House of Representatives Steve Montenegro called the proposed budget burdensome when it comes to taxpayers.
The budget isn’t the Governor’s only problem, and it certainly isn’t her first.
In November 2024, Hobbs’ Office of Tourism director, Lisa Urias, was forced to resign from her position following lawmakers’ requests to investigate a contract apparently benefiting those close to her company.
Under Urias, the state spent $700,000 in federal pandemic relief funding on a redesign of the state logo. Part of those funds, approximately $28,000, went to Heart & Soul Marketing, who hired the brother of the CEO of Urias’ company, Urias Communications.
The CEO of Urias’ firm is Jason Coochwytewa, a member of the Grand Canyon Conservancy board. His brother, Kevin Coochwytewa, is the designer for the state logo under Heart & Soul Marketing and has previously had Urias Communications as a customer.
The Office of Tourism communications director, Josh Coddington, revealed in remarks to the media that it was Urias who advocated for Coochwytewa to be hired by Heart & Soul Marketing for the state’s rebrand project.
Urias issued a statement denying that she or her company benefited financially from contracts awarded by her office.
The continuing struggles and controversies could help to encouarge a primary challenge for Hobbs. Arizona Secretary of State Adrian Fontes has been rumored to being interested in running for Governor in 2026 against Hobbs.
According to an Emerson College Polling survey of swing states in 2024, Hobbs garnered 38% approval, compared with 42% disapproval from respondents (with 20% neutral), the lowest ranking of any incumbent Governor in the country.
