A proposal for a new Arizona budget failed to pass the House Appropriations Committee Wednesday as two Republicans joined Democrats in voting it down. 

Republican Rep. Jake Hoffman voted against the plan saying the current $5 billion surplus shows passing a similar proposal would only lead to an inflated budget. 

Rep. Michelle Udall joined Hoffman, but said there are a lot of needs the state should  address, such as water and border security. 

Gov. Doug Ducey echoed those needs; he said he has no interest in signing a plan that keeps things the way they are. 

“We have a ... 5.2 billion surplus. And we have real needs right now, including our border, wildfires that are happening across the state, and the Arizona state water commission. So there are a lot of things that need to get done," Ducey said. 

Lawmakers are now looking for a middle ground without losing more votes before July 1st, after which state agencies would shut down.