Moving AZ Forward

Governor Hobbs issued her state budget proposal Friday. While there is lots of work to do, the priorities are clear. This is what we voted for!

  • The $17 billion proposal includes about $1.3 billion of new spending.
  • One of the most significant chunks of spending is a $250 million deposit into the state’s rainy day fund, bringing it to a record $1.6 billion. 
  • Education would eat up another $275 million of new spending, including $200 million in additional base support for all schools, almost $11 million in additional assistance and $20 million for dual enrollment programs. 
  • School infrastructure would also see a massive boost of $350 million for one-time building renewal projects.
  • Higher education would see a roughly $170 million increase, including $80 million for scholarships for students and Dreamers, as well as $14 million for rural community colleges and $15 million to expand the Arizona Teachers Academy.
  • The budget would allocate an additional $150 million to the Housing Trust Fund for utility and rental assistance, repair grants for seniors and legal aid for families facing eviction.
  • The Arizona Health Cost Containment System and the Departments of Child Safety and Economic Services would see boosts to keep up with caseload growth.
  • State employees would see a pay increase from a $200 million allocation to the Department of Administration, as well as another $54 million for targeted pay raises.
  • Hobbs’ budget also contains about $250 million for infrastructure upgrades and other needs in the Department of Corrections.
  • The budget would repeal universal voucher legislation, creating a savings of $135 million next year. 
  • The proposal sets aside $90 million for tax cuts, including by cutting sales taxes on diapers and feminine hygiene products, as well as a new state child tax credit.

Source: Arizona Agenda 1/17/2023

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