SE Valley Times

Governor Katie Hobbs has unveiled her executive budget for Fiscal Year 2026, presenting a detailed outline of her administration's priorities as initially mentioned in her State of the State address. The proposed budget arrives amidst a split government scenario, with a Republican-controlled State Legislature and a Democratic Governor. It serves primarily as an expression of the Governor’s preferences since it is ultimately the Arizona Legislature that appropriates funds through various budget bills.

Significant allocations in the proposed Executive Budget include investments in child care, housing, education, and water resources. For child care, $100 million is earmarked for statewide support. Additionally, $3 million from the General Fund is designated to develop partnerships aimed at reducing child care costs for working-class families. There are also provisions for youth programs and increasing child-care availability through coaching and tax incentives.

In housing, $13 million is allocated for mortgage assistance. The budget also proposes one-time funding for adult education and K-12 schools, aiming to enhance workforce development programs that help Arizonans obtain diplomas and industry-recognized credentials.

The Arizona Commerce Authority would receive $10 million for the Arizona Competes Fund along with $5 million dedicated to the Major Events Fund. Meanwhile, funding levels for the Arizona Office of Tourism remain nearly unchanged from this year.

Universities could see a $20 million increase in funding under this proposal. In terms of water resources management, notable allocations include a $9.5 million deposit into the Water Quality Fee Fund to ensure clean water supply safety and ongoing data monitoring through the CORS network. A long-term commitment involves investing $33 million annually over three fiscal years into initiatives aimed at securing Arizona's future water supplies.

The executive budget sets forth these priorities but will require legislative approval before any allocations become part of Arizona's official state budget.