Arizona Governor Katie Hobbs gives her third State of the State address on Monday, Jan. 13, 2024, in Phoenix, Ariz.
Governor Katie Hobbs delivered her third State of the State address to the Arizona Legislature today.
Ahead of her speech, Republican State Senate President Warren Petersen outlined Republican lawmakers’ priorities for this year’s legislative session.
“Our agenda for this session for 2025 can be summed up in two words: common sense,” Petersen said.
On K-12 education, Petersen proposed raising Arizona teachers’ wages above the national average and expressed support for President-elect Donald Trump’s law enforcement initiatives to secure the border.
Addressing housing and water issues, Petersen said that housing in Arizona has become unaffordable for the first time in state history.
He criticized Hobbs’ 2023 moratorium on homebuilding in the Phoenix area due to groundwater depletion.
“We use the same amount of water today with 7.5 million people that we used with 1.5 million people,” Petersen said, highlighting the “Agriculture to Urban” Initiative, which aims to repurpose agricultural land for developments that use less water.
Petersen also criticized Arizona's electoral vote delivery process, calling it “dead last.”
“It’s time to follow the Florida model and deliver election results, night of,” Petersen said, urging counties to release cast-vote records to enhance transparency.
He concluded by emphasizing limited government, lower taxes and reduced regulations, noting that these goals would be addressed through the “newly created government efficiency committees.”
“There is an incessant cry to increase the scope and size of government, that will not happen with this legislature,” Petersen said. “This is what you can expect from us, fiscal responsibility and common sense.”
Following Petersen, Governor Katie Hobbs outlined her Arizona Promise in her address.
Housing
Hobbs proposed tackling the rising cost of living and housing affordability, criticizing out-of-state buyers for driving up housing prices.
She called for extending the state low-income housing tax credit and doubling the number of first-time homebuyers receiving assistance through the Arizona is Home Mortgage Assistance Program.
Hobbs also urged lawmakers to commit to ending veteran homelessness within the next decade.
“My executive budget will include a down payment to jumpstart this effort, with the Homes for Heroes Fund,” Hobbs said.
Childcare
To address high childcare costs, Hobbs introduced the Working Families Child Care Act, which aims to lower costs by two-thirds, noting that Arizona families are paying more than in-state tuition for Arizona’s public universities.
“An Arizona family pays nearly $15,000 per year for child care,” Hobbs said. “More than 75,000 Arizona children, one in four, have parents who need childcare but can’t access it.”
Jobs
Hobbs highlighted Arizona’s status as a leader in manufacturing expansion and private sector wage growth, citing the creation of nearly 200,000 jobs since she took office.
She also advocated for renewing Prop 123– which provides funding for public schools and teachers and lifting the cap on school spending.
“All without raising taxes on a single Arizonan,” Hobbs said.
Border Security and Public Safety
Hobbs emphasized the need for a collaborative approach to combat the fentanyl crisis, which she called one of the greatest public safety threats in Arizona’s history.
She said that since July, the Arizona National Guard and U.S. Customs and Border Protection have seized more than 8 million fentanyl pills and more than 2,000 pounds of meth, cocaine, heroin and fentanyl powder.
Her executive budget will include pay raises for state firefighters and police officers.
Reproductive Healthcare
Hobbs proposed making the Arizona Health Care Cost Containment System’s 12-month postpartum coverage permanent and expanding access to family planning services.
She also called for repealing the state’s abortion reporting law, ensuring access to contraception and protecting access to fertility treatments.
Water Security
Hobbs announced that the Arizona Water Company and EPCOR have begun the process of securing Assured Water Supply designations by exploring groundwater alternatives.
“Any bills that attack our assured water supply program, undermine our water future or are political cover for this Legislature’s lack of action on water security, will meet my veto pen,” Hobbs said.
Although Hobbs has secured a deal to prevent forced water usage cuts through 2026, she emphasized the need for continued action
Public Education
Lastly, Hobbs criticized the state’s Empowerment Scholarship Amount (ESA) program, which costs taxpayers nearly $1 billion annually.
“Today it has ballooned into a billion-dollar boondoggle increasingly scamming Arizonans,” Hobbs said.
The state’s school voucher program is a contentious issue, with reports of funds being used for questionable expenses.
During her address, Hobbs called for stricter income caps, greater accountability and increased transparency for taxpayers.
Superintendent of Public Instruction Tom Horne, sat in the front row, arms crossed.
Following the speech, Horne released a statement asserting that he had hired an auditor to validate all expenses within the ESA program.
He criticized Hobbs, claiming she needed to pay more attention to what the Department of Education (ADE) is doing, and said she “gets an F."
In 2023, the ADE projected the program would cost $900 million in 2024.
GOP Response
After the speech, Republican House Speaker Steve Montenegro released a video criticizing Hobbs’ agenda, stating that it did not align with Arizona.
“We are ready to lead with purpose, determination, and a clear focus that reflect the values of Arizona families,” Montenegro said.
During last year’s legislative session, state lawmakers put several issues on the November ballot– most of which were soundly defeated.
Senate leaders also responded, with Republican Speaker Pro Tempore T.J. Shope warning the governor and other Democrats to not stand in the way of border policy changes under the new Trump Administration.
“If the Governor or other elected leaders choose to stand in the way, get ready for court. The Republican-led Arizona legislature vows to uphold the rule of law and we will exhaust all legal options to ensure the chaos we’ve lived for the last four years comes to an end,” Shope said.
Last year, Hobbs set a record on the number of vetoes issued by an Arizona governor.
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