AZ State of the State 01-09-2023

A new legislative session began this afternoon, as lawmakers from around the state took the oath of office and celebrated the possibilities for the months ahead. There are many new faces: Almost half of the legislators are new to the Capitol.

The main event of the legislature’s opening day is the Governor’s State of the State address. Governor Katie Hobbs (D) used her first speech to the legislature to highlight her broad goals for her term in office, emphasizing the need for bipartisan cooperation and policies that she believes will directly benefit Arizona families.

The Governor’s speech focused on education. Describing the state’s aggregate expenditure limit as an “archaic funding cap” that is “holding our schools hostage,” the Governor urged lawmakers to immediately enact a Republican-sponsored proposal to lift the state’s aggregate expenditure limit on school district spending to remove doubt about schools’ ability to spend almost $1.4 billion in funds the legislature already appropriated.

The Governor also outlined her policy and funding priorities for education, beginning with an end to the expanded Empowerment Scholarship Account (ESA) funding the legislature – led by now-House Speaker Ben Toma (R-Peoria) – enacted last year.

The Governor hinted that her budget will allocate funding to teacher pay and school facilities, and will alter school funding to direct resources to schools through the Base Support Level, rather than school grades and student performance. She called for new audits of charter schools that receive public funding and pledged to help schools hire more social workers and counselors to address student mental health challenges. She also announced the creation of an Educator Retention Task Force to recommend changes to address the state’s shortage in teachers.

The speech also focused on higher education, pledging new resources for community colleges and funding to support 10,000 more students with tuition assistance through the Arizona Promise Scholarship Program. The Governor also pledged $40 million for a Promise for Dreamers program that would waive immigration status requirements for recipients.

Throughout the Governor’s address, she repeatedly expressed a desire for cooperation and bipartisan solutions to these and other policies. But some Republicans made it clear they’re not prioritizing bipartisanship this year. While most of the Republican caucus listened to the Governor’s speech, several turned their backs or left the chamber as the new Governor outlined her goals.

What’s Next?

On Friday, Governor Hobbs will share more details about her policy priorities when she releases her budget proposal. In the meantime, legislators now turn their focus to bills: Those they’re sponsoring, those they’re opposing, and those they’re determined to enact this year. Bill introductions are much slower this year than normal, perhaps the result of a lengthy election cycle and many newcomers to the Capitol. There are fewer than 100 proposals thus far, but many more will come in the next few weeks.

Most policy committees are not meeting this week, but will begin their hearings after the Martin Luther King, Jr. holiday early next week.

Click here for a schedule of committee hearings and floor sessions in the House and Senate.