Governor Katie Hobbs (D-AZ) made affordability her central focus during her State of the State address on Monday, pushing lawmakers to quickly pass tax relief for struggling families.
Hobbs didn't hold back when challenging the legislature to act immediately on tax cuts. "Put the Middle Class Tax Cuts Package on my desk immediately. I'll sign it," she declared.
The proposal would deliver over $200 million in tax relief by increasing standard deductions, cutting taxes on overtime and tips, and helping seniors.
Drawing from her own financial struggles, the governor made her message personal. "I understand how it feels to work hard every day only to come up short on the bills at the end of the month – because I lived it," Hobbs said.
She fired back at those prioritizing corporate interests, stating, "If you think billionaires and big corporations should get a tax break before hardworking families – then you need to spend more time with real Arizonans who are struggling to get by."
The governor unveiled a Housing Acceleration Fund to speed up affordable home construction, hoping to restore Arizona, where working-class couples could afford to buy homes and raise families.
Additional Proposals
Hobbs also proposed a new Arizona Affordability Fund with $20 million to help families pay utility bills. To fund it long-term, she suggested adding a minimal nightly fee to vacation rentals, which she believes could create significant financial relief for working families across the state.
Taking aim at tech companies, Hobbs called for eliminating tax breaks for data centers and making them pay the same water rates as Arizona families.
She argued that the growing data center industry should benefit the people of Arizona rather than the state subsidizing corporate profits.
Beyond housing and taxes, the governor outlined several other major initiatives. She announced a new water protection area for La Paz County to stop out-of-state companies from draining groundwater resources.
Hobbs also demanded that the federal government repay Arizona for more than $700 million spent on border security operations since 2021.
Additionally, she called for reform of the state's school voucher program, criticizing wasteful spending on luxury items that have been highlighted in previous investigations rather than on actual education expenses.
"Arizonans are counting on us and we will deliver. Now, let's get to work,” Hobbs concluded.
