Governor Ducey releases budget focused on education, border security and water

PHOENIXGovernor Doug Ducey released his budget for fiscal year 2023 today, continuing the momentum that has made Arizona a success in education, public safety, natural resources and infrastructure.

“Whether it’s paying off billions in debt, growing our Rainy Day Fund to a record $1 billion, getting a high credit score and lowering taxes for hard-working Arizonans, we make decisions fiscally responsible people who benefit the people we serve: the citizens of Arizona,” Governor Ducey said. “Our FY2023 Executive Budget continues this management. We are going full throttle to leave Arizona stronger than we found it through targeted investments in education, public safety, border security , infrastructure and things that matter to Arizonans.

Strengthening Arizona’s Strong Financial Position
For the past seven years, Arizona has lived within its means. Under Governor Ducey, Arizona enjoyed the longest period of balanced budgets in modern state history. While its population has grown, the budget is balanced, the economy is booming, and the government is smaller and more efficient than it has ever been. This year, the Executive Budget will continue to secure Arizona’s fiscal future by raising the Rainy Day Fund to the highest level in state history.

Since 2016, Governor Ducey has generated $7 billion in ongoing new revenue and put more than $2 billion back into the pockets of Arizonans. In fiscal year 2023, the governor intends to continue allowing Arizonans to keep more of their hard-earned money through the creation of a state-earned income tax credit. , returning an average of $128 per year to hard-working taxpayers.

Investing in the things that matter most to Arizonans
The Governor’s Budget addresses the issues that matter most to Arizonans. Through historic investments, the Executive Budget promotes school choice and focuses on student outcomes, improves public safety and soldier compensation, resolves the border crisis, increases our water resistance, expands a vital part of I-10, keeps families together through family care, catalyzes the modernization of the state park system, and helps Arizona families keep more of their hard-earned money.

Catching up with Arizona’s kids and increasing parent responsibility
The proposed budget invests an additional $322 million in K-12 education to get children back on track as they recover from the effects of the pandemic and remote learning. To further mitigate learning loss, $100 million in federal resources will be allocated to a summer camp, helping to close the achievement gap.

Protecting Arizona’s Southern Border and Arizona Communities
Through targeted investments, the budget continues Governor Ducey’s priority of securing Arizona’s southern border. To create the American Governors’ Border Strike Force, a coordinated, multi-faceted effort, the budget allocates $11.6 million. Matched with $50 million for the Border Security Fund, Arizona will have enhanced border patrols, physical barriers, detention, and pursuits.

Securing new water resources
Building on a monumental water policy, the Executive Budget further invests $1 billion in Arizona’s water future. Through the Drought Mitigation Revolving Fund, rural water supply projects, increased groundwater capacity, and conservation projects, Arizona is creating a sustainable future.

The governor’s office briefed Republican and Democratic lawmakers on budget details this week.

Highlights of the budget plan include:

K-12 and Higher Education

  • $100 million federal resources to launch summer camps and eliminate learning loss

  • $10 million abolish tuition fees in higher education for spouses of veterans

  • $30 million in federal resources for community college workforce accelerators in partnership with industry leaders

  • $5 million build on civic excellence by incentivizing civic achievement

  • $58 million bring renewed attention to closing the achievement gap in chronically underperforming schools

  • $20 million for a second year of school transportation modernization grants to improve best practices for getting students to the school of their choice

  • $60.8 million additional funding to modernize results-based funding, bringing total funding to $129.4 million annually for successful schools

  • $200 million to maintain school facilities through building renovation grants

  • $89.5 million to complete five new schools already under construction and begin construction of three new schools

  • $127 million in additional investments in higher education

  • $46 million support higher education workforce initiatives to prepare students for high-demand jobs

  • $12.5 million to expand the Arizona Promise program

health and wellbeing

  • $19.8 million to support increasing the monthly kinship allowance from $75 to $300

  • $1.5 billion in federal and state resources critical to the state’s COVID-19 response

  • $11.7 million provide optimal care to Arizonans in need through Arizona State Hospital to address ongoing operational pressures

  • $25.7 million to foster a public-private partnership with Creighton University to expand the Accelerated Nursing Academy

  • $8.2 million to protect Arizona’s most vulnerable and reduce the number of cases from Adult Protective Service investigators

public safety

  • $50 million deposit in the Border Security Fund for enhanced patrols, physical barriers, detention and prosecution

  • $11.6 million to expand the Border Strike Force by doubling support from the Department of Public Safety and tripling local law enforcement grants

  • $30.8 million to increase the salaries of law enforcement professionals from the Ministry of Public Security

  • $92.9 million to support the infrastructure needs of the Department of Corrections, Rehabilitation and Rehabilitation statewide, which will improve the safety of staff and inmates

  • $5 million expand the Governor’s “Second Chance” initiative which provides employment opportunities for inmates after their incarceration, which enhances their ability to become productive citizens

  • $10.4 million to address the Department of Emergency and Military Affairs (DEMA) Readiness Center maintenance backlog

Natural resources

  • $1 billion over three years for strategic water augmentation projects and resources to secure Arizona’s water future

  • $36.2 million to protect Arizona lands through Phase II of the Arizona Healthy Forest Initiative, bringing the state’s total investment for forest treatments to $42.4 million in fiscal year 2023

  • $16.8 million increase the revolving fund for fire suppression to $20 million annually, allowing the state to quickly reimburse local fire departments that help respond to wildfires

  • $176.6 million in federal and state resources to boost rural tourism through 44 state park system projects, which include upgrading campgrounds, renovating historic structures, improving physical and digital access to the park system, and Moreover

government that works

  • $400 million to bring the state’s total commitment to the Interstate 10 expansion to $540 million, which will cover 20 miles of the 25-mile segment and replace the Gila River Bridge. This investment will further position the state to receive federal funds to fully fund the aforementioned 25-mile segment between Phoenix and Casa Grande.

  • $10 million to launch a statewide cybersecurity readiness grant program and provide cybersecurity tools to local governments and school districts

  • $247 million to bolster Arizona State’s shrinking workforce and address inflationary pressures and staffing needs

  • $50 million deposit in the newly created State Match Advantage for Rural Transportation (SMART) fund to help communities outside of Maricopa and Pima counties and the Arizona Department of Transportation compete for federal transportation grants and obtain funds to improve the state’s transportation system.

  • $24.6 million preventing cyberattacks with a new cybersecurity risk management program

  • $15.7 million to develop Business One-Stop Portal Phase II, allowing users to seamlessly plan, start and grow a business in Arizona

Consult the summary book, State Agency Book, and Sources and Uses of State Funds HERE.


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