Arizona Governor Katie Hobbs on Monday gave her State of the State address, laying out for lawmakers her priorities for the upcoming year, including affordability, water security, and job attraction.
Affordability
Hobbs emphasized the cost of housing.
“We must further cut the red tape that’s driving up the cost of housing,” she said. “I’m proud of the progress we’ve made expanding access to casitas and building duplexes and triplexes in our downtowns. But Arizonans are depending on us to find more common sense solutions that don’t expose our neighborhoods to untested experiments.”
The governor also stressed the need to lower the financial burden of childcare, costs she called “out of control.” She said she wants to lower the costs of childcare by two-thirds through her Working Families Child Care Act.
It’s an initiative that could have positive ramifications for employers who struggle with recruitment and retention because employees struggle to find reliable and affordable childcare.
“The business community is ready to work with the governor and lawmakers from both parties to find ways to expand access to childcare and put downward pressure on the costs,” Arizona Chamber of Commerce & Industry President and CEO Danny Seiden said.
Security
Hobbs emphasized her administration’s dedication to securing the border. “At my direction, the Arizona National Guard is at our border to support U.S. Customs and Border Protection and stop the flow of dangerous drugs into our state. When I visited the Port of Nogales in November, I saw the critical work that these men and women are doing to protect us. They direct traffic through x-ray machines. They break down vehicles. They assess every potential threat coming into our state. They are Task Force SAFE.”
Water
She also talked about the need to ensure water security for Arizonans. “Securing our water future is essential to preserving our way of life. Whether it’s our use of canals and dams to provide water to millions of people…or the passage of the visionary Groundwater Management Act…or the hard work of farmers, ranchers, Tribal nations and the men and women of the Arizona Department of Water Resources, we have always led the nation in water innovation and conservation.”
Job attraction
She spoke on the necessity of working with the business community to grow Arizona’s economy, referencing the successful 2024 effort to continue the Arizona Commerce Authority, the state’s lead economic development agency. “I stood in front of you and called for the continuation of the Arizona Commerce Authority because I know it’s essential to growing business and creating jobs in this state,” she said. “Fast forward to last week: I announced a historic investment through the CHIPS and Science Act to create Arizona’s first national laboratory and one of America’s three flagship semiconductor research and development facilities. It’s an investment made possible because of the Commerce Authority, which partnered with Arizona State University to bring this enormous opportunity to our state.”
The business community view
Seiden says his organization will continue to focus on growing the Arizona economy.
“Arizona is now a global leader in the semiconductor sector. We want to maintain that momentum,” he said. “The effort to bring good paying jobs to Arizona isn’t a partisan one. As always, lawmakers from both parties can count on the Arizona Chamber to work hard to shape policies that will grow our economy and enhance our competitive standing.”