Arizona State Legislature convenes and Gov. Katie Hobbs releases budget

University of Arizona President Suresh Garimella attended the annual opening day celebration on Jan. 13, when the 57th Arizona Legislature convened its first regular session, and met with new and returning lawmakers. 

This was also a time for House and Senate Republicans and Democrats to roll out their goals for the upcoming session. As always, the day concluded with Gov. Katie Hobbs (D) delivering her State of the State address. During her speech, the governor highlighted her policy plan for border security, access to child care, K-12 education, housing, reproductive rights and water.  

Hobbs ended the week by releasing her executive budget recommendation, which includes a $17.7 billion funding plan for fiscal year 2026. The big-ticket items include $529 million for K-12 education, $112.4 million to support child care services and $335 million for the state's Medicaid program. 

Hobbs also included additional bonding capacity for the three public universities to address capital needs. The annual debt services for the additional bonding authority would be financed with 80% state lottery fund dollars, and the universities would provide the remaining 20%. The governor is also recommending the state restore the cuts made to universities last year, which was $23.3 million. The intention in the fiscal year 2025 budget was to continue the cuts for three years. Her plan would restore that funding moving forward. 

Below are more details from Gov. Hobbs' higher education funding proposal.

Universities 

• $325 million increase in the Stimulus for Economic and Education Development (SPEED) bonding authority.
• The Arizona Board of Regents determines the distribution, but the U of A historically has received one-third (about $108 million).
• $23.2 million in ongoing funding for restoration of operational budget cuts.
• The U of A would receive $8 million. This doesn't restore the funding that was cut in FY25 but adds it back to the base budget for FY26 and FY27.
• $20 million in one-time funding to ABOR for the Arizona Promise Program. Distribution is based on student eligibility.
• $15 million in one-time funding to ABOR for the Arizona Teachers Academy. Distribution is based on student eligibility and includes participation of community colleges. 
• $7 million in one-time funding to the Arizona State Museum (ASM) to fulfill repatriation of Indigenous remains and artifacts.
• The funding is provided to ASM to fully comply with the federal Native American Graves Protection and Repatriation Act (NAGPRA). The act requires universities and museums to return Indigenous human remains and artifacts to the Native American tribes from which they were taken. 

Community Colleges 

• $3 million in one-time funding for the Arizona Nurse Education Investment Pilot Program.
• The funding would expand the capacity of nursing education programs at the state's community colleges. 
• $3 million in one-time funding for the state dual enrollment program.
• Dual enrollment accelerates the pathway to college by offering community college courses to students while they are in high school. 
• $2 million in one-time funding for Community College Adult Education Workforce Development program.
• This program provides opportunities for Arizonans to earn a high school diploma, an equivalency degree, industry-recognized credential or a community college degree.