State of Arizona Fiscal Year 2017 Budget

"This budget is balanced, it’s values-based and it tackles our greatest challenges. It makes critical investments in K-12 education, child safety and public safety – all without raising taxes."

Governor Doug Ducey
  • Arizonans deserve a say in how their tax dollars are spent. After releasing his Executive Budget Proposal, Governor Ducey’s office held public hearings all across the state – in Flagstaff, Phoenix, Prescott, Tucson, and Yuma. Several hundred citizens participated in person and online, to voice their most important priorities.

    Public Engagement

  • Government can’t spend more than it has. This budget brings Arizona to a $61 million positive structural balance by the end of fiscal year 2017, and protects our state’s most important priorities without raising taxes. The budget eliminates the state’s structural deficit, and protects the state’s rainy day fund. In total, overall spending growth is 1.2% percent – which is below population and inflation growth rate. Over 58% of the 2017 spending initiatives are one-time, further contributing to Arizona’s long-term financial stability.

    Fiscal Responsibility

  • Every Arizona student has the right to a quality education. The budget makes significant investments in Arizona’s K-12 public school system, adding $181 million for K-12 education – on top of the $224 million supplemental authorized in the 2016 special legislative session. The budget also includes $29 millions to fully fund JTED programs and $53.6 million for public school capital improvement.

    Public Schools

  • Arizona has three of the best universities in the country, and these institutions are critical to the economic development of our state. This budget includes $705 million in state support to universities. In total, universities will have $5.7B in total funds to continue providing world-class education.

    Higher Education

  • We must protect our most vulnerable children. This budget makes a new $116 million two-year investment in child safety, while focusing on safely reducing the growth rate of children in state care. This brings the total child safety spending to $974 million in fiscal year 2017.

    Child Safety

  • Crimes that stem from breakdowns in border security are a drain on Arizona resources and result in consequences ranging from violent crime and highway accidents to more foster care placements and greater demand for health care. In 2015, Governor Ducey announced the Border Strike Force, which has already resulted in significant seizures of drugs, weapons, and criminal arrest. This budget includes an additional $26.6 million to expand the DPS Border Strike Task Force and keep Arizonans safe.

    Public Safety

  • In 2016 the state fully recovered the jobs lost during the recession, and Forbes named Arizona the #1 state in future job growth. This budget includes $8 million in tax relief for small businesses that will further enhance Arizona’s business-friendly climate.

    Tax Relief

  • Maintaining the state’s transportation infrastructure is a key priority. A strong transportation system offers a number of economic and quality of life benefits, and this budget invests an additional $86.5 million in Arizona’s transportation system, which will be used to leverage additional federal dollars for infrastructure projects.


  • The brave men and women who have served our nation in uniform deserve far more than words of gratitude and ceremonial recognition. This budget dedicates $10 million for the development of a new Veterans home in Flagstaff where they’ll be provided real support and assistance.