Make Arizona More Affordable

• Middle Class Tax Cuts Package
  • Increases Standard Deduction from $15K to $15,750 for single filers, $30K to $31,500 for joint filers
  • Adds an additional $6K deduction for Arizonans over 65
  • Allows Arizonans to deduct eligible tipped income from taxes
  • Allows Arizonans to deduct eligible overtime income from taxes
• $2.5M in one-time ARPA funds and $2.5M one-time GF for the Housing Acceleration Fund to jumpstart the development of more units and lower costs for Arizonans
• $15M ARPA one-time in FY 2026 and $15M NAF in FY 2027 to assist working families with paying utility assistance bills
• $3.8M GF one-time for School Meals Grants that reduce or eliminate the school meal copay for eligible families
• $1.8M GF one-time in FY 2026 and $1.9M GF one-time in FY 2027 to continue the SUN Bucks program and provide working class families a $120 grocery benefit during the summer
• $44.8M GF for the Child Care Assistance Program to maintain a 40% high quality enhancement rate and ensure affordability for working class families
• $15M ARPA one-time in FY 2026 and $15M NAF in FY 2027 to assist working families with paying utility assistance bills

Keep Arizona Safe

• $9M one-time for Task Force SAFE (Stopping Arizona’s Fentanyl Epidemic)
  • $5M to DPS for Local Border Support to local law enforcement for drug interdiction, bringing the FY 2027 total investment to $18.2M
  • $2M to expand the AZ National Guard Counterdrug program to assist with drug interdiction and UAS detection, continuing Task Force SAFE
  • $2M for Operation Desert Guardian to disrupt transnational criminal organizations and deter drug trafficking
• $765K for the Border Coordination Office
• $10M one-time to bolster Cyber Ready Arizona’s support for state and local entities in protecting their digital environments from bad actors and improving their cyber defenses

Strengthen Arizona’s Families and Protect Children

• $8.2M GF and $2.5M EA one-time to support nearly 1,500 young adults transitioning from foster care to adulthood
• $301.7M GF ongoing, $5.5M GF one-time, $657.8M federal EA ongoing, and $15.2M federal EA one-time to protect the Division of Developmental Disabilities

Secure Arizona’s Water Future and Fight Wildfires

• $10M for extreme heat mitigation
• $30M for the Colorado River Protection Fund
• $20M to combat and respond to wildfires

Invest in Education and Expand Opportunity

• $590.3M investment for K-12 Education in addition to investments through a Prop 123 renewal
• $36.8M School Facilities Building Renewal Bond Debt Service Payment to deliver a historic $1.5 billion school facility building renewal bond
• $94.1M GF one-time to complete 3 new schools currently under construction and $40.1M GF one-time for year one construction costs at one school, one land donation, and three site condition projects
• $6M to assist community college students in obtaining industry recognized credentials and a certificate
• $2M to help adults access free online courses to earn a high school diploma
• $1.5M for the Dual Enrollment Student Development Program to increase college-level courses for high school students
• $1M to provide alternative study services for adults that lead to the issuance of a diploma

Create Efficiency and Capacity in Government

• Savings of up to $100M by the end of FY2029 through the Arizona Capacity and Efficiency Initiative that cuts spending, maximizes efficiencies, and streamlines processes
• Establishing a household income cap of $250,000 for universal ESA eligibility, saving $89.3M
• Banning the purchase of luxury items through the ESA program such as luxury car driving lessons, diamond rings, and lingerie
• Makes data centers pay their fair share by ending the data center tax exemption and including a data center water usage fee to fund the Colorado River Protection Fund

View the full FY27 budget proposal.