In first State of the State speech, Arizona Gov. Katie Hobbs puts focus squarely on education

Arizona Democratic Gov. Katie Hobbs unveiled broad plans for funding public education and addressing the state’s water crisis in her first State of the State address at the state Capitol on Monday.

Hobbs returned to the Arizona House of Representatives, where she served from 2011 to 2013, to address lawmakers on their first day of work and outline her plans for the year to come.

The 42-minute speech echoed the tone, and appeal for bipartisanship, set in her inauguration address five days prior. She said she would keep her door open to lawmakers of all parties, but made clear that efforts to promote conspiracy theories and special interests would “lead nowhere.”

Those comments, and her commitments to public education funding, drew standing ovations and cheers from Democratic lawmakers — a phenomenon not seen in more than a decade as Democrats endured such speeches from Republican governors. This year, it was Republicans' turn to respond coolly, staying seated and refraining from clapping.

At one point in the speech, two Republican senators, Anthony Kern of Glendale and newcomer Justine Wadsack of Tucson, stood and turned their backs on Hobbs. When the governor pledged to defend abortion rights and veto any bill that “delays the liberty or inherent right of any individual to decide what’s best for themselves or their families,” a handful of the most conservative Republican lawmakers walked out of the chamber.

Those protests were a visual manifestation of the tough road ahead for Hobbs, who must work with Republican-controlled chambers to achieve her policy goals. They also showed the significance of the shift in power at the Capitol, where Democratic priorities have long gone unaddressed.

Hobbs, speaking to reporters later Monday, addressed the walkout by the few Republicans.

“I'm still optimistic that we can find common ground on a lot of the issues that we talked about,” Hobbs said. “It's unfortunate that some members chose an immature stunt instead. We have really tough issues in front of us and we need to work together to solve them.”

Arizona State of the State:Hobbs ends speech with nod to future

Hobbs puts emphasis on education

The governor spent significant time, nearly half of her speech, discussing her plans for public education. She urged lawmakers to act quickly to lift a cap on school spending that, in just a few months, could threaten cuts to school budgets. Hobbs stopped short of a more forceful approach on the issue, such as calling lawmakers into a special session to lift the cap, though she has said she would be open to doing so.

She said she would launch a task force aimed at retaining qualified teachers, and that her budget proposal coming Friday “truly invests in public schools and students,” beginning with teachers. She also forecasted a “historic” investment in school capital needs like facilities, and more money for community colleges, particularly in rural areas, and dual-enrollment programs that help train students who do not attend college.

Hobbs also took a jab at the state’s private school voucher program, a key accomplishment of her Republican predecessor, former Gov. Doug Ducey. Ducey and the Legislature expanded the program, formally called Empowerment Scholarship Accounts, to all of Arizona's more than 1 million public school students with a 2022 bill Hobbs has said she would have vetoed, had she been in office at the time.

Her State of the State called for more accountability of the program that she said “is poised to cost Arizona taxpayers an estimated $1.5 billion over the next 10 years if left unaddressed.” She said it could likely "bankrupt" the state.

“Let me go on the record to say that any school that accepts taxpayer dollars should have to abide by the same accountability standards that all district schools do,” Hobbs said. “We have seen too many examples of individuals and shady corporations taking advantage of the system and our students.”

Hobbs later acknowledged that accountability for funds that go first to families, then to private schools, would be a challenge, but her willingness to tackle an issue in the face of Republican opposition garnered praise from public school advocates, who supported Hobbs in the campaign.

"For the first time in decades, educators know their voices are heard and have a seat at the table," Arizona Education Association President Marisol Garcia said in a statement, on behalf of the state's largest teachers' union. "Our educators and students need someone like Gov. Hobbs who supports union values and will fight for our working families."

Senate Democratic Leader Raquel Terán, D-Phoenix, said Hobbs’ priorities fit neatly with what Democrats are proposing for 2023 legislation.

Terán applauded the governor’s call for $40 million to create what she called the “Promise for DREAMers Scholarship Program.” It builds on the voter approval of Proposition 308, which permits people who were brought to the United States as children to pay in-state college and university tuition, instead of the out-of-state rates they were subject to. Hobbs said the program would cover all students who attend a state university, regardless of immigration status.

The warm reception from Democrats wasn't reflected across the aisle, however.

House Speaker Ben Toma, R- Glendale, who sat on the dais behind Hobbs, likened the overall tone of Hobbs’ speech to “a DNC speech,” referring to the Democratic National Committee. He reserved comment on areas of potential cooperation until he sees the governor’s budget.

“Details matter,” Toma said. “If the budget matches that tone, it’s DOA,” he said of a possible left-leaning spending plan for the state.

Water, housing were other key focuses of speech

The governor outlined other areas where she wants to focus her efforts, and said she would spend money to do so.

Hobbs said she wants to invest $150 million into a housing trust fund; earmark $50 million to create a child tax credit for families that earn less than $40,000 a year; and exempt diapers and feminine hygiene products from sales tax.

“These everyday items add up and we can and should help provide this relief to individuals and families who too often must choose between paying their bills or paying for the things they need to be healthy,” she said.

Senate President Warren Petersen, of Gilbert, pointed to Hobbs’ support for tax credits as a signal that she might be open to Republican proposals to lighten the tax burden on people struggling with inflation. He has proposed elimination of the food tax and the rental tax.

“I would think if that gets to her desk, which I think it will,” he said of his tax ideas, “she will sign it.”

Hobbs emphasized water issues, saying she would launch a Governor’s Office of Resiliency and a Governor’s Water Policy Council to modernize and expand the Arizona Groundwater Management Act, a 1980 bill that sets rules for use of the state’s groundwater.

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“Arizona needs partnerships on a local, state, regional, and national level, and I intend to put us in the best position to do so,” she said.

“We are all in this together,” she added. “Bring forward innovative solutions to this challenge of our time. We cannot let the same old partisan fights drag us down. My administration is ready and willing to work with you and we will always do what’s best for Arizona and its people.”

The governor said she would, and later did, release a Department of Water Resources report that shows some areas are short of the 100-year water supply required by the department, which she said “unequivocally shows that we have to act now, or this will only be the first new area that faces this kind of shortage.”

Hobbs said she did not understand or “in any way agree with, my predecessor choosing to keep this report from the public and from members of this Legislature.” Asked to confirm Hobbs' characterization of the Ducey administration's stance, a spokesperson for the Department of Water Resources didn't answer directly, sharing a statement from Director Tom Buschatzke that "it is time to include legislators, the business community and all constituencies to address the challenges" in the West Valley.

Challenges lie ahead with GOP-controlled Legislature

Hobbs is Arizona’s 24^th governor and its fifth female leader, more than have served in any other state. She previously served in the Legislature from 2011 to 2019, and as Arizona’s secretary of state, having narrowly won election as the state’s election chief in 2018. Hobbs’ national profile emanated from the office and her staunch defense of the 2020 election.

Representatives and senators packed onto the floor of the Arizona House of Representatives to listen to her speech that mentioned, but didn’t detail, Republican concerns like job growth and border security.

Rep. Teresa Martinez, R-Casa Grande, said she's hopeful for cooperation but was wary of some of the strident tones in Hobbs' speech.

"The Republicans come in peace," she said. "But we are prepared for war."

Democratic Secretary of State Adrian Fontes, Democratic Attorney General Kris Mayes, Republican Treasurer Kimberly Yee and Republican Superintendent of Public Instruction Tom Horne, as well as former Republican governors Jan Brewer and Fife Symington, sat in the front row reserved for the most high-profile guests.

While Hobbs has said she will seek bipartisanship, the first day of the new Legislative session signaled the challenges ahead. Both chambers of the Legislature have single-vote Republican majorities, and Hobbs' entry into the arena marks the first time in 14 years power is split between the Legislature and Governor's Office.

And among Republican members of the Legislature, the conservatives include more Trump-aligned candidates likely to find themselves at odds with Hobbs’ agenda. Of 90 members in the Legislature, 46% are new this year — though some have served before.

Over a dozen lawmakers who make up the Legislature’s rightmost flank, collectively organized as the Arizona Freedom Caucus, gathered outside the Senate building Monday morning. They pledged to sue Hobbs over her first executive order, which they said overstepped her authority as the state’s chief executive.

The order, issued on Hobbs’ first day as governor, directs state agencies to implement anti-discrimination policies that apply to employment decisions and contracts. It prohibits discrimination based on additional categories, including gender identity, ancestry, marital status and others.

Sen. Jake Hoffman, R-Queen Creek, and one of the false Arizona electors who in 2020 aimed to retain Donald Trump as president, offered few details during a press conference.

“We are here to talk about illegal executive orders and curbing Katie Hobbs’ radical woke agenda, trying to legislate via executive fiat,” Hoffman said. “That is not what the people of Arizona elected her to do. That is not her proper role as the governor in this state.”

Reach reporter Stacey Barchenger at stacey.barchenger@arizonarepublic.com or 480-416-5669. Follow her on Twitter @sbarchenger.

This article originally appeared on Arizona Republic: Arizona Gov. Hobbs' State of the State focuses on education funding