Governor Katie Hobbs urged lawmakers to prioritize K-12 funding, teacher pay and tighter oversight of the Empowerment Scholarship Account (ESA) program.

"We must address the impending expiration of Prop 123," Governor Katie Hobbs said, calling for an extension of the state low-income housing tax credit program's education funding mechanism and for action on the aggregate expenditure limit to ensure schools remain open. She said her proposals would fund teacher pay raises "without raising taxes on a single Arizonan."

On ESAs, Hobbs described the program as having expanded beyond its original purpose and called it "unchecked, flawed, and rife with exploitation," saying it has "ballooned into a $1,000,000,000 boondoggle." She proposed instituting income caps, improving transparency so taxpayers know where ESA money goes and adding accountability measures.

Hobbs also stated the administration wants smaller class sizes, more accountability and to ensure outstanding teachers in every classroom. She urged bipartisan cooperation to renew Prop 123 and to place guardrails around ESAs to prevent fraud, waste and abuse.

The governor framed the proposals as fiscally responsible and urged the legislature to act to provide certainty for schools, teachers and families.