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TED: COMING UP NEXT ON THIS SPECIAL HOUR-LONG EDITION OF "ARIZONA HORIZON," GOVERNOR KATIE HOBBS DELIVERS HER STATE OF THE STATE ADDRESS THIS AFTERNOON.

WE WILL HEAR THE SPEECH IN ITS ENTIRETY AND GET EXPERT ANALYSIS.

THE GOVERNOR'S STATE OF THE STATE ADDRESS ON THE NEXT "ARIZONA HORIZON."

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TED: GOOD EVENING, AND WELCOME TO "ARIZONA HORIZON."

I'M TED SIMONS.

GOVERNOR KATIE HOBBS GAVE HER STATE OF THE STATE ADDRESS THIS AFTERNOON AT THE 2026 LEGISLATIVE SESSION KICKED OFF.

WE'LL HEAR THE GOVERNOR'S SPEECH AND HEAR FROM TWO POLITICAL EXPERTS WHAT THE GOVERNOR SAID.

HERE NOW, THE GOVERNOR'S STATE OF THE STATE ADDRESS.

>> SPEAKER MONTENEGRO, PRESIDENT PETERSEN, MEMBERS OF THE HOUSE AND SENATE, SECRETARY FONTES, ATTORNEY GENERAL MAYES, SUPERINTENDENT HORNE, TREASURER YEE, MINE INSPECTOR PRESSMIK.

CHIEF JUSTICE TIMMER AND MEMBERS OF THE JUDICIARY TRIBAL LEADERS, HONORED GUESTS AND MY FELLOW ARIZONANS.

TODAY, WE MARK THE OPENING OF THE SECOND REGULAR SESSION OF ARIZONA'S 57th LEGISLATURE.

I WANT TO BEGIN BY RECOGNIZING STATE SENATOR LELA ALSTON WHO INFORMED US SHE'LL BE RETIRING AFTER THIS SESSION.

MILA HAS DEDICATED DECADES OF HER LIFE TO BUILDING A BETTER STATE THROUGH INVESTING IN PUBLIC EDUCATION, PROTECTING INDIVIDUAL RIGHTS AND FREEDOMS, AND CREATING A BRIGHTER FUTURE FOR EVERY ARIZONAN.

[APPLAUSE] >> THANK YOU.

AND LET US ALL COME TOGETHER IN DENOUNCING THE HORRIFIC VIOLENCE THAT IS POISING OUR POLITICS.

FROM THE ASSASSINATION OF MINNESOTA HOUSE SPEAKER MELISSA PORTMAN AND ARIZONA'S OWN CHARLIE KIRK, TO THE EXPLOSIVE MATERIALS FOUND IN THE ARIZONA SUPREME COURT JUST LAST WEEK.

THE RISING TIDE OF POLITICAL VIOLENCE MUST COME TO AN END.

[APPLAUSE] >> AS ELECTED LEADERS, IT IS OUR RESPONSIBILITY TO TURN DOWN THE TEMPERATURE AND DENOUNCE VIOLENCE IN ALL FORMS.

FELLOW ARIZONANS, THE LATE SENATOR BARRY GOLDWATER ONCE IMAGINED WHAT OUR STATE WOULD BE 100 YEARS AFTER ITS CREATION.

HE SAID ARIZONA WILL CONTINUE TO BE THE HAVEN FOR PEOPLE WHO SEEK AN OUTLET FOR INITIATIVE AND A REWARD FOR WORK.

SENATOR GOLDWATER'S WORDS WERE TRUE IN 1962, AND THEY ARE STILL TRUE TODAY, NEARLY A DECADE AND A HALF INTO ARIZONA'S SECOND CENTURY.

THROUGH DETERMINATION, COLLABORATION AND A FEW ARGUMENTS ALONG THE WAY, OUR PROGRESS HAS CARRIED ON.

LAST YEAR AT THIS PODIUM, I MADE A PROMISE TO ARIZONANS, THE ARIZONA PROMISE.

IT REPRESENTED THE COMPACT OUR STATE HAS ALWAYS MADE TO ITS CITIZENS THAT WE WOULD BE A BASTION OF SECURITY, OPPORTUNITY AND FREEDOM FOR WHOEVER IS WILLING TO COME HERE, WORK HARD, AND MAKE A GOOD LIFE FOR THEMSELVES AND THEIR FAMILIES.

SINCE I HAVE HAD THE HONOR OF SERVING AS GOVERNOR, WE HAVE MADE GREAT STRIDES TO RESTORE THIS PROMISE, AND WE HAVE PUT THE RIGHTS, LIBERTIES AND FREEDOMS OF THE PEOPLE OF ARIZONA FIRST.

IN THE LAST YEAR, WE CREATED TENS OF THOUSANDS OF JOBS, AND INCREASED TAKE-HOME PAY, ERASED MILLIONS OF DOLLARS OF MEDICAL DEBT FOR NEARLY HALF A MILLION ARIZONANS.

[APPLAUSE] >> LOWERED THE COST OF CHILD CARE, PRESCRIPTION DRUGS AND HOUSING TO SUPPORT WORKING FAMILIES AND BUSINESSES.

TOOK ACTION TO REDUCE VETERAN HOMELESSNESS AND SUICIDES.

BUILT MORE HOMES AND GREW OUR ECONOMY ALL WHILE PROTECTING OUR WATER.

WE DELIVERED A WELL-EARNED RAISE FOR OUR COURAGEOUS AND DEDICATED POLICE, DISPATCHERS AND FIREFIGHTERS, EMPOWERED MEN AND WOMEN IN UNIFORM TO SEIZE DRUGS, WEAPONS AND CRIMINALS OFF THE STREETS AND OUT OF OUR COMMUNITIES, AND WE SECURED HISTORIC INVESTMENTS TO GROW OUR STATE'S ECONOMY.

FROM COGNIGHT, THE FIRST A.I.

COMPANY TO BE HEADQUARTERED IN ARIZONA TO DUTCH BROS.

WHICH RELOCATED ITS HEADQUARTERS FROM OREGON, ARIZONA HAS SHOWN THE WORLD THAT WE ARE THE BEST PLACE TO START AND GROW A BUSINESS.

WE ALSO CAN'T DISCUSS THE ECONOMIC SUCCESS OF THE LAST YEAR WITHOUT MENTIONING THE LARGEST FOREIGN DIRECT INVESTMENT IN OUR COUNTRY'S HISTORY.

ARIZONA IS PROUD TO HAVE TSMC LOCATED RIGHT HERE IN PHOENIX, AND WE'RE THRILLED TO BE PARTNERS IN YOUR SUCCESS.

LAST YEAR, I TRAVELED TO TAIWAN FOR A DIPLOMATIC AND TRADE MISSION.

I WAS HONORED TO MEET WITH PRESIDENT LAI AND BUSINESS AND GOVERNMENT OFFICIALS TO REAFFIRM HOW MUCH THE PEOPLE OF ARIZONA VALUE OUR FRIENDSHIP AND PARTNERSHIP.

I'M HAPPY THAT TSMC ARIZONA PRESIDENT ROSE CASANARES JOINS US TODAY AND LOOK FORWARD TO WORKING TOGETHER IN THE YEARS AHEAD.

[APPLAUSE] >> OUR PROGRESS IS UNDENIABLE.

STILL, FAR TOO MANY ARIZONANS ARE STRUGGLING TO KEEP UP WITH THE COST OF HOUSING, FOOD, HEALTH CARE AND UTILITIES.

AS OUR STATE CONTINUES TO BUILD A STRONG ECONOMIC FUTURE, I WILL NEVER FORGET ABOUT MY FELLOW ARIZONANS WHO ARE FIGHTING EVERY DAY TO BUILD A BETTER LIFE FOR THEMSELVES AND THEIR FAMILIES.

I WILL NEVER FORGET THEM BECAUSE THEIR EXPERIENCE IS MY EXPERIENCE.

I SCRAPED TOGETHER SCHOLARSHIPS AND WORKED AT PIZZA HUT TO PUT MYSELF THROUGH COLLEGE.

I HELPED DOMESTIC VIOLENCE SURVIVORS AS A SOCIAL WORKER.

I WORKED MULTIPLE JOBS TO MAKE SURE MY KIDS COULD EAT AND HAVE A ROOF OVER THEIR HEADS.

I UNDERSTAND HOW IT FEELS TO WORK HARD EVERY DAY ONLY TO COME UP SHORT ON THE BILLS AT THE END OF THE MONTH BECAUSE I LIVED IT, AND THAT'S WHY THE ARIZONA PROMISE IS PERSONAL TO ME, AND THIS IS WHY I AM COMMITTED TO WORKING TOGETHER ON REAL SOLUTIONS FOR ARIZONANS.

LIKE SO MANY ARIZONA FAMILIES ARE DOING RIGHT NOW, I KNOW HOW TO STRETCH A DOLLAR.

I SAW MY PARENTS DO IT, I DID IT MYSELF TO HELP MY FAMILY GET BY AND SUPPORT MY KIDS.

AFFORDABILITY ISN'T A JOKE OR SOME HOAX, IT IS A REAL AND CONSEQUENTIAL CHALLENGE THAT FAMILIES ACROSS ARIZONA MUST GRAPPLE WITH EVERY DAY.

POCKETBOOKS ARE STRAINED, AND ARIZONANS NEED THEIR ELECTED OFFICIALS TO TAKE ACTION.

AFFORDABILITY IS MY TOP PRIORITY, AND I'M ENCOURAGED THAT IT'S YOURS AS WELL.

NOW IS THE TIME TO BACK UP THAT TALK.

PUT THE MIDDLE-CLASS TAX CUT PACKAGE ON MY DESK IMMEDIATELY.

I'LL SIGN IT.

[APPLAUSE] >> LET'S DELIVER AN OVER $200 MILLION TAX CUT FOR HARD-WORKING ARIZONA FAMILIES.

TOGETHER, WE CAN IMMEDIATELY INCREASE THE STANDARD DEDUCTION THAT 88% OF ARIZONA TAX FILERS USE.

WE CAN CUT TAXES ON OVERTIME PAY AND TIPS.

WE CAN GIVE OUR SENIORS A BREAK.

WE CAN PUT MORE MONEY IN THE POCKETS OF ARIZONA FAMILIES.

MONEY THAT WILL HELP THEM PUT FOOD ON THE TABLE, CARE FOR THEIR CHILDREN AND PAY THEIR UTILITY BILLS.

I RECOGNIZE THAT YOU'RE NOT GOING TO AGREE WITH EVERYTHING I SAY OR PROPOSE HERE TODAY, AND THAT'S FINE.

HOWEVER, WE SHOULD ALL AGREE THAT MIDDLE-CLASS FAMILIES DESERVE A TAX CUT NOW, SO ARIZONANS CAN GET THAT RELIEF WHEN THEY FILE THEIR TAXES THIS SPRING.

[APPLAUSE] >> LET ME ALSO SAY IF YOU THINK BILLIONAIRES AND BIG CORPORATIONS SHOULD GET A TAX BREAK BEFORE HARD-WORKING FAMILIES, THEN YOU NEED TO SPEND MORE TIME WITH REAL ARIZONANS WHO ARE STRUGGLING TO GET BY.

[APPLAUSE] >> THE SAME OLD PARTISAN ATTITUDES WILL GET US NOWHERE THIS YEAR.

OUR CONSTITUENTS DON'T CARE ABOUT THE POLITICAL GAMES THEY PLAY IN OUR NATION'S CAPITOL, AND THEY DON'T CARE IF GOOD IDEAS COME FROM DEMOCRATS OR REPUBLICANS.

THEY CARE THAT THE PEOPLE THEY ELECT GET THINGS DONE TO MAKE THEIR LIVES BETTER, REGARDLESS OF PARTY AFFILIATION AND IDEOLOGY.

WHEN WE PUT ARIZONA FIRST, WE SHOW THE POLITICAL CLASS IN WASHINGTON, D.C.

HOW TO GET THINGS DONE.

THERE'S NO BETTER EXAMPLE OF HOW WE DELIVER FOR OUR PEOPLE AND HOW WASHINGTON FAILS, THAN THE TALE OF TWO BUDGETS.

THE PARTISAN WASHINGTON BUDGET KNOWN AS HR-1 COMPARED TO THE ARIZONA PROMISE BUDGET WE PASSED LAST YEAR.

LAST SESSION WE WORKED TOGETHER TO PROTECT MEDICAID, WHILE THE PARTISAN POLITICIANS IN WASHINGTON SLASHED IT, ENDANGERING THE FUTURE OF ARIZONA'S RURAL HOSPITALS IN ORDER TO PAY FOR TAX BREAKS FOR BILLIONAIRES.

WE DELIVERED 10 MILLION SCHOOL MEALS TO CHILDREN WHO NEEDED THEM, WHILE WASHINGTON CUT FOOD ASSISTANCE, AND THEN HELD IT HOSTAGE DURING THE FEDERAL GOVERNMENT SHUTDOWN.

THE BUDGET WE PASSED WAS BIPARTISAN AND BALANCED, WHILE THE WASHINGTON BUDGET WAS PARTISAN AND SKYROCKETED THE NATIONAL DEBT BY TRILLIONS OF DOLLARS, LEAVING OUR CHILDREN AND GRANDCHILDREN TO PICK UP THE TAB FOR OUR FEDERAL GOVERNMENT'S RECKLESS AND IRRESPONSIBLE SPENDING.

WHILE WASHINGTON'S BUDGET CONTINUES TO BE FULL OF BLOAT AND WASTE, I AM PROUD THAT, HERE IN ARIZONA, WE KEEP A CLOSE EYE ON THE SIZE OF OUR GOVERNMENT, BUT WE MUST DO MORE.

FAMILIES IN OUR STATE ARE STRETCHING EVERY DOLLAR, AND WE MUST DO THE SAME.

IN THE PAST YEAR, I'M PROUD TO SAY WE FOUND SOLUTIONS TO MAKE ARIZONA'S GOVERNMENT MORE EFFICIENT AND MORE EFFECTIVE.

MY EXECUTIVE BUDGET WILL INCLUDE A NEW ARIZONA CAPACITY AND EFFICIENCY INITIATIVE, A SERIES OF COST-SAVING MEASURES THAT CAN SAVE ARIZONA UP TO $100 MILLION OVER THE NEXT THREE YEARS.

WE WILL NOT SLASH AND BURN WITH STUNTS THAT DO MORE HARM THAN GOOD.

WE WILL NOT DECIMATE IMPORTANT SERVICES THAT FAMILIES AND BUSINESSES RELY ON.

WE WILL STREAMLINE, CONSOLIDATE AND CUT COSTS TO MAKE GOVERNMENT WORK FOR OUR PEOPLE.

HERE IN ARIZONA, WE'RE GOING TO DO THINGS OUR WAY AND WE'RE GOING TO DO THEM BETTER BECAUSE WASHINGTON HAS FAILED US, BUT WE WILL NOT FAIL OUR FELLOW ARIZONANS.

[APPLAUSE] >> LOOK AT WHAT WE ACCOMPLISHED IN THE TOWN OF SUPERIOR WHERE THERE IS A ROCKY WASH NOT FAR FROM ROUTE 60.

SOME DAYS IT'S BONE DRY AND OTHER DAYS IT'S A VIGOROUS TORRENT.

SUPERIOR MAYOR BESITCH WHO IS WITH US TODAY KNOWS IT WELL.

AS SOMEONE WHO GREW UP IN THE TOWN, SHE'S DEALT WITH THE WASH'S UNPREDICTABILITY ALL OF HER LIFE.

NORTH OF THE CREEK ARE MAIN STREET BUSINESSES.

SOUTH OF THE CREEK, SCHOOLS, A COMMUNITY POOL, AND THE FIRE DEPARTMENT.

FOR YEARS, THE TOWN OF SUPERIOR COULD NOT SAFELY CROSS THE CREEK, BUT WHEN I REACTIVATED THE GREATER ARIZONA DEVELOPMENT AUTHORITY, WE UNLOCKED THE OPPORTUNITY FOR PLACES LIKE SUPERIOR TO BUILD INFRASTRUCTURE THAT RURAL COMMUNITIES NEED.

TODAY, THE PANTHER DRIVE BRIDGE ACROSS THAT WASH HAS BROUGHT PEACE OF MIND TO THE AREA'S RESIDENTS.

TO THE PARENTS WHO KNOW THEIR CHILDREN CAN GET TO SCHOOL SAFELY.

TO THE SMALL BUSINESS OWNERS WHO WANT A RELIABLE COMMUTE HOME FROM WORK.

TO THE FIREFIGHTERS, PARAMEDICS AND EMTs WHO CAN RESPOND TO EMERGENCIES MORE QUICKLY, THE PANTHER DRIVE BRIDGE IS A POWERFUL EXAMPLE HOW INVESTING IN RURAL INFRASTRUCTURE SAVES LIVES.

IT IS A BRIDGE TO THE ARIZONA PROMISE.

CONNECTING ARIZONANS TO SECURITY, OPPORTUNITY AND FREEDOM.

THIS PAST YEAR, WE ALSO SAW THE SPIRIT OF THE ARIZONA PROMISE EXEMPLIFIED IN THE HEROISM THAT BROUGHT LIGHT AMID DARKNESS.

LAST SUMMER, A VICIOUS FIRE, ONE OF THE LARGEST IN OUR STATE'S HISTORY, BROKE OUT ALONG THE NORTH RIM OF THE GRAND CANYON.

THE DRAGON BRAVO FIRE SCORCHED MORE THAN 145,000 ACRES, DESTROYING OUR BELOVED GRAND CANYON LODGE.

THOUSANDS OF FIREFIGHTERS, ALL OF THEM HEROES, BATTLED THE FLAMES.

STATE FIREFIGHTERS, LIKE CAPTAIN CHRISTOPHER RUBIO AND HIS CREW, WORKED ALONGSIDE THE NORTH RIM TO STOP THE FIRE FROM SPREADING INTO EMPLOYEE HOUSING AND CAMPGROUNDS.

CAPTAIN GARRETT THOMAS AND HIS CREW PROTECTED HOMES AND HISTORICAL SITES AND PREVENTED THE FIRE FROM MOVING FROM THE TIMBER DOWN INTO THE GRASS, AND CAPTAIN GERARDO DIAZ AND HIS CREW WORKED FOR DAYS TO PREPARE A ROAD THAT WOULD BECOME CRITICAL TO SLOWING THE FIRE'S MOVEMENT.

THANKS TO THEIR ACTIONS, AND THE TIRELESS EFFORTS OF SO MANY OTHERS, THE DRAGON BRAVO FIRE WAS FULLY CONTAINED.

CAPTAINS THOMAS AND DIAZ ARE WITH US IN ATTENDANCE TODAY.

YOU CAN PLEASE STAND SO WE CAN RECOGNIZE YOU?

[APPLAUSE] >> THANK YOU.

THESE MOMENTS REMIND US JUST HOW FRAGILE LIFE CAN BE, BUT ALSO HOW RESILIENT WE ARE AS ARIZONANS.

AND WE CERTAINLY NEED THAT RESILIENCE TODAY, ESPECIALLY IN THE WAKE OF THE FEDERAL GOVERNMENT'S INCOMPREHENSIBLE DECISION TO DENY ARIZONA'S EMERGENCY FUNDING REQUEST, TO HELP THE GLOBE AND MIAMI COMMUNITIES THAT SUFFERED DEVASTATING FLOODS.

FAMILIES HAVE HAD THEIR LIVES SHAKEN AND THEIR LIVELIHOODS DESTROYED.

THESE ARE OUR FELLOW ARIZONANS.

THEY ARE OUR FELLOW AMERICANS, AND THEY NEED OUR SUPPORT NOW MORE THAN EVER.

IN THE AFTERMATH OF THE FLOODS, I VISITED SMALL BUSINESSES AND THEIR OWNERS.

AN ANTIQUE STORE WHERE MUD HAD REACHED WAIST LEVEL, WREAKING DESTRUCTION.

A FAMILY-OWNED DANCE STUDIO WHERE BEAUTIFUL COSTUMES AND EXPENSIVE EQUIPMENT WERE LOST FOREVER.

NEIGHBORS SHOWED UP WITH SHOVELS TO CLEAR DEBRIS AND SALVAGE ANYTHING THEY COULD.

BLOOD, SWEAT AND TEARS WENT INTO BUILDING THESE LIVELIHOODS.

HOW CAN OUR FEDERAL GOVERNMENT TURN ITS BACK ON ARIZONANS WHO ARE SIMPLY TRYING TO GET BACK ON THEIR FEET?

NO MATTER WHO YOU VOTED FOR, WE ARE ARIZONANS AND AMERICANS WHO DESERVE HELP WHEN DISASTER STRIKES.

I HOPE ELECTED OFFICIALS ON BOTH SIDES OF THIS CHAMBER, AND IN CONGRESS, JOIN ME IN CALLING ON FEMA TO RIGHT THIS WRONG AND REVERSE THEIR CALLOUS DECISION TO DENY OUR COMMUNITIES EMERGENCY ASSISTANCE.

[APPLAUSE] >> TO THE PEOPLE OF GLOBE AND MIAMI, YOU DESERVE BETTER THAN THIS.

WE WILL CONTINUE TO FIGHT FOR YOU AND ALL ARIZONANS.

ESPECIALLY WHEN WASHINGTON, D.C.

WON'T.

[APPLAUSE] >> AS ELECTED OFFICIALS, WE HAVE A RESPONSIBILITY TO DELIVER WHAT MATTERS MOST TO ARIZONA FAMILIES -- SECURITY.

SECURITY THAT PROTECTS OUR COMMUNITIES, OUR POCKETBOOKS AND OUR DREAMS FOR THE FUTURE.

AT THE CORE OF THE ARIZONA PROMISE IS SAFETY FOR ALL.

THAT MEANS STOPPING DANGEROUS DRUGS FROM INVADING OUR STATES AND GETTING CRIMINALS WHO ARE HARMING OUR FAMILIES AND NEIGHBORS OFF OUR STREETS.

WHEN WASHINGTON POLITICIANS FAILED US, I PROUDLY DEPLOYED MEMBERS OF THE ARIZONA NATIONAL GUARD TO OUR SOUTHERN BORDER.

THE EFFORTS OF THESE BRAVE MEN AND WOMEN HAVE STOPPED MILLIONS OF FENTANYL PILLS.

THOUSANDS OF POUNDS OF OTHER ILLICIT SUBSTANCE, AND HUNDREDS OF ILLEGAL WEAPONS FROM ENTERING OUR STATEMENT BUT TRANSNATIONAL CRIME DOESN'T STOP AT OUR BORDER.

THAT'S WHY LAST YEAR I LAUNCHED OPERATION DESERT GUARDIAN.

WE BROUGHT TOGETHER LOCAL POLICE DEPARTMENTS, COUNTY SHERIFFS, STATE TROOPERS, TRIBAL AND FEDERAL LAW ENFORCEMENT OFFICERS TO DISRUPT AND DISMANTLE TRANSNATIONAL CRIMINAL ORGANIZATIONS IN ARIZONA, AND THEY HAVE MADE AN IMPACT STATEWIDE.

LAST MONTH, STATE TROOPERS AND LAW ENFORCEMENT PARTNERS IN NORTHERN ARIZONA, INCLUDING THE YAVAPAI AND COCONINO COUNTY SHERIFF'S OFFICES CONDUCTED A COORDINATED EFFORT ALONG THE REGION'S MAJOR TRANSPORTATION CORRIDORS.

OUTCOME WAS A SEIZURE OF OVER 300 POUNDS OF DRUGS AS WELL AS THE ARREST OF A FELON WITH AN OUTSTANDING $1 MILLION WARRANT FOR CRIMES AGAINST CHILDREN, AND THAT'S JUST ONE EXAMPLE OF REAL WORLD IMPACT FROM OPERATION DESERT GUARDIAN.

SINCE ITS INCEPTION, OUR COMBINED COUNTERDRUG OPERATIONS HAVE SEIZED MORE THAN $105 MILLION WORTH OF ILLEGAL DRUGS, MORE THAN 16,000 POUNDS OF FENTANYL, MORE THAN 1200 ILLEGAL FIREARMS AND RESULTED IN MORE THAN 1400 ARRESTS.

I'M PROUD TO SAY THAT ARIZONA SHERIFFS ASSOCIATION PRESIDENT DAVID KLAUSS AND KARA SHAWN REILLEY JOIN US TODAY TO CELEBRATE OUR PARTNERSHIP.

THANK YOU, BOTH.

[APPLAUSE] >> THANK YOU, BOTH, AND THANK YOU TO ALL LAW ENFORCEMENT WHO ARE WORKING WITH OPERATION DESERT GUARDIAN AND TO THE HUNDREDS OF MEN AND WOMEN IN UNIFORM WHO CONTRIBUTE THEIR EXPERTISE, SKILLS AND BRAVERY TO THIS IMPORTANT MISSION.

HERE IN ARIZONA, WE'RE GETTING REAL RESULTS.

WHILE THE FEDERAL GOVERNMENT NEGLECTS DRUG SMUGGLING TO ADDRESS DEPORTATION QUOTAS, ARIZONA IS TAKING ON THE CARTELS.

WHILE THE FEDERAL GOVERNMENT USES LAW ENFORCEMENT SOURCES IN CITIES THOUSANDS OF MILES FROM THE SOUTHERN BORDER, ARIZONA IS LASER FOCUSED ON SECURING THE BORDER, GETTING DRUGS OFF THE STREETS AND CRACKING DOWN ON CRIMINALS POISONING OUR NEIGHBORHOODS AND OUR CHILDREN.

WE HAVE CONSISTENTLY PICKED UP THE SLACK FOR THE FEDERAL GOVERNMENT, RACKING UP A TAB OF OVER $700 MILLION IN BORDER SECURITY EXPENSES OVER THE LAST FIVE YEARS.

I MADE IT CLEAR TO BOTH THE BIDEN AND TRUMP ADMINISTRATIONS THAT WE EXPECT TO BE PAID BACK.

TODAY, I'LL SAY IT AGAIN, ARIZONA IS TIRED OF FOOTING THE BILL FOR THE FEDERAL GOVERNMENT'S INACTION.

[APPLAUSE] >> THE FEDERAL GOVERNMENT MUST REPAY US FOR THE OVER $700 MILLION WE HAVE SPENT ON BORDER SECURITY SINCE 2021, AND I WANT TO SPECIFICALLY THANK THE LEGISLATIVE LEADERS FROM BOTH PARTIES FOR JOINING ME IN HOLDING THE FEDERAL GOVERNMENT ACCOUNTABLE FOR THE DEBT THEY OWE TO ARIZONA TAXPAYERS AND I LOOK FORWARD TO CONTINUING THAT PARTNERSHIP IN THE YEAR AHEAD.

WHEN IT COMES TO THE ARIZONA PROMISE, SECURITY ALSO MEANS ECONOMIC STABILITY.

IT'S ABOUT BEING ABLE TO AFFORD BASIC NECESSITIES, AND ABOUT LIVING WITHOUT THE FEAR OF ONE UNEXPECTED EVENT DEVASTATING YOUR FINANCES.

JUST LOOK AT THE TOLL THAT MEDICAL DEBT HAS TAKEN ON TOO MANY ARIZONANS.

FACING TREATMENT FOR LIFE THREATENING MEDICAL CONDITIONS, MANY HAVE HAD TO MAKE IMPOSSIBLE CHOICES, PAY OFF DEBT OR PUT FOOD ON THE TABLE OR PAY THE UTILITY BILL TO.

RETURN SECURITY TO THEIR LIVES, I LAUNCHED A HISTORIC INITIATIVE TO CANCEL MEDICAL DEBT AND DELIVER MEANINGFUL RELIEF FOR WORKING-CLASS ARIZONANS.

[APPLAUSE] >> BEFORE WE TOOK ACTION, ARIZONANS OWED $2.4 BILLION WORTH OF MEDICAL DEBT.

TODAY, WE'VE ERASED $642 MILLION IN MEDICAL DEBT FOR NEARLY HALF A MILLION PEOPLE WITHOUT COSTING THE STATE GOVERNMENT A DIME.

[APPLAUSE] >> OUR CONSTITUENTS DESERVE SAFE COMMUNITIES.

THEY DESERVE ECONOMIC SECURITY, AND THEY DESERVE A HOPEFUL FUTURE.

UNLIKE POLITICIANS OF THE PAST, I REFUSE TO BURY MY HEAD IN THE SAND, I REFUSE TO IGNORE THE PROBLEMS WE FACE, I WILL TACKLE THEM HEAD-ON TO DELIVER FOR OUR STATEMENT I DID JUST THAT WHEN MY ADMINISTRATION DELIVERED THE WILLCOX ACTIVE MANAGEMENT AREA TO PROTECT THE GROUND WATER AND WHEN I ORDERED STATE LAND LEASES WHO IS ENDLESSLY PUMPING GROUND WATER TO INCREASE PROFITS.

I WILL CONTINUE TO STAND FOR COMMUNITIES ACROSS OUR STATE TO MAKE SURE THEY'RE PROTECTED FROM CORPORATIONS WHO CARE ONLY ABOUT TODAY'S PROFITS, NOT ARIZONA'S FUTURE.

[APPLAUSE] >> AND THAT'S WHY TODAY I'M ANNOUNCING A NEW ACTIVE MANAGEMENT AREA FOR LA PAZ COUNTY, TO CRACK DOWN -- [APPLAUSE] >> TO CRACK DOWN ON THE OUT-OF-STATE SPECIAL INTERESTS THAT ARE PUMPING OUR STATE DRY, WHILE ARIZONA FAMILIES AND FARMERS SUFFER.

WHY DO WE NEED ANOTHER AMA?

BECAUSE IN THEIR GROUND WATER BASIN, THE LAND IS SINKING AND LEGISLATURES ARE SHRINKING RESPONSIBILITY.

LA PAZ COUNTY SUPERVISOR HOLLY IRWIN IS HERE TODAY.

SHE SHOWED ME WELLS THAT HAVE GONE DRY AND HOMES THAT ARE SINKING IN THE COMMUNITY.

WE SPOKE WITH ARIZONA HOME OWNERS AND FARMERS WORRIED ABOUT THE FUTURE.

SHE AND SO MANY NEIGHBORS SEE HOW AMAs HELPED FAMILIES AND OTHER BUSINESSES IN OTHER PARTS OF THE STATE, AND THEY WANT THE SAME FOR LA PAZ.

THIS NEW AMA WILL HELP PROTECT LOCAL WATER SUPPLIES WHILE GIVING RESIDENTS LIVING IN THE BASIN A SAY OVER THEIR WATER FUTURE.

WE CAN NO LONGER SIT IDLY BY WHILE RURAL COMMUNITIES GO WITHOUT HELP.

THEY DESERVE SOLUTIONS AND SECURITY, NOT ANOTHER DECADE OF INACTION AND UNCERTAINTY.

[APPLAUSE] >> WHILE WE SECURE OUR WATER AND STAND UP FOR OUR COMMUNITIES, WE CAN GROW OUR ECONOMY, BUILD HOMES AND CREATE THE FUTURE THAT ARIZONA FAMILIES DESERVE.

WE DID JUST THAT LAST YEAR WITH THE CREATION OF INNOVATIVE GROUND WATER PROGRAMS.

I'M PROUD TO ANNOUNCE THAT UNDER OUR NEW AG TO URBAN AND ALTERNATIVE DESIGNATION OF ASSURED WATER SUPPLY PROGRAMS, WE HAVE ALREADY DESIGNATED WATER SUPPLIES FOR OVER 60,000 NEW HOMES IN ARIZONA.

HOMES WHERE ARIZONA FAMILIES CAN GROW, BUILD A LIFE TOGETHER, AND REST EASY AT NIGHT KNOWING THEY WILL HAVE THE WATER THEY NEED NOW AND INTO THE FUTURE.

[APPLAUSE] >> THIS TYPE OF SMART GROWTH IS OUR FUTURE.

WE CAN PROTECT OUR GROUND WATER SUPPLIES.

WE CAN BUILD MORE HOUSING AND LOWER COSTS, WE CAN CONTINUE TO BE THE MODEL FOR THE NATION WHEN IT COMES TO WATER CONSERVATION AND ECONOMIC DEVELOPMENT.

I REJECT THE NAYSAYERS ON BOTH SIDES WHO PIT ECONOMIC GROWTH AGAINST A SUSTAINABLE WATER FUTURE.

THOSE WHO SAY WE MUST GUT WATER PROTECTIONS TO GROW OUR ECONOMY, OR WHO SAY WE MUST SACRIFICE OUR FARMS, JOBS AND BUSINESSES TO PROTECT OUR NATURAL RESOURCES.

ARIZONA IS BETTER THAN THAT.

WE HAVE ALWAYS RISEN TO THE MOMENT TO DEFEND OUR SECURITY, OPPORTUNITY AND FREEDOM WHILE PROTECTING OUR WATER FOR OUR FAMILIES.

AS WE LOOK TO THE ONGOING COLORADO RIVER NEGOTIATIONS, THESE CORE ARIZONA PRINCIPLES GUIDE US.

FOR YEARS, ARIZONA AND OUR FELLOW LOWER-BASIN STATES -- CALIFORNIA AND NEVADA -- HAVE REGULARLY BROUGHT PROPOSALS, HOURS OF COLLABORATION, AND A COMMITMENT TO THE LONG-TERM HEALTH OF A RIVER THAT SUSTAINS NEARLY 40 MILLION PEOPLE.

THESE EFFORTS HAVE BEEN CONSISTENTLY IGNORED BY POLITICIANS IN WASHINGTON, D.C., AND BY THE UPPER-BASIN STATES.

THE FEDERAL GOVERNMENT CAN NO LONGER WATCH THESE NEGOTIATIONS FROM THE SIDELINES.

THEY MUST ENSURE THE UPPER BASIN IS STEPPING UP AND CONSERVING WATER LIKE ARIZONA DOES AND GET A DEAL DONE.

THE UPPER-BASIN STATES LED BY COLORADO, HAVE CHOSEN TO DIG IN THEIR HEELS INSTEAD OF ACKNOWLEDGING REALITY.

AS NEGOTIATIONS CONTINUE, I REFUSE TO BACK DOWN.

I STAND UNITED WITH OUR TRIBAL PARTNERS, FARMERS, CITIES, BUSINESSES AND OTHERS WHO KNOW THIS WATER IS A VITAL RESOURCE FOR OUR STATE.

I STAND UNITED WITH SPEAKER MONTENEGRO, PRESIDENT PETERSEN AND LEADERS DE LOS SANTOS AND SENURATION WHO HAVE BEEN PARTNERS IN THE FIGHT AND WORKING WITH ME TO HOLD THE UPPER BASIN ACCOUNTABLE.

I WILL FIGHT FOR ARIZONA FIRST AND FIGHT FOR THE WATER WE ARE OWED.

[APPLAUSE] >> LAST YEAR, I CREATED A COLORADO RIVER LITIGATION FOUND ENSURE WE HAVE THE RESOURCES WE NEED TO FIGHT THE UPPER BASIN FOR THE WATER WE DESERVE.

THIS YEAR, MY EXECUTIVE BUDGET WILL INCLUDE $30 MILLION FOR A NEW COLORADO RIVER PROTECTION FUND, TO SUPERCHARGE OUR CONSERVATION EFFORTS AND CONTINUE BUILDING A SUSTAINABLE AND GROWING ECONOMY.

TO PAY FOR ONGOING INVESTMENTS, I AM PROPOSING ONE KEY ACTION.

MAKE DATA CENTERS PAY THEIR FAIR SHARE FOR THE WATER THEY USE.

[APPLAUSE] >> THE AVERAGE ARIZONA FAMILY PAYS ONE CENT FOR EVERY GALLON OF WATER THEY USE IN THEIR HOME.

IF DATA CENTERS WERE TO PAY THE SAME AMOUNT, WE COULD MAKE A MULTIMILLION DOLLAR DEPOSIT INTO THE COLORADO PROTECTION FUND EVERY SINGLE YEAR.

IT'S TIME WE MAKE THE BOOMING DATA CENTER INDUSTRY WORK FOR THE PEOPLE OF OUR STATES, RATHER THAN THE OTHER WAY AROUND.

[APPLAUSE] >> IF WE'RE TO BE SUCCESSFUL, WE MUST RETHINK OUR STATE'S APPROACH TO DATA CENTERS MORE BROADLY.

MORE THAN A DECADE AGO, WE MADE A STRATEGIC DECISION TO GROW DATA CENTERS, BY CREATING A TAX EXEMPTION FOR THEM.

I VOTED FOR IT.

NOW, ARIZONA SAY NATIONAL LEADER IN THIS SECTOR.

WE MUST ASK OURSELVES, SHOULD TAXPAYERS CONTINUE SUBSIDIZING THE DATA CENTER INDUSTRY?

I KNOW MY ANSWER.

MY EXECUTIVE BUDGET WILL ELIMINATE THE TAX EXEMPTION PUTTING AN END TO $30 MILLION CORPORATE HANDOUT.

[APPLAUSE] >> AND I'M GLAD LEGISLATORS IN BOTH PARTIES AGREE WITH ME.

I CAN'T WAIT TO GET TO WORK AND GET THIS DONE.

[APPLAUSE] >> PROTECTING ARIZONANS' WAY OF LIFE IS A PILLAR OF THE ARIZONA PROMISE, AND BEYOND OUR ACTIONS ON WATER, ONE OF THE MOST IMPACTFUL WAYS WE INCREASED THAT PROTECTION IS A COMMITMENT TO HOUSING AFFORDABILITY.

OVER THE LAST THREE YEARS, WE BROKE GROUND ON MORE AFFORDABLE HOUSING UNITS THAN IN ANY OTHER THREE-YEAR PERIOD IN OUR STATE'S HISTORY.

IN 2024, MARICOPA COUNTY LED THE NATION IN HOUSING CONSTRUCTION.

THE NUMBERS SHOW ARIZONA PRICES ARE ON THE DECLINE.

WE LAUNCHED A WAR ON THE COST OF HOUSING AND IT'S STARTING TO PAY OFF.

.

THROUGH OUR ARIZONA IS HOME PROGRAM, WE CONNECTED ARIZONA FAMILIES TO DOWNPAYMENT INTEREST AND BUYDOWNS WEEK HAVE SINGLE FAMILY DEVELOPMENTS IN THE WEST VALLEY WITH MORE TO COME, AND WE'VE TAKEN ACTION TO GIVE ARIZONANS THE FREEDOM TO BUILD MORE HOUSING ON THE PROPERTY THEY OWN, AND TO DO IT WITHOUT NECESSARY AND BURDENSOME RED TAPE.

THESE ARE REAL RESULTS, AND ARIZONANS ARE SEEING THE BENEFITS, BUT WE CAN'T TAKE OUR FOOT OFF THE GAS.

THAT'S WHY TODAY I'M ANNOUNCING A NEW HOUSING ACCELERATION FUND TO BUILD MORE AFFORDABLE HOUSING FASTER.

THE FUND LEVERAGES PUBLIC AND PRIVATE DOLLARS TO UNLOCK LOWER COST FINANCING AND MULTIPLY THE AFFORDABLE HOMES WE BUILD.

FOR EVERY DOLLAR WE INVEST, WE'LL GENERATE UP TO $10 TO FINANCE PROJECTS THAT HOUSE ARIZONANS.

.

I'M PROUD TO ANNOUNCE WE'LL KICKSTART THIS INITIATIVE WITH A $2.5 MILLION INVESTMENT, AND CALL UPON THIS LEGISLATURE TO CONTINUE THE FUNDING ANNUALLY TO ENSURE WE BUILD THE HOUSING ARIZONA FAMILIES NEED.

LET'S KEEP FIGHTING FOR A WORKING-CLASS FAMILY TO CALL HOME AND RAISE THEIR FAMILY IN.

[APPLAUSE] >> AND WHILE WE MUST CONTINUE TO DO EVERYTHING WE CAN TO MAKE BUYING A HOME MORE AFFORDABLE, WE MUST NOT LOSE SIGHT THAT FOR MANY, SIMPLY LIVING HAS GOTTEN HARDER AS EXPENSES INCREASE.

UTILITY BILLS ARE ONE OF THE LARGEST EXPENSES PEOPLE PAY EVERY MONTH, AND TOO MANY ARIZONANS ARE FALLING BEHIND.

TO SUPPORT OUR FELLOW ARIZONANS, TODAY I AM PROPOSING THE CREATION OF THE ARIZONA AFFORDABILITY FUND, TO HELP MANAGE THE HIGH COST OF HOUSING AND UTILITIES.

THE FUND WILL HELP WORKING CLASS FAMILIES PAY UTILITY BILLS.

WEATHERIZE THEIR HOMES TO LOWER ENERGY COSTS AND BUILD MORE AFFORDABLE HOUSING UNITS.

I'M STARTING THIS INITIATIVE TODAY WITH A $20 MILLION INVESTMENT.

[APPLAUSE] >> BUT WE NEED A FUNDING SOURCE FOR THE LONG RUN.

TACKLING AFFORDABILITY IS NOT A ONE-YEAR PROJECT.

THAT'S WHY I'M PROPOSING A NIGHTLY FEE ON SHORT-TERM RENTAL SPACE TO FUEL THE ARIZONA AFFORDABILITY FUND.

[APPLAUSE] >> BY ASKING VACATIONERS TO KICK IN $3.50, LESS THAN A CUP OF COFFEE, WE CAN DELIVER MAJOR CHANGE FOR THE WORKING PEOPLE IN OUR STATE WHO ARE STRUGGLING TO GET BY.

WHEN WE DELIVER SECURITY LIKE THIS, THE ARIZONA PROMISE CREATES IMMENSE OPPORTUNITY, THE KIND OF OPPORTUNITY THAT MEANS FINDING A GOOD-PAYING JOB THAT SUPPORTS A FAMILY.

THAT MEANS HAVING THE CHANCE TO BUY OR RENT IN A NEIGHBORHOOD WHERE YOU WANT TO PUT DOWN ROOTS.

THAT MEANS GETTING AHEAD SO YOU CAN BUILD THE FUTURE YOU WANT.

IT'S THE TYPE OF OPPORTUNITY MY PARENTS WORKED SO HARD TO ACHIEVE, WHILE RAISING MY SIBLINGS AND ME IN TEMPE.

THE TYPE OF OPPORTUNITY I HOPE THE NEXT GENERATION HAS WHEN THEY RAISE THEIR OWN FAMILIES RIGHT HERE IN ARIZONA.

AND DESPITE THE CHALLENGES BEFORE US, WE ARE TAKING ACTION TO MAKE THAT A REALITY AGAIN.

WE ARE ATTRACTING ENTREPRENEURS AND MULTINATIONAL BUSINESSES TO SET UP SHOP IN ARIZONA.

WE ARE CONNECTING THOUSANDS OF ARIZONANS TO APPRENTICESHIPS AND FAMILIES SUSTAINING JOBS.

WE ARE INVESTING IN RURAL INFRASTRUCTURE LIKE BRIDGES AND AFFORDABLE HIGH-SPEED INTERNET ACROSS ALL COMMUNITIES.

WE ARE SUPPORTING OUR STATE UNIVERSITIES AND COMMUNITY COLLEGES AS THEY EDUCATE AND TRAIN OUR WORKFORCE.

WE ARE CUTTING RED TAPE TO BUILD OUR ENERGY FUTURE.

WE ARE REDUCING COSTS AND CREATING JOBS.

THESE ARE REAL WORLD EXAMPLES MADE POSSIBLE THROUGH OUR VISION OF THE ARIZONA PROMISE AND BIPARTISAN SOLUTIONS.

HOWEVER, IF THIS LEGISLATURE TRULY WANTS TO CREATE OPPORTUNITIES FOR ARIZONA FAMILIES, IT'S TIME TO SUPPORT PUBLIC EDUCATION AND BRING ACCOUNTABILITY TO THE ESA ENTITLEMENT PROGRAM.

[CHEERS AND APPLAUSE] >> WHILE OTHER GOVERNMENT ENTITLEMENTS HAVE STRICT REQUIREMENTS AND OVERSIGHT, THE ESA PROGRAM CONTINUES TO OPERATE UNCHECKED, SQUANDERING TAXPAYER DOLLARS WITH NO ACCOUNTABILITY.

IT SEEMS LIKE EVERY DAY WE LEARN ABOUT NEW SHOPPING SPREES HAPPENING AT THE EXPENSE OF TAXPAYERS.

DIAMOND JEWELRY, HI-END CLOTHING AND FURNITURE.

WHO KNOWS WHAT TAXPAYERS WILL BE FOOTING THE BILL FOR TOMORROW.

AND MY PLAN, THE ORIGINAL MISSION OF THE ESA PROGRAM, TO HELP KIDS WITH DISABILITIES AND MILITARY FAMILIES, REMAINS UNTOUCHED, BUT EVENT PROGRAM'S MOST ARDENT SUPPORTERS MUST AGREE, IT'S TIME WE TACKLE THE WASTE, FRAUD AND ABUSE TO ENSURE TAXPAYER DOLLARS ARE GOING TOWARDS TRUE EDUCATIONAL PURPOSES.

[APPLAUSE] >> WHEN WE REVISIT A RENEWAL OF PROP 123 THIS SESSION, LET'S END THE PARTISAN CALLS TO ADD CONSTITUTIONAL PROTECTIONS TO THEs ENTITLEMENT PROGRAM.

THE ORIGINAL BALLOT MEASURE WAS SUCCESSFULLY PASSED BECAUSE IT ENJOYED THE SUPPORT OF TEACHERS, PARENTS, BUSINESS LEADERS, AND REPUBLICAN AND DEMOCRATIC-ELECTED OFFICIALS.

LET'S RECAPTURE THAT SPIRIT AND THE DIVERSE AND KEEP THE DIVISIVE PARTISAN POLICIES OUT OF NEGOTIATION.

LET'S GET SERIOUS ABOUT OUR ONCE IN A DECADE OPPORTUNITY TO INVEST IN OUR STATE'S PUBLIC SCHOOLS WITHOUT RAISING TAXES.

IT'S TIME TO RENEW PROP 123 AND STOP THE TEACHER EXODUS, TO STOP UNDERFUNDING SCHOOLS AND LETTING THEM CRUMBLE, AND TO GIVE OUR STUDENTS THE TOOLS THEY NEED TO THRIVE.

LET'S SHOW PARENTS THE BUSINESS COMMUNITY, AND THE NATION THAT ARIZONA IS SERIOUS ABOUT BUILDING THE WORLD-CLASS PUBLIC EDUCATION SYSTEM WE NEED FOR THE FUTURE THROUGH EVERY STAGE OF EDUCATION.

[APPLAUSE] >> FINALLY, THE PRINCIPLE UPON OUR STATES AND COUNTRY WERE BORN IS FREEDOM.

WE BELIEVE IN AND REALIZE THE PROMISE OF FREEDOM EVERY DAY.

THE FREEDOM IS NOT INEVITABLE, NOR GUARANTEED.

WE HAVE TO FORGE A PATH OF LIBERTY EVERY DAY TO KEEP IT ALIVE, AND ARIZONANS WILL ALWAYS RISE TO THAT CHALLENGE.

I THINK OF SO MANY ARIZONA TRAIL BLAZERS WHO HAVE PAVED THIS WAY, FROM BARRY GOLDWATER AND JOHN McCAIN, TO MARK KELLY AND GABBY GIFFORDS, FROM CESAR CHAVEZ TO SANDRA DAY O'CONNOR TO PAT TILLMAN.

FREEDOM TO VENTURE TO AND FROM ALL FOUR CORNERS OF OUR STATE, TO EXPRESS OURSELVES AND PETITION OUR GOVERNMENT, TO DECIDE WHO TO LOVE AND TO DO BETTER TOMORROW THAN TODAY, FREEDOM TO MAKE YOUR VOICE HEARD AT THE BALLOT BOX.

FREEDOM TO MAKE YOUR OWN MEDICAL DECISIONS, INCLUDING HOW AND WHEN TO GROW YOUR FAMILY.

[APPLAUSE] >> AND FREEDOM TO REALIZE THAT BETTER TOMORROW FOR YOUR KIDS AND GRANDKIDS.

FREEDOM IN ALL ITS SHAPES AND SIZES IS IN THE DNA OF ARIZONA.

GENERATION AFTER GENERATION, WE HAVE PROTECTED OUR CITIZENS FROM FEDERAL OVERREACH, FROM MISGUIDED POLITICIANS, FROM ECONOMIC HARDSHIP, FROM TERRORISM AND CYBER THREATS, FROM DROUGHT AND OTHER NATURAL DISASTERS.

WE HAVE BRAVED TUMULTUOUS DAYS AND EMERGED STRONGER.

A NATIONAL AND INTERNATIONAL LEADER IN BIOSCIENCES, ADVANCED CHIP MANUFACTURING, AEROSPACE AND OTHER FUTURE DEFINING INDUSTRIES, WE HAVE NEVER LOST SIGHT OF THE NORTH STAR OF FREEDOM THAT MAKES IT ALL POSSIBLE.

THAT WAS CERTAINLY THE CASE FOR ME.

WHERE ELSE CAN SOMEONE WHOSE FAMILY RELIED ON FOOD STAMPS TO GET BY BE THE FIRST IN HER FAMILY TO GRADUATE COLLEGE FROM TWO OF OUR STATE'S PUBLIC UNIVERSITIES?

WHERE ELSE CAN A SOCIAL WORKER WHO SUPPORTED DOMESTIC VIOLENCE VICTIMS, CARRY THAT EXPERIENCE TO THE CAPITOL TO MAKE LIVES BETTER?

WHERE ELSE CAN A STRESSED MOM WHO HAD TO TAKE SECOND AND THIRD JOBS TO SUPPORT HER KIDS GO ONTO FIGHT FOR FAMILIES AS GOVERNOR?

THAT'S WHAT MAKES ARIZONA SUCH A SPECIAL PLACE.

YES, WE HAVE STUNNING NATURAL BEAUTY.

THE MOST STUNNING OF ALL 50 STATES, BUT OUR FREEDOM IS WHAT TRULY SETS US APART.

THIS IS THE ARIZONA PROMISE, AND WE ALL DESERVE TO BE A PART OF IT.

I'M PROUD OF HOW FAR WE'VE COME IN MAKING THAT PROMISE A REALITY, BUT ARIZONA FAMILIES CAN'T AFFORD FOR US TO GO BACKWARD.

WITHOUT A DOUBT, THERE ARE CHALLENGES AHEAD, WASHINGTON, D.C.

ELITES WILL TRY TO DIVIDE US USING ZERO-SUM POLITICS.

STILL SMEAR BIPARTISANSHIP, VILIFY COMMUNITIES AND PUT IDEOLOGIES OVER COMMON SENSE.

MAKE NO MISTAKE, THOUGH, OUR STATE'S FULL POTENTIAL IS REALIZED WHEN WE WORK TOGETHER TO DO WHAT'S RIGHT FOR OUR CITIZENS AND OVERCOME THE NAYSAYERS AND THE HYPERPARTISANS.

WE HAVE THE OPPORTUNITY BEFORE US.

WE MUST SEIZE IT.

TOGETHER, WE CAN LOWER TAXES FOR ARIZONA FAMILIES NOW.

WE CAN MAKE HOUSING AND ENERGY MORE AFFORDABLE.

WE CAN PROTECT OUR COMMUNITIES FROM CRIMINALS AND DRUGS.

WE CAN CRAFT WATER POLICY THAT PROTECTS OUR MOST PRECIOUS RESOURCE, WHILE ADVANCING ECONOMIC DEVELOPMENT AND SECURITY.

WE CAN GUARANTEE ARIZONA REMAINS THE BEST PLACE IN THE COUNTRY START OR GROW YOUR BUSINESS.

TOGETHER, WE CAN ENSURE ARIZONA IS BLESSED WITH SECURITY, OPPORTUNITY AND FREEDOM.

ARIZONANS ARE COUNTING ON US, AND WE WILL DELIVER.

NOW LET'S GET TO WORK.

[CHEERS AND APPLAUSE] .

TED: JOINING US TO TALK ABOUT THE GOVERNOR'S SPEECH IS CHUCK COUGHLIN, PRESIDENT AND CEO OF HIGHGROUND PUBLIC AFFAIRS CONSULTANTS AND KYLE GENTLES, A PARTNER IN THE GENTLES AGENCY.

THANK YOU FOR JOINING US.

WE'LL START TO THE LEFT OF THE AISLE.

WHAT DID YOU THINK OF THIS SPEECH?

>> I THOUGHT THE SPEECH WAS GOOD.

SHE HIT ALL HER POINTS AND THE BULLET TO THREE WORDS, AFFORDABILITY, AFFORDABILITY AND AFFORDABILITY.

SHE REALLY CARRIED THAT THREAD THROUGH EVERY SINGLE PART OF HER SPEECH.

THAT'S THE FOCUS ON EVERYTHING SHE DID THIS SESSION.

AS YOU LOOK AT WHAT SHE'S TRYING TO ACCOMPLISH, THIS IS KIND OF LIKE ESPECIALLY NOW IN THE BEGINNING OF A SESSION, LIKE SPRING TRAINING BASEBALL.

SHE'S VERY OPTIMISTIC, EVERYBODY IS OPTIMISTIC AND YOU PUT THE SUITS ON AND YOU GOT TO PLAY BALL NOW.

SHE HAS TO HIT GROUNDERS, SOME DOUBLES AND GET WINS UNDER HER BELT, AND THEN THE HARDER STUFF WILL HAPPEN DOWNSTREAM IN THE LEGISLATIVE SESSION.

TED: AS FAR AS THE SPEECH IS CONCERNED, DID SHE GET ANY HITS?

>> YEAH, SHE'S COME A LONG WAY FROM THE TIME SHE FIRST STARTED IN THIS JOB.

SHE'S A MUCH BETTER SPEECH DELIVERER TODAY.

SHE'S MUCH MORE COMFORTABLE IN HER SKIN, AND I THOUGHT SHE DID A GOOD JOB.

HAD WAS A WORKMAN-LIKE JOB, SHE HAD AFFORDABLE ISSUES AS HE TALKED ABOUT, WATER ISSUES SHE TALKED ABOUT THAT ARE PRETTY MUCH UNIVERSALLY GOOD ON, AND THEN SHE BOOK ENDED THE SPEECH WITH TWO TOPICS ABOUT CONFORMITY, WHICH IS CONFORMING THE STATE'S TAX CODE TO THE FEDERAL TAX CODE THAT WAS PASSED AND THE 123, THE EDUCATION INITIATIVE.

TED: BEFORE WE GET TO THE ISSUES, REAL QUICKLY, CHUCK, YOU HAVE BEEN DOWN THERE QUITE AWHILE.

WE'VE ALL SEEN IT.

WHEN DID THE OPENING REMARKS BY EITHER THE SENATE PRESIDENT OR THE SPEAKER OF THE HOUSE BECOME THEIR OWN STATE OF THE STATE MESSAGE.

PRESIDENT PETERSEN, HE GAVE A SPEECH.

>> HE DID.

HE'S TAKING THE TRUMP OPPORTUNITY THAT CREATES IN THIS NONCONFORMIST WORLD, DON'T EVER EXPECT THE SAME THING TO HAPPEN, AND HE DID IT LAST YEAR.

HE OPENED HIS REMARKS, WHICH YOU GUYS DIDN'T HAVE, BUT WITH AN OPEN-RANGE SHOT WHAT SHE WAS GOING TO TALK ABOUT.

WHEN IN ROME, DO AS THE ROMANS DO, I GUESS.

TED: KARL, ANYONE WANTING TO ELIMINATE SCHOOL CHOICE IS NOT GOING TO HAPPEN, AND MENTIONED BIDEN'S OPEN DOOR POLICY.

ALL OF THIS SETS THE STAGE FOR WHAT THE GOVERNOR COMES OUT AND SAYS WE NEED TO TONE DOWN THE RHETORIC.

>> REALLY DOES.

SHE KEEPS TRYING TO WATER DOWN THE SPEECH THAT THE GOVERNOR IS ABOUT TO DELIVER.

THAT'S THE ONE SHOT BEFORE THE SPEECH TO FRAME HER, WHICH IENG THEY DO A VERY GOOD JOB OF ANYWAY.

I THINK THE GOVERNOR VERY STRONG IN HER MESSAGE AND WHAT SHE WANTS TO ACCOMPLISH THIS SESSION.

TED: TALK ABOUT CONFORMITY.

TAX CONFORMITY, WHETHER THE STATE ADOPTS WHAT THE TRUMP TAX BILL IS, OR THE GOVERNOR WANTS SOMETHING IN BETWEEN WITH THE MIDDLE-CLASS TAX CUT PLAN.

>> THERE'S GOING TO BE A LOT OF HORSE TRADING AS WE KNOW DOWN THERE.

THIS FIRST PART OF THE MIDDLE-CLASS TAX PACKAGE IMPORTANT FOR THE EVERYDAY ARIZONAN FILING TAXES IN APRIL HERE.

SHE WANTS TO GET THROUGH THINGS NOW THAT WILL HELP PEOPLE ON THE AFFORDABILITY SIDE, MAKE SURE THEY CAN TAKE DEDUCTIONS, WHERE IT'S GOING TO BE HELPFUL AND ULTIMATELY HAVE TO GET INTO THE BRASS TACKS OF SOME OF THE -- I THINK THERE'S A $300 MILLION DEFICIT BETWEEN WHAT SHE WANTS AND WHAT THE REPUBLICANS WANT, SO I THINK SHE'S GOING TO TRY AND GET THE EASY STUFF OUT OF WAY FIRST, GET WINS THERE, AND HAVE TO NEGOTIATE THE REST.

TED: WHAT DO YOU MAKE OF IT?

>> WELL, REPUBLICANS HAVE A THREE-YEAR CONFORMITY PLAN THAT IS 440 MILLION.

SHE'S GOT 220 MILLION ON THE TABLE.

THE REALITY IS THAT THE LEGISLATURE IS GOING TO COME INTO SESSION ON WEDNESDAY.

HOLDING JOINT MEETINGS, THEY'RE GOING TO PASS THEIR BILL WHICH THEY HAVE ALL LINED UP.

PUT IT ON HER DESK, SHE'LL VETO IT.

THAT WILL BE THE BEGINNING OF THE NEGOTIATION THAT WE GO DOWN HERE.

THIS IS, AS WE WOULD RECALL, THE NO TAX ON TIPS, THE SENIOR CREDIT.

THERE'S ALSO THINGS SHE'S OBJECTING TO THAT ARE WEALTHY-ORIENTED TAX CUTS THAT SHE SAYS SHE'S NOT BUYING.

THAT WILL SET THE STAGE FOR HOW THEY'RE GOING TO PAY FOR THIS.

TED: TAX CORPORATIONS AND HIGH-INCOME EARNERS, THERE IS NO WAY TO GET AROUND THAT.

CAN THEY GET AROUND THAT?

>> REMAINS TO SEEN.

THE REPUBLICANS WANT THIS SET OF TAX CUTS THAT THEY'RE GOING TO REALLY HOLD HER FOOT AND FEET TO THE FIRE.

SHE'S GOT TO FIND A WAY AROUND THAT TO GET THE THREE OR FOUR THINGS TO HAPPEN UP-FRONT.

TED: WHEN YOU MENTION CORPORATIONS AND HIGH-INCOME EARNERS IS THAT A POLITICAL WINNER RIGHT NOW?

>> WELL, LOOK, THE POLITICAL WIN IS HOW ARIZONA IS GOING TO AFFORD TO LIVE.

THAT'S THE POLITICAL WIN IN ALL THIS.

THAT'S WHERE SHE STAYED IN MESSAGING THIS YEAR AND LAST SESSION, IN FACT.

THIS ARIZONA PROMISE IS ALL ABOUT HOW DO WE MAKE ARIZONA AND PEOPLE HAVE A LIFE, ALLOW PEOPLE TO HAVE A LIFE THEY CAN AFFORD.

HOUSING, AFFORD UTILITY BILLS, GROCERIES.

THAT'S WHERE SHE IS LEANING IN.

THAT'S THE STRATEGY.

>> WELL, THEY DON'T WANT TO GIVE HER A WIN, LET'S BE CLEAR ABOUT THAT.

THE TENSION THAT EXISTS BETWEEN THE AMOUNT THE TAX CUT THAT SHRINED UP TO CONFORM THE STATE'S TAX CODE, AND THE OPENING THAT PROP 123 HAS.

PROP 123, DEPENDING WHO YOU TALK TO IS BETWEEN 300 MILLION OR 425 MILLION, THAT COULD BE A POSITIVE INTO THE STATE'S GENERAL FUND.

THAT'S A BIG NUMBER, AND SHE'S GOING TO HAVE TO -- IF SHE WANTS THAT, SHE GOING TO HAVE TO ACCEDE TO DEMANDS ABOUT PUTTING THESE SCHOLARSHIP FUNDS INTO THE CONSTITUTION, BUT MAYBE THERE'S A TRADE-OFF THERE.

MAYBE YOU GET TRANSPARENCY ON THAT.

IF YOU DO THAT.

HAVING THAT MONEY IN YOUR POCKET IS THE GO HOME THING.

>> WE'VE ALREADY SEEN THAT THE REPUBLICANS DON'T WANT ANY TRANSPARENCY ON ESAs.

I'M NOT SURE WHERE THE NEGOTIATING POINT IS THERE BECAUSE THE GOVERNOR WANTS TO MAKE SURE THAT MONEY IS SPENT ON THE THINGS THEY SHOULD BE, INSTEAD OF THINGS WE'RE HEARING REPORTING IN OCCUR.

I'M NOT SURE OF THE LEVERAGE THERE.

TED: GUARDRAILS?

NOTHING AT ALL?

>> THE GOVERNOR WANTS TO SEE GUARDRAILS.

THERE ARE MEMBERS AT THE LEGISLATURE -- GINA SVOBODA, RUNNING FOR CONGRESS, GOT COMPLETELY SIDEWAYS WITH TURNING POINT AND MR.

HOFFMAN ON THIS VERY ISSUE BECAUSE SHE SAID THE OLD REAGAN LINE, WE SHOULD USE TAXPAYER MONEY WISELY, AND THAT GOT HER EXCOMMUNICATED.

THERE ARE REPUBLICANS DOWN THERE THAT SEE THE WISDOM OF SOME GUARDRAILS.

>> I WONDER IF THERE ARE ANY REPUBLICANS THAT LIKE GUARDRAILS ON ANYTHING.

LET'S SEE.

>> THE GOVERNOR USED THE REPUBLICAN LINE REGARDING MEDICARE, TIME TO TACKLE THE WASTE, FRAUD AND ABUSE.

WE GOT THAT, ACTUALLY MEDICAID.

TALK ABOUT THE DATA CENTERS, BECAUSE I THOUGHT THAT WAS INTERESTING.

MAKE THEM PAY THEIR FAIR SHARE FOR THE WATER THAT THEY USE.

>> SURE.

THERE'S BEEN A PROLIFERATION OF APPROVED DATA CENTERS HERE IN THE VALLEY.

I THINK THE CITY OF PHOENIX HAS OVER 35.

THE CITY OF MESA HAS OVER 15 THAT HAVE BEEN APPROVED.

THESE ARE LARGE WATER CONSUMPTION, AND SHE'S RIGHT TO ATTACK THAT ISSUE, AND MAYBE GET SOME REVENUE OFF OF THAT.

MY READ IS THE DATA CENTERS DON'T CARE.

THERE'S ALL THIS MONEY POURING IN, AND THEY DON'T CARE, BUT THE QUESTION IS DO MUNICIPALITIES CARE?

I THINK SOME MUNICIPALITIES, LIKE BUCKEYE AND OTHERS, WOULD LIKE TO HAVE A DATA CENTER OR TWO.

THE CITY OF PHOENIX DOESN'T WANT MORE DATA CENTERS.

MAYBE THE IDEA, SHE TALKED ABOUT A BILL TO ELIMINATE THE TAX BENEFIT TO THEM.

MAYBE MAKE THAT OPTION ALL FOR EACH COMMUNITY.

THEY WANT TO DO IT, LET THEM DO IT.

IF THEY DON'T WANT TO DO IT, DON'T DO IT.

>> THE REALITY IS DATA CENTERS ARE HERE TO STAY.

THEY'RE A HUGE ECONOMIC DRIVER FOR THE STATE.

CLEARLY THERE ARE CHALLENGES THAT THE GENERAL CONSUMER HAS WITH THEM WITH WATER AND POWER, BUT I THINK THAT'S WHAT THE LEGISLATURE CAN -- WHERE WE MIGHT FIND COMMON GROUND AND TRY AND ENACT LEGISLATION THAT'S GOING TO KEEP THE GROWTH OCCURRING, BUT MAKE SURE THAT WE'RE USING WATER RESPONSIBLY, AND THAT THEY'RE PAYING THEIR FAIR SHARE ON WATER AND ELECTRICITY.

TED: I MENTIONED MEDICARE AND MEDICAID, IT WAS ACA WHERE THEY MENTIONED WASTE, FRAUD AND ABUSE.

SHE MENTIONED TONE DOWN THE TEMPERATURE.

YOU CAN TONE DOWN THE TEMPERATURE IN THE ELECTION YEAR WHEN THE STATE SENATOR IS RUNNING FOR GOVERNOR?

>> CAN'T WE ALL JUST GET ALONG-TYPE STUFF?

NO.

THIS IS GOING TO BE A HOT SESSION.

LOT OF HOT TAKES.

LOT OF BITTERNESS.

EVERYBODY IN LEADERSHIP HOPEFULLY WILL DISCIPLINE THEMSELVES TO KEEPING THEIR EYE ON THE BALL.

YOU GOT TO HAVE SOMETHING DONE BY THE END OF JUNE.

MOST OF MY COLLEAGUES ARE SAYING NOT GOING TO GET STUFF DONE BY THE END OF THE JUNE.

SO THE RHETORIC IS OUT OF THE BOX AND GOING TO REFLECT WHAT WE'RE SEEING ACROSS THE COUNTRY.

>> I WOULD AGREE.

IT'S GOING TO BE VERY DIFFICULT GIVEN THE NATIONAL POLITICAL ENVIRONMENT.

IF BETTER ANGELS PREVAIL, WE'LL ALL BE VERY HAPPY AT THE END OF THE SESSION, BUT I SUSPECT IT'S GOING TO GET ROUGH-AND-TUMBLE BECAUSE THAT'S WHAT IT IS.

TED: WELL, REAL QUICKLY, BECAUSE WE'RE RUNNING OUT OF TIME.

START WITH YOU, WILL THE GOVERNOR COME OUT OF THIS SESSION LOOKING GOOD OR LOOKING NOT SO GOOD?

>> LOOK, AS LONG AS SHE STAYS ON THE AFFORDABILITY MESSAGE AND HER INITIATIVES THERE AND GETS THOSE WINS, THOSE GROUNDERS, THOSE DOUBLES.

AS LONG AS SHE GETS THOSE, SHE'S GOING TO COME OUT WELL.

YOU HAVE A CONTENTIOUS LEGISLATURE.

>> IT MAY NOT BE UP TO HER.

USED TO BE SAID ALL POLITICS IS LOCAL.

THAT'S NOT TRUE ANYMORE.

IF THE PRESIDENT WANTS TO INVADE THE STATE WITH I.C.E., ALL BETS ARE OFF.

TED: CHUCK COUGHLIN AND KARL GENTLES, THANK YOU.

>> THANK YOU.

TED: THAT'S IT FOR NOW.

I'M TED SIMONS.

THANK YOU SO MUCH FOR JOINING US.

YOU HAVE A GREAT EVENING.