By Arizona Capitol Times
Key Points:
- State agencies submitted budget requests for fiscal year 2027
- Requests include salary increases, new task forces, advertising campaigns and more
- Hobbs has already warned agencies it will be a challenging budget year
Arizona’s state agencies have submitted their budget requests for fiscal year 2027 to Gov. Katie Hobbs, kicking off next year’s spending process.
State agencies are asking the governor and Legislature to bankroll an array of new initiatives. Those include salary increases for state employees, a Human Trafficking Task Force, gambling prevention measures, advertising campaigns and more.
But the FY2027 budget process has been complicated by federal spending and tax cuts enacted by President Donald Trump’s “Big Beautiful Bill” and the depletion of federal Covid recovery dollars. The Governor’s Office urged agencies in July to cap requests from the state’s general fund at no more than a 2% increase from what they were appropriated from the general fund in the FY2026 budget.
