Arizona governor declares protecting groundwater, tackling school voucher costs top priorities for 2024

Democratic governor of Arizona Katie Hobbs pledges to address the state's budget deficit, water shortage, and migrant influx as the state Legislature opens for 2024.

The state is facing a $400 million shortfall in this current budget year and another $450 million deficit in the coming year. Those numbers are mainly due to the skyrocketing costs of a 2022 expansion of the voucher program and a 2021 tax cut that took full effect last year and reduced incoming tax revenues by about 30% from July through November.

Budget analysts say the shortfall will likely grow when the state’s next revenue forecast is released later this month. Democrat lawmakers concede the tax cut won’t likely go away, but they want to overhaul the voucher program.