(The Center Square) – Arizona Gov. Katie Hobbs laid out her goals for the new legislative session during her State of the State address on Monday afternoon as she faces a larger Republican majority.
The governor focused primarily on housing, border policy and water, among other issues.
“Our cost of living is too high. People are working harder and struggling more. Our freedoms are under attack. Our sense of security has faltered,” she said, touting the state’s “Arizona is Home” program, which provides governmental help for down payments and mortgage rates in some circumstances, according to the state Department of Housing.
Specifically, she took aim at short-term rental homes.
“Second, let’s address the proliferation of vacation rentals owned by out-of-state corporations looking for a quick buck. These housing speculators are buying up properties and turning family homes into party houses, making housing less affordable in the process,” Hobbs said.
“Party houses are causing chaos in our communities. We must end the top-down government mandate that denies our neighborhoods a voice. Arizonans want family homes, not party houses,” she added.
In addition, the governor took aim at the universal Empowerment Scholarship Account program, which continues to grow its number of students after it became law in 2022.
“The solution is simple: Institute responsible income caps. Ensure taxpayers know where their money is going, and create real accountability for taxpayer dollars,” she said of the program she called “rife with exploitation.” Prior to Hobbs’ speech, Senate President Warren Petersen vowed to “protect parental choice” when referencing education in Arizona.
On the border, she noted that Arizona National Guard troops remain at the border and there are efforts to “stop the flow of dangerous drugs.” Immigration and border security issues will likely be at the forefront with the incoming Trump administration, where Hobbs is likely to be at odds with the White House when it comes to proposed mass deportations.
While there could be some key points of compromise throughout the session, the governor could have a tough road ahead on some issues.
Republicans gained two seats the House and one seat in the Senate following nationwide favorable trends toward the party in November, including at the presidential and congressional levels. This brings the divide to 33-27 in the 60 member House and 17-13 in the 30 member Senate.
The Democrat holds the veto record in the state, with 216 bills shot down by her since taking office in 2023, according to the Phoenix New Times.
She is expected to launch her budget proposals in the coming days, which have been dubbed as “dead on arrival” by Republicans in past years – even though a deal was reached by both parties after months of negotiating in 2023 and 2024 to keep the government funded before the new fiscal year began on July 1.
House Speaker Steve Montenegro is expected to provide a response to Hobbs’ remarks over video.
