Curating an Affordable, Sustainable Arizona: Governor Hobbs’ Executive Budget Strengthens the Department of Economic Security's Impact

The Governor’s Fiscal Year (FY) 2027 Executive Budget marks a bold step toward strengthening Arizona’s economic foundation and enhancing services for individuals and families across the state. Through thoughtful investments in technology and essential programs, the budget reinforces the Department of Economic Security’s (DES) mission to strengthen individuals, families, and communities for a better quality of life.

Driving Modernization Through Technology

One of the core highlights of the FY2027 budget is a continued commitment to technology modernization within DES. The proposed $12.59 million investment will help transform aging systems into more responsive, secure, and user-friendly platforms. By modernizing critical infrastructure, DES will be better positioned to deliver streamlined digital services, reduce administrative burden, and improve the experience for both clients and staff.

Modernization efforts include:

• Upgrading outdated systems for greater stability and security
• Enhancing data integration across programs to improve case management and decision-making
• Expanding online self-service tools to improve customer experience

Supporting HR1 Implementation Efforts

Federal legislation referred to as H.R. 1 has introduced a significant adjustment to the federal/state matching relationship for the Supplemental Nutrition Assistance Program (SNAP). Where the federal government previously matched state investment dollar for dollar (50/50 match), states will now be required to cover 75% of the cost of administering SNAP. Furthermore, H.R.1 amended eligibility requirements and made other changes to the administration of SNAP. To support the implementation of these changes, the FY2027 budget allocates a $48.4 million investment, ensuring the continued viability and sustainability of this essential resource.

Investing in Child Care for Working Families

Recognizing that reliable child care is essential to Arizona’s economic success, the FY2027 budget continues to bolster the Child Care Assistance program by providing ongoing General Fund support of $44.8 million. New funding will allow families to maintain access to quality child care options, support high-quality child care providers, and promote child care affordability for working-class families. DES will also continue to provide access to care in quality learning environments for approximately 24,000 children while their parents work. These investments empower parents to participate in the workforce while ensuring children receive the care and early learning experiences they need to thrive.

Improving Health, Safety, and Quality of Life for Vulnerable Arizonans 

With membership growth and healthcare cost increases, a significant investment is necessary to deliver critical services to members of the Division of Developmental Disabilities (DDD). The Governor’s Executive Budget Recommendation acknowledges this need, and commits $128.1 million from the General Fund and $271.9 million Department Long Term Care System Fund expenditure authority to address member growth and expenses in Fiscal Year 2026, as well as an ongoing increase of $298.8 million from the General Fund and $673 million in Department Long Term Care System Fund expenditure authority in Fiscal Year 2027. This funding is critical to reimburse vendors for medically necessary services and empower individuals with developmental disabilities to lead self-directed, healthy, and meaningful lives.

Additionally, the Executive Budget allocates $11.5 million for Adult Protective Services (APS). This funding ensures that our teams are adequately staffed and equipped to investigate cases of abuse, neglect, and exploitation of vulnerable adults, thereby enhancing their safety. Sustaining APS's operations is vital for the health and well-being of at-risk individuals in Arizona.

Tackling the Rising Costs of Utilities with Power AZ

DES will assist in the administration of the utility assistance component of the Arizona Affordability Fund. With $15 million in one-time funding in FY 2026 and $15 million in ongoing funding for FY 2027, DES will expand eligibility for the Low Income Home Energy Assistance Program to 100% of the State Median Income, reaching more than 30,000 new households. Extreme weather, increased energy consumption, and higher energy rates have had a devastating impact on Arizona households, but the Governor’s Executive Budget hits those challenges head-on.

Breaking the Cycle of Recidivism

As specified in Executive Order 2025-08 and in collaboration with the Arizona Department of Corrections, Rehabilitation and Reentry (ADCRR,) DES will be able to continue our support of the bipartisan, national Reentry 2030 initiative to create pathways to work for justice-involved individuals and strengthen public safety. The Governor’s Executive Budget allocates $3 million to backfill federal funding and continue providing critical services to individuals ready to reenter the workforce and their communities. 

Building a More Connected, Efficient Future

Together, these initiatives represent more than budget allocations; they are investments aimed at making Arizona more affordable, preserving quality of life, and creating an efficient and effective government. 

For DES, these investments mean better service delivery, stronger partnerships, and a modern technological foundation that will serve Arizonans well into the future.

Michael