Minutes. [cheering] thank you. Speaker, president peterson, members of the house and senate, attorney general, secretary, treasury, superintendent, inspector marsh, corporation commissioners, chief justice and members of the judiciary tribal leaders, governor brewer and honored guests and all arizonans, it is my honor to stand before you today at the opening of the second regular session of the 56th legislature. Here on land that will always be connected to the awesome key pulse of todays Salt River Maricopa Indian Community and the indian river community. What a year it has been. We have worked together, debated each other, pushed one another, and most importantly, put aside our differences when it mattered most to do whats right for arizona and the people who call it home. Now, i think we can all agree it certainly hasnt been easy, but our constituents didnt send us here to the capital to solve easy problems or take the easy way out. They are relying on us to ensure the economy works for middleclass families. That we are taking action on securing the border where the federal government has so clearly failed. [applause] that we continue creating good paying jobs for workingclass arizonans, that we help lower costs on everyday items, that our water future is secure. That our schools are safe and places of opportunity, that healthcare is accessible for those who need it and when they needed and that our rights and freedoms are protected. [applause] is a born and raised in arizona arizonaand, a social worker, mod sister of two Public School teachers, these are the reasons i wake up every day to fight on behalf of arizona. As we embark on this new year, one that will be filled with highs and lows, tough choices and compromise, it is my sincere hope we never lose sight of why our fellow arizonans bestowed the honor of representing them and why we must always strive for progress and for a better tomorrow. With that, im proud to share with you the progress we made in the past year on many of these key issues. And just as importantly, i look forward to outlining the work before us in the months ahead. The foundation of what we do as elected officials here in this capital is rooted in keeping arizona families safe. Thats why we cannot go forward without first addressing washingtons ongoing failure to secure our southern border. A failure decades in the making under both democratic and republican administrations. When my fellow arizonans gave me the honor of this office, i pledged to not play the same old political games that created this crisis and that have continually heard communities, families and our state. No one understands the misguided efforts of the past more than our neighbors, sheriffs, Small Business owners and local Law Enforcement neo work every day to offer solutions where the federal government has failed. One needs to look no further than the decision to close the port of entry which did nothing to actually solve our Immigration Crisis but did hurt businesses and families. My administration worked tirelessly to reverse the shortsighted action by the federal government and took extraordinary steps including sending the National Guard to the border to bring security and common sense to the situation. [applause] day in and day out i hear from leaders on the border who need support because they are stepping up for where the federal government cant or wont. This year they asked for boots on the ground, improved communication systems, resources to combat Human Trafficking and the latest technology to keep communities on both sides of the border safe. And i delivered by refusing to waste money on cheap political funds be awarded over 84 million to help manage the influx. [applause] so we must do more. Thats why i launched operation secure, creating a Border Coordination Office within the Arizona Department of homeland security. This session by seeking ongoing funding to better coordinate our Border Response and continue fighting the humanitarian economic and enforcement crisis. At this funding will expand the operation with critical investments in Border Security as well as resources to intercept the flow of fentanyl. Every arizonans should know we are taking significant and meaningful steps to keep them safe even when the federal government refuses to. [applause] these investments will strengthen Law Enforcement efforts, raise awareness through an Education Campaign and expand Harm Reduction and Treatment Services particularly in rural areas. Together, let us continue to find Real Solutions to support Law Enforcement, First Responders and Community Leaders who are on the front lines of this issue and push washington to do its job to secure our border. [applause] and just as i will continue to hold the federal government accountable for their responsibilities, we must also fulfill our duty to the state. We face in approximately 850 million shortfall between this fisca the next. And make no mistake it will take all of us working together to solve the gap without harming arizonans. To all those who call the state home, let me share this message. We will not shirk our responsibilities or kick the can down the road for our children and the next generation to solve. And we will not cut spending on vital services. [applause] to those in the chamber today, the people of arizona are counting on us, and we will not let them down. Let us find Common Ground, focus on Real Solutions and strengthen our states balance sheet. You will see the details on how i plan to address the gap when my budget is released later this week. We will rain and wasteful spending without sacrificing Public Safety and Public Education. We will establish guardrails on unaccountable programs without hurting hardworking families. [applause] and we will tighten our collective belts to increase efficiencies and innovation without gutting the programs that support Small Businesses, seniors and those in need. [applause] i look forward to working with leadership and members from both sides of the aisle in the months ahead to get the job done. Despite our budget issues, we have much to be proud of in our amazing state. Nowhere is it more apparent that the state of our states spending down the unprecedented strength of arizonas job market and the record investments in our economy. Let us celebrate that today more arizonans are an employee to that at any point in our states history. [applause] this milestone is a testament to the hard work and commitment of our entrepreneurs and innovators, our Community Colleges, universities, tradespeople and of so many who recognize the promise of arizona. Just as impressively, our state has attracted 32 billion in foreign investment. More than california, texas or any other state in the nation. That 32 billion means jobs, jobs and more jobs for working people in arizona. [applause] we created over 56,000 jobs in 2023. And we are just getting started. Arizona leads the way in attracting the hightech advanced manufacturing businesses that are building the nations future. Im proud to say these achievements were possible because of the partnerships between the public and private sectors. We should applaud the chambers of commerce and Economic Development groups across the state and most particularly the Arizona Commerce Authority for their tireless efforts to attract new, highquality jobs. Jobs that can be life changing for families and transformational for communities. With this continued success, theres no question we must pass continuation of the Arizona Commerce Authority. [applause] as i said, we are just getting started. So now is not the time to rest. It is critical that all of us continue to Work Together. Just as we did win a Bipartisan Coalition of house and Senate Members came together to pass both last years budget and put a proper 400 extension on the ballot. [applause] rather than letting partisan politics prevail, we stood together, helped ensure the continued success of our state and enabled more arizona families to prosper. Thats the power of finding Common Ground and doing whats best for the people of the state. And make no mistake, i will always put the people of arizona first. [applause] thats why ive taken action to ensure the strengthening economy provides opportunities for any arizonan who wants to succeed. With our investment in the workforce accelerator, we will prepare thousands of arizonans every year for jobs building the nations future in Industries Like semi conductors, Renewable Energy and aerospace and defense. And the Apprenticeship Initiative aims to double the number of apprentices and construction at the trade to meet the needs of our 21st century economy. Its these programs along with a strong Higher Education system and access to childcare that will ensure more arizonans have the ability to get a good job that supports themselves and their families. [applause] and we will continue the success by building the infrastructure and deploying the technology needed to expand highspeed Internet Access to every Community Across the state with the nearly 1 billion arizona will receive. Highspeed internet is crucial for businesses, healthcare and education, particularly for our rural and tribal communities who are on the front lines of the rapidly achieving economy. We must have a fast reliable Broadband Access for every arizonan, no matter where they live. [applause] as you can see the states economy is strong and its opportunities are abundant. However we cannot ignore the fact that for arizonans across all age, color and geographical boundaries, the Housing Affordability crisis has erased feelings of prosperity for too many. I personally felt the fear and uncertainty of not knowing how youre going to make your next mortgage payment. Thats why i will always fight just as hard for your family as they fought for mine and i will never stop working to find solutions to the Housing Affordability crisis. [applause] this past year i worked with many of you here the legislature to find new and effective ways to address this issue. We directed 150 million to keep more arizonans housed through rental assistance programs. [applause] we allocated money to provide legal aid for up to 1 million more arizonans who are facing eviction or housing instability. And we made historic investments to create more housing thats actually affordable for middleclass families. [applause] further, we accelerated the awarding of low Income Housing tax credits that enabled the Arizona Department of housing to maximize the building of Affordable Housing across the state. This particular effort led directly to 15 new Affordable Housing developments. Half of which are in Rural Communities. [applause] this builds more than 1,000 Housing Units for workingclass families who need them. [applause] these actions should only be the first of many we take to help ensure longtime residents, Young Professionals and middleclass arizonans are protected from being priced out of the communities and states they love. I was born and raised in an arizona where a middleclass family could buy their own home. And that should be the reality for the next generation. But to make it so, we must take action. Thats why today i am announcing the arizona is Home Mortgage assistance program. [applause] this program will help workingclass families throughout the state with a down thedown payment assistance and Mortgage Interest Rate relief. That means a family of four living in phoenix making up to 75,000 a year will have the opportunity to purchase a quality affordable home. [applause] and we will enhance homebuyers for the states Rural Communities by providing access to less costly loans to workingclass households. [applause] these are good tangible steps to creating access at affordable prices, but they alone will not solve the crisis across the state. I look forward to working with any member of the legislature to play innovative and Effective Solutions to help arizonans access the homes they and their loved ones need to thrive. Of course to discuss arizonas future, we must also talk about water, how to protect what we have today, how to navigate the challenges ahead and how to maximize opportunities when Mother Nature offers them. Thanks to the careful planning and bipartisanship of generations of leaders before us, arizona is at the forefront of Water Conservation and innovation. Our state uses less water today than in the mid1950s, even as our population has moved. However, just because weve been successful in the past does not mean we can relax about the future. We can reject but we must have honest conversations about our Water Resources, not shy away because they can be difficult. [applause] is the first year of my administration has shown, i will take action to protect arizonas water future. [applause] before this chamber last year, i highlighted a corporation pumping groundwater with essentially no oversight. After i sent investigators and found that they were in violation of their lease, i ended it. [applause] and as of next month, all leases held by this entity will be terminated protecting water from nearby communities. [applause] i will continue working with everybody, farmers and agricultural interests, urban and Rural Communities, local and regional entities, to find the solutions we need to ensure the water future is secure for tomorrow and for generations. There is no better example of this than the agreement i negotiated earlier this year with our neighbors to conserve enough for 9 million homes by 2026. [applause] with this historic agreement, we store up to the federal governments agree just plan to the water and safeguarded our natural resources. But this is only a starting point. We have not put the decades long drought in the Rearview Mirror again. We must always strive to do more to expand publicprivate partnerships, increasing conservation, exploring new technologies, and maintaining a steadfast commitment to strengthening protections where needed. [applause] the council i created last year comprised of water from across the state with a wide range of experience has embodied the spirit with a series of common sense recommendations to secure the waters future. For decades, the rural arizonans who demanded in default to fougo protect the groundwater have been ignored. Now after 40 years of waiting, its time we finally take action and update our groundwater management laws. [applause] thats why we must have the courage to take action where others havent and and empower them to have a say in how their water is used. For too long weve allowed the development that skirted our smart and common sense consumer protection. We must close the loophole that allows those developments. [applause] our water gives families and businesses the confidence to invest in our state and we cannot continue to let individuals and corporations exploit these loopholes and rob us of our water future. We all recognize that our state is growing and we must continue to adopt while maintaining hourlong Health Status as a National Leader in water management. The water standards are the key to our strong economy. I refuse to sacrifice them for unchecked growth but i will continue the bipartisan tradition of growing our economy while protecting the states most precious resource. In that vein ive directed the Arizona Department of Water Resources to finalize a new pathway for water providers and communities who historically relied on the groundWater Resources. At this new alternative designation of the Resources Program will provide an opportunity for the assured insuredwater supply by contribuw water sources and for the groundwater pumping which will help ensure the future growth is both smart and sustainable. [applause] [cheering] us remember that water and drought do not care about Party Registration or job titles or whether you live in a rural or urban community. We only protect the water supply by working together. I stand ready to work with you to pass legislation that makes the changes we need today all to safeguard arizonas water for tomorrow. To those of you c