Arizona state agencies are seeking millions for employee raises, technology upgrades and restorations of recent cuts as a sluggish revenue outlook threatens to constrain the next state budget.
The Arizona Capitol Times reported that fiscal 2028 requests submitted in September range from workforce needs to major information technology projects. Agencies must file annual proposals with the governor, but the Office of Strategic Planning and Budgeting describes them only as the starting point for the executive budget.
Arizona Secretary of State Adrian Fontes’ request illustrates the scale. His office’s official filing lists $43.5 million in new funding issues, including $22 million to begin replacing the Arizona Voter Information Database and about $8.1 million for cybersecurity modernization. Election services account for nearly $39 million of the proposed increase.
Agencies are attempting to recover from reductions in the current budget. The fiscal 2027 General Fund budget totals about $18.37 billion and includes lump-sum cuts to numerous departments and boards, with reductions ranging from $13,300 at the Office of Economic Opportunity to $610,000 at the Attorney General’s Office. The enacted summary identifies cuts for agriculture, education and the governor’s budget office.
The requests arrive against an uneven revenue picture. Joint Legislative Budget Committee figures show July General Fund collections reached $1.35 billion, 7.3% above the previous July and roughly $47 million above forecast. Analysts cautioned, however, that the sales-tax surge far exceeded fiscal 2026 growth and could reflect technical issues. Corporate income tax collections were nearly flat and missed forecast by about $2 million.
The mixed numbers leave budget writers with competing demands. The governor’s office will vet the requests before issuing an executive proposal, and the Legislature will ultimately decide which raises, system replacements and restored cuts fit within available revenue.
