Arizona faces a $1 billion deficit as the state Legislature opens the 2024 session

PHOENIX (AP) — A steep budget deficit caused by plummeting tax revenues and escalating school voucher costs will be top of mind as Democratic Gov. Katie Hobbs and the Republican-controlled Arizona Legislature return for a new session at the state Capitol. Hobbs and lawmakers are sscheduled to return Monday to the state Capitol for the new Legislative session that will begin with the annual State of the State address. Arizona had a budget surplus of $1.8 billion a year ago. It now has a shortfall of about $400 million for the current fiscal year and another $450 million shortfall the year after. Water also will be an issue for lawmakers amid long-term drought.