FOR IMMEDIATE RELEASE

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PHOENIX, June 19, 2024 - Yesterday, Governor Hobbs signed the budget approved by Arizona’s lawmakers, which decreases WIFA’s funding by nearly $500 million. Even in light of the State’s fiscal situation, this budget is remarkably short-sighted. The state chose to balance its budget largely on the back of its long-term water security.

There is a significant demand among Arizona’s water providers for augmented water – between 100,000 and 500,000 acre feet over the next 5-15 years. Yet, this budget eliminated $430 million from the Long-Term Augmentation Fund. Despite a clear need for water security solutions for rural Arizona, this budget also cuts $60 million from the only state funds set aside exclusively for water supply development projects in the rural communities who need it the most.

These cuts could not come at a worse time. Right now, WIFA is making tangible progress toward strategic investments in renewable, reliable water supplies for Arizona. Over the last two years, our Board has worked diligently to create a project development pathway to mitigate risk and encourage outside investment in long-term augmentation. Our competitive solicitation will allow WIFA to analyze projects in all respects: financial, environmental, social, political, and hydrological. We have engaged the market and learned there is significant demand from investors, project developers, and technology providers to join with Arizona in a water augmentation project. Today, the Long-Term Water Augmentation Committee convened to further refine the solicitation process and begin developing a purpose and need statement to guide this development pathway. WIFA has set itself up for success.

While WIFA is poised to navigate these deep funding cuts, there is only so much that it can do on its own to prove that Arizona is serious about securing the State’s water future. WIFA can ensure that we have an effective, competitive process for evaluating project proposals. WIFA can ensure that no project receives investment unless it provides benefits to each community, ecosystem, and economy that it touches. But WIFA cannot guarantee the existence of the resources necessary to make those projects successful. The current trend of draining funds from our long-term water investments to solve short-term problems calls into question WIFA’s possibility of success, no matter how strong our process.

We call upon policy makers to work with WIFA and identify a better path forward. Together, we can fulfill our mission to protect current and future Arizonans, the economy, and the environment of this State through a comprehensive water strategy.