Arizona’s 2027 budget eliminates millions in education funding, state universities included

Arizona Gov. Katie Hobbs signed the state’s $18.29 billion budget, which removes millions in education funding for Arizona colleges and high school programs in fiscal year 2027.

The budget cuts $16.3 million from state universities, with Arizona State University losing $8 million, Northern Arizona University losing $2.6 million and University of Arizona losing $5.7 million.

Rich Nickel, president and CEO of Education Forward Arizona, said without the additional funding used for operational support, the universities will have to backfill that money by potentially raising tuition or fees.

“This pattern of de-investing in our public universities is making it harder and harder for them to provide this massive service that they provide each year to our state,” Nickel said. “They are one of, if not the most important engine, of talent development and creation, research, innovation, economic growth.”

The budget also did not renew several one-time investments from fiscal year 2026 into career development programs, including $1.5 million into dual enrollment, $16 million into the Arizona Promise Program, which helps low-income students afford college, and $2 million into the Adult Education Workforce Program.

Nickel said it would be hard for lawmakers to find another way to fund the programs, leaving students without opportunities that could lead to economic growth.

“Research has shown over and over if students do enroll in dual enrollment classes, it increases their chances of graduating from high school, of course, but also increases their chances of them being successful in post-secondary education. … So, it’s hard to understand why what is really a rounding error in the budget of $1.5 million would not be extended to help more students take advantage of a program that’s so effective,” Nickel said.

The budget also did not include the renewal of Proposition 123, which would increase the amount of funding into public education by $300 million. Lawmakers have criticized the decision, with Hobbs saying earlier this month that she will continue to fight for Prop 123.

The budget does fund free school meals, $37 million for low-income school funding and $183.3 million for school facilities.

Funding for this journalism is made possible by the Arizona Local News Foundation.

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