Arizona Gov. Hobbs launches efficiency initiative aimed at saving state $100 million

PHOENIX — Arizona Gov. Katie Hobbs unveiled a sweeping government efficiency plan she says will save the state up to $100 million by consolidating purchasing power, streamlining operations and deploying artificial intelligence across state agencies.

The Arizona Capacity and Efficiency Initiative, or ACE, will be led by Amy Edwards Holmes, a former U.S. Treasury Department official and past executive director of the Bloomberg Center for Government Excellence at Johns Hopkins University.

Holmes previously oversaw federal financial operations at the Treasury Department and led implementation of the DATA Act, the nation’s first open data law, according to the Governor’s Office. She also served as director of the Task Force on Government Performance for the U.S. Senate Budget Committee.

“Arizona families make daily sacrifices to stretch every dollar. The state government must do the same,” Hobbs said in a statement. “Every dollar lost to redundant contracts or technology is a dollar taken away from schools, roads, public safety and, ultimately, Arizona families.”

The Arizona Capacity and Efficiency agenda

The initiative, which Hobbs previewed in her State of the State address, centers on three priorities: securing bulk discounts through consolidated state purchasing, standardizing administrative services to eliminate costly overlap and adopting AI and emerging technologies to boost workforce productivity.

The plan includes an Arizona Efficiency Challenge inviting state employees to submit cost saving ideas, as well as a new Innovation Hub designed to ensure technology investments deliver measurable returns.

“We will not slash and burn with stunts that do more harm than good,” Hobbs said during her address, in an apparent dig at the controversial Department of Government Efficiency (DOGE), which has led to federal job cuts in Arizona. “We will not decimate important services that families and businesses rely on. We will streamline, consolidate and cut costs to make government work for our people.”

Related

Gov. Hobbs highlights affordability, education, water security in 2026 State of the State addressRead full transcript of Arizona Gov. Katie Hobbs' 2026 State of the State addressAZ Political Podcast: Analyst breaks down Arizona’s post-primary general election mapArizona’s primary election was like ‘rehearsal for the Super Bowl,’ Maricopa County supervisor saysWarren Petersen vows ‘180-degree shift’ in Attorney General’s Office if he beats Kris MayesAndy Biggs Q&A: Stances on affordability, water, other key issues ahead of 2026 governor’s race