Arizona lawmakers slashed funding to Arizona’s water infrastructure agency in this year’s state budget, and Gov. Katie Hobbs won’t assure the authority publicly that the reductions are temporary.
Lawmakers had to make deep cuts this year to address a $1.4 billion deficit in the state budget.
The Water Infrastructure Finance Authority — known as WIFA — was hit hardest.
$333 million was held back from the authority and tens of millions of dollars were “swept” out of the agency’s budget. When asked if the cuts to WIFA are temporary, Hobbs didn’t commit to restoring the money.
“We were facing a really tough budget year and had to close an almost $2 billion gap. I continue to be committed to securing our water future including conservation and augmentation, and it's going to continue to be a focus down the road,” Hobbs said.
WIFA Director Chuck Podolak said, in private conversations WIFA has had with state leaders, they’ve heard that the cuts are intended to be temporary. But he wants to hear the governor and legislative leaders say so publicly.
Podolak added on KJZZ’s The Show that it’s hard to attract partners for water projects if it’s not clear there will be any funding from the state to make those projects happen.
In 2022, Republican Gov. Doug Ducey and lawmakers expanded WIFA’s powers and decided to give the authority $1 billion over the course of three years.
Almost immediately after the Legislature passed that plan, WIFA approved a resolution to begin discussions with an Israeli company called IDE Technologies, regarding building a desalination plant on the Sea of Cortez in Mexico.
Several lawmakers were upset by the quick action said at the time that it seemed like a deal had already been struck behind closed doors.
Then-House Speaker Rusty Bowers revealed that he’d signed a non-disclosure agreement not to discuss the IDE project, which added to the frustration.
Following that incident WIFA hasn’t moved forward with IDE.
In 2023, the new state officials held much of WIFA’s new funding back.
The authority is treading carefully, and they’re not accepting official proposals for big projects like desalination yet.
Podolak said the authority hopes to start soliciting those projects sometime this year and start getting responses at the beginning of next year. But he’s worried this year’s budget will be a deterrent.
Although WIFA doesn’t need the cash-on-hand for a big project like desalination now, the state’s reluctance to fund the agency could hurt WIFA’s chances with potential investors.
