Children’s Action Alliance (CAA) is committed to making Arizona a state where all children and families thrive.
Our 2025 Legislative Agenda focuses on:
Health Care: Protect access to AHCCCS and KidsCare and preventative health services
Child Care: Growing access to affordable, high-quality child care and early learning
Family Supports: Economic supports to prevent family crisis
Foster Care: Less children in congregate care and more support for youth transitioning out of foster care and for kinship caregivers who step in to provide care for children when they need it most
Click here to learn more about CAA's priorities to create an Arizona where all children and families thrive.
Looking to Arizona's Next State Budget
On January 13, 2025, a new Arizona legislature will be sworn in and begin forming the 2026 state budget. Today’s budget outlook is significantly different from what legislators faced last January. Then, the state faced an $835 million deficit for the budget year that was already halfway over, with an additional $879 million deficit for the 2025 budget year. The Finance Advisory Committee recommended legislators identify $2.2 billion in solutions to re-balance the budget. In contrast, reports are already surfacing that today the state has a budget surplus for Fiscal Year 2026: the beginning balance was $324 million above what was originally expected, and, through the end of October, revenues are $235 million above what was anticipated in the budget.
Does this mean that the legislature has more than half a billion dollars to spend? Not exactly. There are key realities that advocates and legislators need to keep in mind when looking at budget priorities.
Current budget projections exclude spending that will eventually be added back in. State law requires the legislature to not only adopt a balanced budget for the upcoming year but to also estimate revenues and expenditures for the two years that follow. Arizona’s legislature has traditionally treated some spending that should be funded every year as one time – these “ongoing one-time issues” are funded in the budget being adopted but are not included in out-year projections. The largest of these funds that are vital on an ongoing basis are the K-12 building renewal grants and the state employee health insurance trust fund, totaling more than $323 million. Had just these two issues been treated as ongoing in the forecast, the three-year budget would not have been balanced.
Some of the steps taken to balance last year’s budget will be reversed at a cost to the General Fund in the future. Most of these reversals will not occur in the 2026 budget, but they will impact future spending. These include:
$37 million for the K-12 poverty weight and $29 million for K-12 additional assistance, both of which were recategorized as one-time in the current budget but with the intent that they be returned to ongoing in budget year 2028. These funds invest in additional supports and resources so all students can thrive and be successful in school and their future.
$200 million to reverse the temporary use of other funds in the Department of Juvenile Corrections, the Department of Corrections, and AHCCCS.
$2.9 million to replace the temporarily increased deposits into the General Fund from the regulatory boards. Many Arizona regulatory boards, such as the medical board and board of psychology examiners, deposit 10 percent of their revenues into the state’s General Fund and retain the remaining 90 percent for their operations. The legislature changed the distribution to the General Fund to 15 percent through budget year 2028, bringing an additional $2.9 million a year into the General Fund.
Some priorities that were unfunded or underfunded should be revisited. These include:
Child care assistance for families who can’t afford to work without affordable care. While the current budget included $12 million in increased funding, it was not enough to avoid the creation of a waiting list for low-income families in August 2024. Child care assistance not only helps families pay for quality child care but also helps employers by reducing the absences parents might have when other options fail. In the 2024 legislative session, $100 million in funding was sought to avoid placing families on a waiting list.
Financial support for informal kinship families. When children cannot live with their own parent(s), a grandparent or other relative is often the next best place for them. Children who are taken into Department of Child Safety custody and are placed with relatives through the court system are eligible for assistance of $204 a month for the first child and $71 for each additional child. Informal kinship families where the grandparent or other relative took the child in without the Department of Child Safety being involved also used to receive assistance – called “child only” payments – however, that part of the program was eliminated during the Great Recession and never restored. In these times of rising costs, restoration of this support for grandparents and kin is more important than ever.
Teachers Academy to grow new teachers. The teachers academy has provided more than 1,000 teachers a year since 2021. This program provides free tuition for students who agree to teach in an Arizona public school. For budget year 2025, funding was cut from $30 million to $16 million.
Promise Scholarships to make college affordable for eligible students with financial need. This program provides financial aid to Arizona high school graduates who meet the eligibility requirements for Pell Grants, making in-state higher education accessible for students who might not otherwise be able to afford it. The funding was cut from $40 million to $20 million. In addition, although the budget bills established a community college promise fund, no monies were appropriated for that fund.
Community college pathways for learning and job skill development. The budget continues to suspend the operating budget funding formula for Maricopa and Pima community colleges, and it suspends inflationary adjustments for STEM and workforce programs for all community colleges.
What caused last year’s budget problems? While the solutions to resolve last year’s budget problems were primarily spending cuts, the problem was caused by revenues that fell short of projections. This was not due to a softening of the state’s economy. Instead, while Arizona’s economy was strong, revenues failed to reach needed levels due to the final phase-in of the flat income tax, which reduced state revenues by more than $2 billion.
Bottom Line. While on the surface, Arizona’s budget picture appears much rosier than it did a year ago, there are critical ongoing expenditures masked as “one-time” investments as well as reversals of temporary shifts that must be taken into account for a true understanding of Arizona’s fiscal standing. Legislators and advocates need to remember that the steps taken to balance the budget, whether by changes in terminology or actual cuts, will have impacts several years into the future.
Policy Solutions Can and Should Prevent Hunger and Homelessness Among Children and Youth
Every year, National Hunger and Homelessness Awareness Week is recognized intentionally right before Thanksgiving as an opportunity to bring attention to those who do not have a place to call home or know when their next meal will be.
At Children’s Action Alliance (CAA), bringing awareness to the impact of homelessness and food insecurity on children and youth in Arizona is an important part of advocating for solutions that work.
Food Insecurity in Arizona
Source: Feeding America
‘Food insecurity’ is an official term from the United States Department of Agriculture. Food insecurity is when people do not have enough to eat and do not know where their next meal will come from. Food insecurity affects more than 13 million U.S. children. In Arizona, one in five children are food insecure. Food insecurity is correlated with long-term damage to children’s health and academic success. By kindergarten, food-insecure children are often cognitively, emotionally, and physically behind their food-secure peers. This shows the need for continued awareness for these families who are experiencing difficult times so Arizona can promote growth, development, learning, and overall health, especially for Arizona’s most vulnerable children.
Rising Cost of Food
Consider how the rising price of food impacts families. The national average price of a dozen eggs was $1.53 in March 2020 before pandemic impacts took hold. In August 2024, the average cost of a dozen eggs was $3.82. For one pound of ground chuck beef during this same period, the price rose from $4.11 per pound to $5.64. The rising cost of food significantly impacts children by increasing the risk of food insecurity, particularly for low-income families, as higher prices can force parents to reduce the quantity or quality of food they can provide.
Average Price of Select Goods from October 2004 to October 2024
In Arizona, the number of children receiving free or reduced-price school meals has increased from 52% in 2022 to 58% in 2023. From January 2023 until June 2024, Arizona used $6.75 million federal dollars from the American Rescue Plan Act to waive the reduced-price fee for school meals through the 2023-2024 school year. This investment in children and families provided about 12 million school meals to families. With the expiration of the federal funding, Arizona's fiscal year 2025 budget had a major win in addressing child hunger with an appropriation of $3.8 million in one-time funding to continue investing in school meals for students with low incomes attending public and charter schools. However, advocacy will be needed again in the next legislative session as this was only a one-time appropriation. Continuing to increase access to, strengthen, and invest in school meals will further support and improve a child’s health and well-being.
Housing Obstacle for Arizona Families: Evictions are Rising
Hunger and homelessness are intricately linked, profoundly impacting the health and education outcomes of children and families. 57% of children in low-income households also experience high housing costs in Arizona. Increasing housing costs increase the risk of eviction and homelessness because of the barriers to securing stable housing. The Maricopa County Justice Court recently reported that 7,537 households in Maricopa County alone faced eviction proceedings in their court in September. The last time the number of eviction proceedings was this high in September was more than twenty years ago. Housing instability is associated with stress and trauma consequences to families, and children who have experienced multiple moves or homelessness are more likely to develop various health conditions, including mental health illnesses, respiratory conditions, and infections.
Maricopa County is Seeing the Most Evictions Filed Since 2006
Youth, and Especially Youth Who Have Experienced Foster Care, are at Risk for Homelessness
In addition to rising housing costs, other barriers include limited availability of affordable housing, landlord rejection of housing vouchers, and economic disparities that disproportionately impact certain populations, including youth.
Youth who have experienced foster care are at a high risk of homelessness. In its budget proposal to be decided in the next legislative session, the Arizona Department of Child Safety proposes reducing this risk for youth transitioning to adulthood through an ongoing investment of $434,000 to continue providing stable housing and proper placement to vulnerable youth who are aging out of the foster care system. This investment is important as it aims to increase transitional housing capacity by almost 80%, which reduces the risk of homelessness for young people.
Housing Instability Impacts a Child’s Ability to Thrive
Homelessness, along with food insecurity, is a social determinant of health, according to the World Health Organization - meaning it is an external factor beyond an individual's control that impacts their overall well-being. When children lack a safe place to live or sufficient food to eat, both their physical and mental health are compromised. In 2023, the Arizona Department of Education assessed the impact of homelessness on children's lives, finding that students who are experiencing homelessness experience significantly higher rates of developmental delays, emotional challenges, and academic struggles compared to their housed peers.
Educational Outcomes of Students Who are Homeless vs. Housed in Arizona (SY2022-2023)
During the 2022-2023 school year, assessment data shows a significant difference in educational outcomes between children and youth experiencing homelessness and housed children. For instance, only 15% of children and youth experiencing homelessness met proficiency standards in English, compared to 30% of all students. Math proficiency was even lower, with just 10% of impacted students meeting expectations, contrasted with 22% statewide. Children experiencing homelessness also faced high dropout rates of 13.4%, and 45% were chronically absent.
Solutions to Homelessness Must Address Disparities
These disparities are also more pronounced among communities of color and LGBTQ+ youth, who are overrepresented in populations that experience homelessness. In the 2022-2023 school year, Black students represented 5.6% of all enrollees, but 13.8% of those who have experienced homelessness, and Native American students made up 4.2% of overall enrolled students, but 11% are impacted by homelessness. LGBTQ+ youth are also overrepresented among young people experiencing homelessness and housing instability, as homelessness often stems from family conflict and discrimination, exposing them to greater mental health risks and safety concerns.
Bringing Awareness to Action
Ending child food insecurity and homelessness must be a national and local health and education priority. The long-lasting negative outcomes of child food insecurity and homelessness translate to not just poor health but also to poor academic and economic outcomes.
Well That's Scary- Child Care Crisis in Arizona
Research shows that it now costs more than $300,000 to raise a child from birth to age 18. It is no surprise that the cost of child care is a large part of those expenses, where, nationally, it costs $1,188 per month for center-based care for one child. In Arizona specifically, 61% of children under five have all available parents in the workforce. For dual-income households, roughly 13% of their income is dedicated to child care. The portion of income is much higher for single-income households, with over 36% of their income going to child care. This disproportionally impacts women, as 76.5% of single-parent households in Arizona were women in 2022.
State Funding: A Small Treat, But More Investment Is Needed
Child care has lacked sustainable funding streams, which has impacted both access to and quality of care for children. The federal Child Care & Development Block Grant (CCDBG) is the primary federal grant program that allows states to provide child care assistance to low-income working families with children. In Arizona, 31% of children aged six and under are income-eligible for child care assistance, based on federal rules, on average each month. However, 88% of income-eligible children are left with no access to child care assistance due to insufficient funding.
Child Care Assistance: Eligibility Vs. Accessibility
Here in Arizona, First Things First is the state’s only public funding source dedicated exclusively to early childhood, which includes child care solutions. The primary source of this funding is through a tax on tobacco products, yet tobacco revenue has been declining.
When it comes to state contributions, Governor Hobbs and the legislature delivered $12 million from the General Fund for child care assistance, which boosts family access and affordability, as well as network stabilization. This funding is an important milestone because it is the first General Fund allocation for child care services in more than a decade. However, the amount is significantly less than advocates identified as necessary and is only a one-time funding allocation. As a result, shortly after the passage of the state budget, the Department of Economic Security (DES) reinstated the child care waiting list on August 1, 2024. This waiting list is statutorily required when the demand for child care subsidies exceeds the available funding.
The Impact of the Waiting List: A True Horror Story
While there are a handful of exceptions for families that are not shut out by the child care assistance waiting list, such as families that are currently getting child care assistance, families who are referred for child care assistance from the Jobs program, and families who are referred from the Arizona Department of Child Safety or Tribal Child Welfare to DES for child care assistance; there are currently so many other families that need help with affording child care, but they are unable to get it.
In fact, DES estimates that about 5,200 children will be impacted by the reinstatement of the waiting list each month. This is not just bad news for families, as the waiting list also takes a toll on providers. Currently, there are over 22,000 children being cared for by a licensed provider. With the implementation of the waiting list, some local jurisdictions are assessing how this will affect children and families in their region. Pima County estimates that there will be a reduction of 1,959 child care subsidies and First Things First scholarships in their county. There is currently no solution on the horizon as the DES General Fund request includes an important investment of $57.7 million for FY 2026 to increase provider rates in Arizona to comply with federal requirements, but the request does not include funding to eliminate the waiting list.
Carving Out Priorities
Access to high-quality child care and early learning programs promotes positive outcomes for Arizona families while supporting children’s healthy development. Accessible child care allows parents to remain in the workforce and child care creates a strong foundation for a child’s future. However, the price and access to child care have presented challenges to Arizona’s hard-working families. Children’s Action Alliance, alongside partners throughout Arizona, continues to call on policymakers to prioritize accessibility, affordability, and equity by investing in child care for Arizona’s children and families.
All Arizonans Need Paid Family Medical Leave
Paid family medical leave is a policy that serves children, families, and our economy. The Center for Law and Social Policy has released a new report that shares data surrounding the impact of paid family medical leave across the nation.
Hundreds of thousands of Arizonans need paid leave, but there is no established state paid family and medical leave program. Paid leave can be used to care for a new child, to heal from a serious illness, or to care for a loved one facing health challenges. When paid leave is not available, Arizonans often take an economic loss to care for themselves or a child or family member. In 2020, 35.3% of Arizonans took unpaid leave to care for a new child, with many also taking unpaid leave to care for their own health (29.4%) and to be a family caregiver (25.4%).
Many may wonder – why is this a children's issue? Because, as the report notes, paid leave supports:
improved health outcomes;
improved infant and toddler development;
better maternal mental and physical health;
reduced infant mortality; and
household economic security following the birth of a child.
Children’s Action Alliance advocates for paid family medical leave in Arizona and in federal policy because it is an important benefit that results in healthier families.
Read the report to see the impact on Arizona and become a part of the advocacy for paid family medical leave.
Welcoming Kyrstyn Paulat: Director of Early Learning and Education
We are thrilled to announce the newest addition to our team, Kyrstyn Paulat, who will serve as the Director of Early Learning and Education at Children's Action Alliance!
Kyrstyn has always had a passion for education policy, which stemmed from her mother's experience as a public school teacher in Arizona. This led to Kyrstyn pursuing opportunities in education policy, which included her graduate program, where she concentrated on education funding in her capstone project, and a full-time immersion internship at the Arizona State Legislature, where she was a policy intern for the Education and Appropriations Committees.
After receiving her master's degree, Kyrstyn spent the next eight years at Public Consulting Group, where she focused on optimizing federal Medicaid reimbursement for school districts to help children in various states, including Arizona. Kyrstyn worked closely with state Medicaid agencies and school districts on program administration, compliance, and policy changes.
Kyrstyn has a Bachelor of Arts in Justice Studies and a Master of Public Administration degree from Arizona State University, as well as a Certificate in Strategic Transformation and Innovation from Stanford University.
Please join us in welcoming Kyrstyn to our team! She will lead our policy work in areas including child care, early learning, K-12 education, and related family supports that help children, caregivers, and parents thrive. We look forward to working alongside her to advance policy for Arizona's children and families!
Thank you, Kinship Caregivers!
It’s Kinship Caregiver Month, a time to especially honor those who step in to care for children when they need them most. In addition to our applause, let’s also give them policies that support the success of their families.
This year, The Annie E. Casey Foundation has shared information from a new survey of state policies. The report notes that 50% or more of children in foster care were in kinship placements in Arizona, Hawaii, and West Virginia. That makes Arizona one of the top three states in the country for kinship care placement. This is an important advancement for children and families in Arizona.
Our state now has the opportunity and responsibility to keep moving forward in our support of kinship caregivers.
We agree with the report that there are many ways to create equitable support for caregivers, primarily through these three actions:
Reduce barriers to licensing and adopt kin-specific licensing standards so that more grandparents and family can step in when needed;
Provide equitable financial support for every child in the custody of the Department of Child Safety, regardless of caregiver licensure status so a grandparent receives the same level of support as all foster care parents, and
The United States is confronted with a significant challenge in maternal health, holding the highest maternal mortality rate among developed nations, a trend that is on the rise and disproportionately affects Black and Indigenous women. In this context, Arizona’s situation is particularly concerning. According to the latest 2024 State Scorecard on Women’s Health and Reproductive Care by The Commonwealth Fund, Arizona is positioned at 44th place overall. Our state has shown commendable performance in managing preterm births, low-risk cesarean deliveries, and HIV testing among women aged 18-64. However, it falls short in providing a consistent healthcare source or routine checkups for women of childbearing age, ranking among the lowest. The data tells us we have a crisis to address - the maternal mortality rate in Arizona surpasses the national average, and the state’s infant mortality rate, previously better than average, has now deteriorated beyond the national rate.
In 2022, Children’s Action Alliance collaborated with key partners to secure a 12-month extension of AHCCCS postpartum coverage. This initiative ensures that new mothers can focus on their newborns without the added stress of health insurance transitions. Stay tuned for further updates and policy recommendations from us and our allies to enhance maternal and child health in Arizona. If you’re interested in more details or wish to participate in our maternal health stakeholder meetings, please reach out to Matt Jewett, our Health Policy Director, at mjewett@azchildren.org.
Just six years ago, our country grieved alongside parents and children who were forcibly separated at the border, with a full two-thirds of Americans across political parties opposed to the barbaric actions. HCR2060 opens the door to repeating this shameful chapter.” -January Contreras, Children’s Action Alliance.
Children’s Action Alliance puts brain and heart power to work every day to realize the vision of an Arizona where all children and families thrive. HCR2060, an immigration bill expected to be heard this week in the Arizona Legislature, is incompatible with this vision.
Our CEO, January Contreras, recently shared some of the reasons that HCR2060 is bad for Arizona’s children. We share this editorial with you as supporters who also value the potential of every child in our state. Children’s Action Alliance remains in opposition to HCR2060, and we urge members of the legislature to vote against it.
Guest Opinion as Printed in the Arizona Daily Star on May 17, 2024
HCR2060 is not the answer
While many look to the Arizona State Legislature to tackle state priorities such as transportation, public safety, affordable housing, and education, members are also currently working to take on the federal responsibility of immigration enforcement in ways that are likely unlawful, certainly unfunded, and deeply harmful for our state.
House Concurrent Resolution 2060 (HCR2060) is a resolution that attempts to create state law and deploy local authorities for immigration enforcement. Parts of the resolution duplicate what is already in law when it comes to public benefits, but it charts new territory in criminal enforcement of unlawful presence without safeguards that exist in federal immigration policy such as barring enforcement on school campuses and in churches. HCR2060 can still be defeated by the legislature, but if passed, it will open the door to chaos that makes Arizona less safe than today.
I speak as a former prosecutor and former attorney for victims of crime. Without question, it is my experience that victims of abuse, human trafficking, and other crimes will not call local law enforcement for help when they fear that call will lead to deportation. This is backed up by cities that saw declines in reports of domestic violence and sexual assault crimes in Latino communities when anti-immigrant rhetoric and targeting was at its most extreme. The crimes were happening, victims were just too afraid to call 9-1-1. HCR2060 will decrease public safety and allow perpetrators of violence to escape being held accountable for their crimes.
I speak as a former Assistant Secretary for the Administration for Children and Families at the U.S. Department of Health and Human Services (HHS). Just six years ago, our country grieved alongside parents and children who were forcibly separated at the border, with a full two-thirds of Americans across political parties opposed to the barbaric actions. Today, my former HHS colleagues still serve on a Reunification Task Force dedicated to leaving no stone unturned to reunite families. The “zero tolerance” policy that unleashed this trauma continues to claim more than 1,000 children who have been deprived of the parents they were separated from. HCR2060 opens the door to repeating this shameful chapter.
Most importantly, I write this as a mother and an advocate for children. As I sat in church this week sharing in a blessing for moms, I could not help but pray for the parents and children whose lives will be torn apart if elected officials once again sanction actions that terrorize immigrant families. HCR2060 will do just that.
We must look to the right authorities for solutions to problems. Here, federal officials must reform and enforce federal immigration laws in ways that do not leave humanity and public safety behind. HCR2060 is not the answer.
January Contreras is the CEO of Children’s Action Alliance, advocating statewide for the health, safety, education, and economic well-being of children in Arizona.
Click here to access the opinion piece at the Arizona Daily Star.
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