PRESS RELEASE

FOR IMMEDIATE RELEASE                                                         January 16, 2025

CONTACT: Doug MacEachern or Shauna Evans

PHONE: 602.771.8507 or 602.771.8079

GOVERNOR’S EXECUTIVE BUDGET PROPOSAL INCLUDES FUNDING FOR KEY ADWR INITIATIVES

Funding to support Arizona’s on-going efforts to protect the State from  Colorado River supply reductions

Phoenix, AZ — Today, Governor Hobbs released her FY 2027 Executive Budget, which funds critical ADWR programs and efforts, including water conservation, consumptive use reductions, infrastructure upgrades, supply augmentation, and other shortage mitigation efforts.

It is paramount that Arizona protects its water users and mitigates the adverse effects of anticipated reductions across the basin. To support Arizona’s water users, the initiatives funded in the budget proposal include:

• $30 million one-time deposit into the newly created Colorado River Protection Fund to aid conservation efforts and continue building a sustainable and growing economy.
• Permanent funding into the Colorado River Protection Fund through a water usage fee assessed on data centers by the Arizona Department of Water Resources.

“Once again, Arizona is leading the way in protecting the Colorado River and at recognizing the drier future ahead and the challenges that drier future presents to all the Colorado River states,” said ADWR Director Tom Buschatzke.

“These resources proposed by Governor Hobbs represent Arizona’s commitment to protecting the river, as well as the Arizona water users and citizens who depend upon it.”

“I hope that this financial commitment by the Governor will send a message to our Colorado River partner states, as well as the federal government, that Arizona is prepared once again to make necessary sacrifices to protect the system, just as we were in 2019 with the Drought Contingency Plan.”

The current guidelines for the operation and management of the Colorado River system expire at the end of calendar year 2026. Arizona and the six other Basin States are negotiating the post-2026 guidelines with the federal Bureau of Reclamation in order to develop a framework that more sustainably manages the Colorado River system.

The Director of ADWR serves as Arizona’s lead negotiator and is charged with protecting the State’s 2.8 million acre-feet entitlement of Colorado River water, representing as much as 40 percent of the State’s water supply.

While Arizona is committed to collaboration and cooperation with its Basin States partners, it is possible that new guidelines or the absence of a negotiated outcome could result in litigation among the Basin States.

Arizona continues to pursue good-faith negotiations that hopefully will result in a consensus outcome for more sustainable Colorado River management. At the same time, this appropriation ensures that ADWR has the resources to defend Arizona’s interests and water users who depend on the State’s precious Colorado River entitlement.

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