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State Business and Economy News State Government News

PHOENIX (AZFamily)— Arizona state government is in for some financial belt-tightening after Governor Katie Hobbs asked agency directors to start preparing cost savings plans to help address the state’s budget shortfalls over the next two years.

In a letter to state agency directors last Friday, Ben Henderson, the Governor’s Office’s director of operations, said the Governor is implementing a “headcount cap” on newly created positions for executive agencies, boards, and commissions. Similar to a hiring freeze, the cap will also apply to contract workers.

“This headcount cap will allow agencies the flexibility to determine which positions need to be filled and which positions can be held vacant,” Henderson said in the letter.

Henderson added that the governor’s office must approve any new hire request from a state agency, board, or commission.

The cap doesn’t apply to agencies led by elected leaders, such as the Secretary of State and the legislature, but the Governor’s Office is encouraging them to …

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