Governor Katie Hobbs Unveils Plan to Strengthen Government Efficiency and Save Arizona $100 Million

Phoenix, AZ ~ Phoenix, AZ - In an effort to streamline state government operations and save up to $100 million, Governor Katie Hobbs has launched the Arizona Capacity and Efficiency (ACE) Initiative. This bold plan, which was previewed in her State of the State address, aims to simplify operations, consolidate purchasing power, and adopt new technologies to maximize taxpayer value.

Governor Hobbs stated that Arizona families make daily sacrifices to stretch every dollar and the state government must do the same. She believes that in order to achieve the Arizona Promise, which focuses on strengthening the capacity of the state to administer programs more efficiently, it is crucial to eliminate redundant contracts and technology that take away from important areas such as education, infrastructure, and public safety.

The ACE Initiative will focus on three key goals: saving money, simplifying operations, and strengthening with technology. To save money, the initiative plans to consolidate state purchasing power in order to secure bulk-discounts and reduce waste. In terms of simplifying operations, administrative services and technology will be standardized to cut costly overlap. And finally, by adopting AI and emerging technologies, the initiative aims to optimize services and boost workforce productivity.

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To further advance these goals, two key efforts have been announced - the Arizona Efficiency Challenge and the Arizona Innovation Hub. The Efficiency Challenge invites state employees to submit cost-saving ideas while the Innovation Hub will ensure that technology investments deliver measurable returns for taxpayers.

Leading this initiative is Amy Edwards Holmes, a nationally recognized expert in public sector innovation with decades of experience transforming government operations through data analysis, AI implementation, and digital modernization. Holmes has previously served as Executive Director of the Bloomberg Center for Government Excellence at Johns Hopkins University where she empowered public sector organizations globally with enhanced data capacity and emerging technologies. She also served as Deputy Assistant Secretary in the U.S. Department of Treasury where she oversaw federal financial operations and led the implementation of the nation's first open data law.

As the Director of the ACE Initiative, Holmes will spearhead the Hobbs Administration's statewide strategy to streamline government structures and enhance operational capabilities. Her appointment has been commended by James-Christian B. Blockwood, President and CEO of the National Academy of Public Administration, who stated that as an elected Fellow of the Academy, Holmes possesses both the vision and technical expertise necessary to help government meet the challenges of the 21st century.

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Robert Gordon, Executive Vice President for State Initiatives at the Recoding America Fund, also praised Arizona's efforts to modernize government for 2026 and beyond by mobilizing talent, empowering employees with AI, and cutting unnecessary spending.

Shannon Portillo, Director of the School of Public Affairs at Arizona State University, believes that this initiative is necessary in order to prepare for the increasing growth and complexity of the state. She commended Arizona for undertaking this initiative and working towards innovative solutions for effective public service.

The ACE Initiative has received widespread support from various organizations and experts who believe that it is a crucial step towards modernizing government operations in Arizona. With Holmes at its helm, this initiative is expected to have a positive impact on the people of Arizona by maximizing taxpayer value and creating a more efficient state government.

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