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

Series of cost-saving measures to simplify operations and consolidate state's purchasing power

Phoenix, AZ - Today, Governor Katie Hobbs launched the Arizona Capacity and Efficiency (ACE) Initiative, a bold plan to streamline state government, cut spending, and save Arizona up to $100 million. The initiative, previewed in her State of the State address, focuses on simplifying operations, consolidating purchasing power, and adopting new technologies to maximize taxpayer value.

"Arizona families make daily sacrifices to stretch every dollar. The state government must do the same," said Governor Katie Hobbs . "To achieve the Arizona Promise, we need to strengthen the capacity of the state to administer programs more efficiently. Every dollar lost to redundant contracts or technology is a dollar taken away from schools, roads, public safety, and ultimately Arizona families. We are making government work better for the people of Arizona."

The ACE Initiative will:

• Save Money: Consolidate state purchasing power to secure bulk-discounts and reduce waste.
• Simplify Operations: Standardize administrative services and technology to cut costly overlap.
• Strengthen with Technology: Adopt AI and emerging technologies to optimize services and boost workforce productivity.

Key efforts to advance these goals include the Arizona Efficiency Challenge, inviting state employees to submit cost-saving ideas, and the Arizona Innovation Hub, which will ensure technology investments deliver measurable taxpayer returns.

The ACE Initiative will be led by Amy Edwards Holmes, a nationally recognized expert in public sector innovation, who brings decades of experience transforming government operations through data, AI, and digital modernization. Holmes previously served as the Executive Director of the Bloomberg Center for Government Excellence at Johns Hopkins University, empowering public sector organizations globally to enhance their data capacity and leverage emerging technologies. She also served as Deputy Assistant Secretary in the U.S. Department of the Treasury, overseeing federal financial operations and leading the implementation of the nation's first open data law, the DATA Act. As the Director of the Task Force on Government Performance for the U.S. Senate Budget Committee, she advised Congressional leaders on technology and data policies that led to key bipartisan legislation.

As the Director of the ACE Initiative, Holmes will spearhead the Hobbs Administration's statewide strategy to streamline government structures and enhance operational capabilities.

"The National Academy of Public Administration commends the appointment of Amy Edwards Holmes as Director for the Arizona Capacity & Efficiency Initiative," said James-Christian B. Blockwood, President and CEO, National Academy of Public Administration . "As an elected Fellow of the Academy, Amy possesses both the vision and the technical expertise necessary to help government meet the challenges of the 21st century. The ACE Initiative's commitment to modernization, fostering innovation, and maximizing taxpayer value is exactly the kind of forward-thinking, results-oriented public service that strengthens our government. We look forward to seeing the positive impact Amy will have in this role and the ACE initiative will have on the people of Arizona."

"It's great to see Arizona working to modernize government for 2026 and beyond - mobilizing the state's great talent, empowering employees with AI, and cutting spending the state doesn't need," said Robert Gordon, Executive Vice President for State Initiatives at the Recoding America Fund .

"We must meet the moment with a workforce and government agencies that are prepared for the increasing growth and complexity of our state," said Shannon Portillo, Director of the School of Public Affairs at Arizona State University . "It is wonderful to see Arizona undertake this initiative and work through innovative solutions for effective public service."

###