Arizona is grappling with a concerning economic outlook as new data reveals a notable decrease in the state budget. Reports indicate a $200 million reduction in available funds compared to January, which could necessitate budget cuts.
The situation is further complicated by persistently high gas prices and Arizona experiencing one of the sharpest declines in participation in the federal food assistance program, SNAP. Data reveals a significant drop in SNAP participation across the state.
Economic Challenges and Community Impacts
The Finance Advisory Committee has highlighted the potential impact of the $200 million budget shortfall on Arizona’s new state budget. In response to these challenges, Carla Vargas Jasa, president and CEO of Valley of the Sun United Way, discusses the increased needs within the community.
MARK BRODIE: Carla, what are the current needs you’re observing?
CARLA VARGAS JASA: We’re witnessing rising demands in housing, homelessness, workforce development, education, and health. These needs have intensified, especially following recent administrative changes affecting federal funding and investments in social safety nets, particularly in Arizona and Maricopa County.
Nonprofit organizations are facing funding challenges, with approximately $115 million in federal support no longer available. This financial strain is evident among the 100 organizations we collaborate with, impacting their ability to serve the community.
The community is dealing with record-high eviction rates in Maricopa County, and with SNAP coverage significantly reduced, more residents are struggling with food insecurity. As of January, about 33% of previous SNAP beneficiaries in Arizona no longer receive assistance, and this number may increase to nearly 50%.
Additionally, increased immigration enforcement is affecting school attendance and participation in nonprofit programs, forcing organizations to adapt their service delivery methods.
MARK BRODIE: How quickly do financial issues, like rising gas prices or reduced SNAP benefits, affect your organization?
CARLA VARGAS JASA: We proactively engage with our nonprofit partners to stay informed and respond swiftly to community needs. By maintaining close communication, we can adapt our models to provide timely assistance, such as special grants for food providers, and advocate for greater philanthropic involvement.
Philanthropy and Economic Uncertainty
MARK BRODIE: What trends are you seeing in philanthropic giving amid the current economic climate?
CARLA VARGAS JASA: While national reports showed an increase in giving between 2024 and 2025, the recent turmoil raises concerns for corporations and philanthropists about filling gaps left by the public sector. It’s crucial for private philanthropy to step in to mitigate the broader impacts of economic difficulties, such as transportation and health challenges.
MARK BRODIE: How does the current economic situation compare to past crises like the Great Recession or COVID?
CARLA VARGAS JASA: Although it’s difficult to make direct comparisons, the current environment feels more uncertain for those in need and nonprofit leaders. The United Way’s strength lies in its comprehensive view of community needs, enabling us to facilitate collaborations that address these challenges.
MARK BRODIE: Are other regions experiencing similar issues?
CARLA VARGAS JASA: Yes, United Way chapters across the country are adapting to meet local needs. However, Arizona faces unique challenges, such as being the 12th least affordable county and experiencing significant SNAP benefit reductions and immigration enforcement impacts.
MARK BRODIE: Thanks, Carla.
CARLA VARGAS JASA: Thank you for having me.
MARK BRODIE: Carla Vargas Jasa is president and CEO of Valley of the Sun United Way.
Note: KJZZ’s The Show transcripts are edited for length and clarity and may not reflect the final form. The audio record remains the authoritative source of KJZZ’s programming.
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