Phoenix Mayor Highlights Jobs, Housing and Sustainability in State of the City Address

By Vanessa Pimentel | Cronkite News

PHOENIX – “Today, the world looks to Phoenix as a city of the future, where opportunity is around every corner,” Phoenix Mayor Kate Gallego said Tuesday during her annual State of the City address.

Gallego focused efforts to create a successful, sustainable and safe Phoenix so residents can live comfortably. Phoenix wants to build its economy by addressing climate and housing issues while increasing investment opportunities.

Gallego said record levels of investment are having a major impact on the local economy, creating thousands of high-level jobs to support the middle class.

A study on the economic impact of Downtown Phoenix Inc. shows that between 2005 and 2022, downtown “was infused with more than $8 billion in public and private investment, generating $21.2 billion in economic activity in 2022 alone,” according to the organization.

“The most advanced semiconductors in the world will be manufactured right here in Phoenix,” Gallego said. “The world’s first automated cars have gone into service here in Phoenix. Amazing medical discoveries are happening. What we have created here is unprecedented in American history.”

Gallego emphasized the importance of investments taking place in Phoenix and the state. She announced that the Dutch government will establish a permanent trade office in Phoenix, further strengthening the Valley as a key player in the future of the international economy. These types of investments have helped fuel the business ecosystem that Phoenix strives for when attracting new players.

In Phoenix alone, Gallego said 25 semiconductor companies have relocated or expanded in recent years.

“TSMC (Taiwan Semiconductor Manufacturing Co.) alone creates 25,000 jobs in construction and manufacturing – good jobs that change lives,” Gallego said.

Gallego said she met a Navajo woman who signed up to be a member of the Iron Workers Union. The woman said she received training and earned $8,000 in the first three weeks working at a semiconductor factory. Gallego called the semiconductor industry a “life-changing career path.”

“The condition of our city is strong. If we continue to play to our strengths and leverage our ingenuity, I know we can overcome the challenges we face,” said Gallego.

Kayla Valencia, regional community outreach manager for Southwest Airlines, spoke to the hundreds of people gathered at the Sheraton Phoenix Downtown Hotel ahead of Gallego’s speech.

“As we complete another year of serving the Valley, we are so excited about the bright future you have in store to make Phoenix a great place to call home and a top destination for people from all over world,” said Valencia.

Phoenix has focused on water conservation and supply for decades. Gallego said advanced water treatment is essential to sustaining Arizonans’ economy and quality of life, but sustainability in the desert doesn’t just stop there.

She highlighted deliberate strategies including tree canopies planted in schools and legalizing backyard casitas to enable families to maintain housing for generations.

Due to the increase in housing costs, it is becoming increasingly difficult for people to find housing.

To combat homelessness, Gallego says more communities in the Valley need to step up to meet this moment, noting that Phoenix has 83% of all emergency shelter beds in Maricopa County.

“No one should have to die in the summer because the air conditioning went out or because they didn’t have shelter,” Gallego said. “We owe a special duty to the most vulnerable among us, especially during the summer.”