MORE: Text, highlights and video of every governor's annual address.
The Republican also promised in his first state of the state address to reject tax increases and not delay previously approved corporate tax cuts that have yet to be phased in.
Ducey took the steps despite a projected $1.5 billion state budget deficit in the coming 18 months, an amount that exceeds 10 percent of current spending.
"Instead of demanding more revenue from the people, I suggest we demand more fiscal responsibility from our government," Ducey said.
