HB2650

House of Representatives

appropriation of federal monies

Sponsors: Representative Murphy, Representative Gray, Senator Martin et a

DP	Committee on Appropriations (B)
DP	Committee on Appropriations (P)
DP	Caucus and COW
X	As Transmitted to Governor

HB 2650 provides the Legislature with appropriation authority over non-custodial federal monies.

History

Current statute (A.R.S. § 35-113.01) requires all state agencies, boards, commissions and departments to submit to the Arizona Department of Administration (ADOA) copies of all agreements, contracts and copies of applications and requests for federal funds. Statute also outlines that requests must also include the purpose and source of requested funds. Finally, budget units are required to notify ADOA upon receipt of any federal funds.

Legislative control over federal monies in Arizona is limited to those monies that are specifically allocated by Congress to the Legislature. All other federal monies are distributed by the Executive Office. Federal monies comprise approximately one-third of the JLBC’s estimated state budget expenditures for 2006. Approximately $7.33 billion of the state’s estimated $23.36 billion total expenditures are expected to be from federal sources. Arizona is one of five states in which the Legislature does not have specific authority over federal monies. Legislatures in other states have either specific authorization over federal funds (full appropriation control over amount and purpose) or open-ended authorization (where the legislature authorizes the state to spend without declaring an amount or purpose).

Provisions

· Defines budget unit and non-custodial federal monies.

· Requires budget units to track non-custodial federal monies separately from other accounts or funds.

· Authorizes the Legislature to appropriate non-custodial federal monies. If the Legislature does not make an appropriation for a specific fund, grant or block of monies, that duty goes back to the agency that administers those specific monies.

· Requires the Legislature to designate a specific purpose when appropriating federal funds.

· Allows the Legislature to make a lump-sum appropriation for monies that may be received while the Legislature is not in session and requires any expenditure of these monies to first be reviewed by the Joint Legislative Budget Committee (JLBC).

· States that if the Legislature appropriates more federal monies than are received, the original appropriation shall be reduced. Additionally, the activity being financed by these monies shall also be proportionately reduced.

· States that if more federal monies are received than were appropriated by the Legislature, the original appropriation of federal and state monies made by the Legislature does not change. Requires the Treasurer to credit the extra monies to the agency account and directs JLBC to review expenditures of the additional monies.

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Forty-seventh Legislature