House Engrossed

 

 

 

 

State of Arizona

House of Representatives

Fifty-third Legislature

First Regular Session

2017

 

 

HOUSE BILL 2537

 

 

 

AN ACT

 

amending Laws 2014, chapter 14, section 9, as amended by Laws 2015, chapter 8, section 3 and Laws 2016, chapter 117, section 1; amending Laws 2016, chapter 117, section 130; amending Laws 2016, chapter 117, section 156; amending Laws 2016, chapter 117, section 164; appropriating monies.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1.  Laws 2014, chapter 14, section 9, as amended by Laws 2015, chapter 8, section 3 and Laws 2016, chapter 117, section 1, is amended to read:

Sec. 9.  Department of administration; Arizona financial information system; replacement; exemption

Of the $28,638,000 appropriated to the department of administration in fiscal year 2013-2014 by Laws 2013, first special session, chapter 1, section 115, subsection A, the sum of $4,132,000 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations for fiscal years 2014-2015, 2015-2016, and 2016‑2017 and 2017-2018 for the purpose of paying contingency costs related to the replacement of the Arizona financial information system.  Of this amount, $212,000 for rent and $817,000 for private third-party consultant oversight are not subject to review by the joint legislative budget committee.  Subject to review by the joint legislative budget committee, the remaining $3,103,000 shall be used for the replacement of the state's e‑procurement system children's information library and data source system at the department of child safety.

Sec. 2.  Laws 2016, chapter 117, section 130 is amended to read:

Sec. 130.  Automation projects fund; appropriations; exemption; fiscal year 2016‑2017; allocation; e‑procurement

A.  The sum of $12,000,000 $9,000,000 is appropriated from the automation projects fund established by section 41‑714, Arizona Revised Statutes, in fiscal year 2016-2017 to the department of administration for the replacement of the state's e‑procurement system.  It is the intent of the legislature that the cost of replacing the state's e‑procurement system be distributed proportionately among other funds.

B.  The amount of $3,000,000 is appropriated from the state general fund in fiscal year 2016‑2017 for deposit into the automation projects fund established by section 41‑714, Arizona Revised Statutes, for implementing upgrades to the children's information library and data source system at the department of child safety.  This amount is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations for fiscal year 2017-2018.

C.  The amount of $9,000,000 is appropriated from other funds in fiscal year 2016‑2017 for deposit into the automation projects fund established by section 41‑714, Arizona Revised Statutes.  The joint legislative budget committee staff shall determine the proportional amount to be transferred from each appropriated and nonappropriated fund source.

D.  For all fund sources that are not the state general fund, the joint legislative budget committee staff shall determine and the department of administration shall allocate to each agency or department an amount for the cost of replacing the state's e‑procurement system.  The joint legislative budget committee staff shall also determine and the department of administration shall allocate adjustments, as necessary, in appropriations and expenditure authority to allow for the cost of replacing the state's e‑procurement system.

Sec. 3.  Laws 2016, chapter 117, section 156 is amended to read:

Sec. 156.  Fund balance transfers; fiscal years 2016-2017 and 2017-2018

A.  Notwithstanding any other law, on or before June 30, 2017, the following amounts from the following sources are transferred to the state general fund for the purposes of providing adequate support and maintenance for agencies of this state:

1.  Judiciary – supreme court:

Alternative dispute resolution fund - $300,000

Arizona lengthy trial fund - $300,000

Court appointed special advocate fund ‑ $500,000

2.  Judiciary – superior court:

Drug treatment and education fund - $250,000

Juvenile probation services fund - $3,650,000

3.  Department of administration:

Automation operations fund - $461,600

B.  Notwithstanding any other law, on or before June 30, 2018, the following amounts from the following sources are transferred to the state general fund for the purposes of providing adequate support and maintenance for agencies of this state:

1.  Judiciary – supreme court:

Alternative dispute resolution fund - $300,000

Arizona lengthy trial fund - $200,000

Court appointed special advocate fund ‑ $400,000

2.  Judiciary – superior court:

Drug treatment and education fund - $250,000

Juvenile probation services fund - $1,850,000

Sec. 4.  Laws 2016, chapter 117, section 164 is amended to read:

Sec. 164.  Department of law; general agency counsel charges; fiscal year 2016-2017

The department of administration shall allocate to each agency or department not exempt pursuant to section 41-191.09, Arizona Revised Statutes, the following amounts for general agency counsel provided by the department of law:

1.  Department of administration                      $127,700

2.  Office of administrative hearings                 $  3,000

3.  Arizona department of agriculture                 $  4,200

4.  3.  Arizona arts commission                       $  3,100

5.  4.  Automobile theft authority                    $  1,400

6.  5.  Citizens clean elections commission           $  2,700

7.  6.  State department of corrections               $  2,000

8.  7.  Arizona criminal justice commission           $  8,700

9.  8.  Arizona state schools for the deaf

    and the blind                               $100,200

10.  9.  Commission for the deaf and the

    hard of hearing                             $  4,100

11.  10.  Arizona early childhood development

     and health board                           $ 47,100

12.  11.  Department of education                      $132,000

13.  12.  Department of emergency and

     military affairs                           $ 30,000

14.  13.  Department of environmental quality          $135,600

15.  14.  Arizona exposition and state fair board      $ 20,900

16.  15.  Department of financial institutions         $  1,900

17.  16.  State forester                               $ 13,400

18.  17.  Department of gaming                         $ 37,300

19.  Arizona geological survey                         $  6,800

20.  18.  Department of health services                $170,000

21.  19.  Arizona historical society                   $    700

22.  20.  Arizona department of housing                $ 19,300

23.  21.  Department of insurance                      $ 10,500

24.  22.  Department of juvenile corrections           $  9,400

25.  23.  State land department                        $  2,100

26.  24.  Department of liquor licenses and control    $ 11,400

27.  25.  Arizona state lottery commission             $ 24,800

28.  26.  Arizona state parks board                    $ 45,800

29.  27.  State personnel board                        $    600

30.  28.  Arizona pioneers' home                       $ 12,100

31.  29.  Commission for postsecondary education       $  1,800

32.  30.  Department of public safety                  $677,400

33.  31.  Radiation regulatory agency                  $  3,800

34.  32.  Arizona state retirement system              $ 69,100

35.  33.  Department of revenue                        $  4,900

36.  34.  Department of state - secretary of state     $  1,800

37.  35.  State treasurer                              $  9,200

38.  36.  Department of veterans' services             $ 52,700

Sec. 5.  Subject to applicable laws, the sums or sources of revenue set forth in this act are appropriated for the fiscal years indicated and only from the funding sources listed for the purposes and objects specified. If monies from funding sources in this act are unavailable, no other funding source may be used.

Sec. 6.  ARIZONA STATE BOARD OF ACCOUNTANCY

                                                    2017-18               

FTE positions                                14.0               

Lump sum appropriation               $  2,024,400               

Fund sources:

Board of accountancy fund          $  2,024,400               

Sec. 7.  ACUPUNCTURE BOARD OF EXAMINERS

                                                    2017-18               

FTE positions                                 1.0               

Operating lump sum appropriation     $    172,300               

Annual leave payout                        13,200

Total appropriation – acupuncture board

of examiners                         $    185,500

Fund sources:

Acupuncture board of examiners

  fund                             $    185,500               

Sec. 8.  DEPARTMENT OF ADMINISTRATION

                                                    2017-18               

FTE positions                               535.1               

Operating lump sum appropriation     $ 91,365,300

Utilities                               8,275,600

Arizona financial information

  system                                9,406,300

Risk management administrative

  expenses                              8,747,200

Risk management losses and

  premiums                             42,530,300

Workers' compensation losses

  and premiums                         31,830,300

Statewide information security

  and privacy office                      870,900

State surplus property sales

  proceeds                              1,810,000

Southwest defense contracts                25,000

Government transformation office        2,000,000

Office of grants and federal

  resources                               375,900

Total appropriation – department of

administration                       $197,236,800

Fund sources:

State general fund                   $ 10,264,500               

Administration – AFIS II

  collections fund                        375,900

Air quality fund                          927,300               

Arizona financial information

  system collections fund               9,406,300

Automation operations fund             23,937,600

Capital outlay stabilization fund      18,069,600

Corrections fund                          570,400

Federal surplus materials revolving

  fund                                    464,500

Information technology fund             2,936,000

Motor vehicle pool revolving fund      10,151,300

Personnel division fund                12,857,900

Risk management revolving fund         90,875,000

Special employee health insurance

  trust fund                            5,256,100

Special services revolving fund           809,900

State surplus materials revolving

  fund                                  2,947,000

State web portal fund                   5,542,400

Telecommunications fund                 1,845,100

The amount appropriated for southwest defense contracts shall be distributed to a nonprofit organization that advocates for the preservation and enhancement of critical defense missions and assets in the southwest United States.

The appropriation from the automation operations fund established by section 41-711, Arizona Revised Statutes, is an estimate representing all monies, including balance forward, revenues and transfers during fiscal year 2017-2018.  These monies are appropriated to the department of administration for the purposes established in section 41-711, Arizona Revised Statutes.  The appropriation is adjusted as necessary to reflect monies credited to the automation operations fund for automation operation center projects.  Before the expenditure of any automation operations fund monies in excess of $23,937,600 in fiscal year 2017-2018, the department of administration shall report the intended use of monies to the joint legislative budget committee.

The amounts appropriated for the state employee public transportation service subsidy shall be used for up to a fifty percent subsidy of charges payable for public transportation service expenses as provided in section 41‑710.01, Arizona Revised Statutes, of nonuniversity state employees in a vehicle emissions control area as defined in section 49-541, Arizona Revised Statutes, of a county with a population of more than four hundred thousand persons.

It is the intent of the legislature that the department not replace vehicles until they have an average of 80,000 miles or more.  On or before August 1, 2017, the department shall submit a report for review by the joint legislative budget committee on the maintenance savings achieved by replacing vehicles that have an average of 80,000 miles or more.

All state surplus materials revolving fund monies received by the department of administration in excess of $2,947,000 in fiscal year 2017‑2018 are appropriated to the department.  Before the expenditure of state surplus materials revolving fund monies in excess of $2,947,000 in fiscal year 2017‑2018, the department of administration shall report the intended use of monies to the joint legislative budget committee.

On or before October 1, 2017, the department shall submit a report for review by the joint legislative budget committee of the expenditures to date and progress of implementation for any monies received from the state and local implementation grant program associated with the national public safety broadband network initiative.  The joint legislative budget committee may require the department to submit more frequent reports as necessary for further review.

Sec. 9.  OFFICE OF ADMINISTRATIVE HEARINGS

                                                    2017-18

FTE positions                                12.0               

Lump sum appropriation             $      860,500               

Fund sources:

State general fund                 $      860,500               

Sec. 10.  ARIZONA COMMISSION OF AFRICAN‑AMERICAN AFFAIRS

                                                    2017-18               

FTE positions                                 3.0               

Lump sum appropriation             $      125,000               

Fund sources:

State general fund                 $      125,000

Sec. 11.  ARIZONA DEPARTMENT OF AGRICULTURE

                                                    2017-18

FTE positions                               194.4

Operating lump sum appropriation   $   10,243,700

Agricultural employment relations

  board                                    23,300

Animal damage control                      65,000

Red imported fire ant control              23,200

Agricultural consulting and

  training                                128,500

Total appropriation – Arizona department

of agriculture                     $   10,483,700

Fund sources:

State general fund                 $    9,049,300

Air quality fund                        1,434,400

Sec. 12.  ARIZONA HEALTH CARE COST CONTAINMENT SYSTEM

                                                    2017-18

FTE positions                             2,326.3

Operating lump sum appropriation   $   95,720,900

DES eligibility                        88,874,500

Proposition 204 – AHCCCS

  administration                       12,760,600

Proposition 204 – DES eligibility      44,358,700

Medical services

Traditional medicaid services       4,037,329,200

Proposition 204 services            2,911,986,200

Adult expansion services              484,329,900

Children's rehabilitative services    270,673,900

KidsCare services                     111,961,100

ALTCS services                      1,544,082,800

Behavioral health services

Medicaid behavioral health –

  traditional services              1,015,591,300

Medicaid behavioral health –

  proposition 204 services            649,608,300

Medicaid behavioral health –

  adult expansion services             77,403,100

Medicaid behavioral health –

  comprehensive medical and

  dental program                      217,719,100

Crisis services                        16,391,300

Nonmedicaid seriously mentally

  ill services                         78,846,900

Supported housing                       5,324,800

Hospital payments

Disproportionate share payments         5,087,100

Disproportionate share payments –

  voluntary match                               0

Rural hospitals                        22,650,000

Graduate medical education            265,729,800

Safety net care pool                   75,000,000

Total appropriation and expenditure

authority – Arizona health                      

care cost containment system      $12,031,429,500

Fund sources:

State general fund                $ 1,774,761,000

Budget neutrality compliance fund       3,655,300

Children's health insurance

  program fund                        117,681,000

Prescription drug rebate

  fund - state                        145,490,300

Substance abuse services fund           2,250,200

Tobacco products tax fund –

  emergency health services

  account                              19,244,300

Tobacco tax and health care

  fund – medically needy account       72,998,200

Expenditure authority               9,895,349,200

Operating budget

The amounts appropriated for the DES eligibility line item shall be used for intergovernmental agreements with the department of economic security for the purpose of eligibility determination and other functions. The state general fund share may be used for eligibility determination for other programs administered by the division of benefits and medical eligibility based on the results of the Arizona random moment sampling survey.

The amounts included in the proposition 204 – AHCCCS administration, proposition 204 - DES eligibility, proposition 204 services and medicaid behavioral health – proposition 204 services line items include all available sources of funding consistent with section 36‑2901.01, subsection B, Arizona Revised Statutes.

Medical services and behavioral health services

Before making fee-for-service program or rate changes that pertain to fee-for-service rate categories, the Arizona health care cost containment system administration shall report its expenditure plan for review by the joint legislative budget committee.

The Arizona health care cost containment system administration shall report to the joint legislative budget committee on or before March 1, 2018 on preliminary actuarial estimates of the capitation rate changes for the following fiscal year along with the reasons for the estimated changes.  For any actuarial estimates that include a range, the total range from minimum to maximum may not be more than two percent.  Before implementation of any changes in capitation rates, the Arizona health care cost containment system administration shall report its expenditure plan for review by the joint legislative budget committee.  Before the administration implements any change in policy affecting the amount, sufficiency, duration and scope of health care services and who may provide services, the administration shall prepare a fiscal impact analysis on the potential effects of this change on the following year's capitation rates.  If the fiscal impact analysis demonstrates that this change will result in additional state costs of $500,000 or more for any fiscal year, the administration shall submit the policy change for review by the joint legislative budget committee.

It is the intent of the legislature that the percentage attributable to administration and profit for the regional behavioral health authorities be nine percent of the overall capitation rate.

The Arizona health care cost containment system administration shall transfer up to $1,200,000 from the traditional medicaid services line item for fiscal year 2017-2018 to the attorney general for costs associated with tobacco settlement litigation.

The Arizona health care cost containment system administration shall transfer $436,000 from the traditional medicaid services line item for fiscal year 2017-2018 to the department of revenue for enforcement costs associated with the March 13, 2013 master settlement agreement with tobacco companies.

The Arizona health care cost containment system administration shall transfer $1,200,000 from the nonmedicaid seriously mentally ill services line item for fiscal year 2017–2018 to the department of health services for the costs of prescription medications for persons with a serious mental illness at the Arizona state hospital.

On or before December 31, 2017, and June 30, 2018, the Arizona health care cost containment system administration shall report to the joint legislative budget committee on the progress in implementing the Arnold v. Sarn lawsuit settlement.  The report shall include at a minimum the administration's progress toward meeting all criteria specified in the 2014 joint stipulation, including the development and estimated cost of additional behavioral health service capacity in Maricopa county for supported housing services for 1,200 class members, supported employment services for 750 class members, eight assertive community treatment teams and consumer operated services for 1,500 class members.  The administration shall also report by fund source the amounts it plans to use to pay for expanded services. 

Long-term care

Any federal monies that the Arizona health care cost containment system administration passes through to the department of economic security for use in long-term administration care for persons with developmental disabilities do not count against the long-term care expenditure authority above.

Pursuant to section 11‑292, subsection B, Arizona Revised Statutes, the county portion of the fiscal year 2017-2018 nonfederal costs of providing long-term care system services is $264,673,200.  This amount is included in the expenditure authority fund source.

Any supplemental payments received in excess of $108,974,800 for nursing facilities that serve Arizona long-term care system medicaid patients in fiscal year 2017-2018, including any federal matching monies, by the Arizona health care cost containment system administration are appropriated to the administration in fiscal year 2017-2018.  Before the expenditure of these increased monies, the administration shall notify the joint legislative budget committee and the governor's office of strategic planning and budgeting of the amount of monies that will be expended under this provision.  These payments are included in the expenditure authority fund source.

Payments to hospitals

The $5,087,100 appropriation for disproportionate share payments for fiscal year 2017-2018 made pursuant to section 36-2903.01, subsection O, Arizona Revised Statutes, includes $4,202,300 for the Maricopa county health care district and $884,800 for private qualifying disproportionate share hospitals.

Any monies received for disproportionate share hospital payments from political subdivisions of this state, tribal governments and any university under the jurisdiction of the Arizona board of regents, and any federal monies used to match those payments, in fiscal year 2017-2018 by the Arizona health care cost containment system administration in excess of $0 are appropriated to the administration in fiscal year 2017-2018.  Before the expenditure of these increased monies, the administration shall notify the joint legislative budget committee and the governor's office of strategic planning and budgeting of the amount of monies that will be expended under this provision.

The expenditure authority fund source includes voluntary payments made from political subdivisions for payments to hospitals that operate a graduate medical education program or treat low-income patients.  The political subdivision portions of the fiscal year 2017-2018 costs of graduate medical education, disproportionate share payments - voluntary match and safety net care pool line items are included in the expenditure authority fund source.

Any monies for graduate medical education received in fiscal year 2017‑2018, including any federal matching monies, by the Arizona health care cost containment system administration in excess of $265,729,800 are appropriated to the administration in fiscal year 2017-2018.  Before the expenditure of these increased monies, the administration shall notify the joint legislative budget committee and the governor's office of strategic planning and budgeting of the amount of monies that will be expended under this provision.

Any monies received in excess of $75,000,000 for the safety net care pool by the Arizona health care cost containment system administration in fiscal year 2017-2018, including any federal matching monies, are appropriated to the administration in fiscal year 2017-2018.  Before the expenditure of these increased monies, the administration shall notify the joint legislative budget committee and the governor's office of strategic planning and budgeting of the amount of monies that will be expended under this provision.

Other

On or before January 5, 2018, the Arizona health care cost containment system administration shall report to the director of the joint legislative budget committee the total amount of medicaid reconciliation payments and penalties received on or before that date since July 1, 2017.  On June 30, 2018, the administration shall report the same information for all of fiscal year 2017‑2018.

The nonappropriated portion of the prescription drug rebate fund established by section 36-2930, Arizona Revised Statutes, is included in the federal portion of the expenditure authority fund source.

Sec.|13.  BOARD OF ATHLETIC TRAINING

                                                    2017-18

FTE positions                                 1.5

Lump sum appropriation               $    119,100

Fund sources:

Athletic training fund               $    119,100

Sec.|14.  ATTORNEY GENERAL ‑ DEPARTMENT OF LAW

                                                    2017-18

FTE positions                               580.7

Operating lump sum appropriation     $ 53,503,500

Capital postconviction prosecution        795,700

Internet crimes against children

  enforcement                           1,250,000

Federalism unit                           995,600

Risk management interagency

  service agreement                     9,406,700

State grand jury                          180,100

Southern Arizona law enforcement        1,193,000

Tobacco enforcement                       816,000

Victims' rights                         3,758,900

Total appropriation ‑ attorney general ‑

department of law                    $ 71,899,500

Fund sources:

State general fund                   $ 26,079,800

Antitrust enforcement revolving

  fund                                    244,300

Attorney general legal services

  cost allocation fund                  2,080,400

Collection enforcement revolving

  fund                                  6,845,200

Consumer protection–consumer

  fraud revolving fund                  6,275,700

Interagency service agreements fund    16,308,500

Internet crimes against children

  enforcement fund                        900,000

Risk management revolving fund          9,406,700

Victims' rights fund                    3,758,900

All monies appropriated to the attorney general legal services line item in the department of child safety budget do not count toward the attorney general's interagency service agreements fund appropriation in fiscal year 2017-2018.

The sum of $1,500,000 in fiscal year 2018-2019 and the sum of $1,500,000 in fiscal year 2019-2020 are appropriated from the state general fund to the attorney general for operating expenses of the criminal division.

On or before June 1, 2017, the department shall submit an expenditure plan for the fiscal year 2017-2018 internet crimes against children enforcement line item for review by the joint legislative budget committee.

The $900,000 appropriation from the internet crimes against children enforcement fund and the $350,000 appropriation from the state general fund for the internet crimes against children enforcement line item are continuing appropriations and are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, through June 30, 2019.

Sec. 15.  AUTOMOBILE THEFT AUTHORITY

                                                    2017-18               

FTE positions                                 6.0               

Operating lump sum appropriation      $   637,800               

Arizona vehicle theft task force        3,650,000

Local grants                              957,700                 

Reimbursable programs                      50,000               

Total appropriation - automobile theft

authority                             $ 5,295,500               

Fund sources:

Automobile theft authority fund      $ 5,295,500               

The automobile theft authority shall submit a report to the joint legislative budget committee before expending any monies for the reimbursable programs line item.  The agency shall show sufficient monies collected to cover the expenses indicated in the report.

Local grants shall be awarded with consideration given to areas with greater automobile theft problems and shall be used to combat economic automobile theft operations.

The automobile theft authority shall pay seventy-five percent of the personal services and employee-related expenses for city, town and county sworn officers who participate in the Arizona vehicle theft task force.

Sec. 16.  BOARD OF BARBERS

                                                    2017-18               

FTE positions                                 4.0               

Lump sum appropriation               $    341,800               

Fund sources:

Board of barbers fund                $    341,800               

Sec. 17.  BOARD OF BEHAVIORAL HEALTH EXAMINERS

                                                    2017-18               

FTE positions                                17.0               

Lump sum appropriation               $  1,759,100               

Fund sources:

Board of behavioral health

||examiners fund                     $  1,759,100               

Sec. 18.  STATE BOARD FOR CHARTER SCHOOLS

                                                    2017-18               

FTE positions                                14.0               

Lump sum appropriation               $  1,185,200               

Fund sources:

State general fund                   $  1,185,200               

Sec. 19.  DEPARTMENT OF CHILD SAFETY

                                                    2017-18

FTE positions                             3,193.1

Operating lump sum appropriation     $109,997,300

Additional operating resources

Caseworkers                            99,617,700

New case aides                          3,060,600

Attorney general legal services        25,416,800

General counsel                           155,500

Inspections bureau                      2,470,100

Litigation expenses                     2,471,200

Office of child welfare

  investigations                        9,611,100

Overtime pay                            8,370,000

Records retention staff                   592,900

Retention pay                           1,707,000

Training resources                      9,150,000

Out-of-home placements

Adoption services                     245,498,100

Emergency and residential placement    98,900,100

Foster care placement                  59,595,500

Foster home recruitment, study

  and supervision                      32,753,600

Kinship stipends                        2,000,000

Independent living maintenance          4,660,000

Permanent guardianship subsidy         12,516,900

Support services

DCS child care subsidy                 48,159,400

In-home mitigation                     28,988,100

Preventive services                    15,148,300

Out-of-home support services          154,518,900

Total appropriation and expenditure

authority – department of

child safety                         $975,359,100

Fund sources:

State general fund                   $379,479,400

Federal child care and

  development fund block grant         27,000,000

Federal temporary assistance for

  needy families block grant          149,472,700

Child abuse prevention fund             1,459,300

Children and family services

  training program fund                   207,100

Risk management revolving fund          2,471,200

Child safety expenditure authority    415,269,400

Additional operating resources

The department of child safety shall provide training to any new child safety FTE positions before assigning any client caseload duties to any of these employees.

It is the intent of the legislature that the department of child safety use its funding to achieve a one hundred percent investigation rate.

The department of child safety shall submit an expenditure plan for review by the joint legislative budget committee before expending any monies in the retention pay line item.  It is the intent of the legislature that monies in the retention pay line item be transferred to the department's operating budget in fiscal year 2018-2019.

Out-of-home placements

Of the amounts appropriated for out-of-home support services, emergency and residential placement and foster care placement, the department of child safety may transfer up to ten percent of the total amount of federal temporary assistance for needy families block grant monies appropriated to the department of economic security and the department of child safety to the social services block grant for use in the following line items in the department of child safety:  out-of-home support services, emergency and residential placement and foster care placement.  Before transferring federal temporary assistance for needy families block grant monies to the social services block grant, the department of child safety shall report the proposed amount of the transfer to the director of the joint legislative budget committee.  This report may be in the form of an expenditure plan that is submitted at the beginning of the fiscal year and updated, if necessary, throughout the fiscal year.

The amount appropriated for kinship stipends shall be used for a stipend of seventy-five dollars per month for a relative caretaker, including a grandparent, any level of great‑grandparent or any nongrandparent relative, or a caretaker of fictive kinship, if a dependent child is placed in the care of a relative caretaker or caretaker of fictive kinship pursuant to department guidelines.  To be eligible for the stipend, the caretaker's income may not exceed two hundred percent of the federal poverty guidelines.  Before changing the eligibility for the program or the amount of the stipend, the department shall submit a report for review by the joint legislative budget committee detailing the proposed changes.

Support services

It is the intent of the legislature that the amount appropriated for the preventive services and in-home mitigation line items be used for families whose children are at risk of out-of-home placement due to abuse, neglect or dependency and that the amount appropriated for the out-of-home support services line item be used for children in out-of-home placements.

Departmentwide

The department of child safety shall forward to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees and the director of the joint legislative budget committee a monthly report comparing total expenditures for the month and year‑to‑date as compared to prior-year totals on or before the thirtieth of the following month.  The report shall include a plan, if necessary, for eliminating any shortfall without a supplemental appropriation.

All expenditures made by the department of child safety for attorney general legal services shall be funded only from the attorney general legal services line item.  Monies in department of child safety line items intended for this purpose shall be transferred to the attorney general legal services line item before expenditure.

For the purposes of this section, "backlog case":

1.  Means any nonactive case for which documentation has not been entered in the child welfare automated system for at least sixty days and for which services have not been authorized for at least sixty days and any case that has had an investigation, has been referred to another unit and has had no contact for at least sixty days.

2.  Includes any case for which the investigation has been open without any documentation or contact for at least sixty days, any case involving in‑home services for which there has been no contact or services authorized for at least sixty days and any case involving foster care in which there has been no contact or any documentation entered in the child welfare automated system for at least sixty days.

For the purposes of this section, "open report" means a report that is under investigation or awaiting closure by a supervisor.

On or before September 30, 2017, and on or before the last day of every calendar quarter through June 30, 2018, the department of child safety shall present a report for review by the joint legislative budget committee on the progress made in increasing the number of filled FTE positions, meeting the caseload standard and reducing the number of backlog cases and out-of-home children.  The report shall include the number of backlog cases, the number of open reports, the number of out‑of‑home children and the caseworker workload on March 31, 2016 in comparison to the latest quarter.  The report shall provide the number of backlog cases by disposition, including the number of backlog cases in the investigation phase, the number of backlog cases associated with out‑of‑home placements and the number of backlog cases associated with in‑home cases.

To determine the caseworker workload, the department shall report the number of case-carrying caseworkers at each field office and the number of investigations, in-home cases and out-of-home children assigned to each field office.

The quarterly report shall provide the same information on the total number of filled FTE positions as is required by the monthly hiring report.

For backlog cases, the department's quarterly benchmark is 1,000 cases as of June 30, 2017 and thereafter.

For open reports, the department's benchmark is to have fewer than 8,000 open reports as of June 30, 2017 and thereafter.  The open reports benchmark represents the average number of incoming reports for each two month period beginning March 1, 2016 through February 28, 2017.

For out-of-home children, the department's benchmark is to reduce the number of children in out-of-home care by an average of an additional 2.0 percent every quarter with respect to the out-of-home care population as of December 31, 2016.  It is the intent of the legislature that the cumulative reduction in the out-of-home care population as compared to the population as of December 31, 2016 be 11.4 percent, or at or below 15,191 children, on or before June 30, 2018.

If the department of child safety has not submitted the quarterly report within thirty days after the last day of the calendar quarter, the director of the joint legislative budget committee shall inform the general accounting office of the department of administration, which shall withhold two percent of the department's operating lump sum quarterly budget allocation until the quarterly report is submitted.

Beginning on the seventh day of the month following the effective date of this act and on the seventh day of each month thereafter through June 30, 2018, the department of child safety shall issue to the governor, the chairpersons of the house of representatives appropriations and judiciary and public safety committees and the senate appropriations and health and human services committees and the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting a report on new hires and separations.  The report shall include the total number of FTE positions funded and the total number of FTE positions filled on the last day of each month.  The department shall also delineate new hires and separations by case-carrying caseworkers, hotline staff, caseworkers-in-training, assistant program managers, unit supervisors, case aides, office of child welfare investigations staff and administrative staff by function.

The amount appropriated for any line item may not be transferred to another line item or the operating budget unless the transfer is reviewed by the joint legislative budget committee.

Child safety expenditure authority includes all department funding sources excluding the state general fund, the federal child care and development fund block grant, the federal temporary assistance for needy families block grant, the child abuse prevention fund and the children and family services training program fund.

On or before September 15, 2017 and March 15, 2018, the department of child safety shall submit a report for review by the joint legislative budget committee on the department's progress in implementing recommendations included in the Moss-Adams audit.

Sec. 20.  STATE BOARD OF CHIROPRACTIC EXAMINERS

                                          2017-18               

FTE positions                                 5.0               

Lump sum appropriation               $    451,100               

Fund sources:

Board of chiropractic examiners

||fund                               $    451,100               

Sec. 21.  ARIZONA COMMUNITY COLLEGES

                                                    2017-18               

Equalization aid

Cochise                              $  5,210,200               

Graham                                 15,028,600               

Navajo                                  6,672,100               

Total - equalization aid                 $ 26,910,900

Operating state aid

Cochise                              $  4,589,600

Coconino                                1,731,100               

Gila                                      298,400               

Graham                                  2,288,300               

Mohave                                  1,195,500               

Navajo                                  1,649,000               

Pinal                                   1,621,400

Santa Cruz                                 96,800

Yavapai                                   639,400               

Yuma/La Paz                             2,622,100               

Total ‑ operating state aid              $ 16,731,600               

STEM and workforce programs state aid

Cochise                              $    986,400               

Coconino                                  409,000               

Gila                                      136,500

Graham                                    609,000               

Mohave                                    462,500               

Navajo                                    369,100               

Pinal                                      96,500

Santa Cruz                                 67,000

Yavapai                                   717,000               

Yuma/La Paz                              845,500               

Total – STEM and workforce programs

state aid                            $  4,698,500

Rural county reimbursement subsidy       $  1,273,800

Additional Gila workforce

  development aid                             250,000

Total appropriation – Arizona community

colleges                             $ 49,864,800               

Fund sources:

State general fund                   $ 49,864,800

Of the $1,273,800 appropriated to the rural county reimbursement subsidy line item, Apache county receives $699,300 and Greenlee county receives $574,500.

Sec. 22.  REGISTRAR OF CONTRACTORS

                                                    2017-18               

FTE positions                               105.6               

Operating lump sum appropriation     $ 11,147,800               

Office of administrative hearings

||costs                                 1,017,600               

Total appropriation ‑ registrar of

contractors                          $ 12,165,400               

Fund sources:

Registrar of contractors fund        $ 12,165,400               

Any transfer to or from the amount appropriated for the office of administrative hearings costs line item requires review by the joint legislative budget committee.

Sec. 23.  CORPORATION COMMISSION

                                                    2017-18               

FTE positions                               300.9               

Operating lump sum appropriation     $ 26,159,900               

Corporation filings, same-day

  service                                 397,300               

Utilities audits, studies,

  investigations and hearings            380,000*              

Total appropriation ‑ corporation commission   $ 26,937,200               

Fund sources:

State general fund                   $    611,600               

Arizona arts trust fund                    49,900               

Investment management regulatory

||and enforcement fund                    708,900               

Public access fund                      6,558,800               

Securities regulatory and

  enforcement fund                      4,909,600               

Utility regulation revolving fund      14,098,400

The $397,300 appropriated from the public access fund for the corporation filings, same-day service line item reverts to the public access fund established by section 10-122.01, Arizona Revised Statutes, at the end of fiscal year 2017-2018 if the commission has not established a same-day service pursuant to section 10‑122, Arizona Revised Statutes.

Sec. 24.  STATE DEPARTMENT OF CORRECTIONS

                                                    2017-18

FTE positions                                 9,541.0

Operating lump sum appropriation       $  788,985,200

Private prison per diem                   169,220,200

Inmate health care contracted

  services                                148,811,700

Total appropriation – state department

of corrections                         $1,107,017,100

Fund sources:

State general fund                 $1,055,469,400

State education fund for

  correctional education                  669,500

Alcohol abuse treatment fund              555,500

Penitentiary land fund                  2,062,500

State charitable, penal and

  reformatory institutions

  land fund                             2,661,500

Corrections fund                       30,312,300

Transition program fund                 2,400,100

Prison construction and operations

  fund                                 12,500,000

Inmate store proceeds fund                386,300

Before placing any inmates in out-of-state provisional beds, the department shall place inmates in all available prison beds in facilities that are located in this state and that house Arizona inmates, unless the out-of-state provisional beds are of a comparable security level and price.

The state department of corrections shall forward to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees and the director of the joint legislative budget committee a monthly report comparing department expenditures for the month and year‑to-date as compared to prior-year expenditures on or before the thirtieth of the following month.  The report shall be in the same format as the prior fiscal year and include an estimate of potential shortfalls, potential surpluses that may be available to offset these shortfalls and a plan, if necessary, for eliminating any shortfall without a supplemental appropriation.

On or before August 1, 2017, the state department of corrections shall provide a report on bed capacity to the joint legislative budget committee for its review.  The report shall reflect the bed capacity for each security classification by gender at each state-run and private institution, divided by rated and total beds.  The report shall include bed capacity data for June 30, 2016 and June 30, 2017 and the projected capacity for June 30, 2018, as well as the reasons for any change within that time period.  Within the total bed count, the department shall provide the number of temporary and special use beds.  If the department develops a plan after its August 1 report to close state‑operated prison rated beds or cancel or not renew contracts for privately operated prison beds, the state department of corrections shall submit a bed plan detailing the proposed bed closures for review by the joint legislative budget committee before implementing these changes.

One hundred percent of land earnings and interest from the penitentiary land fund shall be distributed to the state department of corrections in compliance with the enabling act and the Constitution of Arizona to be used for the support of state penal institutions.

Of the amount appropriated for the private prison per diem line item, $17,463,300 shall be used for the purpose of making a debt service payment on the financing agreement authorized by Laws 2016, chapter 119, section 24.

Twenty‑five percent of land earnings and interest from the state charitable, penal and reformatory institutions land fund shall be distributed to the state department of corrections in compliance with the enabling act and the Constitution of Arizona to be used for the support of state penal institutions.

Before the expenditure of any state education fund for correctional education monies in excess of $669,500, the state department of corrections shall report the intended use of the monies to the director of the joint legislative budget committee. 

Before implementing any changes in per diem rates for inmate health care contracted services, the state department of corrections shall submit its expenditure plan for review by the joint legislative budget committee.

Sec. 25.  BOARD OF COSMETOLOGY

                                                    2017-18               

FTE positions                                24.5               

Operating lump sum appropriation     $  1,805,200               

    Annual leave payout                        34,200

Total appropriation – board of cosmetology     $  1,839,400

Fund sources:

Board of cosmetology fund            $  1,839,400               

Sec. 26.  ARIZONA CRIMINAL JUSTICE COMMISSION

                                                    2017-18

FTE positions                                 9.0               

Operating lump sum appropriation     $  1,251,100               

State aid to county attorneys             973,700

Victim compensation and

  assistance                            4,220,600               

Total appropriation – Arizona criminal

justice commission                   $  6,445,400               

Fund sources:

Criminal justice enhancement fund    $    646,600               

Resource center fund                      604,500               

State aid to county attorneys fund        973,700

Victim compensation and assistance

||fund                                  4,220,600               

All victim compensation and assistance monies received by the Arizona criminal justice commission in excess of $4,220,600 in fiscal year 2017-2018 are appropriated to the crime victims program.  Before the expenditure of any victim compensation and assistance fund monies in excess of $4,220,600 in fiscal year 2017-2018, the Arizona criminal justice commission shall report the intended use of the monies to the joint legislative budget committee.

All monies received by the Arizona criminal justice commission in excess of $973,700 in fiscal year 2017-2018 from the state aid to county attorneys fund established by section 11-539, Arizona Revised Statutes, are appropriated to the state aid to county attorneys program.  Before the expenditure of any state aid to county attorneys fund monies in excess of $973,700, the Arizona criminal justice commission shall report the intended use of the monies to the joint legislative budget committee.

Sec. 27.  ARIZONA STATE SCHOOLS FOR THE DEAF AND THE BLIND

                                                    2017-18

FTE positions                               541.2

Administration/statewide             $  4,010,600

Phoenix day school for the deaf         9,477,700               

Tucson campus                          13,502,500               

Regional cooperatives                   1,001,400               

Preschool/outreach programs             4,325,600               

School bus replacement                    738,000

Voucher fund adjustment                   161,200

Total appropriation – Arizona state schools

for the deaf and the blind           $ 33,217,000               

Fund sources:

State general fund                   $ 21,378,100               

Schools for the deaf and the

  blind fund                           11,838,900               

Before the expenditure of any schools for the deaf and the blind fund monies in excess of $11,838,900 in fiscal year 2017-2018, the Arizona state schools for the deaf and the blind shall report to the joint legislative budget committee the intended use of the monies.

Sec. 28.  COMMISSION FOR THE DEAF AND THE HARD OF HEARING

                                                    2017-18               

FTE positions                                16.0               

Operating lump sum appropriation     $  4,412,300

Support services for the

  deaf-blind                              192,000               

Total appropriation – commission for the

deaf and the hard of hearing         $  4,604,300

Fund sources:

Telecommunication fund for

||the deaf                           $  4,604,300               

Sec. 29.  STATE BOARD OF DENTAL EXAMINERS

                                                    2017-18               

FTE positions                                11.0               

Lump sum appropriation               $  1,214,500               

Fund sources:

Dental board fund                    $  1,214,500               

Sec. 30.  OFFICE OF ECONOMIC OPPORTUNITY

                                                    2017-18

FTE positions                                 5.0

Lump sum appropriation               $    484,100

Fund sources:

State general fund                   $    484,100               

Sec. 31.  DEPARTMENT OF ECONOMIC SECURITY

                                                    2017-18

FTE positions                             4,289.4

Operating lump sum appropriation     $159,260,800

Administration

Attorney general legal services        10,996,600

Aging and adult services

Adult services                          9,431,900

Community and emergency services        3,724,000

Coordinated homeless services           2,522,600

Domestic violence prevention           14,003,700

Benefits and medical eligibility

Temporary assistance for needy

  families - cash benefits             27,736,400

Coordinated hunger services             1,754,600

Tribal pass-through funding             4,680,300

Child support enforcement

County participation                    8,740,200

Developmental disabilities

DDD operating lump sum                 23,693,000

DDD premium tax payment                27,628,800

Case management - medicaid             59,019,700

Home and community based

  services - medicaid               1,130,889,100

Institutional services –

  medicaid                             24,111,000

Medical services - medicaid           176,495,500

Arizona training program at

||Coolidge - medicaid                  15,735,100

Medicare clawback payments              4,043,000

Case management - state-only            3,893,700

Home and community based

  services - state-only                20,028,000

State-funded long-term care

  services                             26,559,600

Employment and rehabilitation services

JOBS                                   11,005,600

Child care subsidy                     98,396,600

Independent living rehabilitation

  services                              1,289,400

Rehabilitation services                 7,249,100

Workforce investment act

  services                             53,654,600

Total appropriation and expenditure

authority – department of

economic security                  $1,926,542,900

Fund sources:

State general fund                 $  573,736,000

Federal child care and

  development fund block grant        107,773,600

Federal temporary assistance for

  needy families block grant           72,964,700

Long-term care system fund             26,559,600

Public assistance collections

  fund                                    421,900

Special administration fund             2,928,700

Spinal and head injuries trust

  fund                                  2,323,700

Statewide cost allocation plan

  fund                                  1,000,000

Child support enforcement

  administration fund                  16,632,600

Domestic violence services fund         4,000,000

Workforce investment act grant         56,040,200

Child support enforcement

  administration fund expenditure

  authority                            42,299,500

Health services lottery

  monies fund                           2,800,000

Developmental disabilities

  medicaid expenditure authority    1,017,062,400

Aging and adult services

All domestic violence services fund monies in excess of $4,000,000 received by the department of economic security are appropriated for the domestic violence prevention line item.  Before the expenditure of these increased monies, the department of economic security shall report the intended use of monies in excess of $4,000,000 to the joint legislative budget committee.

The department of economic security shall report to the joint legislative budget committee on the amount of state and federal monies available statewide for domestic violence funding on or before December 15, 2017.  The report shall include, at a minimum, the amount of monies available and the state fiscal agent receiving those monies.

Benefits and medical eligibility

The operating lump sum appropriation may be expended on Arizona health care cost containment system eligibility determinations based on the results of the Arizona random moment sampling survey.

Child support enforcement

All state shares of retained earnings, fees and federal incentives in excess of $16,632,600 received by the division of child support enforcement are appropriated for operating expenditures.  New FTE positions may be authorized with the increased funding.  Before the expenditure of these increased monies, the department of economic security shall report the intended use of the monies to the joint legislative budget committee.

Developmental disabilities

The department shall report to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees and the director of the joint legislative budget committee any new placement into a state‑owned ICF-IID or the Arizona training program at the Coolidge campus in fiscal year 2017-2018 and the reason this placement, rather than a placement into a privately run facility for persons with developmental disabilities, was deemed as the most appropriate placement.  The department shall also report if no new placements were made.  The department shall make this report available on or before July 15, 2018.

The department shall report to the joint legislative budget committee on or before March 1 of each year on preliminary actuarial estimates of the capitation rate changes for the following fiscal year along with the reasons for the estimated changes.  For any actuarial estimates that include a range, the total range from minimum to maximum may not be more than two percent. Before implementation of any changes in capitation rates for the long-term care system, the department shall submit a report for review by the joint legislative budget committee. Before the department implements any change in policy affecting the amount, sufficiency, duration and scope of health care services and who may provide services, the department shall prepare a fiscal impact analysis on the potential effects of this change on the following year's capitation rates.  If the fiscal impact analysis demonstrates that this change will result in additional state costs of $500,000 or more for any fiscal year, the department shall submit the policy change for review by the joint legislative budget committee.

Before implementation of any developmental disabilities or long‑term care statewide provider rate adjustments that are not already specifically authorized by the legislature, court mandates or changes to federal law, the department shall submit a report for review by the joint legislative budget committee that includes, at a minimum, the estimated cost of the provider rate adjustment and the ongoing source of funding for the adjustment, if applicable.

Before transferring any monies in or out of the case management ‑ medicaid, case management – state-only, and DDD operating lump sum line items, the department of economic security shall submit a report for review by the joint legislative budget committee.

The department shall submit an expenditure plan to the joint legislative budget committee for review of any new division of developmental disabilities salary adjustments not previously reviewed by the joint legislative budget committee.

The department shall report to the joint legislative budget committee on or before August 1, 2017 the number of filled positions for case managers and non-case managers in the division of developmental disabilities as of June 30, 2017.  The department shall submit an expenditure plan of its staffing levels for review by the joint legislative budget committee if the department plans on hiring staff for non‑case manager, non-case aide, non‑case unit supervisor and non-case section manager positions above the staffing level indicated in the August 1, 2017 report.

Employment and rehabilitation services

It is the intent of the legislature that the combined number of children in child care assistance authorized pursuant to section 46‑803, subsections D and F, Arizona Revised Statutes, be maintained throughout the year at a minimum of 8,500 children.  The department shall prioritize child care assistance for families that qualify for assistance pursuant to section 46‑803, subsection F, Arizona Revised Statutes, on the waiting lists established pursuant to section 46‑803, subsection I, Arizona Revised Statutes.

All workforce investment act grant monies that are received by this state in excess of $56,040,200 are appropriated to the workforce investment act services line item.  Before the expenditure of these increased monies, the department of economic security shall report the intended use of monies in excess of $56,040,200 to the joint legislative budget committee.

Departmentwide

The above appropriations are in addition to monies granted to the state by the federal government for the same purposes but are deemed to include the sums deposited in the state treasury to the credit of the department of economic security pursuant to section 42‑5029, Arizona Revised Statutes.

The department of economic security shall forward to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees and the director of the joint legislative budget committee a monthly report comparing total expenditures for the month and year‑to‑date as compared to prior-year totals on or before the thirtieth of the following month.  The report shall include an estimate of potential shortfalls in entitlement programs and potential federal and other monies, such as the statewide assessment for indirect costs, and any projected surplus in state-supported programs that may be available to offset these shortfalls and a plan, if necessary, for eliminating any shortfall without a supplemental appropriation.

Sec. 32.  STATE BOARD OF EDUCATION

                                                    2017-18               

FTE positions                                 6.0               

Lump sum appropriation               $  1,142,800               

Fund sources:

State general fund                   $  1,142,800               

Sec. 33.  SUPERINTENDENT OF PUBLIC INSTRUCTION

                                                    2017-18

FTE positions                               171.9

Operating lump sum appropriation   $   12,868,800

Fund sources:

State general fund                 $    8,856,300

Teacher certification fund                514,600

Department of education empowerment

  scholarship account fund                797,900

Department of education professional

  development revolving fund            2,700,000

The operating lump sum appropriation includes $683,900 and 8.5 FTE positions for average daily membership auditing and $200,000 and 2 FTE positions for information technology security services.

The amount appropriated for the department's operating budget includes $500,000 for technical assistance and state level administration of the K-3 reading program established pursuant to section 15-211, Arizona Revised Statutes.

Basic state aid                    $2,900,114,200

Fund sources:

State general fund                 $2,664,770,700

Permanent state school fund           235,343,500

The above appropriation provides basic state support to school districts for maintenance and operations funding as provided by section 15‑973, Arizona Revised Statutes, and includes an estimated $235,343,500 in expendable income derived from the permanent state school fund and from state trust lands pursuant to section 37-521, subsection B, Arizona Revised Statutes, for fiscal year 2017-2018.

Monies derived from the permanent state school fund and any other nonstate general fund revenue source that is dedicated to fund basic state aid shall be expended, whenever possible, before the expenditure of state general fund monies.

Except as required by section 37-521, Arizona Revised Statutes, all monies received during the fiscal year from national forests, interest collected on deferred payments on the purchase of state lands, income from the investment of permanent state school funds as prescribed by the enabling act and the Constitution of Arizona and all monies received by the superintendent of public instruction from whatever source, except monies received pursuant to sections 15‑237 and 15-531, Arizona Revised Statutes, when paid into the state treasury are appropriated for apportionment to the various counties in accordance with law.  An expenditure may not be made except as specifically authorized above.

Additional teacher salary increase   $ 34,000,000

Each school district or charter school shall use its allocation from this line item only to increase the salary of each teacher who taught at an Arizona school district or charter school during the 2016-2017 school year and who teaches at the school district or charter school during the 2017-2018 school year by 1.06 percent in fiscal year 2017-2018.  The 1.06 percent salary increase that a school district or charter school provides to each eligible teacher from this line item shall be in addition to any other salary increase that the school district or charter school would have provided to the teacher for the 2017-2018 school year apart from this line item.  The 1.06 percent salary increase shall supplement and not supplant any salary increase that the school district or charter school would have provided to the teacher for the 2017-2018 school year apart from this line item.

The department of education shall use the appropriated amount to provide school districts and charter schools with funding for additional teacher salary increases for fiscal year 2017-2018.

On or before December 1, 2017, the department shall allocate to each school district and charter school in this state the amount of funding needed to increase by 1.06 percent the salary of each teacher who teaches at the school district or charter school during the 2017-2018 school year and who taught at an Arizona school district or charter school during the 2016‑2017 school year, including the amount of funding needed to pay the employer share of related increases in employee-related expenses for the Arizona state retirement system or other employee retirement systems and the federal insurance contributions act.  The employer share of employee‑related retirement system expenses for a teacher not participating in the Arizona state retirement system may not exceed expenses for a teacher participating in the Arizona state retirement system.  The 1.06 percent salary increase for each eligible teacher shall be computed by the school district or charter school based on the teacher's teaching salary for the 2016-2017 school year.  The department shall add the amount computed for each school district and charter school pursuant to this paragraph to the base support level that otherwise would be computed for the school district or charter school for fiscal year 2017-2018 pursuant to section 15-943 or 15-943.02, Arizona Revised Statutes.

The members of a school district governing board or a charter school governing body shall conduct a separate vote regarding the allocation of monies that it receives from this line item.  It also shall notify teachers of the scheduled date and time of action of the board or body for this issue and shall transmit a notice of public hearing to the department of education for posting on the department's website at least ten days before the hearing.  If the school district or charter school maintains a website, the school district or charter school shall post on its website the notice of the public hearing.

The members of the governing board of a school district or the governing body of a charter school shall attest on the page of the school district's or charter school's fiscal year 2017-2018 budget that the members sign that the budget adopted by the school district or charter school for fiscal year 2017-2018 meets the requirements of this line item. This attestation shall also pertain to the following information provided by the school district or charter school regarding teachers who taught at an Arizona school district or charter school during the 2016-2017 school year and who teach at the school district or charter school during the 2017-2018 school year: the number of teachers, the total amount of teacher salaries for the 2016-2017 school year, the total amount of teacher salaries for the 2017-2018 school year apart from this line item, the total of the employer share of related increases in employee‑related expenses for required contributions to employee retirement systems and the federal insurance contributions act and the total amount of funding needed to increase by 1.06 percent the salary of each teacher who teaches at the school district or charter school during the 2017‑2018 school year and who taught at an Arizona school district or charter school during the 2016‑2017 school year.

A school district or charter school shall submit to the department of education the school district's or charter school's adopted budget.  The department shall distribute funding for additional teacher salary increases for fiscal year 2017-2018 based on the adopted budget.  This calculation is subject to the independent annual audit of the school district or charter school pursuant to section 15-914, Arizona Revised Statutes.  Any audit findings regarding the miscalculation of this line item shall be reported to the department of education and are subject to a budget correction pursuant to section 15‑915, Arizona Revised Statutes.

Monies that a school district receives from this line item shall be included in the school district's general budget limit for the maintenance and operation fund for fiscal year 2017-2018 pursuant to section 15-947, Arizona Revised Statutes.  Monies that a joint technical education district receives from this line item shall be included in the joint technical education district's general budget limit for the maintenance and operation fund for fiscal year 2017-2018 pursuant to section 15‑947.01, Arizona Revised Statutes.

The legislature and governor intend for this appropriation to result in an increase in the compensation of Arizona's public schoolteachers for fiscal year 2017-2018 and intend to include funding for an additional 1.06 percent teacher salary increase in fiscal year 2018-2019.  Appropriations for teacher salary increases in fiscal year 2018-2019 shall be distributed in the same manner as distributions for fiscal year 2017-2018.

For the purposes of this footnote, "teacher" means a person who was eligible to be included in the year‑end full‑time equivalent teacher count of a school district or charter school for the 2016‑2017 school year in the annual financial report of a school district or charter school for fiscal year 2016‑2017 and who teaches at a school district or charter school during the 2017-2018 school year.  Teacher does not include purchased services personnel or substitute teachers.

Results-based funding                $ 37,600,000

Additional state aid –

  homeowner's rebate                  386,215,500

Additional state aid –

  1 percent cap                        24,330,500

Special education fund                 32,242,100

Other state aid to districts              983,900

Accountability and achievement

  testing                              16,420,800

Fund sources:

State general fund                   $  9,420,800

Proposition 301 fund                    7,000,000

Before making any changes to the achievement testing program that will increase program costs, the department of education and the state board of education shall submit the estimated fiscal impact of those changes to the joint legislative budget committee for review.

Adult education                      $  4,498,200

Alternative teacher development

  program                                 500,000

Arizona structured English

  immersion fund                        4,960,400

College credit by examination

  incentive program                     5,000,000

Early literacy                          8,000,000

The English learner administration      6,495,000

The department of education shall use the appropriated amount to provide English language acquisition services for the purposes of section 15‑756.07, Arizona Revised Statutes, and for the costs of providing English language proficiency assessments, scoring and ancillary materials as prescribed by the department of education to school districts and charter schools for the purposes of title 15, chapter 7, article 3.1, Arizona Revised Statutes.  The department of education may use a portion of the appropriated amount to hire staff or contract with a third party to carry out the purposes of section 15‑756.07, Arizona Revised Statutes. Notwithstanding section 41‑192, Arizona Revised Statutes, the superintendent of public instruction also may use a portion of the appropriated amount to contract with one or more private attorneys to provide legal services in connection with the case of Flores v. State of Arizona, No. CIV 92-596-TUC-RCC.

Geographic literacy                $      100,000

The department of education shall use the appropriated onetime amount to issue a grant to a statewide geographic alliance for the purpose of strengthening geographic literacy in this state.  The appropriated amount is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations. 

JTED completion grants             $    1,000,000

Monies appropriated for joint technical education district completion grants are intended to help fund program completion for students who complete at least fifty percent of a joint technical education program before graduating from high school and who successfully complete the joint technical education district program after graduating from high school.  The department of education shall develop application procedures for the joint technical education district completion grant program.  The procedures shall award grant funding only after an eligible student has successfully completed a joint technical education district program.

If the appropriated amount is insufficient to fund all grant requests from joint technical education districts, the department of education shall reduce grant amounts on a proportional basis in order to cap total statewide allocations at $1,000,000.

The appropriated amount is exempt from the provisions of section 35‑190, Arizona Revised Statutes, relating to lapsing of appropriations.

JTED soft capital and equipment    $    1,000,000

The department of education shall distribute the appropriated amount to joint technical education districts with fewer than two thousand average daily membership pupils for soft capital and equipment expenses. The appropriated amount shall be allocated on a pro rata basis based on the average daily membership of eligible joint technical education districts.

School safety program              $    4,145,600

State block grant for vocational

  education                            11,576,300

Teacher certification              $    1,828,100

Fund sources:

Teacher certification fund         $    1,828,100

Tribal college dual enrollment

  program                          $      250,000

Fund sources:

Tribal college dual enrollment

  program fund                     $      250,000

Total appropriation ‑ superintendent

of public instruction              ______________ 

                                   $3,494,129,400

Fund sources:

State general fund                 $3,245,695,300

Proposition 301 fund                    7,000,000

Permanent state school fund           235,343,500

Teacher certification fund              2,342,700

Tribal college dual enrollment

  program fund                            250,000

Department of education empowerment

  scholarship account fund                797,900

Department of education professional

  development revolving fund            2,700,000

After review by the joint legislative budget committee, in fiscal year 2017-2018, the department may use a portion of its fiscal year 2017‑2018 state general fund appropriations for basic state aid or additional state aid to fund a shortfall in funding for basic state aid or additional state aid, if any, that occurred in fiscal year 2016-2017. 

The department shall provide an updated report on its budget status every three months for the first half of each fiscal year and every month thereafter to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees, the director of the joint legislative budget committee and the director of the governor's office of strategic planning and budgeting.  Each report shall include, at a minimum, the department's current funding surplus or shortfall projections for basic state aid and other major formula-based programs and is due thirty days after the end of the applicable reporting period.

Within fifteen days after each apportionment of state aid that occurs pursuant to section 15-973, subsection B, Arizona Revised Statutes, the department shall post on its website the amount of state aid apportioned to each recipient and the underlying data.

Sec. 34.  DEPARTMENT OF EMERGENCY AND MILITARY AFFAIRS

                                                    2017-18               

FTE positions                                63.1               

Administration                       $  1,818,000               

Emergency management                      725,200

Military affairs                        3,021,000

Matching funds                          1,540,900

Total appropriation – department of

emergency and military affairs       $  7,105,100

Fund sources:

State general fund                   $  7,105,100

The department of emergency and military affairs appropriation includes $1,700,000 for service contracts.  This amount is exempt from the provisions of section 35‑190, Arizona Revised Statutes, relating to lapsing of appropriations, except that all fiscal year 2017-2018 monies remaining unexpended and unencumbered on December 31, 2018 revert to the state general fund.

Sec. 35.  DEPARTMENT OF ENVIRONMENTAL QUALITY

                                                    2017-18               

FTE positions                               322.0               

Operating lump sum appropriation     $ 46,290,400

Safe drinking water program             1,800,000

Emissions control contractor

  payment                              21,119,500

Total appropriation – department of

environmental quality                $ 69,209,900               

Fund sources:

Air quality fund                     $  5,361,400

Emergency response fund                   132,800               

Emissions inspection fund              26,570,500               

Hazardous waste management fund         1,734,600               

Indirect cost recovery fund            13,375,200               

Permit administration fund              7,114,100               

Recycling fund                          1,352,900

Safe drinking water program

  fund                                  1,800,000               

Solid waste fee fund                    1,239,000               

Underground storage tank

  revolving fund                           22,000               

Water quality fee fund                 10,507,400               

Before the expenditure of any monies from the safe drinking water program line item, the department of environmental quality shall submit an expenditure plan for review by the joint legislative budget committee.

Pursuant to section 49-282, Arizona Revised Statutes, the department of environmental quality shall submit a fiscal year 2018-2019 budget for the water quality assurance revolving fund before September 1, 2017, for review by the senate and house of representatives appropriations committees.

The department of environmental quality shall report annually on the progress of WQARF activities, including emergency response, priority site remediation, cost recovery activity, revenue and expenditure activity and other WQARF-funded program activity.  The department shall submit the fiscal year 2017-2018 report to the joint legislative budget committee on or before September 1, 2017.  This report shall also include a budget for the WQARF program that is developed in consultation with the WQARF advisory board.  This budget shall specify the monies budgeted for each listed site during fiscal year 2017-2018.  In addition, the department and the advisory board shall prepare and submit to the joint legislative budget committee, on or before October 1, 2017, a report in a table format summarizing the current progress on remediation of each listed site on the WQARF registry.  The table shall include the stage of remediation for each site at the end of fiscal year 2016-2017, indicate whether the current stage of remediation is anticipated to be completed in fiscal year 2017‑2018 and indicate the anticipated stage of remediation at each listed site at the end of fiscal year 2017-2018, assuming fiscal year 2017-2018 funding levels.  The department and advisory board may include other relevant information about the listed sites in the table.

All permit administration fund monies received by the department of environmental quality in excess of $10,827,400 in fiscal year 2017-2018 are appropriated to the department.  Before the expenditure of permit administration fund monies in excess of $10,827,400 in fiscal year 2017‑2018, the department of environmental quality shall report the intended use of the monies to the joint legislative budget committee.

All indirect cost recovery fund monies received by the department of environmental quality in excess of $13,375,200 in fiscal year 2017-2018 are appropriated to the department.  Before the expenditure of indirect cost recovery fund monies in excess of $13,375,200 in fiscal year 2017‑2018, the department of environmental quality shall report the intended use of the monies to the joint legislative budget committee.

Sec. 36.  GOVERNOR'S OFFICE OF EQUAL OPPORTUNITY

                                                    2017-18               

FTE positions                                 4.0               

Lump sum appropriation               $    189,100               

Fund sources:

State general fund                   $    189,100               

Sec. 37.  STATE BOARD OF EQUALIZATION

                                                    2017-18               

FTE positions                                 7.0               

Lump sum appropriation               $    643,000               

Fund sources:

State general fund                   $    643,000               

Sec. 38.  BOARD OF EXECUTIVE CLEMENCY

                                                    2017-18

FTE positions                                14.0               

Lump sum appropriation               $    952,600               

Fund sources:

State general fund                   $    952,600               

The board of executive clemency shall report to the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting on or before November 1, 2017 on the total number and types of cases the board reviewed in fiscal year 2016-2017.

Sec. 39.  ARIZONA EXPOSITION AND STATE FAIR BOARD

                                                    2017-18               

FTE positions                               184.0               

Lump sum appropriation               $ 12,113,300               

Fund sources:

Arizona exposition and state

  fair fund                          $ 12,113,300               

Sec. 40.  DEPARTMENT OF FINANCIAL INSTITUTIONS

                                                    2017-18               

FTE positions                                69.1               

Operating lump sum appropriation     $  4,681,700               

Real estate appraisal                     815,100

Total appropriation – department of

financial institutions               $  5,496,800               

Fund sources:

State general fund                   $  1,478,200               

Board of appraisal fund                   815,100

Financial services fund                 3,203,500

The department of financial institutions shall assess and set fees to ensure that monies deposited in the state general fund will equal or exceed the department's expenditure from the state general fund.

Sec. 41.  ARIZONA DEPARTMENT OF FORESTRY AND FIRE MANAGEMENT

                                          2017-18               

FTE positions                                88.0               

Operating lump sum appropriation     $  3,124,300               

Environmental county grants               250,000

Inmate firefighting crews                 686,200

Postrelease firefighting crews          1,465,100

Fire suppression                        1,065,000

State fire marshal                        742,600

State fire school                         172,100

Hazardous vegetation removal            1,350,000

Total appropriation – Arizona department

of forestry and fire management      $  8,855,300

Fund sources:

State general fund                   $  8,855,300

The appropriation for the hazardous vegetation removal line item is exempt from the provisions of section 35‑190, Arizona Revised Statutes, relating to lapsing of appropriations, through June 30, 2019.

Sec. 42.  STATE BOARD OF FUNERAL DIRECTORS AND EMBALMERS

                                          2017-18               

FTE positions                                 4.0               

Lump sum appropriation               $    373,300               

Fund sources:

Board of funeral directors' and

||embalmers' fund                    $    373,300               

Sec. 43.  ARIZONA GAME AND FISH DEPARTMENT

                                                    2017-18               

FTE positions                               273.5               

Operating lump sum appropriation     $ 41,773,300               

Game and fish trucks                      485,700

Watercraft safety equipment               701,000               

Watercraft grants                       1,000,000               

Total appropriation – Arizona game and fish

department                           $ 43,960,000               

Fund sources:

Capital improvement fund             $  1,001,200

Game and fish fund                     36,800,100               

Wildlife endowment fund                    16,200               

Watercraft licensing fund               5,796,700               

Game, non-game, fish and

  endangered species fund                 345,800               

Sec. 44.  DEPARTMENT OF GAMING

                                                    2017-18

FTE positions                               155.8               

Operating lump sum appropriation     $  8,295,500               

Additional operating expenses             768,400

Casino operations certification         2,081,800               

County fairs livestock and

  agriculture promotion                 1,779,500

Division of racing                      1,886,000

Problem gambling                        2,287,000               

Total appropriation – department of gaming     $ 17,098,200               

Fund sources:

State general fund                   $  1,779,500

Tribal-state compact fund               2,081,800               

Arizona benefits fund                  11,050,900               

State lottery fund                        300,000               

Racing regulation fund                  1,886,000

The department of gaming shall report to the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting on or before December 1, 2017 on the expected amount and purpose of expenditures from the additional operating expenses line item for fiscal year 2017-2018.  The report shall include the projected line item detail.

The amount appropriated to the county fairs livestock and agriculture promotion line item is for deposit in the county fairs livestock and agriculture promotion fund established by section 5-113, Arizona Revised Statutes, and to be administered by the office of the governor.

Sec. 45.  OFFICE OF THE GOVERNOR

                                                    2017-18

Lump sum appropriation              $  6,849,900*              

Fund sources:

State general fund                   $  6,849,900               

Included in the lump sum appropriation of $6,849,900 for fiscal year 2017-2018 is $10,000 for the purchase of mementos and items for visiting officials.

Sec. 46.  GOVERNOR'S OFFICE OF STRATEGIC PLANNING AND BUDGETING

                                                    2017-18               

FTE positions                                22.0               

Lump sum appropriation              $  1,994,000*              

Fund sources:

State general fund                   $  1,994,000               

Sec. 47.  DEPARTMENT OF HEALTH SERVICES

                                                    2017-18               

FTE positions                             1,065.5               

Operating lump sum appropriation     $ 46,603,200               

Public health/family health

Adult cystic fibrosis care                105,200

AIDS reporting and surveillance         1,000,000

Alzheimer's disease research            2,125,000

Breast and cervical cancer and

  bone density screening                1,369,400

County tuberculosis provider care

  and control                             590,700

Emergency medical services local

  allocation                              442,000

Folic acid program                        400,000

High-risk perinatal services            2,543,400

Newborn screening program               7,210,300

Nonrenal disease management               198,000

Nursing care special projects             100,000

Poison control centers funding            990,000

Renal dental care and nutrition

  supplements                             300,000

Renal transplant drugs                    183,000

State loan repayment program            1,000,000

Arizona state hospital

Arizona state hospital –

  operating                            60,805,600

Arizona state hospital –

  restoration to competency               900,000

Arizona state hospital –

  sexually violent persons              9,639,100

Total appropriation - department of                       

health services                    $  136,504,900

Fund sources:                                       

State general fund                 $   86,734,700

Arizona state hospital fund             6,762,000

Arizona state hospital land fund          970,000

Capital outlay stabilization fund       1,559,900

Child fatality review fund                 94,700

DHS indirect cost fund                  9,546,100

Emergency medical services

  operating fund                        5,707,900

Environmental laboratory licensure

  revolving fund                          924,200

Federal child care and development

  fund block grant                        872,300

Health services licensing fund          9,232,300

Newborn screening program fund          7,643,100

Nursing care institution resident               

  protection revolving fund               138,200

Tobacco tax and health care fund -

  health research account               2,000,000

Tobacco tax and health care fund -

  medically needy account                 700,000

Vital records electronic systems

  fund                                  3,619,500

Public health/family health

The department of health services may use up to four percent of the amount appropriated for nonrenal disease management for the administrative costs to implement the program.

Of the $2,125,000 for Alzheimer's disease research, $2,000,000 is from the tobacco tax and health care fund – health research account established by section 36-773, Arizona Revised Statutes.

Arizona state hospital

In addition to the appropriation for the department of health services, earnings on state lands and interest on the investment of the permanent state land funds are appropriated to the Arizona state hospital in compliance with the enabling act and the Constitution of Arizona.

Departmentwide

The department of health services shall electronically forward to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees and the director of the joint legislative budget committee a monthly report comparing total expenditures for the month and year‑to-date as compared to prior-year totals on or before the thirtieth of the following month.  The report shall include an estimate of potential shortfalls in programs, potential federal and other monies, such as the statewide assessment for indirect costs, that may be available to offset these shortfalls, and a plan, if necessary, for eliminating any shortfall without a supplemental appropriation.

Sec. 48.  ARIZONA HISTORICAL SOCIETY

                                          2017-18

FTE positions                                50.9               

Operating lump sum appropriation     $  2,114,100               

Field services and grants                  66,000               

Papago park museum                        542,800

Total appropriation - Arizona historical

society                              $  2,722,900               

Fund sources:

State general fund                   $  2,722,900               

Sec. 49.  PRESCOTT HISTORICAL SOCIETY

                                                    2017-18               

FTE positions                                13.0               

Lump sum appropriation               $    824,500               

Fund sources:

State general fund                   $    824,500               

Sec. 50.  BOARD OF HOMEOPATHIC AND INTEGRATED MEDICINE EXAMINERS

                                                    2017-18               

FTE positions                                 1.0               

Lump sum appropriation               $     87,300               

Fund sources:

Board of homeopathic and

  integrated medicine

  examiners' fund                    $     87,300               

Sec. 51.  ARIZONA DEPARTMENT OF HOUSING

                                                    2017-18               

FTE positions                                20.0               

Lump sum appropriation               $  1,129,900               

Fund sources:

State general fund                   $    811,400               

Housing trust fund                        318,500               

Sec. 52.  INDUSTRIAL COMMISSION OF ARIZONA

                                                    2017-18               

FTE positions                               235.6               

Lump sum appropriation               $ 19,881,300               

Fund sources:

Administrative fund                  $ 19,881,300               

Sec. 53.  DEPARTMENT OF INSURANCE

                                                    2017-18

FTE positions                                72.3               

Lump sum appropriation               $  5,824,300               

Fund sources:

State general fund                   $  5,824,300               

Sec. 54.  ARIZONA JUDICIARY

                                                    2017-18               

Supreme court

FTE positions                               183.0

Operating lump sum appropriation     $ 13,861,100

Automation                             19,977,700

County reimbursements                     187,900

Court appointed special advocate        3,262,900

Domestic relations                        613,400

State foster care review board          3,178,500

Commission on judicial conduct            498,600

Judicial nominations and

  performance review                      409,100

Model court                               437,600

State aid                               5,648,500

Total appropriation – supreme court            $ 48,075,300               

Fund sources:

State general fund                   $ 18,716,500

Confidential intermediary and

  fiduciary fund                          488,900               

Court appointed special advocate

  fund                                  3,343,200

Criminal justice enhancement fund       4,365,200               

Defensive driving school fund           4,198,500

Judicial collection enhancement

  fund                                 14,017,900               

State aid to the courts fund            2,945,100

On or before September 1, 2017, the supreme court shall report to the joint legislative budget committee on current and future automation projects coordinated by the administrative office of the courts.  The report shall include a list of court automation projects receiving or anticipated to receive state monies in the current or next two fiscal years as well as a description of each project, the number of FTE positions, the entities involved and the goals and anticipated results for each automation project.  The report shall be submitted in one summary document.  The report shall indicate each project's total multiyear cost by fund source and budget line item, including any prior-year, current‑year and future-year expenditures.

Automation expenses of the judiciary shall be funded only from the automation line item.  Monies in the operating lump sum appropriation or other line items intended for automation purposes shall be transferred to the automation line item before expenditure.

Included in the operating lump sum appropriation for the supreme court is $1,000 for the purchase of mementos and items for visiting officials.

Of the $187,900 appropriated for county reimbursements, state grand jury is limited to $97,900 and capital postconviction relief is limited to $90,000.

Court of appeals

FTE positions                               136.8

Division one                             $ 10,155,900

Division two                             $  4,422,200

Total appropriation – court of appeals         $ 14,578,100

Fund sources:

State general fund                   $ 14,578,100

Of the 136.8 FTE positions for fiscal year 2017-2018, 98.3 FTE positions are for division one and 38.5 FTE positions are for division two.

Superior court

FTE positions                               137.5

Operating lump sum appropriation     $  4,212,400

Judges' compensation                    8,399,500

Centralized service payments            3,458,000

Adult standard probation               17,666,600

Adult intensive probation              10,565,100

Community punishment                    2,310,300

Court-ordered removals                     75,000

Interstate compact                        427,500

Drug court                                993,600

Juvenile standard probation             3,610,400

Juvenile intensive probation            5,352,000

Juvenile treatment services            19,960,900

Juvenile family counseling                500,000

Juvenile crime reduction                3,308,000

Juvenile diversion consequences         8,157,800

Special water master                      190,700

Total appropriation ‑ superior court           $ 89,187,800

Fund sources:

State general fund                   $ 77,234,500

Criminal justice enhancement fund       5,435,200

Drug treatment and education fund         502,900

Judicial collection enhancement

  fund                                  6,015,200

Operating budget

All expenditures made by the administrative office of the courts for the administration of superior court line items shall be funded only from the superior court operating budget.  Monies in superior court line items intended for this purpose shall be transferred to the superior court operating budget before expenditure.

Judges

Of the 137.5 FTE positions, 82 FTE positions represent superior court judges in counties with a population of less than two million persons.  One‑half of those judges' salaries are provided by state general fund appropriations pursuant to section 12‑128, Arizona Revised Statutes.  This FTE position clarification does not limit the counties' ability to add judges pursuant to section 12‑121, Arizona Revised Statutes.

All monies in the judges' compensation line item shall be used to pay for the fifty percent state share of superior court judges' salaries, elected officials' retirement plan costs and related state benefit costs for judges in counties with a population of less than two million persons.  Monies in the operating lump sum appropriation or other line items intended for this purpose shall be transferred to the judges' compensation line item before expenditure.

Probation

Monies appropriated to juvenile treatment services and juvenile diversion consequences shall be deposited in the juvenile probation services fund established by section 8‑322, Arizona Revised Statutes.

Receipt of state probation monies by the counties is contingent on the county maintenance of fiscal year 2003-2004 expenditure levels for each probation program.  State probation monies are not intended to supplant county dollars for probation programs.

On or before November 1, 2017, the administrative office of the courts shall report to the joint legislative budget committee the fiscal year 2016‑2017 actual, fiscal year 2017-2018 estimated and fiscal year 2018-2019 requested amounts for each of the following:

1.  On a county-by-county basis, the number of authorized and filled case carrying probation positions and non-case carrying probation positions, distinguishing between adult standard, adult intensive, juvenile standard and juvenile intensive.  The report shall indicate the level of state probation funding, other state funding, county funding and probation surcharge funding, for those positions.

2.  Total receipts and expenditures by county and fund source for the adult standard, adult intensive, juvenile standard and juvenile intensive probation line items, including the amount of personal services spent from each revenue source of each account.

3.  The amount of monies from the adult standard, adult intensive, juvenile standard and juvenile intensive probation line items that the office does not distribute as direct aid to counties.  The report shall delineate how the office spends these monies that are not distributed as direct aid to counties.

All centralized service payments made by the administrative office of the courts on behalf of counties shall be funded only from the centralized service payments line item.  Centralized service payments include only training, motor vehicle payments, CORP review board funding, LEARN funding, research, operational reviews and GPS vendor payments.  This footnote does not apply to treatment or counseling services payments made from the juvenile treatment services and juvenile diversion consequences line items.  Monies in the operating lump sum appropriation or other line items intended for centralized service payments shall be transferred to the centralized service payments line item before expenditure.

All monies in the adult standard probation, adult intensive probation, interstate compact, juvenile standard probation and juvenile intensive probation line items shall be used only as pass-through monies to county probation departments.  Monies in the operating lump sum appropriation or other line items intended as pass-through for the purpose of administering a county probation program shall be transferred to the appropriate probation line item before expenditure.

On or before February 1, 2018, the administrative office of the courts shall report to the joint legislative budget committee on county‑approved salary adjustments provided to probation officers since the last report on September 30, 2016.  The report shall include, for each county, the:

1.  Approved percentage salary increase by year.

2.  Net increase in the amount allocated to each probation department by the administrative office of the courts for each applicable year.

3.  Average number of probation officers by applicable year.

4.  Average salary of probation officers for each applicable year.

Sec. 55.  DEPARTMENT OF JUVENILE CORRECTIONS

                                                    2017-18               

FTE positions                               738.5

Lump sum appropriation               $ 35,571,400

Fund sources:

State general fund                   $ 19,180,400

Department of juvenile corrections

  local cost sharing fund              11,260,000

State charitable, penal and

  reformatory institutions

  land fund                             3,011,300

Criminal justice enhancement fund         531,300

State education fund for committed

  youth                                 1,588,200

Twenty‑five percent of land earnings and interest from the state charitable, penal and reformatory institutions land fund shall be distributed to the department of juvenile corrections, in compliance with section 25 of the enabling act and the Constitution of Arizona, to be used for the support of state juvenile institutions and reformatories.

Sec. 56.  STATE LAND DEPARTMENT

                                                    2017-18               

FTE positions                               129.7               

Operating lump sum appropriation     $ 15,148,600               

Natural resource conservation

  districts                               650,000               

CAP user fees                             994,400               

Due diligence fund                        500,000               

Professional service contracts            250,000               

Reassessment of federal permits           750,000               

Right-of-way digitization                 450,000

Streambed navigability litigation         220,000

Survey assets                             500,000               

Workflow digitization                     500,000               

Total appropriation ‑ state land department    $ 19,963,000               

Fund sources:

State general fund                   $ 12,715,900               

Environmental special plate fund          260,600               

Due diligence fund                        500,000               

Trust land management fund              6,486,500

The appropriation includes $994,400 for central Arizona project user fees in fiscal year 2017-2018.  For fiscal year 2017-2018, from municipalities that assume their allocation of central Arizona project water for every dollar received as reimbursement to the state for past central Arizona water conservation district payments, one dollar reverts to the state general fund in the year that the reimbursement is collected.

Of the amount appropriated for natural resource conservation districts in fiscal year 2017-2018, $30,000 shall be used to provide grants to natural resource conservation district environmental education centers.

Sec. 57.  LEGISLATURE

                                          2017-18

Senate

Lump sum appropriation              $  9,408,500*               

Fund sources:

State general fund                   $  9,408,500               

Included in the lump sum appropriation of $9,408,500 for fiscal year 2017-2018 is $1,000 for the purchase of mementos and items for visiting officials.

House of representatives

Lump sum appropriation              $ 13,201,500*               

Fund sources:

State general fund                   $ 13,201,500               

Included in the lump sum appropriation of $13,201,500 for fiscal year 2017-2018 is $1,000 for the purchase of mementos and items for visiting officials.

Legislative council

FTE positions                                49.0               

Operating lump sum appropriation     $  7,392,500               

Ombudsman-citizens aide office            822,900               

Total appropriation – legislative                         

council                             $  8,215,400*               

Fund sources:

State general fund                   $  8,215,400               

Dues for the council of state governments may be expended only on an affirmative vote of the legislative council.

It is the intent of the legislature that the ombudsman‑citizens aide prioritize the investigation and processing of complaints relating to the department of child safety.

Joint legislative budget committee

FTE positions                                29.0               

Lump sum appropriation              $  2,488,300*               

Fund sources:

State general fund                   $  2,488,300               

Auditor general

FTE positions                               188.8               

Lump sum appropriation              $ 18,439,000*                

Fund sources:

State general fund                   $ 18,439,000               

Included in the lump sum appropriation is funding to pay state rent at the statewide rate.

The sum of $680,000 and 6 FTE positions are appropriated from the state general fund in fiscal year 2018-2019 to the auditor general for operating expenditures.

Sec. 58.  DEPARTMENT OF LIQUOR LICENSES AND CONTROL

                                                    2017-18

FTE positions                                45.2               

Lump sum appropriation               $  3,007,400               

Fund sources:

Liquor licenses fund                 $  3,007,400               

Sec. 59.  ARIZONA STATE LOTTERY COMMISSION

                                                    2017-18

FTE positions                                98.8

Operating lump sum appropriation     $  8,353,700

Advertising                            15,500,000

Total appropriation ‑ Arizona state

lottery commission                   $ 23,853,700

Fund source:

State lottery fund                   $ 23,853,700

An amount equal to twenty percent of tab ticket sales is appropriated for payment of sales commissions to charitable organizations.  This amount is currently estimated to be $1,468,700 in fiscal year 2017‑2018.

An amount equal to 3.05 percent of actual instant ticket sales is appropriated for the printing of instant tickets or for contractual obligations concerning instant ticket distribution.  This amount is currently estimated to be $19,894,400 in fiscal year 2017-2018.

An amount equal to a percentage of actual online game sales as determined by contract is appropriated for payment of online vendor fees. This amount is currently estimated to be $10,019,000, or 4.256 percent of actual online ticket sales, in fiscal year 2017-2018.

An amount equal to 6.5 percent of gross lottery game sales, minus tab tickets, is appropriated for payment of sales commissions to ticket retailers.  An additional amount not to exceed 0.5 percent of gross lottery game sales is appropriated for payment of sales commissions to ticket retailers.  The combined amount is currently estimated to be 6.7 percent of total ticket sales, or $59,080,300, in fiscal year 2017-2018.

Sec. 60.  BOARD OF MASSAGE THERAPY

                                                    2017-18               

FTE positions                                 5.0               

Lump sum appropriation               $    461,100               

Fund sources:

Board of massage therapy fund        $    461,100

Sec. 61.  ARIZONA MEDICAL BOARD

                                                    2017-18               

FTE positions                                61.5               

Lump sum appropriation               $  6,784,000               

Fund sources:

Arizona medical board fund           $  6,784,000               

The Arizona medical board may use up to seven percent of the Arizona medical board fund balance remaining at the end of each fiscal year for a performance based incentive program the following fiscal year based on the program established pursuant to section 38-618, Arizona Revised Statutes.

Sec. 62.  STATE MINE INSPECTOR

                                                    2017-18               

FTE positions                                14.0               

Operating lump sum appropriation     $  1,017,800

Abandoned mines                           194,700

Aggregate mining land reclamation         112,900

Total appropriation - state mine inspector     $  1,325,400

Fund sources:

State general fund                   $  1,212,500

Aggregate mining reclamation fund         112,900

All aggregate mining reclamation fund monies received by the state mine inspector in excess of $112,900 in fiscal year 2017-2018 are appropriated to the aggregate mining land reclamation line item.  Before the expenditure of any aggregate mining reclamation fund monies in excess of $112,900 in fiscal year 2017-2018, the state mine inspector shall report the intended use of the monies to the joint legislative budget committee.

Sec. 63.  NATUROPATHIC PHYSICIANS MEDICAL BOARD

                                                    2017-18               

FTE positions                                 2.0               

Lump sum appropriation               $    180,200               

Fund sources:

Naturopathic physicians medical

||board fund                         $    180,200               

Sec. 64.  ARIZONA NAVIGABLE STREAM ADJUDICATION COMMISSION

                                                    2017-18

FTE positions                                 2.0               

Lump sum appropriation               $    324,000

Fund sources:

State general fund                   $    124,000

Arizona water banking fund                200,000

Sec. 65.  ARIZONA STATE BOARD OF NURSING

                                                    2017-18               

FTE positions                                42.2               

Operating lump sum appropriation     $  4,268,100               

Certified nursing assistant

  credentialing program                   536,700

Total appropriation – Arizona state

board of nursing                     $  4,804,800

Fund sources:

Board of nursing fund                $  4,804,800

Sec. 66.  BOARD OF EXAMINERS OF NURSING CARE INSTITUTION ADMINISTRATORS AND ASSISTED LIVING FACILITY MANAGERS

                                                    2017-18               

FTE positions                                 6.0               

Lump sum appropriation               $    421,400               

Fund sources:

Nursing care institution

||administrators' licensing and

||assisted living facility

||managers' certification fund       $    421,400               

Sec. 67.  BOARD OF OCCUPATIONAL THERAPY EXAMINERS

                                                    2017-18               

FTE positions                                 1.5               

Lump sum appropriation               $    180,700               

Fund sources:

Occupational therapy fund            $    180,700               

Sec. 68.  STATE BOARD OF DISPENSING OPTICIANS

                                                    2017-18

FTE positions                                 1.0               

Lump sum appropriation               $    140,000               

Fund sources:

Board of dispensing opticians fund   $    140,000               

Sec. 69.  STATE BOARD OF OPTOMETRY

                                          2017-18               

FTE positions                                 2.0               

Lump sum appropriation               $    220,100               

Fund sources:

Board of optometry fund              $    220,100               

Sec. 70.  ARIZONA BOARD OF OSTEOPATHIC EXAMINERS IN MEDICINE AND SURGERY

                                          2017-18               

FTE positions                                 7.2               

Lump sum appropriation               $    905,500               

Fund sources:

Arizona board of osteopathic

  examiners in medicine

  and surgery fund                   $    905,500               

Sec.|71.  ARIZONA STATE PARKS BOARD

                                          2017-18               

FTE positions                               163.0               

Operating lump sum appropriation     $ 12,027,800               

Kartchner caverns state park            2,226,300                 

Total appropriation – Arizona state parks

board                                $ 14,254,100               

Fund sources:

State parks revenue fund             $ 14,254,100               

All other operating expenditures include $26,000 from the state parks revenue fund for Fool Hollow state park revenue sharing.  If receipts to Fool Hollow exceed $260,000 in fiscal year 2017-2018, an additional ten percent of this increase of Fool Hollow receipts is appropriated from the state parks revenue fund established by section 41‑511.21, Arizona Revised Statutes, to meet the revenue sharing agreement with the city of Show Low and the United States forest service.

Sec. 72.  STATE PERSONNEL BOARD

2017-18               

FTE positions                                 3.0               

Lump sum appropriation               $    375,300               

Fund sources:

Personnel division fund –

  personnel board subaccount         $    375,300               

Sec. 73.  ARIZONA STATE BOARD OF PHARMACY

                                                    2017-18               

FTE positions                                19.0               

Operating lump sum appropriation     $  2,113,200               

Annual leave payout                        24,500               

Prescriber report card                    125,000               

Total appropriation – Arizona state

          board of pharmacy                    $  2,262,700               

Fund sources:

Arizona state board of pharmacy

  fund                               $  2,262,700               

Sec. 74.  BOARD OF PHYSICAL THERAPY

                                                    2017-18               

FTE positions                                 4.0               

Lump sum appropriation               $    441,200               

Fund sources:

Board of physical therapy fund       $    441,200               

Sec. 75.  ARIZONA PIONEERS' HOME

                                                    2017-18               

FTE positions                               106.3               

Operating lump sum appropriation     $  6,292,600               

Prescription drugs                        200,000               

Total appropriation – Arizona pioneers' home   $  6,492,600               

Fund sources:

Miners' hospital for miners with

  disabilities land fund             $  2,028,900               

State charitable fund                   4,463,700               

Earnings on state lands and interest on the investment of the permanent land funds are appropriated for the Arizona pioneers' home and the state hospital for miners with disabilities in compliance with the enabling act and the Constitution of Arizona.

Sec. 76.  STATE BOARD OF PODIATRY EXAMINERS

                                                    2017-18               

FTE positions                                 1.0               

Lump sum appropriation               $    148,400               

Fund sources:

Podiatry fund                        $    148,400               

Sec. 77.  COMMISSION FOR POSTSECONDARY EDUCATION

                                                    2017-18

FTE positions                                 5.0

Operating lump sum appropriation     $    183,600

Leveraging educational assistance

||partnership (LEAP)                    2,319,500

Arizona college and career guide           21,300

Math and science teacher

  initiative                              426,000

Arizona minority educational

||policy analysis center                  100,000

Twelve plus partnership                   130,500

Total appropriation - commission for

postsecondary education              $  3,180,900               

Fund sources:

State general fund                   $  1,646,800

Postsecondary education fund            1,534,100

In order to be eligible to receive state matching monies under the leveraging educational assistance partnership for grants to students, each participating institution, public or private, shall provide an amount of institutional matching monies that equals the amount of monies provided by the state to the institution for the leveraging educational assistance partnership.  Administrative expenses incurred by the commission for postsecondary education shall be paid from institutional matching monies and may not exceed twelve percent of the monies in fiscal year 2017-2018.

Any unencumbered balance remaining in the postsecondary education fund established by section 15-1853, Arizona Revised Statutes, on June 30, 2017, and all grant monies and other revenues received by the commission for postsecondary education, when paid into the state treasury, are appropriated for the specific purposes designated by line items and for additional responsibilities prescribed in sections 15-1851 and 15-1852, Arizona Revised Statutes.

The appropriations for the Arizona college and career guide, Arizona minority educational policy analysis center and twelve plus partnership are estimates representing all monies distributed to these programs, including balance forward, revenue and transfers, during fiscal year 2017‑2018.  The appropriations shall be adjusted as necessary to reflect actual final monies credited to the postsecondary education fund.

Sec. 78.  STATE BOARD FOR PRIVATE POSTSECONDARY EDUCATION

                                                    2017-18

FTE positions                                 4.0

Operating lump sum appropriation     $    396,100

Annual leave payout                        20,800

Total appropriation – state board for

private postsecondary education      $    416,900               

Fund sources:

Board for private postsecondary

  education fund                     $    416,900

Sec. 79.  STATE BOARD OF PSYCHOLOGIST EXAMINERS

                                                    2017-18               

FTE positions                                 4.0

Lump sum appropriation               $    475,400

Fund sources:

Board of psychologist examiners

||fund                               $    475,400               

Sec. 80.  DEPARTMENT OF PUBLIC SAFETY

                                                    2017-18               

FTE positions                             1,945.7

Operating lump sum appropriation     $236,766,300

ACTIC                                   1,450,000

Border strike task force ongoing        7,003,200

Border strike task force

  local support                         1,261,700

Camera IT infrastructure                  500,000

Trooper vehicle in‑car cameras            500,000

Civil air patrol                          150,000

GIITEM                                22,069,500

GIITEM subaccount                       2,390,000

Motor vehicle fuel                      5,454,600

Public safety equipment                 2,890,000

Sexual assault kit testing              1,200,000

Total appropriation ‑ department of public

safety                               $281,635,300               

Fund sources:

State general fund                   $108,654,600               

Arizona highway user revenue fund      99,398,700               

State highway fund                      7,580,900

Arizona highway patrol fund            24,992,800               

State aid to indigent defense fund        700,000

Criminal justice enhancement fund       2,873,400               

Safety enforcement and transportation

  infrastructure fund – department

  of public safety subaccount           1,617,800               

Crime laboratory assessment fund          870,300               

Crime laboratory operations fund       13,611,300

Arizona deoxyribonucleic acid

||identification system fund            4,970,100               

Arizona automated fingerprint

  identification system fund            2,917,600               

Gang and immigration intelligence

  team enforcement mission border

  security and law enforcement

  subaccount                            2,527,700

Motorcycle safety fund                    205,000

Risk management revolving fund          1,314,200               

Parity compensation fund                3,397,400

Public safety equipment fund            3,893,700

Concealed weapons permit fund           1,409,800

Fingerprint clearance card fund           700,000

Of the $22,069,500 appropriated to the GIITEM line item, $10,356,900 shall be used for one hundred department of public safety GIITEM personnel.  The additional staff shall include at least fifty sworn department of public safety positions to be used for immigration enforcement and border security and fifty department of public safety positions to assist GIITEM in various efforts, including:

1.  Strict enforcement of all federal laws relating to illegal aliens and arresting illegal aliens.

2.  Responding to or assisting any county sheriff or attorney in investigating complaints of employment of illegal aliens.

3.  Enforcing Arizona's law known as the Legal Arizona Workers Act, strict enforcement of Arizona's SB 1070, Arizona's "Support Our Law Enforcement and Safe Neighborhoods Act," investigating crimes of identity theft in the context of hiring illegal aliens and the unlawful entry into the country.

4.  Taking strict enforcement action.

Any change in the GIITEM mission or allocation of monies shall be approved by the joint legislative budget committee.  The department shall submit an expenditure plan to the joint legislative budget committee for review before expending any monies not identified in the department's previous expenditure plans. 

Of the $22,069,500 appropriated to the GIITEM line item, only $1,403,400 is deposited in the GIITEM fund established by section 41-1724, Arizona Revised Statutes, and is appropriated for the purposes of that section.  The $1,403,400 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to the lapsing of appropriations.  It is the intent of the legislature that this allocation will be restored to the fiscal year 2016-2017 level of $2,603,400 in fiscal year 2018-2019.  This state recognizes that states have inherent authority to arrest a person for any immigration violation.

Any monies remaining in the department of public safety joint account on June 30, 2018 revert to the funds from which they were appropriated.  The reverted monies shall be returned in direct proportion to the amounts appropriated.

Before the expenditure of any monies appropriated in fiscal year 2017‑2018 in the border strike task force local support line item, the department shall submit an expenditure plan for this line item to the joint legislative budget committee for review.

Of the $1,261,700 appropriated for the border strike task force local support line item, $761,700 shall be used to fund local law enforcement officer positions within the border strike task force.  Any city, town, county or other entity that enters into an agreement with the department to participate in the border strike task force shall provide at least twenty‑five percent of the cost of the services, and the department shall provide not more than seventy-five percent of personal services and employee-related expenditures for each agreement or contract.  The department may fund all capital-related equipment.

Of the $1,261,700 appropriated for the border strike task force local support line item, $500,000 shall be used for grants to cities, towns or counties for costs associated with the prosecution and imprisonment of individuals charged with drug trafficking, human smuggling, illegal immigration and other border‑related crimes.

The $1,200,000 appropriated for sexual assault kit testing in fiscal year 2017-2018 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations through June 30, 2019.

Sec. 81.  RADIATION REGULATORY AGENCY

                                                    2017-18               

FTE positions                                29.0               

Lump sum appropriation               $  1,621,500

Fund sources:

State general fund                   $    773,400

State radiologic technologist

||certification fund                      271,600

Radiation regulatory fee fund             576,500

Sec. 82.  STATE REAL ESTATE DEPARTMENT

                                                    2017-18               

FTE positions                                37.0               

Lump sum appropriation               $  2,994,900               

Fund sources:

State general fund                   $  2,994,900               

Sec. 83.  RESIDENTIAL UTILITY CONSUMER OFFICE

                                                    2017-18               

FTE positions                                11.0               

Operating lump sum appropriation     $  1,186,400               

Professional witnesses                   145,000*  

Total appropriation - residential utility

consumer office                     $  1,331,400               

Fund sources:

Residential utility consumer

||office revolving fund              $  1,331,400               

Sec. 84.  BOARD OF RESPIRATORY CARE EXAMINERS

                                                    2017-18               

FTE positions                                 4.0               

Operating lump sum appropriation     $    300,300               

Temporary caseload increase                19,500

Total appropriation – board of respiratory

care examiners                       $    319,800               

Fund sources:

Board of respiratory care

||examiners fund                     $    319,800               

Sec. 85.  ARIZONA STATE RETIREMENT SYSTEM

                                                    2017-18               

FTE positions                               250.9               

Lump sum appropriation               $ 24,884,200               

Fund sources:

Arizona state retirement system

||administration account             $ 22,384,200               

Long-term disability trust fund

  administration account                2,500,000               

Sec. 86.  DEPARTMENT OF REVENUE

                                                    2017-18               

FTE positions                               880.8               

Operating lump sum appropriation     $ 63,446,800               

BRITS operational support               7,497,500               

Unclaimed property administration

  and audit                             1,218,500               

TPT simplification                        970,400

Income tax fraud prevention             3,150,000

Total appropriation – department of revenue    $ 76,283,200               

Fund sources:

State general fund                   $ 29,998,300               

Department of revenue

  administrative fund                  45,158,700

Department of revenue empowerment

  scholarship account fund                 50,000

Liability setoff program

  revolving fund                          397,900               

Tobacco tax and health care fund          678,300               

If the total value of properties retained by unclaimed property contract auditors exceeds $1,218,500, the excess amount is transferred from the state general fund to the department of revenue administrative fund established by section 42-1116.01, Arizona Revised Statutes, and appropriated to the department for contract auditor fees.

The department shall report the department's general fund revenue enforcement goals for fiscal year 2017-2018 to the joint legislative budget committee on or before September 30, 2017.  The department shall provide an annual progress report to the joint legislative budget committee as to the effectiveness of the department's overall enforcement and collections program for fiscal year 2017-2018 on or before September 30, 2018.  The reports shall include a comparison of projected and actual general fund revenue enforcement collections for fiscal year 2017-2018, including the amount of projected and actual enforcement collections for all tax types.

The department may not transfer any monies to or from the income tax fraud prevention line item without prior review by the joint legislative budget committee.

On or before November 1, 2017, the department shall report the results of private fraud prevention investigation services during fiscal year 2016‑2017 to the joint legislative budget committee.  The report shall include the total number of fraudulent returns prevented and the total dollar amount of fraudulent returns prevented during fiscal year 2016-2017.

Sec. 87.  SCHOOL FACILITIES BOARD

                                                    2017-18               

FTE positions                                17.0               

Operating lump sum appropriation     $  1,666,700

New school facilities debt service    169,761,700

Building renewal grants                16,667,900

New school facilities                  63,929,800

Total appropriation – school facilities

board                                $252,026,100

Fund sources:

State general fund                   $252,026,100

Pursuant to section 35-142.01, Arizona Revised Statutes, any reimbursement received by or allocated to the school facilities board under the federal qualified school construction bond program in fiscal year 2017‑2018 shall be deposited in or revert to the state general fund.

At least thirty days before any monies are transferred out of the new school facilities debt service line item, the school facilities board shall report the proposed transfer to the director of the joint legislative budget committee.

Pursuant to section 15-2041, Arizona Revised Statutes, the amount appropriated for new school facilities shall be used only for facilities and land costs that are for school districts that received final approval from the school facilities board between March 2, 2016 and March 1, 2017.

Sec. 88.  DEPARTMENT OF STATE ‑ SECRETARY OF STATE

                                                    2017-18               

FTE positions                               141.1               

Operating lump sum appropriation     $ 12,076,700               

Help America vote act                  2,941,100               

Library grants-in-aid                    651,400*

Statewide radio reading service

  for the blind                            97,000

Total appropriation – department of

state - secretary of state           $ 15,766,200               

Fund sources:

State general fund                   $ 12,084,700               

Election systems improvement fund       2,941,100               

Records services fund                     740,400

The secretary of state shall report to the joint legislative budget committee and the governor's office of strategic planning and budgeting on or before December 31, 2017 the actual amount and purpose of expenditures from the election systems improvement fund established by section 41-129, Arizona Revised Statutes, in fiscal year 2016-2017 and the expected amount and purpose of expenditures from the fund for fiscal year 2017-2018.

The fiscal year 2017-2018 appropriation from the election systems improvement fund for the help America vote act is available for use pursuant to section 35-143.01, subsection C, Arizona Revised Statutes, and is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2019.

In expending the monies appropriated in this section for the statewide voter registration system, the secretary of state shall prescribe the manner in which counties must submit data as required by section 16-168, Arizona Revised Statutes.

Included in the operating lump sum appropriation of $12,076,700 for fiscal year 2017-2018 is $5,000 for the purchase of mementos and items for visiting officials.

Sec. 89.  STATE BOARD OF TAX APPEALS

                                                    2017-18               

FTE positions                                 4.0               

Lump sum appropriation               $    266,600               

Fund sources:

State general fund                   $    266,600               

Sec. 90.  STATE BOARD OF TECHNICAL REGISTRATION

                                                    2017-18               

FTE positions                                25.0               

Lump sum appropriation               $  2,204,400               

Fund sources:

Technical registration fund          $  2,204,400               

Sec. 91.  OFFICE OF TOURISM

                                                    2017-18               

FTE positions                                28.0               

Tourism fund deposit                 $  7,112,000

Fund sources:

State general fund                   $  7,112,000

Sec. 92.  DEPARTMENT OF TRANSPORTATION

                                                    2017-18               

FTE positions                             4,552.0               

Operating lump sum appropriation     $205,454,100

Attorney general legal services         3,577,700

Highway maintenance                   146,021,700

Vehicles and heavy equipment           18,474,600

Fraud investigation                       767,000

New third-party funding                   629,600

Statewide drainage structures           4,300,000

Phoenix area freeway lighting           1,500,000

Driver safety and livestock control     2,400,000

Grand Canyon airport projects             466,000

Flagstaff building equipment            2,530,000

Total appropriation – department of

transportation                       $386,120,700               

Fund sources:

State general fund                   $     50,400

Air quality fund                          161,700

Driving under the influence

  abatement fund                          152,200

Arizona highway user revenue fund         649,700

Highway damage recovery account         3,000,000

Motor vehicle liability

  insurance enforcement fund            1,308,700               

Safety enforcement and

  transportation infrastructure

  fund – department of

  transportation subaccount             1,868,300               

State aviation fund                     2,081,800               

State highway fund                    356,923,100

Transportation department

  equipment fund                       18,474,600               

Vehicle inspection and certificate

  of title enforcement fund             1,450,200               

Motor vehicle division

It is the intent of the legislature that the department not include any administrative overhead expenditures in duplicate driver license fees charged to the public.

The department of transportation shall submit an annual report to the joint legislative budget committee on progress in improving motor vehicle division wait times and vehicle registration renewal by mail turnaround times in a format similar to prior years.  The report is due on or before July 31, 2018 for fiscal year 2017-2018. 

The department of transportation shall contract with an independent third-party consultant for the duration of the motor vehicle division legacy system replacement project.  On or before February 1, 2018, the independent third-party consultant shall submit an annual progress report for review by the joint legislative budget committee.  The annual report shall evaluate and assess the project's success in meeting and incorporating the tenets of the project investment justification, including the goals and objectives, technology approach, deliverables and outcomes, project scope and timeline.  The report shall also address any potential project deficiencies as well as the incorporation of the auditor general's April 2015 recommendations.

On or before July 31, 2017, the department shall report to the director of the joint legislative budget committee on the cost to link local governments, state agencies and other users with the new motor vehicle division automated system.

On or before August 1, 2017, the department shall report to the director of the joint legislative budget committee on the state's share of fees retained by the service Arizona vendor in the prior fiscal year.  The report shall also include the amount spent by the service Arizona vendor on behalf of this state in the prior fiscal year, as well as a list of the projects funded with those monies.

Other

Of the total amount appropriated, $146,021,700 in fiscal year 2017‑2018 for highway maintenance is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, except that all unexpended and unencumbered monies of the appropriation revert to their fund of origin, either the state highway fund established by section 28-6991, Arizona Revised Statutes, or the safety enforcement and transportation infrastructure fund – department of transportation subaccount established by section 28-6547, Arizona Revised Statutes, on August 31, 2018.

Of the total amount appropriated, the department of transportation shall pay $15,981,300 in fiscal year 2017-2018 from all funds to the department of administration for its risk management payment.

All expenditures made by the department of transportation for attorney general legal services shall be funded only from the attorney general legal services line item.  Monies in department of transportation line items intended for this purpose shall be transferred to the attorney general legal services line item before expenditure. 

In accordance with section 35-142.01, Arizona Revised Statutes, reimbursements for monies expended from the highway maintenance line item may not be credited to the account out of which the expenditure was incurred.  The department shall deposit all reimbursements for monies expended from the highway maintenance line item in the highway damage recovery account established by section 28-6994, Arizona Revised Statutes.

Sec. 93.  STATE TREASURER

                                                    2017-18

FTE positions                                31.4

Operating lump sum appropriation     $  3,159,300

Justice of the peace salaries           1,205,100

Law enforcement/boating safety

  fund grants                           2,183,800

Total appropriation – state treasurer          $  6,548,200

Fund sources:

State general fund                   $  1,205,100

Law enforcement and boating

  safety fund                           2,183,800

State treasurer empowerment

  scholarship account fund                304,400

State treasurer's operating fund        2,559,300

State treasurer's management fund         295,600

Sec. 94.  GOVERNOR'S OFFICE ON TRIBAL RELATIONS

                                                    2017-18               

FTE positions                                 3.0               

Lump sum appropriation               $     57,500               

Fund sources:

State general fund                   $     57,500

Sec. 95.  ARIZONA BOARD OF REGENTS

                                                    2017-18               

FTE positions                                25.9

Operating lump sum appropriation     $  2,352,500               

Arizona teachers incentive program         90,000

Arizona transfer articulation

  support system                          213,700

Western interstate commission

  office                                  145,000

WICHE student subsidies                 4,086,000

Total appropriation ‑ Arizona board of

regents                              $  6,887,200

Fund sources:

State general fund                   $  6,887,200

Within ten days after the acceptance of the universities' semiannual all funds budget reports, the Arizona board of regents shall submit an expenditure plan for review to the joint legislative budget committee.  The expenditure plan shall include any tuition revenue amounts that are greater than the appropriated amounts and all retained tuition and fee revenue expenditures for the current fiscal year.  The additional revenue expenditure plan shall provide as much detail as the university budget requests.  The plan shall include the total revenue and expenditure amounts from all tuition and student fee revenues, including base tuition, differential tuition, program fees, course fees, summer session fees, and other miscellaneous and mandatory student fee revenues that have previously been excluded from university reported tuition and fee revenues.

When determining any statewide adjustments, the joint legislative budget committee staff shall use the overall allocation of state general fund and appropriated tuition monies for each university in determining that university's specific adjustment.

Sec. 96.  ARIZONA STATE UNIVERSITY – TEMPE AND DOWNTOWN PHOENIX CAMPUSES

                                          2017-18

FTE positions                             6,862.9               

Operating lump sum appropriation     $680,466,100

Biomedical informatics                  3,509,900

School of civic and economic

  thought and leadership                3,000,000

Arizona financial aid trust             5,985,800

Downtown Phoenix campus               144,877,600

Total appropriation – Arizona state

          university – Tempe and downtown

          Phoenix campuses                     $837,839,400

Fund sources:

State general fund                   $244,713,200               

University collections fund           593,126,200

The state general fund appropriation may not be used for alumni association funding or contracts with individuals or entities for lobbying services.

The increased state general fund appropriation from Laws 2014, chapter 18 may not be used for medical marijuana research.

Other than scholarships awarded through the Arizona financial aid trust, the appropriated monies may not be used for scholarships or any student newspaper.

The appropriated monies may not be used by the Arizona state university college of law legal clinic for any lawsuits involving inmates of the state department of corrections in which the state is the adverse party.

The appropriated amount for the school of civic and economic thought and leadership line item shall be used to operate a single stand-alone academic entity within Arizona state university.  The appropriated amount may not supplant any existing state funding or private or external donations to the existing centers or to the school.  The appropriated monies and all private and external donations to the school shall be used only for the direct operation of the school and may not be used for indirect costs of the university.  The school shall submit a report to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate education committee and the house of representatives education committee and the director of the joint legislative budget committee on or before October 2, 2017.  The report shall include at least the following for the school:

1.  The total amount of funding received from all sources.

2.  A description of faculty positions and courses offered.

3.  The total undergraduate and graduate student enrollment.

4.  Significant community events, initiatives or publications.

The chairpersons of the senate education committee and the house of representatives education committee may request the director of the school to appear before the committees to report on the school's annual achievements.

Any unencumbered balances remaining in the university collections fund on June 30, 2017 and all collections received by the university during the fiscal year, when paid into the state treasury, are appropriated for operating expenditures, capital outlay and fixed charges.  Earnings on state lands and interest on the investment of the permanent land funds are appropriated in compliance with the enabling act and the Constitution of Arizona.  No part of this appropriation may be expended for supplemental life insurance or supplemental retirement. 

Sec. 97.  ARIZONA STATE UNIVERSITY - EAST CAMPUS

                                          2017-18

FTE positions                               435.9

Operating lump sum appropriation     $ 64,074,700

TRIF lease-purchase payment             2,000,000

Total appropriation - Arizona state

          university - east campus             $ 66,074,700

Fund sources:

State general fund                   $ 21,771,400

University collections fund            42,303,300

Technology and research initiative

  fund                                  2,000,000

The state general fund appropriation may not be used for alumni association funding or contracts with individuals or entities for lobbying services.

The increased state general fund appropriation from Laws 2014, chapter 18 may not be used for medical marijuana research.

Other than scholarships awarded through the Arizona financial aid trust, the appropriated monies may not be used for scholarships or any student newspaper.

Any unencumbered balances remaining in the university collections fund on June 30, 2017 and all collections received by the university during the fiscal year, when paid into the state treasury, are appropriated for operating expenditures, capital outlay and fixed charges.  Earnings on state lands and interest on the investment of the permanent land funds are appropriated in compliance with the enabling act and the Constitution of Arizona.  No part of this appropriation may be expended for supplemental life insurance or supplemental retirement.

Sec. 98.  ARIZONA STATE UNIVERSITY - WEST CAMPUS

                                          2017-18

FTE positions                               513.0               

Operating lump sum appropriation     $ 73,604,000

TRIF lease-purchase payment             1,600,000

Total appropriation - Arizona state

          university - west campus             $ 75,204,000

Fund sources:

State general fund                   $ 29,413,500               

University collections fund            44,190,500               

Technology and research initiative

  fund                                  1,600,000

The state general fund appropriation may not be used for alumni association funding or contracts with individuals or entities for lobbying services.

The increased state general fund appropriation from Laws 2014, chapter 18 may not be used for medical marijuana research.

Other than scholarships awarded through the Arizona financial aid trust, the appropriated monies may not be used for scholarships or any student newspaper.

Any unencumbered balances remaining in the university collections fund on June 30, 2017 and all collections received by the university during the fiscal year, when paid into the state treasury, are appropriated for operating expenditures, capital outlay and fixed charges.  Earnings on state lands and interest on the investment of the permanent land funds are appropriated in compliance with the enabling act and the Constitution of Arizona.  No part of this appropriation may be expended for supplemental life insurance or supplemental retirement.

Sec. 99.  NORTHERN ARIZONA UNIVERSITY

                                                    2017-18               

FTE positions                             2,260.7               

Operating lump sum appropriation     $236,995,600

NAU ‑ Yuma                              3,067,300

Arizona financial aid trust             1,326,000

Teacher training                        2,290,600

Total appropriation – Northern Arizona

university                           $243,679,500               

Fund sources:

State general fund                   $ 96,396,200               

University collections fund           147,283,300

The state general fund appropriation may not be used for alumni association funding or contracts with individuals or entities for lobbying services.

The increased state general fund appropriation from Laws 2014, chapter 18 may not be used for medical marijuana research.

Other than scholarships awarded through the Arizona financial aid trust, the appropriated monies may not be used for scholarships or any student newspaper.

The appropriated amount for the teacher training line item shall be distributed to the Arizona K-12 center for program implementation and mentor training for the Arizona mentor teacher program prescribed by the state board of education.

Any unencumbered balances remaining in the university collections fund on June 30, 2017 and all collections received by the university during the fiscal year, when paid into the state treasury, are appropriated for operating expenditures, capital outlay and fixed charges.  Earnings on state lands and interest on the investment of the permanent land funds are appropriated in compliance with the enabling act and the Constitution of Arizona.  No part of this appropriation may be expended for supplemental life insurance or supplemental retirement.

Sec. 100.  UNIVERSITY OF ARIZONA

                                                    2017-18               

Main campus

FTE positions                             6,009.5               

Operating lump sum appropriation     $514,849,100

Agriculture                            39,580,600

Arizona cooperative extension          16,158,100

Center for the philosophy

  of freedom                            2,500,000

Sierra Vista campus                     7,911,200               

Arizona financial aid trust             2,729,400

Mining, mineral and natural

  resources educational museum            428,300

Total – main campus                      $584,156,700               

Fund sources:

State general fund                   $179,015,600               

University collections fund           405,141,100               

Health sciences center

FTE positions                             1,157.3               

Operating lump sum appropriation     $ 72,266,900

Clinical rural rotation                   353,400

Clinical teaching support               8,587,000               

Liver research institute                  440,100

Phoenix medical campus                 33,034,800

Telemedicine network                    1,669,000

Total - health sciences center           $116,351,200               

Fund sources:

State general fund                   $ 68,859,800               

University collections fund            47,491,400

Total appropriation ‑ university of                       

Arizona                              $700,507,900               

Fund sources:

State general fund                   $247,875,400               

University collections fund           452,632,500               

The state general fund appropriation may not be used for alumni association funding or contracts with individuals or entities for lobbying services.

The increased state general fund appropriation from Laws 2014, chapter 18 may not be used for medical marijuana research.

Other than scholarships awarded through the Arizona financial aid trust, the appropriated monies may not be used for scholarships or any student newspaper.

The appropriated amount for the center for the philosophy of freedom line item may not supplant any existing state funding or private or external donations to the center or the philosophy department of the university of Arizona.  The appropriated monies and all private and external donations to the center shall be used only for the direct operation of the center and may not be used for indirect costs of the university.  The center shall submit a report to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate education committee and the house of representatives education committee and the director of the joint legislative budget committee on or before October 2, 2017.  The report shall include at least the following for the center:

1.  The total amount of funding received from all sources.

2.  A description of faculty positions and courses offered.

3.  The total undergraduate and graduate student participation.

4.  Significant community events, initiatives or publications.

The chairpersons of the senate education committee and the house of representatives education committee may request the director of the center to appear before the committees to report on the center's annual achievements.

Any unencumbered balances remaining in the university collections fund on June 30, 2017 and all collections received by the university during the fiscal year, when paid into the state treasury, are appropriated for operating expenditures, capital outlay and fixed charges.  Earnings on state lands and interest on the investment of the permanent land funds are appropriated in compliance with the enabling act and the Constitution of Arizona.  No part of this appropriation may be expended for supplemental life insurance or supplemental retirement.

Sec. 101.  DEPARTMENT OF VETERANS' SERVICES

                                                    2017-18

FTE positions                               512.3

Operating lump sum appropriation     $  2,308,800

Arizona state veterans' homes          35,147,600

Arizona state veterans' cemeteries        924,200

Veterans' benefit counseling            2,821,100

Total appropriation – department of

veterans' services                   $ 41,201,700

Fund sources:

State general fund                   $  6,054,100

State home for veterans trust

  fund                                 35,147,600

Sec. 102.  ARIZONA STATE VETERINARY MEDICAL EXAMINING BOARD

                                                    2017-18               

FTE positions                                 6.0               

Lump sum appropriation               $    584,800               

Fund sources:

Veterinary medical examining

  board fund                         $    584,800               

Sec. 103.  DEPARTMENT OF WATER RESOURCES

                                                    2017-18               

FTE positions                               139.0               

Operating lump sum appropriation     $  9,558,200               

Adjudication support                    1,724,800               

Arizona water protection fund

  deposit                                 250,000

Assured and adequate water supply

  administration                        1,977,000               

Rural water studies                     1,164,500               

Conservation and drought program          406,900               

Automated groundwater monitoring          408,700

Lower Colorado river

  litigation expenses                    500,000*              

Total appropriation ‑ department of water                 

resources                            $ 15,990,100               

Fund sources:

State general fund                   $ 13,871,000               

Water resources fund                      641,400

Assured and adequate water

  supply administration fund              266,300               

Arizona water banking fund              1,211,400

Monies in the assured and adequate water supply administration line item may be used only for the exclusive purposes prescribed in sections 45‑108 and 45-576 through 45-579, Arizona Revised Statutes.  The department of water resources may not transfer any monies into or out of the assured and adequate water supply administration line item.

It is the intent of the legislature that monies in the rural water studies line item be spent only to assess local water use needs and to develop plans for sustainable future water supplies in rural areas outside this state's active management areas and not be made available for other department operating expenditures.

Monies in the adjudication support line item may be used only for the exclusive purposes prescribed in section 45-256 and section 45-257, subsection B, paragraph 4, Arizona Revised Statutes.  The department of water resources may not transfer any monies into or out of the adjudication support line item.

The department of water resources may not transfer any monies from the lower Colorado river litigation expenses line item without prior review by the joint legislative budget committee.

Fiscal Year 2016-2017 Appropriation Adjustments

Sec. 104.  Department of administration; risk management revolving fund; supplemental appropriation; fiscal year 2016-2017; review

A.  In addition to any other appropriations made in fiscal year 2016-2017, the sum of $3,218,200 is appropriated from the risk management revolving fund established by section 41-622, Arizona Revised Statutes, in fiscal year 2016-2017 to the department of administration for the following purposes:

1.  To pay disallowed costs relating to excess retained earnings.

2.  To pay disallowed costs relating to the statewide information technology charges.

3.  For fund transfers in fiscal year 2015-2016.

B.  It is the intent of the legislature that the department of administration not enter into any agreements to pay for any federal reimbursements related to excess balances in the special employee health insurance trust fund established by section 38-654, Arizona Revised Statutes, unless the proposed agreements have been reviewed by the joint legislative budget committee.

Sec. 105.  Department of administration; agency relocation costs; exemption

The appropriation of $576,800 made by Laws 2016, chapter 117, section 163 from other funds in fiscal year 2016-2017 for onetime relocation costs for state agencies is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations until June 30, 2018.  The joint legislative budget committee staff shall determine and the department of administration shall allocate to each agency or department an amount for relocation costs.

Sec. 106.  Arizona health care cost containment system administration; supplemental appropriations; fiscal year 2016-2017

A.  In addition to any other appropriations made in fiscal year 2016‑2017, the appropriation to the Arizona health care cost containment system administration is increased by $63,225,800 from the children's health insurance program fund established by section 36-2995, Arizona Revised Statutes, in fiscal year 2016-2017.

B.  In addition to any other appropriations made in fiscal year 2016‑2017, the sum of $66,454,800 is increased from the Arizona health care cost containment system administration appropriation from the expenditure authority in fiscal year 2016-2017.  The total includes the following changes by fund:

1.  $70,854,300 decrease from federal medicaid authority.

2.  $137,309,100 increase from the prescription drug rebate fund ‑ in lieu of federal funds established by section 36-2930, Arizona Revised Statutes.

Sec. 107.  Department of child safety; backlog privatization; exemption; fiscal years 2015-2016 and 2016-2017

The sum of $2,700,000 appropriated to the department of child safety in fiscal year 2015-2016 by Laws 2016, chapter 117, section 113 for backlog privatization and the sum of $2,700,000 appropriated to the department of child safety in fiscal year 2016-2017 by Laws 2016, chapter 117, section 24 for backlog privatization are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations until June 30, 2018.

Sec. 108.  Department of economic security; supplemental appropriations; fiscal year 2016-2017

A.  In addition to the appropriation made by Laws 2016, chapter 117, section 35, the sum of $7,720,800 from the state general fund and the sum of $17,739,200 from developmental disabilities medicaid expenditure authority are appropriated in fiscal year 2016-2017 to the department of economic security for division of developmental disabilities service provider rate cost increases resulting from the enactment of proposition 206, election of November 8, 2016.

B.  In addition to the appropriation made by Laws 2016, chapter 117, section 35, the sum of $427,000 is appropriated from the state general fund in fiscal year 2016-2017 to the department of economic security for division of developmental disabilities state-only home and community based services provider rate cost increases resulting from the enactment of proposition 206, election of November 8, 2016.

Sec. 109.  Department of economic security; loans; reimbursement; fiscal year 2016-2017

The department of economic security may use up to $25,000,000 from the budget stabilization fund established by section 35-144, Arizona Revised Statutes, for the purpose of providing funding for reimbursement grants.  Notwithstanding any other law, this appropriation must be fully reimbursed on or before September 1, 2017 and must be reimbursed in full as part of the closing process for fiscal year 2016-2017.  The appropriation may not be used for additional programmatic expenditures.

Sec. 110.  Superintendent of public instruction; supplemental appropriation; fiscal year 2016-2017

In addition to any other appropriations made in fiscal year 2016‑2017, the sum of $17,081,200 is appropriated from the state general fund in fiscal year 2016-2017 to the superintendent of public instruction for additional formula costs.

Sec. 111.  State land department; supplemental appropriations; fiscal year 2016-2017; exemption

A.  In addition to any other appropriations made in fiscal year 2016‑2017, the following sums are appropriated in fiscal year 2016-2017 to the state land department for the following purposes:

1.  $224,500 from the state general fund for a CAP user fee adjustment.

2.  $225,000 from the trust land management fund established by section 37-527, Arizona Revised Statutes, for legal services.

B.  The appropriation in subsection A, paragraph 2 of this section is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, through June 30, 2018.

Fiscal Year 2017-2018 Appropriations

Sec. 112.  Department of administration; counties; appropriations; allocations

A.  The sum of $5,500,500 is appropriated from the state general fund in fiscal year 2017-2018 to the department of administration for distribution to counties for maintenance of essential county services.  The department of administration shall allocate the appropriation equally among all counties with a population of less than two hundred thousand persons according to the 2010 United States decennial census.

B.  The sum of $500,000 is appropriated from the state general fund in fiscal year 2017-2018 to the department of administration for distribution to a county with a population of more than thirty thousand persons and less than forty thousand persons according to the 2010 United States decennial census for maintenance of essential county services.

C.  The sum of $1,650,150 is appropriated from the state general fund in fiscal year 2017-2018 to the department of administration for a onetime distribution to counties for maintenance of essential county services.  The department of administration shall allocate the appropriation equally among all counties with a population of more than two hundred thousand persons and less than nine hundred thousand persons according to the 2010 United States decennial census.

D.  The sum of $8,000,000 is appropriated from the state general fund in fiscal year 2017-2018 to the department of administration for a onetime distribution to counties for maintenance of essential county services.  The department of administration shall allocate this amount as follows:

Apache                                    $    89,500

Cochise                                   $   164,400

Coconino                                  $   168,300

Gila                                      $    67,100

Graham                                    $    46,600

Greenlee                                  $    10,500

La Paz                                    $    25,700

Maricopa                                  $ 4,777,300

Mohave                                    $   250,500

Navajo                                    $   134,500

Pima                                      $ 1,226,900

Pinal                                     $   470,300

Santa Cruz                                $    59,300

Yavapai                                   $   264,100

Yuma                                      $   245,000

Sec. 113.  Report; proposition 206; provider network adequacy analysis; appropriation

A.  On or before February 1, 2018, the Arizona health care cost containment system administration shall submit a report to the governor, the president of the senate, the speaker of the house of representatives, the director of the governor's office of strategic planning and budgeting and the director of the joint legislative budget committee on the impact of provider cost increases resulting from the enactment of proposition 206, election of November 8, 2016, on the adequacy of the provider network for enrollees in the Arizona long-term care system established by section 36-2932, Arizona Revised Statutes.  The analysis of the provider network adequacy shall be delineated by geographic service area.  The report shall include recommendations on how this state may address any deficiencies in provider network adequacy identified in the analysis.

B.  The sum of $200,000 is appropriated from the prescription drug rebate fund established by section 36-2930, Arizona Revised Statutes, in fiscal year 2017-2018 to the Arizona health care cost containment system administration to complete the provider network adequacy analysis described in subsection A of this section.

Sec. 114.  Arizona arts trust fund; appropriation; fiscal year 2017-2018

The sum of $1,500,000 is appropriated from the monies earned from investment of monies in the budget stabilization fund established by section 35-144, Arizona Revised Statutes, in fiscal year 2017-2018 to the Arizona arts trust fund established by section 41-983.01, Arizona Revised Statutes.

Sec. 115.  Automation projects fund; appropriations; fiscal year 2017-2018; quarterly report

Appropriations

A.  The following amounts and 15.0 FTE positions are appropriated from the automation projects fund established by section 41‑714, Arizona Revised Statutes, in fiscal year 2017-2018 to the department of administration for the following statewide automation and information technology projects:

1.  $1,500,000 for project management of statewide automation and information technology projects.

2.  $500,000 for a feasibility study to replace the human resource information system.

3.  $3,405,100 for improving and maintaining network and security infrastructure.

4.  $7,303,500 for enhancing statewide data security.

5.  $500,000 for projects related to e-government.

B.  The following amounts are appropriated from the automation projects fund established by section 41‑714, Arizona Revised Statutes, in fiscal year 2017-2018 to the department of administration for the following automation and information technology projects:

1.  $595,500 to implement a statewide e-licensing system.

2.  $3,200,000 to implement e-licensing projects at the department of environmental quality.

3.  $1,017,400 to implement upgrades to the claims processing system operated by the industrial commission of Arizona.

4.  $3,497,400 to implement updates to the information technology system operated by the Arizona state lottery commission.

5.  $2,500,000 to update the microwave backbone statewide communication system at the department of public safety.

6.  $2,343,000 to implement updates to the criminal justice information system operated by the department of public safety.

7.  $7,300,000 for implementing, upgrading and maintaining the education learning and accountability system established pursuant to section 15-249, Arizona Revised Statutes.

8.  $11,000,000 for implementing upgrades to the information technology infrastructure at the department of revenue.

9.  $11,100,000 for implementing upgrades to the children's information library and data source system at the department of child safety.

C.  Monies appropriated for projects at each state agency from the automation projects fund established by section 41-714, Arizona Revised Statutes, may not be used for projects at any other state agency.  In addition to the initial review of expenditures from the automation projects fund by the joint legislative budget committee, pursuant to section 41‑714, Arizona Revised Statutes, a state agency may not reallocate monies between projects within the agency without review by the joint legislative budget committee.

Quarterly Report

D.  The department of administration shall submit to the joint legislative budget committee, within thirty days after the last day of each calendar quarter, a quarterly report on the implementation of projects described in this section, including the projects' expenditures to date, deliverables, timeline for completion and current status.

Nonlapsing

E.  For the funding for projects at the department of administration, the state department of corrections, the department of child safety, the department of economic security and the department of education, any remaining balances on June 30, 2017 in the automation projects fund established by section 41-714, Arizona Revised Statutes, from monies appropriated in fiscal year 2016-2017 are appropriated to the department of administration in fiscal year 2017-2018 for the same purposes specified in fiscal year 2016-2017.  The department of administration shall report in its quarterly report to the joint legislative budget committee any fiscal year 2017-2018 expenditure of remaining balances from fiscal year 2016-2017 from the automation projects fund.

F.  For the funding for the department of revenue enterprise tax system replacement assessment, any remaining balances on June 30, 2017 in the automation projects fund established by section 41-714, Arizona Revised Statutes, from monies appropriated in fiscal year 2016-2017 for the enterprise tax system replacement assessment revert to the liability setoff program revolving fund established by section 42-1122, Arizona Revised Statutes.

G.  For the funding for the department of environmental quality's e‑licensing projects, any remaining balances on June 30, 2017 in the automation projects fund established by section 41-714, Arizona Revised Statutes, from monies appropriated in fiscal year 2015-2016 for the e‑licensing projects at the department of environmental quality are appropriated to the department of administration in fiscal year 2017-2018 for the same purposes specified in fiscal year 2015-2016.  The department of administration shall report in its quarterly report to the joint legislative budget committee any fiscal year 2017-2018 expenditure of remaining balances from fiscal year 2015-2016 from the automation projects fund.

H.  For the funding for the department of economic security's information technology security project, any remaining balances on June 30, 2017 in the automation projects fund established by section 41-714, Arizona Revised Statutes, from monies appropriated in fiscal year 2015‑2016 for the information technology security project at the department of economic security are appropriated to the department of administration in fiscal year 2017-2018 for the same purposes specified in fiscal year 2015-2016.  The department of administration shall report in its quarterly report to the joint legislative budget committee any fiscal year 2017-2018 expenditure of remaining balances from fiscal year 2015‑2016 from the automation projects fund.

I.  The amount appropriated for implementing projects that comply with state and federal security information technology standards at the department of economic security by Laws 2015, chapter 8, section 126 and Laws 2016, chapter 117, section 129 may not be used for an assessment to replace any information technology system at the department.  On or before December 2, 2017, the department of economic security shall submit a report for review to the joint legislative budget committee on the status of the department's information technology security system.

J.  For the funding for the department of child safety's replacement of the children's information library and data source system project, any remaining balances on June 30, 2017 in the automation projects fund established by section 41-714, Arizona Revised Statutes, from monies appropriated in fiscal year 2014-2015 for the replacement of the children's information and data source system project at the department of child safety are appropriated to the department of administration in fiscal year 2017-2018 for the same purposes specified in fiscal year 2014‑2015.  The department of administration shall report in its quarterly report to the joint legislative budget committee any fiscal year 2017-2018 expenditure of remaining balances from fiscal year 2014-2015 from the automation projects fund.

K.  The $2,500,000 appropriated for an update of the microwave backbone statewide communication system at the department of public safety is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations through June 30, 2019.

Sec. 116.  Arizona commerce authority; allocation

Pursuant to section 43-409, Arizona Revised Statutes, $21,500,000 of the state general fund withholding tax revenues is allocated in fiscal year 2017‑2018 to the Arizona commerce authority, of which $10,000,000 is credited to the Arizona commerce authority fund established by section 41‑1506, Arizona Revised Statutes, and $11,500,000 is credited to the Arizona competes fund established by section 41-1545.01, Arizona Revised Statutes.

Sec. 117.  Arizona commerce authority; appropriation; fiscal year 2017-2018

The sum of $300,000 is appropriated from the state general fund in fiscal year 2017-2018 to the Arizona commerce authority for the purpose of operating a trade office in Mexico City.

Sec. 118.  Department of economic security; appropriation; provider costs; fiscal year 2017-2018

The sums of $10,000,000 from the state general fund and $23,036,000 from developmental disabilities medicaid expenditure authority are appropriated in fiscal year 2017-2018 to the department of economic security for onetime assistance to address developmental disabilities provider cost increases resulting from the enactment of proposition 206, election of November 8, 2016.

Sec. 119.  Department of economic security; appropriation; room and board; fiscal year 2017-2018

The sum of $2,000,000 is appropriated from the state general fund in fiscal year 2017-2018 to the department of economic security for a onetime increase for state-only room and board expenses funded by the division of developmental disabilities.

Sec. 120.  Broadband expansion fund; appropriation; fiscal year 2017-2018

The sum of $3,000,000 is appropriated from the automation projects fund established by section 41-714, Arizona Revised Statutes, in fiscal year 2017-2018 to the broadband expansion fund established by section 15‑249.07, Arizona Revised Statutes, for broadband expansion projects.

Sec. 121.  Department of education empowerment scholarship account fund; operating expenses; review; fiscal year 2017-2018

A.  In addition to any other appropriations made in fiscal year 2017‑2018, the sum of $400,000 is appropriated from the department of education empowerment scholarship account fund established by section 15‑2402, Arizona Revised Statutes, in fiscal year 2017-2018 to the department of education for the department's costs in administering empowerment scholarship accounts.

B.  Before spending the monies appropriated by this section, the department shall submit an expenditure report for review by the joint legislative budget committee.

Sec. 122.  Computer science initiative; appropriation; fiscal year 2017-2018

The sum of $200,000 in onetime funding is appropriated from the state general fund in fiscal year 2017-2018 to the office of the governor for a computer science initiative.  The initiative shall develop new academic standards for computer science, including coding, and professional development opportunities for all teachers to help incorporate computer science into their teaching and learning strategies.

Sec. 123.  Rural assistance; appropriation; fiscal year 2017‑2018; definition

A.  The sum of $2,600,000 in onetime funding is appropriated from the monies earned from investment of monies in the budget stabilization fund established by section 35-144, Arizona Revised Statues, in fiscal year 2017-2018 to the superintendent of public instruction for rural assistance.  The appropriated amount shall be distributed on a pro rata basis based on average daily membership counts from the 2016-2017 school year to school districts and charter schools that are located in a county with a population of less than five hundred thousand persons according to the 2010 United States decennial census, except that a school district or charter school that primarily serves homeless or special needs pupils shall qualify for rural assistance funding regardless of the county in which it is located.

B.  For the purposes of this section, "primarily serves homeless or special needs pupils" means that at least eighty percent of the pupils at the school district or charter school are homeless or qualify for a special education group B weight pursuant to section 15-943, paragraph 2, subdivision (b), Arizona Revised Statutes.

Sec. 124.  Jobs for Arizona graduates program; appropriation; fiscal year 2017-2018

The sum of $100,000 is appropriated from the state general fund in fiscal year 2017-2018 to the superintendent of public instruction for distribution to a nonprofit organization for a jobs for Arizona graduates program.

Sec. 125.  School leadership training; appropriation; fiscal year 2017-2018; report

A.  The sum of $250,000 in onetime funding is appropriated from the state general fund in fiscal year 2017-2018 to the office of the governor for school leadership training.  The office of the governor shall allocate the appropriated amount to a public‑private partnership to train school leaders in effective management strategies and expand the cadre of training coaches and facilitators.

B.  On or before November 1, 2018, the office of the governor shall submit to the president of the senate and the speaker of the house of representatives a report that summarizes the results of school leadership training, including the number of school leaders trained and the amount of matching monies received from nonstate sources.  The office of the governor shall provide a copy of this report to the secretary of state.

Sec. 126.  Department of gaming; appropriation; Arizona breeders award; fiscal year 2017-2018

The sum of $250,000 is appropriated from the racing regulation fund established by section 5-113.01, Arizona Revised Statutes, in fiscal year 2017-2018 to the department of gaming for deposit in the Arizona breeders' award fund established by section 5-113, Arizona Revised Statutes.

Sec. 127.  Department of health services; appropriation; public health emergencies; deposit; fiscal year 2017-2018

The sum of $500,000 is appropriated from the emergency medical services operating fund established by section 36-2218, Arizona Revised Statutes, in fiscal year 2017-2018 for a onetime deposit in the public health emergencies fund established by section 36-122, Arizona Revised Statutes, for the purpose of funding public health emergencies in this state.  The department of health services shall use the monies only on a declaration of a public health emergency by the governor.

Sec. 128.  Administrative office of the courts; appropriation; drug treatment; exemption; fiscal year 2017-2018

The sum of $250,000 is appropriated from the health services lottery monies fund established by section 36-108.01, Arizona Revised Statutes, in fiscal year 2017-2018 to the administrative office of the courts for distribution to a county with a population of more than five hundred thousand persons and less than one million persons according to the 2010 United States decennial census.  The county shall use the monies for a drug treatment alternative to prison program.  The appropriation is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations through June 30, 2019.

Sec. 129.  Auditor general; appropriation; fiscal year 2017‑2018

Notwithstanding any other law, the sum of $200,000 is appropriated from the Arizona water banking fund established by section 45-2425, Arizona Revised Statutes, in fiscal year 2017-2018 to the auditor general for a special audit of the central Arizona water conservation district.  The auditor general shall complete the special audit on or before December 31, 2017.

Sec. 130.  School facilities board; onetime building renewal grants; fiscal year 2017-2018

The sum of $17,167,900 is appropriated from the state general fund in fiscal year 2017-2018 to the school facilities board for building renewal grants.

Sec. 131.  Universities; appropriation; fiscal year 2017-2018; report; review

A.  The sum of $15,000,000 is appropriated from the state general fund in fiscal year 2017-2018 to Arizona state university, northern Arizona university and the university of Arizona for capital improvements or operating expenditures in the following amounts:

1.  Arizona state university        $7,639,500

2.  Northern Arizona university     $3,202,800

3.  University of Arizona           $4,157,700

B.  $1,000,000 of the amount appropriated to Arizona state university pursuant to subsection A, paragraph 1 of this section shall be used for operating expenditures of the school of civic and economic thought and leadership.  This amount must supplement and not supplant any existing state funding or private or external donations to the school.  The appropriated monies and all private and external donations to the school shall be used only for the direct operation of the school and may not be used for indirect costs of the university.

C.  $1,000,000 of the amount appropriated to the university of Arizona pursuant to subsection A, paragraph 3 of this section shall be used for operating expenditures of the center for the philosophy of freedom.  This amount must supplement and not supplant any existing state funding or private or external donations to the center.  The appropriated monies and all private and external donations to the center shall be used only for the direct operation of the center and may not be used for indirect costs of the university.

D.  On or before August 1, 2017, each university shall report the intended use of the monies to the joint legislative budget committee.

E.  Before any expenditure of the monies appropriated in subsection A of this section for capital improvements, each university shall submit the scope, purpose and estimated cost of the capital improvements for review by the joint committee on capital review pursuant to section 41‑1252, Arizona Revised Statutes.

Sec. 132.  Department of water resources; appropriations; contributions to Lake Mead conservation efforts; exemption

A.  The sum of $2,000,000 is appropriated from the state general fund in each of fiscal years 2017-2018, 2018-2019 and 2019-2020 to the department of water resources to use for this state's financial contributions to efforts by Arizona's Colorado River water users to conserve water in Lake Mead to reduce the likelihood of lake elevations dropping to levels that could result in reductions to Arizona's Colorado River allocation.

B.  The appropriations made in subsection A of this section are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

Sec. 133.  Appropriations; debt service payments; state buildings

A.  The sum of $60,103,600 is appropriated from the state general fund in fiscal year 2017-2018 to the department of administration for the purpose of making a debt service payment on the sale and leaseback of state buildings authorized by Laws 2009, third special session, chapter 6, section 32.

B.  The sum of $24,011,500 is appropriated from the state general fund in fiscal year 2017-2018 to the department of administration for the purpose of making a debt service payment on the sale and leaseback of state buildings authorized by Laws 2010, sixth special session, chapter 4, section 2.

Sec. 134.  Phoenix convention center; allocation

Pursuant to section 9-602, Arizona Revised Statutes, $22,499,000 of state general fund revenue is allocated in fiscal year 2017-2018 to the Arizona convention center development fund established by section 9-601, Arizona Revised Statutes.

Sec. 135.  Rio Nuevo multipurpose facility district; estimated distribution; fiscal year 2017-2018

Pursuant to section 42‑5031, Arizona Revised Statutes, a portion of the state transaction privilege tax revenues will be distributed to a multipurpose facility district.  The Rio Nuevo multipurpose facility district is estimated to receive $10,000,000 in fiscal year 2017‑2018.  The actual amount of the distribution will be made pursuant to section 42‑5031, Arizona Revised Statutes.

Fiscal Year 2018-2019 Appropriations

Sec. 136.  Superintendent of public instruction; appropriation; fiscal year 2018-2019

In addition to any other appropriations made in fiscal year 2018‑2019, the sum of $12,000,000 is appropriated from the state general fund in fiscal year 2018-2019 to the superintendent of public instruction for early literacy.

Sec. 137.  New school facilities fund; appropriation; fiscal year 2018-2019

The sum of $37,989,800 is appropriated from the state general fund in fiscal year 2018-2019 for a onetime deposit in the new school facilities fund established by section 15-2041, Arizona Revised Statutes.  The school facilities board shall use the monies only for facilities that will be constructed for school districts that received final approval from the school facilities board between March 2, 2016 and March 1, 2017.

Fiscal Year 2016-2017 Fund Balance Transfers

Sec. 138.  Fund balance transfers; fiscal year 2016-2017; state general fund

Notwithstanding any other law, on or before June 30, 2017, the following amounts from the following sources are transferred to the state general fund for the purpose of providing adequate support and maintenance for agencies of this state:

1.  Arizona health care cost containment system:

Prescription drug rebate fund - state - $30,000,000

2.  Department of health services:

Behavioral health services fund - $35,000,000

Sec. 139.  Department of economic security; capitation payments; transfer

On or before June 30, 2017, the department of economic security shall transfer $24,052,425 from the department long-term care system fund established pursuant to section 36-2953, Arizona Revised Statutes, to the state general fund pursuant to section 36-2953, subsection H, Arizona Revised Statutes.  The transaction shall be recorded as revenue for fiscal year 2016-2017.

Sec. 140.  Fund balance transfer; indirect cost fund; fiscal year 2016-2017

Notwithstanding any other law, on or before June 30, 2017, the sum of $3,800,000 is transferred from the department of health services indirect cost fund established by section 36-108, Arizona Revised Statutes, to the Arizona state hospital fund established by section 36‑545.08, Arizona Revised Statutes.

Fiscal Year 2017-2018 Fund Balance Transfers

Sec. 141.  Appropriations; fund balance transfers; fiscal year 2017-2018; automation projects fund

A.  The amount of $7,300,000 is appropriated from the state general fund in fiscal year 2017-2018 for deposit in the automation projects fund established by section 41-714, Arizona Revised Statutes, for upgrading and maintaining the education learning and accountability system at the department of education.

B.  The amount of $5,000,000 is appropriated from the state general fund in fiscal year 2017-2018 for deposit in the automation projects fund established by section 41-714, Arizona Revised Statutes, for upgrading the children's information library and data source system at the department of child safety.  It is the intent of the legislature that an additional $6,103,000 be available for the project as appropriated in this act.

C.  Notwithstanding any other law, the following amounts are transferred from the following sources in fiscal year 2017-2018 for deposit in the automation projects fund established by section 41-714, Arizona Revised Statutes:

1.  $1,500,000 from the automation operations fund established by section 41-714, Arizona Revised Statutes, for project management of statewide automation and information technology projects.

2.  $3,405,100 from the automation operations fund established by section 41-714, Arizona Revised Statutes, for improving and maintaining network and security infrastructure.

3.  For enhancing statewide data security:

(a)  $1,797,900 from the automation operations fund established by section 41-714, Arizona Revised Statutes.

(b)  $5,065,600 from the state web portal fund established by section 18-421, Arizona Revised Statutes.

(c)  $440,000 from the risk management revolving fund established by section 41-622, Arizona Revised Statutes.

4.  $500,000 from the state information technology fund established by section 18-401, Arizona Revised Statutes, for projects related to e‑government.

5.  For the development of a statewide e-licensing system:

(a)  $45,900 from the acupuncture board of examiners fund established by section 32-3905, Arizona Revised Statutes.

(b)  $45,900 from the athletic training fund established by section 32-4105, Arizona Revised Statutes.

(c)  $40,000 from the board of barbers fund established by section 32-305, Arizona Revised Statutes.

(d)  $27,500 from the board of funeral directors' and embalmers' fund established by section 32-1308, Arizona Revised Statutes.

(e)  $45,900 from the occupational therapy fund established by section 32-3405, Arizona Revised Statutes.

(f)  $27,500 from the board of dispensing opticians fund established by section 32-1686, Arizona Revised Statutes.

(g)  $45,900 from the board of optometry fund established by section 32-1705, Arizona Revised Statutes.

(h)  $27,500 from the nursing care institution administrators' licensing and assisted living facility managers' certification fund established by section 36-446.08, Arizona Revised Statutes.

(i)  $45,900 from the board of physical therapy fund established by section 32-2004, Arizona Revised Statutes.

(j)  $27,500 from the podiatry fund established by section 32-806, Arizona Revised Statutes.

(k)  $80,200 from the board for private postsecondary education fund established by section 32-3004, Arizona Revised Statutes.

(l)  $91,700 from the board of psychologist examiners fund established by section 32-2065, Arizona Revised Statutes.

(m)  $44,100 from the board of respiratory care examiners fund established by section 32-3505, Arizona Revised Statutes.

6.  $3,200,000 from the underground storage tank revolving fund established by section 49-1015, Arizona Revised Statutes, for e-licensing projects at the department of environmental quality.

7.  $1,017,400 from the administrative fund established by section 23-1081, Arizona Revised Statutes, to implement updates to the claims processing system operated by the industrial commission.

8.  $3,497,400 from the state lottery fund established by section 5‑571, Arizona Revised Statutes, to implement updates to the information technology system operated by the Arizona state lottery commission.

9.  For information technology projects at the department of public safety:

(a)  $1,000,000 from the public safety equipment fund established by section 41-1723, Arizona Revised Statutes.

(b)  $2,500,000 from the concealed weapons permit fund established by section 41-1722, Arizona Revised Statutes.

(c)  $1,343,000 from the fingerprint clearance card fund established by section 41-1758.06, Arizona Revised Statutes.

10.  For information technology infrastructure upgrades at the department of revenue:

(a)  $4,000,000 from the liability setoff revolving fund established by section 42‑1122, Arizona Revised Statutes.

(b)  $4,000,000 from the department of revenue administrative fund established by section 42-1116.01, Arizona Revised Statutes.

D.  It is the intent of the legislature that $3,000,000 be made available from the balance of the automation projects fund, established by section 41-714, Arizona Revised Statutes, for information technology infrastructure projects at the department of revenue.

Sec. 142.  Department of law; transfer; financial services settlements; fiscal year 2017-2018

Notwithstanding any other law, on or before June 30, 2018, the attorney general shall direct a total of $8,172,728 received pursuant to the consent judgments in the Moody's Corporation, Moody's Investor Service, Inc. and Moody's Analytics, Inc. settlements to the state general fund to compensate this state for costs resulting from the alleged unlawful conduct of the defendants.

Sec. 143.  Department of corrections building renewal fund; transfer; Arizona correctional industries revolving fund; fiscal year 2017-2018

Notwithstanding any other law, the sum of $1,450,000 is transferred from the Arizona correctional industries revolving fund established by section 41-1624, Arizona Revised Statutes, in fiscal year 2017-2018 to the department of corrections building renewal fund established by section 41‑797, Arizona Revised Statutes.

Sec. 144.  Fund balance transfer; health services lottery monies fund; fiscal year 2017-2018

Notwithstanding any other law, the sum of $1,300,000 is transferred from the health services lottery monies fund established by section 36‑108.01, Arizona Revised Statutes, in fiscal year 2017-2018 to the Arizona state hospital fund established by section 36-545.08, Arizona Revised Statutes.

Payment Deferrals

Sec. 145.  Reduction in school district state aid apportionment in fiscal year 2017-2018; appropriations in fiscal year 2018‑2019

A.  In addition to any other appropriation reductions made in fiscal year 2017-2018, notwithstanding any other law, the department of education shall defer until after June 30, 2018 but not later than July 12, 2018 $930,727,700 of the basic state aid and additional state aid payment that otherwise would be apportioned to school districts during fiscal year 2017‑2018 pursuant to section 15-973, Arizona Revised Statutes.  The funding deferral required by this subsection does not apply to charter schools or to school districts with a student count of less than six hundred pupils, and the department of education shall make the deferral by reducing the apportionment of state aid for each month in the fiscal year by the same amount.

B.  In addition to any other appropriations made in fiscal year 2018‑2019, the sum of $930,727,700 is appropriated from the state general fund in fiscal year 2018-2019 to the department of education and the superintendent of public instruction for basic state aid and additional state aid entitlement for fiscal year 2018-2019.  This appropriation shall be disbursed after June 30, 2018 but not later than July 12, 2018 to the several counties for the school districts in each county in amounts equal to the reductions in apportionment of basic state aid and additional state aid that are required pursuant to subsection A of this section for fiscal year 2017‑2018.

C.  School districts shall include in the revenue estimates they use for computing their tax rates for fiscal year 2017-2018 the monies they will receive pursuant to subsection B of this section.

Statewide Adjustments

Sec. 146.  Appropriation; operating adjustments

                                                    2017–18

Employer health insurance contributions  $ 50,000,000

Fund sources:

State general fund                   $ 25,000,000

Other funds                          $ 25,000,000

Employer health insurance contributions

The amount appropriated is for a onetime employer contribution rate adjustment for employee health insurance in fiscal year 2017-2018.  The joint legislative budget committee staff shall determine and the department of administration shall allocate to each agency or department an amount for the health insurance contribution adjustment.  The joint legislative budget committee staff shall also determine and the department of administration shall allocate adjustments, as necessary, in expenditure authority to implement the increase in employer health insurance contribution rates.  The joint legislative budget committee staff shall use the overall allocation of state general fund and appropriated tuition monies for each university in determining that university's specific adjustment.

Sec. 147.  Appropriations; risk management premium adjustment

A.  The following amounts are appropriated from the state general fund in fiscal year 2017-2018 to the following agencies for adjustments to risk management premiums:

1.  Department of child safety                        $(441,500)

2.  State department of corrections                   $  106,200

3.  Department of economic security                   $  179,800

4.  Arizona historical society                        $  419,600

5.  State land department                             $(493,400)

6.  Supreme court                                     $(198,100)

7.  Court of appeals                                  $ (27,800)

8.  Superior court                                    $ (50,800)

9.  Arizona state university - Tempe                  $  732,500

10.  Northern Arizona university                      $   60,400

11.  University of Arizona                            $(286,900)

B.  The sum of $137,000 in onetime funding is appropriated from the legislative, executive and judicial public buildings land fund established by section 37-525, Arizona Revised Statutes, in fiscal year 2017-2018 to the supreme court for adjustments to risk management premiums. It is the intent of the legislature to find a different fund source for this allocation on an ongoing basis in the fiscal year 2018-2019 budget.

Sec. 148.  Appropriations; Arizona financial information system adjustment

The following amounts are appropriated from the state general fund in fiscal year 2017-2018 to the following agencies for adjustments to Arizona financial information system charges:

1.  Attorney general                                  $ (96,300)

2.  AHCCCS                                            $  106,300

3.  Department of child safety                        $  336,900

4.  State department of corrections                   $(270,600)

5.  Department of education                           $ (19,500)

6.  Department of economic security                   $(364,400)

7.  Department of health services                     $ (83,900)

8.  Department of insurance                           $ (17,900)

9.  Department of juvenile corrections                $ (24,700)

10.  Supreme court                                     $ (37,000)

11.  Department of revenue                             $  509,400

12.  Secretary of state                                $ (21,500)

13.  Department of water resources                     $ (16,800)

Sec. 149.  Department of law; general agency counsel charges; fiscal year 2017-2018

The department of administration shall allocate to each agency or department not exempt pursuant to section 41-191.09, Arizona Revised Statutes, the following amounts for general agency counsel provided by the department of law:

1.  Department of administration                      $127,700

2.  Office of administrative hearings                 $  3,000

3.  Arizona arts commission                           $  3,100

4.  Automobile theft authority                        $  1,400

5.  Citizens clean elections commission               $  2,700

6.  State department of corrections                   $  2,000

7.  Arizona criminal justice commission               $  8,700

8.  Arizona state schools for the deaf

and the blind                                   $100,200

9.  Commission for the deaf and the hard of hearing   $  4,100

10.  Arizona early childhood development and

health board                                    $ 47,100

11.  Department of education                           $132,000

12.  Department of emergency and military affairs      $ 30,000

13.  Department of environmental quality               $135,600

14.  Arizona exposition and state fair board           $ 20,900

15.  Arizona department of financial institutions      $  1,900

16.  Department of forestry and fire management        $ 13,400

17.  Department of gaming                              $ 37,300

18.  Department of health services                     $170,000

19.  Arizona historical society                        $    700

20.  Arizona department of housing                     $ 19,300

21.  Department of insurance                           $ 10,500

22.  Department of juvenile corrections                $  9,400

23.  State land department                             $  2,100

24.  Department of liquor licenses and control         $ 11,400

25.  Arizona state lottery commission                  $ 24,800

26.  Arizona state parks board                         $ 45,800

27.  State personnel board                             $    600

28.  Arizona pioneers' home                            $ 12,100

29.  Commission for postsecondary education            $  1,800

30.  Department of public safety                       $677,400

31.  Radiation regulatory agency                       $  3,800

32.  Arizona state retirement system                   $ 69,100

33.  Department of revenue                             $  4,900

34.  Department of state - secretary of state          $  1,800

35.  State treasurer                                   $  9,200

36.  Department of veterans' services                  $ 52,700

Other Provisions

Sec. 150.  Legislative intent; expenditure reporting

It is the intent of the legislature that all departments, agencies and budget units receiving appropriations under the terms of this act continue to report actual, estimated and requested expenditures by budget programs and budget classes in a format that is similar to the budget programs and budget classes used for budgetary purposes in prior years.  A different format may be used if deemed necessary to implement section 35‑113, Arizona Revised Statutes, agreed to by the director of the joint legislative budget committee and incorporated into the budget preparation instructions adopted by the governor's office of strategic planning and budgeting pursuant to section 35‑112, Arizona Revised Statutes.

Sec. 151.  FTE positions; reporting; definition

Full-time equivalent (FTE) positions contained in this act are subject to appropriation.  The director of the department of administration shall account for the use of all appropriated and nonappropriated FTE positions, excluding those in the universities.  The director of the department of administration shall submit the fiscal year 2017-2018 report on or before October 1, 2018 to the director of the joint legislative budget committee.  The reports shall compare the level of appropriated FTE usage in each fiscal year to the appropriated level.  For the purposes of this section, "FTE positions" means the total number of hours worked, including both regular and overtime hours as well as hours taken as leave, divided by the number of hours in a work year.  The director of the department of administration shall notify the director of a budget unit if the budget unit's appropriated FTE usage has exceeded its number of appropriated FTE positions.  The universities shall each report to the director of the joint legislative budget committee in a manner comparable to the department of administration reporting.

Sec. 152.  Filled FTE positions; reporting

On or before October 1, 2017, each agency, including the judiciary and universities, shall submit a report to the director of the joint legislative budget committee on the number of filled appropriated and nonappropriated FTE positions, by fund source, as of September 1, 2017.

Sec. 153.  Transfer of spending authority

The department of administration shall report monthly to the director of the joint legislative budget committee on any transfers of spending authority made pursuant to section 35-173, subsection C, Arizona Revised Statutes, during the prior month.

Sec. 154.  Interim reporting requirements

A.  State general fund revenue for fiscal year 2016-2017, including a beginning balance of $284,015,000 and other onetime revenues, is forecasted to be $9,805,400,000.

B.  State general fund revenue for fiscal year 2017-2018, including onetime revenues, is forecasted to be $9,855,300,000.

C.  State general fund revenue for fiscal year 2018-2019, including onetime revenues, is forecasted to be $10,066,700,000.  State general fund expenditures for fiscal year 2018‑2019 are forecasted to be $10,008,300,000.

D.  State general fund revenue for fiscal year 2019-2020, including onetime revenues, is forecasted to be $10,523,000,000.  State general fund expenditures for fiscal year 2019‑2020 are forecasted to be $10,365,300,000.

E.  The executive branch shall provide to the joint legislative budget committee a preliminary estimate of the fiscal year 2016-2017 state general fund ending balance on or before September 15, 2017.  The estimate shall include projections of total revenues, total expenditures and ending balance.  The department of administration shall continue to provide the final report for the fiscal year in its annual financial report pursuant to section 35‑131, Arizona Revised Statutes.

F.  Based on the information provided by the executive branch, the staff of the joint legislative budget committee shall report to the joint legislative budget committee on or before October 15, 2017 as to whether the fiscal year 2017-2018 revenues and ending balance are expected to change by more than $50,000,000 from the budgeted projections.  The joint legislative budget committee staff may make technical adjustments to the revenue and expenditure estimates in this section to reflect other bills enacted into law.  The executive branch may also provide its own estimates to the joint legislative budget committee on or before October 15, 2017.

Sec. 155.  Definition

For the purposes of this act, "*" means this appropriation is a continuing appropriation and is exempt from the provisions of section 35‑190, Arizona Revised Statutes, relating to lapsing of appropriations.

Sec. 156.  Definition

For the purposes of this act, "expenditure authority" means that the fund sources are continuously appropriated monies that are included in the individual line items of appropriations.

Sec. 157.  Definition

For the purposes of this act, "review by the joint legislative budget committee" means a review by a vote of a majority of a quorum of the members.