ARIZONA STATE SENATE

RESEARCH STAFF

 

KATY YANEZ

LEGISLATIVE  RESEARCH ANALYST

APPROPRIATIONS COMMITTEE

Telephone: (602) 926 -3171

Facsimile: (602) 926 -3833

 

TO:                  MEMBERS OF THE SENATE

                        APPROPRIATIONS COMMITTEE            

DATE:                        June 29, 2009

 

SUBJECT:      Strike everything amendment to S.B. 1470, relating to general appropriations; 2009-2010; trailer

_____________________________________________________________________________                                                                                                                                                      

Purpose

 

            Makes state General Fund (GF) and other fund (OF) appropriations for FY 2009-2010 for the operation of state government and makes various budget revisions and transfers.

 

Background

 

            On June 4, 2009, the Arizona State Legislature passed a series bills to enact the FY 2009-2010 state budget.  S.B. 1188, Forty-Ninth Legislature, First Regular Session was the general appropriations act for this package.

 

            S.B. 1470 makes changes to S.B 1188 to enact the FY 2009-2010 state budget.

 

Provisions

 

Agency Restorations and Reductions

 

1.      Reduces or restores state GF and OF appropriations as they relate to S.B 1188, as passed by the Senate, as indicated below:

Summary of Changes

Fund Source

S.B. 1188

Change to S.B. 1188

Revised S.B. 1188

 

Arizona Department of Administration (ADOA)

Lump Sum Suspension/Reduction

GF

(1,212,200)

1,212,200

0

Salary Lump Sum

GF

(619,400)

619,400

0

 

Arizona Health Care Cost Containment System (AHCCCS)

Rate Adjustments

GF

0

22,405,000

22,405,000

FY 2008-2009Annualization

GF

(907,700)

333,100

(574,600)

Part D- Co-Pays

GF

0

(3,427,400)

(3,427,400)

Eliminate KidsCare Parents (10/1/09)

GF

(7,321,500)

1,830,400

(5,491,100)

Reduce KidsCare Eligibility to 150% and Grandfather current 

 

GF

 

(3,597,800)

3,597,800

0

Implement DRA Copayments

GF

(1,124,800)

1,124,800

0

Tobacco Tax Shift

GF

(662,800)

662,800

0

Eliminate KidsCare Parents

OF

(28,974,000)

5,805,800

(23,168,100)

Reduce KidsCare Eligibility to 150% and Grandfather current 

OF

(11,410,900)

11,410,900

0

Tobacco Tax Shift

OF

662,800

(662,800)

0

 

Arizona Department of Commerce

Commerce Economic Development Commission (CEDC) Funding Shift

OF

0

1,000,000

1,000,000

 

Arizona Commission on the Arts

Lump Sum Suspension/Reduction

GF

0

(250,000)

(250,000)

Salary Lump Sum

GF

(29,400)

29,400

0

FY 2008-2009Annualization

GF

(563,100)

563,100

0

Endowment Offset

GF

300,000

(300,000)

0

Suspend General Fund Support

GF

(915,100)

915,100

0

Eliminate Working Capital

GF

0

(301,500)

(301,500)

 

Arizona Community Colleges

Suspend Hold Harmless Provision

GF

0

(1,677,300)

(1,677,300)

Fund Dual Enrollment at 50%

GF

(2,163,800)

2,163,800

0

 

Corporation Commission

Lump Sum Suspension/Reduction

GF

(214,100)

214,100

0

Salary Lump Sum

GF

(207,100)

207,100

0

Fund Shift to Other Funds (Securities/Public Access)

GF

0

(3,616,100)

(3,616,100)

Public Access/Securities Fund Shift

OF

0

3,448,100

3,448,100

 

State Department of Corrections

Population Growth/Heath Care Costs

GF

(5,196,500)

5,196,500

0

Provisional Beds

GF

33,283,700

100

33,283,800

Lump Sum Suspension/Reduction

GF

(1,736,500)

(29,363,500)

(31,100,000)

Personnel Reduction

GF

(12,627,700)

12,627,700

0

Operations Fund Shift - Restoration

GF

0

4,774,400

4,774,400

Eliminate or Reduce Stipends

GF

(8,012,400)

8,012,400

0

Use AHCCCS Rates for Outside Health Care

GF

0

(25,000,000)

(25,000,000)

Operations Fund Shift - Restoration

OF

0

(4,774,400)

(4,774,400)

 

Arizona State Schools for the Deaf and the Blind

Lump Sum Suspension/Reduction

GF

(1,859,100)

246,500

(1,612,600)

 

 

Department of Economic Security (DES)

DD Caseloads Growth

GF

17,464,500

9,400,000

26,864,500

Lump Sum Suspension/Reduction

GF

(39,458,100)

7,810,000

(31,648,100)

Salary Lump Sum

GF

(7,190,000)

7,190,000

0

 

Department of Emergency and Military Affairs

Lump Sum Suspension/Reduction

GF

(696,000)

(287,900)

(983,900)

Salary Lump Sum

GF

(232,800)

232,800

0

FY 2008-2009Annualization

GF

(60,800)

51,300

(9,500)

Other Reductions

GF

0

(227,700)

(227,700)

Reduce Governor’s Emergency Fund

GF

0

(600,000)

(600,000)

Border Security

GF

928,800

(928,800)

0

State Land Lease

GF

0

387,000

387,000

 

Department of Environmental Quality (ADEQ)

Lump Sum Suspension/Reduction

GF

(1,524,700)

1,524,700

0

Salary Lump Sum

GF

(429,100)

429,100

0

Water Quality Assurance Revolving Fund (WQARF)

GF

(4,000,000)

(2,000,000)

(6,000,000)

Other Reductions

GF

0

(283,000)

(283,000)

 

Governor’s Office of Equal Opportunity

Lump Sum Suspension/Reduction

GF

0

(36,800)

(36,800)

Suspend Agency Operations

GF

(249,300)

249,300

0

 

State Board of Equalization

Lump Sum Suspension/Reduction

GF

(16,400)

16,400

0

Salary Lump Sum

GF

(29,300)

29,300

0

 

Board of Executive Clemency

Lump Sum Suspension/Reduction

GF

(114,700)

114,700

0

Salary Lump Sum

GF

(75,700)

(20,300)

(96,000)

 

Department of Fire, Building, and Life Safety

Lump Sum Suspension/Reduction

GF

(179,400)

179,400

0

Salary Lump Sum

GF

(140,000)

300

(139,700)

Other Reductions

GF

0

(626,400)

(626,400)

 

Government Information Technology Agency (GITA)

Lump Sum Suspension/Reduction

GF

(22,000)

22,000

0

Salary Lump Sum

GF

(46,800)

46,800

0

 

Office of the Governor

Napolitano Leave Payouts

GF

(600,000)

600,000

0

County Fair Livestock & Ag. Promotion Pari-mutuel Revenue Shift

GF

1,779,500

(1,779,500)

0

 

 

Governor’s Office of Strategic Planning and Budgeting (OSPB)

Supplemental

GF

(250,000)

250,000

0

 

Department of Health Services (DHS)

Reduce Non-Title 19 Behavioral Health

GF

(17,000,000)

17,000,000

0

Assurance& Licensure Self Funding

GF

0

(4,493,400)

(4,493,400)

ASH Operating Budget/County Fund Shift

GF

0

(3,377,400)

(3,377,400)

ASH Shortfall

GF

0

2,000,000

2,000,000

AZ Community Protection and Treatment Center County Shift

GF

0

(2,149,500)

(2,149,500)

Assurance& Licensure Self Funding

OF

0

4,493,400

4,493,400

 

Arizona Commission of Indian Affairs

Suspend General Fund Support

GF

(211,000)

211,000

0

Lump Sum Suspension/Reduction

GF

0

(84,400)

(84,400)

 

Department of Insurance

Lump Sum Suspension/Reduction

GF

(368,500)

185,200

(183,300)

Salary Lump Sum

GF

(303,000)

151,000

(151,500)

 

Department of Juvenile Corrections

Lump Sum Suspension/Reduction

GF

(1,250,000)

1,250,000

0

Work Release/Community Treatment/Other

GF

0

(8,770,900)

(8,770,900)

Land Fund Shift

GF

2,549,000

651,000

3,200,000

Land Fund Shift

OF

(2,549,000)

(651,000)

(651,000)

 

Department of Liquor Licenses and Control

Lump Sum Suspension/Reduction

GF

(173,800)

117,000

(56,800)

Eliminate GF/Make Self-funding

GF

0

(2,141,000)

(2,141,000)

Fund Shift to Liquor Fee Fund

OF

0

2,141,000

2,141,000

 

Arizona State Lottery Commission

Advertising Adjustment

OF

(9,162,700)

5,000,000

5,000,000

 

Arizona State Parks Board

Lump Sum Suspension/Reduction

GF

(423,200)

432,200

0

Salary Lump Sum

GF

(276,500)

276,500

0

FY 2008-2009Annualization

GF

(605,300)

605,300

0

Use of All Park Fees for Operating

OF

0

329,100

329,100

Self-funding

GF

0

(3,610,200)

(3,610,200)

 

Personnel Board

Lump Sum Suspension/Reduction

GF

(18,600)

18,600

0

Salary Lump Sum

GF

(8,500)

8,500

0

Shift to Personnel Board Fund

GF

0

(329,100)

(329,100)

Shift to Personnel Board Fund

OF

0

329,100

329,100

 

 

Department of Public Safety  (DPS)

Lump Sum Suspension/Reduction

GF

(767,300)

(699,900)

(1,467,200)

Restore Unused Gang and Immigration Intelligence Team Enforcement Mission (GIITEM ) to GF

GF

0

(6,400,000)

(6,400,000)

Eliminate County Attorney Gang Prosecution Funding

GF

0

(700,000)

(700,000)

Increase Local GIITEM Match to 25%

GF

0

(650,000)

(650,000)

Shift Funding for AZ Fraudulent ID Task Force

GF

0

(1,000,000)

(1,000,000)

Other Reductions

GF

0

(1,732,700)

(1,732,700)

Eliminate 15 Positions Authorized in FY 2007-2008

GF

0

(939,800)

(939,800)

Shift ACTIC from GF to Federal Funds

GF

0

(800,000)

(800,000)

Shift Crime Lab to New Crime Lab Fund

OF

8,800,000

1,600,000

10,400,000

 

Arizona Department of Racing

Salary Lump Sum

GF

0

1,779,500

1,779,500

Restore Audit/Collections Staff

GF

662,800

(662,800)

0

 

Department of Revenue

Temporary Collection Staff

GF

0

3,000,000

3,000,000

Unclaimed Property Revenue Shift

GF

2,963,200

(2,963,200)

0

Unclaimed Property Fund Shift

GF

0

(21,536,800)

21,536,800

Unclaimed Property Fund Shift

OF

0

24,500,000

24,500,000

Restore Audit/Collections Staff

GF

662,800

(662,800)

0

 

School Facilities Board

Lump Sum Suspension/Reduction

GF

(500,000)

400,000

(100,000)

Salary Lump Sum

GF

(79,600)

79,600

0

Building Renewal Grants Funding

GF

(7,000,000)

3,000,000

(4,000,000)

 

Secretary of State

Special Election

GF

0

8,346,900

8,346,900

 

State Board of Tax Appeals

Lump Sum Suspension/Reduction

GF

(7,800)

1,900

(5,900)

Salary Lump Sum

GF

(15,100)

15,000

0

 

Department of Weights and Measures

Lump Sum Suspension/Reduction

GF

(79,700)

39,800

(39,900)

Salary Lump Sum

GF

(64,900)

32,500

(32,400)

 

2.      Reduces the state GF appropriation for FY 2009-2010 to DES by  an additional $15,000,000.

 

Fund Transfers

 

3.      Changes the amounts transferred from OF’s to the state GF by S.B 1188, as passed by the Senate, as indicated below.

Summary of Changes

S.B. 1188

Change to S.B. 1188

Revised S.B. 1188

ADOA

Capital Outlay Stabilization Fund (COSF) – Salary Reduction

(316,900)

316,900

0

COSF – Spending Reduction

(1,300,000)

1,300,000

0

 

 

Arizona Commission on the Arts

Arts Endowment Fund – Transfer

(15,000,000)

10,347,700

(4,652,300)

 

Department of Commerce

Arizona Job Training Fund – Spending Reduction

(1,850,000)

15,000

(1,835,000)

Arizona Job Training Fund – Excess Balance

(30,000,000)

11,725,000

(18,275,000)

Arizona Job Training Fund – Salary Reduction

(30,900)

(69,100)

(100,000)

CEDC – Spending Reduction

(394,300)

394,300

0

CEDC – Excess Balance

(2,693,700)

532,200

(2,161,200)

CEDC – Salary Reduction

(73,200)

73,200

0

Greater Arizona Development Authority (GADA)Revolving Fund – Spending Reduction

(55,600)

5,600

(50,000)

GADA Revolving Fund – Excess Balance

(1,579,000)

1,079,000

(500,000)

GADA Revolving Fund – Salary Reduction

(19,800)

1,000

(18,800)

 

Registrar of Contractors

Registrar of Contractors Fund – Salary Reduction

(696,000)

696,000

0

Registrar of Contractors Fund – Excess Balance

(664,000)

(1,912,400)

(2,576,400)

Registrar of Contractors Fund – Spending Reduction

(1,216,400)

1,216,400

0

 

DES

Arizona Training Program at Phoenix Closure Fund – Excess Balance

(1,450,400)

1,450,400

0

Domestic Violence Shelter Fund – Excess Balance

(483,800)

(480,000)

(963,800)

Domestic Violence Shelter Fund – Spending Reduction

(480,000)

480,000

0

Industries for the Blind Fund – Salary Reduction

(360,100)

360,100

0

Long-term Care System Fund – Spending Reduction

(2,972,600)

2,972,600

0

 

ADEQ

Air Permits Administration Fund – Excess Balance

(1,498,500)

(1,132,300)

(2,630,800)

Emissions Inspection Fund – Excess Balance

(7,000,000)

(1,300,000)

(8,300,000)

Underground Storage Tank Revolving Fund – Spending Reduction

(3,821,100)

1,821,100

(2,000,000)

Underground Storage Tank Revolving Fund – Excess Balance

0

(12,821,100)

(12,821,100)

 

GITA

Information Technology (IT) Fund – Salary Reduction

(250,700)

250,700

0

IT Fund – Spending Reduction

(368,300)

168,400

(199,900)

 

 

Summary of Changes

S.B. 1188

Change to S.B. 1188

Revised S.B. 1188

 

Office of the Governor

Prevention of Child Abuse Fund – Spending Reduction

(63,000)

63,000

0

 

Department of Housing

Housing Trust Fund– Excess Balance

0

(2,000,000)

(2,000,000)

 

Arizona State Lottery Commission

State Lottery Fund – Salary Reduction

(594,700)

394,400

(200,300)

State Lottery Advertising Fund – Transfer

(9,162,700)

5,000,000

(4,162,700)

 

Arizona State Parks Board

State Lake Improvement Fund (SLIF) – Salary Reduction

(185,400)

185,400

0

SLIF  – Excess Balance

(4,753,000)

1,704,800

(3,048,200)

SLIF  – Spending Reduction

(415,000)

415,000

0

 

DPS

Public Safety Equipment Fund – Spending Reduction

(2,485,400)

1,730,000

(755,400)

 

ADOT

Arizona Highways Magazine Fund – Salary Reduction

(236,500)

236,500

0

Arizona Highways Magazine Fund – Excess Balance

(404,500)

384,500

(20,000)

Arizona Highways Magazine Fund – Spending Reduction

(647,800)

647,800

0

Transportation Department Equipment Fund – Salary Reduction

(1,182,100)

1,182,100

0

Transportation Department Equipment Fund – Spending Reduction

(3,215,500)

697,000

(2,518,500)

State Highway– Spending Reduction

(42,003,600)

14,003,600

(28,000,000)

 

Arizona State University   (ASU) – Main Campus

Auxiliary Fund – Salary Reduction

(5,133,500)

5,133,500

0

Auxiliary Fund – Excess Balance

(6,943,400)

6,943,400

0

Auxiliary Fund – Spending Reduction

(18,448,700)

18,448,700

0

 

ASU – East Campus

Auxiliary Fund – Salary Reduction

(107,600)

107,600

0

Auxiliary Fund – Spending Reduction

(221,600)

221,600

0

 

ASU – West Campus

Auxiliary Fund – Salary Reduction

(63,300)

63,300

0

Auxiliary Fund – Excess Balance

(142,800)

142,800

0

Auxiliary Fund – Spending Reduction

(182,000)

182,000

0

 

 

Summary of Changes

S.B. 1188

Change to S.B. 1188

Revised S.B. 1188

 

Northern Arizona University

Auxiliary Fund – Salary Reduction

(1,820,700)

1,820,700

0

Auxiliary Fund – Excess Balance

(4,725,300)

4,725,300

0

Auxiliary Fund – Spending Reduction

(4,868,600)

4,868,600

0

 

University of Arizona  (UA) – Main Campus

Auxiliary Fund – Salary Reduction

(7,576,000)

7,576,000

0

Auxiliary Fund – Excess Balance

(12,766,300)

12,766,300

0

Auxiliary Fund – Spending Reduction

(23,864,900)

23,864,900

0

 

UA  – Health Sciences Center

Auxiliary Fund – Salary Reduction

(768,400)

768,400

0

Auxiliary Fund – Excess Balance

(950,200)

950,200

0

Auxiliary Fund – Spending Reduction

(1,284,000)

1,284,000

0

 

Universities

System wide Restoration- Fund Transfer

40,000,000

(40,000,000)

0

 

Department of Water Resources

Arizona Water Banking Fund – Excess Balance

(4,000,000)

(1,400,000)

(5,400,000)

 

Department of Weights and Measures

Air Quality Fund – Salary Reduction

(70,600)

70,600

0

Air Quality Fund – Spending Reduction

(154,300)

124,700

(29,600)

 

4.      Amends the amount of Vehicle License Tax (VLT) transferred to the state GF in FY 2009-2010 from $76,783,600 to $43,170,600.

 

5.      Changes from $9,000,000 to $7,000,000 the amount appropriated from the state GF to WQARF in FY 2009-2010.

 

6.      Increases the FY 2010-2011 state GF appropriation to DES from $25,000,000 to $42,000,000 for the purpose of paying bills for services provided in June 2010.

 

7.      Increases the FY 2010-2011 state GF appropriation to AHCCCS from $117,889,100 to $118,032,200 for health payments deferred in FY 2009-2010.

 

8.      Changes, upon receipt of federal assistance, FY 2009-2010 state GF appropriation and federal expenditure authority of Title XIX monies made to AHCCCS from $575,206,900 to $581,861,700.

 

9.      Changes, upon receipt of monies from the Federal Education Stabilization Fund (FESF), the FY 2009-2010 state GF reduction and corresponding disbursement of federal monies from $223,234,200 to $222,114,000 and specifies the amount is for Basic State Aid. 

 

10.  Affirms that for FY 2009-2010 the $222,114,000 in federal monies do not impact the revenue control limit of any school district or charter school.

 

11.  Changes, upon receipt of FESF monies, the FY 2009-2010 state GF reduction to ABOR from $19,514,600 to $10,875,100.

 

12.  Transfers $5,400,000 from interest earnings on the Arizona Water Banking Fund to the state GF.

 

Operating Adjustments

 

13.  Makes a FY 2009-2010 operating adjustment to State Employee Health Insurance (SEHI) by

       increasing the amount from $10,000,000 to $21,815,300 and allocates the fund sources as    follows:

a)      state GF – $14,998,000,

b)      other appropriated funds – $6,817,300 (which may be allocated for various funds).

 

14.  Removes the provision stating that the amount appropriated for SEHI adjustments is deposited in the SEHI Trust Fund for FY 2009-2010, and states the amount is for increases in the employer share of SEHI contributions.

 

15.  Requires JLBC staff to determine and ADOA to allocate to each agency’s or department’s employee related expenditures, an amount for the employer share of the employee health insurance adjustments.

 

16.  Requires JLBC staff to determine and ADOA to allocate adjustments, as necessary, in expenditure authority to allow implementation of the SEHI adjustments.

 

Conditional Appropriations

 

17.  Requires the directors of JLBC and OSPB to project the state GF revenues for FY 2009-2010, to include all state GF revenue, one-time revenues and revenues from voter-approved temporary additional transaction privilege tax increment, but excluding the beginning balance.

 

18.  Mandates that on or before December 15, 2009, the directors of JLBC and OSPB are to jointly notify the Governor, the President of the Senate, and the Speaker of the House of Representatives where the projected revenue exceeds all budgeted state GF revenues, and if so, the total excess amount.

 

19.  States that if the amount projected by directors of JLBC and OSPB exceeds all budgeted state

      GF revenues, the amount of the difference is allocated and appropriated as follows:

a)      fifty percent of the difference to reduce the required net available proceeds of lease-purchase finance agreements in FY 2009-2010, not to exceed $217,000,000, and

b)      fifty percent of the difference in proportion to the corresponding reductions or required distributions made to:

i)     ADE for Basic State Aid that would have otherwise been apportioned in FY 2009-2010 for soft capital, not to exceed $175,000,000,

ii)   ADE for additional assistance funding that would have otherwise been apportioned to charter schools in FY 2009-2010, not to exceed $5,000,000,

iii)       cities and towns that receive VLT monies and are required to distribute a portion of those monies in FY 2009-2010 to local school districts, not to exceed $22,000,000,

iv)       DES for the state GF appropriation reduction, not to exceed $15,000,000.

 

20.  Stipulates that if the report indicates an excess amount of revenues, the Governor shall issue a public notice  stating the amounts appropriated or allocated from the state GF for the above stated purposes.

 

Miscellaneous

 

21.  Changes the FY 2008-2009 state GF revenue forecast from $8,403,873,200 to $8,404,873,200.

 

22.  Changes the FY 2009-2010 state GF revenue forecast from $8,224,391,100 to $8,407,472,500.

 

23.  Becomes effective upon the enactment of S.B. 1188, Forty-Ninth Legislature, First Regular

Session.

 

KY/jas

 

 

 

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