Assigned to APPROP                                                                                                                              AS ENACTED

 

 


 

 

ARIZONA STATE SENATE

Fiftieth Legislature, Second Regular Session

 

FINAL AMENDED

FACT SHEET FOR S.B. 1523/H.B. 2852

 

general appropriations; 2012-2013.

 

Purpose

 

            Makes FY 2013 state General Fund (GF) and Other Fund (OF) appropriations for the operation of state government and adjusts FY 2012 state GF and OF appropriations.

           

Provisions

FY 2013 GF and OF Appropriations

 

1.      Makes the following FY 2013 state GF and OF appropriations above FY 2012:

 

 

Summary of Changes

Fund Source

Comments

FY 2013 above FY 2012

 

Arizona Department of Administration (ADOA)

ENSCO Lease-Purchase

GF

 

(1,436,400)

HRIS COP Payment – Personnel Division Fund

OF

 

(1,635,200)

Risk Management/Worker Comp Claims

OF

 

1,546,000

 

Arizona Health Care Cost Containment System (AHCCCS)

Formula Changes

GF

 

26,022,400

Eliminate Rollover

GF

 

5,672,400

Breast Cancer Screening

GF

 

2,000,000

Formula Changes

OF

 

37,841,900

Healthcare Group Administration

OF

 

(1,235,400)

 

a)      Changes a footnote to require, instead of allow, AHCCCS to transfer up to $1,200,000 from the Traditional Medicaid Services line item to the Attorney General for costs associated with Tobacco Settlement litigation.

b)      Adds a footnote appropriating any excess Graduate Medical Education monies to AHCCCS.

c)      Adds a footnote appropriating any excess disproportionate share payments to AHCCCS.

 

Attorney General – Department of Law

Cross-Border Prosecutions

GF

 

1,200,000

Pro Rata Elimination/Direct Funding

OF

 

(3,400,000)

Board of Behavioral Health Examiners

Curriculum Review

OF

 

24,000

IT Upgrades

OF

 

105,600

Attorney General Legal Services

OF

 

15,500

 

State Capital Postconviction Public Defender Office

Eliminate Office

GF

 

(688,900)

 

State Board of Chiropractic Examiners

Private Rent

OF

 

2,800

 

Arizona Community Colleges

Formula Changes

GF

 

(5,233,500)

 

Corporation Commission

Shift Health Insurance Costs

GF

 

75,000

Shift Health Insurance Costs

OF

 

(75,000)

Utility Rate Hearing Costs

OF

 

901,000

Securities/Public Fund Shift

OF

 

1,054,200

 

Department of Corrections (DOC)

Eliminate One-time Leap Year Costs

GF

 

(800,100)

Additional Correctional Officers

GF

 

3,766,100

Eliminate One-Time Radio Conversion Cost

OF

 

(5,750,000)

 

AZ State Schools for the Deaf and the Blind

Formula Changes

OF

 

614,400

 

Department of Economic Security (DES)

DD Formula Changes

GF

 

4,744,200

Adoption Services Caseload

GF

 

3,710,000

DD Provider Rate Increase

OF

 

1,733,800

TANF Backfill from the (Long Term Care (LTC) Fund

OF

 

25,456,100

TANF Backfill

OF

 

(18,528,600)

Adoption Backfill from LTC Fund

OF

 

17,027,400

 

a)      Adds a  footnote allowing DES to transfer up to 10 percent of TANF Block Grant funds to the to the Social Services Block Grant for use in the Division of Children, Youth and Families.

b)      Adds an intent footnote that DES increase DD provider rates by two percent beginning April 1, 2013.

c)      Includes a footnote requiring reversion of funds if DES receives more than estimated TANF Block Grant monies and requires DES to report on any amounts reverted.

 

Arizona Department of Education (ADE)

Formula Changes

GF

 

(36,023,200)

Competitive Grants

GF

 

3,000,000

K-3 Reading Grants

GF

 

40,000,000

CORL/Additional Assistance Increase

GF

 

15,000,000

Teacher Certification

GF

Investigations/FTEs

686,600

Data System

GF

Continuation of FY 2012 funding

5,000,000

Data System

OF

Continuation of FY 2012 funding

1,200,000

 

a)      Adds a reporting footnote on the ADE data system appropriation. 

b)      Includes a footnote allowing ADE to use up to $1,500,000 of the K-3 Reading Program appropriation for administration.

c)      Adds a footnote outlining the uses and requirements of the Innovative Education Program Grants appropriation.

 

Department of Emergency and Military Affairs

Nuclear Emergency Management

GF

Previously Enacted

9,600

 

Department of Environmental Quality

Shift Waste Program from Solid Waste Fees

OF

 

(700,000)

Emissions Contract Costs

OF

 

1,000,000

Use VEI Fund for Safe Drinking Water Program

OF

 

1,800,000

Shift Waste Program to Recycling Fund

Of

 

1,200,000

 

Board of Executive Clemency

Eliminate One-Time Annual Leave Payout

GF

 

(13,200)

Hourly Pay

GF

 

48,900

 

Department of Financial Institutions

Three Examiner FTE Positions

GF

 

200,400

3 New Loan and Mortgage Examiners

OF

 

189,100

 

State Forester

Additional Fire Suppression

GF

 

1,000,000

 

Arizona Game and Fish Department

Watercraft Licensing Revenue Realignment

OF

 

(175,000)

 

Department of Gaming

Revenue Realignment

OF

 

54,300

 

Office of the Governor

Eliminate Oil Overcharge Administration Appropriation

OF

 

(186,700)

 

Department of Health Services (DHS)

Formula Changes

GF

 

51,144,800

Non-Medicaid SMI Services

GF

 

38,692,000

State Hospital Funding

GF

 

2,600,000

End of Statutory Biotechnology Funding

OF

 

(500,000)

Align Licensing Expenditures w/ Revenue

OF

 

(402,600)

Align Land Fund Expenditures with Revenue

OF

 

(500,000)

State Hospital (Shift to Indirect Cost Fund)

OF

 

(1,320,200)

Increase Newborn Screening Fees

OF

 

1,320,200

 

Board of Homeopathic & Integrated Medical Examiners

Licensing Exam Development

OF

 

2,000

 

Department of Housing

Revenue Realignment

OF

 

(619,400)

 

Department of Juvenile Corrections

Population Decline/Catalina Closure

GF

 

(3,800,000)

 

Independent Redistricting Commission

Additional Funding

GF

 

1,450,000

 

Legislature – Auditor General

Increased Audits

GF

 

1,000,000

 

Legislature – Legislative Council

Legislative Automation Projects

GF

 

3,200,000

 

 

 

 

Arizona State Lottery Commission

Adjusted Revenue Estimate

OF

 

1,889,700

 

 

Board of Medical Student Loans

End of Program

GF

 

(67,000)

End of Program

OF

 

(20,200)

 

Nursing Care Inst. Admin. Board

Training Program Licensing

OF

 

64,300

 

Occupational Safety & Health Review Board

Eliminate One-time Costs

GF

 

(15,000)

 

Arizona State Parks Board

Move LEBSF to Treasurer

OF

Previously Enacted

(2,183,800)

Increase State Parks Enhancement Fund

OF

 

2,820,400

Net Revenue Fund Charge

OF

 

350,000

 

Office of Pest Management

Revenue Realignment

OF

 

(700,400)

 

Arizona Pioneers’ Home

One-Time Medical Equipment Replacement

OF

 

25,100

 

Commission for Postsecondary Education

Reduced Federal Funds

OF

 

(2,101,300)

 

Department of Public Safety

Eliminate One-Time County Assistance Grant

GF

 

(1,000,000)

GIITEM Subaccounts Grants –Including ACJC Transfer

OF

 

299,700

End of Statutory DNA Identification System Approach

OF

 

(980,000)

DNA Testing

OF

 

2,487,600

Vehicle Replacement

OF

 

1,955,200

Officer Retirement

OF

 

9,174,600

 

Arizona Department of Racing

Shift to Self-Funding

GF

Previously Enacted

(1,002,100)

Breeders’ Award

GF

 

250,000

Shift to Self-Funding

OF

Previously Enacted

1,102,100

Pari-mutuel Receipts

OF

 

280,000

 

 

 

 

Radiation Regulatory Agency

Nuclear Emergency Management

GF

Previously Enacted

(40,000)

Additional X-Ray Inspector

OF

 

54,300

Revenue Authority

OF

 

10,000

 

 

 

 

State Real Estate Department

Hearing Attorney Staff

GF

 

50,100

 

Audit and Investigation Staff

GF

 

210,500

 

 

Board of Respiratory Care Examiners

Eliminate One-Time Equipment Funding

OF

 

(49,000)

 

Arizona State Retirement System

Eliminate One-Time Plan Design Costs

OF

 

(850,000)

 

Department of Revenue

Liability Setoff Software

OF

 

690,000

BRITS Upgrades

OF

 

1,801,200

 

School Facilities Board (SFB)

New School Debt Service Change

GF

 

9,324,000

Administrative Costs

GF

 

300,000

 

Secretary of State (SOS)

Eliminate One-time Litigation Costs

GF

 

(85,000)

 

Office of Tourism

Tourism Funding

GF

 

7,000,000

 

Arizona Department of Transportation (ADOT)

Revenue Realignment

OF

 

(825,200)

 

State Treasurer

Shift LEBSF from Parks

OF

 

2,183,800

Eliminate One-Time Retirement Study Costs

OF

 

(100,000)

Investment Analyst

OF

 

110,100

 

Universities – Arizona Board of Regents (ABOR)

Performance Funding

GF

 

5,000,000

Parity Funding/Course Redesign and Capital Improvement

GF

 

15,273,700

 

a)      Includes a footnote outlining the requirements and intent for the Course Redesign and Capital appropriation:

                    i.      Requires $11,971,100 to be distributed to ASU campuses.

                  ii.      Requires $3,302,600 to be distributed to NAU.

b)      Adds a footnote allocating specific amounts to the university campuses for performance funding and requires reporting on the final allocations.

 

Universities – Arizona State University (ASU) – Tempe

ASU Main – Enrollment Growth

OF

 

14,116,000

Shift to ABOR Performance Funding

GF

 

(2,030,000)

 

Universities – ASU – East Campus

ASU East – Enrollment Growth

OF

 

352,100

Shift to ABOR Performance Funding

GF

 

(156,300)

 

Universities – ASU– West Campus

ASU West – Enrollment Growth

OF

 

(947,900)

Shift to ABOR Performance Funding

GF

 

(271,700)

 

Universities – Northern Arizona University (NAU)

NAU – Enrollment Growth

OF

 

1,921,800

Shift to ABOR Performance Funding

GF

 

(834,600)

 

Universities – University of Arizona (UA) –Main

UA Main – Enrollment Growth

OF

 

8,901,000

Shift to ABOR Performance Funding

GF

 

(1,707,400)

 

Universities – UA – Health Sciences Center

UA – HSC – Enrollment Growth

OF

 

632,200

Medical Center Funding

GF

 

6,000,000

 

Department of Veterans’ Services

One-Time Veterans’ Home Start-up

GF

 

(1,853,600)

New Tucson Veterans’ Home Operating Costs

OF

 

7,831,900

 

Department of Water Resources (DWR)

Reverse Shift to New City Fees

GF

 

6,300,000

Eliminate City Fee

OF

 

(6,300,000)

 

Department of Weights and Measures

Vehicles

GF

 

275,000

Ongoing Vehicle Replacement Funding

GF

 

30,000

 

2.      Makes a nonlapsing $2,000,000 appropriation from the state GF in FY 2013 to ADOA,  to comply with the state’s obligation relating to the settlement of the White Mountain Apache Tribe’s Water Rights Claim.

 

3.      Allocates $31,500,000 of state GF withholding tax revenue in FY 2013 to the Arizona Commerce Authority (ACA) to be dispersed as follows:

a)      $10,000,000 to the ACA Fund; and

b)      $21,500,000 to the Arizona Competes Fund.

 

4.      Appropriates $300,000 in FY 2013 from the state GF to DHS for distribution to qualifying hospitals for the maintenance of essential emergency department and Level IV Trauma Services.

 

5.      Appropriates $1,379,600 from the Long-Term Care System Fund and $2,692,900 from federal Medicaid authority in FY 2013 to DHS to increase behavioral health provider reimbursement by two percent, beginning on April 1, 2013.

 

6.      Appropriates $2,000,000 in FY 2013, from the Personnel Division Fund (PDF) if H.B. 2571 (state personnel system) becomes law, to ADOA for operating costs.

 

7.      Appropriates $1,450,000 from the state GF in FY 2013 to the Independent Redistricting Commission (IRC) for operating expenses and allows the monies to be used for FY 2012 obligations.

 

8.      Makes the $1,450,000 FY 2013 appropriation to the IRC non-lapsing, except that all monies remaining unexpended and unencumbered after all IRC expenses are paid, revert to the state GF.

 

9.      Provides funding for ADOT’s Motor Vehicle Division from the State Highway Fund rather than the Highway User Revenue Fund as was done in FY 2012.

 

10.  Appropriates $16,633,400 in FY 2013 from the state GF and $11,695,200 from OFs, after September 29, 2012, to state agencies for one-time critical retention payments to uncovered employees.

 

11.  Outlines allocation and restrictions or the critical retention payments.

 

FY 2012 Appropriation Adjustments

 

12.  Requires the AHCCCS Administration, in FY 2012, to transfer up to $1,364,300 from the Traditional Medicaid Services line item to the Attorney General for costs associated with Tobacco Settlement litigation.

 

13.  Appropriates, in addition to any other FY 2012 appropriations, $75,000 from the state GF to the Corporation Commission for operating expenses.

 

14.  Reduces the following appropriations to the Corporation Commission, in addition to any other FY 2012 reductions, from the indicated funds:

a)      $50,000 from the Public Access Fund (PAF); and

b)      $25,000 from the Securities Regulatory and Enforcement Fund (SREF). 

 

15.  Requires the Corporation Commission, by June 30, 2012 to transfer $50,000 from the PAF and $25,000 from the SREF to the state GF.

 

16.  Reduces, in addition to any other FY 2012 reductions, $12,300,000 from the state GF appropriation made to DES for Home and Community Based Services – Medicaid.

 

17.  Appropriates, in addition to any other FY 2012 appropriations, the following sums from the following sources to DHS for Medicaid capitation payments in FY 2012:

a)      $12,300,000 from the state GF;

b)      $33,900,000 from the Prescription Drug Rebate Fund; and

c)      $95,535,400 in Federal Medicaid Expenditure Authority.

 

18.  Allows DHS, in FY 2012, to use monies in the IGA and ISA Fund as the state Medicaid match rate for Behavioral Health Services.

 

19.  Requires DHS to report to the director of the JLBC the proposed amount of the IGA and ISA Fund monies to be used for the match, the source of the monies, including reconciliation payments and penalties and the total amount of reconciliation payments and penalties in the fund.

 

20.  Makes a FY 2012 supplemental appropriation, if H.B. 2571 (state personnel system) becomes law, of $154,000 from the PDF to ADOA for operating costs.

 

21.  Authorizes ADOA to negotiate and settle with the federal government any debts incurred due to disallowed fund transfers and expenditures of federal participation monies in FYs 2010 and 2011, and appropriates $10,400,000 from the Risk Management Revolving Fund in FY 2012 to ADOA for this purpose.

 

22.  Requires ADOA to report to the JLBC on the final agreement with the federal government before expending the $10,400,000.

 

23.  Adds a $2,500,000 state GF supplemental appropriation to DHS in FY 2012 for operating expenses associated with the Arizona State Hospital.

 

24.  Makes a FY 2012 supplemental appropriation from the state GF of $11,500,000 to SFB’s Building Renewal Grant Fund to maintain existing school facilities.

 

25.  Exempts the FY 2012 state GF appropriation of $651,400 to the SOS for Library Grants-In-Aid from lapsing.

 

 

 

Elimination of the AHCCCS Rollover

 

26.  Repeals session law that required AHCCCS to defer $344,201,701 in total capitation payments in FY 2012.

 

27.  Eliminates the FY 2013 appropriation of $344,344,800 for the deferral of capitation payments plus interest.

28.  Makes FY 2012 supplemental appropriations to the AHCCCS Administration for Traditional Medicaid Services, as follows:

a)      $51,500,000 from the Prescription Drug Rebate Fund;

b)      $112,600,700 from the state GF; and

c)      $372,544,100 in federal Medicaid expenditure authority.

 

Eighth Congressional District (CD 8) Election

 

29.  Appropriates $1,900,000 from the state GF to the SOS in FY 2012 for the purpose of reimbursing counties for expenditures related to the CD 8 election and exempts the monies from lapsing until June 30, 2013.

 

30.  Requires the SOS to reimburse counties for the additional cost of printing ballots, other election materials, compensation to election board and tally officers and other administration costs for the special primary election and special general election for CD 8.

 

31.  Allows the SOS to advance a portion of the estimated expenses to each county.

 

32.  Stipulates that a county that receives an advance is to provide subsequent documentation to the SOS.

 

33.  Mandates the Clerk of the Board of Supervisors of each county to submit an itemized claim, together with documentation, for expenses incurred or to be incurred by the county for SOS approval.

 

34.  States that upon SOS approval, a county’s claim is submitted to the ADOA for payment

 

Budget Stabilization Fund (BSF)

 

35.  Appropriates $250,000,000 from the state GF to the BSF in FY 2012 and $200,000,000 in FY 2014 for a total deposit of $450,000,000.

 

Fund Transfers

 

36.  Transfers the following amounts from the corresponding sources to the state GF by June 30, 2013 for the purposes of providing adequate support and maintenance for agencies of this state:

a)      ADOA - State Employee Health Insurance Trust Fund - $30,000,000.

b)      ADEQ - Emissions Inspection Fund - $10,000,000.

 

37.  Transfers the following amounts from the corresponding sources to the state GF by June 30, 2013 and June 30, 2014 for the purposes of providing adequate support and maintenance for agencies of this state:

a)      Judiciary – Supreme Court:

                                i.      State Aid to Courts Fund - $50,000.

                              ii.      Alternative Dispute Resolution Fund - $200,000.

                            iii.      Arizona Lengthy Trial Fund - $100,000.

                            iv.      Public Defender Training Fund - $25,000.

b)      Judiciary – Superior Court:

                             i.         Judicial Collection Enhancement Fund - $400,000.

                           ii.         Criminal Justice Enhancement Fund - $75,000.

                         iii.         Drug Treatment and Education Fund - $150,000.

                         iv.         Juvenile Probation Services Fund - $5,000,000.

 

38.  Prohibits the Administrative Office of the Courts from assessing fees on political subdivisions to offset any fund transfers.

 

39.  Requires the Attorney General, by June 30,2013, to direct $50,000,000 received pursuant to the consent judgments in the National Mortgage Settlement (NMS) to the state GF to compensate the state for costs resulting from alleged unlawful conduct of the defendants.

 

40.  States legislative intent that the $50,000,000 deposited by the Attorney General are to be used in current state GF efforts in areas covered by the NMS.

 

41.  Transfers, by June 30, 2013, $2,500,000 from the Corrections Fund to the DOC Building Renewal Fund to provide adequate support and maintenance for DOC.

 

Automation Projects

 

42.  Appropriates the following amounts from the indicated sources and in the indicated years to the Automation Projects Fund for implementing, upgrading or maintaining automation and information technology projects for any state agency:

 

Fund Source

FY 2013

FY 2014

FY 2015

FY 2016

State GF

16,800,00

20,000,000

20,000,000

23,000,000

Information Technology Fund

1,500,000

-

-

-

State Web Portal Fund

5,600,000

-

-

-

Automation Operations Fund

4,200,000

-

-

-

 

Debt Service Payments

 

43.  Appropriates $60,107,500 in FY 2013 from the state GF to ADOA for the purposes of making debt service payments on the sale and lease-back of state buildings authorized by Laws 2010, Third Special Session.

 

44.  Appropriates $24,012,300 in FY 2013 from the state GF to ADOA for the purposes of making debt service payments on the sale and lease-back of state buildings authorized by Laws 2009, Sixth Special Session.

Payment Deferrals (Rollovers)

 

DES

 

45.  Requires DES to continue to defer $35,000,000 in payments in FY 2013 for services provided in May and June 2013 until after July 1, 2013, and appropriates the same amount in FY 2014 for the purposes of paying for those services.

 

46.  Prohibits DES from including the following in the deferred payments:

a)      payments to child care providers; and

b)      May payments to providers of DD Services.

 

ADE

 

47.  Requires ADE to continue to defer $952,627,700 in Basic State Aid (BSA) and Additional State Aid (ASA) payments in FY 2013, until after July 1, 2013,  that would otherwise be apportioned to school districts, and appropriates the same amount in FY 2014 for the purposes of paying the deferral.

 

48.  Stipulates that the FY 2014 appropriation is disbursed after July 1, 2013 and no later than August 29, 2013 to the several counties for the school districts in each county in the amounts equal to the reductions in the apportionment of BSA and ASA as a result of the deferral.

 

49.  Requires school districts to include in the revenue estimates that they use for computing tax rates for FY 2013 the monies that they will receive in FY 2014 as a result of the deferral.

 

50.  Exempts charter schools from the funding deferral.

 

ABOR

 

51.  Requires ABOR to continue to defer $200,000,000 in FY 2013, until after July 1, 2013, which is allocated in the individual campus appropriations, and appropriates the same amount in FY 2014 to pay for the deferral.

 

52.  Stipulates that ADOA is to distribute the $200,000,000 to ABOR no later than October 1, 2013.

Statewide Adjustments

 

53.  Makes the following statewide adjustments for FY 2013:

 

Area of Adjustment

GF

OF

Total

State Lease-purchase and Rental Rates

0

1,499,600

1,499,600

Retirement Rates

6,602,900

1,454,200

8,057,100

Attorney General - Department of Law Pro-Rata adjustments

(3,987,800)

0

(3,987,800)

Annual Retirement Contribution Rate Contributions

9,202,800

1,993,700

11,196,500

Health Insurance Premium Holiday Adjustments

25,000,000

0

25,000,000

 

Health Insurance Premium Holiday

 

54.  Requires ADOA to not collect heath insurance premiums for two pay periods in FY 2013 for purposes of instituting a one-time insurance premium holiday and generate $25,000,000 in state GF savings.

 

55.  States that the premium holiday applies to all premiums, including employer, employee and retiree contributions.

 

56.  Requires ADOA to report to JLBC on its plans for implementing the premium holiday. 

 

Miscellaneous

 

57.  Requires AHCCCS and DHS, by January 7, 2013, to report to the director of the JLBC the total amount of Medicaid Reconciliation Payments received by that date since July 1, 2012.

 

58.  Repeals session law that required the reduction of state GF and OF appropriations to state agencies and from nonfederal appropriated funds for benefit costs associated with the Health Savings Account.

 

59.  States legislative intent that all departments, agencies or budget units receiving appropriations under this act are to continue to report actual, estimated and requested expenditures in a specified format.

 

60.  Specifies amounts that various agencies and departments are charged for general agency counsel provided the Attorney General, if the Criminal Justice BRB (S.B. 1531) becomes law.

 

61.  Outlines Attorney General pro-rata, retirement rate and health insurance premium holiday adjustment guidelines.

 

62.  Forecasts state GF revenues for FY 2012, excluding the beginning balance and including one-time revenues as $8,645,992,200.

 

63.  Forecasts state GF revenues for FY 2013, excluding the beginning balance and including one-time revenues as $8,693,355,700.

 

64.  Contains reporting requirements.

 

65.  Contains definitions.

 

66.  Contains instructions.

 

67.  Becomes effective on signature of the Governor.

 

 

 

Senate Action on S.B. 1523                                       House Action H.B. 2852

 

APPROP         2/21/12     DP     9-3-1-0                     APPROP         2/21/12     DP     9-4-0-0

3rd Read           5/1/12                 21-9-0-0                   3rd Read           5/1/12               39-20-1-0

(S.B. 1523 was substituted for H.B. 2852 on 3rd Read)

 

Signed by the Governor May 7, 2012

Chapter 294

 

Prepared by Senate Research

May 9, 2012

KY/ly