ARIZONA STATE SENATE

Fifty-Fourth Legislature, First Regular Session

FACT SHEET FOR S.B. 1548

general appropriations act; 2019-2020

Purpose

Makes statutory and session law changes relating to general appropriations necessary to implement the FY 2020 state budget.

Provisions

FY 2020 Ongoing Fund and Major Footnote Changes

Arizona Department of Administration (ADOA)

Ongoing General Fund (GF) and Other Fund (OF) Changes

Summary of Changes	Source	Comments	FY 2020 Changes
Shared Services – 1740 W Adams	GF		10,000

Major Footnote Changes

1. Removes footnote that limits the subsidy that the ADOA may provide for public transit opportunities to 50 percent.

2. Requires ADOA to submit a report by September 1, 2020, to the Joint Legislative Budget Committee (JLBC) on the results of the pilot projects for the state employee public transportation service reimbursements.

3. Extends the vehicle replacement and maintenance savings report deadline from August 1, 2018, to August 1, 2019.

4. Prohibits ADOA from charging state agencies more than $10.42 per user per month for statewide email and calendar services.

5. Requires monies appropriated to ADOA for the public safety regional communications to be distributed to the City of Sierra Vista for technology infrastructure maintenance at the Southeastern Arizona Communications Center.

Arizona Department of Agriculture (AZDA)

Ongoing General Fund (GF) and Other Fund (OF) Changes

Summary of Changes	Source	Comments	FY 2020 Changes
Dairy Inspector Employee Expenditures	GF	1 FTE	137,000
AG Lab Relocation	GF		400,000

Arizona Health Care Cost Containment System (AHCCCS)

Ongoing General Fund (GF) and Other Fund (OF) Changes

Summary of Changes	Source	Comments	FY 2020 Changes
Formula	GF		(55,000,000)
Kids Care	GF		1,600,000
Shift DD Behavioral Health to DES	GF		(26,100,000)
Elderly Long-Term Care	GF		4,800,000
Additional ALTCS Funding	GF		7,000,000

Attorney General (AG)

Major Footnote Changes

6. Appropriates $950,000 in FY 2021, $2,350,000 in FY 2022 and $2,350,000 in FY 2023 from the Consumer Protection-Consumer Fraud Revolving Fund to the AG for operating costs of the Criminal Division.

7. Requires the AG to submit a report, by March 1, 2020, on its distribution of the police equipment grants to the President of the Senate, the Speaker of the House of Representatives, the JLBC and the Governor's Office of Strategic Planning and Budgeting.

8. Requires the AG to submit a report for JLBC review on its expenditure plan for the Arizona Peace Officer Memorial Fund.

State Board for Charter Schools

Ongoing General Fund (GF) and Other Fund (OF) Changes

Summary of Changes	Source	Comments	FY 2020 Changes
Additional FTEs	GF	5 FTEs	400,000

Department of Child Safety (DCS)

Ongoing General Fund (GF) and Other Fund (OF) Changes

Summary of Changes	Source	Comments	FY 2020 Changes
Kinship Stipend	GF		2,400,000

Major Footnote Changes

9. Requires DCS to submit a report, by January 2, 2020, to the JLBC on DCS efforts to implement the Family First Prevention Services Act and outlines requirements for the report.

10. Requires DCS to provide the Kinship Stipend to all unlicensed kinship caregivers without requiring the caregiver to file an application.

Community Colleges

Ongoing General Fund (GF) and Other Fund (OF) Changes

Summary of Changes	Source	Comments	FY 2020 Changes
Formula	GF		200,000
Diné College	GF		1,000,000

Major Footnote Changes

11. Requires the Diné College Board of Regents to submit a report, by October 15, 2020, to the Governor, the Speaker of the House of Representatives, the President of the Senate, the JLBC and the Secretary of State that details the course completion rate for students that receive remedial education during the 2020 school year.

Arizona Department of Corrections (ADC)

Ongoing General Fund (GF) and Other Fund (OF) Changes

Summary of Changes	Source	Comments	FY 2020 Changes
Inmate Health Care	GF		30,900,000
Health Care Monitoring Staff	GF	10 FTE	1,000,000

Major Footnote Changes

12. Requires ADC to submit an expenditure plan for JLBC review prior to spending monies on non-personal services or employee related expenditures.

13. Requires ADC to submit a report on quarterly benchmarks for correctional officer staffing to the JLBC.

14. Requires ADC to receive approval from the Arizona Strategic Enterprise Office and the Information and Technology Authorization Committee prior to using any monies for the replacement of the Adult Inmate Management System.

15. Stipulates that, before spending any monies to replace the Adult Inmate Management System, ADC must submit an expenditure report for JLBC review.

16. Requires ADC to submit month-to-month and year-to-date expenditures that include correctional officer staffing levels.

17. Requires ADC to report inmate healthcare performance measures by August 1, 2019, and February 1, 2020, to the JLBC.

18. Specifies that the $5,083,500 increase in the private prison per diem is for a 10 percent salary increase for private prison correctional officers.

Board of Cosmetology

Major Footnote Changes

19. Exempts the FY 2018 Board of Cosmetology Fund $34,200 appropriation to the Board of Cosmetology from lapsing until June 30, 2023.

Department of Economic Security (DES)

Ongoing General Fund (GF) and Other Fund (OF) Changes

Summary of Changes	Source	Comments	FY 2020 Changes
Shift DD Behavioral Health Services	GF		26,100,000
Proposition 206 Costs	GF		13,000,000
Additional DD Funding	GF		13,000,000
Childcare Block Grant	OF		48,000,000

Arizona Department of Education (ADE)

Ongoing General Fund (GF) and Other Fund (OF) Changes

Summary of Changes	Source	Comments	FY 2020 Changes
Formula	GF		(54,700,000)
Results Based Funding	GF		30,000,000
School Resource Officer/School Counselors	GF		15,000,000
Juvenile Detention Education	GF		700,000

Department of Emergency and Military Affairs (DEMA)

Ongoing General Fund (GF) and Other Fund (OF) Changes

Summary of Changes	Source	Comments	FY 2020 Changes
National Guard Tuition Reimbursement	GF		1,000,000

Department of Forestry and Fire Management (DFFM)

Ongoing General Fund (GF) and Other Fund (OF) Changes

Summary of Changes	Source	Comments	FY 2020 Changes
Hazardous Vegetation Removal	GF		1,000,000
Non-Native Vegetation Eradication	GF		1,000,000

Major Footnote Changes

20. Appropriates $750,000 in FY 2020 to DFFM to be distributed to the Navajo County Community College District to fund a public safety and emergency services training facility which must be available to both public and private entities for training.

Office of the Governor

Ongoing General Fund (GF) and Other Fund (OF) Changes

Summary of Changes	Source	Comments	FY 2020 Changes
Foster Youth Education	GF		1,500,000
Budget Staff	GF		650,000

Department of Health Services (DHS)

Major Footnote Changes

21. Requires the $3,125,000 FY 2020 appropriation for Alzheimer's Disease Research to be distributed through a grant to a nonprofit that has been headquartered in the state for at least 10 years and has participating member institutions that conduct research and education.

Judiciary

Ongoing General Fund (GF) and Other Fund (OF) Changes

Summary of Changes	Source	Comments	FY 2020 Changes
Court of Appeals Operating	GF		200,000
Adult Probation Funding	GF		200,000
Probation Salary Deficit	GF		1,000,000
Judicial Nominating Commissions	GF		100,000

Major Footnote Changes

22. Requires the Administrative Office of the Courts to submit a report, by November 1, 2019, for JLBC review on the county-approved salary adjustments provided to probation officers.

Arizona Department of Juvenile Corrections (ADJC)

Ongoing General Fund (GF) and Other Fund (OF) Changes

Summary of Changes	Source	Comments	FY 2020 Changes
County Cost Sharing – Non-Maricopa/Pima	GF		2,800,000

Legislature

Ongoing General Fund (GF) and Other Fund (OF) Changes

Summary of Changes	Source	Comments	FY 2020 Changes
House of Representatives	GF		2,500,000
JLBC	GF		300,000
Senate	GF		3,700,000

Arizona State Parks

Major Footnote Changes

23. Specifies that the appropriation for the Arizona Trail is for the employment of youth conservation corps members to maintain the trail and requires the Arizona State Parks Board to submit an expenditure plan for review to the JLBC.

Commission for Postsecondary Education

Ongoing General Fund (GF) and Other Fund (OF) Changes

Summary of Changes	Source	Comments	FY 2020 Changes
IT System	GF		34,000

Department of Public Safety (DPS)

Ongoing General Fund (GF) and Other Fund (OF) Changes

Summary of Changes	Source	Comments	FY 2020 Changes
Maricopa Night Highway Patrol	GF	6 FTE	1,500,000
Southern Arizona Highway Patrol	GF	12 FTE	3,000,000
Loop 202 South Mountain	GF	30 FTE	6,400,000

Major Footnote Changes

24. Requires DPS to submit an expenditure plan for the peace officer training equipment line item to the JLBC prior to any expenditures in FY 2020.

School Facilities Board (SFB)

Major Footnote Changes

25. Specifies that the amount appropriated for new school facilities must be used only for facilities and land costs for school districts that received final approval from the SFB by September 1, 2019.

Secretary of State (SOS)

Ongoing General Fund (GF) and Other Fund (OF) Changes

Summary of Changes	Source	Comments	FY 2020 Changes
Presidential Preference Election	GF		(700,000)
IT Staff	GF		200,000
Uniform Laws Commission	GF		100,000

Arizona Office of Tourism (AOT)

Ongoing General Fund (GF) and Other Fund (OF) Changes

Summary of Changes	Source	Comments	FY 2020 Changes
Marketing Funding	GF		1,100,000

State Treasurer

Major Footnote Changes

26. Requires the State Treasurer to report, by June 30, 2019, and June 30, 2020, to the JLBC and the Governor's Office of Strategic Planning and Budgeting on its current fiscal year and estimated fiscal year expenditures of interest earnings spent for its banking service contract, external investment management agreement, administrative and information technology costs.

27. Requires the State Treasurer to report, within 30 days after the award of a request for proposals for its general ledger software system replacement, to the JLBC on the total cost of development and ongoing annual operating costs.

Universities

Ongoing General Fund (GF) and Other Fund (OF) Changes

Summary of Changes	Source	Comments	FY 2020 Changes
Teachers Academy – ABOR	GF		15,000,000
Adaptive Athletics – ABOR	GF		160,000
Washington Center – ABOR	GF		300,000
Biomedical Research – NAU	GF		3,000,000

Major Footnote Changes

28. Requires the Arizona Board of Regents (ABOR) to distribute the appropriated monies for adaptive athletics to universities to maintain and operate an intercollegiate adaptive athletics program and only be spent when universities collect matching funds.

29. Requires the monies for adaptive athletics to be spent on scholarships, equipment, travel expenses, and tournament fees, and prohibits monies from being spent on administrative costs.

30. Requires ABOR to distribute the appropriated monies for the Washington, D.C. Internships Center equally to the three state universities to provide student internships in Washington, D.C. in partnership with a third-party.

31. Requires the Medical Research Foundation to submit an expenditure and performance report to Northern Arizona University (NAU). NAU responsible for transmitting the report to the JLBC by February 1, 2020.

Department of Veterans' Services (DVS)

Ongoing General Fund (GF) and Other Fund (OF) Changes

Summary of Changes	Source	Comments	FY 2020 Changes
Veteran Suicide Prevention	GF		1,600,000

Major Footnote Changes

32. Requires the DVS suicide prevention appropriation of $1,225,500 to be distributed to a nonprofit veterans' services organization that provides services related to reducing suicides among Arizona's military and veteran population.

33. Requires DVS to submit an expenditure plan including the status of non-state matching grants.

34. Requires the veterans' trauma treatment services appropriation of $450,000 to be used to provide grants to contractors who provide trauma treatment services training to specified licensed health professionals.

35. Allows the Auditor General to use the remaining balance of $31,200, from the FY 2015 appropriation of $250,000 for an independent consultant, for general operating expenses in FY 2020.

36. Removes the FY 2019 appropriation and transfer of $450,000 from the Statewide Board E-Licensing Subaccount to the ADOA to include the Board of Behavioral Health Examiners in the statewide e-licensing project.

FY 2019 Supplemental Appropriation and Adjustments

General Fund (GF) and Other Fund (OF)

Agency	Fund	Amount
ADOA – Federal Government Disallowed Costs – Risk Management Revolving Fund	OF	9,168,400
Arizona Health Care Cost Containment System (AHCCCS)	GF	(46,564,900)
Department of Child Safety (DCS) – Federal Child Care and Development Fund Block Grant	OF	7,400,000
Department of Economic Security (DES) – Federal Child Care and Development Fund Block Grant	OF	48,400,000
DES – Food Bank Storage	GF	950,000
DES		1,000,000
DES		24,071,300
DES – Developmental Disabilities Program Expenses	GF	10,400,000

Department of Economic Security (DES)

37. Allows DES, beginning April 1, 2020, to use up to $25,000,000 from the Budget Stabilization Fund (BSF) to provide funding for reimbursement grants.

38. Requires DES, before using the BSF monies, to notify the Director of the Joint Legislative Budget Committee (JLBC) and the Governor's Office of Strategic Planning and Budgeting.

39. Requires the BSF appropriation to be fully reimbursed by September 1, 2020, and to be reimbursed in full as part of the closing process for FY 2020.

40. Prohibits the BSF appropriation from being used for additional programmatic expenditures.

Arizona Department of Education (ADE)

41. Allows the Superintendent of Public Instruction to transfer up to $1,600,000 from the state GF appropriation for Basic State Aid for FY 2019 to the results-based funding program for FY 2019 without JLBC review.

42. Reverts any transferred amount that exceeds the amount needed to address a funding shortfall for the results-based funding program to the state GF on June 30, 2019.

43. Reduces the FY 2019 appropriation from the state GF to the Superintendent of Public Instruction for Basic State Aide by $16,833,400.

44. Appropriates $6,833,400 in FY 2019 from the State Trust Revenue Bond Debt Service Fund to the Superintendent of Public Instruction for Basic State Aid.

Board of Funeral Directors and Embalmers

45. Exempts $75,000 from the FY 2019 appropriation of $441,700 to the Board of Funeral Directors and Embalmers from lapsing until June 30, 2020, for the purposes of paying document digitization costs.

State Land Department (Land Department)

46. Reduces the FY 2019 appropriation from the state GF to the Land Department by $128,300 to realign the funding level for Central Arizona Project (CAP) user fees with the FY 2019 CAP user fee rates.

Secretary of State (SOS)

47. Reverts unexpended and unencumbered monies from the FY 2018 $2,941,100 Election Systems Improvement Fund appropriation to the SOS to the Elections Systems Improvement Fund on June 30, 2020.

School Facilities Board (SFB)

48. Appropriates $25,000,000 from the state GF in FY 2019 to the SFB for building renewal grants.

Elected Officials Retirement Adjustments

49. Appropriates $287,800 from the state GF in FY 2019 for elected official's retirement contribution rate adjustments.

50. Requires JLBC staff to determine and the Arizona Department of Administration (ADOA) to allocate the amount for the retirement adjustment to each agency or department.

51. Requires JLBC staff to determine and the ADOA to allocate:

a) the amount for the retirement adjustment to each agency or department; and

b) as necessary, adjustments in expenditure authority to allow implementation of the elected official's retirement contribution rate adjustment.

52. Specifies that the $287,800 appropriation includes state funding for Elected Officials' Retirement Plan adjustments for the portion of superior court judges' salaries paid by the state.

Budget Stabilization Fund (BSF)

53. Appropriates $271,107,000 from the state GF in FY 2019 and FY 2020 to the BSF.

Additional FY 2020 Appropriations and Adjustments

Arizona Department of Administration (ADOA)

54. Appropriates $7,150,650 from the state GF in FY 2020 to the ADOA for equal distribution to counties with a population fewer than 900,000 to maintain essential county services.

55. Appropriates $500,000 from the state GF in FY 2020 to the ADOA for distribution to a county with a population between 30,000 and 40,000 persons to maintain essential county services.

56. Appropriates $3,000,000 from the state GF in FY 2020 to the ADOA for equal distribution to counties with a population fewer than 300,000 in order to supplement the cost of the Elected Officials' Retirement Plan (EORP).

57. Prohibits the counties from using the distributed FY 2020 $3,000,000 appropriation for anything other than employer contributions to the EORP.

58. Appropriates $190,000,000 from the state GF in FY 2020 to the ADOA to retire the June sale leaseback issuance entered into in 2010.

59. Requires the ADOA to report to the JLBC the proposed terms of retiring the June sale leaseback issuance.

Arizona Health Care Cost Containment System (AHCCCS)

60. Appropriates $2,068,000 from the Prescription Drug Rebate Fund and $7,810,000 from the Expenditure Authority in FY 2020 to AHCCCS for onetime funding of information technology system operating expenses as follows:

a) $449,700 for the asset verification system;

b) $4,774,600 for the provider management system; and

c) $4,653,700 for the electronic visit verification system.

Arizona Commission on the Arts

61. Appropriates $2,000,000 from the state GF in FY 2020 to the Arizona Arts Trust Fund.

Automation Projects Fund (APF)

62. Appropriates the following amounts in FY 2020 from the APF subaccounts to the ADOA for the following automation and information technology (IT) projects:

Project	Subaccount	Amount
Children's Information Library Data Source System	Department of Child Safety Subaccount	10,100,000
Feasibility study to replace or upgrade IT systems	Arizona Department of Agriculture Subaccount	200,000
Replace School Finance Data System	Arizona Department of Education Subaccount	3,000,000
IT projects	Arizona Medical Board Subaccount	300,000
Update the Concealed Weapons Tracking System	Department of Public Safety Subaccount	410,000
Update the Criminal Justice Information System	Department of Public Safety Subaccount	2,301,000
Feasibility study on a business one-stop web portal	Arizona Department of Administration Subaccount	1,000,000

63. Requires the ADOA to submit a quarterly report to the JLBC on implementing projects approved by the Information Technology Authorization Committee that includes the projects expenditures, deliverables, timeline for completion and current status.

64. Exempts FY 2020 appropriations from the APF from lapsing until June 30, 2021.

65. Specifies that transfers into the APF are not appropriations out of the APF and that only direct appropriations out of the APF are appropriations.

66. Extends the exemption from lapsing for the FY 2018 APF appropriations from June 30, 2019, until June 30, 2020.

67. Appropriates any remaining balances as of June 30, 2017, in the APF for the replacement of the ADOA E-Procurement System and the Arizona Department of Corrections (ADC) Inmate Information Management System through FY 2020, rather than FY 2019.

Arizona Commerce Authority (ACA)

68. Allocates $15,500,000 of state GF withholding tax revenue in FY 2020 to the ACA, of which $10,000,000 is credited to the ACA Fund and $5,500,000 is credited to the Arizona Competes Fund.

69. Appropriates $300,000 from the state GF in FY 2020 to the ACA to operate a trade office in Mexico City.

70. Appropriates $3,000,000 in onetime funding from the state GF in FY 2020 to the ACA for providing rural broadband grants and requires the ACA to report to the JLBC on its plan for distributing these grants by January 31, 2020.

71. Exempts the FY 2020 $3,000,000 appropriations from the state GF for providing rural broadband grants from lapsing.

Water Infrastructure Finance Authority (WIFA)

72. Appropriates $500,000 in onetime funding from the state GF in FY 2020 to the Small Drinking Water Systems Fund for emergency grants to interim operators of small drinking water systems.

73. Requires WIFA to annually report to the JLBC in 2019, 2020 and 2021 on the annual amount of expenditures from the Small Drinking Water Systems Fund.

Community Colleges

74. Appropriates the following amounts to the Maricopa Community College District and the Pima Community College District from the state GF in each of FY 2020, FY 2021 and FY 2022 for STEM and workforce development:

Community College District	Amount
Maricopa	1,600,000
Pima	400,000

75. Appropriates $15,000,000 from the state GF in FY 2020 to the Pima Community College District to expand the Pima Aviation Center.

76. Appropriates $5,800,000 from the state GF in FY 2020 to the Maricopa Community College District for health care specialty expansion.

77. Appropriates the following amounts from the state GF in FY 2020 to the following community college districts:

Community College District	Amount
Cochise	3,140,100
Coconino	1,003,100
Gila	343,200
Graham	1,568,100
Mohave	1,152,100
Navajo	889,200
Pinal	1,795,400
Santa Cruz	64,200
Yavapai	1,761,300
Yuma and La Paz	2,483,300

Arizona Department of Education (ADE)

78. Appropriates $800,000 from the state GF in FY 2020 to ADE to distribute to an elementary school district that operates a school in Arizona that is on a proving ground operated by the U.S. Army and encompasses at least 1,000 square miles.

79. Specifies that appropriated monies may be used only to demolish an existing or former school or construct a new replacement located on a proving ground operated by the U.S. Army.

80. Specifies the appropriated monies may be spent only if the U.S. Department of Defense provides at least 80 percent of the total project matching monies.

81. Exempts the FY 2020 $800,000 appropriation for demolishment or replacement of a school located on a proving ground from lapsing until the purpose is accomplished or abandoned, unless the appropriation stands until October 1, 2029.

82. Reverts all unexpended and unencumbered monies of the FY 2020 $800,000 appropriation to the state GF on October 1, 2029.

83. Appropriates $50,000 from the state GF in FY 2020 to ADE to distribute to any unified school district that is created by an election conducted in 2019 or 2020 to assist with the costs of implementing the new unified school district and exempts the appropriated amount from lapsing until July 1, 2022.

84. Appropriates $400,000 from the state GF in FY 2020, FY 2021 and FY 2022 to ADE to provide scholarships, grants or both to qualified applicants to complete high-quality teacher professional development at a qualifying postsecondary institution.

85. Requires ADE to use $100,000 of the $400,000 appropriation each fiscal year to provide scholarships, grants or both to qualified applicant in counties with a population fewer than 375,000.

86. Exempts the FY 2020, FY 2021 and FY 2022 appropriations for high-quality teacher professional development from lapsing.

87. Appropriates $765,000 from the state GF in FY 2020 to ADE to disburse to the schools selected to participate in the Arizona Community Schools Pilot Program and exempts the appropriation from lapsing.

Arizona Department of Environmental Quality (ADEQ)

88. Appropriates $1,269,300 from the Emissions Inspection Fund and $1,300,000 from the Air Quality Fund in FY 2020 to ADEQ for the Nogales Wash and International Outfall Interceptor Project.

Department of Forestry and Fire Management (DFFM)

89. Appropriates $750,000 from the state GF in FY 2020 to DFFM to distribute to the Mount Lemmon Fire District to construct a water line.

90. Exempts the FY 2020 appropriation for the Mount Lemmon Fire District water line from lapsing until December 31, 2021, and reverts all unexpended and unencumbered monies into the state GF.

91. Appropriates $2,000,000 in FY 2020 and an additional $1,000,000 in FY 2021 through FY 2029 from the state GF to DFFM to be deposited into the Nonnative Vegetation Species Eradication Fund to assist in preventing wildland fires and flooding.

Department of Health Services (DHS)

92. Appropriates $1,500,000 from the state GF in FY 2020 to DHS to distribute to hospitals to maintain essential emergency department and level IV trauma services, as follows:

a) $900,000 to a critical access hospital in the City of Benson; and

b) $600,000 to a critical access hospital in the City of Willcox.

93. Appropriates $700,000 from the state GF in FY 2020 to DHS to distribute to a
community-based primary care program in a geographically isolated area of Arizona.

94. Requires the community-based primary care program to meet certain criteria.

95. Defines geographically isolated area as a city or town with a population fewer than 15,000 located in a medically underserved area and a health professional shortage area.

96. Appropriates $1,000,000 from the state GF in FY 2020 to DHS for distribution to rural hospitals located in health professional shortage areas for the purchase of sonogram and telemedicine equipment for providing care to pregnant women.

97. Requires DHS to determine recipients of the appropriated rural hospital monies through a request for proposals process.

Arizona Department of Housing

98. Requires $3,500,000 of the FY 2020 appropriation for the Housing Trust Fund be expended on constructing or renovating facilities and housing assistance, including support services for persons with seriously mentally ill.

Arizona State Parks Board

99. Appropriates $225,000 in FY 2020 from the State Lake Improvement Fund to the Arizona State Parks Board to allocate to the Buckskin Fire District for marine fire suppression equipment.

Department of Public Safety (DPS)

100. Appropriates $4,000,000 from the state GF in FY 2020 to DPS to purchase highway patrol vehicles.

101. Appropriates $1,027,300 from the Arizona Highway Patrol Fund in FY 2020 to DPS for the Arizona Peace Officer Standards and Training Board to cover law enforcement training expenses.

Public Safety Personnel Retirement System (PSPRS)

102. Appropriates $1,000,000 from the state GF in FYs 2020-2026 to PSPRS for the employer account of the Prescott fire department group to offset increased pension liability.

Arizona Department of Revenue (ADOR)

103. Appropriates $2,000,000 in onetime funding in FY 2020 from the ADOR Administrative Fund to ADOR for administrative costs to collect transaction privilege tax (TPT) from out of state businesses.

Arizona Department of Transportation (ADOT)

104. Exempts the FY 2018 appropriation of $2,530,000 from the State Highway Fund to ADOT for Flagstaff building equipment from lapsing until July 1, 2020.

Universities

105. Appropriates $35,000,000 from the state GF in FY 2020 to the three public universities in the state for capital improvements or operating expenditures in the following amounts:

University	Amount
Arizona State University	18,900,000
Northern Arizona University	6,650,000
University of Arizona	9,450,000

106. Requires each university, by August 1, 2019, to report the intended use of the appropriated monies to the Joint Legislative Budget Committee (JLBC).

107. Requires, before monies are used for capital improvements, each university to submit the scope, purpose and estimated cost of the capital improvements to the Joint Committee on Capital Review (JCCR).

Temporary Groundwater and Irrigation Projects Fund

108. Appropriates $20,000,000 in FY 2020 from the state GF to the Temporary Groundwater and Irrigation Projects Fund to construct and rehabilitate wells and infrastructure related to groundwater projects in the Pinal Active Management Area and the Harquahala Irrigation
Non-expansion Area.

109. Requires the $20,000,000 FY 2020 appropriation to be fully reimbursed by December 31, 2021, as part of the closing process for FY 2020 and prohibits the appropriation from being used for additional programmatic expenditures.

Debt Service Payments

110. Appropriates $53,699,500 from the state GF in FY 2020 to the Arizona Department of Administration (ADOA) for the debt service payments on the sale and lease-back of state buildings authorized by Laws 2009, Third Special Session, Chapter 6.

111. Appropriates $24,009,800 from the state GF in FY 2020 to ADOA for the debt service payment on the sale and lease-back of state buildings authorized by Laws 2010, Sixth Special Session, Chapter 4.

112. Allocates $23,500,000 of the state GF revenue in FY 2020 to the Arizona Convention Center Development Fund.

113. Asserts that the Rio Nuevo Multipurpose Facility District is estimated to receive $14,000,000 from a portion of state transaction privilege tax revenues in FY 2020 and that the actual amount of distribution will be made as outlined in statute.

Career Technical Education Districts (CTEDs)

114. Appropriates $400,000 in FY 2020 from the state GF in FY 2020 to the Office of the Auditor General (OAG) for a specified study relating to CTEDs.

115. Requires the CTED study, by January 1, 2020, to:

a) be conducted in collaboration with the Arizona Commerce Authority and business, industry and higher education leaders to identify the industry certifications earned by CTED students in the most high-demand technical fields; and

b) evaluate the effectiveness of CTEDs in preparing students for high-demand technical fields.

116. Exempts the FY 2020 appropriation for the CTED study from lapsing.

FY 2021 and FY 2022 Appropriations

117. Appropriates $31,727,300 from the state GF in FY 2021 for a onetime deposit in the New School Facilities Fund and requires the School Facilities Board (SFB) to use the monies for school districts that received final approval from SFB by December 1, 2018.

118. Appropriates $5,000,000 from the state GF in FY 2021 and FY 2022 to the Arizona Department of Education (ADE) for incentive payments to career technical education programs for each high school graduate that earns a select industry certification and requires the Superintendent of Public Instruction to transfer $10,000 in FY 2021 and FY 2022 to the Office of Economic Opportunity to conduct an annual skill profile analysis.

119. Exempts the FY 2021 and FY 2022 appropriation for payments to career technical education programs from lapsing.

120. Appropriates $500,000 from the state GF in FY 2021 and FY 2022 to the Department of Health Services to provide student loan repayment options for health care professionals who provide prenatal care in a health professional shortage area in Arizona.

121. Appropriates $30,000,000 from the state GF in FY 2022 to ADE for Basic State Aid to eliminate the K-12 rollover for school districts with a student count fewer than 1,350.

Fund Transfers

122. Transfers, by June 30, 2020, $69,000,000 from the Prescription Drug Rebate Fund to the state GF for the purposes of providing adequate support and maintenance for state agencies.

123. Transfers the following amounts in FY 2020 to the relevant Automation Projects Fund (APF) subaccount from the following sources:

Project	Fund Source	Amount
Children's Information Library and Data Source System upgrade – DCS	state GF	10,100,000
Business one-stop shop web portal – ADOA	state GF	1,000,000
School Finance Data System replacement – ADE	Empowerment Scholarship Account	3,000,000
IT projects – Arizona Medical Board	Arizona Medical Board Fund	300,000
Concealed Weapons Tracking System	Concealed Weapons Permit Fund	410,000
Criminal Justice Information System upgrades	Arizona Highway Patrol Fund	2,301,000

124. Specifies that transfers into the APF are not appropriations out of the APF and asserts that only direct appropriations out of the APF are appropriations.

125. Requires the Attorney General, by June 30, 2020, to direct $20,000,000 from the Wells Fargo settlement to the state GF.

126. Transfers $7,324,100 in FY 2020 consisting of monies received in FY 2020 relating to Vehicle License Tax from the State Highway Fund to the state GF and allows transfer payments to be made in monthly installments.

Payment Deferrals

Arizona Department of Education (ADE)

127. Continues to defer $930,727,700 in Basic State Aid (BSA) and additional state aid (ASA) payments from ADE in FY 2020 to until after June 30, 2020, but no later than July 12, 2020, and excludes charter schools and school districts with a student count of less than 600 pupils from the deferral.

128. Requires ADE to make the deferral by reducing the apportionment of state aid for each month in the fiscal year by the same amount.

129. Requires ADE to disburse the FY 2021 appropriation of $930,727,700 to the counties for the school districts starting in July 1, 2020, and no later than July 12, 2020, in amounts equal to the reductions in the apportionment of BSA and ASA.

130. Requires school districts to include, in the revenue estimates that they use for computing their FY 2019 tax rates, the deferred appropriation monies that they will receive.

Statewide Operating Adjustments

General Fund (GF) and Other Fund (OF)

Area of Adjustment	GF	OF	Total
Employer Health Insurance Contribution Reduction	(9,967,600)	(10,000,000)	(19,967,600)
Employer Health Insurance Contribution Increase	10,544,400	6,000,000	20,544,400
Elected Officials Retirement	287,800	0	287,800
Agency Retirement	0	4,000,000	4,000,000
Agency Risk Management	2,341,700	623,400	2,965,100
Agency Rent	(549,700)	(70,000)	(619,700)
State Building Rent Increases	2,023,000	1,300,000	3,323,000
Shared Services	10,600	100,000	110,600
Correctional Officer Retirement	(3,710,100)	0	(3,710,100)
IT Pro Rata	1,067,700	900,000	1,967,700
Judiciary	54,000	0	54,000

131. Provides statewide adjustment procedures and instructions.

Employee Salary Increases

Agency/Department	GF	OF	Amount
Arizona Department of Agriculture	29,900	0	29,900
Attorney General (AG)	54,800	20,700	75,500
Department of Child Safety	5,459,000	963,400	6,422,400
Arizona Corporation Commission	0	18,500	18,500
Arizona Department of Corrections	35,479,300	0	35,479,300
Arizona Game & Fish	0	485,700	485,700
Department of Health Services	2,793,400	0	2,793,400
Department of Insurance	19,900	0	19,900
Arizona Department of Juvenile Corrections	3,241,300	0	3,241,300
Department of Liquor Licenses and Control	0	85,800	85,800
Arizona State Parks Board	0	75,300	75,300
Department of Public Safety	21,490,100	0	21,490,100
Arizona Department of Transportation	0	510,000	510,100

132. Outlines the Legislature's intent for the allocation of the FY 2020 salary increases by agency appropriation.

133. Outlines the FY 2020 individual agency charges totaling $1,798,500 for general agency counsel provided by the AG.

Miscellaneous

134. States that it is the Legislature's intent that all departments, agencies and budget units receiving appropriations are to continue to report actual, estimated and requested expenditures in a specified format.

135. Contains other reporting requirements.

136. Defines terms.

137. Makes technical and conforming changes.

138. Becomes effective on the general effective date.

Prepared by Senate Research

May 21, 2019

LMM/kja