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ARIZONA HOUSE OF REPRESENTATIVESFifty-fifth Legislature Second Regular Session |
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HB 2841: general appropriations act; 2022-2023
Sponsor: Representative Cobb (with permission of committee on Rules), LD 5
Committee on Appropriations
Overview
Appropriates monies for the operation of the state government in FY 2023.
History
The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations. Article IV, Section 20, Part 2, Constitution of Arizona, requires the General Appropriations Act (feed bill) to contain only appropriations for the different state departments, state institutions, public schools and interest on public debt. Statutory changes necessary to reconcile the appropriations made in the feed bill and other changes are drafted into separate budget bills. These bills are prepared according to subject area.
Provisions
The tables below indicate state General Fund (GF) and other fund (OF) changes for appropriated state agencies in FY 2023 along with major footnote changes, stated in terms of changes to the FY 2023 JLBC Baseline.
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Summary of Changes |
Fund |
Comments |
FY 2023 Changes to JLBC Baseline |
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Arizona Department of Administration (ADOA) (Sec. 4) |
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Workers' Compensation Claims |
OF |
From Risk Management Revolving Fund |
($2,918,600) |
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Administrative and Legal Expenses |
OF |
From Risk Management Revolving Fund |
($696,500) |
|
Information Security |
OF |
Transfer to Department of Homeland Security |
($6,366,700) |
1.
Removes the requirement that ADOA charge
no more than $10.42 per user per month for the statewide email and calendar
service.
2. Modifies the requirement that the Joint Legislative Budget Committee (JLBC) review ADOA's travel reduction pilot programs but continues to require a report to JLBC.
3. Appropriates a supplemental $1,110,600 from the Risk Management Revolving Fund to ADOA in FY 2022:
a) To pay disallowed costs relating to:
i. Excess retained earnings; and
ii. Statewide information technology charges;
b) For fund transfers in FY 2021; and
c) To pay interest owed from prior-year disallowed costs. (Sec. 98)
4. States the intent of the Legislature that ADOA may not pay for federal reimbursements related to excess balances in Special Employee Health Insurance Trust Fund without JLBC review. (Sec. 98)
5. Appropriates $7,150,650 from the GF to ADOA in FY 2023 for distribution to counties with a population under 900,000 for essential county services. (Sec. 100)
6. Appropriates $500,000 from the GF to ADOA in FY 2023 for distribution to Graham County to maintain essential county services. (Sec. 100)
7. Appropriates $3,000,000 from the GF to ADOA in FY 2023 for distribution to counties with a population under 300,000 for employer contributions to the Elected Official's Retirement Plan. (Sec. 100)
8. Appropriates $7,000,000 from the GF to ADOA in FY 2023 for distribution to counties to establish a coordinated reentry planning services program. (Sec. 100)
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School Facilities Division – ADOA (Sec. 5) |
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Building Renewal Grants |
GF |
Ongoing at $200 million |
$183,300,000 |
9. Appropriates a supplemental $93,117,000 from the GF to the School Facilities Division's Building Renewal Grant Fund in FY 2022. (Sec. 99)
10. Appropriates $31,753,900 from the GF to the School Facilities Division's New School Facilities Fund in FY 2024 for school districts that received final approval from ADOA by December 15, 2021. (Sec. 107)
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Arizona Health Care Cost Containment System (Sec. 9) |
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Formula Changes |
GF |
$69.8 million in FY 2024; $94.7 million in FY 2025 |
$65,361,500 |
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Formula Changes |
OF |
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$22,710,800 |
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Federal IT Regulation Compliance |
GF |
Ongoing at $75,000 |
$270,000 |
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Attorney General (Sec. 11) |
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State Liability Attorneys |
OF |
New full time equivalent positions (FTEs) to replace outside counsel |
17 FTEs $2,604,200 |
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State Board for Charter Schools (Sec. 14) |
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FY 2022 IT Upgrade |
GF |
Ongoing costs |
$249,800 |
Department of Child Safety (DCS)
11. Appropriates a supplemental $10,105,000 in expenditure authority to DCS in FY 2022 for additional federal funding. (Sec. 95)
12. Appropriates a supplemental $3,300,000 in expenditure authority to DCS in FY 2022 for adoption services caseload growth. (Sec. 96)
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Arizona Commerce Authority (Sec. 17) |
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Germany Trade Office |
GF |
Ongoing continuation of FY 2022 one-time appropriation |
$250,000 |
Department of Corrections (ADC) (Sec. 21)
13. Removes the requirement that ADC submit semi-annual reports on performance measures required by the Parson v. Ryan stipulation agreement.
14. Modifies the requirement that JLBC review ADC plans to alter the number of state-operated or private prison rated beds to only apply if the ADC plan involves 100 or more beds.
15. Requires ADC to submit actual, estimated and requested expenditures in the agency's FY 2024 budget request.
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Department of Economic Security (DES) (Sec. 27) |
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Formula Changes |
GF |
$25.2 million in FY 2024; $36.4 million in FY 2025 |
$15,930,000 |
16. Removes the requirement that DES submit a report to JLBC on Division of Developmental Disabilities (DDD) salary adjustments that had not been previously reviewed.
17. Eliminates the requirement that DES report on the number of filled DDD positions.
18. Appropriates a supplemental $139,824,000 in expenditure authority to DES in FY 2022 for additional federal funding. (Sec. 97)
19. Authorizes DES to use up to $25,000,000 from the Budget Stabilization Fund (BSF) to provide funding for reimbursement grants after notifying the Director of JLBC and the Director of the Governor's Office of Strategic Planning and Budgeting (OSPB). (Sec. 101)
20. Outlines reimbursement requirements for DES use of BSF monies and prohibits the use of BSF monies for additional programmatic expenditures. (Sec. 101)
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Arizona Department of Education (ADE) (Sec. 29) |
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Formula Adjustments |
GF |
($31.4) million in FY 2024; ($28.9) million in FY 2025 |
($3,768,000) |
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Endowment Earnings Growth |
OF |
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$9,679,100 |
21. Continues the deferral of $865,727,700 of Basic State Aid payments (K-12 rollover) from FY 2023 until FY 2024. (Sec. 104)
22. Appropriates $865,727,700 from the GF in FY 2024 to ADE for the K-12 rollover. (Sec. 104)
23. Continues to require school districts to include the monies they will receive from the K-12 rollover in FY 2025 in their revenue estimates used for computing tax rates in FY 2023. (Sec. 104)
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Department of Emergency and Military Affairs (Sec. 30) |
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Facilities Maintenance Federal Reimbursement |
GF |
Ongoing |
$759,200 |
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Readiness Center Maintenance Full Funding |
GF |
Ongoing, from 25% to 50% |
$1,668,900 |
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Department of Forestry and Fire Management (Sec. 36) |
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Wildfire Mitigation Vehicle Costs |
GF |
Ongoing at ($900,000) |
($1,222,600) |
Department of Gaming (Sec. 39)
24. Requires the Department of Gaming to report to JLBC and OSPB the expected amount and purposes of expenditures in FY 2023:
a) from the Additional Operating Expenses line item by October 1, 2022; and
b) from the Event Wagering Fund by August 1, 2022.
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Department of Homeland Security (Sec. 45) |
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Information Security |
OF |
Transfer from ADOA |
$6,366,700 |
Judiciary (Sec. 50)
25. Removes the requirement that JLBC review a report on county-approved salary adjustments to probation officers but continues the Administrative Office of the Courts reporting requirement.
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State Land Department (Sec. 52) |
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CAP User Fees |
GF |
Ongoing |
$192,500 |
26. Specifies that the State Land Department must revert savings between the provisional 2023 rate of $56 per acre-foot and the actual rate for 2023 back to the GF.
27. Requires the State Land Department to report the actual rate to JLBC and OSPB within five days after the CAP rate per acre-foot is set.
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Secretary of State (Sec. 81) |
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Access Voter Information Database |
OF |
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$291,000 |
28. States that monies in the access voter information database line item may only be used to develop and administer a statewide database of voter registration information and that monies may not be transferred in or out of the line item.
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Arizona Board of Regents (ABOR) (Sec. 88) |
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Agency Transfer |
OF |
Commission for Postsecondary Education shifted to non-appropriated status |
($1,537,100) |
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Department of Veterans' Services (Sec. 92) |
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Veterans' Homes Operating Costs |
OF |
Flagstaff and Yuma veterans' homes |
$5,761,600 |
Other Provisions
29. Appropriates $24,999,400 from the GF to the Arizona Convention Center Development Fund in FY 2023. (Sec. 102)
30. Distributes an estimated $16,000,000 of transaction privilege tax revenues to the Rio Nuevo multipurpose facilities district in FY 2023. (Sec. 103)
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Statewide Adjustments (Sec. 105) |
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Arizona Financial Information System (AFIS) |
GF |
Ongoing |
($159,100) |
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AFIS |
OF |
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($825,000) |
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Rent Adjustments |
GF |
Ongoing |
($654,800) |
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Rent Adjustments |
OF |
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($2,300,000) |
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Employer Health Insurance Contribution |
GF |
Ongoing |
$32,134,800 |
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Employer Health Insurance Contribution |
OF |
|
$10,500,000 |
31. Authorizes JLBC staff to determine and ADOA to allocate the following adjustments to each agency:
a) AFIS upgrades;
b) Agency rent adjustments;
c) Agency retirement adjustments; and
d) Employer health insurance contribution increases. (Sec. 105)
32. Requires JLBC staff to use the overall allocation of GF and appropriated tuition monies to determine each university's specific health insurance adjustment. (Sec. 105)
33. Establishes FY 2023 charges for agency counsel provided by the Department of Law. (Sec. 106)
34. Requires the Governor to report to the Legislature:
a) Any expenditure exceeding $10,000,000 from the Coronavirus State Fiscal Recovery Fund and Coronavirus Capital Projects Fund from the federal American Rescue Plan Act of 2021 (ARPA) prior to spending the monies; and
b) The actual expenditures from ARPA and the Affordable Connectivity Fund from the federal Infrastructure Investment and Jobs Act on a quarterly basis through June 30, 2025. (Sec. 108)
35. Requires the Superintendent of Public Instruction to report to the Legislature:
a) Any expenditure exceeding $10,000,000 from the Elementary and Secondary School Emergency Relief Fund from ARPA prior to spending the monies; and
b) The actual expenditures from ARPA on a quarterly basis through June 30, 2025. (Sec. 108)
36. Requires quarterly reports from ABOR and each community college district to the Legislature on the actual expenditures of the Higher Education Emergency Relief Fund form ARPA through June 30, 2025. (Sec. 108)
37. States the intent of the Legislature that the executive branch report on additional federal aid provided through federal legislation enacted by the end of FY 2023. (Sec. 108)
38. States the intent of the Legislature that budget units continue to report expenditures in a similar format that was used in prior years. (Sec. 109)
39. Requires all FTEs to be subject to appropriation and outlines reporting requirements for ADOA and each university to compare the FTE usage to the appropriated level of FTEs. (Sec. 110)
40. Requires each agency to submit a report to JLBC by October 1, 2022 on the number of filled appropriated and nonappropriated FTEs as of September 1, 2022. (Sec. 111)
41. Directs ADOA to provide a monthly report to JLBC on any transfers of spending authority during the prior month. (Sec. 112)
42. Forecasts GF revenue estimates for FY 2022, 2023, 2024 and 2025 and GF expenditure estimates for FY 2024 and 2025. (Sec. 113)
43. Requires the executive branch to provide JLBC a preliminary estimate of the FY 2022 ending GF balance by September 15, 2022. (Sec. 113)
44. Directs JLBC staff to report to JLBC by October 15, 2022 whether the FY 2023 revnues and ending balance are expected to change by more than $50,000,000 from the budgeted projections. (Sec. 113)
45. Defines *, expenditure authority and review by the Joint Legislative Budget Committee. (Sec. 114, 115, 116)
46.
47.
48. ---------- DOCUMENT FOOTER ---------
49. HB 2841
50. Initials AF Page 0 Appropriations
51.
52. ---------- DOCUMENT FOOTER ---------