 |
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
general appropriations act; 2024-2025.
Purpose
Makes session law changes relating to general appropriations necessary to implement the FY 2025 state budget.
Background
The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is often necessary to make statutory and session law changes to effectuate the budget. Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.
The Joint Legislative Budget Committee (JLBC) Baseline includes an estimate of spending necessary to meet requirements of statutory formulas and other obligations (JLBC).
S.B. 1735 contains the budget provisions for changes relating to general appropriations.
Provisions
FY 2025 Ongoing Fund and Major Footnote Changes
Ongoing General Fund (GF) and Other Fund (OF)
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Arizona State Hospital Complaints (Ombudsman Position) |
GF |
1 FTE |
150,000 |
|
Eliminate Southwest Defense Contracts |
GF |
|
(25,000) |
Major Footnote Changes
1. Requires the amount of monies appropriated for a school district health insurance actuarial study to be used to conduct an actuarial study of the cost and benefits for school district optional participation in the state health insurance program.
2. Requires ADOA, by December 31, 2024, to submit a report to the Governor, President of the Senate, Speaker of the House of Representatives and Director of JLBC on the findings of the school district health insurance actuarial study.
ADOA School Facilities Division (SFD)
Ongoing General Fund (GF) and Other Fund (OF)
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Building Renewal Grant Funding |
GF |
Onetime |
183,000,000 |
Major Footnote Changes
3. Allows the SFD to use the unencumbered balance of up to $24,613,700 in the New School Facilities Fund for facilities and land costs for school districts that received final approval from SFD by December 15, 2023.
4. Allows the SFD to use the unencumbered balance of up to $3,595,000 in the New School Facilities Fund for construction costs for the Pima Unified School District new high school construction project that received final approval from SFD on December 15, 2021.
Arizona Department of Agriculture (AZDA)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Reduce Salt River Horse Liaison from Full to Part-Time |
GF |
|
(25,000) |
|
Centralize IT Position |
GF |
|
(81,000) |
5. Exempts $1,199,600 from the AZDA's FY 2024 lump sum appropriation from lapsing until June 30, 2026.
Arizona Health Care Cost Containment System (AHCCCS)
Ongoing General Fund (GF) and Other Fund (OF)
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Formula |
GF |
FY 2026 FY 2027 |
6,300,000 15,700,000 |
|
Prescription Drug Rebate Fund Shift |
GF |
|
(24,700,000) |
|
Service Administrative Staff to Reduce Fraud |
GF |
101 FTEs |
3,300,000 |
|
Reduced Level of Invalid Payments from Additional Fee for Service |
GF |
|
(3,300,000) |
Major Footnote Changes
6. Specifies that the appropriated monies for the traditional Medicaid services include $4,098,200 from the state GF and $8,059,900 from expenditure authority for inpatient payments to rural hospitals.
7. Requires, of the appropriated monies for Proposition 204, $100,000,000 to be used from the Hospital Assessment Fund to cover a portion of the nonfederal share of the costs of services and specifies that this amount is included in the expenditure authority.
8. Allows AHCCS, if any graduate medical education monies remain after every eligible graduate medical education program in counties with a population of fewer than 500,000 persons, to fund the costs of graduate medical education programs operated by community health centers and rural health clinics.
Attorney General (AG)
Major Footnote Changes
9. Requires the appropriated monies for Veterans Substance Abuse Treatment grants to be used for grants to veteran services organizations that treat opioid use disorder in conjunction with judicial programs that address substance abuse treatment and rehabilitation for veterans.
10. Requires the AG, before spending any monies appropriated for Veteran Substance Abuse Treatments, to submit an expenditure plan to JLBC for review.
11. Specifies that the Veteran Substance Abuse Treatment monies include $5,000,000 from opioid claims-related monies deposited in the Consumer Remediation Subaccount of the Consumer Restitution and Remediation Revolving Fund.
12. Exempts the FY 2024 $12,000,000 appropriation from the Consumer Remediation Subaccount of the Consumer Restitution and Remediation Revolving Fund from lapsing until June 30, 2025.
Department of Child Safety (DCS)
Ongoing General Fund (GF) and Other Fund (OF)
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Operating Budget Increase |
GF |
FYs 2024 and 2025 |
13,300,000 |
|
Savings from 50 Vacant Positions |
GF |
|
(6,100,000) |
|
Backfill Social Security Payments No Longer Retained by the State |
GF |
FY 2024 FY 2025 |
3,000,000 5,000,000 |
|
Administrative Cost of New Social Security Payment Policy |
GF |
FY 2024 FY 2025 |
800,000 900,000 |
|
Shift to Preventive Services to Federal Funds |
GF |
|
5,500,000 |
|
Community Based Child Abuse Prevention |
GF |
|
300,000 |
|
Children and Family Supports Contract Increase |
GF |
FY 2024 FY 2025 |
6,200,000 5,500,000 |
|
Permanent Guardianship Caseload Increase |
GF |
FY 2024 FY 2025 |
3,100,000 4,300,000 |
|
Backfill Loss of Federal Congregate Care Funds |
GF |
FY 2024 |
14,700,000 |
|
In-Home Mitigation Utilization Adjustment |
GF |
FY 2024 |
6,300,000 |
|
Out-of-Home Support Services Utilization Adjustment |
GF |
FY 2024 |
(6,300,000) |
|
Kinship Care Surplus |
GF |
FY 2024 FY 2025 |
(8,600,000) (4,200,000) |
|
Foster Care Surplus |
GF |
FY 2024 FY 2025 |
(11,200,000) (11,400,000) |
|
Adoption Surplus |
GF |
FY 2024 FY 2025 |
(10,400,000) (5,700,000) |
|
Extended Foster Care Line-Item Surplus |
GF |
FY 2024 |
(6,700,000) |
|
Federal Expenditure Authority Savings |
GF |
FY 2024 |
(15,200,000) |
|
Healthy Families Expansion to Federal Funds |
GF |
|
(2,500,000) |
Major Footnote Changes
13. Specifies that the appropriated monies for caseworkers includes a onetime increase of $19,700,000 from the state GF in FY 2024 for increased operating expenditures and exempts the monies from lapsing until June 30, 2025.
14. Requires DCS, by September 1, 2024, to submit a report to JLBC and the Governor's Office of Strategic Planning and Budgeting (OSPB) on actual operating expenses for the guardian case management system in FY 2024 and proposed system operating expenses for FY 2025.
15. Specifies
that the appropriated monies for preventive services includes $264,400 from the
state GF to draw down $1,322,000 in additional federal monies associated with
the community
-based child abuse prevention block grant.
16. Stipulates, if child abuse prevention block grants are no longer available, that the appropriation is reduced by $264,400 from the state GF and $1,322,000 from expenditure authority.
Arizona Commerce Authority (ACA)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Economic Development Marketing Reduction |
GF |
|
(500,000) |
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Formula |
GF |
|
400,000 |
Arizona Department of Corrections, Rehabilitation and Reentry (ADCRR)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Inmate Health Care Vendor Contract |
GF |
FY 2024 FY 2025 |
9,200,000 107,100,000 |
|
Inmate Health Care Medication (substance use disorder) |
GF |
FY 2024 FY 2025 |
40,700,000 55,000,000 |
|
Inmate Health Care IT Upgrades |
GF |
FY 2024 FY 2025 |
4,800,000 16,000,000 |
|
Inmate Health Care Staff and Overtime Costs |
GF |
|
6,800,000 |
|
Inmate Health Care Other Injunction Costs |
GF |
|
2,700,000 |
|
Inmate Health Care Savings Offsets |
GF |
FY 2024 FY 2025 |
(39,800,000) (30,800,000) |
|
Inmate Health Care Savings Offsets (Mariana Prison) |
GF |
|
(9,700,000) |
|
Repurpose Community Treatment for Imprisoned Women Funding |
GF |
FY 2024 |
(2,000,000) |
|
Substance Abuse Treatment Reduction |
GF |
|
(1,500,000) |
|
Private Prison Capacity Savings |
GF |
FY 2024 FY 2025 |
(800,000) (14,500,000) |
Major Footnote Changes
17. Allows ADCRR to spend the $2,000,000 appropriated by the FY 2023 General Appropriations Act for the community treatment program for imprisoned women on community corrections expenditures in FY 2024.
18. Specifies that, included in ADCRR's lump sum appropriation, there is $75,000,000 from the Consumer Remediation Subaccount of the Consumer Restitution and Remediation Revolving Fund which is intended to offset past and current costs for care, treatment, programs and other expenditures for individuals with opioid use disorder and any substance use disorder or mental health conditions or for any specified purposes in the court order settlement relating to opioid litigation.
19. Requires the appropriated monies for injunction-related IT upgrades to be used to address information technology improvements as required by the court in the Jensen V Thornell inmate health care litigation and exempts the monies from lapsing until June 30, 2025.
20. Requires ADCRR to use the monies appropriated for noncontract medication to purchase medications to treat Hepatitis C and substance use disorder.
21. Requires ADCRR, before using any monies for noncontract medication, to submit an expenditure plan for JLBC review.
22. Exempts the monies for noncontract medication from lapsing until June 30, 2025.
23. Requires ADCRR, before spending private prison per diem monies on anything other than private prison costs, to submit an expenditure plan for JLBC review.
Board of Dental Examiners
Major Footnote Changes
24. Exempts the $9,300 FY 2025 appropriation for annual leave payout from lapsing.
Department of Economic Security (DES)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Formula Revertment |
GF |
|
24,800,000 |
|
Reduce Incremental AZEIP Rate Increase |
GF |
|
(2,400,000) |
|
Homeless Youth Assistance General Fund Backfill Delay |
GF |
|
(1,000,000) |
Major Footnote Changes
25. Exempts $800,000 of the FY 2024 appropriation for Graham County Rehabilitation Center from lapsing until June 30, 2025.
26. Requires, of the $830,000 for Graham County Rehabilitation Center, $800,000 to be used to remodel the Graham County Rehabilitation facilities in Safford and Willcox.
27. Exempts the FY 2024 appropriation for the Group Home Monitoring Program from lapsing until June 30, 2026.
28. Prohibits
DES from transferring any excess appropriation from the Division of
Developmental Disabilities premium tax payment, case management Medicaid, home
and community-based services Medicaid, institutional services, Medicaid,
physical and behavioral health
services Medicaid, Medicare clawback payments or targeted case management to
anything outside of the developmental disabilities in FY 2024.
Arizona Department of Education (ADE)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Eliminate FY 2024 Ex-Appropriation |
GF |
|
43,900,000 |
|
Formula TNT Savings |
GF |
|
(9,200,000) |
|
Limit ESA Enrollment to 1.0 ADM |
GF |
|
(2,500,000) |
|
Move Third Year of Incremental Low-Income Weight Increases to Onetime |
GF |
|
(37,000,000) |
|
Move Third Year of Incremental Additional Assistance Increases to Onetime |
GF |
|
(29,000,000) |
|
Kindergarten Entry Assessment |
GF |
|
(1,500,000) |
|
Move Continuing Highschool Workforce/Training Program Base Funding to Onetime |
GF |
|
(4,600,000) |
|
Move Continuing Highschool Workforce/Training Program Increase to Onetime |
GF |
|
(1,500,000) |
|
Fund Community College Adult Education Workforce Development Program to Onetime |
GF |
|
(6,000,000) |
|
Adult Workforce Diploma Program |
GF |
|
(6,000,000) |
|
Adult Education Administration |
GF |
|
(150,000) |
|
Reduce College Credit by Examination Incentive Program |
GF |
|
(3,700,000) |
Major Footnote Changes
29. Requires ADE to allocate $5,858,000 for onetime charter additional assistance (CAA) supplement in FY 2025.
30. Requires ADE to distribute the onetime allocation for CAA supplement to charter schools on a proportional basis based on the CAA funding that each charter school in Arizona receives in FY 2025.
31. Requires ADE to allocate $23,142,000 for onetime district additional assistance (DAA) supplement in FY 2025.
32. Requires ADE to distribute the appropriated amount for onetime DAA supplement to school districts on a proportional basis based on the DAA funding that each district in Arizona receives in FY 2025.
33. Allows a school district to budget the monies it receives from the onetime DAA supplement in either the school district's maintenance and operation fund or unrestricted capital outlay fund.
34. Requires ADE to allocate $37,000,000 for onetime Free and Reduced-Price Lunch (FRPL) group B weight supplement in FY 2025.
35. Requires ADE to distribute the appropriated amount for onetime FRPL group B weight supplement to school districts and charter schools on a pro rata basis using the weighted student count for FRPL students for the school district or charter school.
36. Allows a school district to budget the monies it receives from the onetime FRPL group B weight supplement in either the school district's maintenance and operation fund or unrestricted capital outlay fund.
37. Allows the FY 2023 appropriation for the East Valley Institute of Technology for transitional housing to be used for former foster care youth as well as current foster care youth and increases the eligible age from 21 years old to 23 years old.
38. Requires ADE to distribute the monies appropriated for the Arizona Holocaust Education Center for the creation and operation of the center as a resource for fulfilling statutory requirements by August 15, 2024.
39. Exempts the appropriation for the Arizona Holocaust Education Center from lapsing.
40. Specifies that the monies appropriated for adult education include a onetime $6,160,000 allocation for continuing high school and workforce training program, $3,000,000 for onetime deposit adult workforce diploma program and $3,000,000 for onetime deposit in the community college adult education.
41. Requires ADE to allocate the appropriated amount for onetime school meal grants to school districts and charter schools that participate in the National School Lunch Programs or School Breakfast Program established under the National School Lunch and Child Nutrition Acts for grants to reduce or eliminate copayments that would otherwise be charged to children eligible for reduced-price meals.
42. Stipulates that, if the appropriated amount for school meal grants is insufficient to cover the grant awards for all eligible grantees, ADE must reduce each grant proportionately to cover all eligible grantees.
Department of Emergency and Military Affairs (DEMA)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Risk Management Error Adjustment |
GF |
|
(600,000) |
|
National Guard Matching Fund Reduction |
GF |
|
(600,000) |
Major Footnote Changes
43. Specifies that monies in the assist local law enforcement fentanyl interdiction line item are from the Consumer Remediation Subaccount of the Consumer Restitution and Remediation Revolving Fund and consist of monies related to opioid claims-related litigation or settlements.
Arizona Department of Environmental Quality (ADEQ)
Major Footnote Changes
44. Allows ADEQ to use up to $400,000 from the Emissions Inspection Fund.
45. Requires ADEQ, before expending any Emissions Inspection Fund monies on operating costs, to report on the intended use of the monies to JLBC.
Arizona Exposition and State Fair Board (State Fair Board)
Major Footnote Changes
46. Removes the footnote specifying that $2,000,000 of the State Fair Board's operating budget is for enhanced state fair operations.
Department of Forestry and Fire Management (DFFM)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Reduce Wildfire Mitigation Funding due to unused ADCRR Inmate Labor |
GF |
|
(5,000,000) |
Major Footnote Changes
47. Exempts the $27,026,700 for wildfire mitigation from lapsing until June 30, 2027.
48. Exempts the monies appropriated for hazardous vegetation removal from lapsing until June 30, 2026.
Arizona Department of Gaming (ADG)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2024 Changes |
|
Eliminate Racing Purse Enhancement Funding |
GF |
|
(5,000,000) |
|
Shift HISA Costs to Racing Regulation Fund |
GF |
|
(355,000) |
Major Footnote Changes
49. Requires the monies appropriated for the Horseracing Integrity and Safety Act assessment to be used by ADG during FY 2025 to pay the 2024 assessment.
Governor
Major Footnote Changes
50. Exempts the FY 2024 appropriation for the Missing Murdered Indigenous People Task Force from lapsing.
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
AZ Care Check |
GF |
$500k ongoing/ |
1,400,000 |
Major Footnote Changes
51. Exempts the $1,000,000 FY 2023 appropriation for the behavioral health care provider loan repayment program from lapsing until June 30, 2025.
52. Exempts the FY 2023 appropriation for the accelerated nursing programs from lapsing until June 30, 2025.
53. Exempts the FY 2024 appropriation for nurse-family partnership programs from lapsing until June 30, 2027.
54. Exempts the $1,000,000 FY 2025 appropriation for combating fentanyl from lapsing until June 30, 2026.
55. Specifies that monies in the fentanyl overdose medication distribution are from the Consumer Remediation Subaccount of the Consumer Restitution and Remediation Revolving Fund and consist of deposited monies from opioid claims-related litigation or settlements.
56. Exempts the $1,202,400 FY 2025 appropriation to support additional licensing compliance staff from lapsing until June 30, 2026.
Arizona Department of Homeland Security (AZDOHS)
Major Footnote Changes
57. Allows AZDOHS to use up to $500,000 of statewide cybersecurity grant monies for grant administration.
Judiciary
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Supreme Court Probation IT System |
GF |
|
2,100,000 |
Arizona State Land Department (ASLD)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Eliminate Streambed Navigability Litigation |
GF |
|
(220,000) |
|
Operating Budget shift to Off-Highway Vehicle Fund |
GF |
|
(200,000) |
Mine Inspector
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Aggregate Mining Land Reclamation |
GF |
|
(69,000) |
Board of Nursing
Major Footnote Changes
58. Exempts the $450,000 FY 2024 appropriation for the Student Registered Nurse Anesthetist Clinical Rotation Program from lapsing June 30, 2025.
Department of Public Safety (DPS)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Major Incident Division |
GF |
|
(8,500,000) |
|
Increase State Highway Fund Usage to Cap |
GF |
|
(3,600,000) |
|
Increase Local Border Support |
GF |
|
1,000,000 |
|
GIITEM Permanent Vacancy Savings |
GF |
|
(700,000) |
|
GIITEM Aid to Other Permanent Vacancy Savings |
GF |
|
(200,000) |
|
Pharmaceutical Diversion and Drug Theft Task Force Excess Funding |
GF |
|
(100,000) |
|
Civil Air Patrol Maintenance and Operations Efficiencies |
GF |
|
(6,000) |
Arizona State Parks Board
Major Footnote Changes
59. Specifies that an amount equal to the revenue share agreement with the U.S. Forest Service for Fool Hollow Lake recreation area and Catalina State Park is appropriated to the Arizona State Parks Board from the State Parks Revenue Fund.
Arizona State Board of Pharmacy
Major Footnote Changes
60. Exempts $64,600 of the FY 2025 lump sum appropriation for annual leave payout from lapsing.
61. Exempts $190,500 of the FY 2023 lump sum appropriation for e-licensing system upgrades from lapsing until June 30, 2025.
Arizona Department of Real Estate (ADRE)
Major Footnote Changes
62. Specifies that, of ADRE's FY 2025 lump sum appropriation, $400,000 is for information technology improvements.
Secretary of State (SOS)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Talking Book Library |
GF |
|
(62,000) |
Major Footnote Changes
63. Exempts the $5,352,200 appropriation for county allocation of Help America Vote Act election security grant monies from lapsing until June 30, 2025.
64. Requires the SOS, by January 31, 2025, to submit a report to JLBC and OSPB on the actual expenditures for election services.
65. Allows the SOS to make expenditures or incur indebtedness to employ outside or private attorneys if:
a) the SOS is named as a defendant.
b) the SOS believes a conflict exists that prevents the AG from representing the SOS; and
c) the SOS either remains a nominal party or is defending the constitutionality of a law or referendum enacted by the Legislature.
66. Allows the SOS to use up to $250,000 of election services monies for direct costs related to the 2024 primary and general elections.
Arizona Office of Tourism
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Reduction in Arizona Promotion |
GF |
|
(200,000) |
Arizona Department of Transportation (ADOT)
Major Footnote Changes
67. Specifies that ADOT's operating lump sum includes a $3,000,000 reduction from the State Highway Fund in FY 2025 from ADOT's Enforcement and Compliance Division.
State Treasurer
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Reduction in Justice of the Peace Salaries |
GF |
|
(500,000) |
Board of Technical Registration
Major Footnote Changes
68. Exempts $167,700 from the FY 2023 lump sum appropriation for e-licensing system upgrades from lapsing until June 30, 2025.
Universities
Major Footnote Changes
69. Declares the Legislature's intent that the School of Civic and Economic Thought and Leadership at Arizona State University, the Economic Policy Institute at Northern Arizona University and for the Center for the Philosophy of Freedom at the University of Arizona maintain the same funding level as FY 2023, except the universities may allocate the lump sum reduction of up to 3.45 percent prescribed by the FY 2025 General Appropriations Act.
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Arizona Water Protection Fund Deposit Reduction |
GF |
|
(500,000) |
Major Footnote Changes
70. Exempts the $5,000,000 FY 2024 appropriation for statewide water resources planning from lapsing.
FY 2024 Supplemental Appropriations and Adjustments
General Fund (GF) and Other Fund (OF)
|
Agency |
Fund |
Amount |
|
ADOA Pay Disallowed Costs Risk Management Revolving Fund |
OF |
9,493,000 |
|
AHCCCS Formula Adjustments Children's Health Insurance Program Fund |
OF |
7,527,500 |
|
AHCCCS Formula Adjustments |
GF |
(39,944,900) |
|
OSPB Retirement Cost Technical Adjustment |
GF |
204,600 |
|
JLBC Retirement Cost Technical Adjustment |
GF |
204,600 |
|
Superior Court Superior Court Judge's Compensation Criminal Justice Enhancement Fund |
OF |
813,700 |
|
Arizona State Land Department Central Arizona Project User Fees |
GF |
(206,700) |
|
Board of Respiratory Pay Outstanding Costs Board of Respiratory Care Examiners Fund |
OF |
15,100 |
|
SOS Conducting Logic and Accuracy Testing for the 2024 Primary Election |
GF |
100,000 |
|
ADWR Develop, Modernize and Consolidate Applications ADWR's Subaccount in the Automation Projects Fund (APF) to ADOA |
OF |
2,500,000 |
|
ADOA Replace Human Resources Information System - Personnel Division Fund to HRIS Subaccount in APF |
OF |
3,100,000 |
FY 2024 Reductions
71. Reduces the FY 2024 lump sum appropriations from the state GF in the following amounts to the following agencies:
|
Agency |
Amount |
|
ADOA Employee Compensation Study |
(2,200,000) |
|
Arizona Department of Agriculture Expanded Information Technology Support |
(300,000) |
|
Arizona Commerce Authority Rural Broadband Accelerated Match Fund |
(23,600,000) |
|
ADE Art Consumables |
(2,500,000) |
|
ADE Dual Enrollment Student Development Fund |
(15,000,000) |
|
ADE Dual Enrollment Student Development Fund |
(500,000) |
|
ADE Broadband Expansion Fund |
(2,500,000) |
|
Arizona Office of Tourism Culinary Tourism Workforce Development |
(250,000) |
Independent Redistricting Commission (IRC)
72. Reverts all monies from the FY 2022 appropriation that remain unexpended and unencumbered on June 30, 2024, to the state GF.
Rodeo
73. Exempts the $15,000,000 FY 2024 appropriation for improvements to the Yavapai County Fairgrounds from lapsing.
74. Stipulates that, if a court of competent jurisdiction rules that the monies may not be distributed to a nonprofit volunteer organization that operates a rodeo at the Yavapai County Fairgrounds and the judgement is final and definitive, the AG must notify in writing to the Director of Arizona Legislative Council and the monies revert to the state GF.
75. Repeals the FY 2024 Brackish Groundwater Pilot Program administered by ADWR and reestablishes the program under WIFA.
FY 2024 Exemptions from Lapsing
76. Exempts the following amounts appropriated from the state GF in FY 2024 to the following agencies from lapsing:
|
Agency |
Amount |
|
ADOA Fire Incident Management |
12,200,000 |
|
Office of Economic Opportunity Microbusiness Loan |
5,000,000 |
|
ADE Arizona Civics Education and Leadership Development Program |
300,000 |
|
ADE Early Education and Career Exploration Program |
5,000,000 |
|
DHS Collaborative Care Uptake Fund |
1,000,000 |
|
AZDOHS Antihuman Trafficking Grant Fund |
10,000,000 |
|
AZDOHS Nonprofit Security Grant Program |
5,000,000 |
|
Arizona Department of Housing Homeless Shelter and Services Fund |
40,000,000 |
|
DPS Fentanyl Prosecution, Diversion and Testing Fund |
3,000,000 |
|
Arizona Board of Regents Spouses and Dependents of Law Enforcement Officers Tuition Scholarship Fund |
2,000,000 |
Additional FY 2025 Appropriations and Adjustments
Arizona Department of Administration (ADOA)
77. Appropriates $7,150,650 from the state GF in FY 2024 to ADOA for equal distribution to counties with a population of fewer than 900,000 persons according to the 2020 U.S. Decennial Census (2020 Census) to maintain essential county services.
78. Appropriates $500,000 from the state GF in FY 2024 to ADOA for distribution to Graham County to maintain essential county services.
79. Appropriates $3,000,000 from the state GF in FY 2024 to ADOA for equal distribution to counties with a population of fewer than 300,000 persons according to the 2020 Census to supplement the normal cost of the Elected Officials Retirement Plan (EORP) and to amortize unfunded accrued liability.
80. Allows the counties to use the distributed FY 2024 $3,000,000 appropriation only for employer contributions to EORP.
81. Appropriates the following amounts in FY 2025 from the APF subaccounts to ADOA for the following automation and information technology projects:
|
Project |
Subaccount |
Amount |
|
Medicaid Enterprise System Mainframe |
Medicaid Enterprise System Modernization Subaccount |
3,396,000 |
|
Human Resources Information System Replacement |
HRIS Subaccount |
5,521,200 |
|
HRIS Replacement |
Automation Projects Fund |
1,320,000 |
|
Integrated Tax System Modernization Project |
ADOR Subaccount |
19,456,800 |
82. Requires ADOA to submit a quarterly report to JLBC on implementing projects approved by the Information Technology Authorization Committee that includes the project expenditures, deliverables, timeline for completion and current status.
83. Exempts the FY 2025 appropriations from the APF from lapsing until June 30, 2026.
84. Extends the lapsing date for the following projects:
a) $2,114,300 from the ADOA Subaccount for a Business One-Stop Web Portal until June 30, 2025;
b) $2,000,000 from the APF for Arizona Department of Agriculture Cloud Migration until June 30, 2026; and
c) $2,500,000 from the Judiciary-Supreme Court Subaccount for statewide community supervision electronic monitoring system until June 30, 2027.
Department of Economic Security (DES)
85. Allows DES, beginning April 1, 2024, to use up to $25,000,000 from the Budget Stabilization Fund (BSF) to provide funding for reimbursement grants.
86. Requires DES, before using the BSF monies, to notify the Director of JLBC and the Director of OSPB.
87. Requires the BSF appropriation to be fully reimbursed by September 1, 2024, and to be reimbursed in full as part of the closing process for FY 2024.
88. Prohibits the BSF appropriation from being used for additional programmatic expenditures.
FY 2025 Lump Sum Reductions
89. Reduces the following state GF amounts from the lump sum appropriations for the following budget units in FY 2025:
|
Agency |
Amount |
|
ADOA |
(300,000) |
|
ADOA - SFD |
(57,100) |
|
Office of Administrative Hearings |
(34,200) |
|
Arizona Department of Agriculture |
(671,500) |
|
AHCCCS |
(1,242,000) |
|
AG |
(839,000) |
|
Arizona State Board for Charter Schools |
(97,800) |
|
Arizona Corporation Commission (ACC) |
(27,600) |
|
Arizona State Schools for the Deaf and the Blind |
(897,000) |
|
Office of Economic Opportunity |
(21,000) |
|
DES |
(3,026,200) |
|
State Board of Education |
(111,200) |
|
ADE |
(469,700) |
|
State Board of Equalization |
(30,000) |
|
DFFM |
(248,600) |
|
Governor's Office |
(368,100) |
|
OSPB |
(101,400) |
|
DHS |
(719,200) |
|
Arizona Historical Society |
(83,500) |
|
Prescott Historical Society |
(35,000) |
|
Department of Insurance and Financial Institutions |
(222,500) |
|
Judiciary Arizona Supreme Court |
(386,300) |
|
Judiciary Arizona Court of Appeals |
(508,200) |
|
Judiciary Arizona Superior Court |
(180,100) |
|
Arizona Department of Juvenile Corrections (ADJC) |
(1,098,100) |
|
Arizona State Land Department |
(148,000) |
|
House of Representatives |
(664,100) |
|
JLBC |
(107,800) |
|
Arizona Legislative Council |
(328,100) |
|
Ombudsman-Citizens Aide Office |
(53,900) |
|
Senate |
(587,300) |
|
Arizona State Lottery Commission |
(279,800) |
|
Navigable Streams Commission |
(6,000) |
|
ADRE |
(110,400) |
|
ADOR |
(1,748,200) |
|
SOS |
(463,600) |
|
State Board of Tax Appeals |
(13,000) |
|
Arizona Office of Tourism |
(75,800) |
|
Governor's Office of Tribal Relations |
(2,400) |
|
ABOR |
(109,200) |
|
ASU |
(10,995,800) |
|
NAU |
(4,070,200) |
|
UArizona - Main |
(6,562,200) |
|
UArizona Health Sciences |
(1,469,300) |
|
Arizona Department of Veteran Services |
(108,200) |
|
ADWR |
(21,500) |
Debt Service Payments
90. Allocates $25,998,700 of state GF revenue in FY 2025 to the Arizona Convention Center Development Fund.
91. Asserts that the Rio Nuevo Multipurpose Facility District is estimated to receive $17,000,000 from a portion of state transaction privilege tax revenues in FY 2025 and that the actual amount of distribution will be made as outlined in statute.
Fund Transfers
92. Transfers the following amounts, by June 30, 2024, from the following fund sources to the state GF for the purposes of providing adequate support and maintenance for state agencies:
|
Fund |
Comments |
Amount |
|
ADOA Certificate of Participation Fund |
2,600,000 |
|
|
ADOA State Employee Travel Reduction Fund |
|
900,000 |
|
ADOA State Web Portal Fund |
|
4,000,000 |
|
ADOA Capitol Mall Consolidation Fund |
|
700,000 |
|
ADOA Fire Incident Management Fund |
|
6,100,000 |
|
ADOA Construction Insurance Fund |
|
8,100,000 |
|
ADOA Cyber Risk Insurance Fund |
|
11,200,000 |
|
ADOA Risk Management Fund |
|
70,000,000 |
|
ADOA/SFD Credit Enhancement Fund |
|
3,000,000 |
|
AHCCCS Prescription Drug Rebate Fund |
|
40,000,000 |
|
Athletic Training Athletic Training Fund |
|
250,000 |
|
AG Anti-Racketeering - Operations |
|
2,600,000 |
|
AG Anti-Racketeering Pass Through |
|
10,000,000 |
|
AG Collection Enforcement Revolving Fund Operating |
|
200,000 |
|
Barbering and Cosmetology Board Barbering and Cosmetology Fund |
|
12,100,000 |
|
Behavioral Health Examiners Behavioral Health Examiner Board Fund |
|
4,200,000 |
|
Chiropractic Examiners Chiropractic Examiners Board Fund |
|
500,000 |
|
ACA Arizona Competes Fund |
|
55,700,000 |
|
ACC Utility Regulation Revolving Fund |
|
2,100,000 |
|
ACC Securities Regulation / Enforcement Fund |
|
25,000,000 |
|
ADCRR Correction Fund |
|
8,000,000 |
|
ADCRR Alcohol Abuse Treatment Fund |
|
2,000,000 |
|
ADCRR Transition Program Fund |
|
4,200,000 |
|
ADCRR Community Corrections Enhancement Fund |
|
100,000 |
|
ADCRR Arizona Correctional Industries Revolving Fund |
|
11,491,800 |
|
Arizona Criminal Justice Commission Criminal Justice Enhancement Fund |
|
800,000 |
|
Arizona Criminal Justice Commission Fingerprint Clearance Card Fund |
|
700,000 |
|
Arizona State Board of Dental Examiners Dental Board Fund |
|
2,000,000 |
|
Office of Economic Opportunity Office of Economic Opportunity Operations Fund |
|
1,000,000 |
|
DES Family Caregiver Grant Program Fund Transfer |
|
700,000 |
|
DES Special Administration Fund |
|
4,000,000 |
|
DES Economic Security Capital Investments Fund |
|
500,000 |
|
ADEQ Air Quality Fee Fund |
|
2,300,000 |
|
ADEQ Underground Storage Tank Fund |
|
20,000,000 |
|
ADEQ Vehicle Emissions Inspection Fund |
|
5,000,000 |
|
ADEQ Hazardous Waste Management Fund |
|
900,000 |
|
ADEQ Emergency Response Fund |
|
500,000 |
|
ADE Adult Workforce Diploma Program Fund |
|
3,000,000 |
|
ADE Community College Adult Ed Workforce Development Program Fund |
|
8,900,000 |
|
State Fair Board Arizona Exposition and State Fair Fund |
|
5,000,000 |
|
Board of Fingerprinting Board of Fingerprinting Fund |
|
1,200,000 |
|
Arizona Department of Game and Fish Watercraft Licensing Fund |
|
800,000 |
|
DHS Disease Control Research Fund |
|
1,300,000 |
|
DHS Prescription Drug Rebate Fund |
|
1,000,000 |
|
DHS Health Services Lottery Fund |
|
3,700,000 |
|
Industrial Commission of Arizona Administration Fund |
|
2,400,000 |
|
Industrial Commission of Arizona Special Fund |
|
900,000 |
|
DIFI Financial Services Fund |
|
18,400,000 |
|
DIFI Insurance Examiners Revolving Fund |
|
500,000 |
|
DIFI Automobile Theft Authority Fund |
|
8,800,000 |
|
DIFI Captive Insurance Regulatory and Supervision Fund |
|
300,000 |
|
DIFI Financial Surveillance Fund |
|
400,000 |
|
DIFI Receivership Revolving Fund |
|
800,000 |
|
ADJC CJEF Distribution Fund |
|
900,000 |
|
ADJC Indirect Cost Recovery Fund |
|
200,000 |
|
ASLD Risk Management Fund |
|
300,000 |
|
State Land Department IGA and ISA Fund |
|
24,000 |
|
ASLD Trust Land Management Fund |
|
34,000,000 |
|
Department of Liquor Licenses and Control Liquor Licenses Fund |
|
400,000 |
|
Department of Liquor Licenses and Control K Fund Enforcement Surcharges Fund |
|
200,000 |
|
Massage Therapy Board Massage Therapy Board Fund |
|
600,000 |
|
Medical Board Examiners Medical Examiners Board Fund |
|
9,300,000 |
|
Mine Inspector Aggregate Mining Reclamation Fund |
|
39,000 |
|
Naturopathic Physicians Board Naturopathic Board Fund |
|
1,700,000 |
|
Board of Nursing Nursing Board Fund |
|
9,400,000 |
|
Occupational Therapy Board Occupational Therapy Fund |
|
900,000 |
|
Board of Optometry Board of Optometry Fund |
|
400,000 |
|
Board of Osteopathic Examiners Osteopathic Examiners Board Fund |
|
2,800,000 |
|
Arizona State Parks Board State Parks Revenue Fund |
state GF Share |
38,200,000 |
|
Pharmacy Board Pharmacy Board Fund |
|
6,300,000 |
|
Physical Therapy Board Physical Therapy Fund |
|
700,000 |
|
Psychologist Examiners Psychologist Examiners Board Fund |
|
1,800,000 |
|
DPS Fingerprint Clearance Card Fund |
|
3,900,000 |
|
DPS DPS Licensing Fund |
|
100,000 |
|
DPS GIITEM Fund |
|
1,000,000 |
|
DPS Records Processing Fund |
|
200,000 |
|
DPS Public Safety Equipment Fund |
|
500,000 |
|
Residential Utility Consumer Office Residential Utility Consumer Office Revolving Fund |
|
400,000 |
|
Board of Technical Registration Technical Registration Board Fund |
|
5,600,000 |
|
ADOT Economic Strength Project Fund |
|
600,000 |
|
ADOT Highway Damage Recovery Fund |
|
1,000,000 |
|
ADOT State Aviation Fund |
|
15,000,000 |
|
ADOT State Highway Fund Interest Transfers |
FY 2024 FY 2025 FY 2026 FY 2027 |
26,000,000 18,700,000 15,000,000 10,000,000 |
|
ADOT Abandoned Vehicles Administration Fund |
|
400,000 |
|
ADOT Shared Location and Advertisement Agreement Expense Fund |
|
100,000 |
|
ADOT Motor Vehicle Dealer Enforcement Fund |
|
300,000 |
|
ADOT Highway Expansion and Extension Loan Program Fund |
|
4,000 |
|
ADOT State Highway Fund Vehicle License Tax Transfer |
|
3,000,000 |
|
ADOT Arizona Highways Magazine Fund |
|
500,000 |
|
State Treasurer State Treasurer's Operating Fund |
|
900,000 |
|
Veterinary Medical Examiners Board Veterinary Medical Examiners Board Fund |
|
1,700,000 |
|
WIFA Water Supply Development Revolving Fund |
|
51,600,000 |
|
WIFA Water Supply Development Revolving Fund Interest |
|
8,100,000 |
|
WIFA Long Term Water Augmentation Fund |
|
78,000,000 |
|
WIFA Long Term Water Augmentation Fund Interest |
|
19,300,000 |
|
ADWR Temporary Groundwater and Irrigation Efficiency Projects Fund |
|
600,000 |
|
ADWR Assured and Adequate Water Supply Fund |
|
200,000 |
|
ADWR Water Protection Fund |
|
1,000,000 |
Payment Deferrals
93. Continues to defer $800,727,700 in Basic State Aid (BSA) and additional state aid (ASA) payments from ADE in FY 2025 until after June 30, 2025, but no later than July 12, 2025, and excludes charter schools and school districts with a student count less than 4,000 pupils from the deferral.
94. Requires ADE to make the deferral by reducing the apportionment of state aid for each month in the fiscal year by the same amount.
95. Requires ADE to disburse the FY 2026 appropriations of $800,727,700 to the counties for the school districts starting July 1, 2025, and no later than July 12, 2025, in amounts equal to the reductions in the apportionment of BSA and ASA.
96. Requires school districts to include, in the revenue estimates used for computing FY 2025 tax rates, the deferred appropriation monies that the districts will receive.
Statewide Operating Adjustments
General Fund (GF) and Other Fund (OF)
|
Area of Adjustment |
GF |
OF |
Total |
|
Employer Health Insurance Contribution Reduction |
(72,766,200) |
(21,596,800) |
(94,363,000) |
|
Employer Health Insurance Contribution Increase |
140,000,000 |
60,000,000 |
200,000,000 |
|
State Fleet Rate Reduction |
(8,195,100) |
(5,453,800) |
(13,648,900) |
|
State Fleet Rate Increase |
3,299,000 |
1,625,000 |
4,924,000 |
|
Human Resources Information System Charge Reduction |
(8,009,300) |
(4,644,700) |
(12,654,000) |
|
Arizona Financial Information System Adjustment |
(834,000) |
(839,700) |
(1,673,700) |
|
Agency Retirement Adjustment |
7,180,000 |
500,000 |
7,680,000 |
|
Agency Rent Adjustment |
0 |
160,000 |
160,000 |
97. Prescribes statewide adjustment procedures and instructions.
98. Outlines the FY 2025 individual agency charges totaling $1,798,500 for general agency counsel provided by the Attorney General.
FY 2026 Appropriations
99. Appropriates $45,077,100 from the state GF in FY 2026 for a onetime deposit in the New School Facilities Fund.
100. Requires the SFD to use monies only for facilities that will be constructed for school districts that received final approval from SFD by December 15, 2023.
Miscellaneous
101. Declares the Legislature's intent that all departments, agencies, and budget units receiving appropriations continue to report actual, estimated and requested expenditures in a specified format.
102. Contains other reporting requirements.
103. Defines terms.
104. Becomes effective on the signature of the Governor.
Prepared by Senate Research
June 13, 2024
LMM/cs