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ARIZONA HOUSE OF REPRESENTATIVESFifty-seventh Legislature First Regular Session |
House: APPROP DP 11-7-0-0 | 3rd Read 31-2-29-2
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HB 2947: general appropriations act; 2025-2026
Sponsor: Representative Livingston (with permission of Committee on Rules), LD 28
Vetoed by the Governor
Appropriates monies for the operation of the state government in FY 2026.
History
The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations. Article IV, Section 20, Part 2 of the 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 prepared according to subject area.
Provisions
The tables below indicate state ongoing General Fund (GF) and other fund (OF) changes for appropriated state agencies in FY 2026 stated in terms of changes to the FY 2026 JLBC Baseline.
Major footnotes are stated in terms of changes to the FY 2025 General Appropriations Act.
|
Summary of Changes |
Fund |
Comments |
FY 2026 Changes to JLBC Baseline |
|
Acupuncture Board of Examiners (ABE) (Sec. 5) |
1. Allows ABE to use up to $42,818 of its FY 2026 appropriation to pay for the cost of services provided by the Arizona Department of Administration (ADOA) Central Services Bureau in prior years.
|
ADOA (Sec. 6) |
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|
Fire Incident Management Grants |
GF |
Onetime, non-lapsing |
$2,291,600 |
|
Healthcare Interoperability Grants |
GF |
Onetime, lapses FY 2029 |
$1,000,000 |
|
Law Enforcement Records Management |
GF |
Onetime |
$3,237,000 |
|
State Personnel IT System Software Transition |
OF |
Onetime |
$1,911,800 |
|
IT System |
OF |
New state personnel IT system, ongoing costs |
$1,802,600 |
|
Annual Financial Report/Single Audit |
OF |
|
$550,000 |
|
IT Oversight |
OF |
Add 1 FTE |
$103,500 |
|
Business One-Stop |
OF |
Ongoing support |
$2,114,300 |
2. Requires ADOA to submit a report to the Joint Legislative Budget Committee (JLBC) and Governor's Office of Strategic Planning and Budgeting (OSPB) by March 31, 2026 regarding the amount that the Maricopa County Special Health Care District has agreed to send to ADOA for deposit into the state GF in FY 2026, including the reason for any change in amount from the prior FY.
3. Directs ADOA to distribute the amount appropriated for Fire Incident Management System Grants in FY 2026 as follows:
a) $239,400 to Sun City Fire District;
b) $333,200 to Queen Creek Fire Department;
c) $1,402,900 to Mesa Fire Department; and
d) $316,100 to Tempe Fire Department.
4. Requires Fire Incident Management System Grants to be used towards providing grants for hardware and software that:
a) enable the statewide deployment of a secure incident management platform to fire and law enforcement agencies;
b) provide a standardized incident command and management platform based on Federal Emergency Management Agency standards that enable diverse incident management and support entities to work together; and
c) provide a collaboration and communications solution.
5. Distributes monies from the Law Enforcement Records Management System line item to local police departments for a records management system real-time data sharing program.
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ADOA – School Facilities Division (SFD) (Sec. 7) |
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|
Building Renewal Grant Funding |
GF |
Onetime |
$183,300,000 |
|
New School Construction Projects |
GF |
|
$(375,700) |
|
FTEs |
GF |
Add 5 new FTEs |
$957,000 |
|
Agriculture and Water Innovation Fund |
OF |
Deposit |
$1,000,000 |
6. Requires ADA to fill the five FTE positions with:
a) three livestock inspectors;
b) one veterinary assistant; and
c) one veterinary technician.
|
Arizona Healthcare Cost Containment System (AHCCCS) (Sec. 10) |
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|
Formula Adjustments |
GF |
May Capitation Rate |
$20,000,000 |
|
Enhanced Federal Medical Assistance Percentage (FMAP) Savings |
GF |
|
$(6,000,000) |
|
Prescription Drug Rebate Fund (PDRF) |
GF |
Ongoing shift |
$(125,000,000) FY 2026 $(100,000,000) FY 2027 $(100,000,000) FY 2028 |
|
Income Verification |
GF |
Eligibility Income Verification Data Charge, Backfill Loss of Federal Funding |
$2,220,000 |
|
Reforms |
GF |
Savings from AHCCCS reforms in the Health Budget Bill. |
$(50,000,000) FY 2026 $(85,000,000) FY 2027 $(85,000,000) FY 2028 |
|
Administrative Costs |
GF |
Contracted administrative costs for reforms |
$11,500,000 |
|
Hospital Assessment |
GF |
Ongoing Hospital Assessment Savings |
$(100,000,000) |
|
Critical Access Hospitals |
GF |
Supplemental pool |
$4,300,000 |
|
Graduate Medical Education |
GF |
Onetime, non-lapsing |
$5,000,000 |
|
Speech Therapy & Cochlear Implant Coverage |
GF |
|
$274,200 |
|
Court Ordered Stabilization |
GF |
Court-ordered stabilization process/treatment for impaired persons in Pima County, non-lapsing |
$2,000,000 |
|
Procurement Costs |
GF |
Acute care health plans |
$100,000 |
|
Legal Costs |
OF |
Contracted onetime legal costs for sober living homes |
$1,375,000 |
7. Specifies that the $200,000 appropriation for the Procurement Funding line item is for the administrative costs associated with extending the existing acute care contracts with all managed care organizations through September 30, 2028.
8. Requires $200,000 of AHCCCS's FY 2026 operating lump sum to be used to update the elderly and adults with physical disabilities preadmission screening instrument and staff training manuals.
9. States that the legislature intends that AHCCCS will discontinue the use of monies from the Hospital Assessment Fund to cover the nonfederal share of the costs of services beginning in FY 2029 and will discontinue its use of the monies before FY 2029 to the extent allowed by an increase in revenues above the budgeted amount specified in law.
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Internet Crimes Against Children Task Force |
OF |
Add 2 FTEs |
$335,000 |
10. Declares that monies appropriated to the AG in the government accountability and special litigation line item may only be used for purposes allowed by state law relating to antitrust violations.
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Board of Behavioral Health Examiners (Sec. 14) |
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E-Licensing |
OF |
Onetime, transition consultant |
$20,400 |
|
Office Space Reorganization |
OF |
Onetime, 7 FTEs |
$187,900 |
|
Department of Child Safety (DCS) (Sec. 16) |
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Operating Budget Increase |
GF |
|
$6,949,000 |
|
Caseworkers |
GF |
|
$12,300,000 FY 2025 $4,600,000 FY 2026 |
|
Office of Child Welfare Investigations |
GF |
|
$600,000 FY 2025 $600,000 FY 2026 |
|
Congregate Care |
GF |
|
$10,300,000 FY 2025 $23,210,500 FY 2026 |
|
Adoption Services |
GF |
|
$1,500,000 FY 2025 $(2,900,000) FY 2026 |
|
Permanent Guardianship |
GF |
|
$(3,500,000) |
|
Kinship Care |
GF |
|
$(12,100,000) FY 2025 $(11,500,000) FY 2026 |
|
Foster Care Home Placement |
GF |
|
$(600,000) FY 2025 $(2,000,000) FY 2026 |
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Extended Foster Care |
GF |
|
$3,900,000 |
|
Group Home Monitoring Training |
GF |
Onetime, non-lapsing |
$100,000 |
|
Extended Foster Care |
GF |
Service model |
$6,400,000 |
|
Guardian Supplemental |
GF |
FY 2025 |
$6,900,000 |
|
Permanent Guardianship |
GF |
Subsidy, onetime FY 2025 |
$(14,600,000) |
|
In-Home-Mitigation |
GF |
FY 2025 Supplemental |
$(4,300,000) |
|
Operating Lump Sum |
OF |
|
$(5,000,000) |
|
Caseworkers |
OF |
|
$(4,600,000) |
|
Adoption Services |
OF |
|
$(1,500,000) |
|
Permanent Guardianship |
OF |
|
$5,000,000 |
|
Kinship Care |
OF |
|
$6,100,000 |
|
Out-Of-Home Support |
OF |
|
$(6,000,000) |
|
In-Home Mitigation |
OF |
|
$6,000,000 |
11. Directs DCS to develop and maintain a webpage for a group home training program that each employee of each group home contracted with DCS must annually complete.
12. Requires the webpage to include at least one free training program and educational materials and resources related to preventing child sex trafficking and internet crimes against children.
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Wearable Technology |
GF |
Onetime, research |
$500,000 |
13. Requires the ACA to distribute the monies appropriated for wearable technology research to applied research centers located in Arizona that specialize in wearable technology in increments of up to $250,000 after the research center notifies the ACA that the research center has received a matching amount from sources other than this state.
14. Contains reporting requirements relating to the monies for wearable technology research.
|
Arizona Community Colleges (Sec. 19) |
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Out of County Reimbursement Adjustment |
GF |
|
$494,900 |
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Corporation Commission (Sec. 21) |
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|
Salary Adjustments |
OF |
|
$950,000 |
|
Employee Training & Equipment |
OF |
|
$400,000 |
|
Utilities Audit & Studies |
OF |
|
$620,000 |
|
Rate Case Reviews |
OF |
Add 1 FTE |
$200,000 |
|
Arizona Department of Corrections (ADC) (Sec. 22) |
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|
Contract Shortfall |
GF |
|
$9,488,500 |
|
Software Contract Increase |
OF |
|
$3,233,200 |
|
System Improvements |
OF |
Correctional information system improvements |
$2,000,000 |
|
New Cloud and Data Warehouse Systems |
OF |
|
$510,700 |
|
Kitchen Equipment Replacement |
OF |
Onetime |
$1,535,300 |
15. Specifies that the private prison per diem line item includes an increase of $4,100,000 for a 5% salary increase for private prison correctional officers.
16. Exempts the $650,000 FY 2024 appropriation for inmate dog training from lapsing.
17. Allows ADC to utilize up to $9,500,000 of the monies appropriated in FY 2025 for non-contract medication to pay for obligations incurred in FY 2024 for ADC's operating expenses.
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Arizona State Schools for the Deaf and the Blind (ASDB) (Sec. 24) |
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Early Childhood Listening and Spoken Language Therapies |
GF |
|
$100,000 |
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Remove Preschool Disability Cost |
OF |
Remove disability costs added in FY 2025 |
$(168,000) |
18. Specifies the monies appropriated for supplemental early childhood therapies line item in FY 2026 must be spent to contract with multiple providers as specified.
19. Requires contractors to ensure that the provided therapies are administered or overseen by a certified educator or therapist in a natural environment, a clinical setting, an educational setting or virtually.
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Department of Economic Security (DES) (Sec. 28) |
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|
Formula Adjustments |
GF |
|
$193,800,000 |
|
Formula Adjustments |
GF |
Wavier implementation of changes |
$(33,800,000) |
|
Enhanced FMAP Savings |
GF |
|
$(8,400,000) |
|
Adult Protective Services (APS) |
GF |
Caseload increase, 78 FTEs |
$3,700,000 |
|
Eligibility Income Verification Data Charge |
GF |
|
$990,000 |
|
Community Based Services |
GF |
Community based services for high-cost developmental disability (DD) clients |
$14,800,000 |
|
Older Individuals Who are Blind Program |
GF |
|
$1,000,000 |
|
DD Payment Reconciliation |
GF |
Backfill actuarial loss |
$32,300,000 |
|
Produce Incentive Program |
GF |
|
$2,000,000 |
|
Education Workforce Initiative |
GF |
|
$500,000 |
|
Child Development Center |
GF |
City of Taylor |
$1,500,000 |
|
Child Care |
OF |
To maintain services |
$78,653,000 |
20. Requires DES to biannually submit a report regarding balances, revenues and expenditures in the current year and budget year for all federal child care monies.
21. Submits any transfers in and out of the following special line items to JLBC review:
a) Adult Protective Services; and
b) Cost Effectiveness Study.
22. Directs DES to submit a report on utilization of covered DD services by disability classification by December 31, 2025.
23. Specifies the report must include the total expenditures for each covered service by primary diagnosis in FY 2025.
24. Requires DES to submit a report regarding the employment classification of parents participating in the Parents as Paid Caregivers (PPCG) program by December 31, 2025.
25. Specifies that the report must include the number of parent caregivers that are classified as W-2 employees versus 1099 contractors.
26. Declares that the $32.3 million appropriation for the DD reconciliation payment line item is for an operating costs shortfall in the contract year ending on September 30, 2024.
27. Lowers the $32.3 million appropriation if the Auditor General's financial audit indicates the shortfall is less than $32.3 million.
28. Requires DES to distribute monies in the child development center line item to the Snowflake-Taylor Child Care Development Facility.
29. Directs DES to distribute monies in the education workforce innovation initiative line item to qualifying programs led by Arizona-based organizations with supporting partnerships from a public university and local education agency.
30. Outlines qualification requirements for the grantees and requires DES to make a request for proposal public by September 1, 2025, and distribute funds by October 15, 2025.
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Arizona Department of Education (ADE) (Sec. 30) |
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|
Truth in Taxation (TNT) Savings |
GF |
|
$(3,528,200) |
|
School Meals |
GF |
Make elimination of school meals co-pay ongoing |
$3,800,000 |
|
Continuing High School and Workforce Training |
GF |
Onetime |
$1,000,000 |
|
Community College Adult Education |
GF |
Onetime |
$1,000,000 |
|
Adult Workforce Diploma Funding |
GF |
Onetime |
$1,000,000 |
|
9th Grade On-Track Program |
GF |
|
$1,000,000 |
|
ESA Purchase Review |
GF |
Staff & contracted staff, 12 FTEs |
$2,000,000 |
|
AEDs for Public High School Athletic Events |
GF |
Non-lapsing until FY 2028 |
$500,000 |
|
Rural School Nurse Access Grant Fund |
GF |
Non-lapsing |
$2,500,000 |
|
Assessment Contract Increase |
OF |
|
$5,000,000 |
|
Teacher Retention Study |
OF |
|
$100,000 |
31. Requires ADE to allocate the amount appropriated for a State Aid Supplement on a pro rata basis to district and charters using a school's weighted student count and to increase each school's budget limit accordingly.
32. Directs ADE to spend at least $500,000 of the appropriation for the Rural Arizona School Nurse Access Program for school nurse salary increases in rural school districts and charter schools.
33. Allows ADE to spend remaining Rural Arizona School Nurse Access Program monies on grants to rural schools to hire additional school nurses.
34. Requires ADE to distribute the FY 2026 appropriation for automated external defibrillator grants to public high schools that sponsor an athletic team or sports program for the purchase or maintenance of automated external defibrillators.
35. Directs ADE to prioritize schools with free and reduced-price lunch eligibility of 50% or more for automated external defibrillator grants.
36. Stipulates that the appropriation for School Meals Grants must be distributed to districts and charters participating in the National School Lunch Program or School Breakfast Program for grants to reduce or eliminate copayments that would otherwise be charged to students eligible for reduced-price lunches.
37. Directs ADE to reduce the School Meals Grants proportionately if the appropriation is insufficient to cover all eligible districts and charters.
38. Allows ADE to spend a $2,000,000 operating budget increase on 12 FTE positions to review purchases for enrollees in the Empowerment Scholarship Account (ESA) program. Also authorizes ADE to allocate the monies to additional contracted staff or services related to the administration of the ESA program.
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Department of Emergency and Military Affairs (DEMA) (Sec. 31) |
39. Extends the lapsing date for the $20,000,000 FY 2023 appropriation from the Border Security Fund to Cochise County for the construction of a new county jail facility from June 30, 2027 to June 30, 2029.
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Arizona Department of Environmental Quality (ADEQ) (Sec. 32) |
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|
Solid Waste Adjustments |
OF |
|
$484,200 |
|
Hazardous Waste Program Increase |
OF |
Fee increases |
$717,500 |
|
Clean Air State Plan/Diesel State Match/Air Emission Data |
OF |
Onetime |
$1,170,100 |
|
Aquifer Facility Permits |
OF |
2 FTEs for processing |
$776,600 |
|
Water Quality Feed Fund Deposit |
OF |
|
$9,000,000 |
|
Iron King Mine/Humboldt Smelter Cleanup |
OF |
|
$2,000,000 |
40. Stipulates that ADEQ's operating lump sum appropriation includes $776,600 from the Water Quality Fee Fund to add 2 FTE positions to process an increase in permit applications resulting from revised aquifer water quality standards.
41. Allows ADEQ to only spend the $776,600 as matching amounts of aquifer protection permit program fees collected and deposited in the Water Quality Fee Fund at the end of the FY.
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Arizona Department of Forestry and Fire Management (DFFM) (Sec. 37) |
43. Makes the $11,200,000 FY 2025 supplemental appropriation for fire expenses repayment non-lapsing.
44. Makes the $27,100,000 FY 2026 appropriation for the wildfire mitigation line item non-lapsing through FY 2028.
45. Places restrictions on the use of monies from the $30,000,000 FY 2025 appropriation to DFFM for wildfire suppression and requires DFFM to seek prior JCCR review of all capital spending from the appropriation.
46. Requires DFFM to report monthly on expenditures and reimbursements from the $30,000,000 FY 2025 appropriation and makes the appropriation non-lapsing.
47. Makes the $65,000,000 FY 2023 appropriation for the wildfire emergency response line item non-lapsing through FY 2028.
|
Livestock Loss Board |
GF |
|
$100,000 |
|
Wildlife Habitat Enhancement Costs |
OF |
|
$2,300,000 |
|
Wildlife & Big Game Surveys and Relocation of Wildlife |
OF |
|
$600,000 |
|
Federally Listed Endangered/In Need Species Surveys |
OF |
|
$300,000 |
|
Wildlife Area Operations and Property Management |
OF |
|
$1,200,000 |
|
Hatcheries and Dams |
OF |
Operations and maintenance |
$600,000 |
|
Annual Outdoor Expo |
OF |
|
$200,000 |
|
5% Salary Increases |
OF |
|
$1,174,300 |
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Department of Health Services (DHS) (Sec. 42) |
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|
Health Facilities Licensing Costs |
GF |
Shift Health Facilities Licensing Costs from state GF, 31 FTEs |
$(1,635,400) |
|
State Hospital |
GF |
Operating shortfall |
$1,807,900 |
|
State Hospital Sexually Violent Persons Program |
GF |
|
$1,520,300 |
|
Dementia Awareness Campaign |
GF |
Non-lapsing through FY 2027 |
$750,000 |
|
Ibogaine Clinical Research Grants |
GF |
Non-lapsing |
$5,000,000 |
|
Newborn Screening Panel |
OF |
|
$2,769,600 |
|
Health Facilities Licensing Costs |
OF |
Shift Health Facilities Licensing Costs from state GF |
$1,635,400 |
|
Health Facilities Licensing Customer Support/Community Outreach |
OF |
|
$4,530,500 |
|
State Hospital |
OF |
Technology improvements |
$946,600 |
|
Health Care Directives Registry |
OF |
|
$2,000,000 |
48. Requires DHS to submit a report by December 31, 2025 and June 30, 2026 providing information related to health care directives registry operations.
49. Instructs DHS how to award $5.0 million for ibogaine clinical research grants in FY 2026.
|
Prescott Historical Society (Sec. 44) |
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|
Territorial Governor Mansion Remodeling |
GF |
Non-lapsing |
$500,000 |
|
Industrial Commission of Arizona (Sec. 48) |
|||
|
Staff Fraud Unit |
OF |
10 FTEs |
$747,800 |
|
Judiciary – Supreme Court (Sec. 50) |
|||
|
Child and Family Representation Program |
GF |
1 FTE |
$200,000 |
|
Commission on Judicial Conduct |
GF |
1 FTE for a complaint investigator |
$145,000 |
|
Investigate Complaints Against Fiduciaries |
OF |
1 FTE |
$349,900 |
|
Judiciary – Superior Court (Sec. 50) |
|||
|
New Mohave County Judge |
GF |
|
$191,800 |
|
State Land Department (Sec. 52) |
|||
|
Trust Land Management |
OF |
9 FTEs |
$2,000,000 |
|
Legislature – Legislative Council (Sec. 53) |
|||
|
Priority-Based Budget Software |
GF |
|
$1,000,000 |
|
Museum and Security Staff |
GF |
Add 7 FTEs |
No cost |
50. Requires $1.0 million from the Legislative Council operating lump sum appropriation to be used for priority-based budgeting software to analyze state government budget resources and includes budget development and reporting capabilities.
|
Legislature – Auditor General (Sec. 53) |
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|
County Treasurer Financial Compliance Reviews |
GF |
15 FTEs |
$1,200,000 |
51. Declares that $1.2 million of the operating budget is for procedural reviews of county treasurer offices.
|
Natural Resource and Conservation Board (Sec. 59) |
|||
|
Groundwater Recharge Facilities |
OF |
Non-lapsing |
$250,000 |
52. States that the $250,000 appropriated in FY 2026 for groundwater recharge facilities must be used to clean and restore artificial groundwater recharge facilities that are in a groundwater basin that has been designated as a subsequent active management area and provide flood control benefits.
|
State Board of Nursing (Sec. 62) |
|||
|
Certified Registered Nurse Anesthetist Preceptor Grant |
GF |
|
$500,000 |
53. Adds 1 FTE to the State Board of Nursing.
|
Board of Osteopathic Examiners in Medicine and Surgery (Sec. 67) |
|||
|
Salary Increases |
OF |
Salary parity increases with comparable 85/15 boards |
$23,000 |
|
Rate Increase |
OF |
Outside medical expert rate increases |
$68,000 |
|
Arizona State Parks Board (ASPB) (Sec. 68) |
|||
|
State Lake Improvement Fund |
GF |
Deposit |
$500,000 |
|
Expand Family Campout Program |
OF |
2 FTEs |
$448,200 |
|
Operating Costs |
OF |
Pay operating costs of ARPA-funded water-related capital projects |
$541,000 |
|
Operating Costs |
OF |
Pay operating costs of ARPA-funded broadband installation projects |
$242,100 |
54. Requires ASPB to notify JLBC and OSPB of revised expenditure plans if ASPB receives any Land and Water Conservation Fund grant funding for capital projects included in the FY 2026 budget.
55. Exempts the $500,000 FY 2025 appropriation for a veterans memorial park feasibility study from lapsing.
56. Exempts the $10,000,000 FY 2024 appropriation for the veterans memorial park from lapsing.
|
Complete Investigations in 180 Days |
OF |
1 FTE |
$207,200 |
|
Board of Physical Therapy (Sec. 71) |
|||
|
Licensing Workload |
OF |
0.5 FTE |
$23,200 |
|
Board of Podiatry Examiners (BPE) (Sec. 72) |
57. Allows BPE to use up to $9,200 of its FY 2026 appropriation to pay for the cost of services provided by ADOA's Central Services Bureau in prior years.
|
State Board for Private Postsecondary Education (Sec. 74) |
|||
|
Record Digitization Ongoing Project |
OF |
1st of 5-year project |
$100,000 |
|
State Board of Psychologist Examiners (Sec. 75) |
|||
|
Behavior Analyst Investigator |
OF |
1 FTE |
$150,000 |
|
Parity Salary Adjustment for Agency Leadership |
OF |
Parity Salary Adjustment for Agency Leadership |
$35,600 |
|
Increased Operating Expenses |
OF |
|
$25,000 |
|
Department of Public Safety (Sec. 76) |
|||
|
Replacement Vehicles |
GF |
Non-lapsing through FY 2027 |
$8,667,500 |
|
Civil Air Patrol |
GF |
Maintenance and Operations |
$100,000 |
|
Aircraft Maintenance Costs |
OF |
Onetime |
$693,000 |
|
Uniform Allowance |
OF |
Raise Sworn Officers Uniform Allowance to $1,900 |
$1,171,400 |
|
Communication network |
OF |
Convert North Loop Comm Network to Digital |
$1490,000 |
58. Requires the Civil Air Patrol to use $2,500 of its annual appropriation on dues to the National Association for Search and Rescue.
59. Directs DPS to report to the Governor, Speaker of the House of Representatives, President of the Senate, JLBC and OSPB by October 1, 2025 with a list of DPS district offices, including descriptions for each office and a 10-year plan on the maintenance and replacement needs of the offices.
|
Residential Utility Consumer Office (Sec. 78) |
|||
|
Workload |
OF |
Workload Due to New ACC Formula Rate Policy, 2 FTEs |
$330,700 |
|
Secretary of State (SOS) (Sec. 82) |
|||
|
Arizona America250 Commission |
GF |
5 FTEs |
$500,000 |
|
Address Confidentiality Program Fund |
GF |
Non-lapsing |
$400,000 |
|
Non-HAVA Grant Monies |
OF |
Expenditure authority |
$5,500,000 |
60. Extends the lapsing date for the $5,400,000 FY 2020 Help America Vote Act (HAVA) appropriation for counties until June 30, 2026.
61. Requires the SOS to report to JLBC and OSPB by November 1, 2025 the actual expenditures for the preceding FY on the Arizona Voter Information Database.
62. Specifies the monies appropriated for the Arizona America250 Commission are for the SOS to support the Arizona America250 Commission.
63. Instructs the SOS to submit an expenditure plan for approval by JLBC prior to expenditure of the monies for the Arizona America250 Commission.
64. Requires JLBC review before the SOS may transfer any monies out of the Arizona American 250 Commission appropriation.
65. State that monies in the address confidentiality program deposit line item may only be used for a deposit to the Address Confidentiality Program Fund.
66. Specifies that non-HAVA Grant Funds includes all federal grants, excluding any monies received from federal HAVA grants received by the SOS directly from the federal government or any federal grant monies distributed or allocated to the SOS by the Governor’s Office or another state agency.
67. Requires the SOS, before spending any non-HAVA grant funds in FY 2026 over $5.5 million, to submit an expenditure plan for review by JLBC.
68. Directs the SOS to provide a quarterly report within 10 days after the end of each calendar quarter reporting the receipt of federal grant monies by grant and reporting all quarterly expenditures of non-HAVA federal grant funds.
69. Prohibits the SOS from placing restrictions or conditions on federal monies allocated to counties.
70. Prohibits public or private monies in control of the SOS from being used:
a) to register voters or coordinate with non-governmental organizations that register voters;
b) to hire independent contractors;
c) for litigation or the retention of outside counsel;
d) to distribute to any non-governmental organization or for the benefit of such an organization;
e) for communications with the general public which contain the Secretary of State's name regardless of the form of the communication; or
f) in a manner in any way related to misinformation or disinformation.
71. Prohibits any monies appropriated to the SOS to support the Arizona America250 Commission from being used in a manner any way related to voter registration or information technology.
72. Requires the SOS to submit an expenditure plan for approval by the Joint Legislative Budget Committee before spending any monies appropriated to the SOS to support the Arizona America250 Commission.
73. Requires the SOS to submit an expenditure plan for approval by the Joint Legislative Budget Committee before spending any federal monies.
|
State Board of Technical Registration (Sec. 84) |
|||
|
Investigator |
OF |
Investigator to Reduce Case Resolution Time to under 180 Days, 1 FTE |
$91,000 |
|
Arizona Department of Transportation (ADOT) (Sec. 86) |
|||
|
MVD Security Systems |
OF |
One-time MVD security systems |
$789,100 |
|
ADOT Fleet |
OF |
Fuel Inflation Adjustment ($3.20 per Gallon) |
$523,600 |
|
Construction Management |
OF |
One-time Construction Management System Replacement |
$6,272,000 |
|
South Mountain Highway |
OF |
Maintenance |
$106,900 |
|
I-17 Flex Lane |
OF |
One-time I-17 Flex Lane Highway Maintenance |
$813,600 |
|
Maintenance Management System |
OF |
Maintenance Management System Replacement Phase 1 |
$3,222,500 |
|
Software Contract Increases |
OF |
|
$1,713,500 |
|
Building Management |
OF |
System Upgrade |
$316,000 |
|
Highway Maintenance Backlog |
OF |
|
$15,793,300 |
|
Highway Maintenance |
OF |
38 New Lane Miles |
$797,400 |
|
State Fleet Adjustments |
OF |
|
$3,575,7000 |
|
State vehicle Replacement |
OF |
One-time |
$5,286,000 |
|
Add DCS to State Fleet |
OF |
8 FTEs |
$5,979,400 |
|
License Plate Production |
OF |
4% Increase |
$308,600 |
|
Driver's License/ID Card Production |
OF |
|
$38,600 |
74. Specifies that ADOT's operating lump sum includes a $2,000,000 reduction from the State Highway Fund in FY 2026 from ADOT's Enforcement and Compliance Division.
|
Universities – Arizona State University (ASU) (Sec. 90) |
|||
|
Center for American Institutions |
GF |
|
$400,000 |
75. State the operating lump sum increase includes $400,000 for the Center for American Institutions.
76. Allows the Center for American Institutions to have the sole authority to:
a) approve or deny all faculty positions hired by the center;
b) offer any public programming, class, or establish a course of study, including but not limited to a major, minor, certificate, or graduate program into the permanent academic catalog, without consent, permission, approval, or endorsement from any other academic unit, school or department; and
c) offer and independently designate classes that fulfill the academic requirements of ASU's honors college, including offering analogous introductory classes or designating classes with other analogous content to fulfill those requirements.
|
Universities – University of Arizona (UA) (Sec. 92) |
|||
|
Yuma Center for Excellence for Desert Agriculture |
GF |
|
$2,750,000 |
77. Adds 2 FTE positions to the University of Arizona for the Arizona Geological Survey.
|
Universities – University of Arizona Health Sciences Center (Sec. 92) |
|||
|
Medical Mission Scholarships |
GF |
|
$50,000 |
|
AZ REACH |
GF |
|
$250,000 |
78. Requires UA to use monies in the AZ REACH line item to provide medical care transfer services for hospitals with less than 20 beds.
|
Department of Veterans Services (DVS) (Sec. 93) |
|||
|
Pinal County Veterans Center Funding |
GF |
|
$125,000 |
79. Specifies that the $125,000 appropriation for the Pinal County Veterans Center Funding line item is for a nonprofit organization located in Pinal County that provides services to veterans in Pinal County with an in-person facility and a mobile outreach center and that has previously received a grant from DVS.
|
Arizona State Veterinary Medical Examining Board (Sec. 94) |
|||
|
Medical Investigator |
OF |
Medical Investigator to Address Additional Complaints, 1 FTE |
$109,700 |
|
Department of Water Resources (ADWR) (Sec. 95) |
|||
|
Colorado River Legal Defense |
OF |
Non-lapsing |
$1,000,000 |
80. Specifies that the FY 2026 $1,000,000 appropriation for the Colorado River legal expenses line item is for the initiating, defending or participating in litigation against any upper basin state, any party domiciled in an upper basin state or the United States related to Arizona's apportionment of Colorado River water or any other rights of Arizona regarding federal law that affects Arizona's apportionment of Colorado River water or the right to divert water controlled by the United States or to exercise Arizona's entitlement to upper basin water.
81. Prohibits the $1,000,000 in the Colorado River legal expenses line item from being transferred out of the line item without JLBC review.
FY 2025 Supplemental Appropriations and Adjustments (Sec. 96-107)
|
Agency |
Fund |
Amount |
|
ADOA –Federal Financial Repayment |
GF |
$15,000,000 |
|
AHCCCS - Formula Costs |
GF |
$(76,351,600) |
|
AHCCCS - Federal Match Savings |
GF |
$(29,700,000) |
|
AHCCCS – Eligibility Verification Costs |
GF |
$1,832,000 |
|
DCS - Congregate Care |
GF |
$10,300,000 |
|
DCS - Caseworkers Additional Operating Resources |
GF |
$12,300,000 |
|
DCS - Caseworkers Guardian |
GF |
$6,900,000 |
|
DCS - Child Welfare Investigations Realignment |
GF |
$600,000 |
|
DCS - Adoption Surplus/Realignment |
GF |
$1,500,000 |
|
DCS - Permanent Guardianship Shortfall/Realignment |
GF |
$(14,600,000) |
|
DCS - Kinship Care Surplus/Realignment |
GF |
$(12,100,000) |
|
DCS - Foster Home Placement Surplus/Realignment |
GF |
$(600,000) |
|
DCS - In-Home Mitigation Realignment |
GF |
$(4,300,000) |
|
DES - Federal Match Savings |
GF |
$(18,200,000) |
|
DES - Income Eligibility Verification |
GF |
$700,000 |
|
ADE - Formula Cost |
GF |
$136,764,400 |
|
ADE - Qasimyar State Aid Adjustments |
GF |
$69,441,600 |
|
SOS - CD7 Special Election |
GF |
$7,512,000 |
|
Treasurer - Justice of the Peace Salary Adjustment |
GF |
$138,600 |
|
DVS - Veterans Home Trust Fund Deposit |
GF |
$1,000,000 |
|
Phoenix Convention Center Debt Service |
GF |
$498,700 |
|
DCS - Caseworkers Additional Operating |
OF |
$(4,600,000) |
|
DCS - Operating Lump Sum Realignment |
OF |
$(5,000,000) |
|
DCS - Adoption Surplus/Realignment |
OF |
$(1,500,000) |
|
DCS - Permanent Guardianship Shortfall/Realignment |
OF |
$14,600,000 |
|
DCS - Kinship Care Surplus/Realignment |
OF |
$12,100,000 |
|
DCS - Out of Home Support Surplus |
OF |
$(6,000,000) |
|
DCS - In-Home Mitigation Realignment |
OF |
$6,000,000 |
|
DES - DD Medicaid Program Expenses |
OF |
$109,200,300 |
|
DES - Cost Effectiveness Study - Client Services |
OF |
$13,100,000 |
|
ADE - ESSER Funding Backfill |
OF |
$2,000,000 |
|
Forestry Fire Expenses Repayment |
OF |
$11,180,800 |
|
Forestry Wildfire Suppression Funding |
OF |
$30,000,000 |
|
Auditor General - DES PPCG Special Audit |
OF |
$355,000 |
|
DHS - ASH Shortfall Registry/Permanent Staff |
OF |
$3,328,200 |
Automation Projects Fund (APF) (Sec. 109)
82. Appropriates the following amounts in FY 2026 from the APF subaccounts to ADOA for the following automation and information technology projects:
|
Fund |
Amount |
|
|
State Personnel IT System |
OF |
$5,941,700 |
|
Move More Agencies to State Web Portal Platform |
OF |
$1,750,000 |
|
A to Z Access Multi-Year Replacement |
OF |
$3,370,000 |
|
AHCCCS IT Mainframe Multi-Year Replacement |
OF |
$17,100,000 |
|
ADOA State Web Portal Software and Security Upgrades |
OF |
$375,000 |
|
Business One Stop Portal |
OF |
$1,700,000 |
|
ACC online records and filing system |
OF |
$7,000,000 |
83. Makes the $7,000,000 FY 2024 appropriation from the APF to the ACC for the replacement of the ACC's online records and filing system exempt from lapsing until the beginning of FY 2027.
State Treasurer Local Distribution Miscellaneous Appropriations (Sec. 110-116)
84. Appropriates the following amounts in FY 2026 to the State Treasurer for distribution to the following entities:
|
Local Entity - Project |
Fund |
Amount |
|
International Dark Sky Discovery Center |
GF |
$5,000,000 |
|
Bullhead City - Hancock Road Repaving |
GF |
$1,000,000 |
|
Bullhead City - Main Water Line Transmission |
GF |
$1,000,000 |
|
Mohave County - Mountain View Rd Improvements |
GF |
$1,000,000 |
|
Prescott Regional Airport - Fire Aircraft Ramp |
GF |
$3,500,000 |
|
Prescott Regional Airport – Maintenance & Operations |
GF |
$500,000 |
|
Yuma County - Excess Waste Tire Cleanup |
GF |
$850,000 |
|
Maricopa County Recorder - Voter List Maintenance |
GF |
$50,000 |
|
Maricopa County Recorder |
GF |
$4,000,000 |
|
Counties - Reimburse Federal SAVE Implementation Costs |
GF |
$250,000 |
|
Kingman - Eastern Street Infrastructure |
GF |
$1,000,000 |
|
Mohave County - Meadview/South Cove Launch Ramp |
GF |
$500,000 |
|
Mohave County – Horizon Six District |
GF |
$500,000 |
|
Mohave County – anti-fraud ballot paper |
GF |
$200,000 |
|
Yavapai Sheriff' - Satellite Communications Pilot Program |
GF |
$500,000 |
|
Yuma County Recorder |
GF |
$1,000,000 |
|
Yuma County - Family Advocacy Center |
GF |
$750,000 |
|
City of Peoria - Parks Capital Improvements |
GF |
$500,000 |
|
City of Sierra - Part 433 Reentry License |
GF |
$760,000 |
|
Maricopa County - Jail Kitchen/Laundry |
OF |
$1,700,000 |
|
Counties - Coordinated Jail Re-Entry |
OF |
$10,000,000 |
|
County Sheriffs |
OF |
$8,720,000 |
|
Gilbert – Gilbert Wells Project |
OF |
$5,000,000 |
85. States that the $700,000 is appropriated from the state GF in FY 2026 to the Treasurer to distribute to Yuma County for a family advocacy center that has provided support for domestic violence, sexual assault, child abuse, and elderly abuse for at least 25 years.
86. Appropriates $10,000,000 from the Border Security Fund to the Treasurer in FY 2026 to distribute to the following:
a) $2,000,000 to Yavapai County to establish a statewide coordinated reentry database;
b) $100,000 to a professional association representing Arizona county sheriffs to contract with a state university to assess county coordinated reentry programs; and
c) $1,580,000 to each of Coconino, Mohave, Navajo, Pinal, and Yavapai counties to operate coordinated reentry programs.
87. Advance appropriates $10,000,000 from the Border Security Fund to the Treasurer in each of FY 2027 and FY 2028 to distribute:
a) $100,000 to a professional association representing Arizona county sheriffs to contract with a state university to assess county coordinated reentry programs; and
b) $1,980,000 to each of Coconino, Mohave, Navajo, Pinal and Yavapai counties to operate coordinated reentry program.
88. Requires a professional association that receives money in FY 2026, FY 2027 or FY 2028 to assess coordinated reentry programs to issue a report to the President of the Senate, the Speaker of the House of Representatives, and to JLBC on the outcomes of these programs. Directs the professional association to contract with a state university to develop the report.
89. Instructs each county that receives money for coordinated reentry programs in FY 2026, FY 2027 or FY 2028 to furnish data on the outcomes of their programs to the university developing the report.
90. Requires Sierra Vista to demonstrate is has matching funds prior to the Treasurer distributing the funding appropriated for the Part 433 reentry license. Exempts the funding from lapsing.
91. Distributes the $8.7 million distribution from the Border Security Fund in FY 2026 to various county sheriff’s offices.
92. Requires county sheriff offices to submit a report to JLBC before September 30, 2025, outlining expected expenditures of Border Security Fund monies received from the Treasurer. Allows some county sheriff offices to further distribute the monies to other local law enforcement agencies after submitting this report.
93. Establishes a reporting requirement for Mohave County on the use of monies for anti-fraud ballot paper.
94. Allows the Pinal County Sheriff to retain $200,000 of the monies appropriated from the Border Security Fund in FY 2026.
95. Specifies that $1,000,000 to the Yuma County Recorder is at the sole discretion of the Yuma County Recorder and prohibits the Yuma County Board of Supervisors (BOS) from controlling the expenditure of the monies.
96. Requires the Yuma County Recorder to use a portion of the appropriated monies to hire information technology staff and to control all information technology equipment the contains data related to the county recorder's statutory duties.
97. Directs the Yuma County Recorder to control all access to credentials for information technology equipment and asserts access is not subject to oversight by the Yuma County BOS.
98. Declares that the Yuma County Recorder has sole hiring authority for all personnel employed using the appropriated monies.
99. States that the Yuma County Recorder and the Yuma County BOS must share full access to the facilities located at the Yuma County Counting Center.
100. Stipulates that any facility or part thereof where a task is delegated to the Yuma County Recorder by law or agreement must be under the control of the Yuma County Recorder.
101. Prohibits the Yuma County Recorder or Yuma County BOS from restricting the other's full access to the Yuma County Counting Center or any additional or replacement facilities used for election administration purposes.
102. Specifies that the $1,000,000 to the Maricopa County Recorder at the sole discretion of the Maricopa County Recorder and prohibits the Maricopa County BOS from controlling the expenditure of the monies.
103. Requires the Maricopa County Recorder to use a portion of the appropriated monies to hire information technology staff and to control all information technology equipment the contains data related to the county recorder's statutory duties.
104. Directs the Maricopa County Recorder to control all access to credentials for information technology equipment and asserts access is not subject to oversight by the Maricopa County BOS.
105. Declares that the Maricopa County Recorder has sole hiring authority for all personnel employed using the appropriated monies.
106. States that the Maricopa County Recorder and the Maricopa County BOS must share full access to the facilities located at the Maricopa County Tabulation and Election Center and 301 Administrative Building.
107. Stipulates that any facility or part thereof where a task is delegated to the Maricopa County Recorder by law or agreement must be under the control of the Maricopa County Recorder.
108. Prohibits the Maricopa County Recorder or Maricopa County BOS from restricting the other's full access to the Maricopa County Tabulation and Election Center or 301 Administrative Building.
109. Appropriates the following amounts from the Peace Officer Training Equipment Fund in FY 2026 to the Treasurer for distribution to specified recipients;
a) $1,716,000 for public safety training simulators;
b) $1,423,297 for pepper ball equipment; and
c) $422,000 for license plate readers.
110. Exempts the appropriations from the Peace Officer Training Equipment Fund from lapsing.
111. States that the Legislature intends that the training simulators be used to teach de-escalation tactics.
Prescott Rodeo Ground (Sec. 118)
112. Requires the Treasurer, on the entry of a final judgment by a court of competent jurisdiction enjoining or declaring unconstitutional any part of the FY 2024 General Appropriations Act relating to the $15,300,000 appropriation to a nonprofit volunteer organization that operates a rodeo at the Yavapai County Fairgrounds, to shift monies to the City of Prescott to improve and refurbish the rodeo grounds owned by the city.
113. Outlines the required uses of the monies transferred to the City of Prescott for the city-owned rodeo grounds.
State Operating Adjustments (Sec. 127-128)
|
Adjustment |
GF |
OF |
Total |
|
Employer Health Insurance Contribution Reduction |
($140,000,000) |
($41,551,600 |
($181,551,600) |
|
Employer Health Insurance Contribution Increase |
$140,000,000 |
$40,000,000 |
$180,000,000 |
|
State Fleet Rate Reduction |
($3,299,000) |
($1,453,600) |
($4,752,600) |
|
Agency Rent Adjustment |
$842,300 |
$61,300 |
$903,600 |
|
Salary Increase Adjustments |
$28,075,000 |
$224,700 |
$28,299,700 |
|
Accounting System Charge Adjustment |
($200,300) |
($266,000) |
($466,300) |
|
Agency Retirement Adjustment |
($3,152,900) |
($2,907,900) |
($6,060,800) |
114. Outlines statewide adjustment instructions and procedures.
115. Lists the FY 2026 individual agency charges for general agency counsel provided by the Attorney General.
FY 2027 Appropriations (Sec. 129)
116. Appropriates $94,137,900 from the state GF in FY 2027 for a onetime deposit in the New School Facilities Fund.
117. Instructs SFD to use monies only for facilities that will be constructed for school districts that received final approval from SFD by December 15, 2024.
JLBC Project Approvals (Sec, 130)
118. Declares that the following projects have been favorably reviewed by JLBC:
a) the mid-year capitation rate adjustments proposed by AHCCCS for the contract year ending September 30, 2025, retroactive to April 1, 2025:
i. an average 6% adjustment across all AHCCCS programs; and
ii. an increase of 12.9% in DES's Developmental Disabilities Program.
b) $1,700,000 from the APF for ADA to develop a new licensing, compliance, inspection and enforcement system;
c) a transfer of $2,000,000 from the ADC private prison per diem line item to the overtime and compensatory line item in the FY 2025 General Appropriations Act to pay compensatory time accruals;
d) a transfer of $3,236,400 from the DES home and community based services – Medicaid line item state GF appropriation to the case management – state-only line in the FY 2024 General Appropriations Act for increased formula expenses;
e) the transfer of the following amounts from expenditure authority in the following DES line items to the home and community based services – Medicaid line item in the FY 2024 General Appropriations Act for vendor payments:
i. $8,241,900 from the targeted case management – Medicaid line item;
ii. $14,707,700 from the case management – Medicaid line item;
iii. $30,672,600 from the operating lump sums appropriation.
f) the transfer of the following amounts from the SOS's election services line item to the operating budget in the FY 2025 General Appropriations Act:
i. $72,200 of additional access voter information database operating costs in FY 2025;
ii. $89,700 of additional access voter information database development costs in FY 2025;
iii. $212,397 for access voter information database hosting costs incurred in FY 2023; and
iv. $27,487 for access voter information database hosting costs incurred in FY 2022.
g) the allocation of $1,694,600 from the basic state aid line item in the FY 2025 General Appropriations Act for additional basic state aid funding in FY 2025 for the following recalculations performed by ADE:
i. $435,400 to Hyder Elementary School District;
ii. $789,200 to Antelope Union High School District
iii. $360,700 to Southwest Technical Education District of Yuma; and
iv. $109,300 to Bonita Elementary School District.
119. Deems that the following items have been approved by JLBC:
h) the following state liability claim settlement proposals:
i. The Notice of Claim of Parker Terry, filed June 14, 2024;
ii. Jennifer Power, et al. v. Tuccino, King, Gallardo, et al. and Jennifer Power, et al. v. State of Arizona, et al., settled jointly.
i) the transfer of the following amounts from ADOA's losses and premiums line item to the following line items in the FY 2025 General Appropriations Act for the following purposes:
i. $3,900,000 to the administrative services line item for costs incurred by the AG's office for external legal services; and
ii. $5,000,000 to the workers' compensation line item for increased Workers' Compensation Program costs.
Miscellaneous (Sec. 131-142)
120. 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.
121. Contains various reporting requirements.
122. Defines terms.
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HB 2947
Initials JB Page 0 Vetoed by the Governor
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