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ARIZONA HOUSE OF REPRESENTATIVESFifty-seventh Legislature First Regular Session |
Senate: APPROP DP 8-2-0-0 | 3rd Read 17-12-1-0 |
SB 1735: 2025-2026; general appropriations act
Sponsor: Senator Kavanagh (with permission of committee on Rules), LD 3
Caucus & COW
Overview
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. 6) |
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. 7) |
|||
|
Tribal healthcare investment |
GF |
Non-lapsing |
$3,000,000 |
|
Healthcare Interoperability Grants |
GF |
Exempt from lapsing until FY 2029 |
$1,000,000 |
|
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 |
|
$574,000 |
|
IT Oversight |
OF |
Add 1 FTE |
$103,500 |
|
Business One-Stop |
OF |
Ongoing support |
$2,114,300 |
|
Law Enforcement Records Management |
OF |
Records management system, real-time data sharing |
$500,000 |
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. Requires the ADOA General Accounting Office to account for the second $37,500,000 semiannual payment due on June 30, 2025, from the Maricopa County Special Health Care District to ADOA in the state GF for FY 2025 in the annual financial report.
4. Exempts the $3,000,000 FY 2026 appropriation for tribal health care investment from lapsing.
5. Exempts the $1,000,000 appropriated to ADOA for Navajo Nation electrical connections in FY 2025 from lapsing until June 30, 2026.
6. Appropriates $7,150,650 from the state GF in FY 2026 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.
7. Appropriates $500,000 from the state GF in FY 2026 to ADOA for distribution to Graham County to maintain essential county services.
8. Appropriates $3,000,000 from the state GF in FY 2026 to ADOA for equal distribution to counties with a population of fewer than 300,000 persons according to the 2020 Census in order to supplement the cost of the Elected Officials' Retirement Plan (EORP).
9. Prohibits the counties from using the distributed FY 2026 $3,000,000 appropriation for anything other than employer contributions to EORP.
|
ADOA – School Facilities Division (SFD) (Sec. 8) |
|||
|
Building Renewal Grant Funding |
GF |
Onetime |
$183,300,000 |
|
New School Construction Projects |
GF |
|
$(375,700) |
|
Building renewal |
GF |
Administrative costs |
$750,000 |
|
Offset |
GF |
Offset FY 2026 New Construction with Existing SFD Fund Balance |
($10,000,000) |
10. Exempts the $750,000 FY 2026 appropriation for building renewal grants administration from lapsing.
11. Allows the SFD to use the unencumbered balance of $18,117,400 in the New School Facilities Fund for facilities and land costs for school districts that received final approval by December 15, 2024.
|
State Veterinarian's Office |
GF |
2 FTEs |
$400,000 |
|
Livestock Inspectors |
GF |
2 FTEs |
$400,000 |
|
Meat/Poultry Inspection Supervisor |
GF |
1 FTE |
$200,000 |
|
Food Safety Scientist |
GF |
1 FTE |
$127,000 |
|
Agriculture and Water Innovation Fund |
GF |
Deposit, Onetime |
$2,000,000 |
12. Allows the AZDA to use up to $250,000 from the Commercial Feed Trust Fund in FY 2026 for expenses related to the avian influenza outbreak
|
Arizona Healthcare Cost Containment System (AHCCCS) (Sec. 11) |
|||
|
Formula Adjustments |
GF |
May Capitation Rate |
$41,800,000 |
|
Caseload Adjustments |
GF |
|
$(68,300,000) |
|
Enhanced Federal Medical Assistance Percentage (FMAP) Savings |
GF |
|
$(6,000,000) |
|
Traditional Healing Services |
GF |
|
$100,000 |
|
Prescription Drug Rebate Fund (PDRF) |
GF |
Ongoing shift |
$(150,000,000) |
|
Income Verification |
GF |
Eligibility Income Verification Data Charge, Backfill Loss of Federal Funding |
$2,220,000 |
|
Graduate Medical Education |
GF |
Onetime, non-lapsing |
$4,000,000 |
|
Speech Therapy & Cochlear Implant Coverage |
GF |
|
$274,200 |
|
Legal Costs |
OF |
Contracted onetime legal costs for sober living homes |
$1,375,000 |
|
Secure Behavioral Health Residential Facilities |
OF |
|
$5,000,000 |
13. Exempts the $4,000,000 appropriation from the state GF and the $7,507,400 appropriation from expenditure authority for graduate medical education from lapsing.
14. Allows $100,000 from the Prescription Drug Rebate to be used for administrative costs of granting one-year extensions for all managed care organizations with existing AHCCCS complete care contracts and regional behavioral health agreements.
15. Requires AHCCCS to distribute monies for secure behavioral health residential facilities that intend to apply for licensure with the Department of Health Services (DHS) and provide secure on-site supportive treatment to persons that are determined to be seriously mentally ill that are chronically resistant to treatment and placed in the facility by court order.
16. Requires AHCCCS and DHS to coordinate, by February 1, 2026, to produce an implementation plan that contains recommendations for secure behavioral health facilities populations to the Governor, the President of the Senate and the Speaker of the House of Representatives and outlines requirements that the implementation plan must include.
17. Requires AHCCCS, in consultation with ADOA, to issue a request for proposals for the secure behavioral health residential facilities by May 1, 2026.
18. Requires AHCCCS, when determining the entity or entities that will receive monies for secure behavioral health residential facilities, to:
a) prioritize facilities that can open within 12 months after the effective date of this Act;
b) prioritize facilities that meet the geographic needs of Arizona;
c) consider an entity's experience in operating behavioral health facilities;
d) consider the benefits of selecting one entity or multiple entities to receive the monies; and
e) award the contract or contracts to the best qualified bidder or bidders.
19. Stipulates that, for an entity to receive an award, the entity must submit a bid that includes the entity's plan to either construct a new secure behavioral health residential facility or retrofit an existing building to become a secure behavioral health residential facility.
|
Internet Crimes Against Children Task Force |
OF |
Add 2 FTEs |
$335,000 |
|
Medicaid Fraud Control Unit |
OF |
4 FTEs and vehicles |
$204,100 |
|
Coordinated Re-Entry |
OF |
|
$10,000,000 |
20. Requires the $10,000,000 appropriation for coordinated reentry to be distributed in $2,000,000 increments to each Coconino, Mohave, Navajo, Pinal and Yavapai counties in FY 2026 to supplement costs associated with the operation of an existing coordinated reentry planning services program.
21. Specifies that the coordinated reentry planning services grants include $10,000,000 from opioid claims-related monies deposited in the Consumer Remediation Subaccount of the Consumer Restitution and Remediation Revolving Fund.
22. Requires the AG to complete the transfer of opioid claims-related monies to the Arizona Department of Corrections, Rehabilitation and Reentry (ADCRR) before spending any monies on coordinated reentry planning services grants.
23. Requires $204,100 and 4 FTEs from the AG's operating lump sum to be used to expand the Medicaid Fraud Control Unit within the Criminal Division of the AG's Office.
|
Board of Behavioral Health Examiners (Sec. 15) |
|||
|
E-Licensing |
OF |
Onetime, transition consultant |
$20,400 |
|
Office Space Reorganization |
OF |
Onetime, 7 FTEs |
$187,900 |
|
Department of Child Safety (DCS) (Sec. 17) |
|||
|
Operating Budget Increase |
GF |
|
$6,949,000 |
|
Caseworkers |
GF |
|
$4,600,000 |
|
Office of Child Welfare Investigations |
GF |
|
$600,000 |
|
Congregate Care |
GF |
|
$23,210,500 |
|
Adoption Services |
GF |
|
$(2,900,000) |
|
Permanent Guardianship |
GF |
|
$(3,500,000) |
|
Kinship Care |
GF |
|
$(11,500,000) |
|
Foster Care Home Placement |
GF |
|
$(2,000,000) |
|
Extended Foster Care |
GF |
|
$3,900,000 |
|
Extended Foster Care |
GF |
Service model, Onetime |
$6,400,000 |
|
Out-Of-Home Support |
OF |
|
$(6,000,000) |
|
In-Home Mitigation |
OF |
|
$6,000,000 |
24. 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.
25. Requires the webpage to include at least one free training program and educational materials and resources related to preventing human trafficking.
26. Requires DCS to notify the Director of JLBC and OSPB if the nurturing parent and family connections programs are favorably reviewed by the federal government and qualify for federal reimbursement.
|
Arizona Commerce Authority (ACA) (Sec. 19) |
|||
|
Applied Research Centers |
GF |
|
$500,0000 |
|
State Rural Development Council |
GF |
|
$1,200,000 |
|
Romania Trade Office |
GF |
|
$125,000 |
27. Requires the ACA to distribute the monies for applied research centers to centers located in Arizona that specialize in medical technology, including hardware or software components that monitor, enhance or improve the delivery of health care or human performance.
28. Requires the ACA to distribute the monies for applied research centers in increments of up to $250,000 within 30 days after the applied research center notifies ACA in writing that it has receive matching funds.
29. Exempts the appropriation for applied research centers from lapsing until June 30, 2027.
30. Requires the ACA, by December 1, 2025, to submit a report to the Joint Legislative Budget Committee (JLBC) on the location, activities and annual expenses of each trade office operated by the ACA during the prior fiscal year.
|
Arizona Community Colleges (Sec. 20) |
|||
|
Out of County Reimbursement Adjustment |
GF |
|
$494,900 |
|
Eastern Arizona College |
GF |
|
$1,000,000 |
|
Maricopa Wrestling Scholarships |
GF |
|
$250,000 |
|
Corporation Commission (Sec. 22) |
|||
|
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. 23) |
|||
|
Operating Budget |
GF |
|
$37,400,000 |
|
Overtime and Compensatory Time |
GF |
|
$17,000,000 |
|
Community Corrections |
GF |
|
$(3,900,000) |
|
Private Prison Per Diem |
GF |
|
$(6,400,000) |
|
Inmate Health Care Contracted Services |
GF |
|
$13,400,000 |
|
Substance Abuse Treatment |
GF |
|
$(3,900,000) |
|
Noncontract Medication |
GF |
|
$(40,000,000) |
|
Injunction Related IT Projects |
GF |
|
$(13,600,000) |
|
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 |
31. Allows ADCRR to use the FY 2024 appropriation for noncontract medication on operating expenses without seeking JLBC review.
32. Allows ADCRR to use up to $9,500,000 from the FY 2024 appropriation for noncontract medication to pay obligations incurred in FY 2024 for operating expenses.
33. Exempts the $650,000 FY 2024 appropriation for Inmate Dog Training from lapsing.
|
Arizona State Schools for the Deaf and the Blind (ASDB) (Sec. 25) |
|||
|
Supplemental Early Childhood Therapies |
GF |
|
$100,000 |
|
Remove Preschool Disability Cost |
OF |
Remove disability costs added in FY 2025 |
$(168,000) |
34. Requires the $100,000 FY 2026 appropriation for the supplemental early childhood therapies to be spent to contract with multiple providers to provide supplemental early childhood listening and spoken language therapies to eligible infants and toddlers from birth to three years old and their families.
35. Requires contractors chosen to provide the supplemental early childhood listening and spoken language therapies to ensure that the services will be provided or overseen by a certified auditory verbal educator or therapist in a natural environment, clinical setting, educational setting or virtually.
36. Exempts the FY 2025 $200,000 appropriation for the website security upgrades from lapsing until June 30, 2026.
|
Office of Economic Opportunity (OEO) (Sec. 28) |
|||
|
Dual Enrollment Incentive Program |
GF |
|
$1,500,000 |
|
Adult Workforce Diploma Program |
GF |
|
$1,000,000 |
37. Exempts the $1,500,000 FY 2026 appropriation for the Dual Enrollment Student Development Program from lapsing.
|
Department of Economic Security (DES) (Sec. 29) |
|||
|
Formula Adjustments |
GF |
|
$170,000,000 |
|
Enhanced FMAP Savings |
GF |
|
$(8,400,000) |
|
Area Agencies on Aging |
GF |
Remove One-Time Area Agencies on Aging Funding |
$7,000,000 |
|
After School and Summer Child Care Grant Program |
GF |
|
$3,000,000 |
|
Child Care Assistance Program |
GF |
Base funding |
$7,100,000 |
|
Child Care Assistance Program |
GF |
20% Quality rate, 50% waitlist |
$37,800,000 |
|
$120 Summer Food Benefit |
GF |
SUN Bucks |
$200,000 |
|
Mainframe as a Service Contract Increase |
GF |
|
$4,010,000 |
|
Adult Protective Services (APS) |
GF |
Backfill ARPA Funds, 44 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 |
|
Formula Adjustment |
GF |
Backfill prior year DD actuarial loss |
$32,300,000 |
|
Benefit Services Digital Portal |
GF |
Implementation |
$1,170,000 |
|
Coordinated Homelessness Services |
GF |
|
$15,500,000 |
|
Veteran Homelessness Strategic Plan |
GF |
|
$500,000 |
|
Veteran Homelessness Services |
GF |
|
1,500,000 |
|
Civil Legal Aid |
GF |
|
$3,000,000 |
|
Produce Incentive Program |
GF |
Non-lapsing |
$2,000,000 |
|
Education Workforce Initiative |
GF |
|
$500,000 |
|
Child Care |
OF |
To maintain services |
$81,080,500 |
38. Exempts the following FY 2025 appropriations from lapsing until June 30, 2026:
a) $500,000 for Navajo Nation women's shelter and social services;
b) $500,000 for Navajo Nation youth programs;
c) $1,000,000 for Pascua Yaqui Tribe social services programs; and
d) $1,000,000 for the Developmental Disabilities job training and life skills services.
39. Requires DES to allocate the monies for homeless veterans services as follows:
a) $750,000 to veterans treatment court to provide services to veterans that have substance use disorders or mental health conditions; and
b) $750,000 for homeless prevention services to provide immediate assistance to homeless veterans through shelter connection and utility, rental and employment assistance.
40. Requires DES to allocate the monies for coordinated homeless services as follows:
a) at least $4,000,000 for eviction prevention services and assistance to provide a portion of monthly housing and utility expenses or legal aid and resources for Arizonans facing eviction;
b) at least $4,000,000 for homeless response and operations to rehouse homeless youth and families; and
c) at least $1,000,000 for referral network operations to connect homeless individuals and individuals experiencing other crises with available state resources.
41. Requires DES to use monies for homeless veterans strategic plan in collaboration with the Arizona Department of Veterans' Services to create a strategic plan to address veteran homelessness.
42. Requires DES to submit a report to JLBC on expenditures from the cost effectiveness study by January 31, 2026, rather than November 30, 2025.
43. Requires the $32,300,000 appropriation for the Developmental Disabilities Reconciliation Payment to be used to process the reconciliation payment associated with an operating cost shortfall for the contract year ending on September 30, 2024.
44. Exempts the monies appropriated for the Out-of-School Time Program Fund from lapsing until June 30, 2027.
45. Allows DES, beginning April 1, 2026, to use up to $25,000,000 from the Budget Stabilization Fund (BSF) to provide funding for reimbursement grants.
46. Requires DES, before using the BSF monies, to notify the Director of JLBC and the Director of OSPB.
47. Requires the BSF appropriation to be fully reimbursed by September 1, 2026, and to be reimbursed in full as part of the closing process for FY 2026.
48. Prohibits the BSF appropriation from being used for additional programmatic expenditures.
49. Exempts $2,000,000 from the DES adult services line item from lapsing.
50. Requires the $3,000,000 appropriation for civil legal aid to be distributed to nonprofit organizations for the provision of statewide general civil legal aid services consistent with the terms and restrictions of the legal services corporation as of federal FY 2025.
51. Requires DES to distribute the monies for the Education Workforce Innovation Initiative to qualifying programs led by Arizona-based organizations with supporting partnerships from a public university and a local education agency and requires a proposal request to be made public by no later than October 15, 2025.
52. Requires grantees that have received monies to have demonstrated a record of developing the leadership capacity of parents and caregivers and have been in operation for at least four years.
53. Requires qualifying programs for the Education Workforce Innovation Initiative to:
a) focus on developing parents and caregivers as education professionals whose income falls at or below the federal poverty levels across urban and rural Arizona;
b) provide participants with knowledge in the science of reading and the skill development to enter the education profession as literacy classroom aides or in paraprofessional roles;
c) support the job placement of program participants with the partnered local education agency; and
d) provide continuing education and ongoing professional development to the parent educators once placed in professional education roles.
|
Arizona Department of Education (ADE) (Sec. 31) |
|||
|
Formula |
GF |
|
$33,573,800 |
|
Truth in Taxation (TNT) Savings |
GF |
|
$(3,528,200) |
|
3rd Year Low Income Weight Increase |
GF |
Onetime |
$37,000,000 |
|
3rd Year Additional Assistance Increase |
GF |
Onetime |
$29,000,000 |
|
School Meals |
GF |
Make elimination of school meals co-pay ongoing |
$3,800,000 |
|
9th Grade On-Track Program |
GF |
|
$3,400,000 |
|
Virtual School Assessments |
GF |
|
$400,000 |
|
Apache Junction Unified School District |
GF |
Robotics Program |
$200,000 |
|
Continuing High School and Workforce Training Program |
GF |
|
$1,000,000 |
|
Comm College Adult Education Workforce Development Program |
GF |
Deposit |
$6,000,000 |
|
Rural School Nurse Access Grant Fund |
GF |
Non-lapsing |
$2,500,000 |
|
Teacher Retention Study |
GF |
|
$100,000 |
54. Specifies that, of the $29,000,000 appropriated for additional assistance, $23,142,00 is included for a onetime district additional assistance supplement and $5,858,00 is included for a onetime charter additional assistance supplement.
55. Requires ADE to distribute monies for district additional assistance and charter additional assistance on a proportional basis based on the district or charters additional assistance funding that each district or charter received in FY 2026.
56. Allows a school district to budget the onetime district additional assistance in either the school district's maintenance and operation fund or unrestricted capital outlay fund.
57. Requires ADE to distribute the appropriated amount for onetime Free and Reduced-Price Lunch (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.
58. 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.
59. Exempts the $3,400,000 for the Ninth Grade On-Track Program from lapsing.
60. Requires ADE to allocate monies for the onetime school meal grants to school districts and charter schools that participate in the National Lunch Program or School Breakfast Program under the National School Lunch and Child Nutrition Acts for grants to reduce or eliminate copayments that would be charged to eligible children for reduced-price meals.
61. Stipulates that, if there are insufficient monies to cover the school meal grant awards for all eligible grantees, ADE must reduce each grant proportionately to cover all eligible grantees.
62. Specifies that, of the amount appropriated for accountability and achievement testing, $400,000 is included for contracted third-party vendor expenses associated with implementation of assessments in a virtual setting.
63. Exempts the FY 2025 $4,000,000 onetime allocation to the Continuing High School and Workforce Training Program from lapsing and requires ADE to spend any monies available for a continuing high school and workforce training program.
64. Requires ADE to allocate at least $500,000 of the $2,500,000 for the Rural Arizona School Nurse Access Program for grants to increase the salaries of school nurses in rural school districts and charter schools and allows ADE to spend any remaining monies on grants to rural school districts and charter schools to hire new school nurses.
65. Requires the $100,000 for the teacher retention study be used by ADE to conduct and complete a comprehensive study to determine the retention rate of teachers in school districts and charter schools in Arizona and requires ADE to submit the result of the study to the Governor, the President of the Senate, the Speaker of the House of Representatives, the State Board of Education and provide a copy to the Secretary of State by December 31, 2025.
66. Requires ADE to develop and maintain a publicly accessible interactive dashboard on ADE's website that contains the study results and recommendations.
|
Department of Emergency and Military Affairs (DEMA) (Sec. 32) |
67. 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.
68. Exempts the $500,000 appropriation for additional grant support staff from lapsing.
|
Arizona Department of Environmental Quality (ADEQ) (Sec. 33) |
|||
|
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 |
|
Continue Recycling Grants as Ongoing |
OF |
|
$2,773,100 |
|
Offset WQARF Funding with WIFA Water Aug. Fund |
OF |
|
$15,000,000 |
|
Water Quality Feed Fund Deposit |
OF |
WIFA |
$9,000,000 |
|
Iron King Mine/Humboldt Smelter Cleanup |
OF |
|
$2,000,000 |
|
Aquifer Facility Permits |
OF |
2 FTEs |
$776,600 |
69. Extends the lapsing date for the $1,000,000 FY 2025 appropriation for the zero-emission heavy duty eight-ton pilot program from June 30, 2025 to June 30, 2026.
70. Specifies that ADEQ's lump sum appropriation includes $776,600 from the Water Quality Fee Fund to add two FTEs to process an increase in permit applications resulting from revised aquifer water quality standards if matching amounts of aquifer protection permit program fee are deposited in the Water Quality Fee Fund by the end of FY 2026.
|
Board of Executive Clemency (Sec. 36) |
|||
|
Full-Time Case Analyst |
GF |
1 FTE |
$105,000 |
72. Makes the $27,110,300 FY 2026 appropriation for the wildfire mitigation line item non-lapsing.
73. Makes the $65,000,000 FY 2023 appropriation for the wildfire emergency response line item non-lapsing through FY 2028.
74. Appropriates $30,000,000 from the Long-Term Water Augmentation Fund in FY 2025 to the DFFM for wildfire suppression and allows DFFM to spend the monies on:
a) fire suppression and pre-positioning of fire suppression equipment and staff;
b) capital expenditures and equipment associated with fire suppression and pre-positioning activities for fire suppression;
c) mitigation projects to address postfire flooding and other damage that may occur because of fires or fire suppression activities;
d) financial assistance to public and private landowners for emergency repairs for infrastructure damage resulting from fires or fire suppression activities; and
e) reimbursement to a state agency or political subdivision for the state agency's or political subdivision's cost share of eligible claims arising from an emergency declared or a federal declaration of emergency or major disaster.
75. Requires the $30,000,000 FY 2025 appropriation to be used to supplement and not supplant any monies allocated by the federal government.
76. Requires DFFM to seek federal reimbursement as appropriate for expenditures made from the appropriation and any reimbursements must be credited to the appropriation.
77. Requires DFFM, before spending any monies on capital projects, to submit its expenditure plans for review by the Joint Committee on Capital Review.
78. Requires DFFM, within 15 days after the end of each month, to report to the President of the Senate, Speaker of the House of Representatives and JLBC on expenditures from, and reimbursements for, the prior month.
79. Requires each report to include information regarding the total expenditures and reimbursements for each allowable expense.
80. Exempts the $30,000,000 FY 2025 appropriation from lapsing.
|
Livestock Loss Compensation |
GF |
|
$250,000 |
|
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 |
|
Arizona Department of Gaming (ADG) (Sec. 40) |
81. Specifies that the ADG must allocate $1,000,000 of the amount appropriated for racetrack capital projects and maintenance and operations funding to a commercial live racing permittee located in Maricopa County.
82. Requires ADG, by December 31, 2025, to submit a report to JLBC detailing the Division of Racing's workload, regulatory and budgetary changes since FY 2017.
|
Department of Health Services (DHS) (Sec. 43) |
|||
|
Nurse Education Investment Program |
GF |
|
$1,500,000 |
|
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 |
|
$750,000 |
|
Ibogaine Clinical Research Grants |
GF |
Non-lapsing |
$5,000,000 |
|
Contract Facilitator |
GF |
Rural Maternal Health Advisory Commission |
$100,000 |
|
Clinical Health Care Training Program |
GF |
|
$100,000 |
|
International Medical School Collaboration |
GF |
|
$125,000 |
|
Childcare Training |
OF |
|
$159,800 |
|
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 |
|
$3,933,300 |
|
State Hospital |
OF |
Technology improvements |
$946,600 |
|
Health Care Directives Registry |
OF |
|
$2,000,000 |
83. Exempts the $750,000 FY 2026 appropriation for a dementia awareness campaign from lapsing until June 30, 2027.
84. Requires DHS, by December 31, 2025, and June 30, 2026, to submit a report to the Governor, Speaker of the House of Representatives, President of the Senate and provide a copy to the Secretary of State of outlined information relating to the health care directives registry.
85. Requires DHS to use the monies appropriated for ibogaine clinical research grants to award a grant to conduct a certified clinical research study on the use of ibogaine for the treatment of neurological diseases.
86. Allows DHS to award an ibogaine clinical research grant only to an entity that has:
a) history of proven research and treatment of neurological diseases;
b) a neurosurgery program with the requisite clinical and research facilities and that is staffed by professionals having expertise in the most challenging neurological and neurosurgical conditions; and
c) the ability to facilitate pioneering research and innovation in diagnosis and treatment of neurological conditions.
87. Extends the lapsing date for the following FY 2025 appropriations from June 30, 2025, to June 30, 2026:
a) $500,000 for Preventive Health Services;
b) $500,000 for counseling services for parents of deceased children;
c) $1,000,000 for Southern Arizona counseling and community service grants; and
d) $1,000,000 for senior health promotion and coordination.
88. Outlines requirements for DHS to implement a public education campaign to increase awareness for Alzheimer's organizations.
89. Requires the $125,000 to DHS for the International Medical School Collaboration to be used for a onetime grant program to a public or private medical school in Arizona to establish a collaboration with an international medical school and provide international hands-on learning opportunities for students in Arizona.
90. Requires the $100,000 for the Clinical Health Care Training Program in FY 2026 to be used by DHS for a onetime grant program to a public or private university to operate a clinical health care training program that provides healthcare services to the working poor and provides hands-on learning experiences for students in Arizona.
|
Arizona Historical Society (Sec. 44) |
91. Exempts the FY 2026 appropriation for the Flagstaff Pioneer Museum from lapsing until June 30, 2028.
|
Territorial Governor Mansion Restoration |
GF |
|
$500,000 |
|
Arizona Department of Homeland Security (Sec. 46) |
92. Exempts the FY 2026 appropriation for federal cybersecurity grant matching monies from lapsing until June 30, 2028.
|
Judiciary – Supreme Court (Sec. 51) |
|||
|
Child and Family Representation Program |
GF |
|
$600,000 |
|
Increased Filing Fee Revenues |
OF |
|
$500,000 |
|
Commission on Judicial Conduct |
GF |
1 FTE for a complaint investigator |
$145,000 |
|
Investigate Complaints Against Fiduciaries |
OF |
1 FTE |
$349,900 |
|
Judiciary – Cour of Appeals (Sec. 51) |
|||
|
Human Resources Staff |
GF |
1 FTE |
$93,700 |
|
Judiciary – Superior Court (Sec. 51) |
|||
|
New Mohave County Judge |
GF |
|
$191,800 |
|
State Land Department (Sec. 53) |
|||
|
Trust Land Management |
OF |
9 FTEs |
$2,000,000 |
|
Legislature – Legislative Council (Sec. 54) |
|||
|
Museum and Security Staff |
GF |
Add 7 FTEs |
No cost |
|
Legislature – Auditor General (Sec. 54) |
|||
|
Local Government Special Audit |
GF |
1 FTE |
$5,300,000 |
|
Natural Resource and Conservation Board (Sec. 60) |
|||
|
Groundwater Recharge Facilities |
GF |
Non-lapsing |
$250,000 |
93. 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. 63) |
94. Adds 1 FTE to the State Board of Nursing.
|
Board of Osteopathic Examiners in Medicine and Surgery (Sec. 68) |
|||
|
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. 69) |
|||
|
Heritage Fund Deposit |
GF |
|
$1,000,000 |
|
State Lake Improvement Fund |
GF |
Deposit |
$1,500,000 |
|
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 |
95. Prohibits the Arizona State Parks Board from spending any monies deposited into the Heritage Fund to purchase property.
96. Requires the Arizona State Parks Board, if it receives land and water conservation grant funding for capital projects in FY 2026, to report its revised expenditure plans to JCCR and OSPB.
97. Stipulates if federal historic preservation fund grant monies are unavailable to the State Historic Preservation Office in federal FY 2026, the Arizona State Parks Board may spend up to $865,000 of monies in the State Parks Revenue Fund.
98. Exempts the $10,000,000 FY 2024 appropriation for the veterans memorial park from lapsing.
99. Requires ASPB to report its expenditure plan to JLBC before spending any monies for the State Historic Preservation Office operating costs.
|
Complete Investigations in 180 Days |
OF |
1 FTE |
$207,200 |
100. Extends the lapsing date for the $190,500 FY 2024 appropriation for e-licensing system upgrades until June 30, 2026.
|
Board of Physical Therapy (Sec. 72) |
|||
|
Licensing Workload |
OF |
0.5 FTE |
$23,200 |
|
Board of Podiatry Examiners (BPE) (Sec. 74) |
101. 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. 75) |
|||
|
Record Digitization Ongoing Project |
OF |
1st of 5-year project |
$100,000 |
|
State Board of Psychologist Examiners (Sec. 76) |
|||
|
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. 77) |
|||
|
Local Border Support Funding |
GF |
|
$5,000,000 |
|
Replacement Vehicles |
GF |
Non-lapsing through FY 2027 |
$8,667,500 |
|
Additional Dispatch Call Takers |
GF |
9 FTEs |
$788,200 |
|
Recruitment Funding |
GF |
|
$150,000 |
|
Sex Offender Management Board |
GF |
2 FTEs |
$400,000 |
|
Yuma County Family Advocacy Center |
GF |
|
$750,000 |
|
Anti-Human Trafficking Fund Deposit |
GF |
|
$1,600,000 |
|
One-Time ACTIC Funding Increase |
GF |
|
$1,500,000 |
|
Repurpose Unused Border Security Fund Monies |
GF |
|
$(10,900,000) |
|
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 |
$1,490,000 |
|
Repurpose Unused Border Security Fund Monies |
OF |
|
$10,900,000 |
102. Exempts $5,000,000 of the $18,232,900 FY 2026 appropriation for local border support from lapsing.
103. Requires $1,500,000 of the $3,632,700 FY 2026 appropriation for ACTIC to be used on
104. anti-human trafficking efforts.
105. Requires the $750,000 FY 2026 appropriation for the Yuma County family advocacy center distribution to be allocated to an advocacy center in Yuma County that has provided support for domestic violence, sexual assault, child abuse and elderly abuse for at least 25 years.
106. Exempts the appropriation for onetime vehicle replacement from lapsing until June 30, 2027.
107. Requires DPS to spend $2,500 of the $144,000 FY 2026 appropriation for civil air patrol maintenance and operations on dues to the National Association for Search and Rescue.
108. Exempts the $400,000 FY 2026 appropriation for sex offender management board administration from lapsing until June 30, 2027.
|
Arizona Department of Revenue (ADOR) (Sec. 82) |
109. Stipulates that, if ADOR incurs legal expenses to protect the unclaimed property program from legal challenges, the unclaimed property legal expenses is transferred from the state GF to ADOR's Administrative Fund and is appropriated to ADOR for unclaimed property legal expenses.
110. Prohibits ADOR from transferring more than $1,500,000 from the state GF in FY 2026 for unclaimed property legal expenses.
111. Exempts the $500,000 FY 2026 appropriation for Proposition 312 property tax refund administration costs until June 30, 2027.
|
Residential Utility Consumer Office (Sec. 79) |
|||
|
Workload |
OF |
Workload Due to New ACC Formula Rate Policy, 2 FTEs |
$330,700 |
|
Secretary of State (SOS) (Sec. 83) |
|||
|
Address Confidentiality Program Fund |
GF |
Non-lapsing |
$400,000 |
|
CD7 Special Election |
GF |
|
$8,000,000 |
|
Increased Records Storage Fees |
OF |
|
$279,300 |
|
AVID Database Costs |
OF |
|
$516,000 |
112. Prohibits monies for the Address Confidentiality Program Fund deposit from being transferred to another line item.
113. Requires the SOS, by November 1, 2025, to submit a report to JLBC and OSPB on the actual expenditures for the prior fiscal year for the access voter information database.
114. Extends the lapsing date for the $450,000 FY 2025 appropriation from the Records Services Fund for electronic records repository program from June 30, 2025, to June 30, 2026.
115. Extends the lapsing date for the $5,352,200 FY 2020 appropriation to the SOS for the county allocation of the Help America Vote Act from June 30, 2025, to June 30, 2026.
116. Appropriates $8,000,000 from the state GF in FY 2025 to the SOS to reimburse expenses incurred by Cochise, Maricopa, Pima, Pinal, Santa Cruz and Yuma counties for the administration of the special primary and special general elections to fill the vacancy in the U.S. House of Representatives for Arizona's Congressional District 7.
117. Appropriates $500,000 from the state GF in FY 2025 to the SOS for expenses incurred for the administration of the special primary and special general elections to fill the vacancy in the U.S. House of Representatives for Arizona's Congressional District 7.
118. Requires the SOS to reimburse a county for the additional cost of printing and mailing ballots and other election materials, compensation paid to election board and tally board officers serving during the special elections and for costs to administer the special elections.
119. Allows the SOS to advance a portion of the estimated expenses to the county and requires a county that receives an advance to provide subsequent documentation to the SOS.
120. Requires the clerk of the board of supervisors, by November 30, 2025, to submit to the SOS for approval itemized claims, together with documentation verified by the clerk, for expenses incurred or to be incurred by the county recorder and the county elections department.
121. Requires the SOS, on approval of a claim, to submit the claim to ADOA for payment to the county from the $8,000,000 FY 2025 appropriation.
122. Caps the reimbursement of expenses by county as follows:
a) Cochise County, $139,500;
b) Maricopa County, $906,900;
c) Pima County, $5,597,700;
d) Pinal County, $66,100;
e) Santa Cruz County, $240,600; and
f) Yuma County, $349,200.
123. Requires the SOS, by March 1, 2026, to submit a report to JLBC and OSPB on the reimbursements made.
|
State Board of Technical Registration (Sec. 85) |
|||
|
Investigator |
OF |
Investigator to Reduce Case Resolution Time to under 180 Days, 1 FTE |
$91,000 |
|
Arizona Department of Transportation (ADOT) (Sec. 87) |
124. 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.
|
State Treasurer (Sec. 88) |
|||
|
GF |
|
$150,000 |
|
125. Requires the appropriation for Veterans' Health Innovations Pilot Program to be used to conduct a pilot program with an emphasis on innovations that improve veterans' health that satisfy statutory requirements.
|
Arizona Board of Regents (Sec. 90) |
|||
|
Arizona Promise Program |
GF |
|
$16,300,000 |
|
Washington D.C. Internships |
GF |
|
$150,000 |
|
Universities – University of Arizona (UA) (Sec. 93) |
|||
|
On-Farm Irrigation Efficiency Fund |
GF |
|
$2,000,000 |
126. Requires, of the UA lump sum appropriation, $1,350,000 to be used for the Yuma Center of Excellence for Desert Agriculture and $500,000 to be used for the space, defense and critical minerals initiative.
|
Universities – University of Arizona Health Sciences Center (Sec. 93) |
|||
|
GF |
|
$50,000 |
|
127. Requires the $500,000 FY 2026 appropriation for AZ REACH to be used to provide medical care transfer services for hospitals with less than 20 beds.
|
Veterans' Mental Health Pilot Program |
GF |
Exempt from lapsing |
$1,000,000 |
128. Requires the $1,000,000 FY 2026 appropriation for veterans' mental health services grant program to be used to support community health programs that provide services and treatment to veterans with mental illness.
129. Requires ADVS to:
a) administer the veterans' mental health services grant program;
b) establish eligibility criteria for grant applicants, acceptable uses of grant monies and reporting requirements for all grant recipients; and
c) award program monies on a competitive basis directly to private entities that provide services and treatment to veterans with mental illness.
130. Extends the lapsing date for the FY 2025 appropriation for a veterans' resource center from June 30, 2025, to June 30, 2026.
|
Medical Investigator |
OF |
Medical Investigator to Address Additional Complaints, 1 FTE |
$109,700 |
|
Water Infrastructure Finance Authority (Sec. 96) |
|||
|
Gilbert Wells Project |
OF |
|
$5,000,000 |
|
Kingman Water Well Drilling and Rehabilitation |
OF |
|
$3,000,000 |
|
Water Conservation Grant Fund |
OF |
Deposit |
$250,000 |
|
Department of Water Resources (ADWR) (Sec. 97) |
|||
|
Colorado River/Assured Water Supply Program |
OF |
6 FTEs |
741,100 |
|
Colorado River Legal Defense |
OF |
Non-lapsing |
$1,000,000 |
FY 2025 Supplemental Appropriations and Adjustments (Sec. 98-114)
|
Agency |
Fund |
Amount |
|
ADOA – Risk Management losses and premiums |
OF |
$8,900,000 |
|
AHCCCS – Formula |
GF |
$(94,051,600) |
|
AHCCCS – Eligibility Income Verification |
GF |
$1,832,000 |
|
ADE – Basic State Aid Formula |
GF |
$206,206,000 |
|
ADE – Statewide Assessment Expenses |
OF |
$2,000,000 |
|
DFFM – Debt Owed to Federal Government for Wildfire Suppression Activities (exempt from lapsing) |
OF |
$11,180,000 |
|
DES – Formula |
GF |
$(9,900,000) |
|
DES – Summer Food Benefits (exempt from lapsing) |
GF |
$1,879,600 |
|
DES – Eligibility Income Verification |
GF |
$700,000 |
|
Department of Liquor Licenses and Control – Records System (exempt from lapsing) |
GF |
$2,900,000 |
|
State Treasurer – Justice of the Peace Salary Adjustment |
GF |
$310,000 |
|
Arizona Department of Veterans' Services – State Homes for Veterans Trust Fund for Operating Costs |
GF |
$1,000,000 |
|
DHS – Arizona State Hospital Operating Costs |
OF |
$3,328,200 |
|
DHS – Child Care Licensing Expenditures |
OF |
$1,992,000 |
|
ABE – Operating Costs |
OF |
$15,000 |
131. Appropriates $15,000,000 from the state GF in FY 2025 to ADOA for the following purposes:
a) to pay disallowed costs relating to excess retained earnings;
b) to pay disallowed costs relating to the statewide information technology charges;
c) for fund transfers in FY 2024; and
d) to pay interest owed from prior-year disallowed costs.
132. Declares the Legislature's intent that ADOA not enter into any agreements to pay for any federal reimbursements related to excess balances in the Special Employee Health Insurance Trust Fund unless proposed agreements have been reviewed by JLBC.
Automation Projects Fund (APF) (Sec. 116)
133. Appropriates the following amounts in FY 2026 from the APF subaccounts to ADOA for the following automation and information technology projects:
|
Subaccount |
Amount |
|
|
Human Resources Information System – Replacement |
HRIS Subaccount |
5,941,700 |
|
Migrate State Websites to New Platform |
ADOA Subaccount |
1,750,000 |
|
A to Z Arizona Web Portal |
ADOA Subaccount |
3,370,000 |
|
Software and Security Upgrades – State Web Portal |
ADOA Subaccount |
375,000 |
|
Medicaid Enterprise System Mainframe - Replacement |
Medicaid Enterprise System Subaccount |
1,800,000 |
|
Arizona Department of Real Estate's IT Systems - Replacement |
Arizona Department of Real Estate Subaccount |
1,962,000 |
|
Business One-Stop Portal |
Business One-Stop Subaccount |
$1,700,000 |
134. 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.
135. Exempts the FY 2026 appropriations from the APF from lapsing until June 30, 2027.
136. Extends the lapsing date for the following projects:
a) $2,000,000 from the APF for the Arizona Department of Agriculture for cloud mitigation until July 1, 2027;
b) $494,500 from the APF to DPS to replace the concealed weapons tracking system until July 1, 2026;
c) $6,700,000 from the APF to ADOA for a new information technology platform to authenticate individuals applying for health and human services programs until July 1, 2026;
d) $19,369,400 from the APF to ADOR to implement the Integrated Tax System Modernization Project until July 1, 2026; and
e) $7,000,000 from the APF to the Arizona Corporation Commission to replace the online records and filing system until July 1, 2026.
State Treasurer Local Distribution Miscellaneous Appropriations (Sec. 118-119)
137. Appropriates the following amounts in FY 2026 from the state GF to the State Treasurer for distribution to the following entities:
|
Local Entity - Project |
Amount |
|
Ak-Chin Indian Community Police Department |
$300,000 |
|
Arizona City Fire District |
$100,000 |
|
Casa Grande Police Department |
$300,000 |
|
Casa Grande Fire Department |
$200,000 |
|
Coolidge Police Department |
$200,000 |
|
Coolidge Fire Department |
$200,000 |
|
Eloy Police Department |
$200,000 |
|
Eloy Fire District |
$200,000 |
|
Florence Police Department |
$500,000 |
|
Florence Fire Department |
$270,000 |
|
Gila River Police Department |
$200,000 |
|
Gila River Fire Department |
$200,000 |
|
Maricopa County Attorney's Office - sexual assault investigator training and anti-human trafficking activities |
$2,000,000 |
|
City of Maricopa Police Department |
$200,000 |
|
City of Maricopa Fire and Medical Department |
$200,000 |
|
Mohave County - south cove lunch ramp at Lake Mead recreational area |
$500,000 |
|
Mohave County - improvements to firefighting infrastructure in the Horizon Six Improvement District |
$500,000 |
|
Pinal County Sheriff's Office |
$400,000 |
|
Pinal County - signage relating to illegal dumping |
$50,000 |
|
Prescott Valley – Police Department |
$450,000 |
|
Sierra Vista - infrastructure funding |
$100,000 |
|
Sierra Vista - attaining a part 433 reentry license through the Federal Aviation Administration |
$1,500,000 |
|
Mohave County Sheriff's Office - search and rescue training |
$100,000 |
|
Mohave County Sheriff's Office |
$1,000,000 |
|
Paradise Valley - development of an indoor police shooting range |
$100,000 |
|
Phoenix Police Department - community policing |
$100,000 |
|
Salt River Police Department - community policing |
$100,000 |
|
Scottsdale - adaptive services park or adaptive services recreational facility |
$100,000 |
|
Snowflake – restoration of James M. Flake house historical site for the purpose of providing community educational programming |
$350,000 |
|
Thunderbird Fire District |
$100,000 |
|
Yavapai County Sheriff's Office - criminal information intelligence analysis coordination center |
$2,000,000 |
|
Yavapai County Sheriff's Office |
$950,000 |
|
Yavapai County Sheriff's Office - Satellite Communications Pilot Program |
$500,000 |
|
Yuma County - disposal of excess waste tires |
$850,000 |
|
Yuma County Recorder - operating costs |
$1,000,000 |
|
City of Yuma - distribute to a nonprofit regional hospital that supports at least 400 beds |
$3,000,000 |
|
Yavapai County – construction of a public safety facility in Peeples Valley |
$1,000,000 |
|
La Paz County Sheriff's Office |
$500,000 |
|
Peoria - capital improvements to city parks |
$300,000 |
|
Winslow |
$2,500,000 |
138. Appropriates $3,300,000 from the state GF in FY 2026 to the State Treasurer to distribute, by July 15, 2025, to a nonprofit organization that is designated as an international dark sky discovery center and that is focused on dark sky preservation in Arizona.
139. Requires the international dark sky discovery center nonprofit organization to use the monies for the public purpose of providing educational programming to Arizona students and offering its capabilities to university students for research purposes.
140. Appropriates the following from the state GF in FY 2026 to the State Treasurer for the following:
a) $200,000 to distribute to a nonprofit organization located in Pinal County that provides after-school recreational and educational programming to students in Pinal County;
b) $300,000 to distribute to a nonprofit organization located in Pinal County that provides suicide prevention services to the residents of Pinal County;
c) $25,000 to distribute to a nonprofit organization that promotes economic development in Pinal County to support a reading program for residents of Pinal County;
d) $200,000 to distribute to a nonprofit organization located in Pinal County that provides services to veterans with an in-person facility and a mobile outreach center and has previously received a grant from ADVS; and
e) $1,500,000 to distribute to a child development center located in the Town of Taylor that supports long-term education and workforce needs.
141. Appropriates $1,000,000 from the Long-Term Water Augmentation Fund to the State Treasurer for distribution to the City of Bullhead City for the installation of a new water transmission line.
142. Appropriates $4,100,000 from the state GF in FY 2026 to the Maricopa County Recorder for election related operations and exempts the monies from lapsing.
143. Specifies that the Maricopa County Board of Supervisors may not reduce the FY 2026 funding to the Maricopa County Recorder's office below the amount adopted in FY 2025 budget.
144. Requires the Maricopa County Recorder's to submit quarterly expenditure summaries to JLBC detailing the use of the monies appropriated.
Onetime Correctional Office Stipend (Sec. 120)
145. Appropriates the following amount from the state GF in FY 2026 for awarding onetime correctional officer stipend:
a) $17,075,300 to the Arizona Department of Corrections, Rehabilitation and Reentry (ADCRR);
b) $3,767,200 to ADCRR private prison per diem special line item; and
c) $542,200 to the Arizona Department of Juvenile Corrections (ADJC).
146. Requires ADCRR to amend private prison bed contracts to increase per diem rates in FY 2026 on a onetime basis to provide an amount sufficient for a onetime four percent stipend to each correctional officer employed in a private prison that contracts with Arizona.
147. Requires the Director of ADCRR and the Director of ADJC to award a onetime stipend payment to an employee that is employed by the agency after July 4, 2025.
148. Requires the stipend be equal to four percent of the employee's annual salary level and the amount must be distributed evenly throughout each pay period in FY 2026.
Prescott Rodeo Ground (Sec. 121)
149. Shifts monies appropriated to a Nonprofit Volunteer Rodeo in FY 2024 to the City of Prescott to renovate and repair the rodeo grounds owned by the City.
150. Specifies that the monies distributed from the State Treasurer to the City of Prescott to improve and refurbish the rodeo grounds owned by Prescott be must promptly spent to promote use of the rodeo grounds, including landscaping, hardscaping, drainage and the replacement, improvement and increased capacity of aging water and sewer infrastructure.
Arizona Arts Trust Fund (Sec. 122)
151. Appropriates $2,000,000 from the state GF in FY 2026 to be deposited into the Arizona Arts Trust Fund.
Debt Service Payments (Sec. 123-124)
152. Allocates $26,497,400 of state GF revenue in FY 2026 to the Arizona Convention Center Development Fund.
153. Asserts that the Rio Nuevo Multipurpose Facility District is estimated to receive $19,000,000 from a portion of state transaction privilege tax revenues in FY 2026 and that the actual amount of distribution will be made as outlined in statute.
Fund Transfers (Sec. 125-128)
154. Transfers the following unexpended and unencumbered amounts from the following sources in FY 2026 to the Colorado River Litigation Fund:
a) the amount appropriated for Lower Colorado River litigation expenses in the FY 2016 General Appropriations Act;
b) the amount appropriated for the Lower Colorado River litigation expenses in the FY 2017 General Appropriations Act;
c) the amount appropriated for the Lower Colorado River litigation expenses in the FY 2021 General Appropriations Act; and
d) the amount appropriated for the Lower Colorado River litigation expenses in the FY 2022 General Appropriations Act.
155. Transfers $15,500,000, by July 1, 2026, from the State Highway Fund to the state GF in FY 2026 for the purposes of providing adequate support and maintenance for agencies of this state.
156. Specifies that the $15,500,000 transferred from the State Highway Fund reflects the interest income earned from investment of State Highway Fund monies from a portion of revenues derived from the state GF portion of transaction privilege tax revenues transferred in the FY 2023 state budget.
157. Transfers the following amounts in FY 2026 from outlined sources to APF projects subaccounts and specifies the transfers are not appropriations from the APF and only direct appropriations from the APF are appropriations:
|
Project |
Source |
Subaccount |
Amount |
|
Human Resources Information System |
Information Technology Fund |
Human Resources Information System |
$5,941,700 |
|
State Websites New Software Program |
Information Technology Fund |
ADOA |
$1,750,000 |
|
A to Z Web Portal |
State Web Portal Fund |
ADOA |
$3,370,000 |
|
Software and Security Upgrades |
State Web Portal Fund |
ADOA |
$375,000 |
|
Replace IT System |
GF |
Arizona Department of Real Estate |
$1,962,000 |
|
Replace Medicaid Enterprise System |
GF |
Medicaid Enterprise System Modernization |
$1,800,000 |
|
Business One-Stop |
Information Technology Fund |
Business One-Stop |
1,700,000 |
158. Transfers $2,700,000 from the Residential Contractors' Recovery Fund to the Registrar of Contractors Fund in FY 2026.
Payment Deferrals (Sec. 129-130)
159. Appropriates $40,000,000 from the Consumer Remediation Subaccount of the Consumer Restitution and Remediation Revolving Fund in FY 2026 to the AG and specifies that the monies consist of opioid claims-related litigation or settlements.
160. Requires the AG, by July 3, 2025, or if sufficient monies are not available on July 3, 2025, within three calendar days after sufficient monies become available, to transfer the $40,000,000 to the ADCRR Opioid Remediation Fund.
161. Requires ADCRR to use the monies in the specified opioid-related fund only for past and current costs for care, treatment, programs and other expenditures for individuals with opioid use disorder and any co-occurring substance use disorder or mental health conditions or for any other approved purposes prescribed in a court order, a settlement funds agreement that is entered into by the state and other parties to the opioid litigation.
162. Prohibits the AG from imposing any conditions on the transfer of the monies in the ADCRR Opioid Remediation Fund.
163. Stipulates that, if the AG does not transfer the full amounts specified by July 3, 2025, the ADOA General Accounting Office must directly transfer the amount from the subaccount to the ADCRR Opioid Remediation Fund.
164. Exempts the AG monies from lapsing.
165. Continues to defer $800,727,700 in Basic State Aid (BSA) and additional state aid (ASA) payments from ADE in FY 2026 until after June 30, 2026, but no later than July 12, 2026, and excludes charter schools and school districts with a student count less than 4,000 pupils from the deferral.
166. Requires ADE to make the deferral by reducing the apportionment of state aid for each month in the fiscal year by the same amount.
167. Requires ADE to disburse the FY 2027 appropriations of $800,727,700 to the counties for the school districts starting July 1, 2026, and no later than July 12, 2026, in amounts equal to the reductions in the apportionment of BSA and ASA.
168. Requires school districts to include, in the revenue estimates used for computing FY 2026 tax rates, the deferred appropriation monies that the districts will receive.
State Operating Adjustments (Sec. 131-132)
|
Area of Adjustment |
GF |
OF |
Total |
|
Employer Health Insurance Contribution Reduction |
$(140,000,000) |
$(41,551,600) |
$(181,551,600) |
|
Employer Health Insurance Contribution Increase |
$194,941,000 |
$50,000,000 |
$244,941,000 |
|
State Fleet Operations Adjustment |
$5,331,500 |
$500,000 |
$5,831,500 |
|
State Fleet Replacement |
$3,281,400 |
$2,700,000 |
$5,981,400 |
|
Agency Retirement Adjustment |
$(3,152,900) |
$(2,907,900) |
$(6,060,800) |
|
Agency Rent Adjustment |
$1,650,700 |
$65,000 |
$1,715,700 |
|
Agency Risk Management |
$26,000,000 |
$11,500,000 |
$37,500,000 |
|
Agency Salary Increases |
$4,956,000 |
$7,000,000 |
$11,956,000 |
|
Accounting System Charge |
$(200,300) |
$(276,700) |
$(477,000) |
169. Outlines statewide adjustment instructions and procedures.
170. Outlines the FY 2026 individual agency charges totaling $1,798,500 for general agency counsel provided by the AG.
FY 2027 Appropriations (Sec. 133)
171. Appropriates $94,137,900 from the state GF in FY 2027 for a onetime deposit in the New School Facilities Fund.
172. 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, 134)
173. 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.
174. Deems that the following items have been approved by JLBC:
a) the following state liability claim settlement proposals:
v. The Notice of Claim of Parker Terry, filed June 14, 2024;
vi. Jennifer Power, et al. v. Tuccino, King, Gallardo, et al. and Jennifer Power, et al. v. State of Arizona, et al, settled jointly.
b) 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:
vii. $3,900,000 to the administrative services line item for costs incurred by the AG's office for external legal services; and
viii. $5,000,000 to the workers' compensation line item for increased Workers' Compensation Program costs.
Miscellaneous (Sec. 135-145)
175. 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.
176. Contains various reporting requirements.
177. Defines terms.
178.
179.
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181. SB 1735
182. Initials JB Page 0 Caucus & COW
183.
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