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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
general appropriations act; 2025-2026
Purpose
Makes session law changes relating to general appropriations necessary to implement the FY 2026 state budget.
Background
The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is often necessary to make statutory and session law changes to effectuate the budget. Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.
The Joint Legislative Budget Committee (JLBC) Baseline includes an estimate of spending necessary to meet requirements of statutory formulas and other obligations (JLBC Budget Bills As Introduced).
S.B. 1735 contains the budget provisions for changes relating to general appropriations.
Provisions
FY 2026 Ongoing Fund and Major Footnote Changes
Acupuncture Examiners
Major Footnote Changes
1. Allows the Acupuncture Board of Examiners to use $42,818 to pay outstanding costs of services provided by the Arizona Department of Administration Central Services Bureau in prior years.
Arizona Department of Administration (ADOA)
Major Footnote Changes
2. Requires ADOA, by March 31, 2026, to submit a report to the Director of JLBC and the Governor's Office of Strategic Planning and Budgeting (OSPB) on the amount that the Maricopa County Special Health Care District has agreed to send to ADOA for deposit in the state General Fund (state GF) in FY 2026.
3. Specifies that, if the amount that the Maricopa County Special Health Care District has agreed to send to ADOA for deposit in FY 2026 has changed from the amount sent in FY 2025, the report must include the reason for the change.
4. Requires the ADOA General Accounting Office to account for the second $37,500,000 semi-annual 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.
5. Exempts the $3,000,000 FY 2026 appropriation for tribal health care investment from lapsing.
6. Exempts the $1,000,000 appropriated to ADOA for Navajo Nation electrical connections in FY 2025 from lapsing until June 30, 2026.
7. Exempts the $1,000,000 appropriated to ADOA for health care interoperability grants from lapsing until June 30, 2028.
ADOA School Facilities Division (SFD)
Major Footnote Changes
8. Exempts the $750,000 FY 2026 appropriation for building renewal grants administration from lapsing.
9. 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.
Arizona Department of Agriculture (AZDA)
Ongoing General Fund (GF) and Other Fund (OF)
|
Summary of Changes |
Source |
Comments |
FY 2026 Changes |
|
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 |
Major Footnote Changes
10. 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 Health Care Cost Containment System (AHCCCS)
Ongoing General Fund (GF) and Other Fund (OF)
|
Summary of Changes |
Source |
Comments |
FY 2026 Changes |
|
Formula |
GF |
|
41,800,000 |
|
Caseload Adjustments |
GF |
|
(68,300,000) |
|
Prescription Drug Rebate Fund |
GF |
|
(150,000,000) |
|
Traditional Healing Services |
GF |
|
100,000 |
Major Footnote Changes
11. 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.
12. Allows $100,000 from the Prescription Drug Rebate Fund 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.
13. 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.
14. 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.
15. Requires AHCCCS, in consultation with ADOA, to issue a request for proposals for the secure behavioral health residential facilities by May 1, 2026.
16. 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.
17. 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.
Attorney General (AG)
Major Footnote Changes
18. 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.
19. 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.
20. 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.
21. 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.
Department of Child Safety (DCS)
Ongoing General Fund (GF) and Other Fund (OF)
|
Summary of Changes |
Source |
Comments |
FY 2026 Changes |
|
Operating Budget Increase |
GF |
|
6,900,000 |
|
Caseworker |
GF |
|
4,600,000 |
|
Office of Child Welfare Investigation |
GF |
|
600,000 |
|
Congregate Care |
GF |
|
3,900,000 |
|
Onetime |
19,300,000 |
||
|
Adoption Services |
GF |
|
(2,900,000) |
|
Permanent Guardianship |
GF |
|
(3,500,000) |
|
Kinship Care |
GF |
|
(11,500,000) |
|
Foster Home Placement |
GF |
|
(2,000,000) |
|
Extended Foster Care |
GF |
|
3,900,000 |
|
Out of Home Support |
OF |
|
(6,000,000) |
|
In-Home Mitigation |
OF |
|
6,000,000 |
|
Preventive Services |
GF |
|
7,000,000 |
|
Comprehensive Health Plan |
GF |
|
22,200,000 |
Major Footnote Changes
22. Requires DCS to develop and maintain a webpage for a group home training program that each DCS-contracted group home employee must annually complete.
23. Requires the group home training program webpage to include:
a) at least one training program that is provided free of charge and that includes instruction on preventing human trafficking and internet crimes against children; and
b) educational materials and resources related to preventing human trafficking.
24. Exempts the $100,000 FY 2026 appropriation for a group home monitoring program from lapsing.
25. 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.
Commission for the Deaf and Hard of Hearing
Major Footnote Changes
26. Exempts the FY 2025 $200,000 appropriation for the website security upgrades from lapsing until June 30, 2026.
Arizona Commerce Authority (ACA)
Major Footnote Changes
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 Arizona Commerce Authority (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.
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2026 Changes |
|
Formula |
GF |
|
500,000 |
Arizona Department of Corrections, Rehabilitation and Reentry (ADCRR)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2026 Changes |
|
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) |
Major Footnote Changes
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 Schools for the Deaf and Blind
Major Footnote Changes
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.
Office of Economic Opportunity (OEO)
Major Footnote Changes
36. Exempts the $1,500,000 FY 2026 appropriation for the Dual Enrollment Student Development Program from lapsing.
Department of Economic Security (DES)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2026 Changes |
|
Formula |
GF |
|
170,000,000 |
Major Footnote Changes
37. 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.
38. 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.
39. 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.
40. 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.
41. Requires DES to submit a report to JLBC on expenditures from the cost effectiveness study by January 31, 2026, rather than November 30, 2025.
42. 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.
43. Exempts the monies appropriated for the Out-of-School Time Program Fund from lapsing until June 30, 2027.
44. Exempts the $5,000,000 appropriation to DES for Area Agencies on Aging housing assistance from lapsing.
45. Exempts the $2,000,000 appropriation to DES for adult services from lapsing.
46. 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.
47. 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.
48. 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.
49. 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)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2026 Changes |
|
Formula |
GF |
|
33,600,000 |
|
Formula – TNT Savings |
GF |
|
(3,500,000) |
|
3rd Year Low Income Weight Increase |
GF |
Onetime |
37,000,000 |
|
3rd Year Additional Assistance Increase |
GF |
Onetime |
29,000,000 |
Major Footnote Changes
50. 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.
51. 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.
52. 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.
53. 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.
54. 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.
55. Exempts the $3,400,000 for the Ninth Grade On-Track Program from lapsing.
56. 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.
57. 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.
58. 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.
59. 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.
60. 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.
61. Exempts the $2,500,000 appropriation to ADE for the Rural Arizona School Nurse Access Program from lapsing.
62. 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.
63. 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)
Major Footnote Changes
64. Extends the lapsing date for the $20,000,000 FY 2023 appropriation to Cochise County to construct a new county jail facility from June 30, 2027, to June 30, 2029.
65. Exempts the $500,000 appropriation for additional grant support staff from lapsing.
Arizona Department of Environmental Quality (ADEQ)
Major Footnote Changes
66. 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.
67. 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
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2026 Changes |
|
Full-Time Case Analyst |
GF |
1 FTE |
105,000 |
Arizona Exposition and State Fair Board (State Fair Board)
Major Footnote Changes
68. Exempts the $3,771,400 FY 2025 appropriation from lapsing until June 30, 2026.
Department of Forestry and Fire Management (DFFM)
Major Footnote Changes
69. Exempts the $27,110,300 FY 2026 appropriation for wildfire mitigation from lapsing.
70. Exempts the FY 2023 $65,000,000 appropriation for wildfire emergency response from lapsing until June 30, 2028.
Arizona Department of Gaming (ADG)
Major Footnote Changes
71. 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.
72. 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.
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2026 Changes |
|
Healthcare Facilities Licensing Increase |
GF |
|
(1,600,000) |
Major Footnote Changes
73. Exempts the $750,000 FY 2026 appropriation for a dementia awareness campaign from lapsing until June 30, 2027.
74. 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.
75. 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.
76. Allows DHS to award an ibogaine clinical research grant only to an entity that has:
a) 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.
77. 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.
78. Requires DHS to distribute monies appropriated in FY 2026 for a dementia awareness campaign to a nonprofit organization to implement a public education campaign to increase awareness of Alzheimer's disease and dementia in rural and underserved urban areas in Arizona.
79. Requires the nonprofit organization that receives monies for a dementia awareness campaign:
a) demonstrate expertise in memory loss, dementia and Alzheimer's disease;
b) host a 24/7 toll-free hotline that is staffed by master's level consultants to provide education on Alzheimer's disease signs and symptoms, decision-making support, dementia crisis assistance, treatment options and referrals to local community resources;
c) provide care and support for those affected by Alzheimer's disease and other dementias; and
d) demonstrate experience in marketing and public awareness campaigns.
80. Exempts the $750,000 appropriation to DHS for a dementia awareness campaign from lapsing.
81. 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.
82. 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
Major Footnote Changes
83. Exempts the FY 2026 appropriation for the Flagstaff Pioneer Museum from lapsing until June 30, 2028.
84. Appropriates $500,000 from the state GF to the Prescott Historical Society to restore the Territorial Governor's Mansion.
Major Footnote Changes
85. Exempts the FY 2026 appropriation for federal cybersecurity grant matching monies from lapsing until June 30, 2028.
Arizona Department of Housing (ADOH)
86. Requires ADOH to use monies in the Military Transitional Housing Fund for supportive services and transitional unit rehabilitation for veterans.
Judiciary
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2026 Changes |
|
Supreme Court – Complaints Investigator |
GF |
1 FTE |
145,000 |
|
Superior Court – Mohave County New Judge |
GF |
|
200,000 |
|
Courts of Appeals – Human Resources Staff |
GF |
1 FTE |
100,000 |
Major Footnote Change
87. Appropriates $600,000 appropriation to the Arizona Supreme Court for the Child Family Representation Pilot Program.
Legislature
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2026 Changes |
|
Legislative Council – Increase Appropriated FTE Authority |
7 FTEs |
Arizona State Lottery Commission
Major Footnote Changes
88. Specifies an amount equal to a percentage of total ticket sales as determined by contract is appropriated to pay online vendor fees and the amount is currently estimated to be $17,747,100 or 1.079% of total ticket sales in FY 2026.
89. State Natural Resource Conservation Board
90. Requires the State Natural Resource Conservation Board to use the monies for groundwater recharge facilities in FY 2026 to clean and restore groundwater recharge facilities that provide flood control benefits and that are located in a groundwater basin that has been designated as a subsequent active management area.
91. Exempts the $250,000 appropriation to the State Natural Resource Conservation Board for groundwater recharge facilities from lapsing.
Arizona State Parks Board (ASPB)
92. Prohibits ASPB from spending any monies appropriated to the Heritage Fund to purchase property.
93. Exempts the $10,000,000 FY 2024 appropriation to ASPB for the Arizona Veterans Memorial State Park from lapsing until June 30, 2027.
94. Stipulates if ASPB receives Land and Water Conservation Grant funding for capital projects in FY 2026, ASPB must report its revised expenditure plans to JCCR and OSPB.
95. Stipulates if federal historic preservation fund grant monies are unavailable to the State Historic Preservation Office in FY 2026, ASPB may spend up to $865,000 of monies in the State Parks Revenue Fund to pay for operating costs.
96. Requires ASPB to report its expenditure plan to JLBC before spending any monies for the State Historic Preservation Office operating costs.
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2026 Changes |
|
Additional Dispatch Call Takers |
GF |
9 FTEs |
800,000 |
Major Footnote Changes
97. Exempts $5,000,000 of the $18,232,900 FY 2026 appropriation for local border support from lapsing.
98.
Requires $1,500,000 of the $3,632,700
FY 2026 appropriation for ACTIC to be used on
anti-human trafficking efforts.
99. 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.
100. Exempts the appropriation for onetime vehicle replacement from lapsing until June 30, 2027.
101. Requires DPS to spend $2,500 of the $250,000 FY 2026 appropriation for civil air patrol maintenance and operations on dues to the National Association for Search and Rescue.
102. Exempts the $400,000 FY 2026 appropriation for sex offender management board administration from lapsing until June 30, 2027.
Arizona Department of Revenue (ADOR)
Major Footnote Changes
103. 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.
104. Prohibits ADOR from transferring more than $1,500,000 from the state GF in FY 2026 for unclaimed property legal expenses.
105. Exempts the $500,000 FY 2026 appropriation for Proposition 312 property tax refund administration costs until June 30, 2027.
Arizona State Board of Pharmacy
Major Footnote Changes
106. Extends the lapsing date for the $190,500 FY 2024 appropriation for e-licensing system upgrades until June 30, 2026.
State Board of Podiatry Examiners
Major Footnote Changes
107. Allows the State Board of Podiatry Examiners to use up to $9,200 of the $202,700 FY 2026 appropriation to pay outstanding costs of services provided by the Arizona Department of Administration Central Services Bureau in prior years.
Secretary of State (SOS)
Major Footnote Changes
108. Prohibits monies for the Address Confidentiality Program Fund deposit from being transferred to another line item.
109. 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.
110. 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.
111. 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.
112. Appropriates $8,000,000 from the state GF 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.
113. Appropriates $500,000 from the state GF 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.
114. 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.
115. 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.
116. 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.
117. Requires the SOS, on approval of a claim, to submit the claim to ADOA for payment to the county from the $8,000,000 appropriation.
118. Caps the reimbursement of expenses by county as follows:
a) Cochise County, $139,500;
b) Maricopa County, $906,900;
c) Pima County, $5,347,700;
d) Pinal County, $66,100;
e) Santa Cruz County, $240,600; and
f) Yuma County, $349,200.
119. Requires the SOS, by March 1, 2026, to submit a report to JLBC and OSPB on the reimbursements made.
Arizona Department of Transportation (ADOT)
Major Footnote Changes
120. Specifies that ADOT's operating lump sum includes a $2,000,000 reduction from the State Highway Fund in FY 2025 from ADOT's Enforcement and Compliance Division.
State Treasurer
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2026 Changes |
|
Justice of the Peace Salaries |
GF |
|
200,000 |
Major Footnote Changes
121. Specifies $1,000,000 of the appropriation to the Statewide Transportation Innovation Fund be allocated for projects east of Power Road in Maricopa and Pinal County.
122. Requires monies appropriated for a Veterans' Health Innovation Pilot Program be distributed to entity that meets statutory requirements for the Health Innovation Trust Fund.
Arizona Department of Veterans' Services (ADVS)
Major Footnote Changes
123. 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.
124. 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.
125. Exempts the $1,000,000 FY 2026 appropriation for veterans' mental health services grant program from lapsing.
126. Extends the lapsing date for the FY 2025 appropriation for a veterans' resource center from June 30, 2025, to June 30, 2026.
Universities
Major Footnote Changes
127. Requires, of the University of Arizona lump sum appropriation, $1,500,000 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.
128. 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.
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Colorado River/Assured Water Supply Program – additional FTEs |
OF |
6 FTEs |
700,000 |
FY 2025 Supplemental Appropriations and Adjustments
General Fund (GF) and Other Fund (OF)
|
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 |
|
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 |
|
Acupuncture Board of Examiners – Operating Costs |
OF |
15,000 |
|
ADE – Statewide Assessment Expenses |
OF |
2,000,000 |
129. 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.
130. 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.
Department of Forestry and Fire (DFFM)
131. 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 as a result 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.
132. Requires the $30,000,000 FY 2025 appropriation to be used to supplement and not supplant any monies allocated by the federal government.
133. Requires DFFM to seek federal reimbursement as appropriate for expenditures made from the appropriation and any reimbursements must be credited to the appropriation.
134. Requires DFFM, before spending any monies on capital projects, to submit its expenditure plans for review by the Joint Committee on Capital Review.
135. 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.
136. Requires each report to include information regarding the total expenditures and reimbursements for each allowable expense.
137. Exempts the $30,000,000 FY 2025 appropriation from lapsing.
Arizona Department of Administration (ADOA)
138. 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.
139. Appropriates $500,000 from the state GF in FY 2026 to ADOA for distribution to Graham County to maintain essential county services.
140. 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).
141. Prohibits the counties from using the distributed FY 2026 $3,000,000 appropriation for anything other than employer contributions to EORP.
142. Appropriates the following amounts in FY 2026 from the APF subaccounts to ADOA for the following automation and information technology projects:
|
Project |
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 |
Business One-Stop Subaccount |
1,700,000 |
143. 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.
144. Exempts the FY 2026 appropriations from the APF from lapsing until June 30, 2027.
145. 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.
146. 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.
147. Requires DES, before using the BSF monies, to notify the Director of JLBC and the Director of OSPB.
148. 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.
149. Prohibits the BSF appropriation from being used for additional programmatic expenditures.
State Treasurer
150. Appropriates the following amounts from the state GF in FY 2026 to the State Treasurer to distribute to the following entities:
a) $300,000 to the Ak-Chin Indian Community Police Department;
b) $100,000 to the Arizona City Fire District;
c)
$450,000 to the Prescott Valley Police Department;
d) $300,000 to the Casa Grande Police Department;
e) $200,000 to the Casa Grande Fire Department;
f) $200,000 to the Coolidge Police Department;
g) $200,000 to the Coolidge Fire Department;
h) $200,000 to the Eloy Police Department;
i) $200,000 to the Eloy Fire District;
j) $500,000 to the Florence Police Department;
k) $270,000 to the Florence Fire Department;
l) $200,000 to the Gila River Police Department;
m) $200,000 to the Gila River Fire Department;
n) $2,000,000 to the Maricopa County Attorney's Office for sexual assault investigator training and anti-human trafficking activities;
o) $200,000 to the City of Maricopa Police Department;
p) $200,000 to the City of Maricopa Fire and Medical Department;
q) $500,000 to Mohave County to purchase a mobile launch ramp for the south cove at Lake Mead recreational area;
r) $500,000 to Mohave County for improvements to firefighting infrastructure in the Horizon Six Improvement District;
s) $400,000 to the Pinal County Sheriff's Office;
t) $50,000 to Pinal County for signage relating to the prohibition of illegal dumping;
u) $100,000 to the City of Sierra Vista for infrastructure funding;
v) $1,500,000 to the City of Sierra Vista for the purpose of attaining a part 433 reentry license through the Federal Aviation Administration;
w) $100,000 to the Mohave County Sheriff's Office for search and rescue training;
x) $100,000 to the Town of Paradise Valley for the development of an indoor police shooting range;
y) $100,000 to the Phoenix Police Department for community policing;
z) $100,000 to the Salt River Police Department for community policing;
aa) $100,000 to the City of Scottsdale to be used for adaptive services park or adaptive services recreational facility;
bb) $350,000 to the City of Snowflake to restore the James M. Flake house historical site for the purpose of providing community educational programming;
cc) $100,000 to the Thunderbird Fire District;
dd) $2,000,000 to the Yavapai County Sheriff's Office to operate a criminal information intelligence analysis coordination center;
ee) $850,000 to Yuma County for the disposal of excess waste tires;
ff) $1,000,000 to the Mohave County Sheriff's Office;
gg) $500,000 to the La Paz County Sheriff's Office;
hh) $950,000 to the Yavapai County Sheriff's Office;
ii) $500,000 to the Yavapai County Sheriff's Office for a satellite communications pilot program;
jj) $1,000,000 to Yavapai County for the construction of a public safety facility in Peeples Valley;
kk) $1,000,000 to the Yuma County Recorder for operating costs;
ll) $3,000,000 to Yuma County to distribute to a nonprofit regional hospital located in the city of Yuma that supports at least 400 beds;
mm) $300,000 to the city of Peoria for capital improvements to city parks; and
nn) $2,500,000 to the city of Winslow.
151. Appropriates $1,000,000 from the Long-Term Water Augmentation Fund to the State Treasurer to distribute to Bullhead City for the installation of a new water transmission.
152. Appropriates $2,000,000 from the state GF in FY 2026 to deposit into the Arizona Arts Trust Fund.
153. 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.
154. Specifies that the Maricopa County Board of Supervisors may not reduce the funding to the Maricopa County Recorder's office below the amount adopted in FY 2026 budget.
155. Requires the Maricopa County Recorder's to submit quarterly expenditure summaries to JLBC detailing the use of the monies appropriated.
156. 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.
157. 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.
158. 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.
Arizona Department of Corrections, Rehabilitation and Reentry (ADCRR)
159. Appropriates the following amount from the state GF in FY 2026 for awarding onetime correctional officer stipend:
a) $17,075,300 to 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).
160. 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.
161. 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.
162. 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.
Rodeo
163. Requires the State Treasurer to distribute the $15,000,000 appropriated in the FY 2024 General Appropriations Act to the City of Prescott to improve and refurbish the rodeo grounds owned by the city.
164. 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.
Debt Service Payments
166. 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
167. Transfers the following unexpended and unencumbered amounts from the following sources in FY 2026 to the Colorado River Litigation Fund:
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.
168. 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.
169. 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.
170. 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 |
171. Transfers $2,700,000 from the Residential Contractors' Recovery Fund to the Registrar of Contractors Fund in FY 2026.
Payment Deferrals
172. 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.
173. 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.
174. 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.
175. Prohibits the AG from imposing any conditions on the transfer of the monies in the ADCRR Opioid Remediation Fund.
176. 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.
177. Exempts the AG monies from lapsing.
178. 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.
179. Requires ADE to make the deferral by reducing the apportionment of state aid for each month in the fiscal year by the same amount.
180. 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.
181. 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.
Statewide Operating Adjustments
General Fund (GF) and Other Fund (OF)
|
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) |
182. Prescribes statewide adjustments procedures and instructions.
183. Outlines the FY 2026 individual agency charges totaling $1,798,500 for general agency counsel provided by the AG.
FY 2027 Appropriations
184. Appropriates $94,137,900 from the state GF in FY 2027 for a onetime deposit in the New School Facilities Fund.
185. Requires the School Facilities Division to only use the monies for facilities that will be constructed for school districts that received final approval on or before December 15, 2024.
Project Reviews and Approvals
186. Deems the following projects to have been favorably reviewed by JLBC:
a) mid-year capitation rate adjustments proposed by AHCCCS for the contract year ending September 30, 2025, retroactive to April 1, 2025, as follows:
i. an average 6 percent adjustment across all AHCCCS programs; and
ii. an increase of 12.9 percent in DES's Developmental Disabilities Program;
b) $1,700,000 from the Automation Projects Fund for AZDA to develop a new licensing, compliance, inspection and enforcement system;
c) $2,000,000 transfer from the ADCRR private prison per diem to the overtime and compensatory time to pay compensatory time accruals;
d) $3,236,400 transfer from the DES home and community based services Medicaid line item state General Fund appropriation to the case management state only line item for increased formula expenses;
e) transfer of the following amount 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; and
iii. $30,672,600 from the operating lump sum appropriation;
f) transfer of the following amounts from the SOS's election services line item to the operating budget in the FY 2025 General Appropriation 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; and
g) the allocation of $1,694,600 from the BSA line item in the FY 2025 General Appropriations Act for additional BSA 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.
187. Deems the following items to have been approved by JLBC:
a) 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.
b) 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
188. 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.
189. Contains other reporting requirements.
191. Becomes effective on the signature of the Governor.
Amendments Adopted by Committee of the Whole
1. Increases the Arizona Financial Information line-item appropriation under the Arizona Department of Administration (ADOA) from $14,681,700 to $15,238,700.
2. Appropriates $1,000,000 from the state General Fund (state GF) to ADOA for health care interoperability grants and exempts the appropriation from lapsing until July 1, 2028.
3. Appropriates $2,000,000 from the state GF to the Arizona Department of Agriculture (AZDA) to deposit into the Agriculture and Water Innovation Fund.
5. Increases the appropriation to AHCCCS for traditional Medicaid services from $9,486,711,200 to $10,124,311,200.
6. Increases the appropriation to AHCCCS for critical access hospitals from $16,454,300 to $28,512,600.
8. 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.
9. Requires AHCCCS, in consultation with ADOA, to issue a request for proposals for the secure behavioral health residential facilities by May 1, 2026.
10. 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.
11. 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.
12. Modifies the requirement that DCS must provide at least one training program that includes instruction on preventing human trafficking and internet crimes against children to only include instruction on preventing human trafficking.
14. Appropriates $125,000 from the state GF to the ACA for a Romania Trade Office.
15. Appropriates $250,000 from the state GF to the Maricopa County Community College District for wrestling scholarships.
16. Removes the Community College Adult Education Workforce Development Program Fund from the Office of Economic Opportunity.
17. Transfers any unexpended and unencumbered monies in the Adult Workforce Diploma Program Fund, by July 1, 2025, to the Adult Workforce Diploma Program Fund.
18. Increases the appropriation to DES for adult services from $10,731,900 to $12,731,900.
19. Appropriates $3,000,000 from the state GF to DES for civil legal aid.
20. Increases the appropriation to DES for coordinated homeless services from $15,022,600 to $17,022,600.
21. Appropriates $2,000,000 from the state GF to DES for the Produce Incentive Program and exempts the appropriation from lapsing.
22. Appropriates $500,000 from the state GF to DES for the Education Workforce Innovation Initiative.
23. Exempts $2,000,000 from the DES adult services line item from lapsing.
24. 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.
25. 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.
26. 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.
27. 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.
28. Appropriates $6,000,000 to ADE to be deposited into the Community College Adult Education Workforce Development Program Fund.
29. Appropriates $1,000,000 to ADE for the Continuing High School and Workforce Training Program.
30. Removes the $1,000,000 appropriation to ADE for the Homeless Youth Education Program.
31. Increases the appropriation to ADE for English learner administration from $6,608,800 to $11,608,800.
32. Appropriates $2,500,000 from the state GF to ADE for the Rural Arizona School Nurse Access Program and makes the appropriation nonlapsing.
33. Appropriates $100,000 from the state GF to ADE for a teacher retention study.
34. 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.
35. 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.
36. 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.
37. Requires ADE to develop and maintain a publicly accessible interactive dashboard on ADE's website that contains the study results and recommendations.
38. Increases the FTE positions to ADEQ by two FTEs.
39. 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.
40. Increases the appropriation to the Arizona Game and Fish Department for the Livestock Loss Compensation Fund deposit from $100,000 to $250,000.
41. Increases the appropriation to the Office of the Governor operating lump sum by $750,000.
42. Appropriates $100,000 to DHS for the Clinical Health Care Training Program.
43. Appropriates $125,000 to DHS for the International Medical School Collaboration.
44. Outlines requirements for DHS to implement a public education campaign to increase awareness for Alzheimer's organizations.
45. Removes the requirement that the awarded entity for the ibogaine research have at least $5,000,000 of matching monies.
46. 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.
47. 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.
48. Appropriates $500,000 from the state GF to the Prescott Historical Society to restore the Territorial Governor's Mansion.
50. Increases the lump sum appropriations to both the Arizona State Senate and the Arizona House of Representatives by $750,000 per budget unit.
51. Increases the lump sum appropriation to the Arizona Auditor General from $27,222,700 to $32,022,700.
52. Increases the lump sum appropriation to the Department of Liquor Licenses and Control from $6,126,800 to $6,226,800.
53. Appropriates $250,000 to the State Natural Resource Conservation Board for groundwater recharge facilities and exempts the appropriation from lapsing.
56. Increases the Arizona State Board of Nursing FTE positions from 63 to 64.
57. Exempts the FY 2024 $10,000,000 to the Arizona State Parks Board for the Veterans Memorial State Park from lapsing.
58. Increases the appropriation for the Arizona Congressional District 7 election to the Secretary of State from $7,500,000 to $8,000,000 and outlines county reimbursement requirements.
59. Increases the amount that the Arizona Department of Transportation must pay in FY 2026 to ADOA for its risk management payment from $15,981,300 to $21,233,800.
60. Appropriates $150,000 to the State Treasurer for a veterans' health innovations pilot program to conduct a pilot program with an emphasis on innovations that improve veterans' health that satisfy statutory requirements.
61. Decreases the appropriation to the Arizona Board of Regents for the Arizona Promise Program from $40,000,000 to $36,300,000.
62. Appropriates $2,000,000 from the state GF to the University of Arizona to be deposited into the On-Farm Irrigation Efficiency Fund.
63. Appropriates $50,000 from to the University of Arizona for medical mission scholarships.
64. Decreases the amount appropriated to the University of Arizona for the Yuma Center of Excellence for Desert Agriculture from $1,500,000 to $1,350,000.
65. Appropriates $1,000,000 to the Department of Veterans' Services for the Veterans' Mental Health Pilot Program and exempts the monies from lapsing.
66. Appropriates $5,000,000 to the Water Infrastructure Finance Authority (WIFA) for a Gilbert wells project.
67. Appropriates $3,000,000 to WIFA for Kingman water well drilling and rehabilitation.
68. Appropriates $250,000 to WIFA to be deposited into the Water Conservation Grant Fund.
69. Appropriates $15,000 from the Acupuncture Board of Examiners Fund in FY 2025 to the Acupuncture Board of Examiners for operating costs.
70. Appropriates $2,000,000 from the Special Education Fund in FY 2025 to ADE for statewide assessment expenses.
71. Appropriates $1,700,000 from the Business One-Stop subaccount in the Automation Projects Fund in FY 2026 to ADOA for the Business One-Stop Portal.
72. Appropriates $450,000 from the state GF in FY 2026 to the State Treasurer to distribute to the Prescott Valley Police Department.
73. Appropriates the following from the state GF in FY 2026 to the State Treasurer for local distribution:
a) $1,000,000 to the Mohave County Sheriff's Office;
b) $500,000 to the La Paz County Sheriff's Office;
c) $950,000 to the Yavapai County Sheriff's Office;
d) $500,000 to the Yavapai County Sheriff's Office for a satellite communications pilot program;
e) $1,000,000 to distribute to Yavapai County for costs related to the construction of a public safety facility in Peeples Valley;
f) $1,000,000 to distribute to the Yuma County Recorder for operating costs;
g) $3,000,000 to distribute to the City of Yuma to distribute to a nonprofit regional hospital that supports at least 400 beds;
h) $300,000 to distribute to the City of Peoria for capital improvements to city parks; and
i) $2,500,000 to distribute to the City of Winslow.
74. 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.
75. 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.
76. Specifies that the Maricopa County Board of Supervisors may not reduce the funding to the Maricopa County Recorder's office below the amount adopted in FY 2026 budget.
77. Requires the Maricopa County Recorder's to submit quarterly expenditure summaries to JLBC detailing the use of the monies appropriated.
78. 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.
79. Appropriates $2,000,000 from the state GF in FY 2026 to be deposited into the Arizona Arts Trust Fund.
80. Removes the $3,208,500 appropriation to ADOA for the Law Enforcement Records Management System and removes the distribution.
81. Removes the $2,291,600 appropriation to ADOA for the deposit into the Fire Incident Management Fund.
82. Decreases the appropriation to ACA for applied research centers from $2,000,000 to $500,000.
83. Removes the $300,000 appropriation to ACA for the Office of Defense Innovation.
84. Removes the $1,000,000 appropriation to DES for the Older Individuals who are Blind Program.
85. Removes the $500,000 appropriation to ADE for automated external defibrillator grants and distribution language.
86. Removes the $500,000 appropriation to ASDOHS for generative artificial intelligence security pilot.
87. Decreases the appropriation to the Department of Public Safety for Civil Air Patrol maintenance and operations from $250,000 to $144,000.
88. Lowers the appropriated FTEs for the SOS from 149.1 to 144.1.
89. Removes the $500,000 appropriation to the SOS for the Arizona America250 Commission and the exemption from lapsing.
90. Removes the $500,000 appropriation to the Office of Tourism for the Southern Arizona Sports, Tourism and Film Authority.
91. Removes the $400,000 appropriation to Arizona State University for the Center for American Institutions.
92. Removes the $1,400,000 appropriation to the Department of Veterans' Services and grant program requirements.
93. Removes the $500,000 appropriation for the Gila Valley Irrigation District project.
94. Removes the appropriations from the Peace Officer Training Equipment Fund to local law enforcement agencies for outlined equipment.
95. Increases the appropriation to DES for coordinated homeless services to $19,022,600.
96. Appropriates the following amount from the state GF in FY 2026 for awarding onetime correctional officer stipend:
a) $17,075,300 to ADCRR;
b) $3,767,200 to ADCRR private prison per diem special line item; and
c) $542,200 to ADJC.
97. 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.
98. 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.
99. 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.
100. Makes technical and conforming changes.
Senate Action
APPROP 6/17/25 DP 8-2-0-0
Prepared by Senate Research
June 16, 2025
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