 |
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
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).
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. Exempts the $1,000,000 appropriated to ADOA for health care interoperability grants from lapsing until June 30, 2028.
5. Requires ADOA to distribute the $3,208,500 appropriation from the Law Enforcement Records Management System as follows:
a) $343,000 to the Phoenix Police Department;
b) $215,800 to the Mesa Police Department;
c) $111,700 to the Chandler Police Department;
d) $125,900 to the Scottsdale Police Department;
e) $189,700 to the Tempe Police Department;
f) $51,800 to the Paradise Valley Police Department;
g) $64,900 to the Arizona State University Police Department;
h) $83,900 to the Peoria Police Department;
i) $65,900 to the Buckeye Police Department;
j) $55,000 to the El Mirage Police Department;
k) $50,700 to the Tolleson Police Department;
l) $69,200 to the Goodyear Police Department;
m) $73,600 to the Surprise Police Department;
n) $72,500 to the Avondale Police Department;
o) $349,500 to the Department of Public Safety;
p) $233,600 to the Tucson Police Department;
q) $67,000 to the Oro Valley Police Department;
r) $65,000 to the Marana Police Department;
s) $171,800 to the Pima County Sheriff's Office;
t) $64,900 to the University of Arizona Police Department;
u) $82,500 to the Flagstaff Police Department;
v) $47,800 to the Coconino County Sheriff's Office;
w) $52,800 to the Northern Arizona University Police Department; and
x) $500,000 to the Pinal County Sheriff's Office.
6. Requires ADOA to distribute the $2,291,600 appropriation from the Fire Incident Management Fund as follows:
a) $239,400 to the Sun City Fire District;
b) $333,200 to the Queen Creek Fire Department;
c) $1,402,900 to the Mesa Fire Department; and
d) $316,100 to the Tempe Fire Department.
7. Requires the appropriation from the Fire Incident Management Fund be used for hardware and software that meets outlined requirements.
Arizona Department of Agriculture (AZDA)
Ongoing General Fund (GF) and Other Fund (OF)
|
Summary of Changes |
Source |
Comments |
FY 2026 Changes |
|
Livestock Brand Inspectors |
GF |
5 FTEs |
533,000 |
Major Footnote Changes
8. Requires AZDA to fill the five FTEs with three livestock inspectors, one veterinary assistant and one veterinary technician.
Arizona Health Care Cost Containment System (AHCCCS)
Ongoing General Fund (GF) and Other Fund (OF)
|
Summary of Changes |
Source |
Comments |
FY 2026 Changes |
|
Formula Adjustments |
GF |
|
20,000,000 |
|
Eligibility Income Verification Data Charge |
GF |
|
2,200,000 |
|
Prescription Drug Rebate Fund |
GF |
FY 2026 |
(125,000,000) |
|
FY 2027 |
(100,000,000) |
||
|
Reforms |
GF |
FY 2026 |
(50,000,000) |
|
FY 2027 |
(85,000,000) |
||
|
Contracted Administrative Costs for Reforms |
GF |
|
11,500,000 |
|
Hospital Assessment Savings |
GF |
|
(100,000,000) |
|
Critical Access Hospitals |
GF |
|
4,300,000 |
Major Footnote Changes
9. Exempts the $5,000,000 appropriation from the state GF and the $9,384,300 appropriation from expenditure authority for graduate medical education from lapsing.
Attorney General (AG)
Major Footnote Changes
10. Requires monies appropriated for government accountability and special litigation be used only for enforcing statute relating to violations of state law by political subdivision.
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 |
|
23,200,000 |
|
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 |
|
Extended Foster Care Model |
GF |
|
6,400,000 |
|
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
11. Requires DCS to develop and maintain a webpage for a group home training program that each DCS-contracted group home employee must annually complete.
12. 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.
13. Exempts the $100,000 FY 2026 appropriation for a group home monitoring program from lapsing.
Arizona Commerce Authority (ACA)
Major Footnote Changes
14. Requires the ACA to distribute monies for wearable technology research to applied research centers located in Arizona that specialize in wearable technology, including hardware or software components or both.
15. 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.
16. Requires an applied research center or institute that receives monies to annually submit an expenditure and performance report to the ACA and ACA must transmit the report, by February 1 each year, to JLBC and OSPB.
17. Exempts the appropriation for wearable technology research from lapsing and the Procurement Code.
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)
Major Footnote Changes
18. 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.
19. Exempts the $650,000 FY 2024 appropriation for Inmate Dog Training from lapsing.
20. Specifies $4,083,300 appropriated to ADCRR for private prison per diem include a 5% salary increase for private prison correctional officers.
Arizona Schools for the Deaf and Blind
Major Footnote Changes
21. 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.
22. 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.
Department of Economic Security (DES)
Ongoing General Fund (GF) and Other Fund (OF)
|
Summary of Changes |
Source |
Comments |
FY 2026 Changes |
|
Formula Adjustments |
GF |
|
193,800,000 |
|
Formula Adjustments – Waiver Implementation Savings |
GF |
|
(33,800,000) |
|
Community Based Services – DD Higher Cost Clients |
GF |
|
14,800,000 |
|
Adult Protective Services |
GF |
|
3,700,000 |
|
Eligibility Income Verification Data Charge |
GF |
|
1,000,000 |
Major Footnote Changes
23. 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.
24. 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.
25. 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.
26. 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.
27. Requires DES to distribute all monies appropriated for the child development center to the Snowflake-Taylor child care development facility.
28. Requires DES to submit a report for JLBC review before transferring any monies in or out for adult protective services.
29. Requires DES to submit a report for JLBC review before transferring any monies for case management Medicaid, case management state only, cost effectiveness study client services and developmental disabilities administration except transfers from state match transfer from AHCCCS.
30. Requires DES to provide, by December 31, 2025, a report on the employment classifications of parent caregivers under the parents caregivers enrolled in the program that are classified as W-2 employees or classified as 1099 contractors to the President of the Senate, Speaker of the House of Representatives, chairpersons of the Senate and House of Representatives Appropriations Committee and the Director of JLBC.
31. Requires DES to provide, by December 31, 2025, a report on the utilization of covered services under the Developmental Disabilities Program by disability classification to the President of the Senate, Speaker of the House of Representatives, chairpersons of the Senate and House of Representatives Appropriations Committees and the Director of JLBC.
Arizona Department of Education
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2026 Changes |
|
Formula – Truth in Taxation |
GF |
|
(3,500,000) |
|
Payment Process Improvement |
GF |
12 FTEs |
2,000,000 |
|
School Meals Funding |
GF |
|
3,800,000 |
Major Footnote Changes
32. 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.
33. 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.
34. 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.
35. Exempts the $2,500,000 appropriation to ADE for the Rural Arizona School Nurse Access Program from lapsing.
36. Requires the $500,000 FY 2026 appropriation for automated external defibrillator grants to be distributed to public schools that provide instruction in grades 9-12 and sponsor an athletic team or sports program to purchase or maintain automated external defibrillators.
37. Requires ADE to prioritize schools with FRPL eligibility of 50 percent or more when selecting grant recipients for automated external defibrillators.
38. Exempts the appropriation for automated external defibrillators from lapsing.
39. Specifies out of ADE's operating lump sum includes an increase of $2,000,000 from the state GF in FY 2026 for 12 FTEs to review purchases for enrollees in the Arizona Empowerment Scholarship Account Program.
40. Allows ADE to allocate the $2,000,000 increase to additional contracted staff or services for the administration of the Arizona Empowerment Scholarship Account Program.
41. Specifies the $7,903,200 appropriation for adult education includes:
a) $1,000,000 to the Continuing High School and Workforce Training Program;
b) $1,000,000 to the Adult Workforce Diploma Program Fund; and
c) $1,000,000 to the Community College Adult Education Workforce Development Program Fund.
Department of Emergency and Military Affairs
Major Footnote Changes
42. 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.
Department of Environmental Quality
Major Footnote Changes
43. 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.
Arizona Exposition and State Fair Board (State Fair Board)
Major Footnote Changes
44. Exempts the $3,771,400 FY 2025 appropriation from lapsing until June 30, 2026.
Department of Forestry and Fire Management (DFFM)
Major Footnote Changes
45. Exempts the $27,110,300 FY 2026 appropriation for wildfire mitigation from lapsing.
46. Exempts the FY 2023 $65,000,000 appropriation for wildfire emergency response from lapsing until June 30, 2028.
Department of Health Services
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2026 Changes |
|
Arizona State Hospital – Increase ASH Sexually Violent Persons |
GF |
|
1,500,000 |
|
ASH – Operating Costs |
GF |
|
1,800,000 |
|
Healthcare Facilities Licensing Increase – Cost Shift |
GF |
|
(1,600,000) |
Major Footnote Changes
47. Exempts the $750,000 FY 2026 appropriation for a dementia awareness campaign from lapsing until June 30, 2027.
48. 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.
49. 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.
50. 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;
c) the ability to facilitate pioneering research and innovation in diagnosis and treatment of neurological conditions; and
d) Demonstrated to DHS that the entity has a commitment of matching monies of at least $5,000,000.
Arizona Historical Society
Major Footnote Changes
51. Appropriates $500,000 from the state GF to the Prescott Historical Society to restore the Territorial Governor's Mansion.
Judiciary
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2026 Changes |
|
Supreme Court – Child and Family Representation Program |
GF |
1 FTE |
200,000 |
|
Supreme Court – Complaints Investigator |
GF |
1 FTE |
145,000 |
|
Superior Court – Mohave County New Judge |
GF |
|
200,000 |
Legislature
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2026 Changes |
|
Auditor General – County Treasurer Financial Compliance Reviews |
GF |
|
1,200,000 |
|
Legislative Council – Increase FTEs |
|
7 FTEs |
|
Major Footnote Changes
52. Specifies the Auditor General's lump sum operation of $27,922,700 includes $1,200,000 for procedural reviews of county treasurer offices.
53. Specifies the Legislative Council lump sum operation of $10,275,700 includes $1,000,000 to be used for priority-based budgeting software that analyzes state government spending and includes budget development and reporting capabilities.
Arizona State Lottery Commission
Major Footnote Changes
54. 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.
55. State Natural Resource Conservation Board
Major Footnote Changes
56. 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.
57. Exempts the $250,000 appropriation to the State Natural Resource Conservation Board for groundwater recharge facilities from lapsing.
Arizona State Parks Board (ASPB)
Major Footnote Changes
58. Exempts $500,000 of the $10,000,000 FY 2024 appropriation to ASPB for the Arizona Veterans Memorial State Park from lapsing.
59. 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.
State Board of Podiatry Examiners
Major Footnote Changes
60. 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.
Major Footnote Changes
61. 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.
62. Exempts the $8,700,000 appropriation to DPS for vehicle replacement from lapsing until June 30, 2027.
63. Requires DPS to submit a report, by October 1, 2025, containing a list of district offices, including descriptions on the status of each office and a ten-year plan regarding maintenance and replacement needs of the offices to the Governor, President of the Senate, Speaker of the House of Representatives, OSPB and JLBC.
Secretary of State
Major Footnote Changes
64. Removes the ability for the SOS to spend monies on legal expenses for conflict counsel.
65. Prohibits the SOS from placing restrictions or conditions on federal monies allocated to counties relating to HAVA monies.
66. Requires monies in the Address Confidentiality Program Fund be used for a deposit in the Address Confidentiality Program Fund.
67. Specifies the appropriation made for the Arizona America250 Commission is to the SOS to support the Arizona America250 Commission and prohibits the SOS from using public or private monies:
a) to register voters or coordinate with non-governmental organizations that register voters;
b) to hire independent contractors;
c) for litigation or the retention of outside counsel;
d) to distribute to any non-governmental organization or used for the benefit of such an organization;
e) for communications with the general public which contain the SOS's name regardless of the form of the communication; and
f) in any manner in any way related to "misinformation" or "disinformation".
68. Prohibits any monies appropriated to the SOS to support Arizona America250 be used in a manner in any way related to voter registration or information technology.
69. Requires the SOS, before expending any such funds for Arizona America250, to submit an expenditure plan for JLBC approval.
70. Exempts $500,000, rather than the amount appropriated for the Arizona America250 Commission, from lapsing until December 31, 2026.
71. Specifies that the non-HAVA grant monies expenditure authority line item includes all federal grants received by the SOS directly from the federal government and any federal grant monies distributed or allocated to the SOS by the Governor's Office or another state agency but does not include any monies received from federal HAVA grants.
72. Requires the SOS, before spending excess monies, to submit an expenditure plan for review by JLBC.
73. Requires the SOS, for the monies in the non-HAVA grant monies expenditure authority, no more than 10 days after the end of each calendar quarter to report quarterly to JLBC on the receipt of federal grant monies by grant source and all quarterly expenditures of non-HAVA federal grant monies by grant source.
Arizona Department of Transportation (ADOT)
Major Footnote Changes
74. 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.
Major Footnote Changes
75. 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.
76. Specifies that Arizona State University lump sum includes $400,000 allocation to the Center for American Institutions and the Center for American Institutions have sole authority to:
a) approve or deny all faculty positions hired by the center;
b) offer any public programming or class or establish a course of study, including a major, minor, certificate or graduate program into the permanent academic catalog, without consent, permission, approval or endorsement from any other academic unit, school or department; and
c) offer and independently designate classes that fulfill the academic requirements of the university's honors college.
Arizona Department of Veterans' Services (ADVS)
Major Footnote Changes
77. Specifies the $1,225,000 appropriation to ADVS for Pinal County veterans center be distributed to a nonprofit that is located in Pinal County that provides services to veterans with in-person facility and mobile outreach center and has previously received a grant from ADVS.
Major Footnote Changes
78. Specifies out of the $1,500,000 appropriation to ADWR for Colorado River legal expenses includes $1,000,000 from the Long-Term Water Augmentation Fund for the sole purpose of initiating, defending or participating in litigation against any upper basin state, any party domiciled in an upper basin state or the United States relating to Arizona's apportionment of Colorado River water or any other rights Arizona has regarding the Colorado River.
FY 2025 Supplemental Appropriations and Adjustments
General Fund (GF) and Other Fund (OF)
|
Agency |
Fund |
Amount |
|
AHCCCS – Eligibility Income Verification |
GF |
1,832,000 |
|
AHCCCS – Formula |
GF |
(106,051,600) |
|
ADE – Basic State Aid Formula |
GF |
206,206,000 |
|
ADE – Statewide Assessment Expenses |
GF |
2,000,000 |
|
DES – Eligibility Income Verification |
GF |
700,000 |
|
DES - Formula |
GF |
(18,200,000) |
|
DFFM – Debt Owed to Federal Government for Wildfire Suppression Activities (exempt from lapsing) |
GF |
11,180,000 |
|
State Treasurer – Justice of the Peace Salary Adjustment |
GF |
138,600 |
|
ADVS – Operating Costs |
GF |
1,000,000 |
|
DHS – Arizona State Hospital Operating Costs |
GF |
3,328,200 |
79. 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.
80. 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)
81. 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.
82. Requires the $30,000,000 FY 2025 appropriation to be used to supplement and not supplant any monies allocated by the federal government.
83. Requires DFFM to seek federal reimbursement as appropriate for expenditures made from the appropriation and any reimbursements must be credited to the appropriation.
84. Requires DFFM, before spending any monies on capital projects, to submit its expenditure plans for review by the Joint Committee on Capital Review.
85. 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.
86. Requires each report to include information regarding the total expenditures and reimbursements for each allowable expense.
87. Exempts the $30,000,000 FY 2025 appropriation from lapsing.
Secretary of State (SOS)
88. Appropriates $7,300,000 from the state GF in FY 2025 to the Secretary of State (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.
89. Appropriates $212,000 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.
90. 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.
91. 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.
92. 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.
93. Requires the SOS, on approval of a claim, to submit the claim to ADOA for payment to the county from the $7,300,000 appropriation.
94. 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.
95. Requires the SOS, by March 1, 2026, to submit a report to JLBC and OSPB on the reimbursements made.
96. Exempts the appropriations from lapsing and reverts all unexpended and unencumbered monies to the state GF on December 31, 2025.
Additional FY 2026 Appropriations and Adjustments
Arizona Department of Administration (ADOA)
97. 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.
98. Appropriates $500,000 from the state GF in FY 2026 to ADOA for distribution to Graham County to maintain essential county services.
99. 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 to supplement the cost of the Elected Officials' Retirement Plan (EORP).
100. Prohibits the counties from using the distributed FY 2026 $3,000,000 appropriation for anything other than employer contributions to EORP.
101. Appropriates the following amounts in FY 2026 from the APF subaccounts to ADOA for the following automation and information technology projects:
|
Project |
Subaccount |
Amount |
|
Integrated Tax System Modernization Project |
Arizona Department of Revenue (ADOR) Subaccount |
19,256,800 |
|
Human Resources Information System |
HRIS Subaccount |
5,941,700 |
|
Migrate State Websites to New Software Platform |
ADOA Subaccount |
1,750,000 |
|
A to Z Arizona Web Portal |
ADOA Subaccount |
3,370,000 |
|
State Web Portal Upgrades |
ADOA Subaccount |
375,000 |
|
Medicaid Enterprise System Mainframe |
Medicaid Enterprise System Modernization Subaccount |
17,100,000 |
|
Business One-Stop Portal |
Business One-Stop Subaccount |
1,700,000 |
102. 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.
103. Exempts the FY 2026 appropriations from the APF from lapsing until June 30, 2027.
State Treasurer
104. Appropriates the following amounts from the state GF in FY 2026 to the State Treasurer to distribute to the following entities:
a) $1,000,000 to the city of Bullhead City for Hancock Road Improvements;
b) $1,000,000 to the city of Bullhead City for the installation of a new water transmission line;
c) $1,000,000 to Mohave County for Mountain View Road improvements;
d) $850,000 to Yuma County for the disposal of excess waste tires;
e) $500,000 to distribute to the Yavapai County Sheriff's Office for a satellite communications pilot program;
f) $50,000 to the Maricopa County Recorder's Office to implement and enforce registration rolls related statute;
g) $500,000 to the Prescott regional airport for maintenance and operations expenses;
h) $3,500,000 to the Prescott regional airport for infrastructure supporting firefighting aircraft;
i) $500,000 to Mohave County for improvements to the Meadview south cove launch ramp;
j) $1,000,000 to the city of Kingman for Eastern Street infrastructure improvements;
k) $250,000 to distribute as reimbursements to counties for the cost of implementing the federal Safeguarding Voter Eligibility Act;
l) $500,000 to Mohave County to distribute to the Horizon Six District; and
m) $500,000 to the city of Peoria for capital improvements to city parks.
105. Appropriates $760,000 from the state GF in FY 2026 to the State Treasurer to distribute to Sierra Vista for the purpose of attaining a part 433 reentry license through the Federal Aviation Administration.
106. Prohibits the State Treasurer from distributing the monies until Sierra Vista has demonstrated the city has matching monies of at least $760,000.
107. Appropriates $200,000 from the state GF in FY 2026 to the State Treasurer to the Mohave County Recorder's Office to purchase anti-fraud ballot paper for the purpose of administering the 2026 primary and general election.
108. Requires the Mohave County Recorder's Office to submit a report, by January 1, 2027, on the use of $200,000 to the President of the Senate, the Speaker of the House of Representatives and the Governor.
109. Appropriates $1,700,000 from the Border Security Fund in FY 2026 to the State Treasurer for distribution to Maricopa County for improvements to the county jail kitchen and laundry facilities.
110. Appropriates $5,000,000 from the Long-Term Water Augmentation Fund to the State Treasurer for distribution to the town of Gilbert for the rehabilitation and drilling of new water wells.
111. Appropriates the following amounts from the Border Security Fund in FY 2026 to the State Treasurer to distribute to the following entities:
a) $500,000 to the Apache Count Sheriff's Office;
b) $1,000,000 to the Cochise County Sheriff's Office;
c) $500,000 to the Coconino County Sheriff's Office;
d) $500,000 to Gila County Sheriff's Office;
e) $500,000 to the Graham County Sheriff's Office;
f) $250,000 to the Greenlee County Sheriff's Office;
g) $500,000 to the La Paz County Sheriff's Office;
h) $1,000,000 to the Mohave County Sheriff's Office;
i) $500,000 to the Navajo County Sheriff's Office; and
j) $1,025,000 to the Pinal County Sheriff's Office.
112. Requires the county sheriff offices that receive monies from the Border Security Fund collaborate with local law enforcement agencies to submit a report, by September 30, 2025, to the Director of JLBC detailing the expected amount and purpose of expenditures from each distribution.
113. Appropriates $1,000,000 from the state GF in FY 2026 to the Yuma County Recorder.
114. Specifies the $1,000,000 appropriation to the Yuma County Recorder is at the sole discretion of the Yuma County Recorder and prohibits the Yuma County Board of Supervisors from overseeing, controlling, directing or otherwise limit the expenditure of the monies.
115. Requires the Yuma County Recorder to use a portion of the monies to hire information technology (IT) staff and to possess, maintain and control all IT equipment that houses or contains data related to the statutory duties of the county recorder.
116. Requires the Yuma County Recorder to establish and control all access credentials for such equipment and specifies access is not subject to oversight or limitation by the Yuma County Board of Supervisors.
117. Authorizes the Yuma County Recorder to have sole hiring authority for all personnel employed using the appropriation.
118. Requires the Yuma County Recorder and the Yuma County Board of Supervisors to share full access to the facilities located at the Yuma County counter center.
119. Requires any facility or part of where a task is delegated to the county recorder by law or agreement be under the control of the county recorder.
120. Specifies neither party may restrict the other party's full access to these facilities and the terms apply to any additional or replacement facilities used for election administration purposes.
121. Appropriates $4,000,000 from the state General Fund in FY 2026 to the Maricopa County Recorder.
122. Specifies the $4,000,000 appropriation to the Maricopa County Recorder is at the sole discretion of the Maricopa County Recorder and prohibits the Maricopa County Board of Supervisors from overseeing, controlling, directing or otherwise limiting the expenditure of the monies.
123. Requires the Maricopa County Recorder to use a portion of the monies to hire information technology (IT) staff and to possess, maintain and control all IT equipment that houses or contains data related to the statutory duties of the county recorder.
124. Requires the Maricopa County Recorder to establish and control all access credentials for such equipment and access is not subject to oversight or limitation by the Maricopa County Board of Supervisors.
125. Authorizes the Maricopa County Recorder to have sole hiring authority for all personnel employed using the appropriation.
126. Requires the Maricopa County Recorder and the Maricopa County Board of Supervisors to share full access to the facilities located at the Maricopa County tabulation and election center, 420 South 3rd Avenue and the 301 administrative building.
127. Requires any facility or part of where a task is delegated to the county recorder by law or agreement be under the control of the county recorder.
128. Specifies that neither party may restrict the other party's full access to these facilities and the terms apply to any additional or replacement facilities used for election administration purposes.
Peace Officer Training Equipment Fund
129. Appropriates the following amounts from the Peace Officer Training Equipment Fund in FY 2026 to the State Treasurer to distribute to the following recipients for public safety training simulators:
a) $328,000 to the Flagstaff Police Department;
b) $660,000 to the Glendale Police Department;
c) $328,000 to the Yavapai County Sheriff's Office; and
d) $400,000 to DPS for simulators at Santa Cruz County and Arizona State University.
130. Declares the Legislature's intent that the training simulators be used to teach de-escalation tactics, including dealing with persons that are deaf and the hard of hearing, persons with autism and persons with mental illness.
131. Appropriates the following amounts from the Peace Officer Training Equipment Fund in FY 2026 to the State Treasurer to distribute to the following recipients for pepper ball equipment:
a) $53,645 to the Navajo County Sheriff's Office;
b) $20,850 to the Page Police Department;
c) $24,624 to the Benson Police Department;
d) $121,434, to the Yuma Police Department;
e) $103,487 to the Queen Creek Police Department;
f) $30,337 to the Maricopa Police Department;
g) $200,000 to the Mesa Police Department;
h) $68,035 to the Apache County Sheriff's Office;
i) $7,495 to the Show Low Police Department;
j) $18,920 to the Pinetop-Lakeside Police Department;
k) $25,412 to the Tempe Police Department;
l) $34,323 to the Douglas Police Department;
m) $22,474 to the Nogales Police Department;
n) $12,735 to the Coconino County Sheriff's Office;
o) $33,311 to the Clarkdale Police Department;
p) $87,651 to the Bullhead City Police Department;
q) $39,049 to the La Paz County Sheriff Department;
r) $97,319 to the Flagstaff Police Department;
s) $32,866 to the St. Johns Police Department;
t) $39,574 to the Tonto Apache Police Department;
u) $54,600 to the Arizona State University Police Department;
v) $36,224 to the Yuma County Sheriff's Office;
w) $74,828 to the Goodyear Police Department;
x) $18,758 to the San Luis Police Department;
y) $63,080 to the Pinal County Sheriff's Office;
z) $13,807 to the Graham County Sheriff's Office;
aa) $16,562 to the Kingman Police Department;
bb) $19,118 to the Huachuca City Police Department; and
cc) $52,879 to the Surprise Police Department.
132. Appropriates the following amounts from the Peace Officer Training Equipment Fund in FY 2026 to the following recipients for license plate readers:
a) $21,000 to the City of Apache Junction;
b) $30,000 to the Town of Prescott Valley;
c) $45,000 to the City of Surprise;
d) $115,000 to Coconino County;
e) $60,000 to Yavapai County;
f) $12,000 to the City of Cottonwood;
g) $30,000 to the City of Prescott;
h) $100,000 to the Pinal County Attorney's Office; and
i) $9,000 to the City of San Luis.
133. Exempts the appropriations from the Peace Officer Training Equipment Fund from lapsing.
134. Appropriates $5,000,000 from the state GF in FY 2026 to the State Treasurer to distribute to a nonprofit organization that is designated as an international dark sky discovery center and that is focused on dark sky preservation in Arizona.
135. Requires the nonprofit organization to use these monies for the public purpose of providing educational programming to Arizona students and must offer its capabilities to university students for research purposes.
136. Requires the State Treasurer to completely distribute these monies to the nonprofit organization by July 15, 2025.
137. Appropriates $750,000 from the state GF in FY 2026 to the State Treasurer to distribute to Yuma County to distribute to a family advocacy center in Yuma County that has provided support for victims of domestic violence, sexual assault, child abuse and elderly abuse for at least 25 years.
138. Appropriates $10,000,000 from the Border Security Fund in FY 2026 to the State Treasurer to be distributed as follows:
a) $2,000,000 to Yavapai County to establish a statewide database to accommodate additional counties participating in coordinated reentry planning services programs;
b) $100,000 to a professional association in Arizona representing Arizona county sheriffs to contract with a state university to conduct a statewide evaluation of county coordinated reentry planning services programs; and
c) Coconino, Mohave, Navajo, Pinal and Yavapai counties, $1,580,000 each to establish or operate a coordinated reentry planning services program.
139. Appropriates $10,000,000 from the Border Security Fund in FY 2027 to the State Treasurer to be distributed as follows:
a) $100,000 to a professional association in Arizona representing Arizona county sheriffs to contract with a state university to conduct a statewide evaluation of county coordinated reentry planning services programs; and
b) to Coconino, Mohave, Navajo, Pinal and Yavapai counties, $1,980,000 each to establish or operate a coordinated reentry planning services program.
140. Appropriates $10,000,000 from the Border Security Fund in FY 2027 to the State Treasurer to be distributed as follows:
a) $100,000 to a professional association in Arizona representing Arizona county sheriffs to contract with a state university to conduct a statewide evaluation of county coordinated reentry planning services programs; and
b) to Coconino, Mohave, Navajo, Pinal and Yavapai counties, $1,980,000 each to establish or operate a coordinated reentry planning services program.
141. Requires the professional association in Arizona that represents the county sheriffs that receives monies for coordinated reentry programs submit a report, by December 1, 2026, 2027 and 2028, on the outcomes the programs to the President of the Senate, the Speaker of the House of Representatives and JLBC.
142. 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.
143. Requires DES, before using the BSF monies, to notify the Director of JLBC and the Director of OSPB.
144. 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.
145. Prohibits the BSF appropriation from being used for additional programmatic expenditures.
Rodeo
146. 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.
147. 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
149. 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
150. 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.
151. 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.
152. Transfers $2,000,000 from vehicle license tax to the state GF and allows the deposit to be made in even monthly installments.
153. Transfers $2,000,000 from the Residential Contractors' Recovery Fund to the Registrar of Contractors Fund in FY 2026.
154. 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 |
|
Integrated Tax System Modernization |
State GF ADOR Project Fund |
ADOR Subaccount |
11,725,500 7,531,300 |
|
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 Medicaid Enterprise System |
GF |
Medicaid Enterprise System Modernization |
1,800,000 |
|
Business One-Stop |
Information Technology Fund |
Business One-Stop |
1,700,000 |
|
Medicaid Enterprise System Mainframe |
AHCCCS Fund |
Medicaid Enterprise System Modernization Subaccount |
15,300,000 |
Payment Deferrals
155. 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.
156. 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.
157. 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.
158. Prohibits the AG from imposing any conditions on the transfer of the monies in the ADCRR Opioid Remediation Fund.
159. 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.
160. Exempts the AG monies from lapsing.
161. 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.
162. Requires ADE to make the deferral by reducing the apportionment of state aid for each month in the fiscal year by the same amount.
163. 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.
164. 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 |
140,000,000 |
40,000,000 |
180,000,000 |
|
State Fleet Rate Reduction |
(3,299,000) |
(1,453,600) |
(4,752,600) |
|
Agency Rent Adjustment |
842,300 |
61,300 |
903,600 |
|
Salary Increase Adjustments |
28,075,000 |
224,700 |
28,299,700 |
|
Accounting System Charge |
(200,300) |
(266,000) |
(466,300) |
|
Agency Retirement Adjustments |
(3,152,900) |
(2,907,900) |
(6,060,800) |
165. Prescribes statewide adjustments procedures and instructions.
166. Outlines the FY 2026 individual agency charges totaling $1,798,500 for general agency counsel provided by the AG.
FY 2027 Appropriations
167. Appropriates $94,137,900 from the state GF in FY 2027 for a onetime deposit in the New School Facilities Fund.
168. 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
169. 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.
170. 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
171. 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.
172. Contains other reporting requirements.
174. Becomes effective on the signature of the Governor.
House Action
APPROP 6/12/25 DP 11-7-0-0
3rd Read 6/13/25 31-0-29
Prepared by Senate Research
June 25, 2025
LMM/ci