ARIZONA HOUSE OF REPRESENTATIVES 57th Legislature, 2nd Regular Session Majority Research Staff
	House: APPROP DP  11-7-0-0

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HB 4140: 2026-2027; state budget implementation.

Sponsor: Representative Livingston, LD 28

House Engrossed

Overview

Contains provisions relating to budgetary fund revisions needed to implement the FY 2027 budget.

History

The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations. Article IV, Section 20, Part 2 of the Constitution of Arizona requires the General Appropriations Act (feed bill) to contain only appropriations for the different state departments, state institutions, public schools and interest on public debt. Statutory changes necessary to reconcile the appropriations made in the feed bill and other changes are drafted into separate budget bills. These bills are prepared according to subject area.

Provisions

1. Requires, as session law, any unrestricted federal monies received by the state beginning July 1, 2026 through June 30, 2027 to be deposited in the state General Fund (GF) to pay essential government services. (Sec. 1)

2. Contains a retroactivity clause of July 1, 2026. (Sec. 1)

3. States, as session law, that the Legislature is not required to appropriate monies to or transfer monies from the Budget Stabilization Fund through FY 2028. (Sec. 2)

4. Asserts that for FY 2027, the Budget Stabilization Fund is not limited to 10% of the GF revenue and the State Treasurer may not transfer any surplus monies from the Budget Stabilization Fund to the GF. (Sec. 2)

5. Requires the Governor's budget submission to the Legislature for FY 2028 to include a full accounting of the monies available for expenditure from savings realized by the Government Efficiency and Reform Initiative. (Sec. 3)

6. Stipulates that the Governor's budget submission must include a:

a.  report that demonstrates how the Government Efficiency and Reform Initiative savings target of $100,000,000 will be accomplished; and

b. comprehensive list of the component initiatives, by savings amount, for each affected agency. (Sec. 3)

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Initials ML                 HB 4140

4/30/2026        Page 0 House Engrossed

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