ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

HB4141: capital outlay; 2026-2027; appropriations.

Sponsor: Representative Livingston, LD 28

Committee on Appropriations

Overview

Makes capital appropriations to state agencies in FY 2027.

History

The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations. Article IV, Section 20, Part 2, 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

Building Renewal (Sec. 2)

1. Appropriates the following amounts to the specified agencies in FY 2027 for the maintenance and repair of state buildings:

Arizona Department of Administration (ADOA)

$16,800,000 from the Capital Outlay Stabilization Fund (COSF);

requires ADOA to allocate these monies to state agencies for necessary building renewal;
reduces the appropriation from the COSF to the amount available in that fund if the monies in COSF are insufficient to fund the full appropriation;
allows the monies to be used for retrofitting facilities for space consolidation;

Arizona Department of Corrections (DOC)

$5,864,300 from the DOC Building Renewal Fund;

restricts DOC from spending these monies on personal services or overhead expenses related to managing the funded projects;

Arizona Game and Fish Department (AZGF)

$1,932,900 from the Game and Fish Fund;

Arizona State Lottery Commission (ASLC)

$237,800 from the State Lottery Fund;

Arizona Department of Transportation (ADOT)

$22,990,400 from the State Highway Fund (SHF); and

$394,900 from the State Aviation Fund (SAF).

ADOT Statewide Highway Construction (Sec. 3)

2. Appropriates $432,663,000 from the SHF in FY 2027 to plan and construct state highways, including the national system of interstate highways within this state, the state primary or secondary system, the county primary or secondary system and urban rural routes, to acquire rights-of-way and to provide for the cost of contracted field administration and field engineering on construction projects and debt service payments on bonds issued for highway construction.

3. Specifies that any balances and collections in the SHF that exceed the specific amounts appropriated in the General Appropriations Act and in the Capital Outlay Act for FY 2027 are appropriated to ADOT for the purposes of statewide highway construction.

4. Directs ADOT, by November 1, 2026, to report to the directors of the Joint Legislative Budget Committee (JLBC) and the Governor's Office of Strategic Planning and Budgeting (OSPB) on its actual prior year, estimated current year and upcoming budget year highway construction expenses from all fund sources, as prescribed.

5. Requires ADOT, by November 1, 2026, to report as outlined capital outlay information for FYs 2026, 2027 and 2028, to the JLBC directors and OSPB.

6. Tasks ADOT with reporting, by November 1, 2026, ADOT's estimated outstanding debt principal balance at the end of FY 2028 and the estimated debt service payment amount for each FYs 2028, 2029, 2030 and 2031, to the JLBC directors and OSPB, as prescribed.

7. Exempts the $432,663,000 appropriation from being subjected to a review by the Joint Committee on Capital Review (JCCR).

ADOT Airport Planning and Development (Sec. 6)

9. Appropriates $29,048,900 from the SAF in FY 2027 to ADOT to plan, construct, develop and improve state, county, city or town airports as determined by the State Transportation Board.

10. Stipulates that any balances and collections in the SAF that exceed the specific amounts appropriated in the General Appropriations Act and the Capital Outlay Act for FY 2027 are appropriated to ADOT in FY 2027 for the purposes of airport planning and development.

11. Requires ADOT, by December 31, 2026, to report to JLBC staff on the status of all aviation grant awards and distributions, delineating projects by individual airport and fiscal year, including any future year commitments.

12. Exempts the $29,048,900 appropriation from being subjected to a JCCR review.

Miscellaneous

13. Changes from FY 2028 to FY 2029 the appropriation of $25,000,000 from the State General Fund (GF) to the Department of Veteran's Services to construct and establish a veteran's home facility in the northwestern portion of this state. (Sec. 1)

14. Transfers the $2,500,000 reduction, made by Laws 2022 from the SHF to rehabilitate the pavement along U.S. Route 191 between Armory Road and East Safford, to the GF for the support and maintenance of state agencies. (Sec. 4)

14. Appropriates $26,300,000 from the GF in FY 2029 to the State Match Advantage for Rural Transportation Fund. (Sec. 5)

15. Permits ADOA to spend up to 5% of the amounts appropriated to ADOA in the Capital Outlay Act for FY 2027, excluding amounts to be distributed to nonstate agencies, for expenditures for project management of building renewal and capital projects. (Sec. 7)

16. Prohibits all other monies appropriated to ADOA in the Capital Outlay Act for FY 2027 from being spent for personal services or employee-related expenditures or for maintenance contracts on building components and equipment without JCCR review. (Sec. 7)

17. Restricts the monies appropriated in the Capital Outlay Act for FY 2027 from being spent for personal services or employee-related expenditures of state employees, excluding any services provided as part of the inmate construction program for correctional facilities. (Sec. 7)

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21. Initials LM HB 4141

22. 4/27/2026 Page 0 Appropriations

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