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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: APPROP DP 15-1-2-0-0 |
HB 4154: general appropriations act; 2026-2027
Sponsor: Representative Livingston, LD 28
House Engrossed
Overview
Appropriates monies for the operation of the state government 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 of the Constitution of Arizona requires the General Appropriations Act (feed bill) to contain only appropriations for the different state departments, state institutions, public schools and interest on public debt. Statutory changes necessary to reconcile the appropriations made in the feed bill and other changes are drafted into separate budget bills prepared according to subject area.
Provisions
The tables below indicate state General Fund (GF) and other fund (OF) changes for appropriated state agencies in FY 2027 stated in terms of changes to the FY 2027 JLBC Baseline.
Major footnotes are stated in terms of changes to the FY 2026 General Appropriations Act.
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Summary of Changes |
Fund |
Comments |
FY 2027 Changes to JLBC Baseline |
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Acupuncture Board of Examiners (ADOA) (Sec. 4) |
1. Allows the Board to use up to $50,000 of the lump sum appropriation to pay outstanding Central Service Bureau invoices.
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Department of Administration (ADOA) (Sec. 5) |
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2. Requires that ADOA distribute $377,100 for county support for corrections officer employer contributions in FY 2027 and specifies the amounts to be distributed to each county.
3. Specifies that ADOA shall distribute, by July 15, 2026, the Gila County disaster relief FY 2027 appropriation to the following political subdivisions:
a. $2.5 million to the Town of Miami;
b. $2.5 million to the City of Globe;
c. $5 million to Gila County.
4. Requires ADOA to distribute the county sheriff support FY 2027 appropriation by July 31, 2026 and specifies in the amounts to be distributed to sheriff's offices.
5. Specifies the qualifications for the recipient of the ADOA distribution to a food bank for capital needs.
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ADOA – School Facilities Division (SFD) (Sec. 6) |
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Building Renewal Grant Funding |
GF |
Onetime |
$183,300,000 |
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Building Renewal Grants Administration Costs |
GF |
Onetime |
$750,000 |
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New School Construction Projects |
GF |
Onetime prior year project savings |
$(26,100,000) |
7. Allows the SFD to use the unencumbered balance of $27,318,100 in the New School Facilities Fund for facilities and land costs for school districts that received final approval by December 15, 2025.
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ADOA – Automation Projects (Sec. 7) |
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AHCCCS Mainframe Replacement |
OF |
Onetime |
$12,940,000 |
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DOR Mainframe Migration |
OF |
Onetime |
$1,425,000 |
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Medical Board Website Modernization |
OF |
Onetime |
$150,000 |
8. Exempts the $19,456,800 FY 2025 appropriation for DOR's IT system modernization project from lapsing through FY 2027.
9. Exempts the $3,396,000 FY 2025 appropriation to replace the Medicaid enterprise systems mainframe from lapsing through FY 2027.
10. Exempts the $494,500 FY 2024 appropriation to replace the concealed weapons tracking system from lapsing through FY 2027.
11. Exempts the FY 2024 appropriations from the Health and Human Services Information System subaccounts from lapsing through FY 2027.
12. Exempts the $7,000,000 FY 2024 appropriation to the Corporation Commission from lapsing.
13. Allows the $7,000,000 FY 2024 appropriation to the Corporation Commission to be used for post-launch expenses of the online records and filing system and exempts expenditures from this allocation from review by JLBC.
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Arizona Department of Agriculture (Sec. 9) |
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Licensing IT System Maintenance |
OF |
Onetime |
$500,000 |
14. Allows the Department to fill an additional 2 FTE positions and spend $250,000 from the Commercial Feed Fund.
15. Specifies that of the 2 FTE positions, one shall be used for expenses associated with the screwworm response.
16. Allows the Department to conduct inspections as part of the screwworm response at the border if the border opens for live cattle imports and allows the state veterinarian to oversee the response.
17. Specifies that of the 2 FTE positions, one shall be used for expenses related to a zoonotic disease or any other emerging animal disease response.
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Arizona Health Care Cost Containment System (AHCCCS) (Sec. 10) |
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Formula |
GF |
Ongoing |
$(42,000,000) |
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H.R. 1 Eligibility |
GF |
Onetime |
$10,200,000 |
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Critical Access Hospitals |
GF |
Onetime |
$4,300,000 |
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Behavioral Health Crisis 9-8-8 Hotline |
GF |
Onetime |
$4,000,000 |
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Urban Traditional Healing |
GF |
Onetime |
$400,000 |
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Office of Inspector General – Fraud Enforcement |
GF |
Ongoing |
$400,000 |
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Contracted Legal Costs – Sober Living Homes |
OF |
Onetime |
$1,375,000 |
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Enhanced Residential Treatment |
OF |
Onetime; FY 2027-FY 2029 |
$2,739,600 |
18. Exempts the $10,200,000 FY 2027 appropriation for H.R. 1 eligibility from lapsing through FY 2028.
19. Specifies that of the H.R. 1 eligibility, $4,000,000 shall be used for information technology system upgrades and exempts the upgrades from review by the Information Technology Authorization Committee.
20. Exempts the $2,739,600 FY 2027 appropriation for enhanced residential treatment from lapsing.
21. Extends the lapsing date for the FY 2025 graduate medical education appropriation to December 31, 2026.
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Arts Commission (Sec. 11) |
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Arts Trust Fund Deposit |
GF |
Onetime |
$2,000,000 |
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Attorney General (Sec. 13) |
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Coordinated Re-Entry |
GF and OF |
Onetime |
$17,000,000 |
22. Requires the $17,000,000 appropriation for Coordinated Re-Entry Planning Services Grants be distributed as follows: $2,000,000 to each of Coconino, Maricopa, Mohave, Navajo, Pima, Pinal, Yavapai and La Paz counties, and $1,000,000 for a grant to establish a statewide coordinated reentry database.
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Barbering and Cosmetology Board (Sec. 14) |
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Additional Staffing |
OF |
Ongoing |
$235,000 |
23. Requires that the Board use $235,000 of the lump sum appropriation to fill three FTE positions, including one licensing specialist, one customer service representative and one quality assurance specialist.
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Department of Child Safety (DCS) (Sec. 17) |
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Congregate Care |
GF |
Onetime |
$36,900,000 |
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Extended Foster Care Comprehensive Service Model |
GF |
Onetime |
$8,200,000 |
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Extended Foster Care Caseload Increase |
GF |
Onetime |
$1,000,000 |
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Guardian IT System |
GF |
Onetime |
$9,800,000 |
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Federal Match Rate Adjustment |
GF |
Onetime |
$1,900,000 |
24. Allows for DCS to transfer monies between out-of-home placement line items without seeking JLBC review.
25. Exempts the $43,787,500 FY 2025 supplemental Expenditure Authority appropriation from lapsing until June 30, 2027.
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State Board of Chiropractic Examiners (Sec. 18) |
26. Requires the Board, by September 1, 2026, to provide a report the JLBC and OSPB detailing the Board's proposal to resolve the imbalance between ongoing revenues and ongoing expenditures.
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Community Colleges (Sec. 20) |
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GF |
Ongoing |
$700,000 |
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Corporation Commission (Sec. 22) |
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Shift Railroad Safety Funding from GF to Securities Fund |
GF |
Ongoing |
$(792,700) |
27. Adds 0.1 FTE to the Corporation Commission.
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Department of Corrections (DOC) (Sec. 23) |
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4% Correctional Officer Stipend |
GF |
Ongoing |
$24,000,000 |
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Shift OF to GF for Operating Needs |
GF |
Ongoing |
$15,900,000 |
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Non-Contract Medication |
GF |
Ongoing; opioid backfill |
$6,700,000 |
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Health Care Federal Injunction Costs |
GF |
Ongoing |
$55,800,000 |
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Shift OF to Capital Uses and Backfill with GF |
GF |
Ongoing |
$10,000,000 |
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Continue Private Prison One-Time Funding |
GF |
Ongoing beginning in FY 2028 |
$54,300,000 |
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Body Worn Cameras |
GF |
Onetime |
$3,500,000 |
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Braille Transcription Program |
OF |
Onetime |
$300,000 |
28. Moves Overtime and Compensatory Time line items to the Operating Budget.
29. Moves Non-Contracted Medication and Injunction-Related IT line item to Jensen Injunction Compliance line item.
30. Stipulates that $3,7676,200 of the 4% correctional officer stipend appropriation shall be used to award a 4% correctional officer stipend to officers employed in a private prison.
31. Requires DOC to increase contracted rates in FY 2027 to provide an amount sufficient for a 4% salary increase to each correctional officer employed in a private prison.
32. Stipulates that the DOC lump sum appropriation includes funding to convert the onetime stipend for corrections officers equal to four percent of the annual salary as appropriated in FY 2026 into a four percent annual salary increase in FY 2027.
33. Exempts the FY 2027 appropriation for body worn cameras from review by the Information Technology Authorization Committee.
34. Stipulates that of the amount appropriated in the Jensen Injunction Compliance line item, $45,097,700 shall be distributed to a contracted health care provider contingent on execution of a signed amendment to the current contract, including the following:
a. increases to staffing levels in accordance with DOC directives;
b. quarterly reporting requirements from the vendor on staffing levels and progress towards staffing goals;
c. a quarterly distribution schedule based on implementation of goals;
d. automatic sanctioning or fines associated with failure to implement goals.
35. Exempts the FY 2026 Arizona Correctional Information System Upgrades appropriation from lapsing.
36. Allows DOC to use up to $10,900,000 of its FY 2026 operating lump sum appropriation in FY 2027 for compensatory or holiday liability accruals.
37. Allows DOC to prioritize inmates closest to reentry for participation in the $300,000 braille transcription program appropriation.
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Arizona Criminal Justice Commission (ACJC) (Sec. 24) |
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Victims of Crime Act Federal Backfill |
GF |
Ongoing |
$2,250,000 |
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Law Enforcement Crime Victim Notification Fund |
OF |
Onetime |
$2,594,800 |
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Operating Costs |
OF |
Ongoing |
$32,500 |
38. Specifies that the $600,000 FY 2027 appropriation for the major incident regional law enforcement task force shall be distributed evenly to the sheriff's offices of the original five major incident division task forces located in Cochise, Coconino, Navajo, Pinal, and Yuma Counties.
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Arizona State Schools for the Deaf and the Blind (ASDB) (Sec. 25) |
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Supplemental Early Childhood Therapies |
OF |
Onetime |
$50,000 |
39. Requires, on or before September 1, 2026, ASDB to report to the Joint Legislative Budget Committee detailing the school's operations and budgetary changes since FY 2026.
40. Requires that monies appropriated in the Supplemental Early Childhood Services line item be used to continue the current contracts for supplemental early childhood services to eligible infants and toddlers and their families.
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Department of Economic Security (DES) (Sec. 29) |
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|
GF |
Ongoing |
$(42,400,000) |
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Legacy Mainframe Systems Contractual Costs |
GF |
Onetime |
$6,100,000 |
|
Summer Food Benefits (SUN Bucks) |
GF |
Onetime |
$1,761,800 |
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SNAP Error Rate Reduction Workload |
GF |
Onetime |
$10,800,000 |
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SNAP Administration Match Rate Adjustment |
GF |
Ongoing |
$(900,000) |
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Victims of Crime Act Federal Backfill |
GF |
Ongoing |
$11,500,000 |
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Child Care Assistance Program |
GF |
Onetime |
$44,800,000 |
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Produce Incentive Program (Double Up Food Bucks) |
GF |
Onetime |
$2,000,000 |
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Area Agencies on Aging |
GF |
Onetime |
$5,000,000 |
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Civil Legal Aid |
GF |
Onetime |
$3,000,000 |
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Out of School Child Care |
GF |
Onetime |
$3,000,000 |
|
Community Based Services |
GF |
Onetime |
$17,900,000 |
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Blind Adults Skills Training and Education |
OF |
Onetime |
$150,000 |
|
Transfer ASDB Supplemental Early Childhood Therapies to AZEIP |
OF |
Onetime |
$150,000 |
|
Reentry Employment Support |
GF and OF |
Ongoing |
$3,000,000 |
41. Exempts the $5,000,000 appropriation for Area Agencies on Aging from lapsing.
42. Specifies that of the $5,000,000 FY 2027 appropriation for Area Agencies on Aging, DES shall distribute $500,000 to the Inter Tribal Area Agency on Aging and $500,000 to the Navajo Nation Area Agency on Aging.
43. Exempts the $3,000,000 appropriation for civil legal aid from lapsing.
44. 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 2026.
45. Exempts the $2,000,000 appropriation for the produce incentive program from lapsing.
46. Exempts the $3,000,000 appropriation for out-of-school child care from lapsing.
47. Exempts the $15,500,000 FY 2026 appropriation for the coordinated homeless services line item from lapsing through FY 2027.
48. Exempts the $1,500,000 FY 2026 appropriation for the Homeless Veterans' Services line item from lapsing through FY 2027.
49. Exempts the $500,000 FY 2026 appropriation for the Homeless Veterans' Strategic Plan line item from lapsing through FY 2027.
50. Exempts the SNAP error rate reduction workload appropriation made in the Public Law 119-21 Implementation – SNAP line item from lapsing through FY 2028.
51. Exempts the $1,761,800 appropriation for SUN Bucks from lapsing through October 31, 2027.
52. Exempts the $150,000 Supplemental Early Childhood Therapies appropriation from lapsing.
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Department of Education (ADE) (Sec. 31) |
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Formula |
GF |
Ongoing |
$(92,100,000) |
|
Unused Land Trust Balance One-Time Formula Offset |
GF |
Onetime |
$(7,963,500) |
|
3rd Year Low Income Weight Increase |
GF |
Onetime, ongoing beginning FY 2028 |
$37,000,000 |
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3rd Year Additional Assistance Increase |
GF |
Onetime, ongoing beginning FY 2028 |
$29,000,000 |
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Community Gardens |
GF |
Onetime |
$600,000 |
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School Meals |
GF |
Onetime |
$2,000,000 |
53. 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.
54. 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 receives in FY 2027.
55. 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.
56. Requires ADE to allocate $37,000,000 for onetime free and reduced-price lunch (FRPL) group B weight supplement in FY 2027.
57. Directs ADE to distribute the appropriated amount for onetime FRPL group B weight supplement to school districts and charter schools on a pro rata basis using the weighted student count for FRPL students in FY 2027 for the school district or charter school.
58. Allows a school district to budget the monies it receives from the onetime FRPL group B weight supplement in either the school district's maintenance and operation fund or unrestricted capital outlay fund.
59. 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.
60. 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.
61. Exempts the $600,000 appropriation for community gardens from lapsing.
62. Requires ADE to use $100,000 of its FY 2026 School Safety Program appropriation for a child sexual abuse and assault awareness and prevention pilot program in FY 2027.
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Department of Emergency and Military Affairs (DEMA) (Sec. 32) |
63. Allows DEMA to use remaining unexpended and unencumbered monies from its FY 2023 onetime maintenance backfill line item appropriation for construction of the Arizona Army National Guard Surprise Readiness Center.
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Department of Environmental Quality (DEQ) (Sec. 33) |
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Iron King Mine/Humboldt Smelter Cleanup |
GF |
Onetime |
$2,000,000 |
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Deposit to Water Quality Fee Fund |
OF |
Onetime |
$9,500,000 |
|
Geothermal Energy Research |
OF |
Onetime |
$1,500,000 |
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Emissions Inspection Contract Increases |
OF |
Ongoing |
$3,094,500 |
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Voluntary Vehicle Repair Eligibility |
OF |
Onetime |
$2,170,200 |
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Air Permit Portal |
OF |
Onetime |
$371,200 |
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Backfill Federal Air Quality Reductions |
OF |
Ongoing |
$3,900,300 |
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Executive Clemency (Sec. 36) |
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Increaser Board Member Salaries |
GF |
Ongoing |
$157,000 |
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Arizona Exposition and State Fair Board (Sec. 37) |
64. Exempts the $2,000,000 FY 2026 appropriation for enhanced state fair operations from lapsing through FY 2027.
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Department of Forestry and Fire Management (DFFM) (Sec. 38) |
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Wildfire Suppression Funding |
GF |
Onetime |
$10,000,000 |
65. Specifies that the $10,000,000 wildfire suppression funding appropriation shall be used for the purposes and are subject to the restrictions outlined in Laws 2021, 1st Special Session, Chapter 1.
66. Exempts the $10,000,000 wildfire suppression funding appropriation from lapsing through FY 2029.
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Department of Game and Fish (AZGF) (Sec. 39) |
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Selected Staff Salary Statewide Adjustment Correction |
OF |
Ongoing |
$246,800 |
|
Department of Gaming (ADG) (Sec. 40) |
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Racing Regulation Fund Deposit |
GF |
Onetime |
$1,900,000 |
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Increase HISA Assessment Funding |
OF |
Ongoing |
$644,900 |
|
Division of Problem Gaming |
OF |
Ongoing |
$680,000 |
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Department of Health Services (DHS) (Sec. 43) |
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Arizona State Hospital - Sexually Violent Persons |
GF |
Onetime |
$1,500,000 |
|
Arizona State Hospital Operating Funding |
GF |
Onetime |
$2,100,000 |
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Continue Existing Cooling Centers for Heat Relief |
OF |
Onetime |
$400,000 |
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Add Duchenne Muscular Dystrophy to Newborn Screening Panel |
OF |
Ongoing |
$754,900 |
|
Enhanced Residential Treatment |
OF |
Onetime |
$250,000 |
|
Alzheimer's State Plan |
OF |
Onetime |
$700,000 |
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Radiation Protection System Grants |
OF |
Onetime |
$1,500,000 |
67. Exempts the $400,000 cooling centers heat relief appropriation from lapsing through October 31, 2027.
68. Stipulates that the $1,500,000 radiation protection system grants appropriation shall be used by DHS to establish and administer a grant program to assist rural hospitals with the cost of installing radiation protection systems in cardiac catheterization procedure rooms in which real-time x-ray imaging procedures occur.
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Arizona Historical Society (Sec. 44) |
69. Allows $549,600 of monies in the State Parks Revenue Fund to be used for Arizona Historical Society expenses, contingent on if there is less than $300,000 in the unrestricted balance of the AHS Donations Fund in FY 2027.
70. Requires the Arizona Historical Society to notify JLBC if there is less than $300,000 in the AHS Donations Fund.
71. Requires the Arizona Historical Society to report to JLBC on the intended uses of any monies from the State Parks Revenue Fund before spending any monies for expenses.
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Department of Homeland Security (AZDOHS) (Sec. 46) |
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Increase Cybersecurity State and Local Grants |
OF |
Onetime |
$1,500,000 |
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Continue Multi-Factor Authentication Funding |
OF |
Onetime |
$850,000 |
72. Allows AZDOHS to spend up to $500,000 of the Cyber Ready Arizona line item for administration.
73. Prohibits AZDOHS from spending more than $11,000,000 from the Cyber Ready Arizona line item to purchase cybersecurity tool licenses.
74. Prohibits monies in the Cyber Ready Arizona line item from being used to support permanent FTE positions at any state agency or political subdivision, except for the $500,000 allowed for administration.
75. Allows water facilities to be recipients of grants under the Cyber Ready Arizona line item.
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Department of Insurance and Financial Institutions (DIFI) (Sec. 50) |
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Shift GF Budget to Non-GF Source |
GF |
Ongoing |
$(6,300,000) |
|
One-Time Funding to Transition to New Fee Authority |
GF |
Onetime |
$1,600,000 |
|
Automobile Theft Authority Operating |
OF |
Ongoing |
$100,000 |
|
Automobile Theft Authority Operating |
OF |
Ongoing |
$(100,000) |
|
Arizona Vehicle Theft Task Force |
OF |
Ongoing |
$100,000 |
76. Directs DIFI to assess and set the fees at a level to ensure that the available resources in the Financial Surveillance Fund, including any carryforward balance, will equal or exceed the amount appropriated from the Financial Surveillance Fund.
77. Directs DIFI to assess and set the fees at rates that equal or exceed those expended in FY 2026.
78. Allocates $1,000,000 of the FY 2027 Financial Surveillance Fund appropriation to the DIFI Financial Institutions Division.
79. Specifies that monies in DIFI's Arizona Vehicle Theft Task Force line item shall be used to pay 100% of overtime expenditures for city, town, and county sworn officers that participate in the task force.
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Fund Prior County Probation Salary Increases |
GF |
Onetime in FY 2027; ongoing in FY 2029 |
$10,500,000 |
|
Judicial Salary $10,000 Increase |
GF |
Ongoing |
$1,100,000 |
|
Probation Electronic Monitoring System Operating Costs |
OF |
Onetime |
$1,300,000 |
80. Stipulates that the $1,300,000 probation electronic monitoring system operating costs appropriation shall be used for the continued operation of a statewide mobile electronic monitoring system for sex offenders on probation supervision and may only be used for contracted services.
81. Allows any monies remaining from the Judiciary's $1,300,000 probation electronic monitoring system appropriation to be used to operate the system for other violent offender populations.
82. Requires the courts to submit quarterly reports on expenditures, enrollment, compliance, and utilization to the Governor, President of the Senate and Speaker of the House.
83. Specifies that beginning January 1, 2027, the annual salary of all judges and justices shall increase by $10,000.
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Department of Juvenile Corrections (ADJC) (Sec. 50) |
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4% Youth Correctional Officer Stipend |
GF |
Ongoing |
$800,000 |
|
Adobe Mountain School Operating Shortfall |
OF |
Onetime |
$600,000 |
84. Stipulates that ADJC's lump sum appropriation includes funding to convert the onetime FY 2026 4% youth correctional officer stipend into a 4% salary increase in FY 2027.
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Arizona State Land Department (ASLD) (Sec. 53) |
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|
Central Arizona Project Fees Technical Adjustment |
GF |
Ongoing |
$(200,000) |
|
Legislature – Auditor General (Sec. 54) |
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|
State Employee Health Plan Contracted Audit |
OF |
Onetime |
$500,000 |
85. Directs the Auditor General to use the monies appropriated for the state employee health plan contracted audit for an independent, third-party special audit on the state's health insurance plan, including analysis of the health plan's application of best practices in cost containment and a forensic audit of a sample of claims from FY 2026.
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Department of Liquor Licenses and Control (DLLC) (Sec. 55) |
86. Extends the lapsing date of the $2,900,000 FY 2025 supplemental appropriation for records management system through FY 2028 and allows the monies to be used for implementation of regulations for alternative nicotine products.
|
State Natural Resource Conservation Board (Sec. 60) |
87. Exempts the $100,000 FY 2026 appropriation for onetime operating costs from lapsing.
|
Navigable Streams Commission (Sec. 62) |
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Agency Sunset |
GF |
Ongoing, beginning in FY 2029 |
$143,000 |
|
Arizona State Board of Nursing (Sec. 63) |
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|
Complaint Prioritization and 180 Day Investigation Timeline |
OF |
Ongoing |
$620,800 |
|
Nursing Care Institution Administrators and Assisted Living Facility Board (Sec. 64) |
88. Allows the Board to use up to $30,000 of the lump sum appropriation to pay outstanding Central Service Bureau invoices in prior years.
|
Arizona State Board of Dispensing Opticians (Sec. 66) |
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|
Retiree Accumulated Sick Leave Payout and Onboarding |
OF |
Onetime |
$30,000 |
|
Arizona Board of Osteopathic Examiners in Medicine and Surgery (Sec. 68) |
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|
Additional Staffing |
OF |
Ongoing |
$400,000 |
|
Arizona State Parks Board (ASPB) (Sec. 69) |
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|
Park Ranger and Water Operator Staffing |
OF |
Ongoing |
$996,600 |
89. Allows the Board to spend up to $1,400,000 of the monies in the State Parks Revenue Fund to pay for State Historic Preservation Office operating expenses, if federal grant monies are unavailable in FY 2027.
90. Requires the Board to report its expenditure plan to JLBC before spending any monies from the State Parks Revenue Fund for State Historic Preservation Office operating expenses.
91. Extends the lapsing date of the Arizona Veterans Memorial State Park appropriation through FY 2028.
92. Requires the Board to report its revised expenditure plans to JLBC and OSPB if monies are available for land and water conservation grant funding in FY 2027.
|
Department of Public Safety (DPS) (Sec. 77) |
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|
Victims of Crime Act Federal Backfill |
GF |
Ongoing |
$9,300,000 |
|
County Sheriff Support |
GF |
Onetime |
$7,000,000 |
|
Security for Newly Created Lieutenant Governor's Office |
GF |
Onetime and Ongoing |
$700,000 |
|
Caseload Increase for AZPOST Training Academy |
OF |
Onetime |
$2,045,000 |
|
OF |
Ongoing |
$500,000 |
|
|
Scrap Metal Dealer Compliance |
OF |
Ongoing |
$250,000 |
|
Highway Patrol and Non-Patrol Replacement Vehicles |
OF |
Onetime |
$15,540,300 |
|
Redaction Processing |
OF |
Onetime and Ongoing |
$446,800 |
|
Aircraft Maintenance for Airplane and Helicopters |
OF |
Onetime |
$2,079,200 |
|
Wellness and Crisis Care Program |
OF |
Onetime and Ongoing |
$1,595,300 |
|
Civil Air Patrol |
OF |
Ongoing |
$106,000 |
93. Exempts the $750,000 FY 2026 appropriation for the Yuma County Family Advocacy Center from lapsing.
94. Requires that DPS must enter into a new agreement with the recipient of the monies appropriated for the Yuma County Family Advocacy Center before distributing any remaining funding from the appropriation.
95. Exempts the $15,540,300 FY 2027 appropriation for vehicle replacement from lapsing through FY 2029.
|
Department of Real Estate (ADRE) (Sec. 78) |
|||
|
IT Project Maintenance |
GF |
Ongoing |
$140,000 |
96. Stipulates that ADRE's lump sum appropriation includes an ongoing increase of $140,100, beginning in FY 2027, for maintenance of the department's IT system.
97. Stipulates the Legislature's intent that the appropriation for IT project maintenance not result in the increase of any fee or assessment levied.
|
Department of Revenue (DOR) (Sec. 82) |
98. Transfers and appropriates, if the total value of properties retained by unclaimed property contract auditors exceeds $1,473,900, the excess amount to the Department of Revenue Administrative Fund. Allows DOR to use the monies for preparing and delivering notices and communications to holders and property owners under the unclaimed property program.
|
Secretary of State (SOS) (Sec. 83) |
|||
|
Address Confidentiality Program |
GF |
One-time |
$400,000 |
|
County Share of AVID Costs |
OF |
Onetime |
$1,000,500 |
|
Record Retention Workload |
OF |
Ongoing |
$194,600 |
99. Requires the SOS, before spending monies from the election services line item, to submit a report on the expected amount and purpose of expenditures for the costs of the 2026 election to the President of the Senate, the Speaker of the House, JLBC and OSPB.
100. Requires, on or before January 31, 2027, the SOS to submit a report to JLBC and OSPB on the actual expenditures, by purpose, from the election services line item for the 2026 election.
101. Prohibits the SOS from using more than $250,000 from the election services line item for direct costs.
102. Exempts the $450,000 FY 2025 appropriation for the Electronic Records Repository line from lapsing until FY 2027.
103. Prohibits monies for the Address Confidentiality Program Fund deposit from being transferred to another line item.
|
Arizona State Board of Technical Registration (Sec. 85) |
|||
|
Renew E-Licensing Contract |
OF |
Onetime |
$77,000 |
|
Department of Transportation (ADOT) (Sec. 87) |
|||
|
Highway Maintenance – 487 New Lane Miles |
OF |
Ongoing |
$10,178,500 |
|
Highway Maintenance of Poor and Fair-Rated Roads |
OF |
Ongoing |
$5,201,600 |
|
Construction Management System – Phase 4 of 5 |
OF |
Onetime |
$6,844,600 |
|
Construction Management System – Phase 2 of 3 |
OF |
Onetime |
$5,570,600 |
|
State Fleet – Replace 284 Vehicles |
OF |
Onetime |
$6,361,300 |
|
Fueling Facilities |
OF |
Onetime |
$4,200,000 |
|
State Fleet – Exempt Rate Increases |
OF |
Ongoing |
$1,682,400 |
|
Highway Maintenance – I-17 Flex Lane |
OF |
Ongoing |
$1,142,000 |
|
Expand Current Line for Livestock Control to Include Crossings |
OF |
Ongoing |
$700,000 |
|
MVD Office Security Upgrades |
OF |
Onetime |
$563,100 |
|
Driver License and ID Card Production |
OF |
Onetime |
$386,100 |
|
License Plate Production |
OF |
Ongoing |
$137,100 |
|
Staff Salary Correction |
OF |
Ongoing |
$76,600 |
|
Highway Maintenance – South Mountain Freeway COLA |
OF |
Ongoing |
$66,000 |
104. Allows ADOT to use $73,300 from the FY 2027 State Highway Fund appropriation to pay FY 2024 invoices.
|
State Treasurer (Sec. 88) |
|||
|
Justice of the Peace Salary Funding |
GF |
Ongoing |
$100,000 |
105. Allows unexpended monies from the $50,000 FY 2026 appropriation distribution to Pinal County for illegal dumping prevention to be used to expand and support the Pinal County Community Cleanup Free Dump Day program.
106. Reverts the FY 2024 and FY 2025 ballot paper appropriations to the General Fund on July 31, 2026.
|
Universities (Sec. 90-93) |
|||
|
UA - Eliminate Natural Resource Users Law and Policy Center |
GF |
Ongoing |
$(1,600,000) |
|
UA – Water Adjudication Funding |
GF |
Onetime |
$500,000 |
|
UA – AZ REACH |
GF |
Onetime |
$500,000 |
107. Requires the Arizona Board of Regents to submit its Arizona Promise Program report by December 1, 2027.
108. Allows the Arizona Board of Regents to distribute monies from the Washington D.C. Internships line item to regional programs outside of Washington, D.C.
109. Requires the University of Arizona to use up to $1,200,000 of the GF monies appropriated to the operating lump sum appropriation to operate the Arizona perinatal and pediatric psychiatry access hotline.
110. Stipulates that the $500,000 appropriation for the AZ REACH line item shall be used to provide medical care transfer services for hospitals with less than twenty beds.
111. Requires that the University of Arizona use the $500,000 water adjudication appropriation to assist claimants in the general stream adjudication of water rights.
112. Exempts the $500,000 water adjudication appropriation from lapsing.
113. Declares it is the Legislature's intent for the School of Civic and Economic Thought and Leadership at Arizona State University, the Economic Policy Institute at Northern Arizona University and for the Center for the Philosophy of Freedom at the University of Arizona maintain the same funding level in FY 2027 as FY 2026, except the universities may allocate the lump sum reduction of no more than 2.5% as prescribed by this Legislation.
|
Arizona Department of Veterans Services (ADVS) (Sec. 94) |
114. Allows ADVS to spend the $1,000,000 FY 2023 tribal ceremonies appropriation for the Arizona State Veterans' Homes line item for tribal members in veterans' homes.
|
Arizona State Veterinary Medical Examining Board (Sec. 95) |
|||
|
Digitize Licensee Prior Record Digitization |
OF |
Onetime |
$16,800 |
|
Water Infrastructure Finance Authority (WIFA) (Sec. 96) |
|||
|
Small Drinking Water Systems Fund Deposit |
OF |
Onetime |
$500,000 |
|
Department of Water Resources (ADWR) (Sec. 97) |
|||
|
Colorado River Litigation Fund Deposit |
OF |
Onetime |
$6,000,000 |
FY 2020 Appropriation Adjustment (Sec. 98)
115. Reduces the following amount from the GF in FY 2027 to the following agencies:
|
Agency |
Amount |
|
ADE – Teacher Development Pilot Program (FY 2020) |
$(344,300) |
FY 2021 Appropriation Adjustment (Sec. 99)
116. Reduces the following amount from the GF in FY 2027 to the following agencies:
|
Agency |
Amount |
|
ADE – Teacher Development Pilot Program (FY 2021) |
$(400,000) |
FY 2022 Appropriation Adjustment (Sec. 100)
117. Reduces the following amounts from the GF in FY 2027 to the following agencies:
|
Agency |
Amount |
|
ADE – Teacher Development Pilot Program (FY 2022) |
$(400,000) |
|
ADOA – Retirement of Debt Financing Agreements (FY 2022) |
$(5,037,800) |
FY 2024 Appropriation Adjustment (Sec. 101)
118. Reduces the following amounts from the GF in FY 2027 to the following agencies:
|
Agency |
Amount |
|
ADE – Live, Remote Instructional Courses |
$(100,000) |
FY 2025 Appropriation Adjustment (Sec. 102)
119. Reduces the following amounts from the GF in FY 2027 to the following agencies:
|
Agency |
Amount |
|
ADE – Live, Remote Instructional Courses |
$(100,000) |
FY 2026 Appropriation Adjustment (Sec. 113)
120. Reduces the following amounts from the GF in FY 2026 to the following agencies:
|
Agency |
Amount |
|
ADE – Basic State Aid Formula |
$(31,859,000) |
FY 2026 Supplemental Appropriations and Adjustments (Sec. 103-112)
|
Agency |
Fund |
Amount |
|
AHCCCS - Formula |
GF |
$104,728,400 |
|
AHCCCS - Formula |
EA |
$471,741,800 |
|
DOC – Operating Expenses |
GF |
$4,100,000 |
|
DVS – State Home for Veterans Trust Fund Deposit |
GF |
$3,000,000 |
|
DES - Formula |
GF |
$82,818,700 |
|
DES - Formula |
EA |
216,304,700 |
|
DES – Summer Food Benefits (SUN Bucks) |
GF |
$1,761,800 |
|
DPS – Operating Expenditures |
OF |
$4,750,000 |
|
Community Colleges – Wrestling Scholarships |
GF |
$(250,000) |
|
ADE – Wrestling Scholarships |
GF |
$250,000 |
|
SOS – 2026 Election Services |
GF |
$4,000,000 |
|
Board of Behavioral Health Examiners Operating Costs |
OF |
$150,000 |
121. Appropriates $2,018,700 from the state GF in FY 2026 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 2025; and
d. to pay interest owed from prior-year disallowed costs.
122. 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.
123. Exempts the $1,761,800 supplemental appropriation to DES for SUN Bucks from lapsing until October 31, 2026.
124. Exempts the $4,750,000 supplemental appropriation to DPS for operating expenditures from lapsing.
125. Directs ADE to use the $250,000 appropriation for wrestling scholarships to issue a grant to a single Arizona school that offers instruction to grades six through twelve and incorporates wrestling into its mission.
126. Requires the SOS, before spending the $4,000,000 supplemental appropriation for 2026 election services, to submit a report on the expected expenditures to the President of the Senate, Speaker of the House, JLBC and OSPB.
127. Requires the SOS, by January 31, 2027, to submit a report to JLBC and OSPB detailing the actual expenditures, by purpose, from the appropriation.
128. Exempts the $4,000,000 supplemental appropriation to the SOS for 2026 election services from lapsing and requires until June 30, 2027.
DES (Sec. 114)
129. Continues to allow DES, beginning April 1, 2027, to use up to $25,000,000 from the Budget Stabilization Fund (BSF) to provide funding for reimbursement grants.
130. Requires DES, before using the BSF monies, to notify the Director of JLBC and the Director of OSPB.
131. Requires the BSF appropriation to be fully reimbursed by September 1, 2027, and to be reimbursed in full as part of the closing process for FY 2027.
132. Prohibits the BSF appropriation from being used for additional programmatic expenditures.
FY 2027 Lump Sum Reductions (Sec. 116)
133. Reduces the following GF monies from the lump sum appropriations of the following budget units in FY 2027.
|
Agency |
Lump Sum Reductions |
|
Department of Administration |
$(235,200) |
|
ADOA – School Facilities Division |
$(40,600) |
|
Office of Administrative Hearings |
$(24,600) |
|
Department of Agriculture |
$(390,500) |
|
Attorney General |
$(610,000) |
|
Board for Charter Schools |
$(70,300) |
|
Arizona Commerce Authority |
$(250,000) |
|
Office of Economic Opportunity |
$(13,300) |
|
Board of Education |
$(80,600) |
|
Department of Education |
$(343,500) |
|
Department of Emergency & Military Affairs |
$(150,200) |
|
State Board of Equalization |
$(18,400) |
|
Board of Executive Clemency |
$(37,100) |
|
Governor's Office |
$(203,600) |
|
Governor's Office of Strategic Planning and Budgeting |
$(71,400) |
|
Arizona Historical Society |
$(59,900) |
|
Prescott Historical Society |
$(26,900) |
|
Judiciary – Supreme Court |
$(364,000) |
|
Judiciary – Court of Appeals |
$(638,800) |
|
Judiciary – Superior Court |
$(123,000) |
|
Land Department |
$(265,600) |
|
House of Representatives |
$(544,900) |
|
Joint Legislative Budget Committee |
$(76,800) |
|
Legislative Council |
$(235,600) |
|
Ombudsman – Citizens Aide Office |
$(40,200) |
|
Senate |
$(451,600) |
|
Mine Inspector |
$(39,700) |
|
Navigable Streams Commission |
$(3,600) |
|
Real Estate Department |
$(78,000) |
|
Department of Revenue |
$(1,255,500) |
|
Secretary of State |
$(338,500) |
|
Board of Tax Appeals |
$(8,000) |
|
Office of Tourism |
$(182,100) |
|
State Treasurer |
$(8,600) |
|
Office of Tribal Relations |
$(1,700) |
|
Arizona Board of Regents |
$(82,300) |
|
Arizona State University |
$(8,096,000) |
|
Northern Arizona University |
$(2,624,500) |
|
University of Arizona – Main |
$(4,725,900) |
|
University of Arizona – Health Services |
$(1,027,700) |
134. Prohibits the Universities from reducing the monies allocated to ASU's School of Civic and Economic Thought and Leadership, NAU's Economic Policy Institute and the University of Arizona's Center for the Philosophy of Freedom by more than 2.5%.
Debt Service Payment (Sec. 117)
135. Allocates $26,997,100 of state GF revenue in FY 2027 to the Arizona Convention Center Development Fund.
School Safety Interoperability (Sec. 118)
136. Requires ADE to use $2,000,000 of its FY 2026 School Safety Program appropriation for school safety interoperability program in FY 2027 and outlines required distributions.
State Treasurer Local Distributions (Sec. 119)
137. Appropriates $1,746,000 from the Peace Officer Training Equipment Fund in FY 2027 to the State Treasurer to distribute to specified recipients for public safety training simulators.
138. Appropriates $1,000,000 from the Peace Officer Training Equipment Fund to the Arizona Criminal Justice Commission for grants that enhance law enforcement recruitment and retention activities.
139. Appropriates $300,000 from the Peace Officer Training Equipment Fund to the State Treasurer to distribute to the Superintendent for Public Instruction for school hardening grants.
140. Appropriates $4,078,400 from the Peace Officer Training Equipment Fund in FY 2027 to the State Treasurer to distribute to distribute to specified recipients for records management software.
141. Appropriates $150,000 from the Peace Officer Training Equipment Fund in FY 2027 to the State Treasurer to distribute to the town of Paradise Valley for law enforcement equipment purchases.
Fund Transfers (Sec. 121-122)
142. Transfers the following amounts from the following fund sources to the state GF by June 30, 2026 for the purpose of providing adequate support and maintenance for agencies of this state:
|
Fund |
FY 2026 |
FY 2027 |
|
|
Arizona Department of Administration |
|
||
|
Risk Management Fund |
$6,100,000 |
|
|
|
Construction Insurance Fund |
$5,500,000 |
|
|
|
Co-Op State Purchasing Fund |
$3,000,000 |
|
|
|
Arizona Commerce Authority |
|
||
|
Arizona Competes Fund |
$10,000,000 |
|
|
|
Corporation Commission |
|
||
|
Securities Regulatory and Enforcement Fund |
$14,700,000 |
|
|
|
Utility Regulation Revolving Fund |
$3,400,000 |
|
|
|
Department of Environmental Quality |
|
||
|
Recycling Fund |
$1,500,000 |
|
|
|
Underground Storage Tank Revolving Fund |
$2,400,000 |
|
|
|
Arizona Game and Fish Department |
|
||
|
Heritage Land Acquisition Fund |
$5,000,000 |
|
|
|
Watercraft Licensing Fund |
$3,400,000 |
|
|
|
Industrial Commission |
|
||
|
ICA Admin Fund |
$6,700,000 |
|
|
|
Department of Insurance & Financial Institutions |
|
||
|
Automobile Theft Authority Fund |
$3,800,000 |
|
|
|
Financial Services Fund |
$3,300,000 |
|
|
|
Judiciary |
|
||
|
Judicial Collection and Enhancement Fund |
$1,000,000 |
|
|
|
Court Appointed Special Advocate & Vulnerable Persons Fund |
$3,000,000 |
|
|
|
Juvenile Probation Services Fund |
$4,000,000 |
|
|
|
Land Department |
|
||
|
Trust Land Management Fund |
$9,000,000 |
|
|
|
Arizona State Parks Board |
|
||
|
State Parks Revenue Fund |
$8,600,000 |
|
|
|
Department of Transportation |
|
||
|
SMART Rural Transportation Fund |
$6,700,000 |
|
|
|
Motor Vehicle Liability Ins. Enforcement Fund |
$15,000,000 |
|
|
|
Vehicle Inspection and Cert. Enforcement Fund |
$3,500,000 |
|
|
|
Water Infrastructure Finance Authority |
|
||
|
Water Supply Development Revolving Fund |
$20,000,000 |
|
|
143. Transfers $9,700,000, by July 1, 2027, 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.
144. Specifies that the $9,700,000 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.
Payment Deferrals (Sec. 123-124)
145. Appropriates $40,000,000 from the Consumer Remediation Subaccount of the Consumer Restitution and Remediation Revolving Fund in FY 2027 to the AG and specifies that the monies consist of opioid claims-related litigation or settlements.
146. Requires the AG, by July 8, 2026, or if sufficient monies are not available on July 8, 2026, within three calendar days after sufficient monies become available, to transfer the $40,000,000 to the DOC Opioid Remediation Fund.
147. Requires DOC 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.
148. Prohibits the AG from imposing any conditions on the transfer of the monies in the DOC Opioid Remediation Fund.
149. Stipulates that, if the AG does not transfer the full amounts specified by July 8, 2026, the ADOA General Accounting Office must directly transfer the amount from the subaccount to the DOC Opioid Remediation Fund.
150. Exempts the AG monies from lapsing.
151. Continues to defer $800,727,700 in Basic State Aid (BSA) and additional state aid (ASA) payments from ADE in FY 2027 until after June 30, 2027, but no later than July 12, 2027, and excludes charter schools and school districts with a student count less than 4,000 pupils from the deferral.
152. Requires ADE to make the deferral by reducing the apportionment of state aid for each month in the fiscal year by the same amount.
153. Requires ADE to disburse the FY 2028 appropriations of $800,727,700 to the counties for the school districts starting July 1, 2027, and no later than July 12, 2027, in amounts equal to the reductions in the apportionment of BSA and ASA.
154. Requires school districts to include, in the revenue estimates used for computing FY 2027 tax rates, the deferred appropriation monies that the districts will receive.
Statewide Adjustments (Sec. 125-126)
|
Area of Adjustment |
GF |
OF |
Total |
|
Employer Health Insurance Contribution Reduction |
$(194,788,900) |
$(45,788,900) |
$(240,665,300) |
|
Employer Health Insurance Contribution Increase |
$324,684,500 |
$80,000,000 |
$404,684,500 |
|
State Fleet Operations Reduction |
$(5,205,900) |
$10,000 |
$(5,195,900) |
|
State Fleet Replacement Reduction |
$(2,422,400) |
$(2,700,000) |
$(5,122,400) |
|
State Fleet Operations Increase |
$5,690,600 |
$500,000 |
$6,190,600 |
|
State Fleet Replacement Increase |
$1,964,200 |
$1,000,000 |
$2,964,200 |
|
Agency Risk Management Reduction |
$(19,999,600) |
$(5,888,700) |
$(25,888,300) |
|
Agency Risk Management Increase |
$9,897,300 |
$3,000,000 |
$12,897,300 |
|
Agency Retirement Adjustment |
$(3,135,800) |
$(271,500) |
$(3,407,300) |
|
Agency Rent Adjustment |
$87,000 |
$50,000 |
$137,000 |
|
Agency Accounting System Charge Adjustment |
$1,260,300 |
$1,500,000 |
$2,760,300 |
155. Outlines statewide adjustment instructions and procedures.
156. Outlines the FY 2027 individual agency charges totaling $1,798,500 for general agency counsel provided by the AG.
Miscellaneous (Sec. 127-137)
157. 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.
158. Contains various reporting requirements.
159. Defines terms.
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Initials DS HB 4154
6/11/2026 Page 0 House Engrossed
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