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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: APPROP DP 15-1-2-0 |
HB4156: capital outlay; appropriations; 2026-2027
Sponsor: Representative Livingston, LD 28
Caucus & COW
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. 11)
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)
- $10,000,000 from the state General Fund (GF);
- $4,600,000 from the Capital Outlay Stabilization Fund (COSF);
- $554,000 from the Arizona State Hospital Land Fund;
i. requires ADOA to allocate these monies to state agencies for necessary building renewal;
ii. 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;
iii. allows the monies to be used for retrofitting facilities for space consolidation;
Arizona Department of Corrections (DOC)
- $15,652,200 from the DOC Building Renewal Fund;
i. restricts DOC from spending these monies on personal services or overhead expenses related to managing the funded projects;
ii. prohibits DOC from spending more than $4,570,000 of these monies to construct new facilities to address capital needs as required by the court in the Jensen v. Thornell inmate health care litigation;
Arizona Game and Fish Department (AZGFD)
- $1,932,900 from the Game and Fish Fund;
Arizona State Lottery Commission
- $100,000 from the State Lottery Fund;
Arizona Department of Transportation (ADOT)
- $24,158,500 from the State Highway Fund (SHF); and
- $415,600 from the State Aviation Fund (SAF).
Individual Capital Projects (Sec. 12)
2. Appropriates the following amounts to the specified agencies or boards in FY 2027 for individual capital projects:
Arizona Exposition and State Fair Board
a. $3,905,900 from the Arizona Exposition and State Fair Fund for capital improvements;
AZGFD
b. $150,000 from the Capital Improvement Fund for dam maintenance;
c. $400,000 from the Capital Improvement Fund for hatchery maintenance;
d. $11,000,000 from the Game and Fish Fund for hatchery repairs;
Arizona State Parks Board
e. $3,552,200 from the State Parks Revenue Fund for capital improvements;
f. $200,000 from the State Parks Revenue Fund to develop monitoring plan and install markers at Tonto Natural Bridge state park;
Arizona Pioneers' Home
g. $482,000 from the Miners' Hospital for Miners with Disabilities Land Fund for capital improvements;
ADOT
h. $5,038,000 from the SHF to construct new materials lab in Kingman;
i. $4,944,000 from the SHF to replace vehicle fueling facilities in Payson, Phoenix and Mesa; and
j. $611,000 from the SHF to design the renovation of the traffic signal and lightening warehouse in Phoenix.
ADOT Statewide Highway Construction (Sec. 13)
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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. 14)
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.
ADOT Appropriation Reductions & Transfers
13. Reduces the following amounts made from the GF to ADOT in FY 2021:
a. $116,200 for repaving State Route 69 in Prescott Valley;
b. $1,734,300 for repaving State Route 95 in Mohave County; and
c. $93,100 for repairing State Route 186 and State Business Route 10 in Willcox. (Sec. 1)
14. Decreases $1,052,600 from the appropriation made from the GF to ADOT in FY 2023 for U.S. Route 89. (Sec. 15)
15. Removes the following amounts made from the SHF to ADOT in FY 2023:
a. $1,819,000 for repaving State Route 69 in Prescott Valley;
b. $6,052,200 for repaving State Route 95 in Mohave County;
c. $765,600 for repairing State Route 186 and State Business Route 10 in Willcox;
d. $1,615,500 for the rehabilitation of pavement along U.S. Route 191 between Armory Road and East Safford;
e. $885,000 for the design and construction of a screen wall along the east side of Loop 101 near 16th Street;
f. $322,500 for installing lighting on the Sentinel exit in Gila Bend; and
g. $5,912,100 for the rehabilitation of pavement along U.S. Route 191 between mile post 163 and 173. (Sec. 2, 16)
16. Transfers from July 1, 2026, to June 30, 2027, $17,371,900 from the SHF to the GF for the purposes of providing adequate support and maintenance for the state agencies. (Sec. 17)
17. Stipulates that the $17,371,900 transfer consists of the appropriation reductions made relating to ADOT's repavement of State Routes 69 and 95, repair of State Route 186 and State Business Route 10, rehabilitation pavement along U.S. 191, the design and construction of the screen wall and the installation of lighting, as outlined. (Sec. 17)
18. Transfers, before July 1,2026, $2,500,000 from the SHF to the GF for the support and maintenance of state agencies, as specified. (Sec. 18)
19. Mandates that the amount transferred reflects the $2,500,000 reduction made in Laws 2022 from the state highway project to rehabilitate the pavement along U.S. Route 191 between Armory Road and East Safford. (Sec. 18)
Overpass at Riggs Road & State Route 347 (SR347)
20. Clarifies that the FY 2021 $2,500,000 and $7,500,000 and FY 2024 $1,500,000 appropriations to ADOT are for designing, right of way acquisition, utility relocation, natural resource recovery and construction for an overpass at Riggs Road and to improve SR347. (Sec. 1, 7)
21. Specifies that the FY 2023 $19,000,000, FY 2024 $18,000,000 and $1,901,000, FY 2026 $10,839,000 and $1,500,000 appropriations to ADOT are for right of way acquisition, utility relocation, natural resource recovery and construction to improve SR347, including improving the intersection on SR347 at Casa Blanca Road and Cement Plant Access and to construct an overpass at Riggs Road and SR347. (Sec. 2, 4, 8, 10)
22. Stipulates that the $49,000,000 appropriation to ADOT in FY 2028 is for designing, right of way acquisition, utility relocation, natural resource recovery and construction for an overpass at Riggs Road and SR347. (Sec. 6)
23. Clarifies that the legislature intends that the $49,000,000 appropriation, rather than the overpass at Riggs Road and SR347, be funded in FY 2028. (Sec. 6)
Miscellaneous
24. Eliminates the $5,000,000 appropriation from the SHF made in FY 2024 to ADOT for electric vehicle charging and advance fuel infrastructure at ADOT's fleet facilities. (Sec. 3)
25. Changes from FY 2028 to FY 2029 the appropriation of $25,000,000 from the GF to the Arizona Department of Veteran's Services (ADVS) to construct and establish a veteran's home facility in the northwestern portion of this state. (Sec. 5)
26. Extends the reversion date from June 30, 2026, to June 30, 2028, for ADOT monies appropriated in FY 2026 for the Grand Canyon Airport terminal renovation, contingent on receipt of a Federal Aviation Administration grant, otherwise, the monies revert to the SAF. (Sec. 9)
27. Extends the reversion date from June 30, 2026, to June 30, 2027, for the $2,400,000 appropriation made to ADVS in FY 2026 for the Tucson veterans' home HVAC replacement, which allows ADVS to apply for federal grant funding before JCCR review and requires to revert to the GF if no federal grant is awarded. (Sec. 9)
14. Exempts from lapsing the appropriations made in Laws 2025 to ADOT for the design and construction of additional vehicle lanes on Interstate 10 between State Route 85 and Cirtus Road. (Sec. 19)
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. 20)
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. 20)
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. 20)
18. Makes conforming and technical changes. (Sec. 3, 6)
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22. Initials LM HB 4156
23. 6/9/2026 Page 0 Caucus & COW
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