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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
VETOED
FACT SHEET FOR S.B. 1056/h.b. 2688
budget unit; vacant positions; reporting
Purpose
Requires the Arizona Department of Administration (ADOA) to collect a list of all vacant full-time equivalent positions (FTEs) that have been vacant for at least 150 days and requires each budget unit to eliminate the vacant positions each fiscal year, with outlined exceptions.
Background
By October 1 of each year, ADOA must collect from each budget unit and submit to the Joint Legislative Budget Committee and Governor's Office of Strategic Planning and Budgeting a report containing the number of FTEs and the total amount of salaries for each budget unit for the prior fiscal year (A.R.S. § 41-708).
In 2025, the Joint Legislative Budget Committee issued a fiscal note on an identical measure, S.B. 1510, which estimated a significant reduction in FTEs and stated that the legislation would not itself reduce an agency's ongoing spending authority. The spending reduction would only occur through further legislative action in the annual general appropriations act (JLBC fiscal note).
Provisions
1. Requires ADOA to collect a list from each budget unit of all vacant FTEs that have been vacant for at least 150 days and include the information in the annual FTEs report.
2. Requires a budget unit, each fiscal year, to eliminate any positions within the budget unit that have been vacant for more than 150 days.
3. Requires the budget unit's allocated FTEs to be adjusted to reflect the elimination of any vacant positions.
4. Defines budget unit as a department, commission, board, institution or other agency of the state that receives, spends or disburses state monies or incurs obligations of the state, excluding the Arizona Department of Corrections, Rehabilitation and Reentry, Department of Public Safety, Arizona Board of Regents (ABOR), universities under the jurisdiction of ABOR and community college districts.
5. Makes conforming changes.
6. Becomes effective on the general effective date.
Governor's Veto Message
The Governor indicates in her veto message that S.B. 1056 does not accurately reflect the state's merit-based hiring processes and would deprive state agencies of their ability to best serve Arizonans.
Senate Action House Action
ATT 2/3/26 DP 4-3-3 RO 1/27/26 DP 3-2-0-0
3rd Read 2/16/26 17-12-1 3rd Read 2/16/26 33-25-2
(S.B. 1056 was substituted for H.B. 2688 on 3rd Read)
Vetoed by the Governor 2/20/26
Prepared by Senate Research
February 27, 2026
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