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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
budget stabilization fund; transportation fund
Purpose
Transfers Budget Stabilization Fund (BSF) monies that are earned from investment to the Statewide Infrastructure Trust Fund.
Background
Established in
1990, and administered by the State Treasurer, the BSF is designed to set
revenue aside during times of above-trend economic growth and for use during
times of
below-trend growth. At the end of a fiscal year, the BSF balance may not exceed
10 percent of the state General Fund revenue for that fiscal year. The State
Treasurer must invest and divest monies in the BSF and monies earned from
investment must be credited to the BSF (A.R.S.
§ 35-144). The estimated FY 2026 ending balance of the BSF is
$1,621,179,900 with an estimated $57,000,000 from interest earnings (JLBC Baseline).
The Statewide Infrastructure Trust Fund is administered by the State Treasurer and Fund monies are subject to legislative appropriation. The Fund consists of: 1) monies appropriated by the Legislature; and 2) any nonfederal gifts, donations or other monies received by the State Treasurer from any public or private source for transportation projects. Fund monies must be used to fund any phase of development or construction of transportation projects in the current or next fiscal year (A.R.S. § 28-7011).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires BSF monies that are earned from investment to be transferred to the Statewide Infrastructure Trust Fund, rather than deposited in the BSF.
2. Makes conforming changes.
3. Becomes effective on the general effective date.
Prepared by Senate Research
February 5, 2026
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