SB1847 - 572R - Senate Fact Sheet

ARIZONA STATE SENATE

Fifty-Seventh Legislature, Second Regular Session

FACT SHEET FOR S.B. 1847

general appropriations act; 2026-2027.

Purpose

Makes session law changes relating to general appropriations necessary to implement the FY 2027 state budget.

Background

The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is often necessary to make statutory and session law changes to effectuate the budget. Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.

The Joint Legislative Budget Committee (JLBC) Baseline includes an estimate of spending necessary to meet requirements of statutory formulas and other obligations (JLBC).

S.B. 1847 contains the budget provisions for changes relating to general appropriations.

Provisions

FY 2027 Ongoing Fund and Major Footnote Changes

Acupuncture Examiners

Major Footnote Changes

1. Allows the Acupuncture Board of Examiners to use $50,000 to pay outstanding costs of services provided by the Arizona Department of Administration Central Services Bureau in prior years.

Arizona Department of Administration (ADOA)

Major Footnote Changes

2. Requires the $377,100 FY 2027 appropriation for corrections officer employer contributions to be distributed to the following counties to fully cover the Corrections Officer Retirement Plan employer contribution rate increase:

a) $4,600 to Apache County;

b) $10,100 to Cochise County;

c) $14,100 to Coconino County;

d) $7,700 to Gila County;

e) $7,800 to Graham County;

f) $4,400 to La Paz County;

g) $134,400 to Maricopa County;

h) $19,900 to Mohave County;

i) $8,800 to Navajo County;

j) $81,300 to Pima County;

k) $15,100 to Pinal County;

l) $6,600 to Santa Cruz County;

m) $38,300 to Yavapai County; and

n) $24,000 to Yuma County.

3. Requires ADOA, by July 15, 2026, to distribute the $10,000,000 FY 2027 appropriation for Gila County disaster relief to the following political subdivisions:

a) $2,500,000 to the Town of Miami;

b) $2,500,000 to the City of Globe; and

c) $5,000,000 to the Gila County.

4. Requires ADOA, by July 31, 2026, to distribute the $7,000,000 FY 2027 appropriation for county sheriff support to the following sheriff's offices:

a) $400,000 to Apache County;

b) $1,100,000 to Cochise County;

c) $400,000 to Coconino County;

d) $600,000 to Gila County;

e) $300,000 to Graham County;

f) $100,000 to Greenlee County;

g) $400,000 to La Paz County;

h) $300,000 to Mohave County;

i) $600,000 to Navajo County;

j) $600,000 to Pinal County;

k) $300,000 to Santa Cruz County;

l) $1,200,000 to Yavapai County; and

m) $700,000 to Yuma County.

5. Appropriates $3,000,000 from the state General Fund in FY 2027 to ADOA to provide a onetime distribution to a food bank for a capital need.

6. Requires the food bank, in order to qualify for the receive appropriated monies, to:

a) be a registered 501(c)(3) nonprofit;

b) have a core mission to provide for hungry people;

c) have been established between 1980 and 1990;

d) be located in a county with a population of more than 4,000,000 persons; and

e) be headquartered in the City of Mesa.

ADOA School Facilities Division (SFD)

Ongoing General Fund (GF) and Other Fund (OF) Changes

Summary of Changes	Source	Comments	FY 2027 Changes
Building Renewal Grants	GF	Onetime	183,300,000
Building Renewal Grants Administrative Costs	GF	Onetime	800,000
New Construction Formula	GF	Prior year project savings (onetime)	(26,100,000)

Major Footnote Changes

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 SFD final approval by December 15, 2025.

8. Exempts the $750,000 FY 2027 appropriation for building renewal grants administration from lapsing.

Arizona Department of Agriculture (AZDA)

Major Footnote Changes

9. Allows the AZDA to use up to $250,000 from the Commercial Feed Trust Fund in FY 2027 for expenses related to screwworm response and foreign cattle imports.

Arizona Health Care Cost Containment System (AHCCCS)

Ongoing GF and OF Changes

Summary of Changes	Source	Comments	FY 2027 Changes
Formula	GF		(42,000,000)
Office of Inspector General	GF	7 FTEs	400,000
Critical Access Rural Hospitals Aid	GF	Onetime	4,300,000
Health Crisis Services Hotline Funding	GF	Onetime	4,000,000

Major Footnote Changes

10. Exempts the $51,500,000 FY 2027 appropriation for H.R. 1 implementation – Medicaid from lapsing until June 30, 2028.

11. Exempts the $28,400,000 FY 2027 appropriation for H.R. 1 implementation – Medicaid information technology system upgrades from Information Technology Authorization Committee (ITAC) review.

12. Exempts the $7,812,000 FY 2027 appropriation for the Enhanced Residential Treatment Program from lapsing.

13. Declares the Legislature's intent that the $7,812,000 FY 2027 appropriation for the Enhanced Residential Treatment Program be continued in FYs 2028 and 2029.

14. Exempts monies appropriated in FY 2025 for graduate medical education from lapsing until December 31, 2026.

Attorney General (AG)

Major Footnote Changes

15. Requires the $17,000,000 FY 2027 appropriation for coordinated reentry planning services grants to be distributed as follows:

a) $2,000,000 to each of Coconino, Maricopa, Mohave, Navajo, Pima, Pinal and Yavapai counties to supplement costs associated with operation of an existing program;

b) $2,000,000 to La Paz County to establish a coordinated reentry planning services program; and

c) $1,000,000 as a grant to establish a statewide coordinated reentry planning services database.

16. Specifies that the coordinated reentry planning services grants include $3,000,000 from monies deposited in the Consumer Remediation Subaccount of the Consumer Restitution and Remediation Revolving Fund that are not related to opioid claims.

Barbering and Cosmetology Board

Major Footnote Changes

17. Requires the Barbering and Cosmetology Board to use $235,000 of its FY 2027 lump sum appropriation to fill 3 FTEs, including one licensing specialist, one customer service representative and one quality assurance specialist.

Department of Child Safety (DCS)

Ongoing GF and OF Changes

Summary of Changes	Source	Comments	FY 2027 Changes
Extended Foster Care Caseload Increase	GF	Onetime	1,000,000
Congregate Care	GF	Onetime	36,900,000
Federal Match Rate Adjustment	GF	Onetime	1,900,000

Major Footnote Changes

18. Requires the Director of DCS to report to JLBC the monies proposed to be transferred between out-of-home placement programs without seeking JLBC review.

19. Exempts the $43,787,500 FY 2025 appropriation for Comprehensive Health Plan Services from lapsing until June 30, 2027.

State Board of Chiropractic Examiners

Major Footnote Changes

20. Requires the State Board of Chiropractic Examiners, by September 1, 2026, provide a report to JLBC and the Governor's Office of Strategic Planning and Budgeting (OSPB) that details the Board's proposal to resolve the imbalance between ongoing revenues and expenditures.

Community Colleges

Ongoing GF and OF Changes

Summary of Changes	Source	Comments	FY 2027 Changes
Formula	GF		700,000

Arizona Department of Corrections, Rehabilitation and Reentry (ADCRR)

Ongoing GF and OF Changes

Summary of Changes	Source	Comments	FY 2027 Changes
Shifting OF to GF for Operation Costs	GF		15,900,000
Non-contract Medication – Substance Abuse	GF		6,700,000
4% Correctional Officer Stipend	GF		24,000,000
Health Care Federal Injunction	GF		55,800,000
Shifting OF to GF - Capital Uses	GF		10,000,000
Continue FY 2025 through 2027 Private Prison Onetime Funding	GF	FYs 2028 and 2029	54,300,000

Major Footnote Changes

21. Exempts projects related to the purchase and deployment of body-worn cameras at ADCRR from ITAC review.

22. Specifies that the appropriation for private prisons contracted services includes $3,767,200 for the purpose of awarding a correctional officer salary increase.

23. Requires ADCRR to increase the contracted rates in FY 2027 to provide an amount sufficient for a four percent salary increase to each correctional officer employed in a private prison that contracts with the state.

24. Specifies that the lump sum appropriation to ADCRR includes funding sufficient to convert the onetime stipend for corrections officers equal to four percent of the correctional officer's annual salary as appropriated in FY 2026 into a four percent annual salary increase in FY 2027.

25. Authorizes ADCRR to distribute up to $45,097,700 of the FY 2027 appropriation for Jensen v. Thornell compliance to a contracted health care provider contingent on the execution of a signed amendment to the current contracted health care provider contract that:

a) increases the health care staffing level in accordance with ADCRR's directives;

b) adopts quarterly reporting requirements from the health care provider to ADCRR, OSPB and JLBC with outlined information;

c) adopts a quarterly distribution schedule based on the health care provider meeting and maintaining the outlined staffing levels; and

d) adds automatic sanctioning or fines associated with failure to fill staffing vacancies consistent with the outlined staffing levels.

26. Exempts the $2,000,000 FY 2026 appropriation for the Arizona Correctional Information System from lapsing.

27. Allows ADCRR to use $10,900,000 from the FY 2026 operating lump sum appropriation in FY 2027 for compensatory or holiday liability accruals incurred in FY 2026.

28. Requires ADCRR to prioritize inmates closest to reentry relating to the Braille Transcription Program.

Arizona Criminal Justice Commission (ACJC)

Ongoing GF and OF Changes

Summary of Changes	Source	Comments	FY 2027 Changes
Victims of Crime Act Federal Funds Backfill	GF		2,250,000

Major Footnote Changes

29. Requires ACJC to distribute the $600,000 FY 2027 appropriation for the major incident regional law enforcement task force evenly to the sheriff's offices of the original five major incident division task forces located in Cochise, Coconino, Navajo, Pinal and Yuma counties.

Arizona Corporation Commission

Ongoing GF and OF Changes

Summary of Changes	Source	Comments	FY 2027 Changes
Shift Railroad Safety Funding from GF to OF	GF		(800,000)

Arizona Schools for the Deaf and the Blind (ASDB)

Major Footnote Changes

30. Requires ASDB, by September 1, 2026, to submit a report to JLBC and OSPB that details the school's budgetary and operational changes since FY 2026.

31. Requires the report to include any budgetary or operational changes relating to ASDB's closure of the Tucson campus, the termination of the residential program, the relocation of campus-based staff and any plans for the disposition of land owned by ASDB at the Tucson campus.

32. Specifies that the $50,000 FY 2027 appropriation for the supplemental early childhood services must be spent to continue the current contracts with multiple providers that are providing supplemental early childhood listening and spoken language services, including parent coaching services, to eligible infants and toddlers from birth to three years old and their families.

33. Requires contractors to ensure that the services are provided by or overseen by a certified auditory verbal educator or therapist in a natural environment, a clinical setting, an educational setting or a virtual setting.

Department of Economic Security (DES)

Ongoing GF and OF Changes

Summary of Changes	Source	Comments	FY 2027 Changes
Formula	GF		(42,400,000)
Supplemental Nutrition Assistance Program (SNAP) – Match Rate Adjustment	GF		(900,000)
Eliminate SNAP – Error Rate	GF	FY 2028 FY 2029	(138,700,000) (185,000,000)
Victims of Crime Act Federal Funds Backfill	GF		11,500,000
Child Care	GF	Onetime	44,800,000
Area Agencies on Aging	GF	Onetime	5,000,000
Civil Legal Aid	GF	Onetime	3,000,000
Developmental Disabilities High Need Clients	GF	Onetime	17,900,000

Major Footnote Changes

34. Exempts the $5,000,000 FY 2027 appropriation for adult services from lapsing.

35. Specifies that, of the $5,000,000 FY 2027 appropriation for adult services, DES must distribute $500,000 to the inter-tribal area agency on aging and $500,000 to the Navajo Nation area agency on aging.

36. Exempts the $3,000,000 FY 2027 appropriation for civil legal aid from lapsing.

37. Requires the $3,000,000 FY 2027 appropriation for civil legal aid to be distributed to nonprofit organizations to provide statewide general civil legal aid services consistent with the terms and restrictions of the federal legal services corporation as of federal FY 2026.

38. Exempts $15,500,00 of the FY 2026 appropriation for coordinated homeless services from lapsing until June 30, 2027.

39. Exempts the $3,000,000 FY 2027 appropriation for Out-Of-School Time Grant Program Fund deposit from lapsing.

40. Exempts the $1,500,000 FY 2026 appropriation for homeless veterans' services from lapsing until June 30, 2027.

41. Exempts the $500,000 FY 2026 appropriation for homeless veterans strategic plan from lapsing until June 30, 2027.

42. Exempts the $10,800,000 FY 2027 appropriation for H.R. 1 implementation – SNAP from lapsing until June 30, 2028.

43. Exempts the $1,767,300 FY 2027 appropriation for summer food benefits administration from lapsing until October 31, 2027.

44. Exempts the $150,000 FY 2027 for the Listening and Spoken Language Arizona Early Intervention Program from lapsing.

45. Exempts the $2,000,000 FY 2027 for the Produce Incentive Program from lapsing.

Arizona Department of Education (ADE)

Ongoing GF and OF Changes

Summary of Changes	Source	Comments	FY 2027 Changes
Formula	GF		(92,100,000)
3^rd Year Low Income Weight Increase	GF	Onetime	37,000,000
3^rd Year Additional Assistance Increase	GF	Onetime	29,000,000
No School Meal Copay (130-185% Federal Poverty Level Households)	GF	FY 2027 FY 2028	2,000,000 2,000,000

Major Footnote Changes

46. 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.

47. Requires ADE to distribute monies for district additional assistance and charter additional assistance on a proportional basis based on the district's or charter's additional assistance funding received in FY 2026.

48. 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.

49. Requires ADE to distribute the appropriated amount for onetime Free and Reduced-Price Lunch (FRPL) group B weight supplement to school districts and charter schools on a pro rata basis using the weighted student count for FRPL students for the school district or charter school.

50. 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.

51. 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.

52. 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.

53. Exempts the $600,000 FY 2027 appropriation for public school campus community gardens from lapsing.

54. Specifies that, of the monies appropriated in FY 2026 for the School Safety Program, $2,000,000 must be used to fund the School Safety and Threat Identification Pilot Program and $100,000 must be used to fund the Child Sexual Abuse and Assault Awareness and Prevention Pilot Program.

Department of Emergency and Military Affairs (DEMA)

Major Footnote Changes

55. Allows DEMA to use any remaining unexpended and unencumbered monies from the FY 2023 appropriation for onetime maintenance to backfill for the construction of the Arizona Army National Guard Surprise Readiness Center.

Board of Executive Clemency

Ongoing GF and OF Changes

Summary of Changes	Source	Comments	FY 2027 Changes
Increase Board Members Salaries	GF		157,000

Arizona Exposition and State Fair Board

Major Footnote Changes

56. Exempts the $2,000,000 FY 2026 appropriation for enhanced state fair operations from lapsing until June 30, 2027.

Department of Forestry and Fire Management (DFFM)

Major Footnote Changes

57. Specifies that the $10,000,000 FY 2027 appropriation for fire suppression must be used for financial assistance to private landowners for emergency repairs for infrastructure damage resulting from fires or fire suppression activities.

58. Exempts the $10,000,000 FY 2027 appropriation for fire suppression from lapsing until June 30, 2029.

Department of Health Services (DHS)

Major Footnote Changes

59. Requires the $1,500,000 FY 2027 appropriation for radiation protection systems grants to 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.

60. Exempts the $400,000 FY 2027 appropriation from the Health Services Lottery Fund for cooling centers for heat relief from lapsing until October 31, 2027.

Arizona Historical Society

Major Footnote Changes

61. Stipulates that, if the Arizona Historical Society Donations Fund unrestricted balance is less than $300,000 in FY 2027, the Arizona Historical Society can use up to $549,600 from the State Parks Revenue Fund for operating expenditures.

62. Requires the Arizona Historical Society to notify JLBC if the balance of the Arizona Historical Society Donations Fund is less than $300,000 in FY 2027 and submit a report to JLBC on the intended uses of any monies from the State Parks Revenue Fund before spending any monies for operating expenditures.

Arizona Department of Homeland Security (AZDOHS)

Major Footnote Changes

63. Allows AZDOHS to spend the $11,500,000 FY 2027 appropriation for Cyber Ready Arizona as follows:

a) up to $500,000 for administration; and

b) up to $11,000,000 to purchase cybersecurity tool licenses for cyber ready Arizona.

64. Prohibits monies appropriated for Cyber Ready Arizona, except for $500,000 for administration, from being used to support permanent FTEs at any state agency or political subdivision.

65. Allows AZDOHS to consider grant applications from wastewater facilities in addition to any existing recipient class.

Department of Insurance and Financial Institutions (DIFI)

Ongoing GF and OF Changes

Summary of Changes	Source	Comments	FY 2027 Changes
Shift Agency Budget from GF to OF	GF		(6,300,000)

Major Footnote Changes

66. Declares the Legislature's intent that DIFI assess and set the statutorily required fees at rates that equal or exceed those expended in FY 2026.

67. Specifies that DIFI's operating lump sum appropriation includes a $1,000,000 increase from the Financial Surveillance Fund for DIFI's Financial Institutions Division.

Judiciary

Ongoing GF and OF Changes

Summary of Changes

Source

Comments

FY 2027 Changes

Judicial Salary Increase – 10%

1,100,000

County Probation Salary Increase

FY 2027 Onetime

FY 2029 Ongoing

10,500,000

Major Footnote Changes

68. Sets the following annual salaries for the following judges and justices beginning January 1, 2027:

a) $242,000 for the Chief Justice of the Arizona Supreme Court;

b) $235,000 for other Arizona Supreme Court justices;

c) $220,000 for court of appeals judges; and

d) $210,000 for superior court judges.

69. Requires the $1,300,000 FY 2027 appropriation for probation electronic monitoring system operating costs to be used for the continued operation of a statewide mobile electronic monitoring system for sex offenders on probation supervision.

70. Allows the monies for the probation electronic monitoring system to be used for contracted statewide mobile electronic monitoring platform services, including:

a) approved mobile devices and data services;

b) software licensing and maintenance;

c) officer training; and

d) contractor compliance intervention services directly related to operation of the program.

71. Allows the Administrative Office of the Courts to authorize participating criminal justice and supervision agencies to use the statewide mobile electronic monitoring platform and related services.

72. Requires the Administrative Office of the Courts, beginning in FY 2027, to submit quarterly expenditure, enrollment, compliance and utilization reports for the platform to the Governor, President of the Senate and the Speaker of House of Representatives.

Arizona Department of Juvenile Corrections (ADJC)

Ongoing GF and OF Changes

Summary of Changes	Source	Comments	FY 2027 Changes
4% Youth Correctional Officer Stipend	GF		800,000

Major Footnote Changes

73. Specifies that the lump sum appropriation to ADJC includes funding sufficient to convert the onetime stipend for corrections officers equal to four percent of the correctional officer's annual salary as appropriated in FY 2026 into a four percent annual salary increase in FY 2027.

Arizona State Land Department (ASLD)

Ongoing GF and OF Changes

Summary of Changes	Source	Comments	FY 2027 Changes
Central Arizona Project Fees Technical Adjustment	GF		(200,000)

Legislature

Major Footnote Changes

74. Requires the Auditor General to use the $500,000 FY 2027 appropriation for the state employee health plan special audit to contract with an independent third party to conduct the special audit.

75. Requires the special audit to include the state employee health plan's application of best practices in health insurance cost containment and a forensic audit of a sample of claims from FY 2026.

Department of Liquor Licenses and Control (DLLC)

Major Footnote Changes

76. Exempts the $2,900,000 FY 2026 appropriation to modernize DLLC's records system from lapsing until June 30, 2028.

77. Allows the DLLC to use those monies for the implementation of regulations for alternative nicotine products.

Natural Resource Conservation Board

Major Footnote Changes

78. Exempts the $100,000 FY 2026 lump sum appropriation to the Natural Resource Conversation Board from lapsing.

Board of Examiners of Nursing Care Institution Administrators and Assisted Living Facility Managers

Major Footnote Changes

79. Allows the Board of Examiners of Nursing Care Institution Administrators and Assisted Living Facility Managers to use $30,000 to pay outstanding costs of services provided by the ADOA Central Services Bureau in prior years.

Arizona State Parks Board (ASPB)

Major Footnote Changes

80. Exempts the $10,000,000 FY 2024 appropriation for the Veterans Memorial State Park from lapsing until June 30, 2028.

81. Stipulates that, if monies are available for land and water conservation grant funding to ASPB for capital projects in FY 2027, ASPB must report its revised expenditure plans to the Joint Committee on Capital Review and OSPB.

82. Stipulates that, if federal historic preservation fund grant monies are unavailable to the State Historic Preservation Office in federal FY 2027, ASPB may spend up to $1,400,000 from the State Parks Revenue Fund to pay for operating expenses.

83. Requires ASPB, before spending any monies from the State Parks Revenue Fund for the State Historic Preservation Office, to report its expenditure plan to JLBC.

Department of Public Safety (DPS)

Ongoing GF and OF Changes

Summary of Changes

Source

Comments

FY 2027 Changes

Security for Lieutenant Governor

424,000 Ongoing

281,000 Onetime

700,000

Victims of Crime Act Federal Funds Backfill

9,300,000

Major Footnote Changes

84. Exempts the $750,000 FY 2026 appropriation for the Yuma County Family Advocacy Center from lapsing.

85. Requires DPS to enter into a new agreement with the recipient of the monies appropriated for the Yuma County Family Advocacy Center in order to distribute any remaining funding from the appropriation.

86. Exempts the $15,500,000 FY 2027 appropriation for onetime vehicle replacement from lapsing until June 30, 2029.

Arizona Department of Real Estate (ADRE)

Ongoing GF and OF Changes

Summary of Changes	Source	Comments	FY 2027 Changes
IT Project Maintenance Costs	GF		100,000

Major Footnote Changes

87. Specifies that ADRE's lump sum appropriation includes an ongoing increase of $140,100 for maintenance and operations expenses relating to the IT system.

88. Declares the Legislature's intent that the amount for the IT system not be included in the calculation of ADRE's total appropriated budget or otherwise result in the increase of any fee or assessment levied by ADRE.

Arizona Department of Revenue (ADOR)

Major Footnote Changes

89. Allows ADOR to transfer up to $1,500,000 from the state GF in FY 2027 for unclaimed property legal expenses.

Secretary of State (SOS)

Major Footnote Changes

90. Prohibits the SOS from using more than $250,000 appropriated for election services for direct costs.

91. Exempts the $450,000 FY 2025 appropriation for electronic records repository from the Records Services Fund from lapsing until June 30, 2027.

92. States that monies for the Address Confidentiality Program Fund cannot be transferred for a different purpose.

93. Requires the SOS, before spending monies for election services, to submit a report on the expected amount and purpose of expenditures for the costs of the 2026 primary and general elections to the President of the Senate, Speaker of the House of Representatives, JLBC and Director of OSPB.

94. Requires the SOS, by January 31, 2027, to submit a report to JLBC and OSPB detailing the actual expenditures by purpose from the election services for the 2026 primary and general elections.

Arizona Department of Transportation (ADOT)

Major Footnote Changes

95. Allows ADOT to use $73,300 from the State Highway Fund in FY 2027 to pay prior year invoices.

State Treasurer

Ongoing GF and OF Changes

Summary of Changes	Source	Comments	FY 2027 Changes
Justice of the Peace Salary Funding	GF		100,000

Major Footnote Changes

96. Allows the $50,000 FY 2026 appropriation for distribution to Pinal County for signage relating to the prohibition of illegal dumping to also be used to expand and support the Pinal County community cleanup free dump day program, including any operational costs, landfill access fees staffing, public outreach and temporary waste disposal events that are intended to reduce illegal dumping within the unincorporated areas of Pinal County.

Universities

Ongoing GF and OF Changes

Summary of Changes	Source	Comments	FY 2027 Changes
Phase Out of Natural Resource Users Law and Policy Center	GF		(1,600,000)

Major Footnote Changes

97. Requires the Arizona Board of Regents (ABOR) to submit its Arizona Promise Program report by December 1, 2027, rather than October 1, 2027.

98. Declares the Legislature's intent that the School of Civic and Economic Thought and Leadership at Arizona State University, the Economic Policy Institute at Northern Arizona University and the Center for the Philosophy of Freedom at the University of Arizona maintain the same funding level as FY 2026, except the universities may allocate the lump sum reduction of up to 2.5 percent prescribed by the FY 2027 General Appropriations Act.

99. Allows the University of Arizona (U of A) to use up to $1,200,000 of the state GF monies appropriated to its operating lump sum to operate the Arizona perinatal and pediatric psychiatry access hotline.

100. Requires the $500,000 FY 2027 appropriation for water adjudication to be used to assist claimants in the general stream adjudication of water rights.

101. Requires the $500,000 FY 2027 appropriation for AZ REACH to be used to provide medical care transfer services for hospitals with less than 20 beds.

Arizona Department of Veteran Services (ADVS)

Major Footnote Changes

102. Allows ADVS to spend the $1,000,000 FY 2023 appropriation for the Arizona State Veterans' home for tribal members in veterans' homes.

103. FY 2020 Appropriation Adjustment

GF and OF

Agency	Fund	Amount
ADE – High Quality Teacher Professional Development Pilot Program	GF	(344,300)

FY 2021 Appropriation Adjustment

GF and OF

Agency	Fund	Amount
ADE – High Quality Teacher Professional Development Pilot Program	GF	(400,000)

FY 2022 Appropriation Adjustment

GF and OF

Agency	Fund	Amount
ADE – High Quality Teacher Professional Development Pilot Program	GF	(400,000)
ADOA – Retirement of Defeasance of Financing Agreements	GF	(5,037,800)

FY 2024 Appropriation Adjustment

GF and OF

Agency	Fund	Amount
ADE – Live, Remote Instructional Courses	GF	(100,000)

FY 2025 Appropriation Adjustments

GF and OF

Agency	Fund	Amount
ADE – Live, Remote Instructional Courses	GF	(100,000)

104. FY 2026 Supplemental Appropriations and Adjustments

GF and OF

Agency	Fund	Amount
AHCCCS – Formula	GF	104,728,400
ADCRR – Operating Costs	GF	4,100,000
ADVS – State Homes for Veterans Trust Fund for Operating Costs	GF	3,000,000
DES – Formula – Developmental Disabilities Expenditure Authority	GF	82,818,700
DES – Summer Food Benefits (exempt from lapsing)	GF	1,761,800
DPS – Operating Expenses (exempt from lapsing)	OF	4,750,000
ADE – Basic State Aid (BSA) Formula	GF	(31,859,000)
Maricopa Community College District – Wrestling Scholarships	GF	(250,000)

105. Appropriates $2,018,700 from the state GF in FY 2025 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 2024; and

d) to pay interest owed from prior-year disallowed costs.

106. 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.

107. Appropriates $4,000,000 from the state GF in FY 2026 to the SOS for costs of the 2026 primary and general elections.

108. Exempts the $4,000,000 FY 2027 appropriation to the SOS from lapsing.

DES

109. Allows DES, beginning April 1, 2027, to use up to $25,000,000 from the Budget Stabilization Fund (BSF) to provide funding for reimbursement grants.

110. Requires DES, before using the BSF monies, to notify the Director of JLBC and the Director of OSPB.

111. 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.

112. Prohibits the BSF appropriation from being used for additional programmatic expenditures.

FY 2027 Lump Sum Reductions

113. Reduces the following budget units' FY 2027 lump sum appropriation by the following amounts:

Agency	Amount
ADOA	(235,200)
ADOA – SFD	(40,600)
Office of Administrative Hearings	(24,600)
AZDA	(390,500)
AG	(610,000)
Arizona State Board for Charter Schools	(70,300)
Arizona Commerce Authority (ACA)	(250,000)
Office of Economic Opportunity	(13,300)
State Board of Education	(80,600)
ADE	(343,500)
DEMA	(150,200)
State Board of Equalization	(18,400)
Board of Executive Clemency	(37,100)
Governor's Office	(203,600)
OSPB	(71,400)
Arizona Historical Society	(59,900)
Prescott Historical Society	(26,900)
Judiciary – Arizona Supreme Court	(364,000)
Judiciary – Court of Appeals	(638,800)
Judiciary – Superior Court	(123,000)
ASLD	(265,600)
Legislature – JLBC	(76,800)
Legislature – Legislative Council	(235,600)
Legislature – Ombudsman Citizens Aide	(40,200)
Legislature – Senate	(451,600)
Legislature – House of Representatives	(544,900)
State Mine Inspector	(39,700)
Arizona Navigable Stream Adjudication Commission	(3,600)
ADRE	(78,000)
ADOR	(1,255,500)
SOS	(338,500)
State Board of Tax Appeals	(8,000)
Office of Tourism	(182,100)
State Treasurer	(8,600)
Governor's Office of Tribal Relations	(1,700)
ABOR	(82,300)
Arizona State University (ASU)	(8,096,000)
Northern Arizona University (NAU)	(2,624,500)
U of A – Main Campus	(4,725,900)
U of A – Health Sciences Center	(1,027,700)

114. Reverts the $5,000,000 FY 2024 and the $6,000,000 FY 2025 appropriations to the State Treasurer for purchasing ballot paper to the state GF on July 31, 2026.

Debt Service Payments

115. Allocates $26,997,100 of state GF revenue in FY 2027 to the Arizona Convention Center Development Fund.

116. Asserts that the Rio Nuevo Multipurpose Facility District is estimated to receive $19,000,000 from a portion of state transaction privilege tax revenues in FY 2027 and that the actual amount of distribution will be made as outlined in statute.

Fund Transfers

117. Transfers the following amounts, by June 30, 2026, from the following fund sources to the state GF for the purposes of providing adequate support and maintenance for state agencies:

Fund	Comments	Amount
ADOA – Risk Management Fund		6,100,000
ADOA – Construction Insurance Fund		5,500,000
ADOA – Co-Op State Purchasing Fund		3,000,000
ACA – Competes Fund		10,000,000
Arizona Corporation Commission – Securities Regulatory and Enforcement Fund		14,700,000
Arizona Corporation Commission – Utility Regulation Revolving Fund		3,400,000
Arizona Department of Environmental Quality (ADEQ) – Recycling Fund		1,500,000
ADEQ – Underground Storage Tank Revolving Fund		2,400,000
Arizona Game and Fish Department (AZGFD) – Heritage Land Acquisition Fund		5,000,000
AZGFD – Watercraft Licensing Fund		3,400,000
Industrial Commission of Arizona – Administrative Fund		6,700,000
DIFI – Automobile Theft Authority Fund		3,800,000
DIFI – Financial Services Fund		3,300,000
Judiciary – Arizona Supreme Court – Judicial Collection Enhancement Fund		8,000,000
ASLD – Trust Land Management Fund		9,000,000
ASPB – State Parks Revenue Fund		8,600,000
ADOT – State Match Advantage for Rural Transportation Fund		6,700,000
ADOT – Motor Vehicle Liability Insurance Enforcement Fund		15,000,000
ADOT – Vehicle Inspection and Certification Enforcement Fund		3,500,000
Water Infrastructure Finance Authority – Water Supply Development Revolving Fund		20,000,000

118. Transfers $9,700,000, by July 1, 2027, from the State Highway Fund to the state GF in FY 2027 for the purposes of providing adequate support and maintenance for state agencies.

119. 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

120. 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.

121. 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 ADCRR Opioid Remediation Fund.

122. Requires ADCRR 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.

123. Prohibits the AG from imposing any conditions on the transfer of the monies in the ADCRR Opioid Remediation Fund.

124. 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 ADCRR Opioid Remediation Fund.

125. Exempts the AG monies from lapsing.

126. Continues to defer $800,727,700 in BSA and additional state aid (ASA) payments from ADE in FY 2026 until after June 30, 2027, but not later than July 12, 2027, and excludes charter schools and school districts with a student count of less than 4,000 pupils from the deferral.

127. Requires ADE to make the deferral by reducing the apportionment of state aid for each month in the fiscal year by the same amount.

128. Requires ADE to disburse the FY 2028 appropriations of $800,727,700 to the counties for the school districts between July 1, 2027, and July 12, 2027, in amounts equal to the reductions in the apportionment of BSA and ASA.

129. 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.

Additional FY 2027 Appropriations and Adjustments

130. Appropriates $250,000 from the state GF in FY 2027 to ADE for the purposes of issuing a grant to a single Arizona school that offers instruction to grades 6 through 12 and incorporates wrestling into its mission.

131. Appropriates the following amounts from the Peace Officer Training Equipment Fund in FY 2027 to the State Treasurer to distribute to the following entities for public safety training simulators:

a) $354,000 to ADCRR;

b) $354,000 to the City of Flagstaff;

c) $684,000 to the Yavapai County Sheriff's Office; and

d) $354,000 to the Glendale Police Department.

132. Appropriates the following amounts from the Peace Officer Training Equipment Fund in FY 2027 to the State Treasurer to distribute to the following entities for fire incident management efforts:

a) $49,700 to the Pinetop Fire District;

b) $145,700 to the Vernon Fire District;

c) $99,400 to the Surprise Fire Department;

d) $160,900 to the Gilbert Fire and Rescue Department;

e) $49,700 to the Buckeye Fire Department;

f) $132,500 to the Goodyear Fire Department;

g) $49,700 to the Daisy Mountain Fire District;

h) $552,400 to the Chandler Fire Department; and

i) $261,000 to the Superstition Fire Department.

133. Appropriates the following amounts from the Peace Officer Training Equipment Fund in FY 2027 to the State Treasurer to distribute to the following entities for records management software:

a) $349,500 to DPS;

b) $171,800 to the Pima County Sheriff's Office;

c) $64,900 to the U of A Police Department;

d) $99,800 to the Graham County Sheriff's Office;

e) $67,000 to the Oro Valley Police Department;

f) $65,000 to the Marana Police Department;

g) $500,000 to the Pinal County Sheriff's Office;

h) $220,000 to the Maricopa County Sheriff's Office;

i) $64,900 to the ASU Police Department;

j) $55,000 to the Paradise Valley Police Department;

k) $100,000 to the Phoenix Police Department;

l) $125,900 to the Scottsdale Police Department;

m) $189,700 to the Tempe Police Department;

n) $65,900 to the Buckeye Police Department;

o) $215,800 to the Mesa Police Department;

p) $111,700 to the Chandler Police Department;

q) $83,900 to the Peoria Police Department;

r) $69,200 to the Goodyear Police Department;

s) $72,500 to the Avondale Police Department;

t) $55,000 to the El Mirage Police Department;

u) $102,000 to the Gilbert Police Department;

v) $47,800 to the Coconino County Sheriff's Office;

w) $52,800 to the Northern Arizona University Police Department;

x) $82,500 to the Flagstaff Police Department;

y) $81,000 Yavapai County Sheriff's Office;

z) $50,000 to the Prescott Police Department;

aa) $50,000 to the Prescott Valley Police Department;

bb) $200,000 to the Cochise County Sheriff's Office;

cc) $55,900 to the Navajo county Sheriff's Office;

dd) $38,600 to the Winslow Police Department;

ee) $25,000 to the Snowflake Taylor Police Department;

ff) $21,700 to the Pinetop Lakeside Police Department;

gg) $20,000 to the Holbrook Police Department;

hh) $21,700 to the Show Low Police Department;

ii) $200,000 to the Mohave County Sheriff's Office;

jj) $65,000 to the Gila County Sheriff's Office;

kk) $38,000 to the Payson Police Department;

ll) $20,000 to the Miami Police Department;

mm) $25,000 to the Globe Police Department;

nn) $89,900 to the La Paz County Sheriff's Office; and

oo) $44,900 to the Greenlee County Sheriff's Office.

134. Appropriates $150,000 from the Peace Officer Training Equipment Fund to the State Treasurer to distribute to the Town of Paradise Valley for law enforcement equipment purchases.

Automation Projects Fund (APF)

135. Appropriates the following amounts in FY 2027 from the APF subaccounts to ADOA for the following automation and information technology projects:

Project	Subaccount	Amount
ADOR Integrated Tax System Modernization	ADOR Subaccount	3,656,800
Medicaid Enterprise System Mainframe – Modernization	Medicaid Enterprise System Modernization Subaccount	12,940,000
ADOR Mainframe – Migration	ADOR Subaccount	1,425,000
Arizona Medical Board Website – Modernization	Arizona Medical Board Subaccount	150,000

136. Requires ADOA to submit a quarterly report to JLBC on implementing projects approved by the ITAC that includes the project expenditures, deliverables, timeline for completion and current status.

137. Exempts the FY 2027 appropriations from the APF from lapsing until June 30, 2028.

138. Extends the lapsing date for the following appropriations:

a) $19,456,800 from the APF to ADOR to implement the Integrated Tax System Modernization Project until July 1, 2027;

b) $3,396,000 from the APF to ADOA to replace the Medicaid Enterprise System Mainframe until July 1, 2027;

c) $494,500 from the APF to DPS to replace the concealed weapons tracking system until July 1, 2027;

d) $6,700,000 from APF to ADOA for a new information technology platform until July 1, 2027; and

e) $2,814,600 from APF to ADOA for the development of several modules associated with the Medicaid Enterprise System Mainframe replacement until July 1, 2027.

Statewide Operating Adjustments

GF and OF

Area of Adjustment	GF	OF	Total
Employer Health Insurance Contribution Reduction	(194,788,900)	(45,876,400)	(240,665,300)
Employer Health Insurance Contribution Rate 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	1,964,200	1,000,000	2,964,200
Agency Risk Management Reduction	(19,999,610)	(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
Accounting System Charge	1,260,300	1,500,000	2,760,300

139. Prescribes statewide adjustments procedures and instructions.

140. Outlines the FY 2027 individual agency charges totaling $1,798,500 for general agency counsel provided by the AG.

Miscellaneous

141. 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.

142. Contains other reporting requirements.

143. Defines terms.

144. Becomes effective on signature of the Governor.

Prepared by Senate Research

June 9, 2026

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