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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
transportation; 2026-2027.
Purpose
Makes statutory changes relating to transportation 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.
S.B. 1862 contains the budget reconciliation provisions for changes relating to transportation
Provisions
1. Requires the Arizona Department of Transportation (ADOT) to allocate and transfer $2.5 million of revenues from the Highway User Revenue Fund (HURF) to the State Match Advantage for Rural Transportation Fund by June 15 of each fiscal year.
2. Repeals the requirement that ADOT allocate and transfer $1 million of revenues from HURF to the Economic Strength Project Fund by June 15 of each fiscal year.
3. Repeals the Economic Strength Project Fund on July 1, 2035.
4. Makes technical and conforming changes.
5. Becomes effective on the general effective date.
Prepared by Senate Research
June 8, 2026
LMM/KS/hk