ARIZONA
HOUSE OF REPRESENTATIVES
|
HB 2667: budget procedures; budget reconciliation; 2018-2019. |
||
|
PRIME SPONSOR: Representative Mesnard (with permission of committee on Rules), LD 17 BILL STATUS: Caucus & COW |
|
|
Relating to budget procedures for
implementing the
FY 2019 state budget.
Provisions
Arizona Department of Administration (ADOA)
1. Requires ADOA to annually collect a report from each budget unit that contains the number of FTE's and the total amount of salaries for each budget unit for the previous fiscal year, which must be delineated by retirement system, employee tier and fund source.
a. Requires ADOA to annually submit this information to JLBC and OSPB by October 1. (Sec. 27)
2. Requires the Director of ADOA to establish a separate subaccount in the Automation Projects Fund for each agency that implements, upgrades or maintains automation and information technology projects.
a. Specifies that monies in each subaccount are subject to Legislative appropriation.
b. Prohibits monies from being transferred between agency subaccounts. (Sec. 28)
3. Requires the Automation Projects Fund expenditure plan prepared by ADOA to include the project cost, deliverables, timeline for completion and method of procurement. (Sec. 28)
4. Establishes the Capitol Mall Consolidation Fund, consisting of Legislative appropriated monies and administered by ADOA.
a. Requires monies in the Fund to be used for building renewal and renovations of state-owned buildings.
b. Exempts Fund monies from lapsing. (Sec. 31)
5. Requires the Director of ADOA to submit an expenditure plan for review by the Joint Committee on Capitol Review before spending in Capitol Mall Consolidation Fund monies. (Sec. 31)
6. Requires proceeds from the sale of three specified state buildings and land sales to be deposited in the Capitol Mall Consolidation Fund in FY 2019. (Sec. 44)
7. Defines budget unit and employee tier. (Sec. 27)
Governmental Mall
8. Repeals the Legislative Governmental Mall Commission and transfers the Commission's powers and duties to ADOA, including authority relating to the construction of monuments and memorials and development within the governmental mall. (Sec. 33-36)
9. Requires a political subdivision to obtain written approval by the Director of ADOA, rather than the Governmental Mall Commission, before authorizing development or awarding construction contracts within the governmental mall. (Sec. 10)
10. Requires ADOA to submit the State Monument and Memorial annual report to JLBC, rather than the Governmental Mall Commission. (Sec. 37)
11. Requires JLBC to approve any proposed contract or agreement by ADOA with a city or regional public transportation authority for the placement of a light rail station in the governmental mall. (Sec. 30)
Annual & Biennial Budget Units
12. Requires specified budgeting requirements to be performed annually for all budget units, rather than on a biennial basis for specified state departments, commissions, boards, institutions or agencies. (Sec. 11-16)
13. Removes references to annual budget units and biennial budget units, and instead requires the following to be performed each year for every budget unit:
a. The submission by the Governor to the Legislature of:
i. A budget containing a complete plan of expenditure and all monies and revenues estimated to be available for budget units; and
ii. An explanation of all budget unit estimates and recommendations for proposed legislation that the Governor deems necessary to provide sufficient revenues.
b. The submission by the administrative head of each budget unit to the Governor of:
i. Estimates of a budget unit's financial requirements and receipts; and
ii. Performance measures and budgetary data for the prior, current and ensuing fiscal year relating to the operating plan for all programs within the state budget.
c. The preparation and revision by the Governor of a tentative budget report for the next fiscal year for each budget unit. (Sec. 9, 11-16)
14. Requires the format of appropriations for the support and maintenance of state departments and institutions to be made for each fiscal year for all budget units. (Sec. 17)
o Currently, the format of appropriations must be made for each fiscal year for annual budget units and for two fiscal years for all biennial budget units, itemized separately for each year (A.R.S. § 35-121).
Arizona Department of Transportation (ADOT)
15. Requires ADOT to provide a single additional license plate, rather than up to two additional plates, for any vehicle with a special license plate.
a. Requires the Director of ADOT to establish a fee in rule for additional license plates. (Sec. 3)
16. Requires a person to pay a $25 fee for each original license plate, rather than each pair of original license plates. (Sec. 4)
17. Removes the requirement that certain fees be paid for each pair of original former POW license plates, purple heard medical recipient license plates, Pearl Harbor survivor license plates and historic value license plates, and instead requires the fees to be paid on only the original plate. (Sec. 5-8)
Miscellaneous Funds
18. Increases the pro rata share contributed into the Information Technology Fund by all budget units and the Legislative and Judicial branches from .20% of total payroll to .30% of total payroll. (Sec. 2)
19. Increases the Capital Outlay Stabilization Fund rental rates for state owned buildings in FY 2019 to $16.08 per square foot for office space and $5.79 per square foot for storage space. (Sec. 39)
o Laws 2017, Chapter 307 set the rates at $13.08 per square foot for office space and $4.74 per square foot for storage space.
20. Repeals the Pipeline Safety Revolving Fund and transfers all unexpended and unencumbered monies remaining in the Fund to the GF. (Sec. 26)
21. Permits monies in the Personnel Division Fund to be appropriated by the Legislature for the Governor's Office of Equal Opportunity. (Sec. 29)
o Currently, these monies may be appropriated by the Legislature for the state personnel board or the personnel division of the Department (A.R.S. § 41-750)
22. Continues to require any unrestricted federal monies received by the state in FY 2019 to be deposited in the GF and used to pay for essential governmental services. (Sec. 38)
23. Permits the Secretary of State to use FY 2019 appropriations from the Data Processing Acquisition Fund and the Record Services Fund for election services. (Sec. 40)
24. Permits the Arizona Department of Insurance to use monies in the Assessment Fund for Voluntary Plans in FY's 2019 and 2020 to pay for the cost of administering the out-of-network claim dispute resolution process. (Sec. 41)
25. Permits the Arizona Department of Revenue to use its FY 2019 appropriation from the Liability Setoff Program Revolving Fund for general operating expenses. (Sec. 42)
26. Continues to assert that the Legislature is not required appropriate monies to or transfer monies from the Budget Stabilization Fund in FY's 2019, 2020 or 2021. (Sec. 43)
Miscellaneous
27. Requires the Information Technology Authorization Committee to approve or disapprove any proposed IT project involving multiple budget units if the collective project development cost is expected to exceed $1,000,000. (Sec. 1)
o Currently, the Committee must approve or disapprove proposed IT projects that exceed $1,000,000 for any individual budget unit (A.R.S. § 18-121).
28. Requires the following information relating to state retirement systems to be reported by December 1 of each year, rather than December 15th or 31st:
a. The ASRS, EORP, PSPRS and CORP contribution rates for the ensuing FY;
b. The ASRS unfunded actuarial accrued liability, funded status based on the actuarial and market value of assets, the annualized rate of return and 10-year rate of return as of June 30 of the previous FY;
c. The status of EODC and PSPDC;
d. A detailed report of the operation and investment performance of the EODC disability program that includes the contribution rate for the ensuing FY; and
e. The shared cost structure of employees and employers, funding status and rate of return for PSPRS. (Sec. 18-25)
29. Requires OSPB to transmit budget request forms to budget units by July 1, 2018 for the ensuing FY. (Sec. 45)
a. Contains a retroactivity clause. (Sec. 46)
o Currently, the Governor must transmit budget forms to the administrative head of each agency by June 1 (A.R.S. § 35-112).
30. Continues the Joint Legislative Audit Committee until July 1, 2026. (Sec. 32)
31. Makes technical and conforming changes. (Sec. 1, 2,3 5-8, 10-15, 17, 19-23, 29, 30, 32, 34, 35, 36)
Current Law
Annual vs. Biennial Budget Units
Appropriations for the support and maintenance of state departments and institutions are required to be made each fiscal year for annual budget units and for two fiscal years for biennial budget units, which must be itemized separately for each fiscal year (A.R.S. § 35-121). Annual budget units include 15 of the largest state agencies and institutions and biennial budget units include all other departments, commissions, boards, institutions or agencies of the state that receive, expend or disperse state funds or incur obligations against the state (A.R.S. § 35-101). Within five days the Legislature convening its session, the Governor is required to submit a budget containing a complete plan of expenditures and an explanation of the basis of the estimates and recommendations as to proposed legislation that the Governor deems necessary to provide revenues to meet the proposed expenditures. (A.R.S. § 35-111). These budgets must be submitted on an annual or biennial basis, depending upon the type of budget unit. Additionally, the head of each budget unit is required to submit estimates of the financial requirements and receipts of the budget unit on an annual or biennial basis (depending upon the type of budget unit) by September 1 (A.R.S. § 35-113).
Legislative Governmental Mall Commission
The Legislative Governmental Mall Commission is a 10-member Commission consisting of appointees by the Governor, Legislature, Maricopa County and Phoenix, the Director of ADOA and the Chairman of the Historical Advisory Commission. The Commission is required to develop and maintain a long-range general plan, review all planning activities, and approve or disapprove requests for permission to develop structures and award construction contracts within the governmental mall. Additionally, the Commission is charged with approving or disapproving the final design, dimensions and location of monuments and memorials within the mall (A.R.S. §§ 41-1361, 41-1362 & 41-1363). Political subdivisions are prohibited from authorizing development or awarding contracts for construction within the governmental mall without approval by the Commission (A.R.S. § 34-225).
---------- DOCUMENT FOOTER ---------
Fifty-third Legislature HB 2667
Second Regular Session Version 2: Caucus & COW
---------- DOCUMENT FOOTER ---------
