Assigned to APPROP & FIN FOR
COMMITTEE
Assigned to APPROP & FIN FOR
COMMITTEE
ARIZONA STATE SENATE
Fifty-Third Legislature, Second Regular Session
state budget; estimates; notice
Purpose
Requires the Office of Strategic Planning and Budgeting (OSPB) and the Joint Legislative Budget Committee (JLBC) to calculate a truth-in-spending estimate for General Fund (GF) spending for each Fiscal Year (FY).
Background
JLBC currently has a process to calculate and distribute an estimate of the available budget for the upcoming FY. Additionally, the JLBC and OSPB currently provide revenue projections for the three upcoming FY's. JLBC uses four econometric models for those projections: JLBC, Finance Advisory Committee (FAC), and base and low University of Arizona econometric models.
JLBC compiles and distributes an analysis of the Governor's proposed budget (A.R.S. § 41-1273). JLBC also consults with the OSPB to provide an estimate of the appropriations limit imposed by Article IX, Section 17, Constitution of Arizona (A.R.S. § 41-1273.)
The Economic Estimates Commission (EEC) publishes an expenditure limitations report each fiscal year (A.R.S. § 41-1279.07). The EEC also determines the maximum available state tax revenue (A.R.S. § 41-562).
There is no anticipated fiscal impact to the state General Fund (GF) associated with this legislation, unless an increase or decrease in revenue and spending results from passage of the legislation.
Provisions
1.
Requires the OSPB and the JLBC to
jointly determine a truth-in-spending estimate for the following FY and
transmit it to the Governor, Speaker of the House of Representatives, President
of the Senate, and Chairpersons of the Senate and House Appropriations
committees.
2. Directs the OSPB and JLBC to calculate the truth-in-spending estimate by taking the total GF appropriations for the current FY and multiplying it by one plus the sum of the following percentages:
a) percent change in population; and
b) percent change in the GDP Price Deflator.
3.
Stipulates that if the total GF
appropriation for the current FY is less than that of the previous FY, the
truth-in-spending estimate shall be calculated by multiplying the current
year's truth-in-spending estimate by 1.06 percent.
4. Instructs the Legislature to post, within 24 hours of the bill's passage, a hearing notice prominently on its website, for at least six months, if the Legislature passes an appropriations bill that raises GF spending over the truth-in-spending estimate. The notice shall read:
Notice of spending increase above the truth-In-spending estimate
In compliance with section 41-1275, Arizona Revised Statutes, the State Legislature is notifying taxpayers that a budget that exceeds the truth-in-spending estimate, which is defined as the amount of general fund appropriations for the current fiscal year adjusted by the growth in population and inflation, passed both houses of the legislatures on (DATE). The proposed spending increase in the amount of general fund appropriations is (PERCENT), while the truth-in-spending estimate projected the proposed spending increase to be (PERCENT). This increase may include spending that is court ordered or otherwise mandated and not subject to legislative discretion.
5. Requires the OSPB and JLBC to jointly consider previous appropriations when calculating the current FY's truth-in-spending estimate.
6. Requires that if the Directors of the JLBC and OSBP cannot agree on a truth-in-spending estimate on or before February 15, the truth-in-spending estimate transmission to the Legislature shall include both Director estimates, and the notice to the public shall include the average of the two estimates.
7. Instructs the House and Senate to remove the notice from each website if the Governor vetoes or line-item vetoes an appropriations bill or part of an appropriations bill with GF appropriations that exceed the truth-in-spending estimate.
8. Stipulates that the General Appropriations Act shall accurately portray the total GF appropriations for the next FY and the truth-in-spending estimate for that FY.
9. Defines GDP implicit price deflator as the average of the four quarterly values for a calendar year as reported by the United States Bureau of Economic Analysis, or its successor agency.
10. Defines general fund appropriation as the sum of all the appropriations from the state GF that are contained in the general appropriations and capitol appropriation bills and for a particular FY.
11. Exempts from inclusion in the sum of GF appropriations the following:
a) One-time GF appropriation for repayment of a deferral from a prior Fiscal Year;
b) Payments of any principal owed by this state to a lender above that required by any regular debt service schedule;
c) Deposits into the Budget Stabilization Fund; or
d) Monies appropriated for the following:
i. Relief to natural disasters;
ii. Emergency mobilization of the Arizona National Guard;
iii. Combating invasions of the state;
iv. Public health emergencies;
v. Flood relief;
vi. Wildland fire emergencies;
vii. Water emergencies;
viii. Agricultural emergencies;
ix. Air quality emergencies;
x. Combating cyber-attack emergencies;
xi. Radiological emergencies;
xii. Hazardous waste emergencies;
xiii. Public utility emergencies;
xiv. Relief to municipalities subjected to civil disturbances;
xv. Public safety expenditures per the result of civil unrest;
xvi. Nuclear emergencies; and
xvii.
Federal emergencies.
12. Becomes effective on the general effective date.
House Action
APPROP 1/31/18 DP 7-5-0-1
3rd Read 2/20/18 34-25-1
Prepared by Senate Research
March 1, 2018
CS/BR/lat