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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
capital outlay; appropriations; 2021-2022
Purpose
Makes statutory and session law changes relating to capital outlay necessary to implement the FY 2022 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.
For the purposes of capital management and planning, the state is divided into three building systems: 1) the Arizona Department of Administration (ADOA) Building System; 2) the Arizona Department of Transportation (ADOT) Building System; and 3) the Arizona Board of Regents (ABOR) Building System. Capital appropriations are typically made through the Capital Outlay Act but may be made through other bills as well.
Building renewal appropriations provide for the major maintenance and repair of state-owned buildings. The appropriations are based on support of a formula determined by the Joint Committee on Capital Review (JCCR). The formula accounts for the replacement value, age and life-cycle of a building.
S.B. 1820 contains the budget reconciliation provisions for changes relating to capital outlay.
Provisions
Building Renewal
1. Appropriates the following amounts in FY 2022 to the following state agencies from the specified funds for major maintenance and repair activities for state buildings:
|
Fund Source |
Amount |
% of Formula |
|
|
ADOA |
state General Fund (state GF) |
$6,200,000 |
49.2% |
|
Capital Outlay Stabilization Fund (COSF) |
$18,000,000 |
||
|
Arizona Department of Corrections (ADC) |
state GF |
$22,205,800 |
100% |
|
ADC Building Renewal Fund |
$5,864,300 |
||
|
Agency |
Fund Source |
Amount |
% of Formula |
|
Arizona Game and Fish Department (AZGFD) |
AZGFD Fund |
$1,215,800 |
100% |
|
Arizona State Lottery Commission |
State Lottery Fund |
$152,800 |
100% |
|
ADOT |
State Highway Fund |
$15,400,000 |
100% |
|
State Aviation Fund |
$310,400 |
2. Requires ADOA to allocate monies to state agencies for necessary building renewal.
3. Reduces the ADOA appropriation for building renewal by the difference between the amount appropriated and the balance in the COSF, if monies in the COSF are insufficient to fund the appropriation.
4. Allows the ADOA to use monies appropriated for building renewal in FY 2022 to retrofit facilities for space consolidation initiatives.
5. Requires ADOA, by November 30, 2021, and May 31, 2022, to report to the Joint Legislative Budget Committee (JLBC) on the status of all capital projects and expenditures.
6. Prohibits ADC from spending any monies from the appropriation on personal services or overhead expenses related to managing projects funded by the appropriation.
8. Requires ADOT, by November 30, 2021, and May 31, 2022, to report to JLBC on the status of all non-highway construction capital projects and expenditures.
Capital Projects
10. Appropriates the following amounts in FY 2022 to the following state agencies from the specified Funds for capital projects:
|
Agency |
Purpose |
Fund |
Amount |
|
Legislative Council |
Restoration and renovation of the historical capitol building |
state GF and Legislative, Executive and Judicial Public Buildings Land Fund |
$11,900,000 |
|
ADOA |
Demolition and conversion of state-owned buildings on West Jefferson Street |
state GF |
$2,800,000 |
|
Agency |
Purpose |
Fund |
Amount |
|
ADOA |
Replacement of air handler units at the House of Representatives (House) and Senate Buildings |
state GF |
$3,500,000 |
|
ADOA |
Distribution to the Town of Taylor for capital improvements to the Taylor rodeo arena |
state GF |
$1,000,000 |
|
ADOA |
Distribution to a nonprofit organization designated as an international dark sky discovery center for capital costs |
state GF |
$2,500,000 |
|
Attorney General (AG) |
Deferred maintenance of AG building at South 15 Avenue |
Collection Enforcement Revolving Fund |
$4,000,000 |
|
Arizona State Schools for the Deaf and Blind (ASDB) |
Replacement of classroom notification system at the Tucson campus |
Schools for the Deaf and Blind Fund |
$150,000 |
|
Department of Emergency and Military Affairs (DEMA) |
Fire Suppression system upgrades and roof replacement at DEMA facilities |
state GF and Military Installation Fund |
$1,118,100 |
|
DEMA |
Distribution to Yuma County for military installation preservation and enhancement projects |
state GF |
$5,000,000 |
|
Arizona Exposition and State Fair Board (AESFB) |
Capital improvements |
state GF |
$1,000,000 |
|
AESFB |
Replacement of fire alarm system in the Arizona Veterans Memorial Coliseum on the state fair grounds |
state GF |
$1,000,000 |
|
AZGFD |
Dam maintenance |
Capital Improvement Fund |
$150,000 |
|
AZGFD |
Property maintenance |
Capital Improvement Fund |
$300,000 |
|
AZGFD |
Hatchery maintenance |
Capital Improvement Fund |
$400,000 |
|
AZGFD |
Hatchery capital renewal |
Game and Fish Fund |
$2,600,000 |
|
Department of Health Services (DHS) |
Demolition of unused buildings on the Arizona State Hospital (ASH) campus |
state GF and State Hospital Land Fund |
$2,000,000 |
|
Arizona Department of Juvenile Corrections (ADJC) |
Replacement of doors in four units at the Adobe Mountain School Facility |
State Charitable, Penal and Reformatory Institutions Land Fund |
$2,500,000 |
|
Agency |
Purpose |
Fund |
Amount |
|
Capital improvements |
State Parks Revenue Fund |
$2,396,700 |
|
|
ASPB |
Construction of an amphitheater building at Dead Horse Ranch State Park |
State Parks Revenue Fund |
$150,000 |
|
ASPB |
Replacement of the roof of the discovery center building at Kartchner Caverns State Park |
State Parks Revenue Fund |
$450,000 |
|
ASPB |
Replacement of fire suppression system at Red Rock State Park |
State Parks Revenue Fund |
$126,000 |
|
ASPB |
Replacement of maintenance building at Red Rock State Park |
State Parks Revenue Fund |
$435,200 |
|
ASPB |
Construction of a new day-use park at the Rockin' River Ranch Park |
State Parks Revenue Fund |
$750,000 |
|
Arizona Pioneers' Home |
Capital improvements to the Arizona Pioneers' Home |
Pioneers' State Charitable Earnings Land |
$353,100 |
|
Department of Public Safety (DPS) |
Construction of a wellness and training center |
Arizona Highway Patrol Fund |
$3,000,000 |
|
Arizona Department of Veterans' Services (ADVS) |
Construction of a veterans' home facility in Northwest Arizona |
state GF |
$25,000,000 |
|
ADOT |
Construction of new liquid brine tanks in Globe, Show Low, Prescott Valley and Keams Canyon |
State Highway Fund (SHF) |
$1,950,000 |
|
ADOT |
Replacement of vehicle fueling facilities in Flagstaff, Holbrook and Kingman |
SHF |
$1,800,000 |
|
ADOT |
Construction of new maintenance facilities in Wickenburg |
SHF |
$3,150,000 |
11. Appropriates $25,564,400 in FY 2022 to ADC for fire and life safety upgrades at the Eyman state prison complex from the following funds:
a) $10,000,000 from the state GF;
b) $3,767,400 from the Arizona Correctional Industries Revolving Fund;
c) $447,800 from the Special Services Fund;
d) $1,349,200 from the Inmate Store Proceeds Fund; and
e) $10,000,000 from the Prison Construction and Operations Fund.
12. Asserts the appropriation made to ADVS is intended to be the state's share of the costs of the veterans' home facility.
13. Prohibits ADVS from spending the capital project monies unless the U.S. government commits to funding at least 65 percent of the total costs.
14. Requires ADVS to submit the proposed site location in the Northwestern portion of Arizona to the ADVS Advisory Commission for approval and provide the Commission with a feasibility analysis of suitable sites to consider when approving the site location.
15. Requires DEMA, by July 31, 2022, and July 31, 2023, to report to JCCR on the status of expenditures and progress in relocating the Yuma Fairgrounds.
16. Requires ASPB, by November 30, 2021, and May 31, 2022, to report to JLBC on the status of all capital projects and expenditures.
17. Requires the AG, ADOA, ADC, DPS, AESFB, ADJC, ASPB, ADOT and ADVS to provide the scope, purpose and estimated cost of specified projects to JCCR for its review prior to spending the appropriation.
18. Exempts specified ADOT, ADOA, DEMA, ASDB, AZGFD, ASPB, DHS, Arizona Pioneers' Home and Legislative Council capital projects from individual review by the JCCR.
19. Reverts unexpended appropriations for capital projects on June 30, 2023, back to the fund from which they were appropriated, unless otherwise specified.
20. Specifies that the monies from the $1,950,000 appropriation to ADOT for construction of new liquid brine tanks and the $1,800,000 appropriation to ADOT for replacement of vehicle fueling facilities that remain unexpended on June 30, 2024, revert to the fund from which the monies were appropriated.
21. Exempts the $5,000,000 appropriation to DEMA from lapsing until the purpose for which the appropriation was made has been accomplished or abandoned or the appropriation stands unexpended or unencumbered for a full fiscal year.
22. Exempts the $25,000,000 appropriation to ADVS and $11,900,000 appropriation to Legislative Council for capital projects from lapsing.
ADOT Statewide Highway Construction
23. Appropriates $161,832,000 in FY 2021 from the state GF to ADOT for specified highway projects:
|
Project |
Amount |
|
Repave State Route 69 in Prescott Valley |
$4,700,000 |
|
Improve U.S Route 95 near Yuma proving ground |
$10,000,000 |
|
Repave State Route 95 in Mohave County |
$46,700,000 |
|
Study options for expanding the on and off ramps at the intersection of Grand Avenue and State Route 303 |
$150,000 |
|
Construct an overpass at Riggs Road and State Route 347 |
$25,000,000 |
|
Study an overpass at Riggs Road and State Route 347 |
$2,500,000 |
|
Project |
Amount |
|
Final design plan, right-of-way and easements for an overpass at Riggs Road and State Route 347 |
$7,500,000 |
|
Study the north/south corridor in Pinal county |
$4,000,000 |
|
Improve drainage on 67th Avenue in Peoria |
$8,500,000 |
|
Widen Camelback Road between State Route 303 and Litchfield Road in Goodyear |
$8,000,000 |
|
Study and design concept report for the repair of State Route 88 |
$700,000 |
|
Repair and maintain 24th Avenue in Safford |
$1,032,100 |
|
Improve Tangerine Road near Interstate 10 in Marana |
$5,000,000 |
|
Construct a bridge and extend Ocotillo Road in Gilbert |
$7,900,000 |
|
Repair State Route 186 and State Business Route 10 in Wilcox |
$3,500,000 |
|
Replace Butte Avenue bridge in Florence |
$1,000,000 |
|
Improve Main Street in Jerome |
$560,000 |
|
Rehabilitate pavement along State Route 77 near Oro Valley |
$13,600,000 |
|
Improve State Route 90 near Fort Huachuca |
$10,600,000 |
|
Improve State Route 87 - local match |
$750,000 |
|
Study guard rail - shoulder of State Route 377 from Holbrook to Heber |
$140,000 |
24. Appropriates $109,120,800 in FY 2021 from the state GF to ADOT for pavement rehabilitation along the following roads:
|
Location |
Amount |
|
Interstate 40 in Apache County |
$11,430,400 |
|
U.S Route 191 in Cochise County |
$3,735,800 |
|
Interstate 40 in Coconino County |
$9,140,300 |
|
U.S Route 89 in Coconino County |
$10,331,900 |
|
State Route 260 in Gila County |
$10,207,200 |
|
U.S Route 70 in Graham County |
$5,306,700 |
|
U.S Route 191 in Greenlee County |
$12,126,200 |
|
State Route 95 in La Paz County |
$690,000 |
|
State Route 95 in Mohave County |
$4,194,100 |
|
Interstate 40 in Navajo County |
$6,413,000 |
|
State Route 264 in Navajo County |
$3,948,200 |
|
U.S Route 60 in Pinal County |
$7,318,600 |
|
State Route 87 in Pinal County |
$8,254,400 |
|
U.S Route 93 in Yavapai County |
$2,263,700 |
|
Location |
Amount |
|
State Route 69 in Yavapai County |
$2,243,600 |
|
Interstate 8 in Yuma County |
$7,119,200 |
|
U.S Route 95 in Yuma County |
$4,397,500 |
25. Appropriates $50,000,000 from the state GF in FY 2021 to ADOT to widen Interstate 10 (I-10) between Phoenix and Casa Grande.
26. Reverts the $50,000,000 appropriation made to ADOT for I-10 widening on June 30, 2022, if ADOT does not secure the right of way agreements necessary for the project by June 30, 2022.
27. Allows ADOT to use the monies to secure the right of way agreements, but prohibits any construction until all right of way agreements for the project are secure.
28. Reverts the $50,000,000 appropriation made to ADOT for I-10 widening on June 30, 2023 if:
a) ADOT secures federal funding for the project by June 30, 2022; and
b) the right of way agreements necessary for the project are not obtained by June 30, 2023.
30. Appropriates balances and collections in the SHF that exceed the amount appropriated by the General Appropriations Act and the Capital Outlay Budget Reconciliation Act to ADOT for authorized purposes.
31. Requires ADOT, by November 1, 2021, to report to the Directors of JLBC and the Governor's Office of Strategic Planning and Budgeting (OSPB) on:
a) ADOT's actual prior year, estimated current year and upcoming budget year highway construction expenses from all fund sources;
b) capital outlay information for FYs 2021, 2022 and 2023; and
c) ADOT's estimated outstanding debt principal balance at the end of FY 2023 and the estimated debt service payment amounts for FYs 2023, 2024, 2025 and 2026.
32. Requires ADOT's highway construction expenses report to:
a) include appropriated monies, federal monies, local agency monies, state highway monies, bond proceeds and regional area road monies; and
b) be in the same format as the prior year, unless modifications have been approved by the Directors of JLBC and OSPB.
33. Requires ADOT's reported capital outlay information to be in the same format as tables two, three and six of the FY 2021 Appropriations Report.
34. Requires ADOT's estimated outstanding debt principal balance and estimated debt service payment report to include SHF state construction bonds, Arizona Highway User Revenue Fund bonds, Maricopa Association of Governments and Pima Association of Governments controlled access bonds, Maricopa Regional Area Road Fund bonds and grant anticipation notes.
35. Directs ADOT's estimated outstanding debt principal balance and estimated debt services payment report to be comparable to the information in the FY 2021 Appropriations Report.
36. Exempts the FY 2022 appropriation to ADOT for state highway construction and the FY 2021 appropriations to ADOT for state highway projects and pavement rehabilitation from:
a) review by the JCCR; and
ADOT Airport Planning and Development
37. Appropriates $18,000,000 from the state GF to the State Aviation Fund in FY 2021 to plan, construct, develop and improve state, county and municipal airports.
39. Appropriates any balances and collections in the State Aviation Fund that exceed the amount appropriated by the General Appropriations Act and the Capital Outlay Budget Reconciliation Act to ADOT for authorized purposes.
40. Requires ADOT, by December 31, 2021, to report to JLBC on the status of all aviation grant awards and distributions and requires the report to delineate projects by individual airport and fiscal year, including future fiscal year commitments.
41. Exempts the appropriation to ADOT for airport planning and development from:
a) JCCR review; and
b) lapsing until the purpose for which the appropriation was made has been accomplished or abandoned or the appropriation stands unexpended or unencumbered for a full fiscal year.
Miscellaneous
42. Specifies that the FY 2019 appropriation to DEMA for construction of a readiness center that remains unexpended on June 30, 2026 reverts to the fund from which it was appropriated.
43. Specifies that the FY 2020 appropriation to DEMA for construction of a readiness center that remains unexpended on June 30, 2026 reverts to the fund from which the monies were appropriated.
44. Exempts the following FY 2020 appropriations from lapsing until June 30, 2022:
a) $17,000,000 to ADOA for building renewal;
b) $1,000,000 to ADOA for capitol mall air handler units;
c) $414,000 to the Arizona Pioneers' Home for capital improvements; and
d) $2,300,000 to ADOT for construction of maintenance buildings in Seligman and Williams.
45. Exempts the $4,600,000 appropriation to ADOT in FY 2020 for construction of maintenance facilities in Wickenburg from lapsing until June 30, 2023.
46. Allows ADOA to spend up to five percent of all capital outlay appropriations to ADOA designated to state agencies on project management expenditures for project management of building renewal and capital projects.
47. Prohibits ADOA from spending any other capital outlay appropriations on personal services or employee-related expenditures or for maintenance contracts on building components and equipment without review by JCCR.
48. Prohibits the use of capital outlay budget reconciliation monies from being spent for personal services or employee-related expenditures of state employees, except for services provided as part of the Inmate Construction Program for correctional facilities.
49. Requires JCCR to review the scope, purpose and estimated cost of a new capital project that has an estimated cost of more than $250,000.
50. Becomes effective on the general effective date.
Prepared by Senate Research
May 24, 2021
LMM/DH/gs