 |
ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
general appropriations act; 2021-2022
Purpose
Makes session law changes relating to general appropriations 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.
The JLBC Baseline includes an estimated of spending necessary to meet requirements of statutory formulas and other obligations (FY 2022 JLBC Baseline).
S.B. 1823 contains the budget provisions for changes relating to general appropriations.
Provisions
FY 2022 Ongoing Fund and Major Footnote Changes
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Permitting Dashboard |
GF |
|
300,000 |
Major Footnote Changes
1. Exempts the FY 2022 appropriation for the ADOA Hoteling Pilot Program from lapsing until June 30, 2023.
2. Exempts $2,000,000 of the FY 2022 Arizona Financial Information System appropriation from lapsing until June 30, 2023.
3. Removes the requirement that ADOA report to the Arizona Department of Transportation by August 1, 2021, on the maintenance savings associated with replacing vehicles with an average of 80,000 miles or more.
Arizona Department of Agriculture
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
State Agriculture Laboratory Scientist |
GF |
1 FTE |
100,000 |
|
Cloud Migration |
GF |
|
1,000,000 |
|
Plant Services Division Salary Increase |
GF |
|
170,000 |
|
Meat Inspection Staff |
GF |
2 FTEs |
220,000 |
|
Salary Increases |
GF |
12 Ag Lab Positions |
300,000 |
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Formula |
GF |
|
(76,100,000) |
|
IT Operating Funding |
GF |
|
3,000,000 |
|
Graduate Medical Education |
GF |
|
(3,000,000) |
|
Elderly/Physically Disabled Provider Rate Increase |
GF |
|
13,300,000 |
|
Prescription Drug Rebate Fund Shift |
GF |
|
(16,700,000) |
|
Newborn Screening |
GF |
|
500,000 |
Major Footnote Changes
4. Reduces the appropriation for supported housing from the federal Medicaid expenditure authority by $60,000,000 if the AHCCCS housing and health opportunities section 1115 waiver amendment is denied by the federal government.
5. Requires AHCCCS, by September 30, 2022, to report to the Joint Legislative Budget Committee (JLBC) on the progress of implementing services specified in the housing and health opportunities section 1115 waiver amendment.
6. Adds e-cigarette enforcement costs as an authorized use of the FY 2022 AHCCCS transfer to the Attorney General.
Major Footnote Changes
7. Requires the $1,000,000 technology company antitrust appropriation to be used to employ or retain attorneys to investigate and pursue enforcement actions against technology companies that engage in anticompetitive, anti-consumer or monopolistic behavior and exempts the appropriation from lapsing.
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Caseworker Salary Increase |
GF |
Step 1 – 11% All Other – 5% |
5,400,000 |
Major Footnote Changes
8. Removes the JLBC review requirement relating to transfers of appropriated amounts within the Comprehensive Health Program.
9. Requires DCS, by December 31, 2021 and June 30, 2022, to submit a report to JLBC on the progress made on the caseload standard and reducing the number of backlog cases and out-of-home children, rather than requiring a quarterly report for JLBC review.
Community Colleges
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Rural Community College Aid |
GF |
By Student Count |
14,000,000 |
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Braille Program |
GF |
|
250,000 |
|
Florence Bed Closure/Shift |
GF |
|
18,700,000 |
|
Correctional Officer Salary Increase |
GF |
5% |
30,700,000 |
|
New Corporal Classification |
GF |
|
1,600,000 |
|
Transition Program |
GF |
|
1,300,000 |
|
Contracted Increases |
GF |
|
28,000,000 |
Major Footnote Changes
10. Requires ADC to include in the annual bed capacity report any plans to vacate beds but not permanently remove the beds from the bed count.
11. Delays, from August 1 to November 1, the annual deadline for the bed capacity report.
12. Requires ADC, by March 31, 2022, to submit a report to JLBC in cooperation with the Arizona Strategic Enterprise Technology Office on the progress made to incorporate all sentence calculations into the Arizona corrections information system.
13. Requires ADC to submit a semi-annual report, rather than quarterly report, on staffing levels to JLBC and removes the JLBC review requirement.
14. Removes the footnote relating to the debt service payment for the Kingman refinance.
15. Requires ADC, by December 15, 2021 and July 15, 2021, to a submit a report to JLBC on medical staffing augmentation that includes actual expenditures and an expenditure plan.
16. Exempts the appropriation for medical staffing augmentation from lapsing.
17. Exempts, from the JLBC review requirement, an expenditure of monies designated for personal services or employee-related expenditures until January 2023, if ADC makes a transfer to maximize the use of federal monies, and requires ADC to submit an expenditure plan before spending the monies.
Major Footnote Changes
18. Requires the ASDB to submit a report to JLBC on the intended use of any FY 2022 expenditure from the Cooperative Services Fund in excess of $17,914,500.
Arizona Department of Economic Security (DES)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Area Agencies on Aging |
GF |
Provider Rates |
1,000,000 |
|
Developmental Disabilities |
GF |
Provider Rates |
15,400,000 |
|
Homeless Youth |
GF |
1,000,000 |
Starting in FY 2024 |
|
Salary Increase |
GF |
5% (4,900 positions) |
2,300,000 |
Major Footnote Changes
19. Requires DES, by September 15, 2021, and March 15, 2022, to submit a report to JLBC and the Legislature on Child Care Development Block Grant monies provided by federal coronavirus relief legislation including expenditures to date, an expenditure plan, number of children served, average child care rates and number of child care settings with a quality rating.
20. Removes the JLBC review requirement for the DES expenditure plan report to JLBC of new Division of Developmental Disabilities (DDD) salary adjustments.
21. Removes footnotes relating to JLBC review of child care reimbursement rates and minimum number of children served by the childcare program.
22. States the Legislature intends that DDD reallocate $15,000,000 of the base appropriation DDD spent for onetime developmental disabilities purposes in FY 20221 to partially finance the $30,000,000 provider rate increase in FY 2022.
23. Requires DES, by December 15, 2021, and July 15, 2022, to submit a report to JLBC and the Legislature on federal pandemic emergency assistance monies provided by the American Rescue Plan Act of 2021 that includes expenditures to date, an expenditure plan and number of individuals served.
24. Exempts the appropriation for Return to Work Grants from lapsing until June 30, 2024.
25. Requires DES, by March 15, 2022, to submit a report to JLBC and the Legislature on the number of individuals who received child care support through Return to Work Grants and the number of those individuals who did not return to unemployment insurance within six months.
26. Exempts $1,086,612,800 of the appropriation from the Federal Child Care and Development Fund Block Grant from lapsing.
27. Exempts the FY 2021 $30,200,000 appropriation from the Child Care and Development Fund Block Grant from lapsing.
28. Requires the $500,000 After School and Summer Youth Program appropriation to be distributed to a 501(c)(3) charitable nonprofit organization located in Phoenix that provides after school and summer youth programs dealing with gang violence for at-risk youth.
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Investigations Unit |
GF |
|
500,000 |
Arizona Department of Education (ADE)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Formula |
GF |
|
(32,700,000) |
|
CTED Certification Exam Fee Reimbursement |
GF |
1,000,000 |
Starting in FY 2024 |
|
College Placement Exam Fee Waiver |
GF |
|
1,300,000 |
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
College Credit by Examination Incentive Program |
GF |
|
2,500,000 |
|
Literacy Coaches |
GF |
25 FTEs/3,100,000 |
Starting in FY 2024 |
|
Kindergarten Entry Assessment |
GF |
1,500,000 |
Starting in FY 2024 |
|
Dyslexia Screening/Training |
GF |
1,300,000 |
Starting in FY 2024 |
|
Teacher Reading Instruction Exam |
GF |
1,000,000 |
Starting in FY 2024 |
|
Jobs for Arizona Graduates |
GF |
400,000 |
Starting in FY 2024 |
|
Alternative Teacher Development Program |
GF |
500,000 |
Starting in FY 2024 |
|
Adult Education State Match |
GF |
|
400,000 |
|
Special Education Funding |
GF |
Group B Weights |
50,000,000 |
|
Gifted Funding |
GF |
|
1,000,000 |
Major Footnote Changes
29. Requires ADE to use the gifted assessments appropriation to procure an assessment that local education agencies may administer to second grade students to identify gifted students.
30. Requires ADE, by December 31, 2021, to submit a report to JLBC on how the appropriation for student level data access are being used to manage access and protect student level data.
Department of Emergency and Military Affairs
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Cyber Task Force |
GF |
|
500,000 |
Major Footnote Changes
31. Exempts the appropriation for National Guard tuition reimbursement from lapsing until September 30, 2021.
Arizona Department of Environmental Quality
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Water Quality Assurance Revolving Fund |
GF |
|
5,000,000 |
Arizona Department of Forestry and Fire Management
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Inmate Firefighting Crew Supervisors |
GF |
122 FTEs |
16,300,000 |
|
Inmate Firefighting Crew Vehicles |
GF |
|
1,400,000 |
|
Hazardous Vegetation Removal |
GF |
|
2,300,000 |
|
Fire Suppression |
GF |
|
2,500,000 |
|
Fire Marshal Personnel |
GF |
|
300,000 |
|
Additional Fire School Funding |
GF |
|
100,000 |
Major Footnote Changes
32. Exempts the rural fire district reimbursement appropriation and $3,850,000 of the fire suppression appropriation from lapsing.
Arizona Department of Gaming (ADG)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Racing Division – County Fair Promotion |
GF |
|
1,250,000 |
|
Racing Division – Racing Purse |
GF |
|
5,000,000 |
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Long-Term Care Surveyor Team |
GF |
16 FTEs |
1,600,000 |
|
High Risk Perinatal |
GF |
|
300,000 |
|
Alzheimer's Research |
GF |
|
1,000,000 |
|
Biomedical Research Support |
GF |
|
2,000,000 |
|
Guilty Except Insane Monitoring |
GF |
|
40,000 |
Major Footnote Changes
33. Requires DHS to distribute the appropriated Family Health Pilot Program monies to qualifying nonprofit organizations to implement a statewide system to provide direct services, support services, and social services case management and referrals to the biological or adoptive parents of children under the age of two, including unborn children.
34. States that the purpose of the statewide system is to encourage healthy childbirth, support childbirth as an alternative to abortion, promote family formation, aid successful parenting and increase families' economic self-sufficiency.
35. Requires the selected nonprofit organizations to demonstrate experience in marketing and serving the eligible population and that the organizations can begin serving clients statewide within 60 days of receiving monies.
36. Requires a participating nonprofit organization to submit a quarterly report to DHS of the services and referrals the nonprofit organization provides including specified information.
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Funding |
GF |
See Onetime |
(3,000,000) |
Judiciary
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Case Management IT System Operating Costs |
GF |
Supreme Court |
200,000 |
|
Order of Protection – IT Staff |
GF |
Supreme Court |
300,000 |
|
Dependency Alternative Program |
GF |
Supreme Court |
200,000 |
|
Water Adjudication Personnel and Support |
GF |
Supreme Court |
2,400,000 |
|
Probation Incentive Payments |
GF |
Superior Court |
1,000,000 |
|
State Fleet Initiative |
GF |
Superior Court |
100,000 |
|
Adult Intensive Probation |
GF |
Superior Court |
200,000 |
|
Probation Salary Increases |
GF |
Superior Court |
4,300,000 |
Major Footnote Changes
37. Requires counties to maintain FY 2020 expenditure levels for each probation program to qualify for state probation funding.
38. Specifies that the Special Water Master appropriation includes an increase of $147,600 for two paralegal FTE positions and $109,700 for one law clerk FTE position.
39. Adds the Office of Strategic Planning and Budgeting (OSPB) to the list of receipts of the annual probation officer salary report.
40. Stipulates the appropriation relating to probation officer salary increases covers the state's share and that the Legislature intends that the counties pay any amount above the appropriated amount in FY 2022 and subsequent years if the counties approve salary increases in FY 2022 that increase the state's share.
41. Specifies that $133,900 of the automation appropriation is to expand and maintain the Supreme Court's electronic case management system for water adjudication.
Department of Juvenile Corrections
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Land Trust Lease Adjustment |
GF |
|
100,000 |
|
Youth Correctional Officer Salary Increase |
GF |
5% |
1,600,000 |
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Ombudsman – Operating Costs |
GF |
1 FTE |
200,000 |
Major Footnote Changes
42. Requires the Auditor General (OAG) to compile information on how all school districts and charter schools spent or plan to spend stimulus monies specified in federal acts relating to COVID-19, including how ADE has spent or is planning to spend discretionary funds in FYs 2020, 2021 and 2022.
43. Requires the OAG to report the findings and any recommendations to the Joint Legislative Audit Committee by January 1, 2022, and January 1, 2023.
44. Requires OAG to conduct a special audit of financial and related information of private, nongovernmental grant monies used in Arizona's 2020 elections and Maricopa County's procurement of voting systems and submit a report with specified information by March 31, 2022, to the Governor and Legislature.
Mine Inspector
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Inspection and Reclamation Land Programs |
GF |
|
200,000 |
45. Appropriates an amount equal to the revenue share agreement with the U.S. Forest Service for Fool Hollow Lake Recreation Area to the Arizona State Parks Board from the State Parks Revenue Fund.
Major Footnote Changes
46. Requires the Board of Pharmacy, by September 30, 2021, to submit a report to JLBC on the progress in implementing the OAG's September 2020 sunset audit recommendations.
Prescott Historical Society
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Sharlot Hall Funding |
GF |
|
50,000 |
Department of Public Safety
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Body Camera Funding |
GF |
29 FTEs |
6,900,000 |
|
Overtime Funding |
GF |
|
6,600,000 |
|
Increased Recruitment Funding |
GF |
|
400,000 |
|
Salary Increases |
GF |
10% |
23,500,000 |
Major Footnote Changes
47. Requires the appropriation relating to rapid DNA testing equipment to be used to purchase and deploy rapid DNA testing devices and, on request if sufficient funds are available, to train the requesting county sheriff's personnel on properly using the devices.
48. Exempts the peace officer training equipment appropriation from lapsing until June 30, 2022 and reverts any unexpended monies to the fund from which the monies were appropriated.
Arizona Department of Revenue (ADOR)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Repeal Local Cost Sharing Charge |
GF |
|
20,800,000 |
|
E-Commerce Compliance and Outreach |
GF |
|
900,000 |
Major Footnote Changes
49. Exempts the income tax information technology appropriation from lapsing until June 30, 2024.
School Facilities Board
Major Footnote Changes
50. Requires the Kirkland Elementary replacement appropriation school to be distributed to the Kirkland Elementary School District to replace an existing school building.
51. Requires the appropriation for Yuma Union High School to be distributed to the Yuma Union High School District for the construction of a new high school.
Secretary of State (SOS)
Major Footnote Changes
52. Allows the SOS to use the Records Services Fund appropriations in FY 2021 and FY 2022 for record storage costs incurred in FYs 2020, 2021 and 2022.
Office of Tourism
Major Footnote Changes
53. Exempts appropriation relating to the Southern Arizona Study Committee from lapsing.
Arizona Department of Transportation (ADOT)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Vehicle Fleet Fee Increase |
GF |
|
2,500,000 |
Major Footnote Changes
54. Requires the Arizona Strategic Enterprise Technology Office, by February 1, 2022, to report to JLBC Staff on behalf of ADOT the annual progress on the motor vehicle modernization system, and removes the JLBC review requirement.
State Treasurer
Major Footnote Changes
55. Requires the State Treasurer to distribute School Safety Interoperability Fund monies appropriated for the rural county interoperability communication system as follows:
a) $430,540 to the Gila County Sheriff;
b) $224,930 to the Graham County Sheriff;
c) $189,338 to the Greenlee County Sheriff; and
d) $655,192 to the Pinal County Sheriff.
56. Requires the State Treasurer to distribute monies relating to the school safety program as follows:
a) $2,085,800 to the Maricopa County Sheriff;
b) $224,900 to the Mohave County Sheriff; and
c) $189,300 to the Yavapai County Sheriff.
Universities
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Operating Funding – ASU |
GF |
|
21,900,000 |
|
Operating Funding – NAU |
GF |
|
10,500,000 |
|
Operating Funding – UA |
GF |
|
11,200,000 |
|
School of Mining – UA |
GF |
|
4,000,000 |
|
Water Law Clinic – UA |
GF |
|
500,000 |
|
Geological Survey – UA |
GF |
2 FTEs |
200,000 |
|
HITF |
GF |
|
11,800,000 |
|
Promise Scholarship |
GF |
|
7,500,000 |
Major Footnote Changes
57. Adds OSPB as a recipient of Northern Arizona University's annual report on biomedical research funding distributed to a nonprofit medical research foundation.
58. Delays the lapsing date for the FY 2021 appropriation for Washington D.C. internships until June 30, 2022.
59. Requires the Arizona Board of Regents to reallocate Washington D.C. internship monies that are unspent on March 15, 2022, and requires monies be made available to any full-time student enrolled in a public university to provide internships in partnership with a third-party organization that meets outlined requirements.
60. Prohibits the University of Arizona (UA) from transferring or spending monies appropriated for the Arizona Geological Survey for any other purpose.
61. Requires Arizona State University (ASU) to spend monies appropriated for the Eastern Europe Cultural Collaborative to facilitate academic and cultural exchanges between ASU and academic institutions in Eastern Europe.
62. Requires UA to spend monies appropriated for the Kazakhstan Studies Program to facilitate academic exchanges between UA students and academic institutions in Kazakhstan.
63. Specifies that the amount appropriated to each university includes funding to backfill tuition costs for each university's Health Insurance Trust Fund (HITF) costs associated with the FY 2022 employer health insurance premium increase.
64. States the Legislature's intent is that future costs associated with the HITF continue to be allocated proportional to each university's allocation of GF and appropriated tuition monies.
65. Expands the authorized uses of the $800,000 appropriated to UA to include primary care physician scholarships on the College of Medicine Tucson Campus.
Arizona Department of Veteran Services (ADVS)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Veteran Benefit Counselors |
GF |
12 FTEs |
732,000 |
Major Footnote Changes
66. Allocates $3,000,000 from the water projects assistance grants appropriation to provide financial assistance to cities and towns that provide water in Navajo and Apache counties.
67. Allocates $2,000,000 from the water projects assistance grants appropriation to provide financial assistance to irrigation districts in Cochise and Graham counties.
Department of Water Resources
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2022 Changes |
|
Salary Increases |
GF |
|
2,800,000 |
FY 2021 Supplemental Appropriation and Adjustments
General Fund (GF) and Other Fund (OF)
|
Agency |
Fund |
Amount |
|
ADOA – Federal Government Disallowed Costs – Risk Management Revolving Fund |
OF |
2,801,500 |
|
DCS – Caseload Adjustments |
OF |
27,538,100 |
|
DCS – Expenses Relating to Licensing Organizations |
OF |
90,000 |
|
DCS – Physical and Behavioral Health Services |
OF |
43,785,000 |
|
DES – Caseload Adjustments |
OF |
115,000,000 |
|
DES – Physical and Behavioral Health Services and Home and Community Based Services |
OF |
20,147,300 |
|
DES – Federal Child Care and Development Block Grant |
OF |
30,200,000 |
|
DES – Long-term Care Room and Board Costs |
OF |
4,000,000 |
|
DES – Unemployment Compensation Fund |
GF |
62,000,000 |
Transwestern Pipeline Co. v. ADOR
68. Appropriates $17,043,300 from the state GF in FY 2021 to ADOA to distribute to counties with political subdivisions that paid refunds ordered in the Transwestern Pipeline Co. v. Arizona Department of Revenue litigation.
69. Requires ADOA to allocate the monies as follows:
a) $2,029,600 to Apache County;
b) $2,888,400 to Coconino County;
c) $2,477,100 to Maricopa County;
d) $3,500,300 to Mohave County;
e) $1,183,300 to Navajo County;
f) $1,058,300 to Pinal County; and
g) $3,906,300 to Yavapai.
70. Requires each county that receives monies to distribute to each political subdivision within its jurisdiction an amount equal to refunds, including interest, the political subdivision paid.
71. Prohibits school districts from receiving refund monies that are reimbursable under the K-12 formula.
72. Requires each county, in computing the distributions, to reduce each school district's distribution by the amount of monies received by state aid recalculations reported by ADE.
73. Requires ADE, by June 15, 2021, to report to each county the amount distributed to affected school districts as a result of state aid recalculations associated with the Transwestern litigation.
74. Requires each eligible political subdivision, by June 30, 2021, to submit a claim for reimbursement to the county in which it is located.
75. Requires each county, by September 1, 2021, to submit a report to the Director of JLBC on the total claims submitted and outlines requirements for the report.
76. Reverts any unexpended and unencumbered monies to the state GF by July 1, 2022.
77. Stipulates, if the disbursement to counties is insufficient to reimburse the cost of all claims submitted by June 30, 2021, that the distributions to political subdivisions must be reduced proportionally to cover all eligible claims and that the reports include the estimated total dollar value of unreimbursed claims.
78. Exempts the appropriation from lapsing.
Debt
79. Appropriates $507,100,000 from the state GF in FY 2021 to ADOA to pay for the retirement or defeasance of financing agreements and state lottery revenue bonds as follows:
a) $65,750,000 for the retirement or defeasance of the financing agreement entered into in FY 2017;
b) $171,550,000 for the retirement or defeasance of the financing agreement entered into in FY 2016; and
c) $269,800,000 for the retirement or defeasance of the state lottery revenue bonds issued in FY 2011.
80. Requires ADOA to notify the Director of JLBC within 10 days after each retirement or defeasance is executed.
81. Exempts the appropriation from lapsing.
Arizona Department of Education (ADE)
82. Allows the Superintendent of Public Instruction to transfer up to $5,000,000 from the state GF appropriation for Basic State Aid for FY 2021 to the results-based funding program for FY 2021 without JLBC review.
83. Reverts any transferred amount that exceeds the amount needed to address a funding shortfall for the results-based funding program to the state GF on June 30, 2021.
Department of Emergency and Military Affairs (DEMA)
84. Appropriates $55,000,000 from the state GF in FY 2021 to DEMA for deposit in the Border Security Fund.
85. Requires DEMA to allocate the monies as follows:
a) $3,700,000 to Cochise County;
b) $2,500,000 to Yuma County;
c) $2,700,000 to operate a pilot program to reduce human trafficking;
d) $1,100,000 to distribute to the sheriffs in Cochise, Pima, Santa Cruz and Yuma counties to procure cameras and related equipment, software and services for southern Arizona border region enforcement;
e) $20,000,000 to distribute to cities, towns or counties for costs associated with prosecuting and imprisoning individuals charged with drug trafficking, human smuggling, illegal immigration and other border-related crimes; and
f) $25,000,000 for costs incurred by the Arizona National Guard assets augmenting and supporting DPS and local law enforcement in the border region.
Department of Forestry and Fire Management (DFFM)
86. Appropriates $2,170,100 from the state GF in FY 2021 to DFFM for fire suppression costs incurred in FYs 2016 through 2020.
87. Exempts the appropriation from lapsing until June 20, 2022.
Independent Redistricting Commission (IRC)
88. Authorizes IRC to have six FTE positions in FY 2021.
Arizona State Parks Board (ASPB)
89. Appropriates $147,100 from the State Parks Revenue Fund in FY 2021 to ASPB for expenses relating to shifting operational responsibility of the Riordan Mansion State Historic Park from the Arizona Historical Society to ASPB.
Public Safety Personnel Retirement System (PSPRS)
90. Appropriates $300,000,000 from the state GF in FY 2021 to PSPRS to be deposited in the employer account of the Department of Public Safety Personnel Retirement System group to reduce the unfunded accrued liability.
School Facilities Board (SFB)
91. Appropriates $38,759,000 from the state GF in FY 2021 to the SFB for building renewal grants.
Secretary of State (SOS)
92. Appropriates $494,500 from the Records Services Fund in FY 2021 to SOS for records management expenses.
Arizona Department of Veteran Services (ADVS)
93. Appropriates $100,000 from the Veterans' Income Tax Settlement Fund, in FY 2021, to ADVS to distribute to a 501(c)(3) charitable nonprofit organization that is in southern Arizona and works with regional veterans organizations to improve services to reduce veteran suicides.
94. Exempts the appropriation from lapsing until June 2023.
Drought Mitigation Revolving Fund
95. Appropriates $160,000,000 from the state GF in FY 2021 to the Drought Mitigation Revolving Fund.
96. Specifies that, of the amount appropriated:
a) up to $10,000,000 may be used for awarding grants to facilitate the forbearance of water deliveries by June 30, 2025; and
b) up to $10,000,000 may be used for State Land Department grants to make the best use of water resources associated with state trust land.
Water Supply Development Revolving Fund
97. Appropriates $40,000,000 from the state GF in FY 2021 to the Water Supply Development Revolving Fund.
98. Requires the monies to be allocated for projects:
a) that are located throughout all regions of Arizona and outside of active management areas; and
b) in amounts of no more than $1,000,000 per project.
Additional FY 2022 Appropriations and Adjustments
Arizona Department of Administration (ADOA)
99. Appropriates $7,150,650 from the state GF in FY 2022 to ADOA for equal distribution to counties with a population fewer than 900,000 persons according to the 2010 U.S. Decennial Census (2010 Census) to maintain essential county services.
100. Appropriates $500,000 from the state GF in FY 2022 to ADOA for distribution to Graham county to maintain essential county services.
101. Appropriates $3,000,000 from the state GF in FY 2022 to ADOA for equal distribution to counties with a population fewer than 300,000 persons according to the 2010 Census in order to supplement the cost of the Elected Officials' Retirement Plan (EORP).
102. Prohibits the counties from using the distributed FY 2022 $3,000,000 appropriation for anything other than employer contributions to EORP.
103. Appropriates $10,000,000 from the state GF in FY 2022 to ADOA to distribute to counties to establish a coordinate reentry planning services program and requires ADOA to allocate:
a) $5,000,000 to Mohave County;
b) $4,000,000 to Pinal County; and
c) $1,000,000 to Yavapai County.
104. Appropriates the following amounts in FY 2022 from the APF subaccounts to ADOA for the following automation and information technology (IT) projects:
|
Project |
Subaccount |
Amount |
|
Tucson Data Center Relocation |
ADOA Subaccount |
2,000,000 |
|
Business One-Stop Web Portal |
ADOA Subaccount |
7,758,900 |
|
K-12 School Financial Transparency Reporting Portal |
ADOA Subaccount |
3,000,000 |
|
Charter School Board Online Platform |
Charter School Board Subaccount |
614,100 |
|
Child Care Management System |
DES Subaccount |
9,000,000 |
|
Replace School Finance Data System |
ADE Subaccount |
7,200,000 |
|
Develop E-Licensing Solution |
ADG Subaccount |
850,000 |
|
Replace and Modernize IT Systems |
Industrial Commission of Arizona (ICA) Subaccount |
1,067,700 |
|
Modify E-Licensing System |
State Board of Psychologist Examiners Subaccount |
20,000 |
|
Update the Concealed Weapons Tracking System |
DPS Subaccount |
550,000 |
105. Requires ADOA to submit a quarterly report to JLBC on implementing projects approved by the Information Technology Authorization Committee that includes the project expenditures, deliverables, timeline for completion and current status.
106. Exempts FY 2022 appropriations from the APF from lapsing until June 30, 2023, except that the appropriation relating to the K-12 school financial transparency reporting portal is exempt until June 30, 2025.
107. Exempts FY 2022 appropriations from the APF from JLBC review except for ADOA's business one-stop web portal, the DES child care management system and ADE's school finance data system.
108. Specifies that transfers into the APF are not appropriations out of the APF and that only direct appropriations out of the APF are appropriations.
Arizona Commerce Authority (ACA)
109. Appropriates $50,000,000 from the state GF in FY 2022 to ACA and credits the appropriated amount to the Arizona Competes Fund.
Department of Public Safety (DPS)
110. Appropriates $48,200,000 from the Arizona Highway Patrol Fund to DPS to update the microwave backbone statewide communication system.
111. Requires DPS, by May 31 of each year until the project's completion, to submit a report to JLBC staff on the status and expenditures of the update to the microwave backbone communication system that includes current status, expenditures to date, expected expenditures to complete the update, any changes to the construction timeline, the expected completion date and any change to the scope of the update.
112. Exempts the appropriation from review by the Joint Committee on Capital Review and from lapsing until the purpose is accomplished or abandoned or the appropriation stands without expenditure or encumbrance for a full fiscal year.
Appropriation Reductions
113. Reduces, by $74,702,000, the appropriation made from the state GF in FY 2022 to eliminate debt service payments following the retirement or defeasance of financing agreements entered into in FY 2016 and FY 2017.
114. States the Legislature intends that the retirement or defeasance of state lottery revenue bonds entered into in FY 2011 occur by June 30, 2022, and that no monies from the State Lottery Fund be distributed to debt service beginning in FY 2022 to allow the state GF to receive savings from the retirement or defeasance of state lottery revenue bonds.
Department of Economic Security (DES)
115. Allows DES, beginning April 1, 2022, to use up to $25,000,000 from the Budget Stabilization Fund (BSF) to provide funding for reimbursement grants.
116. Requires DES, before using the BSF monies, to notify the Directors of JLBC and the Governor's OSPB.
117. Requires the BSF appropriation to be fully reimbursed by September 1, 2022, and to be reimbursed in full as part of the closing process for FY 2022.
118. Prohibits the BSF appropriation from being used for additional programmatic expenditures.
Debt Service Payments
119. Appropriates $53,703,900 from the state GF in FY 2022 to ADOA for debt service payments on the sale and leaseback of state buildings authorized by Laws 2009, Third Special Session, Chapter 6.
120. Allocates $24,498,500 of the state GF revenue in FY 2022 to the Arizona Convention Center Development Fund.
121. Asserts that the Rio Nuevo Multipurpose Facility District is estimated to receive $16,000,000 from a portion of state transaction privilege tax revenues in FY 2022 and the actual amount of distribution will be made as outlined in statute.
Fund Transfers
122. Transfers the following amounts in FY 2022 to the relevant APF subaccount from the following sources:
|
Fund Source |
Amount |
|
|
Tucson Data Center Relocation |
APF |
2,000,000 |
|
K-12 School Finance Transparency Reporting Portal |
state GF |
3,000,000 |
|
Charter School Board Online Platform |
state GF |
614,100 |
|
Business One-Stop Web Portal |
State Web Portal Fund |
3,000,000 |
|
Business One-Stop Web Portal |
Automation Operations Fund |
4,758,900 |
|
Child Care Management System |
Federal Child Care Development Fund Block Grant |
9,000,000 |
|
School Finance Data System |
Empowerment Scholarship Account (ESA) Fund |
4,448,900 |
|
School Finance Data System |
State Treasurer ESA Fund |
2,751,100 |
|
ADG's E-Licensing Solution |
Arizona Benefits Fund |
850,000 |
|
ICA's IT Replacement |
Administrative Fund |
1,067,700 |
|
Update Concealed Weapons Tracking System |
Concealed Weapons Permit Fund |
550,000 |
|
Board of Psychologist Examiners E-Licensing System |
Board Psychologist Examiners Fund |
20,000 |
123. Transfers $24,205,700 from the Arizona Highway Patrol Fund in FY 2021 to the state GF.
124. Appropriates $3,300,000 from the state GF in FY 2022 for deposit in the Arizona Highway User Revenue Fund.
125. Appropriates $1,220,800 from the Highway Expansion and Extension Loan Program Fund in FY 2022 for deposit into ADOT's Federal Fund.
126. Transfers the following amounts in FY 2022 for deposit into the Sexual Violence Service Fund:
|
Agency |
Fund Source |
Amount |
|
DHS |
Health Services Licensing Fund |
2,370,900 |
|
DHS |
Health Services Lottery Monies Fund |
93,700 |
|
DHS |
Indirect Cost Fund |
1,339,000 |
|
DPS |
Criminal Justice Enhancement Fund |
343,700 |
|
DPS |
Licensing Fund |
251,900 |
|
DPS |
Fingerprint Clearance Card Fund |
1,356,400 |
|
DPS |
Motor Vehicle Liability Insurance Enforcement Fund |
306,800 |
|
DPS |
Parity Compensation Fund |
921,900 |
|
DPS |
Safety Enforcement and Transportation Infrastructure Fund |
202,500 |
|
ADOT |
Motor Vehicle Liability Insurance Enforcement Fund |
247,800 |
|
ADOT |
Vehicle Inspection and Certificate of Title Enforcement Fund |
565,400 |
Payment Deferrals
127. Continues to defer $900,727,700 in Basic State Aid (BSA) and additional state aid (ASA) payments from ADE in FY 2022 until after June 30, 2022, but not later than July 12, 2022, and excludes charter schools and school districts with a student count less than 1,350 pupils from the deferral.
128. Requires ADE to make the deferral by reducing the apportionment of state aid for each month in the fiscal year by the same amount.
129. Requires ADE to disburse the FY 2023 appropriation of $900,727,700 to the counties for the school districts starting in July 1, 2022, and no later than July 12, 2022, in amounts equal to the reductions in the apportionment of BSA and ASA.
130. Requires school districts to include, in the revenue estimates that they use for computing their FY 2022 tax rates, the deferred appropriation monies that they will receive.
Statewide Operating Adjustments
General Fund (GF) and Other Fund (OF)
|
Area of Adjustment |
GF |
OF |
Total |
|
Employer Health Insurance Contribution Reduction |
(20,281,100) |
(18,284,300) |
(38,565,400) |
|
Employer Health Insurance Contribution Increase |
11,213,700 |
14,000,000 |
25,213,700 |
|
Non-university State Employee 27th Pay Period Reduction |
(43,078,600) |
(30,400,000) |
(73,478,600) |
|
Agency Risk Management |
(1,132,200) |
(425,000) |
(1,557,200) |
|
Agency Retirement |
3,600,000 |
4,000,000 |
7,600,000 |
|
Arizona Financial Information System |
447,800 |
200,000 |
647,800 |
|
Agency Rent |
(241,700) |
(4,000) |
(245,700) |
|
State Fleet Rate |
2,525,200 |
1,119,600 |
3,644,800 |
131. Provides statewide adjustment procedures and instructions.
132. Outlines the FY 2022 individual agency charges totaling $1,798,500 for general agency counsel provided by the AG.
FY 2023 and FY 2024 Appropriations
133. Appropriates $1,500,000 from the ADOA subaccount in the APF in FYs 2023 and 2024 to ADOA to develop a K-12 school financial transparency reporting system.
134. Appropriates $1,500,000 from the state GF in FYs 2023 and 2024 to deposit in the ADOA Subaccount to develop a K-12 school financial transparency reporting system.
135. Exempts the appropriations from lapsing until June 30, 2025, and from JLBC review.
School Facilities Board (SFB)
136. Appropriates $47,950,000 from the state GF in FY 2023 for a onetime deposit in the New School Facilities Fund.
137. Requires SFB to use the monies only for facilities that will be constructed for school districts that received final approval from SFB by December 15, 2020.
138. Appropriates $16,515,200 from the state GF in FY 2023 to SFB to distribute to the Yuma Union High School District for the construction of a new high school.
Miscellaneous
139. States the Legislature intends after FY 2022, monies received by local law enforcement agencies from Proposition 207 are expected to cover reimbursements to regional peace officer training academies for training officers.
140. States that it is the Legislature's intent is that all departments, agencies and budget units receiving appropriations continue to report actual, estimated and requested expenditures in a specified format.
141. Contains other reporting requirements.
142. Defines terms.
143. Becomes effective on the signature of the Governor.
Prepared by Senate Research
May 24, 2021
LMM/lb