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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
capital outlay; appropriations; 2022-2023.
Purpose
Makes statutory and session law changes relating to capital outlay necessary to implement the FY 2023 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. 1725 contains the budget reconciliation provisions for changes relating to capital outlay.
Provisions
Building Renewal
1. Appropriates the following amounts in FY 2023 to the following state agencies from the specified funds for major maintenance and repair activities for state buildings:
|
Agency |
Fund Source |
Amount |
% of Formula |
|
Arizona Department of Administration (ADOA) |
state General Fund (state GF) |
$37,594,200 |
70% |
|
Capital Outlay Stabilization Fund (COSF) |
$16,000,000 |
30% |
|
|
Arizona Department of Corrections, Rehabilitation and Reentry (ADCRR) |
state GF |
$30,551,100
|
84% |
|
Department of Corrections Building Renewal Fund |
$5,864,300 |
16% |
|
|
Arizona Game and Fish Department (AZGFD) |
Game and Fish Fund |
$1,459,600 |
100% |
|
Arizona State Lottery Commission |
State Lottery Fund |
$176,400 |
100% |
|
Arizona Department of Transportation (ADOT) |
State Highway Fund (SHF) |
$18,139,400 |
97% |
|
State Aviation Fund |
$467,800 |
3% |
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 ADOA to use monies appropriated for building renewal in FY 2023 to retrofit facilities for space consolidation initiatives.
5. Prohibits ADCRR from spending any monies from the capital outlay appropriation on personal services or overhead expenses related to managing projects funded by the appropriation.
Individual Capital Projects
6. Appropriates the following amounts in FY 2023 to the following state agencies from the specified funds for individual capital projects:
|
Agency |
Purpose |
Fund |
Amount |
|
ADOA |
Building Demolition |
state GF and Capitol Mall Consolidation (CMC) Fund |
$1,568,000 |
|
ADOA |
West Adams building renovations |
state GF and CMC Fund |
$52,274,000 |
|
ADCRR |
Replace evaporative cooling statewide with HVAC |
state GF |
$47,600,000 |
|
ADCRR |
Statewide door, lock and fire systems replacement |
state GF |
$20,400,000 |
|
Arizona State Schools for the Deaf and the Blind (ASDB) |
Classroom notification system replacement |
state GF |
$96,000 |
|
ASDB |
Security upgrades |
state GF |
$420,000 |
|
ASDB |
Food service equipment replacement |
state GF |
$350,000 |
|
Arizona Department of Emergency and Military Affairs (DEMA) |
Additional construction monies for Tucson readiness center |
state GF |
$1,800,000 |
|
DEMA |
Fire suppression projects |
state GF |
$1,151,100 |
|
Arizona Exposition and State Fair Board |
Capital improvements |
Arizona Exposition and State Fair Fund |
$1,000,000 |
|
AZGFD |
Dam maintenance |
Capital Improvement Fund |
$150,000 |
|
AZGFD |
Property maintenance |
Capital Improvement Fund |
$300,000 |
|
Judiciary |
Air handler and sewer replacement |
state GF |
$3,200,000
|
|
Arizona Department of Juvenile Corrections |
Water and waste chase closet replumbing |
state GF |
$400,000 |
|
Legislative Council |
Capital improvements |
state GF |
$5,700,000 |
|
Arizona Department of Liquor Licenses and Control |
Space reconfiguration |
Liquor Licenses Fund |
$3,500,000 |
|
Arizona State Parks Board (ASPB) |
Capital improvements |
State Parks Revenue Fund |
$2,742,800
|
|
ASPB |
Dead Horse Ranch state park amphitheater |
State Parks Revenue Fund |
$210,000 |
|
ASPB |
Rockin’ River Ranch state park |
State Parks Revenue (SPR) Fund |
$336,800 |
|
Arizona Pioneers’ Home |
Capital improvements |
Pioneers’ home state charitable earnings land fund |
$396,500 |
|
Arizona Department of Public Safety (DPS) |
Replace 25 remote housing units and purchase 5 new housing units |
state GF |
$9,750,000 |
|
DPS |
Purchase and construct new property for evidentiary vehicle storage |
state GF |
$1,016,400 |
|
Arizona Department of Transportation (ADOT) |
Renovate 206 annex building |
SHF |
$9,309,300 |
|
ADOT |
Relocate Tucson signal equipment repair shop |
SHF |
$2,124,000 |
|
ADOT |
Replace vehicle fueling facilities in Tucson, St. David, Willcox and Three Points |
SHF |
$3,026,900 |
|
ADOT |
Replace deicer material storage barn in Superior |
SHF |
$1,200,000 |
|
ADOT |
Construct new maintenance facility in Wickenburg |
SHF |
$2,985,000 |
|
ADOT |
Replace vehicle fueling facilities in Flagstaff, Holbrook and Kingman |
SHF |
$371,200 |
|
ADOT |
Construct new liquid brine tanks in Globe, Show Low, Prescott Valley and Keams Canyon |
SHF |
$400,000 |
|
ADOA |
Dark sky discovery center |
state GF |
$2,500,000 |
|
ADOA |
Northern Arizona observatory |
state GF |
$5,000,000 |
|
ADOA |
Homeless veterans housing |
state GF |
$2,386,600 |
|
ADOA |
Lukachukai veterans' multipurpose complex |
state GF |
$500,000 |
|
ADOA |
Little Colorado River visitor center |
state GF |
$1,000,000 |
|
ADOA |
Environmental testing laboratory |
state GF |
$4,000,000 |
|
ADOA |
Diné college student center |
state GF |
$8,000,000 |
|
ADOA |
Teesto multipurpose community center |
state GF |
$1,000,000 |
|
ADOA |
Dilkon center improvements |
state GF |
$3,000,000 |
|
ADOA |
Kayenta judicial complex |
state GF |
$2,000,000 |
|
ASPB |
Jerome fire suppression system |
SPR Fund |
$1,540,000 |
|
ASPB |
Southern construction service relocation |
SPR Fund |
$2,000,000 |
|
ASPB |
Tonto natural bridge historic building renovation |
SPR Fund |
$3,500,000 |
|
ASPB |
Tombstone courthouse renovation |
SPR Fund |
$2,008,500 |
|
ASPB |
Rockin' River Ranch renovation |
SPR Fund |
$1,750,000 |
|
ASPB |
Catalina main entrance bridge |
SPR Fund |
$1,500,000 |
|
ASPB |
Statewide campground improvements |
SPR Fund |
$4,100,000 |
|
ASPB |
Statewide sunshade structures |
SPR Fund |
$2,233,333 |
|
ASPB |
Statewide water conservation |
SPR Fund |
$1,339,000 |
|
ASPB |
Smartphone application |
SPR Fund |
$535,600 |
|
Arizona Board of Regents (ABOR) |
University of Arizona Mining, Mineral and Natural Resources education museum |
state GF |
$2,000,000 |
7. Requires the ASPB to report promptly to the Joint Committee on Capital Review (JCCR) and the Governor's Office of Strategic Planning and Budgeting (OSPB) if the ASPB revises the plan for any project for which monies are appropriated because the ASPB receives land and water conservation grant funding.
8. Reverts unexpended appropriations for DPS remote officer housing on June 30, 2025, back to the fund from which they were appropriated.
9. Exempts specific ADOA and Legislative Council capital projects from individual review by JCCR.
10. Requires, before ASPB spends any monies toward the smartphone application, the Arizona Strategic Enterprise Technology Office to submit, on behalf of the ASPB, an expenditure plan to the Joint Legislative Budget Committee (JLBC) for review that includes:
a) the project cost;
b) deliverables;
c) a timeline for completion; and
d) a method of procurement consistent with ADOA's prior reports for its appropriation from the Automation Projects Fund.
11. Allows ASPB to use up to 10 percent of the monies from any project outlined in the ASPB expenditure plan to pay for costs associated with another project in the ASPB expenditure plan.
12. Allows ASPB, after review by the JCCR, to use more than 10 percent of the monies outlined in the ASPB expenditure plan to pay for costs associated with another project in the ASPB expenditure plan.
13. Specifies that the monies from the $12,000,000 appropriation to ABOR for distribution to the University of Arizona for capital improvements to the Mining, Mineral and Natural Resources Educational Museum that remain unexpended on June 30, 2024, revert to the fund from which the monies were appropriated.
ADOT Statewide Highway Construction
14. Appropriates $371,046,100 in FY 2023 from the state GF to ADOT for specified highway projects:
|
Project |
Amount |
|
Design and construct additional vehicle lands, separated by a lighted median, on Interstate 10 between State Route 85 and Citrus Road |
$64,200,000 |
|
Improve Jackrabbit Trail between Thomas Road and McDowell Road |
$20,080,000 |
|
Acquire right-of-way to extend State Route 24 |
$15,000,000 |
|
Rehabilitate pavement along U.S. Route 60 between Tomahawk Road and Mile Post 208 |
$38,482,000 |
|
Study the construction of an emergency evacuation bridge in Lake Havasu City |
$200,000 |
|
Rehabilitate pavement along U.S. Route 66 between Ashfork and Seligman |
$19,327,300 |
|
Construct roundabout at intersection of State Route 69 and State Route 169 |
$1,500,000 |
|
Study and design traffic interchange on State Route 74 at Lake Pleasant Parkway |
$5,000,000 |
|
Assess intersection of State Route 79 and Hunt Highway |
$100,000 |
|
Assess intersection of State Route 87 and Skousen Road |
$100,000 |
|
Design traffic interchange on State Route 89 at State Route 89A |
$3,000,000 |
|
Rehabilitate pavement along State Route 90 between Campus Drive and the U.S. Border Patrol Station in Huachuca City |
$39,200,000 |
|
Rehabilitate pavement along U.S. Route 191 between Mile Post 163 and Mile Post 173 |
$22,152,000 |
|
Design and construct a screen wall along Loop 101 between 51st Avenue and 59th Avenue |
$9,514,000 |
|
Rehabilitate pavement along U.S. Route 191 between Armory Road and East Safford |
$16,330,000 |
|
Design to improve State Route 238 between State Route 347 and Green Road |
$800,000 |
|
Construct and improve former State Route 279 |
$6,142,800 |
|
Design work for State Route 303 improvements from Interstate 17 to Lake Pleasant Parkway |
$4,000,000 |
|
Design work for the interchange at State Route 303 and Interstate 17 |
$19,000,000 |
|
Design to widen lanes along State Route 347 between Interstate 10 and City of Maricopa |
$19,000,000 |
|
Assess intersection on State Route 389 at Arizona Avenue |
$100,000 |
|
Distribute to the Northern Arizona Intergovernmental Public Transportation Authority for capital costs of the Flagstaff downtown connection center |
$6,000,000 |
|
Install lighting on the Sentinel exit in Gila Bend |
$568,000 |
|
Conduct a tier 2 study for the North-South Corridor in Pinal County |
$15,000,000 |
|
Conduct a tier 2 study for the Sonoran Corridor in Pima County |
$14,000,000 |
|
Conduct a tier 2 study for Interstate 11 in Maricopa County |
$25,000,000 |
|
Design and construct a screen wall along the east side of Loop 101 near 16th street |
$7,250,000 |
15. Requires ADOT, within 30 days after the last day of each calendar quarter, to report to JLBC the projected cost and status of the outlined projects and requires the report to include any impacts to the projects due to the increase in the cost of concrete.
16. Requires ADOT to submit a report for review by JCCR, prior to monies between outlined projects are transferred.
17. Exempts the $371,046,100 appropriation in FY 2023 to ADOT for state highway construction from:
a) review by the JCCR; 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.
18. Appropriates $72,728,700 in FY 2023 from the SHF to ADOT for specified highway projects:
|
Project |
Amount |
|
Repave State Route 69 in Prescott Valley |
$1,645,000 |
|
Improve U.S. Route 95 near Yuma proving ground |
$3,500,000 |
|
Repave State Route 95 in Mohave County |
$19,534,600 |
|
Construct an overpass at Riggs Road and State Route 347 |
$8,750,000 |
|
Final design plan, right-of-way and easements for an overpass at Riggs Road and State Route 347 |
$2,625,000
|
|
Repair State Route 186 and State Business Route 10 in Willcox |
$1,464,100 |
|
Improve State Route 90 from Moson Road to Campus Drive |
$3,710,000 |
|
Rehabilitate pavement on outlined road projects |
$31,500,000 |
19. Requires ADOT to submit a report for review by JCCR before transferring monies between the outlined highway projects.
20. Exempts the $72,728,700 appropriation to ADOT from the SHF for highway projects 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.
21. Appropriates $470,373,000 from the SHF in FY 2023 to ADOT to:
a) plan and construct state highways;
b) acquire rights-of-way and provide for the cost of contracted field administration; and
c) engineering on construction projects and debt service payments on bonds issued for highway construction.
22. 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.
23. Requires ADOT, by November 1, 2022, to report to the Directors of JLBC and 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 2022, 2023 and 2024; and
c) ADOT's outstanding debt principal balance at the end of FY 2024 and the estimated debt service payment amounts for FYs 2024, 2025, 2026 and 2027.
24. 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.
25. Requires ADOT's reported capital outlay information to be in the same format as tables two, three and six of the FY 2022 Appropriations report.
26. Requires ADOT's estimated outstanding debt principal balance and estimated debt service payment report to include SHF statewide 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.
27. Directs ADOT's estimated outstanding debt principal balance and estimated debt services payment report to be comparable to the information in the FY 2022 Appropriations Report.
28. Exempts the $470,373,000 appropriation in FY 2023 to ADOT from the SHF for statewide highway construction from:
a) review by the JCCR; 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.
ADOT Tribal Highway Construction and Improvements
29. Appropriates $22,000,000 in FY 2023 from the state GF to ADOT for specified tribal highway projects:
|
Project |
Amount |
|
Construction, repairs and upgrades of Ganado School Loop Road |
$1,000,000 |
|
Construction of traffic circle at the intersection of North Lake Powell Boulevard and U.S. Route 89 in Page, Arizona and to install traffic control devices at the intersection of U.S. Route 89 and the road to the Horseshoe Bend parking lot |
$5,000,000 |
|
Improvements to N9402 Road near Lupton, Arizona and Houck, Arizona |
$10,000,000 |
|
Improvements to N35 |
$6,000,000 |
30. Exempts the $22,000,000 appropriation in FY 2023 to ADOT for tribal highway construction and improvements from review by the JCCR.
State Aviation Fund
31. Appropriates $600,000 from the State Aviation Fund in FY 2023 to ADOT to distribute to the Prescott Regional Airport for the Strategic Flight Education Complex if the airport demonstrates to ADOT that the airport has a commitment for matching monies of gifts, grants and donations for the Strategic Academic Flight Education Complex from sources other than Arizona.
32. Exempts the $600,000 appropriation in FY 2023 to ADOT from the State Aviation Fund for the Prescott Regional Airport from lapsing.
ADOT Airport Planning and Development
33. Appropriates $27,100,000 from the State Aviation Fund to ADOT in FY 2023 to plan, construct, develop and improve state, county, city or town airports as determined by the State Transportation Board.
34. 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.
35. Requires ADOT, by December 31, 2022, 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 any future year commitments.
36. Exempts the $27,100,000 appropriation in FY 2023 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.
ASPB Capital Projects
37. Appropriates $19,143,833 in FY 2023 from the SPR Fund to ASPB for specified projects:
|
Project |
Amount |
|
Catalina main entrance bridge |
$5,813,000 |
|
Statewide campground improvements |
$4,100,000 |
|
Statewide sunshade structures |
$2,233,333 |
|
Statewide water conservation |
$1,339,000 |
|
Yuma territorial prison renovation |
$750,000 |
|
Riordan mansion renovation |
$2,900,000 |
|
Oracle renovation |
$2,008,500 |
38. Allows ASPB to use up to 10 percent of the monies from any outlined capital project in FY 2023 to pay for costs associated with another capital project.
39. Allows ASPB, after review by the JCCR, to use more than 10 percent of the monies from any outlined capital project in FY 2023 to pay for costs associated with another capital project.
40. Appropriates $19,117,333 in FY 2024 from the SPR Fund to ASPB for specified projects:
|
Project |
Amount |
|
Statewide campground improvements |
$4,100,000 |
|
Statewide sunshade structures |
$2,233,333 |
|
Statewide water conservation |
$1,339,000 |
|
Yuma territorial prison renovation |
$5,945,000 |
|
Red Rock renovation |
$4,000,000 |
|
San Rafael renovation |
$1,500,000 |
41. Allows ASPB to use up to 10 percent of the monies from any outlined capital project in FY 2024 to pay for costs associated with another capital project.
42. Allows ASPB, after review by the JCCR, to use more than 10 percent of the monies from any outlined capital project in FY 2024 to pay for costs associated with another capital project.
Miscellaneous
43. Appropriates $400,000,000 from the SHF, rather than the state GF, to ADOT for the purpose of widening Interstate 10 between Chandler and Casa Grande.
44. Appropriates $50,000,000 from the SHF in FY 2023 to the State Match Advantage for Rural Transportation Fund (SMART Fund).
45. Exempts the $50,000,000 appropriation in FY 2023 to the SMART Fund from the SHF from lapsing.
46. Appropriates $25,000,000 from the state GF in FY 2023 to ADOT to distribute to the City of Tolleson for the Loop 101 slip ramp access project.
47. Exempts the $25,000,000 appropriation in FY 2023 to ADOT from the SHF from JCCR review.
48. Exempts the $16,000,000 appropriation to ADOA in FY 2021 for building renewal from lapsing until June 30, 2023.
49. Exempts the $50,000,000 appropriation to ADOT in FY 2022 for widening Interstate 10 between Phoenix and Casa Grande from lapsing until June 30, 2023.
50. 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.
51. 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 the JCCR.
52. 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.
53. Becomes effective on the general effective date.
Prepared by Senate Research
June 20, 2022
RA/slp