ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature First Regular Session
	House: WM DP 7-1-2-0 | APPROPS DPA 9-3-3-0

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HB 2027: appropriation; unfunded liability; CORP

Sponsor: Representative Livingston, LD 28

Caucus & COW

Overview

Appropriates $428,813,700 from the state General Fund (GF) in FY 2023 to the public safety personnel retirement system (PSPRS) to pay the unfunded accrued liability.

History

Before the establishment of the PSPRS, public safety personnel in the state of Arizona were covered under various local, municipal and state retirement programs. This provided for wide and significant differentials in employee contribution rates, benefit eligibility provisions, types of benefit protection and benefit formulas. The PSPRS pension plan was established July 1, 1968 to provide a uniform, consistent and equitable statewide retirement program for Arizona’s public safety personnel. (A.R.S. § 38-841)

PSPRS is a qualified governmental pension plan under section 401(a) of the Internal Revenue Code. (A.R.S. § 38-843.02)

Provisions

1. Appropriates $428,813,700 from the GF in FY 2023 to PSPRS pay the unfunded accrued liability. (Sec. 1)

2. Specifies that the board of trustees for PSPRS shall account for the appropriation when calculating the employee contribution rates and the employer contribution rates. (Sec. 1)

Amendments

Committee on Appropriations

1. Creates a county repayment schedule beginning FY24 on the counties for amounts paid by the state in FY23 on the counties' behalf to the CORP for unfunded accrued liability.

a) Apache County           ($73,200) 

b) Cochise County          ($281,400)

c) Coconino County        ($613,900) 

d) Gila County                 ($198,000)

e) Graham County          ($35,000) 

f) Greenlee County        ($23,000) 

g) La Paz County            ($40,800) 

h) Maricopa County        ($17,112,200) 

i) Mohave County          ($403,800)

j) Navajo County            ($181,600) 

k) Pima County               ($2,145,200)

l) Pinal County               ($1,077,200) 

m) Santa Cruz County     ($102,900)

n) Yavapai County          ($1,224,500)

o) Yuma County              ($675,400)

2. Outlines the procedure for billing each county.

3. Repeals the local government repayment from and after June 30, 2034.

4. Reduces appropriations from the state general fund in FY24 as follows:

a) Adult standard probation                     ($3,813,600)

b) Adult intensive probation                    ($2,263,700)

c) Community punishment                      ($101,400) 

d) Interstate compact                              ($83,500)

e) Drug court                                           ($137,500)

f) Juvenile standard probation               ($668,000)

g) Juvenile intensive probation               ($1,136,500)

h) Juvenile treatment services                ($753,300)

i) Juvenile diversion consequences       ($1,156,600)

5. Contains an emergency clause.

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9.                   HB 2027

10. Initials VP/AA        Page 0 CaucusCOW

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