ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature First Regular Session
	Senate: APPROP DPA/SE 6-4-0-0 | 3^rd Read 17-12-0-0

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SB 1130: deferred payments; prohibition

Sponsor: Senator Petersen, LD 14

Committee on Appropriations

Overview

Prohibits a state General Fund (GF) obligation from being deferred to another fiscal year.

History

The Arizona Department of Administration may use available balances of appropriations from the prior fiscal year for up to one month after the close of that fiscal year in order to pay obligations incurred or to fulfill contracts made during the prior fiscal year (A.R.S. § 35-190).

During the budget process, a payment can be deferred from the fiscal year in which the obligation was incurred to the following fiscal year. This deferral is frequently known as a "rollover." According to the Joint Legislative Budget Committee, Arizona had a rollover of $1.3 billion in FY 2011, spread across AHCCCS, K-12 education, DES and DCS, and the universities. The rollovers for everything except K-12 education were paid off by FY 2016. The current K-12 rollover is $800,727,700 (JLBC).

Provisions

1. Prohibits an obligation that is required to be paid with GF monies in one fiscal year from being deferred, in whole or in part, for payment in another fiscal year, except for obligations made within a month of the close of a fiscal year. (Sec. 1)

2. Excludes funding deferrals for Basic State Aid and additional state aid entitlement that would be apportioned to school districts from this prohibition. (Sec. 1)

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6.                   SB 1130

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