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ARIZONA HOUSE OF REPRESENTATIVESFifty-sixth Legislature First Regular Session |
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Senate: APPROP DP 6-4-0-0 | 3rd Read 16-14-0-0 House: 3rd Read 31-28-1-0 |
SB 1523: general appropriations act; 2023-2024. (Substituted for HB 2570)
Sponsor: Senator Kavanagh, LD 3
Transmitted to the Governor
Overview
Appropriates monies for the operation of the state government in FY 2024.
History
The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations. Article IV, Section 20, Part 2 of the Constitution of Arizona requires the General Appropriations Act (feed bill) to contain only appropriations for the different state departments, state institutions, public schools and interest on public debt. Statutory changes necessary to reconcile the appropriations made in the feed bill and other changes are drafted into separate budget bills prepared according to subject area.
Provisions
The tables below indicate state General Fund (GF) and other fund (OF) changes for appropriated state agencies in FY 2024 stated in terms of changes to the FY 2024 JLBC Baseline.
Major footnotes are stated in terms of changes to the FY 2023 General Appropriations Act.
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Summary of Changes |
Fund |
Comments |
FY 2024 Changes to JLBC Baseline |
Arizona Department of Administration (ADOA)
1.
Requires ADOA to submit a report on
expenditures made from the Cyber Risk Insurance Fund to the Director of the
Joint Legislative Budget Committee (JLBC) by November 1, 2024. (Sec. 4)
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ADOA – School Facilities Division (Sec. 5) |
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Building Renewal Grants Deposit |
GF |
One-time, in addition to ongoing $16,667,900 in the Baseline. |
$183,300,000 |
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Arizona Department of Corrections (ADC) (Sec. 21) |
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Private Prison Contract Increase |
GF |
Ongoing amount for FY 2023 salary increase |
$7,101,400 |
Department of Economic Security (DES)
2. Directs DES to submit an expenditure plan to JLBC for review prior to spending $1,000,000 for homeless youth services. (Sec. 27)
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Arizona Department of Education (ADE) (Sec. 29) |
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Operating Lump Sum Appropriation |
GF |
Ongoing |
$4,551,600 |
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Empowerment Scholarship Administration |
GF |
Ongoing |
$(4,551,600) |
3. Requires ADE to submit an expenditure plan to JLBC for review before spending the $6,880,000 increase in early literacy.
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Department of Health Services (Sec. 42) |
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Homeless Pregnant Women Services |
OF |
Health Services Lottery Fund |
$100,000 |
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Independent Redistricting Commission |
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Remove One-time Appropriation |
GF |
FY 2024 Baseline called for a one-time appropriation under enacted 3-year plan |
$(1,500,000) |
Department of Public Safety (DPS)
4. Specifies that the Border Strike Task Force Local Support line item is to be used for:
a) Deterrence and apprehension of individuals charged with border-related crimes; and
b) Grants to cities, towns or countries for costs associated with prosecuting and detaining individuals charged with border-related crimes. (Sec. 75)
5. Designates $7,000,000 of t he Major Incident Division line item for reimbursing regional law enforcement task forces and other law enforcement agencies to perform critical force incident investigation. (Sec. 75)
Arizona Department of Transportation (ADOT)
6. Eliminates three reporting ADOT footnotes that are converted into permanent law in the transportation budget bill. (Sec. 85)
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Arizona State University (Sec. 89) |
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Operating Lump Sum Appropriation |
GF |
Ongoing |
$6,006,500 |
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School of Civic and Economic Thought and Leadership |
GF |
Ongoing |
$(6,006,500) |
7. Expresses the intent of the Legislature that appropriated monies allocated by Arizona State University to the School of Civic and Economic Thought and Leadership in FY 2024 be consistent with the amount appropriated in FY 2023. (Sec. 89)
8. Expresses the intent of the Legislature that appropriated monies allocated by Arizona State University to the Center for American Institutions be consistent with the amount appropriated in FY 2022, to be used at the sole discretion of the lead of the Center. (Sec. 89)
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Northern Arizona University (Sec. 90) |
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Operating Lump Sum Appropriation |
GF |
Ongoing |
$865,300 |
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Economic Policy Institute |
GF |
Ongoing |
$(865,300) |
9. Expresses the intent of the Legislature that appropriated monies allocated by Northern Arizona University to the Economic Policy Institute in FY 2024 be consistent with the amount appropriated in FY 2023. (Sec. 90)
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University of Arizona (Sec. 91) |
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Operating Lump Sum Appropriation |
GF |
Ongoing |
$4,840,000 |
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Center for the Philosophy of Freedom |
GF |
Ongoing |
$(4,840,000) |
10. Expresses the intent of the Legislature that appropriated monies allocated by the University of Arizona to the Center for the Philosophy of Freedom in FY 2024 be consistent with the amount appropriated in FY 2023.
Supplemental Appropriations
11. Appropriates $3,107,700 from the Risk Management Revolving Fund to ADOA in FY 2023 to pay disallowed costs and for FY 2022 fund transfers. (Sec. 95)
12. Appropriates $1,750,000 from the Personnel Division Fund to the Human Resources Information System (HRIS) Subaccount of the Automation Projects Fund in FY 2023. (Sec. 96)
13. Appropriates $58,487,600 from the Children's Health Insurance Program Fund and $3,307,915,900 from expenditure authority to AHCCCS in FY 2023 for formula adjustments. (Sec. 97)
14. Reduces the appropriation from the Tobacco Tax and Health Care Fund – Medically Needy Account in FY 2023 by $55,000 for formula adjustments. (Sec. 97)
15. Appropriates $11,100,000 from expenditure authority in FY 2023 to the Department of Child Safety adoption services line item for a technical adjustment. (Sec. 98)
16. Appropriates $200,000,000 from the General Fund in FY 2023 to the Superintendent of Public Instruction for additional Basic State Aid costs. (Sec. 99)
Additional FY 2024 Appropriations
17. Appropriates the following sums from the GF to ADOA in FY 2024 for counties:
a) $7,150,650 for equal distribution to counties with a population under 900,000;
b) $500,000 for distribution to Graham County;
c) $3,000,000 for equal distribution to counties with a population under 300,000 to supplement pension payments; and
d) $7,000,000 for distribution to counties to establish a coordinated reentry planning services program. (Sec. 100)
18. Appropriates the following sums that are non-lapsing through June 30, 2025, to subaccounts of the Automation Projects Fund in FY 2024:
a) $20,647,800 from the HRIS Subaccount to replace the HRIS; and
b) $19,369,400 from the Department of Revenue Subaccount to implement the integrated tax system modernization project that meets outlined minimum specifications. (Sec. 101)
19. Requires ADOA to provide quarterly reports to JLBC on automation projects, including project expenditures, deliverables, timeline and current status. (Sec. 101)
20. Continues to allow DES to use up to $25,000,000 from the Budget Stabilization Fund to provide funding for reimbursement grants, with reporting requirements. (Sec. 102)
21. Allocates $25,498,600 from the GF in FY 2024 to the Arizona Convention Center Development Fund. (Sec. 103)
22. Distributes an estimated $17,000,000 from transaction privilege tax revenues to the Rio Nuevo Multipurpose Facility District in FY 2024. (Sec. 104)
Fund Balance Transfers and Payment Deferrals
23. Establishes fund balance transfer amounts for automation projects but specifies that transfers into the Automation Projects Fund are not appropriations. (Sec. 105)
24. Defers $800,727,700 of the FY 2024 Basic State Aid and Additional State Aid entitlement to July 12, 2024. (Sec. 106)
25. Directs school districts to include the deferred payments when computing tax rates for FY 2024. (Sec. 106)
Statewide Adjustments
26. Replaces the employer health insurance contribution reduction of $95,469,000 and university health insurance backfill removal of $40,033,000 with an employer health insurance contribution increase of $102,000,000. (Sec. 107)
27. Directs JLBC staff, in consultation with the Governor's Office of Strategic Planning and Budgeting, to determine the amounts of the statewide adjustments to be allocated by ADOA for each agency. (Sec. 107)
28. Sets FY 2024 charges for general agency counsel provided by the Department of Law. (Sec. 108)
FY 2025 Appropriations
29. Appropriates $77,898,600 from the GF in FY 2025 to the New School Facilities Fund for projects that received final approval from the Division of School Facilities by December 15, 2022. (Sec. 109)
Miscellaneous
30. Requires the Governor to report to the Legislature:
a) Any expenditures exceeding $10,000,000 from the Coronavirus State Fiscal Recovery Fund and the Coronavirus Capital Projects Fund from the federal American Rescue Plan Act of 2021 (ARPA) prior to spending the monies; and
b) The actual quarterly expenditures from ARPA through June 30, 2026. (Sec. 110)
31. Requires the Superintendent of Public Instruction to report to the Legislature:
a) Any expenditure exceeding $10,000,000 from the Elementary and Secondary School Emergency Relief Fund from ARPA prior to spending the monies; and
b) The actual quarterly expenditures from ARPA through June 30, 2026. (Sec. 110)
32. Requires quarterly reports from the Arizona Board of Regents and each community college district to the Legislature on the actual expenditures of the Higher Education Emergency Relief Fund form ARPA through June 30, 2026. (Sec. 110)
33. States the intent of the Legislature that the Executive Branch report on additional federal aid enacted by the end of FY 2024. (Sec. 110)
34. Expresses legislative intent that all budget units continue to report expenditures in a format similar to prior years. (Sec. 111)
35. Requires all full-time equivalent (FTE) positions to be subject to appropriation and outlines reporting requirements for ADOA and each university to compare FTE usage to the appropriated FTEs. (Sec. 112)
36. Requires each agency to submit a report to JLBC by October 1, 2023, on the number of filled appropriated and nonappropriated FTE positions by fund source. (Sec. 113)
37. Directs ADOA to provide a monthly report to JLBC on any transfers of spending authority during the prior month. (Sec. 114)
38. Forecasts GF revenue estimates for FY 2023, 2024, 2025 and 2026 and GF expenditure estimates for FY 2025 and 2026. (Sec. 115)
39. Requires the Executive Branch to provide JLBC a preliminary estimate of the FY 2023 ending GF balance by September 15, 2023. (Sec. 115)
40. Directs JLBC staff to report to JLBC by October 15, 2023, whether the FY 2024 revenues and ending balance are expected to change by more than $50,000,000 from the budgeted projections. (Sec. 115)
41. Defines *, expenditure authority and review by the Joint Legislative Budget Committee. (Sec. 116, 117, 118)
42.
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45. SB 1523
46. Initials AF Page 0 Transmitted
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