HB2897 - 562R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Laws 2022, chapter 313, section 31 is amended to read:

Sec. 31. SUPERINTENDENT OF PUBLIC INSTRUCTION

2022-23

FTE positions 203.9

Operating lump sum appropriation $ 10,348,400

Formula programs

Basic state aid 5,652,055,000

Results-based funding 68,600,000

Special education fund 36,029,200

Other state aid to districts 983,900

Classroom site fund 946,524,800

Instructional improvement fund 54,425,700

Property tax relief

Additional state aid 510,093,700

Non-formula programs

Accountability and achievement

testing 20,423,300

Adult education 21,487,800

Adult education and workforce

development administration 250,000

Alternative teacher development

program 500,000

Arizona empowerment scholarship

account administration 2,176,400

Arizona English language

learner fund 4,960,400

Code writers initiative program 1,000,000

CTED completion grants 1,000,000

CTED soft capital and equipment 1,000,000

College credit by examination

incentive program 7,472,100

College placement exam fee waiver 1,265,800

Computer science professional

development program 1,000,000

Early literacy 12,000,000

Education learning and

accountability system 5,315,400

English learner administration 6,516,900

Foster home youth transitional

housing 10,000,000

Geographic literacy 100,000

Gifted assessments 850,000

Jobs for Arizona graduates 100,000

Onetime electronic incident prevention

programs 150,000

School safety program 81,925,200

State block grant for vocational

education 11,576,300

Student level data access 350,000

Teacher certification 2,403,000

Tribal college dual enrollment

program 325,000

Total appropriation and expenditure

authority — superintendent

of public instruction $7,473,208,300

Fund sources:

State general fund $5,973,447,600

Education sales tax fund 7,000,000

Permanent state school fund 328,895,600

Teacher certification fund 2,359,100

Tribal college dual enrollment

program fund 325,000

Department of education empowerment

scholarship account fund 350,000

Expenditure authority 1,160,831,000

Operating budget

The operating lump sum appropriation includes $683,900 and 8.5 FTE positions for average daily membership auditing and $200,000 and 2 FTE positions for information technology security services.

The amount appropriated for the department of education's operating budget includes $500,000 for technical assistance and state-level administration of the K-3 reading program established pursuant to section 15-211, Arizona Revised Statutes.

Any monies available to the department of education pursuant to section 42-5029.02, subsection A, paragraph 8, Arizona Revised Statutes, for the failing schools tutoring fund established by section 15-241, Arizona Revised Statutes, in excess of the expenditure authority amounts are allocated for the purposes of section 42-5029.02, subsection A, paragraph 8, Arizona Revised Statutes.

Any monies available to the department of education pursuant to section 42-5029.02, subsection A, paragraph 6, Arizona Revised Statutes, for character education matching grants pursuant to section 15-154.01, Arizona Revised Statutes, in excess of the expenditure authority amounts are allocated for the purposes of section 42-5029.02, subsection A, paragraph 6, Arizona Revised Statutes.

Basic state aid

The appropriation for basic state aid provides basic state support to school districts for maintenance and operations funding as provided by section 15-973, Arizona Revised Statutes, and includes an estimated $328,895,600 in expendable income derived from the permanent state school fund and from state trust lands pursuant to section 37-521, subsection B, Arizona Revised Statutes, for fiscal year 2022-2023.

Monies derived from the permanent state school fund and any other non-state general fund revenue source that is dedicated to fund basic state aid shall be spent, whenever possible, before spending state general fund monies.

Except as required by section 37-521, Arizona Revised Statutes, all monies received during the fiscal year from national forests, interest collected on deferred payments on the purchase of state lands, income from investing permanent state school funds as prescribed by the enabling act and the Constitution of Arizona and all monies received by the superintendent of public instruction from whatever source, except monies received pursuant to sections 15-237 and 15-531, Arizona Revised Statutes, when paid into the state treasury are appropriated for apportionment to the various counties in accordance with law. An expenditure may not be made except as specifically authorized above.

Any monies available to the department of education pursuant to section 42-5029.02, subsection A, paragraph 5, Arizona Revised Statutes, for the increased cost of basic state aid under section 15-971, Arizona Revised Statutes, due to added school days in excess of the expenditure authority amounts are allocated for the purposes of section 42-5029.02, subsection A, paragraph 5, Arizona Revised Statutes.

Other programs

Any monies available to the department of education for the classroom site fund pursuant to section 37-521, subsection B, paragraph 4, Arizona Revised Statutes, and section 42-5029.02, subsection A, paragraph 10, Arizona Revised Statutes, in excess of expenditure authority amounts are allocated for the purposes of section 37-521, subsection B, paragraph 4, Arizona Revised Statutes, and section 42-5029.02, subsection A, paragraph 10, Arizona Revised Statutes.

Any monies available to the department of education from the instructional improvement fund established by section 15-979, Arizona Revised Statutes, in excess of the expenditure authority amounts are allocated for the purposes of section 15-979, Arizona Revised Statutes.

Before making any changes to the achievement testing program that will increase program costs, the department of education and the state board of education shall submit the estimated fiscal impact of those changes to the joint legislative budget committee for review.

Any monies available to the department of education for accountability purposes pursuant to section 42-5029.02, subsection A, paragraph 7, Arizona Revised Statutes, in excess of the expenditure authority amounts are allocated for the purposes of section 42-5029.02, subsection A, paragraph 7, Arizona Revised Statutes.

The appropriated amount for adult education includes $4,620,000 for the continuing high school and workforce training program established by section 15-217.01, Arizona Revised Statutes, $6,000,000 for deposit in the adult workforce diploma program fund established by section 15-217.02, subsection B, Arizona Revised Statutes and $6,000,000 for deposit in the community college adult education workforce development program fund established by section 15-217.03, subsection C, Arizona Revised Statutes.

Monies appropriated for CTED completion grants are intended to help fund program completion for students who complete at least fifty percent of a career technical education program before graduating from high school and who successfully complete the career technical education district program after graduating from high school. The application procedures shall award grant funding only after an eligible student has successfully completed a career technical education district program.

If the appropriated amount for CTED completion grants is insufficient to fund all grant requests from career technical education districts, the department of education shall reduce grant amounts on a proportional basis in order to cap total statewide allocations at $1,000,000.

The appropriated amount for CTED completion grants is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2024.

The department of education shall distribute the appropriated amount for CTED soft capital and equipment to career technical education districts with fewer than two thousand average daily membership pupils for soft capital and equipment expenses. The appropriated amount shall be allocated on a pro rata basis based on the average daily membership of eligible career technical education districts.

The department of education shall use the appropriated amount for English learner administration to provide English language acquisition services for the purposes of section 15-756.07, Arizona Revised Statutes, and for the costs of providing English language proficiency assessments, scoring and ancillary materials as prescribed by the department of education to school districts and charter schools for the purposes of title 15, chapter 7, article 3.1, Arizona Revised Statutes. The department may use a portion of the appropriated amount to hire staff or contract with a third party to carry out the purposes of section 15-756.07, Arizona Revised Statutes. Notwithstanding section 41-192, Arizona Revised Statutes, the superintendent of public instruction also may use a portion of the appropriated amount to contract with one or more private attorneys to provide legal services in connection with the case of Flores v. State of Arizona, No. CIV 92-596-TUC-RCC.

The amount appropriated for foster home youth transitional housing shall be distributed to the East valley institute of technology for a transitional housing unit. The legislature intends that the monies be used to construct and furnish a sixty-four bed transitional housing unit for foster youths and former foster youths who are at least seventeen years of age but not more than twenty-one twenty-three years of age and who need stable housing in order to obtain a high school diploma or a high school equivalency diploma and who are earning an industry certification in a program offered by the East valley institute of technology or an associate degree. On or before September 15 in years 2025, 2026 and 2027, the superintendent of the East valley institute of technology shall submit a report to the governor, the president of the senate, the speaker of the house of representatives and the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting, and provide a copy to the secretary of state, detailing the total number of foster youths who lived in the transitional housing unit during the immediately preceding fiscal year and the progress that each foster youth made toward obtaining a high school diploma or a high school equivalency diploma and earning an industry certification during the fiscal year.

The department of education shall use the appropriated amount for geographic literacy to issue a grant to a statewide geographic alliance for strengthening geographic literacy in this state.

The department of education shall use the appropriated amount for jobs for Arizona graduates to issue a grant to a nonprofit organization for a JOBS for Arizona graduates program.

The department of education shall use the amount appropriated for onetime electronic incident prevention programs for the purposes of awarding student safety grants to public schools. A public school that receives a student safety grant under this section shall use the grant monies to procure and implement an electronic incident prevention program.

The amount appropriated for the school safety program includes an increase of $50,000,000 for additional school safety grants. In allocating the $50,000,000 increase, the department of education shall first distribute monies to schools on the school safety program waiting list to receive grants for the costs of placing school resource officers on school campuses. The awarded grants may not supplant funding provided by local governments for school resource officers. If the total cost of funding new grants for school resource officer costs is less than $50,000,000, the department may allocate the remaining monies to grants to schools for the costs of placing school counselors and social workers on school campuses pursuant section 15-154, Arizona Revised Statutes.

Any monies available to the department of education for school safety pursuant to section 42-5029.02, subsection A, paragraph 6, Arizona Revised Statutes, in excess of the expenditure authority amounts are allocated for the purposes of section 42-5029.02, subsection A, paragraph 6, Arizona Revised Statutes.

After review by the joint legislative budget committee, in fiscal year 2022-2023, the department of education may use a portion of its fiscal year 2022-2023 state general fund appropriations for basic state aid, additional state aid or the special education fund to fund a shortfall in funding for basic state aid, additional state aid or the special education fund, if any, that occurred in fiscal year 2021-2022.

The department shall provide an updated report on its budget status every three months for the first half of each fiscal year and every month thereafter to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees, the director of the joint legislative budget committee and the director of the governor's office of strategic planning and budgeting. Each report shall include, at a minimum, the department's current funding surplus or shortfall projections for basic state aid and other major formula-based programs and is due thirty days after the end of the applicable reporting period.

Within fifteen days after each apportionment of state aid that occurs pursuant to section 15-973, subsection B, Arizona Revised Statutes, the department shall post on its website the amount of state aid apportioned to each recipient and the underlying data.

Notwithstanding section 15-901.03, Arizona Revised Statutes, the superintendent of public instruction may transfer $5,000,000 from the state general fund appropriation for basic state aid for fiscal year 2021-2022 to the results-based funding program for fiscal year 2021-2022 without review by the joint legislative budget committee. Any amount transferred to the results-based funding program under this section that exceeds the amount needed to address a funding shortfall for the results-based funding program for fiscal year 2021-2022 reverts to the state general fund on June 30, 2022.

Sec. 2. Laws 2022, chapter 313, section 38 is amended to read:

Sec. 38. ARIZONA DEPARTMENT OF FORESTRY AND FIRE MANAGEMENT

2022-23

FTE positions 235.5

Operating lump sum appropriation $ 3,393,800

Environmental county grants 250,000

Gila River nonnative species

eradication 5,000,000

Inmate firefighting crews 784,400

Postrelease firefighting crews 1,151,000

Fire suppression 200,000

Mount Lemmon fire district renovation 2,230,900

State fire marshal 1,865,100

State fire school 279,700

Hazardous vegetation removal 3,000,000

US forest service land thinning 2,150,900

Wildfire emergency response 65,000,000

Wildfire mitigation 38,837,300

Total appropriation — Arizona department

of forestry and fire management $124,143,100

Fund sources:

State general fund $124,143,100

The monies in the Gila River nonnative species eradication line item are for nonnative vegetation species eradication projects, including projects to replace nonnative vegetation species with native vegetation species and restoring habitat for wildlife, in and along the portion of the Gila River between the western boundary of the city of Avondale and the bridge over the Gila River at State Route 85. The Arizona department of forestry and fire management shall serve as the fiscal agent and contractor for the projects described in this paragraph. The department may subcontract for the eradication and other required services for the projects pursuant to title 34, chapter 6, article 1, Arizona Revised Statutes, to expedite the projects.

On or before September 1, 2023, September 1, 2024 and September 1, 2025 of each year until all monies in the Gila River nonnative species eradication line item are spent, the department shall report to the director of the joint legislative budget committee on the expected amount and purpose of expenditures from the Gila River nonnative species eradication line item. The report shall include projected line item detail. The reports shall also provide follow-up on areas previously treated with funding from the line item and whether the nonnative species have returned.

The appropriation made in the Gila River nonnative species eradication line item is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, except all monies remaining unencumbered or unexpended for the purposes of this section on June 30, 2025 2029 revert to the state general fund.

The appropriation for the hazardous vegetation removal line item is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2024.

The appropriation for the wildfire emergency response line item shall be used for the purposes and is subject to the restrictions outlined in Laws 2021, first special session, chapter 1, as amended by Laws 2022, chapter 1, section 1. The monies appropriated in the wildfire emergency response line item are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, through June 30, 2025.

From the amount appropriated for the wildfire emergency response line item, $3,000,000 shall be used for purposes related to the Woodbury fire.

Sec.3. Laws 2022, chapter 313, section 110, as amended by Laws 2023, chapter 121, section 1, is amended to read:

Sec. 110. Department of emergency and military affairs; border security; exemption; fiscal year 2022-2023

A. The sum of $209,205,000 is appropriated from the border security fund established by section 26-105, Arizona Revised Statutes, in fiscal year 2022-2023 to the department of emergency and military affairs. The department of emergency and military affairs shall allocate, in consultation with the department of public safety, the following amounts:

1. $20,000,000 to Cochise county to construct a new county jail facility. The monies allocated in this paragraph are intended to fund up to twenty percent of the total jail facility construction cost but not to exceed $20,000,000. The monies allocated in this paragraph shall not be distributed until Cochise county has submitted to the director of the joint legislative budget committee, the director of the governor's office of strategic planning and budgeting and the director of the department of administration a report that the county has raised sufficient monies to fund the remainder of the project's budget. Notwithstanding section 41-1252, Arizona Revised Statutes, the monies allocated in this paragraph are not subject to review by the joint committee on capital review. Any monies allocated pursuant to this paragraph that remain unexpended and unencumbered on June 30, 2027 revert to the border security fund established by section 26-105, Arizona Revised Statutes.

2. $15,000,000 to reimburse a county or local law enforcement agency for costs incurred by the county or local law enforcement agency for participating in a program with the United States immigration and customs enforcement pursuant to 8 United States code section 1357(g).

3. $10,000,000 for deposit in the anti-human trafficking grant fund established by section 26-106, Arizona Revised Statutes. The monies shall be allocated as follows:

(a) $2,000,000 to the department of public safety Arizona counter terrorism information center for anti-human trafficking operations that comply with the requirements prescribed in section 26-106, Arizona Revised Statutes.

(b) $8,000,000 in award grants to city, town and county law enforcement agencies, in an amount of not more than $500,000 per agency, for programs that reduce human trafficking and that comply with the requirements prescribed in section 26-106, Arizona Revised Statutes.

4. $30,000,000 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.

5. $10,000,000 for costs incurred by Arizona national guard assets augmenting and supporting the department of public safety and local law enforcement agencies relating to violations of the laws of this state in the southern Arizona border region.

6. $10,000,000 for emergency health care and testing for immigrants along the southern Arizona border.

7. $15,000,000 for transportation of individuals who entered Arizona seeking asylum to other states in the United States, including the cost of meals, onboard staffing and support.

8. $53,405,000 for deputy sheriff compensation to be distributed to the department of administration for the following purposes:

(a) $48,310,000 to counties for the purposes of a $10,000 onetime payment to line-level deputies and detention officers employed by each county sheriff's office as of May 1, 2022. The county shall distribute the payment to eligible employees in equal quarterly installments on or before October 30, 2023. From and after April 30, 2023, a county may spend monies that are unencumbered and unexpended pursuant to this subdivision for the purposes prescribed by subdivision (b) of this paragraph. If the amount is insufficient for a $10,000 per employee payment, the department shall distribute a prorated amount based on the total number of deputies and detention officers employed. On or before August 30, 2023 and August 30, 2024, each county sheriff shall submit a report to the department of administration on the actual use of the monies received and the most recent staffing and retention data for the positions receiving the payment. On or before September 30, 2023 and September 23, 2024, the department of administration shall submit a report to the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting detailing the total amounts distributed by county and summarizing the individual county reports.

(b) $5,095,000 to counties for the purposes of a $5,000 onetime payment to line-level deputies and detention officers hired after May 1, 2022. The county shall distribute the payment to eligible employees in equal quarterly installments over one year. On May 1, 2022, the department of administration shall distribute the monies to the counties based on the total number of vacancies for line-level deputies and detention officers in each county as of May 1, 2022. On or before June 30, 2023, the department shall submit a report to the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting detailing the amounts distributed to each county.

9. $800,000 for the purposes prescribed in section 26-174, Arizona Revised Statutes, regarding the established chain of command within the Arizona state guard.

10. $30,000,000 $2,322,800 for the construction costs of a state emergency operations center. Pursuant to section 41-1252, Arizona Revised Statutes, before spending the monies allocated in this paragraph, the department of emergency and military affairs shall submit for review by the joint committee on capital review the scope, purpose and estimated cost of the capital improvements.

11. $12,232,900 to the department of public safety in fiscal year 2024-2025 for local border support. The department shall use the monies to fund local law enforcement officer positions for border drug interdiction to deter and apprehend any individuals who are charged with drug trafficking, human smuggling, illegal immigration and other border-related crimes. The department shall also use the monies for grants to cities, towns and counties for costs associated with prosecuting and detaining individuals who are charged with drug trafficking, human smuggling, illegal immigration and other border-related crimes. The department may fund all capital-related equipment.

12. $15,444,300 to the department of public safety in fiscal year 2024-2025 for border drug interdiction.

11. 13. $15,000,000 to the department of public safety for the construction costs of a southern border coordinated response center. Pursuant to section 41-1252, Arizona Revised Statutes, before spending the monies allocated in this paragraph, the department of public safety shall submit for review by the joint committee on capital review the scope, purpose and estimated cost of the capital improvements.

B. Within thirty days after the end of each calendar quarter until the monies appropriated by this section are fully expended, the department of emergency and military affairs, in consultation with the Arizona department of homeland security and the department of public safety, shall report to the joint legislative budget committee on the status of the project allocations and monies expended as prescribed by this section.

C. The department of emergency and military affairs may transfer spending authority between and within the programs and purposes listed in subsection A of this section. Before making a transfer, the department shall submit the proposed transfer to the joint legislative budget committee for review.

D. The appropriations made in subsection A of this section are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

Sec. 4. Laws 2022, chapter 313, section 128 is amended to read:

Sec. 128. Appropriations; additional assistance; FRPL group B weight; fiscal year 2024-2025

A. The sum of $23,836,000 is appropriated from the state general fund in fiscal year 2024-2025 to the department of education for basic state aid and a onetime charter additional assistance supplement. The appropriated amount shall be used as follows:

1. $17,978,000 shall be allocated to fund an ongoing increase in the per pupil charter additional assistance amounts prescribed in section 15-185, subsection B, paragraph 4, Arizona Revised Statutes, above the amount of charter additional assistance that otherwise would be provided by law for fiscal year 2024-2025.

2. $5,858,000 shall be allocated for a onetime charter additional assistance supplement in fiscal year 2024-2025. The department of education shall distribute the appropriated amount for the onetime charter additional assistance supplement to charter schools on a proportional basis based on the charter additional assistance funding that each charter school in this state receives in fiscal year 2024-2025.

B. The sum of $94,164,000 is appropriated from the state general fund in fiscal year 2024-2025 to the department of education for basic state aid and a onetime charter additional assistance supplement. The appropriated amount shall be used as follows:

1. $71,022,000 shall be allocated to fund an ongoing increase in the per pupil district additional assistance amounts prescribed in section 15-961, Arizona Revised Statutes, above the amount of district additional assistance that otherwise would be provided by law for fiscal year 2024-2025.

2. $23,142,000 shall be allocated for a onetime district additional assistance supplement in fiscal year 2024-2025. The department of education shall distribute the appropriated amount for the onetime district additional assistance supplement to school districts on a proportional basis based on the district additional assistance funding that each district in this state receives in fiscal year 2024-2025 and increase the budget limits pursuant to section 15-947, Arizona Revised Statutes, accordingly. A school district may budget the monies it receives from the onetime district additional assistance supplement in either the school district's maintenance and operation fund or unrestricted capital outlay fund.

C. The sum of $100,000,000 is appropriated from the state general fund in fiscal year 2024-2025 to the department of education for basic state aid and a onetime FRPL group B weight supplement. The appropriated amount shall be used as follows:

1. $63,000,000 shall be allocated to fund an ongoing increase in the FRPL group B weight established by section 15-943, paragraph 2, subdivision (b), Arizona Revised Statutes.

2. $37,000,000 shall be allocated for a onetime frpl group b weight supplement in fiscal year 2024-2025. The department of education shall distribute the appropriated amount for the onetime frpl group b weight supplement to school districts and charter schools on a pro rata basis using the weighted student count for frpl pupils for the school district or charter school pursuant to section 15-943, paragraph 2, subdivision (b), Arizona Revised Statutes, and increase the budget limits pursuant to section 15-947, Arizona Revised Statutes, accordingly. A school district may budget the monies it receives from the onetime frpl group b weight supplement in either the school district's maintenance and operation fund or unrestricted capital outlay fund.

Sec. 5. Repeal

Laws 2022, chapter 366, section 33 is repealed.

Sec. 6. Laws 2023, chapter 133, section 9 is amended to read:

Sec. 9. ARIZONA DEPARTMENT OF AGRICULTURE

2023-24

FTE positions 209.9

Operating lump sum appropriation $ 17,504,200

Agricultural employment relations

board 23,300

Animal damage control 65,000

Red imported fire ant control 23,200

Agricultural consulting and

training 136,300

Total appropriation — Arizona department

of agriculture $ 17,752,000

Fund sources:

State general fund $ 16,154,200

Air quality fund 1,597,800

Of the monies in the department's operating lump sum appropriation, $1,199,600 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2026.

Sec. 7. Laws 2023, chapter 133, section 17 is amended to read:

Sec. 17. DEPARTMENT OF CHILD SAFETY

2023-24

FTE positions 3,283.1

Operating lump sum appropriation $147,938,100 $148,764,300

Additional operating resources

Attorney general legal services 25,522,800

Caseworkers 124,293,500 157,293,500

Office of child welfare

investigations 11,245,700

Training resources 9,150,000

Out-of-home placements

Congregate group care 114,918,700 132,608,300

Extended foster care 26,553,900 19,887,200

Extended foster care service model

fund deposit 19,243,300*

Foster home placement 51,929,500 40,706,500

Foster home recruitment,

study and supervision 32,753,600

Kinship care ~~24,811,200~~ 16,214,200

Permanent placements

Adoption services ~~294,923,500~~ 282,574,300

Permanent guardianship subsidy ~~12,516,900~~ 15,622,000

~~Positive parenting program for post~~

permanency placements pilot 4,000,000*

Support services

DCS child care subsidy 61,675,400

In-home mitigation ~~28,988,100~~ 41,529,300

Out-of-home support services ~~122,710,800~~ 113,284,600

Preventive services 29,648,300

Comprehensive health plan

services 161,546,700

Comprehensive health plan

administration 27,461,200

Comprehensive health plan

premium tax 3,857,300

Total appropriation and expenditure

authority — department of

child safety $~~1,335,688,500~~ $1,350,588,500

Fund sources:

State general fund $ 500,879,600

Federal child care and

development fund block grant 40,516,000

Federal temporary assistance

for needy families block

grant 161,082,200

Child abuse prevention fund 1,459,300

Children and family services

training program fund 208,000

Child safety expenditure authority ~~442,357,400~~ 452,557,400

Child welfare licensing fee fund 1,020,800

Comprehensive health plan

expenditure authority fund —

expenditure authority 192,865,200

Additional operating resources

The department of child safety shall provide training to any new child safety FTE positions before assigning any client caseload duties to any of these employees.

The legislature intends that the department of child safety use its funding to achieve a one hundred percent investigation rate.

All expenditures made by the department of child safety for attorney general legal services shall be funded only from the attorney general legal services line item. Monies in department of child safety line items intended for this purpose shall be transferred to the attorney general legal services line item before expenditure.

THE AMOUNT APPROPRIATED FOR THE CASEWORKERS LINE ITEM INCLUDES A ONETIME INCREASE OF $19,700,000 FROM THE STATE GENERAL FUND FOR INCREASED OPERATING EXPENDITURES IN FISCAL YEAR 2023-2024. THIS AMOUNT IS EXEMPT FROM THE PROVISIONS OF SECTION 35-190, ARIZONA REVISED STATUTES, RELATING TO LAPSING OF APPROPRIATIONS until June 30, 2025.

ON OR BEFORE SEPTEMBER 1, 2024, THE DEPARTMENT SHALL SUBMIT A REPORT TO THE JOINT LEGISLATIVE BUDGET COMMITTEE AND THE GOVERNOR'S OFFICE OF STRATEGIC PLANNING AND BUDGETING ON ACTUAL OPERATING EXPENSES FOR THE GUARDIAN CASE MANAGEMENT SYSTEM IN FISCAL YEAR 2023-2024, AS WELL AS PROPOSED SYSTEM OPERATING EXPENSES FOR FISCAL YEAR 2024-2025.

Out-of-home placements

The department of child safety may transfer up to ten percent of the total amount of federal temporary assistance for needy families block grant monies appropriated to the department of economic security and the department of child safety to the social services block grant. Before transferring federal temporary assistance for needy families block grant monies to the social services block grant, the department of child safety shall report the proposed amount of the transfer to the director of the joint legislative budget committee. This report may be in the form of an expenditure plan that is submitted at the beginning of the fiscal year and updated, if necessary, throughout the fiscal year.

The amount appropriated for kinship care shall be used for a stipend of $300 per month for a relative caretaker, including a grandparent, any level of great-grandparent or any nongrandparent relative, or a caretaker of fictive kinship, if a dependent child is placed in the care of a relative caretaker or caretaker of fictive kinship pursuant to department guidelines. The department shall provide the stipend on behalf of all children placed with an unlicensed kinship foster care parent. The unlicensed kinship foster care parent is not required to file an application to receive the stipend. Before changing the eligibility for the program or the amount of the stipend, the department shall submit a report for review by the joint legislative budget committee detailing the proposed changes.

On or before March 31, 2024, the department of child safety shall report to the joint legislative budget committee the number of children who are part of the kinship stipend program and reside with a nonrelative caretaker of fictive kinship.

Departmentwide

The amount appropriated for any line item may not be transferred to another line item or to the operating budget unless the transfer is reviewed by the joint legislative budget committee, except that transfers between any two line items relating to the comprehensive health plan are not subject to review.

Child safety expenditure authority includes all department funding sources excluding the state general fund, the federal child care and development fund block grant, the federal temporary assistance for needy families block grant, the child abuse prevention fund, the children and family services training program fund and the comprehensive health plan expenditure authority fund.

On or before December 1, 2023, the department of child safety shall submit a report to the joint legislative budget committee on the department's efforts to implement the family first prevention services act of 2018. The report shall quantify the department's efforts in at least the following areas, including any associated fiscal impacts:

1. Reducing the number of children placed for more than two weeks in congregate care settings, excluding qualified residential treatment programs, facilities for pregnant and parenting youth, supervised independent living and specialized programs for victims of sex trafficking.

2. Assisting congregate care providers in attaining status as qualified residential treatment programs.

3. Identifying alternative placements, including therapeutic foster homes, for children who would otherwise be placed in congregate care.

4. Expanding evidence-based, in-home parent skill-based programs and mental health and substance abuse prevention and treatment services.

Benchmarks

For the purposes of this section, "backlog case":

1. Means any nonactive case for which documentation has not been entered in the child welfare automated system for at least sixty days and for which services have not been authorized for at least sixty days and any case that has had an investigation, has been referred to another unit and has had no contact for at least sixty days.

2. Includes any case for which the investigation has been open without any documentation or contact for at least sixty days, any case involving in-home services for which there has been no contact or services authorized for at least sixty days and any case involving foster care in which there has been no contact or any documentation entered in the child welfare automated system for at least sixty days.

For the purposes of this section:

1. "Long-term case" means any case in which the child has been in an out-of-home placement for at least eighteen months.

2. "Open report" means a report that is under investigation or awaiting closure by a supervisor.

On or before February 28, 2024 and August 31, 2024, the department of child safety shall present a report to the joint legislative budget committee on the progress made during July 2023 through December 2023 and January 2024 through June 2024, respectively, in meeting the caseload standard and reducing the number of backlog and long-term cases. Each report shall include the number of backlog cases, the number of open reports, the number of long-term cases and the caseworker workload in comparison to the previous six months. Each report shall provide the number of backlog cases by disposition, including the number of backlog cases in the investigation phase, the number of backlog cases associated with out-of-home placements and the number of backlog cases associated with in-home cases.

To determine the caseworker workload, the department shall report the number of case-carrying caseworkers at each field office and the number of investigations, in-home cases and long-term cases assigned to each field office.

For backlog cases, the department's benchmark is 1,000 cases.

For open reports, the department's benchmark is fewer than 8,000 open reports.

For long-term cases, the department's benchmark is 3,323 cases.

If the department of child safety has not submitted a required report within thirty days after the report is due, the director of the joint legislative budget committee shall inform the general accounting office of the department of administration, which shall withhold two percent of the department of child safety's operating lump sum semiannual budget allocation until the department of child safety submits the required report.

Sec. 8. Laws 2023, chapter 133, section 23 is amended to read:

Sec. 23. STATE DEPARTMENT OF CORRECTIONS

2023-24

FTE positions 9,569.0

Operating lump sum appropriation $ 898,184,300 $ 876,476,900

Private prison per diem 289,858,400 289,069,200

Community corrections 27,681,200 25,681,200

Inmate health care contracted

services 321,620,200 317,881,700

Substance abuse treatment 5,445,400

Transitional and reentry housing 5,000,000*

Transitional housing grants 2,000,000

Inmate dog training 650,000

Noncontract medication 40,746,500

Injunction-related IT upgrades 4,770,300

Total appropriation — state department

of corrections $1,550,439,500 $1,567,721,200

Fund sources:

State general fund $1,492,541,000 $1,429,675,200

State education fund for

correctional education 738,900

Alcohol abuse treatment fund 555,800

Penitentiary land fund 2,777,600 5,243,200

State charitable, penal and

reformatory institutions

land fund 2,665,100 5,347,000

Corrections fund 31,312,500

Transition program fund 4,400,300

Prison construction and

operations fund 14,106,800

Inmate store proceeds fund 1,341,500

Consumer restitution and remediation

revolving fund – consumer

remediation subaccount 75,000,000

Of the amount appropriated in the operating lump sum, $495,853,200 $480,658,000 is designated for personal services, $234,006,200 $227,494,000 is designated for employee-related expenditures and $15,540,500 is designated for overtime expenditures. The department shall submit an expenditure plan for review by the joint legislative budget committee before spending these monies other than for personal services or employee-related expenditures.

After the department submits an expenditure plan to the joint legislative budget committee, the department may transfer personal services and employee-related expenditures savings from the operating budget to the private prison per diem line item for private prison staff stipends. The amount of any private prison staff stipend may not exceed the amount given to department staff. The expenditure plan is not subject to review by the joint legislative budget committee.

Private prison vendors who contract with this state may use staff vacancy savings to pay for overtime costs without incurring a penalty or staffing offset.

Before placing any inmates in out-of-state provisional beds, the department shall place inmates in all available prison beds in facilities that are located in this state and that house Arizona inmates, unless the out-of-state provisional beds are of a comparable security level and price.

The state department of corrections shall forward to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees and the director of the joint legislative budget committee a monthly report comparing department expenditures for the month and year-to-date as compared to prior-year expenditures on or before the thirtieth of the following month. The report shall be in the same format as the prior fiscal year and include an estimate of potential shortfalls, potential surpluses that may be available to offset these shortfalls and a plan, if necessary, for eliminating any shortfall without a supplemental appropriation. The report shall include the number of filled and vacant correctional officer and medical staff positions departmentwide and by prison complex.

On or before November 1, 2023, the state department of corrections shall provide a report on bed capacity to the joint legislative budget committee. The report shall reflect the bed capacity for each security classification by gender at each state-run and private institution, divided by rated and total beds. The report shall include bed capacity data for June 30, 2022 and June 30, 2023 and the projected capacity for June 30, 2024, as well as the reasons for any change within that time period. Within the total bed count, the department shall provide the number of temporary and special use beds. The report shall also address the department's rationale for eliminating any permanent beds rather than reducing the level of temporary beds. The report shall also include any plans to vacate beds but not permanently remove the beds from the bed count.

If the department develops a plan after the department's November 1, 2023 report to open or close 100 or more state-operated or private prison rated beds, the department shall submit a plan detailing the proposed bed changes for review by the joint legislative budget committee before implementing these changes.

One hundred percent of land earnings and interest from the penitentiary land fund shall be distributed to the state department of corrections in compliance with the enabling act and the Constitution of Arizona to be used to support state penal institutions.

On or before December 15, 2023 and July 15, 2024, the state department of corrections shall submit a report to the joint legislative budget committee on the progress made in meeting the staffing needs for correctional officers. Each report shall include the number of filled correctional officer positions, the number of vacant correctional officer positions, the number of people in training, the number of separations and the number of hours of overtime worked year-to-date. The report shall detail these amounts both departmentwide and by prison complex.

Twenty-five percent of land earnings and interest from the state charitable, penal and reformatory institutions land fund shall be distributed to the state department of corrections in compliance with the enabling act and the Constitution of Arizona to be used to support state penal institutions.

Before spending any state education fund for correctional education monies in excess of $738,900, the state department of corrections shall report the intended use of the monies to the director of the joint legislative budget committee.

Before implementing any changes in contracted rates for inmate health care contracted services, the state department of corrections shall submit its expenditure plan for review by the joint legislative budget committee.

On or before August 1, 2023 and February 1, 2024, the state department of corrections shall submit a report to the joint legislative budget committee on the status of all inmate health care performance measures that are tracked by the department for contract monitoring purposes. Each report must include:

1. The total number of performance measures, by facility, for which the department is not in substantial compliance.

2. An explanation for each instance of noncompliance.

3. The department's plan to comply with the performance measures.

On or before August 1, 2023, the state department of corrections shall transfer to the public safety personnel retirement system via the department of administration its estimated required annual contribution to the corrections officer retirement plan for fiscal year 2023-2024.

The department shall report actual fiscal year 2022-2023, estimated fiscal year 2023-2024 and requested fiscal year 2024-2025 expenditures as delineated in the prior year when the department submits its fiscal year 2024-2025 budget request pursuant to section 35-113, Arizona Revised Statutes.

On or before July 15, 2023, the state department of corrections shall submit a report to the joint legislative budget committee detailing the expenditure of monies appropriated in fiscal year 2021-2022 for medical staffing augmentation. The department shall continue to report on July 15 of each year until all monies have been expended.

The amount appropriated in the transitional and reentry housing line item shall be used by the state department of corrections to secure through a competitive grant process a program that does all of the following:

1. Provides evidence-based, evidence-informed and culturally competent substance use treatment and substance use early intervention services that includes referral services, stabilization, detox, inpatient treatment, transitional residence and outpatient services to individuals who may have one or a combination of the following conditions:

(a) Involvement with the justice system.

(b) A mental health diagnosis, including a diagnosis as being seriously mentally ill.

(d) Experienced homelessness or are at a high risk of becoming homeless.

2. Provides residential inpatient treatment services for up to ninety days and provides long-term recovery supportive housing for up to twenty-four months after inpatient treatment services end.

3. Delivers forensic peer and family support services to enhance and strengthen successful reentry into the community that include workforce development, securing permanent housing, navigating systems of care, educational and professional development opportunities, family connection and reintegration services, supporting multiple pathways to recovery and providing sober social activities.

4. Uses technology to promote long-term recovery.

5. Delivers treatment for reentry and long-term recovery services and provides support via a campus-based continuum of care model where services and support are colocated.

The amount appropriated in the transitional housing grants line item shall be used to establish a program to provide grants to nonprofit organizations that support individuals who are incarcerated by helping prepare them for release and transition back into the community. To be eligible for a grant, a nonprofit organization must meet all of the following criteria:

1. Have a verifiable record of mentoring at least three thousand inmates while the inmates were in prison for at least a two-year period.

2. Use the grant monies for individuals that have been previously mentored by the nonprofit organization. To receive resources from the grant, individuals being released from prison must have been mentored for at least three months by the nonprofit organization while the individual was in prison.

3. Demonstrate that the nonprofit organization can provide individuals being released from prison with all of the following:

(a) Up to two weeks of housing at no cost to the individual, if necessary as assessed by the nonprofit organization and up to six months of housing at a reduced rate.

(b) Behavioral health services, including peer support and case management.

(d) Within four months after release, assistance with securing employment that offers health insurance and assistance with disenrolling from the Arizona health care cost containment system.

On or before August 31, 2024, the department shall submit a report to the governor, the president of the senate and the speaker of the house of representatives that includes all of the following for the prior year:

1. The names of the nonprofit organizations that were awarded grants.

2. The number of individuals who were served by the nonprofit organizations through the grant program.

3. The number of individuals who were served by the nonprofit organizations, who found employment that provides health insurance and who were disenrolled from the Arizona health care cost containment system.

The amount appropriated in the inmate dog training line item shall be used to contract with a nonprofit organization that trains inmates to rehabilitate and resocialize at-risk shelter dogs. The amount appropriated in the inmate dog training line item is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2025.

The department may spend the $2,000,000 appropriated by Laws 2022, chapter 313, section 23 for the community treatment program for imprisoned women line item on community corrections line item expenditures in fiscal year 2023-2024.

Included in the operating lump sum appropriation is $75,000,000 from the consumer remediation subaccount of the consumer restitution and remediation revolving fund established by section 44-1531.02, Arizona Revised Statutes. This amount consists of monies deposited in the subaccount pursuant to opioid claims-related litigation or settlements. This amount is intended to offset past and current department costs for care, treatment, programs and other expenditures for individuals with opioid use disorder and any co-occurring substance use disorder or mental health conditions or for any other specified purposes that are included in a court order or a settlement or compromise that is entered into by this state and other parties to the opioid litigation.

The amount appropriated in the injunction-related IT upgrades line item shall be used to address information technology improvements as required by the court in the Jensen v Thornell inmate health care litigation. The amount appropriated in the injunction-related IT upgrades line item is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2025.

The department shall use the amount appropriated in the noncontract medication line item to purchase medications to treat hepatitis C and for medication-assisted treatment for substance use disorder. Before spending these monies for any other purpose, the department shall submit an expenditure plan for review by the joint legislative budget committee. The amount appropriated in the noncontract medication line item is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2025.

Sec. 9. Laws 2023, chapter 133, section 97 is amended to read:

Sec. 97. DEPARTMENT OF WATER RESOURCES

2023-24

FTE positions 179.0

Operating lump sum appropriation $ 15,228,500

Adjudication support 1,900,600

Arizona water protection fund

deposit 1,250,000

Assured and adequate water supply

administration 2,513,400

Brackish groundwater study 100,000*

Brackish groundwater recovery pilot

program 11,000,000*

Rural water studies 1,290,800

Conservation and drought program 430,300

Automated groundwater monitoring 418,600

Colorado River legal expenses 500,000*

Water supply and demand assessment 3,500,000

Santa Rosa canal groundwater

delivery 25,000,000*

Statewide water resources planning 5,000,000

Total appropriation - department of water

resources $ 68,132,200 $ 57,132,200

Fund sources:

State general fund $ 66,114,500 $ 55,114,500

Water resources fund 1,726,500

Assured and adequate water

supply administration fund 291,200

Monies in the assured and adequate water supply administration line item may be used only for the exclusive purposes prescribed in sections 45-108, 45-576, 45-577, 45-578 and 45-579, Arizona Revised Statutes. The department of water resources may not transfer any monies into or out of the assured and adequate water supply administration line item.

The department of water resources shall use the monies in the brackish groundwater study line item to review and update information contained in studies on the availability of brackish groundwater in this state.

Of the $11,000,000 allocated to the brackish groundwater recovery pilot program line item, $2,000,000 is allocated to the department of water resources for a brackish groundwater desalination demonstration program and to develop a base of knowledge to enhance groundwater recovery through desalination in this state's active management areas. The department shall locate this pilot program within the department's active management area section and a portion of the monies may be used for staffing. The department shall organize the program following the model of work undertaken by the Texas water development board to further the use and development of cost-effective desalination technologies.

Of the $11,000,000 allocated to the brackish groundwater recovery pilot program line item, $9,000,000 is allocated for matching participants dollar-for-dollar for brackish groundwater desalination projects within active management areas undertaken for the benefit of those receiving water from the central Arizona project. The central Arizona project shall receive three dollars for every dollar it contributes to this pilot program.

The legislature intends that monies in the rural water studies line item be spent only to assess local water use needs and to develop plans for sustainable future water supplies in rural areas outside this state's active management areas and not be made available for other department operating expenditures.

Monies in the adjudication support line item may be used only for the exclusive purposes prescribed in section 45-256, Arizona Revised Statues, and section 45-257, subsection B, paragraph 4, Arizona Revised Statutes. The department of water resources may not transfer any monies into or out of the adjudication support line item.

The department of water resources may not transfer any monies from the Colorado River legal expenses line item without prior review by the joint legislative budget committee.

On or before July 31, 2024, the department of water resources shall report to the joint legislative budget committee and the governor's office of strategic planning and budgeting on the uses of the monies appropriated to the statewide water resources planning line item.

The department of water resources shall use the monies in the Santa Rosa canal groundwater delivery line item to distribute equally between the irrigation districts that are constructing infrastructure in furtherance of the purposes of the settlement between the Maricopa-Stanfield irrigation and drainage district, the central Arizona irrigation and drainage district and the Ak-Chin Indian community and with respect to the delivery of groundwater by the districts by means other than the Santa Rosa canal.

Sec. 10. Laws 2023, chapter 133, section 113 is amended to read:

Sec. 113. Automation projects fund; appropriations; quarterly reports; exemption; fiscal year 2023-2024

A. The sum of $20,647,800 is appropriated from the human resources information system subaccount in the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, in fiscal year 2023-2024 to the department of administration to replace the human resources information system.

B. The sum of $15,000,000 is following amounts are appropriated from the health and human services information system subaccount in the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, in fiscal year 2023-2024 to the department of administration for the following statewide health and human services information technology projects:

1. $6,700,000 for a new information technology platform to authenticate individuals applying for health and human service programs to prevent fraud, waste and abuse. This project is subject to review by the joint legislative budget committee.

2. $2,814,600 for the development of several modules associated with the medicaid enterprise system mainframe replacement. This project is deemed to have been favorably reviewed by the joint legislative budget committee.

3. $1,685,400 for medicaid enterprise system fraud and waste abuse prevention enhancements. This project is deemed to have been favorably reviewed by the joint legislative budget committee.

4. $2,000,000 for the medicaid enterprise system systems integrator, which establishes a platform infrastructure in the cloud to serve as the foundation for the modular replacement of the prior prepaid medicaid management information system, and servicenow projects. This amount was favorably reviewed by the joint legislative budget committee in october 2023.

C. The sum of $1,800,000 is transferred from the health and human services information system subaccount in the automation projects fund established pursuant to section 41-714, Arizona revised statutes, in fiscal year 2023-2024 for deposit in the state general fund.

C. D. The sum of $2,000,000 is appropriated from the department of administration subaccount in the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, in fiscal year 2023-2024 to the department of administration for the K-12 school financial transparency reporting portal.

D. E. The sum of $7,000,000 is appropriated from the corporation commission subaccount in the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, in fiscal year 2023-2024 to the corporation commission to replace the corporation commission's online records and filing system. As part of the department of administration's request for expenditure review pursuant to section 41-714, Arizona Revised Statutes, the department shall also submit a report for review of the agency's plan to support the business one-stop project through its completion, including plans for how the new system will integrate with the business one-stop solution.

E. F. The sum of $494,500 is appropriated from the department of public safety subaccount in the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, in fiscal year 2023-2024 to the department of public safety to replace the concealed weapons tracking system.

F. G. The sum of $19,369,400 is appropriated from the department of revenue subaccount in the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, in fiscal year 2023-2024 to the department of revenue to implement the integrated tax system modernization project. The monies appropriated in this subsection shall be spent for an integrated tax system modernization project that meets the following minimum specifications:

1. Captures data fields from electronically filed individual and corporate income tax returns and makes the data available for querying and reporting purposes. The system shall provide the department of revenue staff, the joint legislative budget committee staff and governor's office of strategic planning and budgeting staff direct access to the querying and reporting functions. The querying and reporting functions shall include procedures to protect taxpayer confidentiality under applicable state and federal law.

2. For electronic corporate income tax returns, captures information regarding the principal business activity of the corporation. This requirement may be satisfied through North American industry classification system data listed on federal tax forms. The tax system shall allow for querying and reporting based on principal business activity.

3. Includes an integrated individual income tax model within the project and provides the department of revenue staff, the joint legislative budget committee staff and governor's office of strategic planning and budgeting staff direct access to the individual income tax model. At a minimum, the model shall allow the department of revenue staff, the joint legislative budget committee staff and governor's office of strategic planning and budgeting staff to adjust tax law parameters against an anonymized representative sample of income tax returns to estimate the fiscal impact of proposed tax legislation. The model shall only include data from state and federal tax returns that are captured by the tax system. The individual income tax model shall include procedures to protect taxpayer confidentiality under applicable state and federal law.

4. Makes individual and corporate income tax data available for querying, modeling and reporting within twenty-four months following the end of a tax year.

Before awarding any procurement contract for the tax system, the department of revenue shall submit a report addressing the project specifications contained in this subsection for review by the joint legislative budget committee.

G. H. As part of the department of administration's request for expenditure review pursuant to section 41-714, Arizona Revised Statutes shall, the department shall also submit a report for review of the agency's plan to support the business one-stop project through its completion, including plans for how the new system will integrate with the business one-stop solution.

H. I. The following amounts are appropriated from the judiciary-supreme court subaccount in the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, in fiscal year 2023-2024 to the Arizona supreme court for the following automation and information projects:

1. $3,270,000 to replace the probation case management system.

2. $2,500,000 for a statewide community supervision electronic monitoring system.

Quarterly Reports

I. J. Within thirty days after the last day of each calendar quarter, the department of administration shall submit to the joint legislative budget committee a quarterly report on implementing projects approved by the information technology authorization committee established by section 18-121, Arizona Revised Statutes, including the projects' expenditures to date, deliverables, timeline for completion and current status.

Nonlapsing

J. K. The amount appropriated pursuant to this section from the automation projects fund established by section 41-714, Arizona Revised Statutes, in fiscal year 2023-2024 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2025.

K. L. Notwithstanding Laws 2021, chapter 408, section 117, the following amounts appropriated from the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, in fiscal year 2021-2022 to the department of administration by Laws 2021, chapter 408, section 117 are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2024:

1. $7,758,900 from the department of administration subaccount in the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, to develop a business one-stop web portal.

2. $9,000,000 appropriated from the department of economic security subaccount in the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, to update the childcare management system at the department of economic security.

3. $550,000 appropriated from the department of public safety subaccount in the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, to the department of administration to update the concealed weapons tracking system at the department of public safety.

Sec. 11. Subject to applicable laws, the sums or sources of revenue set forth in this act are appropriated for the fiscal years indicated and only from the funding sources listed for the purposes and objects specified. If monies from funding sources in this act are unavailable, no other funding source may be used.

Sec. 12. ARIZONA STATE BOARD OF ACCOUNTANCY

2024-25

FTE positions 14.0

Lump sum appropriation $ 2,230,400

Fund sources:

Board of accountancy fund $ 2,230,400

Sec. 13. ACUPUNCTURE BOARD OF EXAMINERS

2024-25

FTE positions 1.0

Lump sum appropriation $ 200,600

Fund sources:

Acupuncture board of examiners

fund $ 200,600

Sec. 14. DEPARTMENT OF ADMINISTRATION

2024-25

FTE positions 548.1

Operating lump sum appropriation $ 93,677,400

Utilities 7,649,900

Arizona financial information

system 11,480,000

Risk management administrative

expenses 10,870,700

Risk management losses and

premiums 54,414,800

Workers' compensation losses

and premiums 28,395,000

Cyber risk insurance 23,037,200

Information technology project

management and oversight 1,656,700

State surplus property sales

agency proceeds 1,810,000

Digital solutions office 1,345,700

Critical applications catalogue 900,000

Cybersecurity systems

administration 446,500

School district health insurance

actuarial study 250,000

Government transformation office 2,055,500

Total appropriation — department of

administration $237,989,400

Fund sources:

State general fund $ 9,295,100

Air quality fund 928,200

Arizona financial information

system collections fund 11,480,000

Automation operations fund 29,726,400

Capital outlay stabilization fund 20,997,700

Corrections fund 628,900

Cyber risk insurance fund 23,037,200

Federal surplus materials revolving

fund 468,200

Information technology fund 3,951,500

Personnel division fund 13,922,500

Risk management revolving fund 101,874,600

Special employee health insurance

trust fund 5,684,700

Special services revolving fund 1,243,000

State surplus materials revolving

fund 3,048,900

State web portal fund 9,329,300

Telecommunications fund 2,373,200

The appropriation from the automation operations fund established by section 41-711, Arizona Revised Statutes, is an estimate representing all monies, including balance forward, revenues and transfers during fiscal year 2024-2025. These monies are appropriated to the department of administration for the purposes established in section 41-711, Arizona Revised Statutes. The appropriation is adjusted as necessary to reflect monies credited to the automation operations fund for automation operation center projects. Before spending any automation operations fund monies in excess of $29,726,400 in fiscal year 2024-2025, the department shall report the intended use of the monies to the joint legislative budget committee.

On or before September 1, 2025, the department shall submit a report to the joint legislative budget committee on the results of pilot projects implemented in fiscal year 2024-2025 for the state employee public transportation service reimbursements pursuant to section 41-710.01, Arizona Revised Statutes, in a vehicle emissions control area as defined in section 49-541, Arizona Revised Statutes, of a county with a population of more than four hundred thousand persons.

All state surplus materials revolving fund monies received by the department of administration in excess of $3,048,900 in fiscal year 2024-2025 are appropriated to the department. Before spending state surplus materials revolving fund monies in excess of $3,048,900 in fiscal year 2024-2025, the department shall report the intended use of the monies to the joint legislative budget committee.

On or before November 1, 2025, the department shall submit a report to the director of the joint legislative budget committee on expenditures made from the cyber risk insurance fund established by section 41-622, Arizona Revised Statutes, from the prior year.

The amount appropriated for a school district health insurance actuarial study shall be used to conduct an actuarial study of the cost and benefits for school district optional participation in the state health insurance program. On or before December 31, 2024, the department shall submit a report to the governor, the president of the senate, the speaker of the house of representatives and the director of the joint legislative budget committee on the findings of the school district health insurance actuarial study.

Sec. 15. DEPARTMENT OF ADMINISTRATION, DIVISION OF SCHOOL FACILITIES

2024-25

FTE positions 17.0

Operating lump sum appropriation $ 1,653,400

New school facilities debt service 9,938,100

Building renewal grants deposit 199,967,900

New school facilities 31,489,500

Total appropriation — department of

administration, division

of school facilities $243,048,900

Fund sources:

State general fund $243,048,900

Pursuant to section 35-142.01, Arizona Revised Statutes, any reimbursement received by or allocated to the division of school facilities under the federal qualified school construction bond program in fiscal year 2024-2025 shall be deposited in or revert to the state general fund.

At least thirty days before any monies are transferred out of the new school facilities debt service line item, the division of school facilities shall report the proposed transfer to the director of the joint legislative budget committee.

Pursuant to section 41-5741, Arizona Revised Statutes, the amount appropriated for new school facilities shall be used only for facilities and land costs for school districts that received final approval from the division of school facilities on or before December 15, 2023.

The division of school facilities may also use the unencumbered balance of up to $24,613,700 in the new school facilities fund established by section 41-5741, Arizona Revised Statutes, for facilities and land costs for school districts that received final approval from the division of school facilities on or before December 15, 2023 pursuant to section 41-5741, Arizona Revised Statutes.

The division of school facilities may also use the unencumbered balance of up to $3,595,000 in the new school facilities fund established by section 41-5741, Arizona Revised Statutes, for construction costs for the Pima unified school district new high school construction project that received final approval from the division of school facilities on December 15, 2021.

After approving a distribution of funding for a land purchase, a land lease or the construction of a new school, the division of school facilities shall report to the joint legislative budget committee and the governor's office of strategic planning and budgeting the final amount of the distribution.

Sec. 16. OFFICE OF ADMINISTRATIVE HEARINGS

2024-25

FTE positions 12.0

Lump sum appropriation $ 990,000

Fund sources:

State general fund $ 990,000

Sec. 17. ARIZONA DEPARTMENT OF AGRICULTURE

2024-25

FTE positions 209.4

Operating lump sum appropriation $ 16,941,200

Agricultural employment relations

board 23,300

Animal damage control 65,000

Red imported fire ant control 23,200

Agricultural consulting and

training 135,700

Total appropriation — Arizona department

of agriculture $ 17,188,400

Fund sources:

State general fund $ 15,605,100

Air quality fund 1,583,300

Sec. 18. ARIZONA HEALTH CARE COST CONTAINMENT SYSTEM

2024-25

FTE positions 2,459.3

Operating lump sum appropriation $ 155,687,100

Administration

AHCCCS data storage 19,325,800

DES eligibility 97,074,500

Proposition 204 — AHCCCS

administration 15,222,200

Proposition 204 — DES eligibility 44,358,700

Medicaid services

Traditional medicaid services 8,144,224,600

Proposition 204 services 7,769,810,300

Adult expansion services 740,010,600

Comprehensive medical and

dental program 177,233,200

KidsCare services 229,689,800

ALTCS services 2,472,720,900

Behavioral health services

in schools 8,630,600

Nonmedicaid behavioral health services

Crisis services 16,391,300

Nonmedicaid seriously mentally

ill services 77,646,900

Supported housing 65,324,800

Hospital payments

Disproportionate share payments 5,087,100

Disproportionate share payments —

voluntary match 65,330,500

Critical access hospitals 16,454,300

Graduate medical education 469,246,600

Targeted investments program 56,000,000

Total appropriation and expenditure

authority — Arizona health

care cost containment system $20,645,469,800

Fund sources:

State general fund $ 2,665,167,000

Budget neutrality compliance fund 4,914,300

Children's health insurance

program fund 174,025,900

Prescription drug rebate

fund — state 189,831,600

Seriously mentally ill

housing trust fund 217,700

Substance abuse services fund 2,250,200

Tobacco products tax fund —

emergency health services

account 17,458,500

Tobacco tax and health care

fund — medically needy account 66,586,300

Expenditure authority 17,525,018,300

Operating budget

The amount appropriated for the DES eligibility line item shall be used for intergovernmental agreements with the department of economic security for eligibility determination and other functions. The state general fund share may be used for eligibility determination for other programs administered by the division of benefits and medical eligibility based on the results of the Arizona random moment sampling survey.

The amounts included in the proposition 204 — AHCCCS administration, proposition 204 — DES eligibility and proposition 204 services line items include all available sources of funding consistent with section 36-2901.01, subsection B, Arizona Revised Statutes.

Before spending the monies for the replacement of the prepaid medicaid management information system, the Arizona strategic enterprise technology office shall submit, on behalf of the Arizona health care cost containment system, an expenditure plan for review by the joint legislative budget committee. The report shall include the project cost, deliverables, the timeline for completion and the method of procurement that are consistent with the department's prior reports for its appropriations from the automation projects fund.

Medical services and behavioral health services

Before making fee-for-service program or rate changes that pertain to fee-for-service rate categories, the Arizona health care cost containment system administration shall report its expenditure plan for review by the joint legislative budget committee.

The Arizona health care cost containment system administration shall report to the joint legislative budget committee on or before March 1, 2025 on preliminary actuarial estimates of the capitation rate changes for the following fiscal year along with the reasons for the estimated changes. For any actuarial estimates that include a range, the total range from minimum to maximum may not be more than two percent. Before implementing any changes in capitation rates, the administration shall report its expenditure plan for review by the joint legislative budget committee. Before the administration implements any change in policy affecting the amount, sufficiency, duration and scope of health care services and who may provide services, the administration shall prepare a fiscal impact analysis on the potential effects of this change on the following year's capitation rates. If the fiscal impact analysis demonstrates that this change will result in additional state costs of $1,000,000 or more for any fiscal year, the administration shall submit the policy change for review by the joint legislative budget committee.

The legislature intends that the percentage attributable to administration and profit for the regional behavioral health authorities be nine percent of the overall capitation rate.

The Arizona health care cost containment system administration shall transfer up to $1,200,000 from the traditional medicaid services line item for fiscal year 2024-2025 to the attorney general for costs associated with e-cigarette enforcement and tobacco settlement litigation.

The Arizona health care cost containment system administration shall transfer $836,000 from the traditional medicaid services line item for fiscal year 2024-2025 to the department of revenue for enforcement costs associated with the March 13, 2013 master settlement agreement with tobacco companies.

The amount appropriated for the traditional medicaid services line item includes $4,098,200 from the state general fund and $8,059,900 from expenditure authority for inpatient payments to rural hospitals as defined in section 36-2905.02, Arizona Revised Statutes.

Of the amount appropriated for the proposition 204 services line item, $100,000,000 shall be used from the hospital assessment fund established by section 36-2901.09, Arizona Revised Statutes, to cover a portion of the nonfederal share of the costs of services described in section 36-2907, subsection F, Arizona Revised Statutes. This amount is included in the expenditure authority fund source.

On or before June 30, 2025, the Arizona health care cost containment system administration shall report to the joint legislative budget committee on the progress in implementing the Arnold v. Sarn lawsuit settlement. The report shall include, at a minimum, the administration's progress toward meeting all criteria specified in the 2014 joint stipulation, including the development and estimated cost of additional behavioral health service capacity in Maricopa county for supported housing services for 1,200 class members, supported employment services for 750 class members, eight assertive community treatment teams and consumer operated services for 1,500 class members. The administration shall also report by fund source the amounts it plans to use to pay for expanded services.

Long-term care

Any federal monies that the Arizona health care cost containment system administration passes through to the department of economic security for use in long-term care for persons with developmental disabilities do not count against the long-term care expenditure authority.

Pursuant to section 11-292, subsection B, Arizona Revised Statutes, the county portion of the fiscal year 2024-2025 nonfederal costs of providing long-term care system services is $399,872,100. This amount is included in the expenditure authority fund source.

Any supplemental payments received in excess of $97,235,600 for nursing facilities that serve Arizona long-term care system medicaid patients in fiscal year 2024-2025, including any federal matching monies, by the Arizona health care cost containment system administration are appropriated to the administration in fiscal year 2024-2025. Before spending these increased monies, the administration shall notify the joint legislative budget committee and the governor's office of strategic planning and budgeting of the amount of monies that will be spent under this provision. These payments are included in the expenditure authority fund source.

Payments to hospitals

The $5,087,100 appropriation for disproportionate share payments for fiscal year 2024-2025 made pursuant to section 36-2903.01, subsection O, Arizona Revised Statutes, includes $4,202,300 for the Maricopa county health care district and $884,800 for private qualifying disproportionate share hospitals.

Any monies received for disproportionate share hospital payments from political subdivisions of this state, tribal governments and any university under the jurisdiction of the Arizona board of regents, and any federal monies used to match those payments, in fiscal year 2024-2025 by the Arizona health care cost containment system administration in excess of $65,330,500 are appropriated to the administration in fiscal year 2024-2025. Before spending these increased monies, the administration shall notify the joint legislative budget committee and the governor's office of strategic planning and budgeting of the amount of monies that will be spent under this provision.

The expenditure authority fund source includes voluntary payments made from political subdivisions for payments to hospitals that operate a graduate medical education program or treat low-income patients and for payments to qualifying providers affiliated with teaching hospitals. The political subdivision portions of the fiscal year 2024-2025 costs of graduate medical education, disproportionate share payments — voluntary match, traditional medicaid services, proposition 204 services and adult expansion services line items are included in the expenditure authority fund source.

Any monies for graduate medical education received in fiscal year 2024-2025, including any federal matching monies, by the Arizona health care cost containment system administration in excess of $469,246,600 are appropriated to the administration in fiscal year 2024-2025. Before spending these increased monies, the administration shall notify the joint legislative budget committee and the governor's office of strategic planning and budgeting of the amount of monies that will be spent under this provision.

If any graduate medical education monies remain after the Arizona health care cost containment system administration has funded all eligible graduate medical education programs in counties with a population of less than five hundred thousand persons, the administration may fund the costs of graduate medical education programs operated by community health centers and rural health clinics.

Notwithstanding section 36-2903.01, subsection G, paragraph 9, subdivisions (a), (b) and (c), Arizona Revised Statutes, the amount for graduate medical education includes $5,000,000 from the state general fund and $10,678,900 from expenditure authority for the direct and indirect costs of graduate medical education programs located in counties with a population of less than five hundred thousand persons. The state general fund amount may supplement, but not supplant, voluntary payments made from political subdivisions for payments to hospitals that operate a graduate medical education program. The administration shall prioritize distribution to programs at hospitals in counties with a higher percentage of persons residing in a health professional shortage area as defined in 42 Code of Federal Regulations part 5.

Notwithstanding section 36-2903.01, subsection G, paragraph 9, subdivisions (a), (b) and (c), Arizona Revised Statutes, the amount for graduate medical education includes $4,000,000 from the state general fund and $8,543,100 from expenditure authority for the direct and indirect costs of graduate medical education programs located in counties with a population of more than five hundred thousand persons. The state general fund amount may supplement, but not supplant, voluntary payments made from political subdivisions for payments to hospitals that operate a graduate medical education program.

Monies appropriated for the graduate medical education line item in Laws 2023, Chapter 133, section 10 are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2025.

Monies appropriated for graduate medical education in this section are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2026.

Other

On or before July 1, 2025, the Arizona health care cost containment system administration shall report to the director of the joint legislative budget committee the total amount of medicaid reconciliation payments and penalties received on or before that date since July 1, 2024.

The nonappropriated portion of the prescription drug rebate fund established by section 36-2930, Arizona Revised Statutes, is included in the federal portion of the expenditure authority fund source.

Sec.|19. BOARD OF ATHLETIC TRAINING

2024-25

FTE positions 1.5

Lump sum appropriation $ 165,300

Fund sources:

Athletic training fund $ 165,300

Sec.|20. ATTORNEY GENERAL — DEPARTMENT OF LAW

2024-25

FTE positions 671.7

Operating lump sum appropriation $ 64,477,900

Capital postconviction prosecution 876,400

Child and family advocacy centers 100,000

Criminal division major fraud unit 1,187,300

Internet crimes against children

enforcement 1,271,500

Government accountability and

special litigation 1,287,500

Organized retail theft

task force 1,570,700

Risk management interagency

service agreement 10,655,300

State grand jury 193,000

Southern Arizona law enforcement 1,656,600

Tobacco enforcement 875,900

Veterans substance abuse

treatment grants 5,000,000

Victims' rights 4,023,500

Total appropriation — attorney general —

department of law $ 93,175,600

Fund sources:

State general fund $ 27,664,200

Antitrust enforcement revolving

fund 160,900

Attorney general legal services

cost allocation fund 2,314,900

Collection enforcement revolving

fund 7,232,100

Consumer protection–consumer

fraud revolving fund 14,864,900

Consumer restitution and remediation

revolving fund – consumer

remediation subaccount 5,000,000

Interagency service agreements fund 18,078,100

Internet crimes against children

enforcement fund 900,000

Risk management revolving fund 13,147,700

Victims' rights fund 3,812,800

All monies appropriated to the attorney general legal services line item in the department of child safety budget do not count toward the attorney general's interagency service agreements fund appropriation in fiscal year 2024-2025.

Within ten days after receiving a complaint alleging a violation of section 15-511, Arizona Revised Statutes, the attorney general shall forward a copy of the complaint to the governor, the president of the senate and the speaker of the house of representatives.

The amount appropriated for the child and family advocacy centers line item is allocated to the child and family advocacy center fund established by section 41-191.11, Arizona Revised Statutes.

The $900,000 appropriation from the internet crimes against children enforcement fund established by section 41-199, Arizona Revised Statutes, and the $371,500 appropriation from the state general fund for the internet crimes against children enforcement line item are continuing appropriations and are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2026.

The amount appropriated for the veterans substance abuse treatment grants line item shall be used for grants to veterans services organizations that treat opioid use disorder in conjunction with judicial programs that address substance abuse treatment and rehabilitation for veterans. To be eligible for a grant, a veterans services organization program must follow best practices, be evidence-based, adhere to the individualized plan ordered by veterans treatment courts for each veteran and incorporate tracking of key metrics.

Before spending any monies appropriated for the veterans substance abuse treatments grants line item, the attorney general shall submit an expenditure plan to the joint legislative budget committee for review. The veterans substance abuse treatments grants line item includes $5,000,000 from opioid claims-related monies deposited in the consumer remediation subaccount of the consumer restitution and remediation revolving fund pursuant to section 44-1531.02, subsection C, Arizona Revised Statutes.

The $1,570,700 appropriation for the organized retail theft task force line item shall be used for operational expenses of the organized retail task force and for hiring one attorney, one paralegal, two investigators and one support staff person within the office of the attorney general and four peace officers who are assigned to the task force to focus specifically on investigating and prosecuting organized retail crime.

Of the amount appropriated to the attorney general for the opioid abatement line item in fiscal year 2023-2024 pursuant to Laws 2023, chapter 133, section 13, $12,000,000 from the consumer remediation subaccount of the consumer restitution and remediation revolving fund established by section 44-1531.02, Arizona Revised Statutes, is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2025.

Sec. 21. BARBERING AND COSMETOLOGY BOARD

2024-25

FTE positions 29.5

Lump sum appropriation $ 2,686,900

Fund sources:

Barbering and cosmetology fund $ 2,686,900

Sec. 22. BOARD OF BEHAVIORAL HEALTH EXAMINERS

2024-25

FTE positions 27.0

Lump sum appropriation $ 2,740,500

Fund sources:

Board of behavioral health

|| examiners fund $ 2,740,500

Sec. 23. STATE BOARD FOR CHARTER SCHOOLS

2024-25

FTE positions 25.0

Lump sum appropriation $ 2,835,100

Fund sources:

State general fund $ 2,835,100

Sec. 24. DEPARTMENT OF CHILD SAFETY

2024-25

FTE positions 3,283.1

Operating lump sum appropriation $147,799,100

Additional operating resources

Attorney general legal services 27,894,900

Caseworkers 131,939,000

Office of child welfare

investigations 11,235,900

Training resources 9,150,000

Out-of-home placements

Congregate group care 103,682,000

Extended foster care 19,887,200

Foster home placement 42,547,300

Foster home recruitment,

study and supervision 32,753,600

Kinship care 20,584,600

Permanent placements

Adoption services 287,221,600

Permanent guardianship subsidy 16,805,600

Support services

DCS child care subsidy 61,675,400

In-home mitigation 34,488,100

Out-of-home support services 122,710,800

Preventive services 32,412,700

Comprehensive health plan

services 127,989,800

Comprehensive health plan

administration 28,642,700

Comprehensive health plan

premium tax 3,196,600

Total appropriation and expenditure

authority — department of

child safety $1,262,616,900

Fund sources:

State general fund $ 458,314,500

Federal child care and

development fund block grant 40,516,000

Federal temporary assistance

for needy families block

grant 161,082,200

Child abuse prevention fund 1,459,300

Children and family services

training program fund 208,000

Child safety expenditure authority 440,186,100

Child welfare licensing fee fund 1,021,700

Comprehensive health plan

expenditure authority fund —

expenditure authority 159,829,100

Additional operating resources

The department of child safety shall provide training to any new child safety FTE positions before assigning any client caseload duties to any of these employees.

The legislature intends that the department of child safety use its funding to achieve a one hundred percent investigation rate.

Out-of-home placements

On or before March 31, 2025, the department of child safety shall report to the joint legislative budget committee the number of children who are part of the kinship stipend program and reside with a nonrelative caretaker of fictive kinship.

Support services

The preventive services line item appropriation includes $264,400 from the state general fund to draw down $1,322,000 in additional federal monies associated with the community based child abuse prevention block grant. If grant monies are no longer available, the appropriation is reduced by the amounts of $264,400 from the general fund and $1,322,000 from child safety expenditure authority.

Departmentwide

On or before December 1, 2024, the department of child safety shall submit a report to the joint legislative budget committee on the department's efforts to implement the family first prevention services act of 2018. The report shall quantify the department's efforts in at least the following areas, including any associated fiscal impacts:

2. Assisting congregate care providers in attaining status as qualified residential treatment programs.

3. Identifying alternative placements, including therapeutic foster homes, for children who would otherwise be placed in congregate care.

4. Expanding evidence-based, in-home parent skill-based programs and mental health and substance abuse prevention and treatment services.

Benchmarks

For the purposes of this section:

1. "Backlog case":

(a) Means any nonactive case for which documentation has not been entered in the child welfare automated system for at least sixty days and for which services have not been authorized for at least sixty days and any case that has had an investigation, has been referred to another unit and has had no contact for at least sixty days.

(b) Includes any case for which the investigation has been open without any documentation or contact for at least sixty days, any case involving in-home services for which there has been no contact or services authorized for at least sixty days and any case involving foster care in which there has been no contact or any documentation entered in the child welfare automated system for at least sixty days.

2. "Long-term case" means any case in which the child has been in an out-of-home placement for at least eighteen months.

3. "Open report" means a report that is under investigation or awaiting closure by a supervisor.

On or before February 28, 2025 and August 31, 2025, the department of child safety shall present a report to the joint legislative budget committee on the progress made during July 2024 through December 2024 and January 2025 through June 2025, respectively, in meeting the caseload standard and reducing the number of backlog and long-term cases. Each report shall include the number of backlog cases, the number of open reports, the number of long-term cases and the caseworker workload in comparison to the previous six months. Each report shall provide the number of backlog cases by disposition, including the number of backlog cases in the investigation phase, the number of backlog cases associated with out-of-home placements and the number of backlog cases associated with in-home cases.

For backlog cases, the department's benchmark is 1,000 cases.

For open reports, the department's benchmark is fewer than 8,000 open reports.

For long-term cases, the department's benchmark is 3,323 cases.

Sec. 25. STATE BOARD OF CHIROPRACTIC EXAMINERS

2024-25

FTE positions 6.0

Lump sum appropriation $ 638,700

Fund sources:

Board of chiropractic examiners

||fund $ 638,700

Sec. 26. ARIZONA COMMERCE AUTHORITY

2024-25

Operating lump sum appropriation $ 10,000,000

Arizona competes fund deposit 500,000

Asia trade offices 750,000

Economic development marketing

and attraction 500,000

Frankfurt, Germany trade office 500,000

Israel trade office 300,000

Mexico trade offices 500,000

Total appropriation — Arizona commerce

authority $ 13,050,000

Fund sources:

State general fund $ 13,050,000

Pursuant to section 43-409, Arizona Revised Statutes, of the amounts listed above, $10,500,000 of the state general fund withholding tax revenues is allocated in fiscal year 2024-2025 to the Arizona commerce authority, of which $10,000,000 is credited to the Arizona commerce authority fund established by section 41-1506, Arizona Revised Statutes, and $500,000 is credited to the Arizona competes fund established by section 41-1545.01, Arizona Revised Statutes.

Sec. 27. ARIZONA COMMUNITY COLLEGES

2024-25

Equalization aid

Cochise $ 10,575,800

Graham 21,132,400

Navajo 12,016,200

Yuma/La Paz 896,400

Total — equalization aid $ 44,620,800

Operating state aid

Cochise $ 4,000,800

Coconino 1,392,500

Gila 149,700

Graham 1,758,900

Mohave 961,500

Navajo 1,375,600

Pinal 1,032,900

Santa Cruz 54,600

Yavapai 371,300

Yuma/La Paz 2,262,400

Total — operating state aid $ 13,360,200

STEM and workforce programs state aid

Cochise $ 833,400

Coconino 300,700

Gila 88,100

Graham 446,300

Maricopa 8,073,700

Mohave 392,600

Navajo 273,600

Pima 1,768,900

Pinal 634,800

Santa Cruz 41,800

Yavapai 636,600

Yuma/La Paz 778,200

Total — STEM and workforce programs

state aid $ 14,268,700

Rural aid

Cochise $ 2,999,100

Coconino 892,800

Gila 258,000

Graham 1,239,300

Mohave 1,149,000

Navajo 815,000

Pinal 1,794,100

Santa Cruz 113,800

Yavapai 1,833,600

Yuma/La Paz 2,905,300

Total — rural aid $ 14,000,000

Rural county reimbursement subsidy $ 1,082,900

Additional Gila workforce

development aid 200,000

Diné college remedial education 1,000,000

Total appropriation — Arizona community

colleges $ 88,532,600

Fund sources:

State general fund $ 88,532,600

Of the $1,082,900 appropriated to the rural county reimbursement subsidy line item, Apache county receives $699,300 and Greenlee county receives $383,600.

On or before October 15, 2025, the Diné college board of regents shall submit to the governor, the speaker of the house of representatives, the president of the senate, the secretary of state and the joint legislative budget committee a report that details the course completion rate for students who received remedial education during the 2024-2025 academic year.

Sec. 28. REGISTRAR OF CONTRACTORS

2024-25

FTE positions 105.6

Operating lump sum appropriation $ 13,050,200

Office of administrative

|| hearings costs 1,017,600

Total appropriation — registrar of

contractors $ 14,067,800

Fund sources:

Registrar of contractors fund $ 14,067,800

Sec. 29. CORPORATION COMMISSION

2024-25

FTE positions 301.9

Operating lump sum appropriation $ 35,031,300

Corporation filings, same-day

service 416,500

Utilities audits, studies,

investigations and hearings 380,000*

Total appropriation — corporation commission $ 35,827,800

Fund sources:

State general fund $ 798,900

Arizona arts trust fund 57,700

Investment management regulatory

|| and enforcement fund 1,305,700

Public access fund 8,020,800

Securities regulatory and

enforcement fund 7,272,500

Utility regulation revolving fund 18,372,200

Sec. 30. STATE DEPARTMENT OF CORRECTIONS

2024-25

FTE positions 9,592.0

Operating lump sum appropriation $ 863,381,600

Overtime and compensatory time 15,540,500

Private prison per diem 275,716,800

Community corrections 27,452,300

Inmate health care contracted

services 367,557,100

Substance abuse treatment 3,945,400

Noncontract medication 55,000,000

Injunction-related IT upgrades 16,000,000

Total appropriation — state department

of corrections $1,624,593,700

Fund sources:

State general fund $1,515,971,300

State education fund for

correctional education 723,200

Alcohol abuse treatment fund 555,800

Penitentiary land fund 3,460,300

State charitable, penal and

reformatory institutions

land fund 3,734,100

Corrections fund 31,312,500

Transition program fund 15,048,600

Prison construction and

operations fund 12,500,100

Inmate store proceeds fund 1,287,800

Consumer restitution and remediation

revolving fund – consumer

remediation subaccount 40,000,000

Of the amount appropriated in the operating lump sum, $487,093,200 is designated for personal services and $222,017,000 is designated for employee-related expenditures. The department shall submit an expenditure plan for review by the joint legislative budget committee before spending these monies other than for personal services or employee-related expenditures.

The department shall submit an expenditure plan for review by the joint legislative budget committee before spending monies appropriated for the overtime and compensatory time line item other than for personal services or employee-related expenditures.

Private prison vendors that contract with this state may use staff vacancy savings to pay for overtime costs without incurring a penalty or staffing offset.

On or before November 1, 2024, the state department of corrections shall provide a report on bed capacity to the joint legislative budget committee. The report shall reflect the bed capacity for each security classification by gender at each state-run and private institution, divided by rated and total beds. The report shall include bed capacity data for June 30, 2023 and June 30, 2024 and the projected capacity for June 30, 2025, as well as the reasons for any change within that time period. Within the total bed count, the department shall provide the number of temporary and special use beds. The report shall also address the department's rationale for eliminating any permanent beds rather than reducing the level of temporary beds. The report shall also include any plans to vacate beds but not permanently remove the beds from the bed count.

If the department develops a plan after the department's November 1, 2024 report to open or close one hundred or more state-operated or private prison rated beds, the department shall submit a plan detailing the proposed bed changes for review by the joint legislative budget committee before implementing these changes.

On or before December 15, 2024 and July 15, 2025, the state department of corrections shall submit a report to the joint legislative budget committee on the progress made in meeting the staffing needs for correctional officers. Each report shall include the number of filled correctional officer positions, the number of vacant correctional officer positions, the number of people in training, the number of separations and the number of hours of overtime worked year-to-date. The report shall detail these amounts both departmentwide and by prison complex.

Before spending any state education fund for correctional education monies in excess of $723,200, the state department of corrections shall report the intended use of the monies to the director of the joint legislative budget committee.

On or before August 1, 2024 and February 1, 2025, the state department of corrections shall submit a report to the joint legislative budget committee on the status of all inmate health care performance measures that are tracked by the department for contract monitoring purposes. Each report must include:

1. The total number of performance measures, by facility, for which the department is not in substantial compliance.

2. An explanation for each instance of noncompliance.

3. The department's plan to comply with the performance measures.

On or before August 1, 2024, the state department of corrections shall transfer to the public safety personnel retirement system via the department of administration its estimated required annual contribution to the corrections officer retirement plan for fiscal year 2024-2025.

The department shall report actual fiscal year 2023-2024, estimated fiscal year 2024-2025 and requested fiscal year 2025-2026 expenditures as delineated in the prior year when the department submits its fiscal year 2025-2026 budget request pursuant to section 35-113, Arizona Revised Statutes.

The department shall use the amount appropriated in the private prison per diem line item to pay private prison contractors for housing and providing medical care to Arizona inmates. Before spending these monies for any other purpose, the department shall submit an expenditure plan for review by the joint legislative budget committee.

Included in the operating lump sum appropriation is $40,000,000 from the consumer remediation subaccount of the consumer restitution and remediation revolving fund established by section 44-1531.02,
Arizona Revised Statutes. This amount consists of monies deposited in the subaccount pursuant to opioid claims-related litigation or settlements. This amount is intended to offset past and current department costs for care, treatment, programs and other expenditures for individuals with opioid use disorder and any co-occurring substance use disorder or mental health conditions or for any other specified purposes that are included in a court order or a settlement or compromise that is entered into by this state and other parties to the opioid litigation.

Sec. 31. ARIZONA CRIMINAL JUSTICE COMMISSION

2024-25

FTE positions 11.0

Operating lump sum appropriation $ 1,406,900

Major incident regional law

enforcement task force 600,000

State aid to county attorneys 973,700

State aid to indigent defense 700,000

State aid for juvenile dependency

proceedings fund deposit 2,000,000

Victim compensation and assistance 6,223,200

Total appropriation — Arizona criminal

justice commission $ 11,903,800

Fund sources:

State general fund $ 4,600,000

Criminal justice enhancement fund 733,700

Resource center fund 647,100

State aid to county attorneys fund 973,700

State aid to indigent defense fund 700,000

Victim compensation and assistance

|| fund 4,249,300

All victim compensation and assistance fund monies received by the Arizona criminal justice commission in excess of $4,249,300 in fiscal year 2024-2025 are appropriated to the crime victims program. Before spending any victim compensation and assistance fund monies in excess of $4,249,300 in fiscal year 2024-2025, the Arizona criminal justice commission shall report the intended use of the monies to the joint legislative budget committee.

All monies received by the Arizona criminal justice commission in excess of $973,700 in fiscal year 2024-2025 from the state aid to county attorneys fund established by section 11-539, Arizona Revised Statutes, are appropriated to the state aid to county attorneys program. Before spending any state aid to county attorneys fund monies in excess of $973,700 in fiscal year 2024-2025, the Arizona criminal justice commission shall report the intended use of the monies to the joint legislative budget committee.

Sec. 32. ARIZONA STATE SCHOOLS FOR THE DEAF AND THE BLIND

2024-25

FTE positions 562.2

Administration/statewide $ 8,404,300

Phoenix day school for the deaf 10,811,200

Tucson campus 13,330,400

Preschool/outreach programs 7,824,200

School bus/agency vehicle

replacement 369,000

Cooperative services 19,621,400

Total appropriation — Arizona state schools

for the deaf and the blind $ 60,360,500

Fund sources:

State general fund $ 25,991,300

Schools for the deaf and

the blind fund 14,579,800

Cooperative services fund 19,621,400

Telecommunication fund

for the deaf 168,000

Before spending any schools for the deaf and the blind fund monies in excess of $14,579,800 in fiscal year 2024-2025, the Arizona state schools for the deaf and the blind shall report to the joint legislative budget committee the intended use of the monies.

Before spending any cooperative services fund monies in excess of $19,621,400 in fiscal year 2024-2025, the Arizona state schools for the deaf and the blind shall report to the joint legislative budget committee the intended use of the monies.

Sec. 33. COMMISSION FOR THE DEAF AND THE HARD OF HEARING

2024-25

FTE positions 21.0

Operating lump sum appropriation $ 4,634,600

Support services for the

deaf-blind 192,000

Website security upgrades 200,000

Total appropriation — commission for the

deaf and the hard of hearing $ 5,026,600

Fund sources:

Telecommunication fund for

||the deaf $ 5,026,600

Sec. 34. STATE BOARD OF DENTAL EXAMINERS

2024-25

FTE positions 13.0

Operating lump sum appropriation $ 2,103,600

Annual leave payout $ 9,300*

Total appropriation — state board of

dental examiners $ 2,112,900

Fund sources:

Dental board fund $ 2,112,900

Sec. 35. OFFICE OF ECONOMIC OPPORTUNITY

2024-25

FTE positions 5.0

Lump sum appropriation $ 523,300

Fund sources:

State general fund $ 523,300

Sec. 36. DEPARTMENT OF ECONOMIC SECURITY

2024-25

FTE positions 4,611.8

Operating lump sum appropriation $333,957,100

Administration

Attorney general legal services 12,755,600

Aging and adult services

Adult services 10,731,900

Community and emergency services 3,724,000

Coordinated homeless services 2,522,600

Coordinated hunger services 2,254,600

Domestic violence prevention 14,004,000

Long-term care ombudsman 1,000,000

Benefits and medical eligibility

Temporary assistance for needy

families — cash benefits 22,736,400

Tribal pass-through funding 4,680,300

Child support enforcement

County participation 8,539,700

Developmental disabilities

DDD premium tax payment 64,871,600

Case management — medicaid 140,855,600

Home and community based

services — medicaid 2,292,850,800

Institutional services —

medicaid 51,334,400

Physical and behavioral

health services — medicaid 655,369,900

Medicare clawback payments 7,132,700

Targeted case management — medicaid 19,324,900

State match transfer from AHCCCS 1,122,988,600

Case management — state-only 6,335,600

Home and community based

services — state-only 14,089,000

Cost effectiveness study — client

services 8,420,000

Arizona early intervention program 16,119,000

State-funded long-term care

services 44,389,800

Group home monitoring program 1,200,000

Employment and rehabilitation services

JOBS 11,005,600

Child care subsidy 320,580,200

Independent living rehabilitation

services 1,289,400

Rehabilitation services 7,249,100

Workforce innovation

and opportunity act

services 85,824,200

Total appropriation and expenditure

authority — department of

economic security $5,288,136,600

Fund sources:

State general fund $1,339,544,800

Federal child care and

development fund block grant 331,029,300

Federal temporary assistance for

needy families block grant 66,591,200

Long-term care system fund 34,429,200

Public assistance collections

fund 441,800

Special administration fund 4,637,900

Spinal and head injuries trust

fund 2,385,500

Statewide cost allocation plan

fund 1,000,000

Child support enforcement

administration fund 17,683,300

Domestic violence services fund 4,000,300

Workforce investment act grant 87,116,600

Child support enforcement

administration fund

expenditure authority 44,195,500

Developmental disabilities

medicaid expenditure

authority 3,311,833,900

Health care investment fund

expenditure authority 43,247,300

Aging and adult services

All domestic violence services fund monies in excess of $4,000,300 received by the department of economic security are appropriated for the domestic violence prevention line item. Before spending these increased monies, the department shall report the intended use of monies in excess of $4,000,300 to the joint legislative budget committee.

On or before December 15, 2024, the department of economic security shall report to the joint legislative budget committee the amount of state and federal monies available statewide for domestic violence prevention funding. The report shall include, at a minimum, the amount of monies available and the state fiscal agent receiving those monies.

Benefits and medical eligibility

The operating lump sum appropriation may be spent on Arizona health care cost containment system eligibility determinations based on the results of the Arizona random moment sampling survey.

Child support enforcement

All state shares of retained earnings, fees and federal incentives in excess of $17,683,300 received by the division of child support enforcement are appropriated for operating expenditures. New FTE positions are authorized with the increased funding. Before spending these increased monies, the department of economic security shall report the intended use of the monies to the joint legislative budget committee.

Developmental disabilities

On or before September 1, 2025, the department of economic security shall report to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees and the director of the joint legislative budget committee any new placement into a state-owned ICF-IID or the Arizona training program at the Coolidge campus in fiscal year 2024-2025 and the reason for this placement, rather than a placement into a privately run facility for persons with developmental disabilities, was deemed as the most appropriate placement. The department shall also report if no new placements were made. On or before September 1, 2025, the department shall also report to the director of the joint legislative budget committee the total costs associated with the Arizona training program at Coolidge in fiscal year 2024-2025.

The department shall report to the joint legislative budget committee on or before March 1 of each year on preliminary actuarial estimates of the capitation rate changes for the following fiscal year along with the reasons for the estimated changes. For any actuarial estimates that include a range, the total range from minimum to maximum may not be more than two percent. Before implementing any changes in capitation rates for the long-term care system, the department shall submit a report for review by the joint legislative budget committee. Before the department implements any change in policy affecting the amount, sufficiency, duration and scope of health care services and who may provide services, the department shall prepare a fiscal impact analysis on the potential effects of this change on the following year's capitation rates. If the fiscal impact analysis demonstrates that this change will result in additional state costs of $500,000 or more for any fiscal year, the department shall submit the policy change for review by the joint legislative budget committee.

Before implementing developmental disabilities or long-term care statewide provider rate adjustments that are not already specifically authorized by the legislature, court mandates or changes to federal law, the department shall submit a report for review by the joint legislative budget committee that includes, at a minimum, the estimated cost of the provider rate adjustment and the ongoing source of funding for the adjustment, if applicable.

Before transferring any monies in or out of the case management —medicaid and case management — state-only and developmental disabilities administration line items and before transferring any monies in or out of the operating lump sum item related to the developmental disabilities program and its administration, the department shall submit a report for review by the joint legislative budget committee, except that transfers from the state match transfer from AHCCCS line item into those line items do not require a report for review.

On or before November 30, 2024, the department of economic security shall submit a report to the joint legislative budget committee regarding expenditures from the cost effectiveness study – client services line item in the previous fiscal year. The report shall include the number of clients and total amounts spent from the line item in each setting type along with expenditures for those clients in other line items. The report shall also include cost effectiveness spending in other line items.

The amounts appropriated for the group home monitoring program in fiscal year 2023-2024 pursuant to Laws 2023, chapter 133, section 29 and in fiscal year 2024-2025 are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2026.

The amount appropriated for the Graham county rehabilitation center in fiscal year 2023-2024 pursuant to Laws 2023, chapter 133, section 29 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2025. Of the amount appropriated, $800,000 shall be used to remodel the Graham county rehabilitation facilities in Safford and Willcox.

Employment and rehabilitation services

On or before September 15, 2024 and March 15, 2025, the department of economic security shall submit a report to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees and the joint legislative budget committee on child care development block grant monies provided from the coronavirus aid, relief, and economic security act, the consolidated appropriations act, 2021 and the American rescue plan act of 2021 (P.L. 117-2). The report must include, at a minimum, the actual expenditures made to date by purpose and, separately, by federal legislation, the expenditure plan for all remaining monies by purpose and, separately, by federal legislation, the number of children served with the monies on average each month, the average child care reimbursement rates for the entire program, including these monies, and the number of child care settings with a quality rating.

The department of economic security shall forward to the joint legislative budget committee a monthly report listing data on the child care population served. The report must include, at a minimum, in each program the number of unduplicated children enrolled in child care within the department of economic security and the department of child safety by program and the average amount paid per child plus quality-related spending.

All workforce investment act grant monies that are received by this state in excess of $87,116,600 are appropriated to the workforce innovation and opportunity act services line item. Before spending these increased monies, the department shall report the intended use of monies in excess of $87,116,600 to the joint legislative budget committee.

Departmentwide

The above appropriations are in addition to monies granted to this state by the federal government for the same purposes but are deemed to include the sums deposited in the state treasury to the credit of the department of economic security pursuant to section 42-5029, Arizona Revised Statutes.

The department of economic security shall forward to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees and the director of the joint legislative budget committee a monthly report comparing total expenditures for the month and year-to-date as compared to prior-year totals on or before the thirtieth of the following month. The report shall include an estimate of potential shortfalls in entitlement programs and potential federal and other monies, such as the statewide assessment for indirect costs, and any projected surplus in state-supported programs that may be available to offset these shortfalls and a plan, if necessary, for eliminating any shortfall without a supplemental appropriation.

Sec. 37. STATE BOARD OF EDUCATION

2024-25

FTE positions 23.0

Operating lump sum appropriation $ 3,222,100

Arizona empowerment scholarship

account appeals 227,900

Total appropriation —

state board of education $ 3,450,000

Fund sources:

State general fund $ 3,450,000

Sec. 38. SUPERINTENDENT OF PUBLIC INSTRUCTION

2024-25

FTE positions 232.9

Operating lump sum appropriation $ 15,626,800

Formula programs

Basic state aid 6,335,820,300

Special education fund 36,029,200

Classroom site fund 1,053,335,300

Instructional improvement fund 80,425,700

Property tax relief

Additional state aid 526,653,100

Non-formula programs

Accountability and achievement

testing 16,442,200

Adult education 17,058,900

Alternative teacher development

program 1,000,000

Arizona English language

learner fund 4,960,400

Arizona holocaust education center 7,000,000

CTED certification exam fee

reimbursement 1,000,000

CTED completion grants 1,000,000

CTED soft capital and equipment 1,000,000

College credit by examination

incentive program 3,772,100

College placement exam fee waiver 1,265,800

Computer science professional

development program 1,000,000

Early literacy 17,380,000

Education learning and

accountability system 5,446,700

English learner administration 6,597,000

Flagstaff robotics program 20,000

Geographic literacy 100,000

Gifted assessments 850,000

Jobs for Arizona graduates 500,000

Live, remote instructional courses 100,000

Onetime school meal grants 3,800,000

School safety program 81,992,400

State block grant for vocational

education 11,774,300

Student level data access 359,000

Teacher certification 2,544,600

Tribal college dual enrollment

program 325,000

Total appropriation and expenditure

authority — superintendent

of public instruction $8,235,178,800

Fund sources:

State general fund $6,573,446,600

Education sales tax fund 7,000,000

Permanent state school fund 357,889,000

Teacher certification fund 2,517,700

Tribal college dual enrollment

program fund 325,000

Department of education empowerment

scholarship account fund 359,000

Expenditure authority 1,293,641,500

Operating lump sum

Basic state aid

The appropriation for basic state aid provides basic state support to school districts for maintenance and operations funding as provided by section 15-973, Arizona Revised Statutes, and includes an estimated $357,889,000 in expendable income derived from the permanent state school fund and from state trust lands pursuant to section 37-521, subsection B, Arizona Revised Statutes, for fiscal year 2024-2025.

Other programs

The department of education may use the appropriated amount for accountability and achievement testing in fiscal year 2024-2025 for costs of the English language proficiency assessments required by section 15-756.05, Arizona Revised Statutes.

The appropriated amount for adult education includes $6,160,000 for a onetime allocation to the continuing high school and workforce training program established by section 15-217.01, Arizona Revised Statutes, $3,000,000 for a onetime deposit in the adult workforce diploma program fund established by section 15-217.02, Arizona Revised Statutes, and $3,000,000 for a onetime deposit in the community college adult education workforce development program fund established by section 15-217.03, Arizona Revised Statutes.

The department of education shall distribute the appropriated amount for the Arizona holocaust education center line item to the Arizona holocaust education center for a onetime distribution for the creation and operation of the center as a resource for fulfilling the requirements of section 15-701.02, Arizona Revised Statutes. The department of administration shall allot the full amount of the line item on or before August 15, 2024. The department of education shall make the distribution on or before August 15, 2024. This appropriation is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

The appropriated amount for CTED completion grants is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2026.

The department of education shall use the appropriated amount for geographic literacy to issue a grant to a statewide geographic alliance for strengthening geographic literacy in this state.

The department of education shall use the appropriated amount for jobs for Arizona graduates to issue a grant to a nonprofit organization for a JOBS for Arizona graduates program.

The department of education shall allocate the appropriated amount for onetime school meal grants to school districts and charter schools that participate in the national school lunch program or school breakfast program established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1793) for grants to reduce or eliminate copayments that would otherwise be charged to children eligible for reduced-price meals. If the appropriated amount is insufficient to cover the grant awards for all eligible grantees, the department shall reduce each grant proportionately to cover all eligible grantees.

The amount appropriated for the school safety program in fiscal year 2022-2023 pursuant to laws 2022, chapter 313, section 31 included an increase of $50,000,000 for additional school safety grants. In allocating the $50,000,000 increase, the department of education shall first distribute monies to schools on the school safety program waiting list to receive grants for the costs of placing school resource officers on school campuses. The awarded grants may not supplant funding provided by local governments for school resource officers. If the total cost of funding grants for school resource officers is less than $50,000,000, the department may allocate the remaining monies to grants to schools for the costs of placing school counselors and social workers on school campuses pursuant to section 15-154, Arizona Revised Statutes.

After review by the joint legislative budget committee, in fiscal year 2024-2025, the department of education may use a portion of its fiscal year 2024-2025 state general fund appropriations for basic state aid, additional state aid or the special education fund to fund a shortfall in funding for basic state aid, additional state aid or the special education fund, if any, that occurred in fiscal year 2023-2024.

Sec. 39. DEPARTMENT OF EMERGENCY AND MILITARY AFFAIRS

2024-25

FTE positions 61.5

Administration $ 4,544,300

Emergency management 874,600

Emergency management matching funds 1,544,900

Hazard mitigation assistance 462,900

Military affairs 2,105,000

National guard matching funds 3,529,200

National guard tuition

reimbursement 1,000,000

Hazard mitigation revolving

fund deposit 200,000

Assist law enforcement fentanyl

interdiction 3,000,000

Total appropriation — department of

emergency and military affairs $ 17,260,900

Fund sources:

State general fund $ 14,260,900

Consumer restitution and remediation

revolving fund – consumer

remediation subaccount 3,000,000

The $3,529,200 national guard matching funds appropriation is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, except that all fiscal year 2024-2025 monies remaining unexpended and unencumbered on December 31, 2025 revert to the state general fund.

The appropriated amount for the national guard tuition reimbursement line item is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until September 30, 2025.

Monies in the assist local law enforcement fentanyl interdiction line item are from the consumer remediation subaccount of the consumer restitution and remediation revolving fund established by section 44-1531.02, Arizona Revised Statutes, and consist of monies deposited in the subaccount pursuant to opioid claims-related litigation or settlements.

Sec. 40. DEPARTMENT OF ENVIRONMENTAL QUALITY

2024-25

FTE positions 358.7

Operating lump sum appropriation $ 67,698,600

Safe drinking water program 1,991,800

Emissions control contractor

payment 28,894,500

Total appropriation — department of

environmental quality $ 98,584,900

Fund sources:

Air quality fund $ 9,207,700

Emergency response fund 132,800

Emissions inspection fund 33,153,800

Hazardous waste management fund 1,939,400

Indirect cost fund 18,979,600

Permit administration fund 7,256,800

Recycling fund 2,465,900

Safe drinking water program

fund 1,991,800

Solid waste fee fund 2,584,900

Water quality fee fund 20,872,200

The department of environmental quality shall report annually on the progress of WQARF activities, including emergency response, priority site remediation, cost recovery activity, revenue and expenditure activity and other WQARF-funded program activity. The department shall submit the fiscal year 2024-2025 report to the joint legislative budget committee on or before September 1, 2024. This report shall also include a budget for the WQARF program that is developed in consultation with the WQARF advisory board. This budget shall specify the monies budgeted for each listed site during fiscal year 2024-2025. In addition, the department and the WQARF advisory board shall prepare and submit to the joint legislative budget committee, on or before October 1, 2024, a report in a table format summarizing the current progress on remediation of each listed site on the WQARF registry. The table shall include the stage of remediation for each site at the end of fiscal year 2023-2024, indicate whether the current stage of remediation is anticipated to be completed in fiscal year 2024-2025 and indicate the anticipated stage of remediation at each listed site at the end of fiscal year 2024-2025, assuming fiscal year 2024-2025 funding levels. The department and the WQARF advisory board may include other relevant information about the listed sites in the table.

All permit administration fund monies received by the department of environmental quality in excess of $7,256,800 in fiscal year 2024-2025 are appropriated to the department. Before spending permit administration fund monies in excess of $7,256,800 in fiscal year 2024-2025, the department shall report the intended use of the monies to the joint legislative budget committee.

All monies in the department of environmental quality indirect cost fund, including the beginning balance, that are in excess of $18,979,600 in fiscal year 2024-2025 are appropriated to the department. Before spending indirect cost fund monies in excess of $18,979,600 in fiscal year 2024-2025, the department shall report the intended use of the monies to the joint legislative budget committee.

Notwithstanding section 49-544, Arizona Revised Statutes, the department may use up to $400,000 from the fund balance in the emissions inspection fund established by section 49-544, Arizona Revised Statutes, in fiscal year 2024-2025 for agency operating costs. Before expending any emissions inspection fund monies on operating costs, the department shall report the intended use of the monies to the joint legislative budget committee.

Sec. 41. GOVERNOR'S OFFICE OF EQUAL OPPORTUNITY

2024-25

FTE positions 5.0

Lump sum appropriation $ 310,500

Fund sources:

Personnel division fund $ 310,500

Sec. 42. STATE BOARD OF EQUALIZATION

2024-25

FTE positions 7.0

Lump sum appropriation $ 751,100

Fund sources:

State general fund $ 751,100

Sec. 43. BOARD OF EXECUTIVE CLEMENCY

2024-25

FTE positions 14.5

Lump sum appropriation $ 1,370,300

Fund sources:

State general fund $ 1,370,300

On or before November 1, 2024, the board of executive clemency shall report to the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting the total number and types of cases the board reviewed in fiscal year 2023-2024.

Sec. 44. ARIZONA EXPOSITION AND STATE FAIR BOARD

2024-25

FTE positions 184.0

Lump sum appropriation $ 21,276,100

Fund sources:

Arizona exposition and state

fair fund $ 21,276,100

Sec. 45. ARIZONA DEPARTMENT OF FORESTRY AND FIRE MANAGEMENT

2024-25

FTE positions 235.5

Operating lump sum appropriation $ 7,203,900

Environmental county grants 250,000

Inmate firefighting crews 867,700

Postrelease firefighting crews 1,278,900

Fire suppression 5,200,000

State fire marshal 1,792,000

State fire school 289,000

Hazardous vegetation removal 3,039,300

US forest service land thinning 1,657,700

Wildfire mitigation 27,026,700

Total appropriation — Arizona department

of forestry and fire management $ 48,605,200

Fund sources:

State general fund $ 48,605,200

The appropriation for the hazardous vegetation removal line item is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2026.

The appropriation for the wildfire mitigation line item is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2027.

Sec. 46. ARIZONA GAME AND FISH DEPARTMENT

2024-25

FTE positions 273.5

Operating lump sum appropriation $38,914,700

Pittman-Robertson/Dingell-Johnson

act 3,058,000

Total appropriation — Arizona game and fish

department $41,972,700

Fund sources:

Capital improvement fund $ 1,001,200

Game and fish fund 35,547,800

Wildlife endowment fund 16,200

Watercraft licensing fund 5,017,800

Game, nongame, fish and

endangered species fund 389,700

Sec. 47. DEPARTMENT OF GAMING

2024-25

FTE positions 155.8

Operating lump sum appropriation $ 13,740,100

Arizona breeders' award 250,000

Casino operations certification 2,299,400

County fairs livestock and

agriculture promotion 6,029,500

Division of racing 2,435,900

Contract veterinarian 175,000

Horseracing integrity and safety

act assessment 1,355,100

Problem gambling 3,320,000

Total appropriation — department of gaming $ 29,605,000

Fund sources:

State general fund $ 6,204,500

Fantasy sports contest fund 150,100

Tribal-state compact fund 2,299,400

Arizona benefits fund 16,610,000

State lottery fund 300,000

Racing regulation fund 3,935,800

Racing regulation fund — unarmed

combat subaccount 105,200

The amount appropriated to the county fairs livestock and agriculture promotion line item is for deposit in the county fairs livestock and agriculture promotion fund established by section 5-113, Arizona Revised Statutes, and to be administered by the office of the governor.

On or before August 1, 2024, the department of gaming shall report to the directors of the joint legislative budget committee and the governor's office of strategic planning and budgeting on the expected amount and purpose of expenditures from the event wagering fund established by section 5-1318, Arizona Revised Statutes, for fiscal year 2024-2025. The report shall include the projected line item detail and the number of filled full-time equivalent positions.

On or before the final day of each quarter of fiscal year 2024-2025, the department of gaming shall report to the members of the joint legislative budget committee on the number of equine deaths and injuries that occurred as a result of a horse race and the commercial live racing facility where each incident occurred. The report shall include the number of pre-race inspections performed by a veterinarian employed by or contracted with this state.

The amount appropriated to the horseracing integrity and safety act assessment line item shall be used by the department during fiscal year 2024-2025 to pay the calendar year 2024 assessment levied by the horseracing integrity and safety authority.

Sec. 48. OFFICE OF THE GOVERNOR

2024-25

Operating lump sum appropriation $ 7,839,800*

Foster youth education success

fund deposit 1,500,000

Total appropriation — office of the governor $ 9,339,800

Fund sources:

State general fund $ 9,339,800

Included in the operating lump sum appropriation of $7,839,800 for fiscal year 2024-2025 is $10,000 for the purchase of mementos and items for visiting officials.

The amount appropriated for the missing and murdered indigenous people task force line item in fiscal year 2023-2024 pursuant to Laws 2023, chapter 133, section 42 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

Sec. 49. GOVERNOR'S OFFICE OF STRATEGIC PLANNING AND BUDGETING

2024-25

FTE positions 22.0

Lump sum appropriation $ 2,938,100*

Fund sources:

State general fund $ 2,938,100

Sec. 50. DEPARTMENT OF HEALTH SERVICES

2024-25

FTE positions 1,168.0

Operating lump sum appropriation $ 64,357,300

Public health/family health

Adult cystic fibrosis care 105,200

AIDS reporting and surveillance 1,000,000

Alzheimer's disease research 4,125,000

Behavioral health care provider 1,000,000

loan repayment program

Biomedical research support 2,000,000

Breast and cervical cancer and

bone density screening 1,369,400

County tuberculosis provider

care and control 590,700

Fentanyl overdose medication

distribution 1,000,000

Folic acid program 400,000

Funeral services regulation 459,400

High-risk perinatal services 2,343,400

Newborn screening program 12,369,800

Nonrenal disease management 198,000

Nursing care special projects 200,000

Poison control centers funding 990,000

Preceptor grant program for graduate

students 500,000

Renal dental care and nutrition

supplements 300,000

Renal transplant drugs 183,000

Arizona state hospital

Arizona state hospital —

operating 77,146,700

Arizona state hospital —

restoration to competency 900,000

Arizona state hospital —

sexually violent persons 11,131,900

Total appropriation — department of

health services $182,669,800

Fund sources:

State general fund $118,979,200

Arizona state hospital fund 3,395,800

Arizona state hospital land fund 650,000

Child fatality review fund 196,500

Consumer restitution and remediation

revolving fund – consumer

remediation subaccount 1,000,000

Disease control research fund 1,000,000

DHS indirect cost fund 13,220,400

Emergency medical services

operating fund 4,209,500

Environmental laboratory licensure

revolving fund 995,500

Federal child care and development

fund block grant 992,500

Health services licensing fund 17,416,400

Newborn screening program fund 12,802,900

Nursing care institution resident

protection revolving fund 238,200

Tobacco tax and health care

fund - health research account 3,000,000

Tobacco tax and health care

fund — medically needy account 700,000

Vital records electronic systems

fund 3,872,900

Public health/family health

Of the amount appropriated for the operating lump sum, $100,000 shall be used for a suicide prevention coordinator to assist school districts and charter schools in suicide prevention efforts. On or before September 1, 2025, the department of health services, in consultation with the department of education, shall report to the governor, the president of the senate, the speaker of the house of representatives, the director of the joint legislative budget committee and the director of the governor's office of strategic planning and budgeting on the suicide prevention coordinator's accomplishments in fiscal year 2024-2025.

The amount appropriated to the operating lump sum in fiscal year 2024-2025 includes $1,202,400 from the state general fund to support additional licensing compliance staff. This amount is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2026.

The department of health services may use up to four percent of the amount appropriated for nonrenal disease management for the administrative costs to implement the program.

The department of health services shall distribute monies appropriated for the biomedical research support line item to a nonprofit medical research institute headquartered in this state that specializes in biomedical research focusing on applying genomic technologies and sequencing to clinical care, that has served as a resource to this state to conduct molecular epidemiologic analyses to assist with disease outbreak investigations and that collaborates with universities, hospitals and health science research centers and other public and private bioscience and related industries in this state. The recipient of these monies shall commission an audit of the expenditure of these monies and shall submit a copy of the audit to the department of health services on or before February 1, 2026.

The department of health services shall distribute monies appropriated for Alzheimer's disease research through a grant to a charitable organization that is qualified under section 501(c)(3) of the internal revenue code and that meets the following criteria:

1. Is headquartered in this state.

2. Has been operating in this state for at least the last ten years.

3. Has participating member institutions that work together to end Alzheimer's disease within a statewide collaborative model by using their complementary strengths in brain imaging, computer science, genomics, basic and cognitive neurosciences and clinical and neuropathology research.

4. Has participating member institutions that educate residents of this state about Alzheimer's disease, research progress and resources to help patients, families and professionals manage the disease.

The terms of the grant made to the charitable organization may not impose any requirements that were not imposed in prior grant agreements entered into between the department of health services and the charitable organization.

Monies in the fentanyl overdose medication distribution line item are from the consumer remediation subaccount of the consumer restitution and remediation revolving fund established by section 44-1531.02, Arizona Revised Statutes, and consist of monies deposited in the subaccount pursuant to opioid claims-related litigation or settlements. These monies are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2026.

The amount appropriated to the department of health services for the preceptor grant program for graduate students is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to the lapsing of appropriations. Any monies remaining unexpended on July 1, 2026 revert to the state general fund.

Of the amount appropriated to the department of health services for the behavioral health care provider loan repayment program line item in fiscal year 2022-2023 pursuant to Laws 2022, chapter 313, section 44, $1,000,000 from the state general fund is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2025.

The amount appropriated for the accelerated nursing programs line item in fiscal year 2022-2023 pursuant to Laws 2022, chapter 313, section 44 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2025.

The amount appropriated for the nurse-family partnership programs line item in fiscal year 2023-2024 pursuant to Laws 2023, chapter 133, section 44 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2027.

Arizona state hospital

In addition to the appropriation for the department of health services, earnings on state lands and interest on the investment of the permanent state land funds are appropriated to the Arizona state hospital in compliance with the enabling act and the Constitution of Arizona.

Departmentwide

The department of health services shall electronically forward to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees and the director of the joint legislative budget committee a monthly report comparing total expenditures for the month and year-to-date as compared to prior-year totals on or before the thirtieth of the following month. Each report shall include an estimate of potential shortfalls in programs, potential federal and other monies, such as the statewide assessment for indirect costs, that may be available to offset these shortfalls, and a plan, if necessary, for eliminating any shortfall without a supplemental appropriation.

Sec. 51. ARIZONA HISTORICAL SOCIETY

2024-25

FTE positions 50.9

Operating lump sum appropriation $ 2,420,900

Field services and grants 65,400

Papago park museum 559,500

Total appropriation — Arizona historical

society $ 3,045,800

Fund sources:

State general fund $ 3,045,800

Sec. 52. PRESCOTT HISTORICAL SOCIETY

2024-25

FTE positions 13.0

Lump sum appropriation $ 1,012,900

Fund sources:

State general fund $ 1,012,900

Sec. 53. ARIZONA DEPARTMENT OF HOMELAND SECURITY

2024-25

FTE positions 20.0

Statewide information security

and privacy operations and

controls $ 11,094,400

Statewide cybersecurity grants 10,000,000

Total appropriation — Arizona department of

homeland security $ 21,094,400

Fund sources:

State general fund $ 10,000,000

Information technology fund 11,094,400

Of the amount appropriated for statewide cybersecurity grants, the Arizona department of homeland security may spend up to $500,000 for grant administration.

Sec. 54. BOARD OF HOMEOPATHIC AND INTEGRATED MEDICINE EXAMINERS

2024-25

FTE positions 1.0

Lump sum appropriation $ 61,400

Fund sources:

Board of homeopathic and

integrated medicine

examiners' fund $ 61,400

Sec. 55. ARIZONA DEPARTMENT OF HOUSING

2024-25

FTE positions 3.0

Lump sum appropriation $ 371,100

Fund sources:

Housing trust fund $ 371,100

Sec. 56. INDUSTRIAL COMMISSION OF ARIZONA

2024-25

FTE positions 236.6

Operating lump sum appropriation $ 21,985,500

Municipal firefighter reimbursement

administration 84,700

Total appropriation — industrial commission

of Arizona $ 22,070,200

Fund sources:

State general fund $ 84,700

Administrative fund 21,985,500

The legislature intends that the state general fund appropriation be used only for administrative costs of title 23, chapter 11, Arizona Revised Statutes, and that this appropriation does not convey any responsibility for firefighter cancer compensation and benefits claims to this state.

Sec. 57. DEPARTMENT OF INSURANCE AND FINANCIAL INSTITUTIONS

2024-25

FTE positions 156.4

Operating lump sum appropriation $ 12,644,600

Arizona vehicle theft task force 4,452,600

Automobile theft authority

operating budget 698,700

Insurance fraud unit 1,849,800

Local grants 1,388,900

Reimbursable programs 50,000

Total appropriation — department of insurance

and financial institutions $ 21,084,600

Fund sources:

State general fund $ 8,298,500

Automobile theft authority fund 6,740,900

Financial services fund 5,994,900

Department revolving fund 50,300

Monies in the Arizona vehicle theft task force line item shall be used by the department of insurance and financial institutions to pay seventy-five percent of the personal services and employee-related expenditures for city, town and county sworn officers who participate in the Arizona vehicle theft task force.

Local grants shall be awarded with consideration given to areas with greater automobile theft problems and shall be used to combat economic automobile theft operations.

The department of insurance and financial institutions shall submit a report to the joint legislative budget committee before spending any monies for the reimbursable programs line item. The department shall show sufficient monies collected to cover the expenses indicated in the report.

Of the department fees required to be deposited in the state general fund by statute, the legislature intends that the department of insurance and financial institutions shall assess and set the fees at a level to ensure that the monies deposited in the state general fund will equal or exceed the department's expenditure from the state general fund.

Sec. 58. ARIZONA JUDICIARY

2024-25

Supreme court

FTE positions 203.0

Operating lump sum appropriation $ 18,167,200

Arizona trial and digital

evidence fund deposit 1,620,000

Automation 24,533,000

County reimbursements 187,900

Court appointed special advocate

and vulnerable persons 6,576,700

Courthouse security 750,000

Digital evidence software 280,000

Domestic relations 685,900

State foster care review board 3,504,900

Commission on judicial conduct 603,700

Judicial nominations and

performance review 608,500

Juvenile monetary sanctions

funding backfill 250,000

Model court 658,800

State aid 5,931,900

Total appropriation — supreme court $ 64,358,500

Fund sources:

State general fund $ 29,683,400

Confidential intermediary and

fiduciary fund 682,800

Court appointed special advocate

fund 6,776,000

Criminal justice enhancement fund 4,691,900

Defensive driving school fund 4,464,000

Judicial collection enhancement

fund 15,114,200

State aid to the courts fund 2,946,200

On or before September 1, 2024, the supreme court shall report to the joint legislative budget committee and the governor's office of strategic planning and budgeting on current and future automation projects coordinated by the administrative office of the courts. The report shall include a list of court automation projects that receive or are anticipated to receive state monies in the current or next two fiscal years as well as a description of each project, the number of FTE positions, the entities involved and the goals and anticipated results for each automation project. The report shall be submitted in one summary document. The report shall indicate each project's total multiyear cost by fund source and budget line item, including any prior-year, current year and future year expenditures.

Automation expenses of the judiciary shall be funded only from the automation line item. Monies in the operating lump sum appropriation or other line items intended for automation purposes shall be transferred to the automation line item before expenditure.

Included in the operating lump sum appropriation for the supreme court is $1,000 for the purchase of mementos and items for visiting officials.

Of the $187,900 appropriated for county reimbursements, state grand jury is limited to $97,900 and capital postconviction relief is limited to $90,000.

Court of appeals

FTE positions 162.8

Division one $ 16,212,600

Division two 8,498,200

Total appropriation — court of appeals $ 24,710,800

Fund sources:

State general fund $ 24,710,800

Of the 162.8 FTE positions for fiscal year 2024-2025, 111.3 FTE positions are for division one and 51.5 FTE positions are for division two.

Superior court

FTE positions 240.5

Operating lump sum appropriation $ 5,609,600

Judges' compensation 29,913,900

Centralized service payments 4,696,900

Adult standard probation 22,297,500

Adult intensive probation 13,150,200

Community punishment 2,310,300

Court-ordered removals 315,000

Interstate compact 513,700

Drug court 1,096,400

General adjudication personnel

and support fund deposit 2,000,000

Juvenile standard probation 3,781,800

Juvenile intensive probation 6,087,200

Juvenile treatment services 20,803,000

Juvenile family counseling 500,000

Juvenile crime reduction 3,313,100

Juvenile diversion consequences 9,088,500

Probation incentive payments 1,000,000

Special water master 511,100

Total appropriation — superior court $126,988,800

Fund sources:

State general fund $114,973,100

Criminal justice enhancement fund 5,496,100

Drug treatment and education fund 504,200

Judicial collection enhancement

fund 6,015,400

Operating budget

All expenditures made by the administrative office of the courts to administer superior court line items shall be funded only from the superior court operating budget. Monies in superior court line items intended for this purpose shall be transferred to the superior court operating budget before expenditure.

Judges

Of the 240.5 FTE positions, 182 FTE positions represent superior court judges. This FTE position clarification does not limit the counties' ability to add judges pursuant to section 12-121, Arizona Revised Statutes.

All monies in the judges' compensation line item shall be used to pay for fifty percent of superior court judges' salaries, elected officials' retirement plan costs and related state benefit costs for judges pursuant to section 12-128, Arizona Revised Statutes. Monies in the operating lump sum appropriation or other line items intended for this purpose shall be transferred to the judges' compensation line item before expenditure.

Probation

Monies appropriated to juvenile treatment services and juvenile diversion consequences shall be deposited in the juvenile probation services fund established by section 8-322, Arizona Revised Statutes.

Receipt of state probation monies by the counties is contingent on the county maintenance of fiscal year 2019-2020 expenditure levels for each probation program. State probation monies are not intended to supplant county dollars for probation programs.

On or before November 1, 2024, the administrative office of the courts shall report to the joint legislative budget committee and the governor's office of strategic planning and budgeting the fiscal year 2023-2024 actual, fiscal year 2024-2025 estimated and fiscal year 2025-2026 requested amounts for each of the following:

1. On a county-by-county basis, the number of authorized and filled case carrying probation positions and non-case carrying probation positions, distinguishing between adult standard, adult intensive, juvenile standard and juvenile intensive. The report shall indicate the level of state probation funding, other state funding, county funding and probation surcharge funding for those positions.

2. Total receipts and expenditures by county and fund source for the adult standard, adult intensive, juvenile standard and juvenile intensive probation line items, including the amount of personal services spent from each revenue source of each account.

All centralized service payments made by the administrative office of the courts on behalf of counties shall be funded only from the centralized service payments line item. Centralized service payments include only training, motor vehicle payments, CORP review board funding, LEARN funding, research, operational reviews and GPS vendor payments. This footnote does not apply to treatment or counseling services payments made from the juvenile treatment services and juvenile diversion consequences line items. Monies in the operating lump sum appropriation or other line items intended for centralized service payments shall be transferred to the centralized service payments line item before expenditure.

All monies in the adult standard probation, adult intensive probation, community punishment, interstate compact, juvenile standard probation, juvenile intensive probation, juvenile treatment services, juvenile diversion consequences, juvenile crime reduction and probation incentive payments line items shall be used only as pass-through monies to county probation departments. Monies in the operating lump sum appropriation or other line items intended as pass-through for the purpose of administering a county probation program shall be transferred to the appropriate probation line item before expenditure.

On or before November 1, 2024, the administrative office of the courts shall submit a report to the joint legislative budget committee on the county-approved salary adjustments provided to probation officers since the last report on November 1, 2023. The administrative office shall also submit a copy of the report to the governor's office of strategic planning and budgeting. The report shall include, for each county, the:

1. Approved percentage salary increase by year.

2. Net increase in the amount allocated to each probation department by the administrative office of the courts for each applicable year.

3. Average number of probation officers by applicable year.

4. Average salary of probation officers for each applicable year.

Sec. 59. DEPARTMENT OF JUVENILE CORRECTIONS

2024-25

FTE positions 738.5

Lump sum appropriation $ 44,496,700

Fund sources:

State general fund $ 30,920,800

State charitable, penal and

reformatory institutions

land fund 4,875,100

Criminal justice enhancement fund 529,000

State education fund for committed

youth 1,447,800

Department of juvenile corrections

local cost sharing fund 6,724,000

Twenty-five percent of land earnings and interest from the state charitable, penal and reformatory institutions land fund shall be distributed to the department of juvenile corrections, in compliance with section 25 of the enabling act and the Constitution of Arizona, to be used to support state juvenile institutions and reformatories.

Sec. 60. STATE LAND DEPARTMENT

2024-25

FTE positions 136.7

Operating lump sum appropriation $ 17,787,000

CAP user fees 1,521,500

Due diligence program 5,000,000

Natural resource conservation

districts 650,000

Total appropriation — state land department $ 24,958,500

Fund sources:

State general fund $ 12,404,000

Environmental special plate fund 260,600

Off-highway vehicle recreation

fund 177,600

Due diligence fund 5,000,000

Trust land management fund 7,116,300

The appropriation includes $1,521,500 for CAP user fees in fiscal year 2024-2025. For fiscal year 2024-2025, from municipalities that assume their allocation of central Arizona project water for every dollar received as reimbursement to this state for past central Arizona water conservation district payments, $1 reverts to the state general fund in the year that the reimbursement is collected.

Of the amount appropriated for natural resource conservation districts in fiscal year 2024-2025, $30,000 shall be used to provide grants to natural resource conservation districts environmental education centers.

Sec. 61. LEGISLATURE

2024-25

Senate

Lump sum appropriation $ 18,374,500*

Fund sources:

State general fund $ 18,374,500

Included in the lump sum appropriation of $18,374,500 for fiscal year 2024-2025 is $5,000 for the purchase of mementos and items for visiting officials.

House of representatives

Lump sum appropriation $ 21,951,500*

Fund sources:

State general fund $ 21,951,500

Included in the lump sum appropriation of $21,951,500 for fiscal year 2024-2025 is $5,000 for the purchase of mementos and items for visiting officials.

Legislative council

FTE positions 56.0

Lump sum appropriation $ 9,507,700*

Fund sources:

State general fund $ 9,507,700

Ombudsman-citizens aide office

FTE positions 12.0

Lump sum appropriation $ 1,561,200*

Fund sources:

State general fund $ 1,561,200

The legislature intends that the ombudsman-citizens aide prioritize investigating and processing complaints relating to the department of child safety.

The operating budget includes $137,500 and 1 FTE position to address complaints relating to the administration of the Arizona empowerment scholarship account program established by section 15-2402, Arizona Revised Statutes.

Joint legislative budget committee

FTE positions 29.0

Lump sum appropriation $ 3,122,700*

Fund sources:

State general fund $ 3,122,700

Auditor general

FTE positions 224.8

Lump sum appropriation $26,316,600*

Fund sources:

State general fund $ 26,316,600

Of the amount appropriated for the lump sum appropriation, the auditor general shall use $3,300,000 for additional agency performance audits and school district audits.

Sec. 62. DEPARTMENT OF LIQUOR LICENSES AND CONTROL

2024-25

FTE positions 58.2

Lump sum appropriation $ 6,150,900

Fund sources:

Liquor licenses fund $ 6,150,900

Sec. 63. ARIZONA STATE LOTTERY COMMISSION

2024-25

FTE positions 98.8

Operating lump sum appropriation $ 10,195,400

Advertising 15,500,000

Total appropriation — Arizona state

lottery commission $ 25,695,400

Fund sources:

State lottery fund $ 25,695,400

An amount equal to twenty percent of tab ticket sales is appropriated to pay sales commissions to charitable organizations. This amount is currently estimated to be $1,994,900 in fiscal year 2024-2025.

An amount equal to 3.6 percent of actual instant ticket sales is appropriated to print instant tickets or to pay contractual obligations concerning instant ticket distribution. This amount is currently estimated to be $42,399,600 in fiscal year 2024-2025.

An amount equal to a percentage of actual online game sales as determined by contract is appropriated to pay online vendor fees. This amount is currently estimated to be $20,729,900, or 4.256 percent of actual online ticket sales, in fiscal year 2024-2025.

An amount equal to 6.5 percent of gross lottery game sales, minus charitable tab tickets, is appropriated to pay sales commissions to ticket retailers. An additional amount not to exceed 0.5 percent of gross lottery game sales is appropriated to pay sales commissions to ticket retailers. The combined amount is currently estimated to be $110,876,200, or 6.7 percent of total ticket sales, in fiscal year 2024-2025.

Sec. 64. BOARD OF MASSAGE THERAPY

2024-25

FTE positions 5.0

Lump sum appropriation $ 599,000

Fund sources:

Board of massage therapy fund $ 599,000

Sec. 65. ARIZONA MEDICAL BOARD

2024-25

FTE positions 63.5

Operating lump sum appropriation $ 8,195,400

Employee performance incentive

program 165,600

Total appropriation — Arizona medical

board $ 8,361,000

Fund sources:

Arizona medical board fund $ 8,361,000

Sec. 66. STATE MINE INSPECTOR

2024-25

FTE positions 22.0

Operating lump sum appropriation $ 1,484,500

Abandoned mines 825,400

Aggregate mining land reclamation 112,900

Total appropriation — state mine inspector $ 2,422,800

Fund sources:

State general fund $ 2,309,900

Aggregate mining reclamation fund 112,900

All aggregate mining reclamation fund monies received by the state mine inspector in excess of $112,900 in fiscal year 2024-2025 are appropriated to the aggregate mining land reclamation line item. Before spending any aggregate mining reclamation fund monies in excess of $112,900 in fiscal year 2024-2025, the state mine inspector shall report the intended use of the monies to the joint legislative budget committee and the governor's office of strategic planning and budgeting.

Sec. 67. NATUROPATHIC PHYSICIANS MEDICAL BOARD

2024-25

FTE positions 2.0

Lump sum appropriation $ 217,700

Fund sources:

Naturopathic physicians medical

board fund $ 217,700

Sec. 68. ARIZONA NAVIGABLE STREAM ADJUDICATION COMMISSION

2024-25

FTE positions 2.0

Lump sum appropriation $ 344,000

Fund sources:

State general fund $ 144,000

Arizona water banking fund 200,000

Sec. 69. ARIZONA STATE BOARD OF NURSING

2024-25

FTE positions 63.0

Operating lump sum appropriation $ 6,411,500

Certified nursing assistant

credentialing program 538,400

Total appropriation — Arizona state

board of nursing $ 6,949,900

Fund sources:

Board of nursing fund 6,949,900

The amount appropriated for the student registered nurse anesthetist clinical rotation line item in fiscal year 2023-2024 pursuant to Laws 2023, chapter 133, section 63 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2025.

Sec. 70. BOARD OF EXAMINERS OF NURSING CARE INSTITUTION ADMINISTRATORS AND ASSISTED LIVING FACILITY MANAGERS

2024-25

FTE positions 7.0

Lump sum appropriation $ 604,900

Fund sources:

Nursing care institution

|| administrators' licensing and

|| assisted living facility

|| managers' certification fund $ 604,900

Sec. 71. BOARD OF OCCUPATIONAL THERAPY EXAMINERS

2024-25

FTE positions 2.0

Lump sum appropriation $ 303,000

Fund sources:

Occupational therapy fund $ 303,000

Sec. 72. STATE BOARD OF DISPENSING OPTICIANS

2024-25

FTE positions 1.0

Lump sum appropriation $ 198,200

Fund sources:

Board of dispensing opticians fund $ 198,200

Sec. 73. STATE BOARD OF OPTOMETRY

2024-25

FTE positions 2.0

Lump sum appropriation $ 289,200

Fund sources:

Board of optometry fund $ 289,200

Sec. 74. ARIZONA BOARD OF OSTEOPATHIC EXAMINERS IN MEDICINE AND SURGERY

2024-25

FTE positions 10.0

Lump sum appropriation $ 1,394,300

Fund sources:

Arizona board of osteopathic

examiners in medicine

and surgery fund $ 1,394,300

Sec.|75. ARIZONA STATE PARKS BOARD

2024-25

FTE positions 167.0

Operating lump sum appropriation $ 18,140,100

State parks store 1,513,100

Kartchner caverns state park 2,458,400

Veterans memorial park feasibility

study 500,000

Total appropriation — Arizona state parks

board $ 22,611,600

Fund sources:

State parks revenue fund $ 21,081,800

State parks store fund 1,513,100

Off-highway vehicle recreation fund 16,700

In addition to the operating lump sum appropriation, an amount equal to the revenue share agreement with the United States forest service for Fool Hollow Lake recreation area and Catalina state park is appropriated to the Arizona state parks board from the state parks revenue fund established by section 41-511.21, Arizona Revised Statutes.

Sec. 76. STATE PERSONNEL BOARD

2024-25

FTE positions 2.0

Lump sum appropriation $ 361,100

Fund sources:

Personnel division fund —

personnel board subaccount $ 361,100

Sec. 77. ARIZONA STATE BOARD OF PHARMACY

2024-25

FTE positions 25.4

Operating lump sum appropriation $ 3,476,700

Prescriber report card 50,000

Annual leave payout 64,600*

Total appropriation — Arizona state

board of pharmacy $ 3,591,300

Fund sources:

Arizona state board of pharmacy

fund $ 3,591,300

Of the amount appropriated in the operating lump sum appropriation in fiscal year 2022-2023 to the Arizona state board of pharmacy pursuant to Laws 2022, chapter 313, section 71, $190,500 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to the lapsing of appropriations, until June 30, 2025, for the purposes of e-licensing system upgrades.

Sec. 78. BOARD OF PHYSICAL THERAPY

2024-25

FTE positions 4.0

Lump sum appropriation $ 591,500

Fund sources:

Board of physical therapy fund $ 591,500

Sec. 79. ARIZONA PIONEERS' HOME

2024-25

FTE positions 107.3

Lump sum appropriation $ 8,380,200

Fund sources:

Miners' hospital for miners with

disabilities land fund $ 2,301,300

State charitable fund 6,078,900

Earnings on state lands and interest on the investment of the permanent land funds are appropriated for the Arizona pioneers' home and the state hospital for miners with disabilities in compliance with the enabling act and the Constitution of Arizona.

Sec. 80. STATE BOARD OF PODIATRY EXAMINERS

2024-25

FTE positions 1.0

Lump sum appropriation $ 202,500

Fund sources:

Podiatry fund $ 202,500

Sec. 81. STATE BOARD FOR PRIVATE POSTSECONDARY EDUCATION

2024-25

FTE positions 4.0

Lump sum appropriation $ 448,100

Fund sources:

Board for private postsecondary

education fund $ 448,100

Sec. 82. STATE BOARD OF PSYCHOLOGIST EXAMINERS

2024-25

FTE positions 4.5

Lump sum appropriation $ 640,000

Fund sources:

Board of psychologist examiners

|| fund $ 640,000

Sec. 83. DEPARTMENT OF PUBLIC SAFETY

2024-25

FTE positions 2,167.7

Operating lump sum appropriation $271,399,700

ACTIC 2,132,700

AZPOST 6,100,000

Border drug interdiction 1,850,900

Local border support 5,000,000

Civil air patrol maintenance and

operations 144,000

Department of public safety

crime lab assistance 200,000

GIITEM 24,514,300

GIITEM subaccount 2,396,400

Major incident division 15,500,000*

Motor vehicle fuel 5,454,600

Pharmaceutical diversion and

drug theft task force 635,300

Public safety equipment 3,660,000

Total appropriation — department of public

safety $338,987,900

Fund sources:

State general fund $262,246,500

State highway fund 10,000,000

Arizona highway patrol fund 24,096,500

Criminal justice enhancement fund 3,009,000

Department of public safety

forensics fund 22,888,300

Gang and immigration intelligence

team enforcement mission border

security and law enforcement

subaccount 2,396,400

Motorcycle safety fund 198,900

Motor vehicle liability insurance

enforcement fund 979,400

Risk management revolving fund 1,102,500

Parity compensation fund 3,022,200

Public safety equipment fund 3,664,000

Concealed weapons permit fund 3,348,100

Fingerprint clearance card fund 2,036,100

Of the $24,514,300 appropriated to the GIITEM line item, $12,660,400 shall be used for one hundred department of public safety GIITEM personnel. The additional staff shall include at least fifty sworn department of public safety positions to be used for immigration enforcement and border security and fifty department of public safety positions to assist GIITEM in various efforts, including:

1. Strictly enforcing all federal laws relating to illegal aliens and arresting illegal aliens.

2. Responding to or assisting any county sheriff or attorney in investigating complaints of employment of illegal aliens.

3. Enforcing Arizona's law known as the Legal Arizona Workers Act, strictly enforcing Arizona's SB 1070, Arizona's "Support Our Law Enforcement and Safe Neighborhoods Act" and investigating crimes of identity theft in the context of hiring illegal aliens and the unlawful entry into this country.

4. Taking strict enforcement action.

Any change in the GIITEM mission or allocation of monies shall be approved by the joint legislative budget committee. The department shall submit an expenditure plan to the joint legislative budget committee for review before expending any monies not identified in the department's previous expenditure plans.

Of the $24,514,300 appropriated to the GIITEM line item, only $1,203,400 is deposited in the GIITEM fund established by section 41-1724, Arizona Revised Statutes, and is appropriated for the purposes of that section. The $1,203,400 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations. This state recognizes that states have inherent authority to arrest a person for any immigration violation.

Any monies remaining in the department of public safety joint account on June 30, 2025 revert to the funds from which they were appropriated. The reverted monies shall be returned in direct proportion to the amounts appropriated.

On or before September 1, 2024, the department of public safety shall submit an expenditure plan for the local border support line item to the joint legislative budget committee and the governor's office of strategic planning and budgeting.

The $5,000,000 appropriated for the local border support line item shall be used to fund local law enforcement officer positions for border drug interdiction to deter and apprehend any individuals who are charged with drug trafficking, human smuggling, illegal immigration and other border-related crimes. The monies shall also be used for grants to cities, towns and counties for costs associated with prosecuting and detaining individuals who are charged with drug trafficking, human smuggling, illegal immigration and other border-related crimes. The department may fund all capital-related equipment.

Of the amount appropriated in the total appropriation for the department of public safety, $180,608,800 is designated for personal services and $72,235,200 is designated for employee-related expenditures. The department shall submit an expenditure plan to the joint legislative budget committee for review before spending these monies for other than personal services or employee-related expenditures.

Sec. 84. STATE REAL ESTATE DEPARTMENT

2024-25

FTE positions 37.0

Lump sum appropriation $ 3,198,000

Fund sources:

State general fund $ 3,198,000

The lump sum appropriation for the state real estate department includes $400,000 for information technology improvements.

Sec. 85. RESIDENTIAL UTILITY CONSUMER OFFICE

2024-25

FTE positions 12.0

Operating lump sum appropriation $ 1,447,200

Professional witnesses 145,000*

Total appropriation — residential utility

consumer office $ 1,592,200

Fund sources:

Residential utility consumer

|| office revolving fund $ 1,592,200

Sec. 86. BOARD OF RESPIRATORY CARE EXAMINERS

2024-25

FTE positions 4.0

Lump sum appropriation $ 421,400

Fund sources:

Board of respiratory care

|| examiners fund $ 421,400

Sec. 87. ARIZONA STATE RETIREMENT SYSTEM

2024-25

FTE positions 240.9

Lump sum appropriation $ 28,513,000

Fund sources:

Arizona state retirement system

|| administration account 26,713,000

Long-term disability trust fund

administration account 1,800,000

Sec. 88. DEPARTMENT OF REVENUE

2024-25

FTE positions 892.8

Operating lump sum appropriation $ 76,294,800

BRITS operational support 7,897,200

E-commerce compliance and outreach 936,400

Unclaimed property administration

and audit 1,473,900

TPT simplification 1,033,400

Tax fraud prevention 3,155,300

Total appropriation — department of revenue $ 90,791,000

Fund sources:

State general fund $ 60,587,600

Department of revenue

administrative fund 27,390,900

Liability setoff program

revolving fund 2,087,900

Tobacco tax and health care fund 724,600

If the total value of properties retained by unclaimed property contract auditors exceeds $1,473,900, the excess amount is transferred from the state general fund to the department of revenue administrative fund established by section 42-1116.01, Arizona Revised Statutes, and is appropriated to the department for contract auditor fees.

The department shall report the department's general fund revenue enforcement goals for fiscal year 2024-2025 to the joint legislative budget committee on or before September 30, 2024. On or before September 30, 2025, the department shall provide an annual progress report to the joint legislative budget committee as to the effectiveness of the department's overall enforcement and collections program for fiscal year 2024-2025. The reports shall compare projected and actual state general fund, total state tax, total county tax and total municipal tax revenue enforcement collections for fiscal year 2023-2024 and fiscal year 2024-2025, including the amount of projected and actual enforcement collections for all tax types. The reports shall also include the total number of transaction privilege tax delinquent accounts, the total dollar value of those accounts classified by age of account and the total dollar amount of delinquent account write-offs determined to be uncollectible for fiscal year 2023-2024.

The department may not transfer any monies to or from the tax fraud prevention line item without prior review by the joint legislative budget committee.

The operating lump sum appropriation includes $2,000,000 and 25 FTE positions for additional audit and collections staff.

On or before November 1, 2024, the department shall report the results of private fraud prevention investigation services during fiscal year 2023-2024 to the joint legislative budget committee. The report shall include the total number of fraudulent returns prevented and the total dollar amount of fraudulent returns prevented during fiscal year 2023-2024.

Sec. 89. DEPARTMENT OF STATE — SECRETARY OF STATE

2024-25

FTE positions 146.1

Operating lump sum appropriation $ 15,000,400

Access voter information database 483,500

Election services 7,900,000

Electronic records repository 520,000

Library grants-in-aid 651,400*

Statewide radio reading service

for the blind 97,000

Uniform state laws commission 99,000

Total appropriation — department of

state — secretary of state $ 24,751,300

Fund sources:

State general fund $ 22,325,700

Election systems improvement fund 483,500

Records services fund 1,942,100

Included in the operating lump sum appropriation of $15,000,400 for fiscal year 2024-2025 is $5,000 for the purchase of mementos and items for visiting officials.

Included in the operating lump sum appropriation of $15,000,400 for fiscal year 2024-2025 is $1,492,100 from the records services fund. This appropriation may be used for the payment of obligations incurred in fiscal year 2023-2024.

The operating lump sum appropriation includes $100,000 for additional support for the talking book library.

The operating lump sum appropriation includes $250,000 for additional support for the address confidentiality program.

The operating lump sum appropriation includes $100,000 for additional support for secretary of state legal expenses. The secretary of state may spend these monies for legal services from the attorney general, to hire one FTE position to serve as legal advisor to the secretary of state or for legal expenses for conflict counsel. The secretary of state may make expenditures or incur indebtedness to employ outside or private attorneys if all of the following are true:

1. The secretary of state is named as a defendant.

2. The secretary of state believes a conflict exists that prevents the attorney general from representing the secretary of state.

3. The secretary of state either remains a nominal party or is defending the constitutionality of a law or referendum enacted by the legislature.

Before transferring any monies in or out of the election services line item, the secretary of state shall submit a report for review by the joint legislative budget committee.

The secretary of state may use up to $250,000 of the monies appropriated in the election services line item for the direct costs of the secretary of state related to the 2024 primary and general elections.

On or before January 31, 2025, the secretary of state shall submit a report to the joint legislative budget committee and the governor’s office of strategic planning and budgeting detailing the actual expenditures from the election services line item for the 2024 primary election and 2024 general election. The report shall include, at a minimum, the actual expenditures by purpose including costs associated with logic and accuracy testing, the statewide election publicity pamphlet, initiative and referendum processing, petition signature reimbursements and sample ballot requirements.

Monies in the access voter information database line item may be used only for the exclusive purpose of developing and administering the statewide database of voter registration information required by section 16-168, Arizona Revised Statutes. The secretary of state may not transfer any monies in or out of the access voter information database line item.

The appropriation of $5,352,200 to the secretary of state for the county allocation of help America vote act election security grant monies made by Laws 2020, chapter 58, section 104 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2025. The monies that remain unexpended and unencumbered on June 30, 2025 revert to the fund from which the monies were appropriated.

Sec. 90. STATE BOARD OF TAX APPEALS

2024-25

FTE positions 4.0

Lump sum appropriation $ 327,400

Fund sources:

State general fund $ 327,400

Sec. 91. STATE BOARD OF TECHNICAL REGISTRATION

2024-25

FTE positions 25.0

Lump sum appropriation $ 2,605,000

Fund sources:

Technical registration fund $ 2,605,000

Of the amount appropriated in the agency lump sum appropriation in fiscal year 2022-2023 to the state board of technical registration pursuant to Laws 2022, chapter 313, section 85, $167,700 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to the lapsing of appropriations, until June 30, 2025, for the purposes of e-licensing system upgrades.

Sec. 92. OFFICE OF TOURISM

2024-25

FTE positions 31.0

Tourism fund deposit $ 7,426,200

Arizona promotion 819,000

Wine promotion 100,000

Total appropriation — office of tourism $ 8,345,200

Fund sources:

State general fund $ 8,345,200

Sec. 93. DEPARTMENT OF TRANSPORTATION

2024-25

FTE positions 4,571.0

Operating lump sum appropriation $251,853,100

Attorney general legal services 3,623,700

Highway maintenance 163,242,200

ADOT fleet vehicles and heavy

equipment maintenance 26,219,300

ADOT fleet vehicles and heavy

equipment maintenance contingency 1,000,000

State fleet operations 29,149,000

State fleet vehicle replacement 11,370,000

Driver safety and livestock control 800,000

ADOT fleet vehicle and heavy

equipment replacement 22,400,000

Highway damage recovery account 8,000,800

Statewide litter removal 3,106,800

Construction management system

replacement 1,885,000

Onetime fleet fuel inflation

funding 3,297,900

Radio lifecycle replacement 1,656,100

Preventive surface treatments 36,142,000

Authorized third parties 2,194,000

Total appropriation — department of

transportation $565,939,900

Fund sources:

Air quality fund $ 1,077,700

Arizona highway user revenue fund 898,600

Highway damage recovery account 8,000,800

Ignition interlock device fund 360,700

Motor vehicle liability

insurance enforcement fund 1,582,300

State fleet operations fund 29,149,000

State vehicle replacement fund 11,370,000

State aviation fund 2,267,700

State highway fund 482,367,200

Department fleet operations fund 27,219,300

Vehicle inspection and certificate

of title enforcement fund 1,646,600

Motor vehicle division

The department of transportation shall submit an annual report to the joint legislative budget committee on progress in improving motor vehicle division wait times and vehicle registration renewal by mail turnaround times in a format similar to prior years. The report is due on or before July 31, 2025 for fiscal year 2024-2025.

On or before February 1, 2025, the Arizona strategic enterprise technology office shall submit, on behalf of the department of transportation, an annual progress report to the joint legislative budget committee staff. The annual report shall provide updated plans for spending the department-dedicated portion of the authorized third-party electronic service partner's fee retention on the motor vehicle modernization project in fiscal year 2024-2025, including any amounts for stabilization, maintenance, ongoing operations, support and enhancements for the motor vehicle modernization solution, maintenance of legacy mainframe processing and support capability, and other system projects outside the scope of the motor vehicle modernization project.

On or before August 1, 2024, the department of transportation shall report to the director of the joint legislative budget committee the state's share of fees retained by the service Arizona vendor in the prior fiscal year. The report shall include the amount spent by the service Arizona vendor on behalf of this state in the prior fiscal year and a list of the projects funded with those monies.

Other

Of the total amount appropriated, $163,242,200 in fiscal year 2024-2025 for highway maintenance is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, except that all unexpended and unencumbered monies of the appropriation revert to the state highway fund established by section 28-6991, Arizona Revised Statutes, on August 31, 2025.

The amount appropriated to the preventive surface treatments line item is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, except that all unexpended and unencumbered monies of the appropriation revert to the state highway fund established by section 28-6991, Arizona Revised Statutes, on August 31, 2025.

Of the total amount appropriated, the department of transportation shall pay $15,981,300 in fiscal year 2024-2025 from all funds to the department of administration for its risk management payment.

All expenditures made by the department of transportation for attorney general legal services shall be funded only from the attorney general legal services line item. Monies in the operating lump sum appropriation or other line items intended for this purpose shall be transferred to the attorney general legal services line item before expenditure.

In accordance with section 35-142.01, Arizona Revised Statutes, reimbursements for monies expended from the highway maintenance line item may not be credited to the account out of which the expenditure was incurred. The department shall deposit all reimbursements for monies expended from the highway maintenance line item in the highway damage recovery account established by section 28-6994, Arizona Revised Statutes.

Expenditures made by the department of transportation for ADOT fleet vehicle and heavy equipment replacement shall be funded only from the ADOT fleet vehicle and heavy equipment replacement line item. Monies in the operating lump sum appropriation or other line items intended for this purpose shall be transferred to the ADOT fleet vehicle and heavy equipment replacement line item before expenditure.

The amount appropriated in the operating lump sum includes a $3,000,000 reduction below the fiscal year 2023-2024 level from the state highway fund established by section 28-6991, Arizona Revised Statutes, in fiscal year 2024-2025 from the department's enforcement and compliance division.

Sec. 94. STATE TREASURER

2024-25

FTE positions 38.4

Operating lump sum appropriation $ 4,644,800

Justice of the peace salaries 2,318,200

Law enforcement/boating safety

fund grants 2,183,800

Total appropriation — state treasurer $ 9,146,800

Fund sources:

State general fund $ 2,660,800

Law enforcement and boating

safety fund 2,183,800

State treasurer's operating fund 4,302,200

On or before June 30, 2025, the state treasurer shall report to the joint legislative budget committee staff on the state treasurer's current fiscal year and estimated next fiscal year expenditures of interest earnings spent pursuant to sections 35-315 and 35-318, Arizona Revised Statutes, for the state treasurer's banking service contract, external investment management agreement, administrative and information technology costs and any other costs.

Sec. 95. GOVERNOR'S OFFICE ON TRIBAL RELATIONS

2024-25

FTE positions 3.0

Lump sum appropriation $ 68,800

Fund sources:

State general fund $ 68,800

Sec. 96. ARIZONA BOARD OF REGENTS

2024-25

FTE positions 30.9

Operating lump sum appropriation $ 3,165,600

Adaptive athletics 160,000

Arizona promise program 20,000,000

Spouses of military veterans

tuition scholarships 10,000,000

Arizona teachers academy 15,000,000

Arizona teachers incentive program 90,000

Arizona teacher student loan program 426,000

Arizona transfer articulation

support system 213,700

Leveraging educational assistance

partnership program 1,220,800

Washington, D.C. internships 300,000*

Western interstate commission

office 153,000

WICHE student subsidies 4,078,000

Total appropriation — Arizona board of

regents $ 54,807,100

Fund sources:

State general fund $ 54,807,100

The Arizona board of regents shall distribute monies appropriated for the adaptive athletics line item to each university under the jurisdiction of the board to maintain and operate an intercollegiate adaptive athletics program that provides opportunities for competitive wheelchair and adaptive sports to students and community members with disabilities. The monies may be spent only when the university collects matching monies of gifts, grants and donations for the intercollegiate adaptive athletics program from sources other than this state. Universities may spend the monies only on scholarships, equipment, uniforms, travel expenses and tournament fees for participants in the intercollegiate adaptive athletics program. The monies may not be used for administrative costs, personal services or employee related- expenditures.

On or before October 1, 2025, the Arizona board of regents shall submit a report to the director of the joint legislative budget committee and the director of the governor's office of strategic planning and budgeting on the Arizona promise program that includes all of the following for fiscal year 2024-2025:

1. The total number of students receiving promise scholarships by each eligible postsecondary institution.

2. The total number of students enrolled at each eligible postsecondary institution that are eligible to receive federal pell grants.

3. A list of the programs of study in which promise scholarship recipients are enrolled, including the number of recipients enrolled in each program.

4. The average promise scholarship award amount for each eligible postsecondary institution.

5. A geographic representation of promise scholarship recipients based on the high school attended.

6. The average grade point average of promise scholarships recipients by each eligible postsecondary institution.

On or before October 1, 2025, the Arizona board of regents shall submit a report to the director of the joint legislative budget committee and the director of the governor's office of strategic planning and budgeting on spouses of military veterans tuition scholarships that includes all of the following for fiscal year 2024-2025:

1. The amount distributed to each eligible postsecondary institution.

2. The total number of award recipients by each eligible postsecondary institution.

3. The average award amount for each eligible postsecondary institution.

In order to be eligible to receive state matching monies under the leveraging educational assistance partnership program for grants to students, each participating institution, public or private, shall provide an amount of institutional matching monies that equals the amount of monies provided by this state to the institution for the leveraging educational assistance partnership program. Administrative expenses incurred by the Arizona board of regents shall be paid from institutional matching monies and may not exceed twelve percent of the monies appropriated in fiscal year 2024-2025.

The Arizona board of regents shall distribute monies appropriated for Washington, D.C. internships for program fees and housing costs in equal amounts to each of the three universities under the jurisdiction of the board for the purpose of providing student internships and short-term programs in Washington, D.C. in partnership with a third-party organization. Short-term programs include one-week seminars and learning opportunities shorter than one academic semester. The third-party organization must meet the following requirements:

1. Have partnerships with Washington, D.C.—based organizations to provide full-time, semester-long student internships and short-term programs.

2. Have the ability to place as many students in internships and short-term programs as needed by the universities.

3. Have experience placing students in internships for at least ten consecutive years.

4. Have dedicated staff to ensure that student interns have access to internships in their areas of interest.

Within ten days after the acceptance of the universities' semiannual all funds budget reports, the Arizona board of regents shall submit a current year expenditure plan to the joint legislative budget committee for review. The expenditure plan shall include the use of all projected tuition and fee revenues by expenditure category, including operating expenses, plant fund, debt service and financial aid. The plan shall include the amount by which each expenditure category is projected to increase over the prior year and shall provide as much detail as the university budget requests. The plan shall include the total revenue and expenditure amounts from all tuition and student fee revenues, including base tuition, differential tuition, program fees, course fees, summer session fees and other miscellaneous and mandatory student fee revenues.

Sec. 97. ARIZONA STATE UNIVERSITY

2024-25

FTE positions 8,285.7

Operating lump sum appropriation $1,088,402,400

Biomedical informatics 3,746,100

Eastern Europe cultural collaborative 250,000

Arizona financial aid trust 5,985,800

Downtown Phoenix campus 133,816,600

Total appropriation — Arizona state

university $1,232,200,900

Fund sources:

State general fund $ 377,793,800

University collections fund 854,407,100

The state general fund appropriation may not be used for alumni association funding.

The increased state general fund appropriation from Laws 2014, chapter 18 may not be used for medical marijuana research.

Other than scholarships awarded through the Arizona financial aid trust, the appropriated monies may not be used for scholarships or any student newspaper.

The appropriated monies may not be used by the Arizona state university college of law legal clinic for any lawsuits involving inmates of the state department of corrections in which this state is the adverse party.

Of the amount appropriated to the Arizona state university operating budget, $21,200,000 is onetime funding. On or before September 1, 2024, Arizona state university shall provide a detailed expenditure plan to the joint legislative budget committee that includes a description of the intended purposes and the estimated costs of each expenditure.

Arizona state university shall use monies appropriated for the eastern Europe cultural collaborative to facilitate cultural and academic exchanges between university faculty and students and academic institutions in eastern Europe.

Any appropriated monies allocated by the university for the school of civic and economic thought and leadership shall be used to operate a single stand-alone academic entity within Arizona state university. The appropriated monies may not supplant any existing state funding or private or external donations to the existing centers or to the school. The appropriated monies and all private and external donations for the school, including any remaining balances from prior fiscal years, shall be deposited in a separate account, shall be used only for the direct operation of the school and may not be used for indirect costs of the university. On or before October 1, 2024, the school shall submit a report to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate education committee and the house of representatives education committee and the director of the joint legislative budget committee that includes at least the following information for the school:

1. The total amount of funding received from all sources.

2. A description of faculty positions and courses offered.

3. The total undergraduate and graduate student enrollment.

4. Significant community events, initiatives or publications.

The chairpersons of the senate education committee and the house of representatives education committee may request the director of the school to appear before the committees to report on the school's annual achievements.

The legislature intends that appropriated monies allocated by the university for the school of civic and economic thought and leadership in fiscal year 2024-2025 be consistent with the amount appropriated in fiscal year 2022-2023, except that the university may allocate to the school the lump sum reduction of not more than 3.45 percent prescribed by this act.

Any unencumbered balances remaining in the university collections fund on June 30, 2024 and all collections received by the university during the fiscal year are appropriated for operating expenditures, capital outlay and fixed charges. Earnings on state lands and interest on the investment of the permanent land funds are appropriated in compliance with the enabling act and the Constitution of Arizona. No part of this appropriation may be spent for supplemental life insurance or supplemental retirement.

Sec. 98. NORTHERN ARIZONA UNIVERSITY

2024-25

FTE positions 2,480.4

Operating lump sum appropriation $253,296,400

Arizona financial aid trust 1,326,000

Biomedical research funding 3,000,000

NAU — Yuma 3,084,600

Teacher training 2,292,700

Total appropriation — Northern Arizona

university $262,999,700

Fund sources:

State general fund $127,680,100

University collections fund 135,319,600

The state general fund appropriation may not be used for alumni association funding.

The increased state general fund appropriation from Laws 2014, chapter 18 may not be used for medical marijuana research.

Other than scholarships awarded through the Arizona financial aid trust, the appropriated monies may not be used for scholarships or any student newspaper.

Of the amount appropriated to the northern Arizona university operating budget, $10,100,000 is onetime funding. On or before September 1, 2024, northern Arizona university shall provide a detailed expenditure plan to the joint legislative budget committee that includes a description of the intended purposes and the estimated costs of each expenditure.

The appropriated amount for the teacher training line item shall be distributed to the Arizona K-12 center for program implementation and mentor training for the Arizona mentor teacher program prescribed by the state board of education.

The biomedical research funding shall be distributed to a nonprofit medical research foundation in this state that collaborates with universities, hospitals and biotechnology and health research centers. A nonprofit foundation that receives monies shall submit an expenditure and performance report to northern Arizona university. The university shall transmit the report to the joint legislative budget committee and the director of the governor's office of strategic planning and budgeting on or before February 1, 2025. The report must include at least the following:

1. The type and amount of expenditures from all state sources of monies, including the amount leveraged for local, state, federal and private grants.

2. A description of each grant received as well as the percentage and locations of positions funded solely or partly by state monies and the nonprofit foundation's projects with which those positions are associated.

3. Performance measures, including:

(a) Outcomes that are specifically related to the use of state monies.

(b) Progress that has been made toward achieving each outcome, including activities, resources and other evidence of the progress.

(d) Publications, presentations and narratives related to each outcome and how the expenditures from all state sources of monies that the nonprofit foundation received have benefited this state.

Any appropriated monies allocated by the university for the economic policy institute may not supplant any existing state funding or private or external donations to the institute or to the university. The appropriated monies and all private and external donations for the institute, including any remaining balances from prior fiscal years, shall be deposited in a separate account, shall be used only for the direct operation of the institute and may not be used for indirect costs of the university. On or before October 1, 2024, the institute shall submit to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate education committee and the house of representatives education committee and the director of the joint legislative budget committee a report that includes at least the following information for the institute:

1. The total amount of funding received from all sources.

2. A description of the faculty positions and courses offered.

3. The total undergraduate and graduate student participation.

4. Significant community events, initiatives or publications.

The chairpersons of the senate education committee and the house of representatives education committee may request the director of the institute to appear before the committees to report on the institute's annual achievements.

The legislature intends that appropriated monies allocated by the university for the economic policy institute in fiscal year 2024-2025 be consistent with the amount appropriated in fiscal year 2022-2023, except that the university may allocate to the institute the lump sum reduction of not more than 3.45 percent prescribed by this act.

Sec. 99. UNIVERSITY OF ARIZONA

2024-25

Main campus

FTE positions 6,089.0

Operating lump sum appropriation $511,507,700

Agriculture 38,255,700

Arizona cooperative extension 14,890,900

Arizona financial aid trust 2,729,400

Arizona geological survey 1,148,500

College of veterinary medicine 23,528,400

Kazakhstan studies program 250,000

Mining, mineral and natural

resources educational museum 430,300

Natural resource users law and

policy center 1,522,400

School of mining 4,084,000

Sierra Vista campus 4,191,400

Veterinary diagnostic laboratory 2,500,000

Total — main campus $605,038,700

Fund sources:

State general fund $257,806,000

University collections fund 347,232,700

Health sciences center

FTE positions 1,154.9

Operating lump sum appropriation $100,595,000

Clinical rural rotation 353,600

Clinical teaching support 8,587,000

Liver research institute 440,400

Phoenix medical campus 34,798,200

Telemedicine network 1,670,000

Total — health sciences center $146,444,200

Fund sources:

State general fund $ 76,897,700

University collections fund 69,546,500

Total appropriation - university of

Arizona $751,482,900

Fund sources:

State general fund $334,703,700

University collections fund 416,779,200

The state general fund appropriation may not be used for alumni association funding.

The increased state general fund appropriation from Laws 2014, chapter 18 may not be used for medical marijuana research.

Other than scholarships awarded through the Arizona financial aid trust, the appropriated monies may not be used for scholarships or any student newspaper.

Of the amount appropriated to the university of Arizona operating budget, $14,700,000 is onetime funding. On or before September 1, 2024, the university of Arizona shall provide a detailed expenditure plan to the joint legislative budget committee that includes a description of the intended purposes and the estimated costs of each expenditure.

The university of Arizona may not use monies appropriated for the Arizona geological survey line item for any other purpose and may not transfer the monies appropriated for the Arizona geological survey to the operating budget or any other line item.

The legislature intends that $8,000,000 of the amount appropriated to the health sciences center operating lump sum appropriation line item be used to expand the college of medicine Phoenix campus and to develop and administer a primary care physician scholarship program at the college of medicine Phoenix campus and the college of medicine Tucson campus. The legislature intends that the $8,000,000 not be annualized in future years.

Any appropriated monies allocated by the university for the center for the philosophy of freedom may not supplant any existing state funding or private or external donations to the center or the philosophy department of the university of Arizona. The appropriated monies and all private and external donations for the center, including any remaining balances from prior fiscal years, shall be deposited in a separate account, shall be used only for the direct operation of the center and may not be used for indirect costs of the university. On or before October 1, 2024, the center shall submit a report to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate education committee and the house of representatives education committee and the director of the joint legislative budget committee that includes at least the following information for the center:

1. The total amount of funding received from all sources.

2. A description of faculty positions and courses offered.

3. The total undergraduate and graduate student participation.

4. Significant community events, initiatives or publications.

The chairpersons of the senate education committee and the house of representatives education committee may request the director of the center to appear before the committees to report on the center's annual achievements.

The legislature intends that appropriated monies allocated by the university for the center for the philosophy of freedom in fiscal year 2024-2025 be consistent with the amount appropriated in fiscal year 2022-2023, except that the university may allocate to the center the lump sum reduction of not more than 3.45 percent prescribed by this act.

The amount appropriated to the college of veterinary medicine line item shall be distributed to the college of veterinary medicine to increase the number of students that are residents of this state. Before spending these monies, the university of Arizona shall report to the joint legislative budget committee all of the following information for the college of veterinary medicine:

1. The current number of students who are residents of this state.

2. The current number of students who are not residents of this state.

The university of Arizona shall use monies appropriated for the Kazakhstan studies program to facilitate academic exchanges between university students and academic institutions in Kazakhstan.

The amount appropriated for the natural resource users law and policy center line item shall be used by the natural resource users law and policy center within the Arizona cooperative extension. Of the amount appropriated, at least $500,000 shall be used to assist claimants in the general stream adjudication of water rights pursuant to section 15-1647, Arizona Revised Statutes.

One hundred percent of the land earnings and interest from the school of mines land fund shall be distributed to the university of Arizona school of mining and mineral resources in compliance with the enabling act and the Constitution of Arizona.

Sec. 100. DEPARTMENT OF VETERANS' SERVICES

2024-25

FTE positions 792.3

Operating lump sum appropriation $ 3,136,600

Arizona state veterans' homes 60,519,600

Arizona state veterans' cemeteries 960,000

Rural tribal nations veteran

benefit counseling 2,194,400

Veterans' benefit counseling 3,676,600

Veterans' support services 1,226,100

Veterans' trauma treatment

services 450,000

Total appropriation — department of

veterans' services $ 72,163,300

Fund sources:

State general fund $ 11,643,700

State home for veterans' trust

fund 60,519,600

Monies appropriated for the rural tribal nations veteran benefit counseling line item shall be used for veterans' services officers to provide services in rural tribal nations in this state that have communities that are located one hundred miles or more from the nearest United States department of veterans' affairs service center.

The amount appropriated for veterans' support services line item shall be distributed to a nonprofit veterans' services organization that provides support services among this state's military and veteran population. The department may spend up to $76,500 of this appropriation to hire a program specialist to liaise between the department and the selected nonprofit organization. Before the expenditure of the monies, the department shall submit an expenditure report to the joint legislative budget committee that includes the status of non-state matching grant monies.

Monies appropriated for the veterans' trauma treatment services line item shall be used to provide grants to contractors as defined in section 36-2901, Arizona Revised Statutes, that provide trauma treatment services training to any of the following health professionals licensed pursuant to title 32, Arizona Revised Statutes:

1. Physicians.

2. Registered nurse practitioners.

3. Physician assistants.

4. Psychologists.

5. Behavioral health professionals who are either licensed for individual practice or supervised by a psychologist, registered nurse practitioner or behavioral health professional licensed pursuant to title 32, Arizona Revised Statutes, for independent practice.

Sec. 101. ARIZONA STATE VETERINARY MEDICAL EXAMINING BOARD

2024-25

FTE positions 7.0

Lump sum appropriation $ 785,100

Fund sources:

Veterinary medical examining

board fund $ 785,100

Sec. 102. DEPARTMENT OF WATER RESOURCES

2024-25

FTE positions 204.0

Operating lump sum appropriation $ 15,209,300

Adjudication support 1,889,400

Arizona water protection fund

deposit 750,000

Assured and adequate water supply

administration 2,501,500

Rural water studies 1,283,900

Conservation and drought program 427,700

Automated groundwater monitoring 416,600

Colorado River legal expenses 500,000*

Water supply and demand assessment 3,500,000

Total appropriation — department of water

resources $ 26,478,400

Fund sources:

State general fund $ 24,459,400

Water resources fund 1,726,500

Assured and adequate water

supply administration fund 292,500

The department of water resources may not transfer any monies from the Colorado River legal expenses line item without prior review by the joint legislative budget committee.

The amount appropriated for the statewide water resources planning line item in fiscal year 2023-2024 pursuant to Laws 2023, chapter 133, section 97 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to the lapsing of appropriations.

Fiscal Year 2023-2024 Appropriation Adjustments

Sec. 103. Supplemental appropriation; department of administration; risk management revolving fund; intent; review; fiscal year 2023-2024

A. In addition to any other appropriations made in fiscal year 2023-2024, the sum of $9,493,000 is appropriated from the risk management revolving fund established by section 41-622, Arizona Revised Statutes, in fiscal year 2023-2024 to the department of administration for the following purposes:

1. To pay disallowed costs relating to excess retained earnings.

2. To pay disallowed costs relating to the statewide information technology charges.

3. For fund transfers in fiscal year 2022-2023.

4. To pay interest owed from prior-year disallowed costs.

B. The legislature intends that the department of administration not enter into any agreements to pay for any federal reimbursements related to excess balances in the special employee health insurance trust fund established by section 38-654, Arizona Revised Statutes, unless the proposed agreements have been reviewed by the joint legislative budget committee.

Sec. 104. Supplemental appropriation; Arizona health care cost containment system administration; fiscal year 2023-2024

In addition to any other appropriations made in fiscal year 2023-2024, the sum of $7,527,500 is appropriated from the children's health insurance program fund established by section 36-2995, Arizona Revised Statutes, in fiscal year 2023-2024 to the Arizona health care cost containment system administration for adjustments in formula requirements.

Sec. 105. Appropriation reduction; Arizona health care cost containment system administration; fiscal year 2023-2024

In addition to any other appropriations made in fiscal year 2023-2024, the sum of $(39,944,900) is reduced from appropriations made from the state general fund in fiscal year 2023-2024 to the Arizona health care cost containment system administration for adjustments in formula requirements.

Sec. 106. Department of economic security; developmental disabilities; savings; prohibition; fiscal year 2023-2024

The department of economic security may not transfer any excess appropriation from the DDD premium tax payment, case management — medicaid, home and community based services — medicaid, institutional services — medicaid, physical and behavioral health services — medicaid, medicare clawback payments or targeted case management – medicaid line items to any line item outside of the developmental disabilities section in fiscal year 2023-2024.

Sec. 107. Supplemental appropriation; governor's office of strategic planning and budgeting; fiscal year 2023-2024

In addition to any other appropriations made in fiscal year 2023-2024, the sum of $204,600 is appropriated from the state general fund in fiscal year 2023-2024 to the governor's office of strategic planning and budgeting for a retirement cost technical adjustment.

Sec. 108. Supplemental appropriation; joint legislative budget committee; fiscal year 2023-2024

In addition to any other appropriations made in fiscal year 2023-2024, the sum of $204,600 is appropriated from the state general fund in fiscal year 2023-2024 to the joint legislative budget committee for a retirement cost technical adjustment.

Sec. 109. Supplemental appropriation; superior court; fiscal year 2023-2024

In addition to any other appropriations made in fiscal year 2023-2024, the sum of $813,700 is appropriated from the criminal justice enhancement fund established by section 41-2401, Arizona Revised Statutes, in fiscal year 2023-2024 to the superior court for judges' compensation.

Sec. 110. Appropriation reduction; state land department; fiscal year 2023-2024

In addition to any other appropriations made in fiscal year 2023-2024, the sum of $(206,700) is reduced from appropriations made from the state general fund in fiscal year 2023-2024 to the state land department for central Arizona project user fees.

Sec. 111. Supplemental appropriation; board of respiratory care examiners; fiscal year 2023-2024

In addition to any other appropriations made in fiscal year 2023-2024, the sum of $15,100 is appropriated from the board of respiratory care examiners fund established by section 32-3505, Arizona Revised Statutes, in fiscal year 2023-2024 to the board of respiratory care examiners to pay outstanding costs of services provided by the department of administration-central services bureau.

Sec. 112. Supplemental appropriation; department of state - secretary of state; fiscal year 2023-2024

In addition to any other appropriations made in fiscal year 2023-2024, the sum of $100,000 is appropriated from the state general fund in fiscal year 2023-2024 to the department of state – secretary of state for the costs of conducting logic and accuracy testing for the 2024 primary election.

Sec. 113. Supplemental appropriation; water infrastructure finance authority of Arizona; fiscal year 2023-2024

A. In addition to any other appropriations made in fiscal year 2023-2024, the sum of $11,000,000 is appropriated from the state general fund in fiscal year 2023-2024 to the water infrastructure finance authority of Arizona for a brackish groundwater recovery pilot program.

B. The appropriation made in subsection A of this section is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

C. The water infrastructure finance authority of Arizona shall use the monies in the brackish groundwater recovery pilot program to provide matching dollars for the development and construction of qualifying inland brackish groundwater recovery and desalination pilot projects within this state. Not more than $1 shall be awarded per $3 of total capital expenditures per qualifying project. Not more than one qualifying project shall be awarded monies per request for proposals. Within one hundred twenty days after the effective date of this section, the water infrastructure finance authority of Arizona shall issue a request for proposals to develop and construct a qualifying inland brackish groundwater recovery and desalination pilot project within this state. Within one year after the effective date of this section, the water infrastructure finance authority of Arizona shall evaluate proposals submitted in response to the request for proposals and select a proposal for the issuance of matching dollars. The water infrastructure finance authority of Arizona shall make the grant of monies issued pursuant to this section contingent on the execution of proposed projects and expenditure of capital costs within a certain time frame following the issuance of the awarded monies, as determined by the water infrastructure finance authority of Arizona.

D. Within ninety days after the effective date of this section, the water infrastructure finance authority of Arizona shall, in consultation with the department of water resources, develop and establish:

1. Minimum criteria that projects must meet to qualify for matching dollars pursuant to this section.

2. Minimum information that qualifying bidders must include with a proposed project to be considered for evaluation, including all of the following:

(a) Design and engineering studies or reports.

(b) Site location, right-of-way and land ownership information.

(d) Withdrawal permit and groundwater rights and access information.

(e) Method of brackish groundwater recovery, treatment and desalination.

(f) Method of inland desalination brine disposal.

(g) Total volume of brackish groundwater expected to be desalinated.

(h) Total project capacity and expected output.

(i) Proximity to likely off-takers and proposed method of transportation or delivery of treated brackish groundwater to such off-takers.

(j) Total estimated capital cost for the project.

3. Minimum criteria that the water infrastructure finance authority of Arizona will use to evaluate the feasibility and viability of qualifying projects submitted in response to a request for proposals issued pursuant to this section and to select a winning project, including:

(a) The cost-effectiveness of the project.

(b) The reliability and long-term security of the water supply to be developed through the project.

(d) The impacts to the regional aquifer and local water users from the project's brine disposal.

(e) Comments from water users, local residents and affected jurisdictions.

E. Within ninety days after the effective date of this section, the water infrastructure finance authority of Arizona shall develop and establish:

1. Minimum criteria that bidders must satisfy to qualify for participation in and to submit proposals in response to requests for proposals issued pursuant to this section.

2. Minimum criteria that the water infrastructure finance authority of Arizona will use to evaluate the technical, financial and managerial capabilities of qualifying bidders that submit proposals in response to a request for proposals issued pursuant to this section.

F. Of the monies appropriated pursuant to subsection A of this section to the brackish groundwater recovery pilot program, not more than ten percent of the monies may be used for staffing and administrative costs.

Sec. 114. Supplemental appropriation; fund balance transfer; department of water resources; fiscal year 2023-2024

A. The sum of $2,500,000 is transferred from the water resources fund established by section 45-117, Arizona Revised Statutes, in fiscal year 2023-2024 for deposit in the department of water resources subaccount in the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, to develop, modernize and consolidate the department's applications.

B. The sum of $2,500,000 is appropriated from the department of water resources subaccount in the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, in fiscal year 2023-2024 to the department of administration to develop, modernize and consolidate the department of water resources' applications.

Sec. 115. Supplemental appropriation; fund balance transfer; department of administration; fiscal year 2023-2024

The sum of $3,100,000 is transferred from the personnel division fund established pursuant to section 41-750, Arizona Revised Statutes, in fiscal year 2023-2024 for deposit in the human resources information system subaccount in the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, to replace the human resources information system.

Sec. 116. Appropriation reductions; state general fund; fiscal year 2023-2024

Notwithstanding any other law, the following amounts are reduced from monies appropriated from the state general fund in fiscal year 2023-2024 to the following state agencies for operating lump sum appropriations and line items:

1. Department of administration

Employee compensation study $ (2,200,000)

2. Arizona department of agriculture

Operating lump sum – for expanded

information technology support $ (300,000)

3. Arizona commerce authority

Rural broadband accelerated match fund deposit $ (23,600,000)

4. Superintendent of public instruction

Art consumables $ (2,500,000)

Dual enrollment student development

fund deposit $ (15,000,000)

Dual enrollment student development

fund deposit $ (500,000)

Broadband expansion fund deposit $ (2,500,000)

5. Office of tourism

Operating lump sum – for culinary tourism

workforce development $ (250,000)

Sec. 117. Independent redistricting commission; reversion; fiscal year 2023-2024

All monies remaining unexpended and unencumbered on June 30, 2024 from the appropriation made by Laws 2021, chapter 408, section 48 revert to the state general fund.

Sec. 118. Appropriation; rodeo; exemption from lapsing; reversion; fiscal year 2023-2024

A. The amount appropriated from the state general fund to distribute to a nonprofit volunteer organization that operates a rodeo at the Yavapai county fairgrounds in fiscal year 2023-2024 pursuant to Laws 2023, chapter 133, section 118, paragraph 2 is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

B. If a court of competent jurisdiction rules that the monies appropriated pursuant to Laws 2023, chapter 133, section 118, paragraph 2 may not be distributed to a nonprofit volunteer organization that operates a rodeo at the Yavapai county fairgrounds and the judgment of that court becomes final and definitive, the attorney general shall notify in writing the director of the Arizona legislative council of that fact and the monies revert to the state general fund.

Sec. 119. Appropriations; exemption from lapsing; fiscal year 2023-2024

Notwithstanding any other law, the following amounts appropriated from the state general fund in fiscal year 2023-2024 by Laws 2023, chapter 133 to the following state agencies are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations:

1. Department of administration

Fire incident management fund deposit $ 12,200,000

2. Office of economic opportunity

Microbusiness loan fund deposit $ 5,000,000

3. Superintendent of public instruction

Arizona civics education and leadership

development program $ 300,000

Early education and career exploration program $ 5,000,000

4. Department of health services

Collaborative care uptake fund deposit $ 1,000,000

5. Arizona department of homeland security

Antihuman trafficking grant fund deposit $ 10,000,000

Arizona state nonprofit security grant

program fund deposit $ 5,000,000

6. Arizona department of housing

Homeless shelter and services fund deposit $ 40,000,000

7. Department of public safety

Fentanyl prosecution, diversion and

testing fund deposit $ 3,000,000

8. Arizona board of regents

Spouses and dependents of law enforcement officers

tuition scholarship fund deposit $ 2,000,000

Fiscal Year 2024-2025 Appropriations

Sec. 120. Appropriations; department of administration; counties; allocations; report; fiscal year 2024-2025

A. The sum of $7,150,650 is appropriated from the state general fund in fiscal year 2024-2025 to the department of administration for distribution to counties to maintain essential county services. The department shall allocate the appropriation equally among all counties with a population of less than nine hundred thousand persons according to the 2020 United States decennial census.

B. The sum of $500,000 is appropriated from the state general fund in fiscal year 2024-2025 to the department of administration for distribution to Graham county to maintain essential county services.

C. The sum of $3,000,000 is appropriated from the state general fund in fiscal year 2024-2025 to the department of administration for distribution to counties to supplement the normal cost plus an amount to amortize the unfunded accrued liability pursuant to section 38-810, subsection C, Arizona Revised Statutes. The department shall allocate the appropriation equally among all counties with a population of less than three hundred thousand persons according to the 2020 United States decennial census. The counties may use these monies only for required employer contributions to the elected officials' retirement plan.

Sec. 121. Automation projects fund; appropriations; quarterly reports; exemption; fiscal year 2024-2025

A. The sum of $3,396,000 is appropriated from the medicaid enterprise system modernization subaccount in the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, in fiscal year 2024-2025 to the department of administration to replace the medicaid enterprise system mainframe.

B. The sum of $5,521,200 is appropriated from the human resources information system subaccount in the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, in fiscal year 2024-2025 to the department of administration for the replacement of the human resources information system.

C. The sum of $1,320,000 is appropriated from the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, in fiscal year 2024-2025 to the department of administration for the replacement of the human resources information system.

D. The sum of $19,456,800 is appropriated from the department of revenue subaccount in the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, in fiscal year 2024-2025 to the department of administration to implement the department of revenue's integrated tax system modernization project. The monies appropriated in this subsection shall be spent for an integrated tax system modernization project that meets the following minimum specifications:

4. Makes individual and corporate income tax data available for querying, modeling and reporting within twenty-four months following the end of a tax year.

Quarterly Reports

E. Within thirty days after the last day of each calendar quarter, the department of administration shall submit to the joint legislative budget committee a quarterly report on implementing projects approved by the information technology authorization committee established by section 18-121, Arizona Revised Statutes, including the projects' expenditures to date, deliverables, timeline for completion and current status.

Nonlapsing

F. The amounts appropriated pursuant to this section from the automation projects fund established by section 41-714, Arizona Revised Statutes, in fiscal year 2024-2025 are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2026.

G. Notwithstanding Laws 2022, chapter 313, section 107, $2,114,300 of the amount appropriated from the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, in fiscal year 2022-2023 to the department of administration by Laws 2022, chapter 313, section 107 to further develop the business one stop portal is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2025. This amount may be used only for maintenance and operations of the business one stop portal.

H. Notwithstanding Laws 2022, chapter 313, section 107, the sum of $2,000,000 appropriated from the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, in fiscal year 2022-2023 to the Arizona department of agriculture by Laws 2022, chapter 313, section 107 for cloud migration is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2026.

I. Notwithstanding Laws 2023, chapter 133, section 113, the sum of $2,500,000 appropriated from the judiciary-supreme court subaccount in the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, in fiscal year 2023-2024 to the Arizona supreme court by Laws 2023, chapter 133, section 113 for a statewide community supervision electronic monitoring system is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until June 30, 2027.

Sec. 122. Department of economic security; loans; reimbursement; prohibition; fiscal year 2024-2025

On or after April 1, 2025, the department of economic security may use up to $25,000,000 from the budget stabilization fund established by section 35-144, Arizona Revised Statutes, for the purpose of providing funding for reimbursement grants. Before using the monies from the budget stabilization fund, the department shall notify the director of the joint legislative budget committee and the director of the governor's office of strategic planning and budgeting. This appropriation must be fully reimbursed on or before September 1, 2025 and must be reimbursed in full as part of the closing process for fiscal year 2024-2025. The department shall notify the joint legislative budget committee of the reimbursement on or before September 1, 2025. The appropriation may not be used for additional programmatic expenditures.

Sec. 123. Lump sum reductions; fiscal year 2024-2025

A. In addition to any other appropriations made in fiscal year 2024-2025, the following state general fund amounts are reduced from lump sum appropriations for the following budget units in fiscal year 2024-2025:

1. Department of administration $ (300,000)

2. Department of administration, division of

school facilities $ (57,100)

3. Office of administrative hearings $ (34,200)

4. Arizona department of agriculture $ (671,500)

5. Arizona health care cost containment system $ (1,242,000)

6. Attorney general – department of law $ (839,100)

7. State board for charter schools $ (97,800)

8. Corporation commission $ (27,600)

9. Arizona state schools for the deaf and the blind $ (897,000)

10. Office of economic opportunity $ (21,000)

11. Department of economic security $ (3,026,200)

12. State board of education $ (111,200)

13. Superintendent of public instruction $ (469,700)

14. State board of equalization $ (30,000)

15. Arizona department of forestry and fire

management $ (248,600)

16. Office of the governor $ (368,100)

17. Governor's office of strategic planning and

budgeting $ (101,400)

18. Department of health services $ (719,200)

19. Arizona historical society $ (83,500)

20. Prescott historical society $ (35,000)

21. Department of insurance and financial

institutions $ (222,500)

22. Arizona judiciary – supreme court $ (386,300)

23. Arizona judiciary – court of appeals $ (508,200)

24. Arizona judiciary – superior court $ (180,100)

25. Department of juvenile corrections $ (1,098,100)

26. State land department $ (148,000)

27. Legislature – house of representatives $ (664,100)

28. Legislature – joint legislative budget

committee $ (107,800)

29. Legislature – legislative council $ (328,100)

30. Legislature – ombudsman-citizens aide office $ (53,900)

31. Legislature – senate $ (587,300)

32. Arizona navigable stream adjudication

commission $ (6,000)

33. State real estate department $ (110,400)

34. Department of revenue $ (1,748,200)

35. Department of state – secretary of state $ (463,600)

36. State board of tax appeals $ (13,000)

37. Office of tourism $ (75,800)

38. Governor's office on tribal relations $ (2,400)

39. Arizona board of regents $ (109,200)

40. Arizona state university $(10,995,800)

41. Northern Arizona university $ (4,070,200)

42. University of Arizona – main campus $ (6,562,200)

43. University of Arizona – health sciences center $ (1,469,300)

44. Department of veterans' services $ (108,200)

45. Department of water resources $ (21,500)

B. The universities under the jurisdiction of the Arizona board of regents may not reduce monies allocated from operating lump sum appropriations to the Arizona state university school of civic and economic thought and leadership, the northern Arizona university economic policy institute and the university of Arizona center for the philosophy of freedom by more than 3.45 percent of the total amount allocated to the school, institute or center.

Sec. 124. Phoenix convention center; allocation; fiscal year 2024-2025

Pursuant to section 9-602, Arizona Revised Statutes, $25,998,700 of state general fund revenue is allocated in fiscal year 2024-2025 to the Arizona convention center development fund established by section 9-601, Arizona Revised Statutes.

Sec. 125. Rio Nuevo multipurpose facility district; estimated distribution; fiscal year 2024-2025

Pursuant to section 42-5031, Arizona Revised Statutes, a portion of the state transaction privilege tax revenues will be distributed to a multipurpose facility district. The Rio Nuevo multipurpose facility district is estimated to receive $17,000,000 in fiscal year 2024-2025. The actual amount of the distribution will be made pursuant to section 42-5031, Arizona Revised Statutes.

Fund Balance Transfers

Sec. 126. Fund balance transfers; fiscal year 2023-2024

Notwithstanding any other law, on or before June 30, 2024, the following amounts from the following fund sources are transferred to the state general fund for the purposes of providing adequate support and maintenance for agencies of this state:

1. Department of administration

Certificate of participation fund $ 2,550,000

State employee travel reduction fund $ 900,000

State web portal fund $ 4,000,000

Capitol mall consolidation fund $ 700,000

Fire incident management fund $ 6,100,000

Construction insurance fund $ 8,100,000

Cyber risk insurance fund $ 11,200,000

Risk management revolving fund $ 70,000,000

Automation projects fund – department

of administration subaccount $ 7,000,000

The amount transferred from the automation project fund – department of administration subaccount to the state general fund in fiscal year 2023-2024 reflects unspent monies for business one stop portal development.

Automation projects fund – department

of revenue subaccount $ 1,300,000

2. Arizona health care cost containment system

Prescription drug rebate fund - state $ 40,000,000

3. Board of athletic training

Athletic training fund $ 250,000

4. Attorney general–department of law

Anti-racketeering revolving fund–operations $ 2,600,000

Anti-racketeering revolving fund-

pass-through $ 10,000,000

Collection enforcement revolving fund-

operating $ 212,500

5. Barbering and cosmetology board

Barbering and cosmetology fund $ 12,100,000

6. Board of behavioral health examiners

Board of behavioral health examiners fund $ 4,200,000

7. State board of chiropractic examiners

Board of chiropractic examiners fund $ 500,000

8. Arizona commerce authority

Arizona competes fund $ 55,700,000

9. Corporation commission

Utility regulation revolving fund $ 2,125,000

Securities regulatory and enforcement

fund $ 25,000,000

10. State department of corrections

Corrections fund $ 8,000,000

Alcohol abuse treatment fund $ 2,000,000

Transition program fund $ 4,200,000

Community corrections enhancement fund $ 117,500

11. Arizona criminal justice commission

Criminal justice enhancement fund $ 800,000

Fingerprint clearance card fund $ 700,000

12. State board of dental examiners

Dental board fund $ 2,000,000

13. Office of economic opportunity

Office of economic opportunity

operations fund $ 1,000,000

14. Department of economic security

Family caregiver grant program fund $ 700,000

Special administration fund $ 4,000,000

Economic security capital investments fund $ 500,000

Long-term care system fund $ 9,314,000

15. Department of education

Adult workforce diploma program fund $ 3,000,000

Community college adult education

workforce development program fund $ 8,900,000

16. Department of environmental quality

Air quality fund $ 2,300,000

Underground storage tank revolving fund $ 20,000,000

Emissions inspection fund $ 5,000,000

Hazardous waste management fund $ 900,000

Emergency response fund $ 500,000

17. Arizona exposition and state fair board

Arizona exposition and state fair fund $ 5,000,000

18. Board of fingerprinting

Board of fingerprinting fund $ 1,200,000

19. Department of health services

Disease control research fund $ 1,300,000

Prescription drug rebate fund $ 1,000,000

Health services lottery monies fund $ 3,700,000

20. Industrial commission of Arizona

Administrative fund $ 2,400,000

Special fund $ 900,000

21. Department of insurance and financial

institutions

Financial services fund $ 18,400,000

Insurance examiners' revolving fund $ 500,000

Automobile theft authority fund $ 8,800,000

Captive insurance regulatory and

supervision fund $ 300,000

Financial surveillance fund $ 400,000

Department receivership revolving fund $ 800,000

22. Department of juvenile corrections

Criminal justice enhancement fund $ 900,000

Indirect cost recovery fund $ 200,000

23. State land department

Risk management fund $ 343,000

IGA and ISA fund $ 24,000

Trust land management fund $ 34,000,000

24. Department of liquor licenses and control

Liquor licenses fund $ 400,000

License fees – audit – enforcement

surcharges fund - multiple complaints $ 170,000

25. Board of massage therapy

Board of massage therapy fund $ 600,000

26. Arizona medical board

Arizona medical board fund $ 9,300,000

27. State mine inspector

Aggregate mining reclamation fund $ 38,500

28. Naturopathic physicians medical board

Naturopathic physicians medical board fund $ 1,700,000

29. Arizona state board of nursing

Board of nursing fund $ 9,400,000

30. Board of occupational therapy examiners

Occupational therapy fund $ 900,000

31. State board of optometry

Board of optometry fund $ 387,100

32. Arizona board of osteopathic examiners in

medicine and surgery

Arizona board of osteopathic examiners

in medicine and surgery fund $ 2,800,000

33. Arizona state board of pharmacy

Arizona state board of pharmacy fund $ 6,300,000

34. Board of physical therapy

Board of physical therapy fund $ 680,000

35. State board of psychologist examiners

Board of psychologist examiners fund $ 1,800,000

36. Department of public safety

Fingerprint clearance card fund $ 3,900,000

Department of public safety licensing

fund $ 85,000

Gang and immigration team enforcement

Mission border security and law

Enforcement subaccount $ 1,000,000

Records processing fund $ 200,000

Public safety equipment fund $ 500,000

37. Residential utility consumer office

Residential utility consumer office

revolving fund $ 425,000

38. State board of technical registration

Technical registration fund $ 5,600,000

39. Department of transportation

Economic strength project fund $ 600,000

Highway damage recovery account $ 1,000,000

State aviation fund $ 15,000,000

State highway fund $ 26,000,000

The amount transferred from the state highway fund established by section 28-6991, Arizona Revised Statutes, to the state general fund in fiscal year 2023-2024 reflects interest income earned from investment of monies in the state highway fund from a portion of revenues derived from the tax levied by title 42, chapter 5, articles 1 and 5, Arizona Revised Statutes, that were transferred to the state highway fund by Laws 2022, chapter 321, section 20, subsection A, paragraph 2.

Abandoned vehicle administration fund $ 400,000

Shared location and advertising agreements

expense fund $ 75,100

Motor vehicle dealer enforcement fund $ 300,000

Highway expansion and extension loan

program fund $ 3,900

Arizona highways magazine fund $ 500,000

39. State treasurer

State treasurer's operating fund $ 900,000

Arizona public school credit

enhancement fund $ 3,000,000

40. Arizona state veterinary medical examining board

Veterinary medical examining board fund $ 1,700,000

41. Water infrastructure finance authority of Arizona

Water supply development revolving fund $ 59,700,000

Of the amount transferred from the water supply development revolving fund established by section 49-1271, Arizona Revised Statutes, to the state general fund in fiscal year 2023-2024, $8,100,000 reflects interest income earned from investment of monies in the water supply development revolving fund.

Long-term water augmentation fund $ 97,300,000

Of the amount transferred from the long-term water augmentation fund established by section 49-1302, Arizona Revised Statutes, to the state general fund in fiscal year 2023-2024, $19,300,000 reflects interest income earned from investment of monies in the long-term water augmentation fund.

42. Department of water resources

Temporary groundwater and irrigation

efficiency projects fund $ 600,000

Assured and adequate water supply

administration fund $ 200,000

Arizona water protection fund $ 1,000,000

Sec. 127. Fund balance transfer; state highway fund; fiscal year 2024-2025

A. Notwithstanding any other law, on or before June 30, 2025, $18,700,000 is transferred from state highway fund established by section 28-6991, Arizona Revised Statutes, to the state general fund in fiscal year 2024-2025 for the purpose of providing adequate support and maintenance for agencies of this state.

B. The amount transferred from the state highway fund in subsection A of this section reflects interest income earned from investment of monies in the state highway fund from a portion of revenues derived from the tax levied by title 42, chapter 5, articles 1 and 5, Arizona Revised Statutes, that were transferred to the state highway fund by Laws 2022, chapter 321, section 20, subsection A, paragraph 2.

Sec. 128. Fund balance transfer; state highway fund; vehicle license tax; fiscal year 2024-2025

Notwithstanding any other law, $3,000,000 received in fiscal year 2024-2025 pursuant to title 28, chapter 16, article 3, Arizona Revised Statutes, relating to vehicle license tax, for distribution to the state highway fund pursuant to section 28-6538, subsection A, paragraph 1, Arizona Revised Statutes, shall be deposited in the state general fund. The deposit may be made in even monthly installments.

Sec. 129. Fund balance transfer; air quality fund; fiscal year 2024-2025

Notwithstanding any other law, on or before June 30, 2025, $7,200,000 is transferred from the air quality fund established by section 49-551, Arizona Revised Statutes, to the water quality fee fund established by section 49-210 in fiscal year 2024-2025.

Sec. 130. Fund balance transfer; Arizona correctional industries revolving fund; fiscal year 2024-2025

Notwithstanding any other law, on or before June 30, 2025, $11,491,800 is transferred from the Arizona correctional industries revolving fund established pursuant to section 41-1624, Arizona Revised Statutes, to the state general fund in fiscal year 2024-2025.

Sec. 131. Fund balance transfers; automation projects fund; fiscal year 2024-2025

A. The sum of $3,396,000 is transferred from the state general fund in fiscal year 2024-2025 for deposit in the medicaid enterprise system modernization subaccount in the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, to replace the medicaid enterprise system mainframe.

B. The sum of $2,421,200 is transferred from the personnel division fund established pursuant to section 41-750, Arizona Revised Statutes, in fiscal year 2024-2025 for deposit in the human resources information system subaccount in the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, for the replacement of the human resources information system.

C. The following amounts are transferred from the following funds in fiscal year 2024-2025 for deposit in the department of revenue subaccount in the automation projects fund established pursuant to section 41-714, Arizona Revised Statutes, to implement the integrated tax system modernization project:

1. $11,847,300 from the state general fund.

2. $7,609,500 from the department of revenue integrated tax system project fund established by section 42-5041, Arizona Revised Statutes.

D. The transfers into the automation projects fund established by section 41-714, Arizona Revised Statutes, as outlined in this section are not appropriations out of the automation project fund. Only direct appropriations out of the automation projects fund are appropriations.

Payment Deferrals

Sec. 132. Reduction in school district state aid apportionment in fiscal year 2024-2025; appropriation in fiscal year 2025-2026

A. In addition to any other appropriation reductions made in fiscal year 2024-2025, the department of education shall defer until after June 30, 2025 but not later than July 12, 2025 $800,727,700 of the basic state aid and additional state aid entitlement that otherwise would be apportioned to school districts during fiscal year 2024-2025 pursuant to section 15-973, Arizona Revised Statutes. The funding deferral required by this subsection does not apply to charter schools or to school districts with a student count of less than four thousand pupils. The department of education shall make the deferral by reducing the apportionment of state aid for each month in the fiscal year by the same amount.

B. In addition to any other appropriations made in fiscal year 2025-2026, the sum of $800,727,700 is appropriated from the state general fund in fiscal year 2025-2026 to the department of education and the superintendent of public instruction for basic state aid and additional state aid entitlement for fiscal year 2025-2026. This appropriation shall be disbursed after June 30, 2025 but not later than July 12, 2025 to the several counties for the school districts in each county in amounts equal to the reductions in apportionment of basic state aid and additional state aid that are required pursuant to subsection A of this section for fiscal year 2024-2025.

C. School districts shall include in the revenue estimates they use for computing their tax rates for fiscal year 2024-2025 the monies they will receive pursuant to subsection B of this section.

Statewide Adjustments

Sec. 133. Appropriations; operating adjustments

2024-25

1. Employer health insurance

contribution reduction $ (94,363,000)

Fund sources:

State general fund $ (72,766,200)

Other funds (21,596,800)

2. Employer health insurance

contribution increase $ 200,000,000

Fund sources:

State general fund $ 140,000,000

Other funds 60,000,000

3. State fleet rate reduction $ (13,648,900)

Fund sources:

State general fund $ (8,195,100)

Other funds (5,453,800)

4. State fleet rate increase $ 4,924,000

Fund sources:

State general fund $ 3,299,000

Other funds 1,625,000

5. Human resources information

system charge reduction $ (12,654,000)

Fund sources:

State general fund $ (8,009,300)

Other funds (4,644,700)

6. Arizona financial information

system adjustment $ (1,673,700)

Fund sources:

State general fund $ (834,000)

Other funds (839,700)

7. Agency retirement adjustment $ 7,680,000

Fund sources:

State general fund $ 7,180,000

Other funds 500,000

8. Agency rent adjustment $ 160,000

Fund sources:

Other funds $ 160,000

Employer health insurance contribution reduction

The amount appropriated is for a onetime employer contribution rate reduction for employee health insurance in fiscal year 2024-2025. The joint legislative budget committee staff, in consultation with the governor's office of strategic planning and budgeting staff, shall determine and the department of administration shall allocate to each agency or department an amount for the health insurance contribution adjustment. The joint legislative budget committee staff shall also determine and the department of administration shall allocate adjustments, as necessary, in expenditure authority to implement the reduction in employer health insurance contribution rates. The joint legislative budget committee staff shall use the overall allocation of state general fund and appropriated tuition monies for each university in determining that university's specific adjustment.

Employer health insurance contribution increase

The amount appropriated is for a onetime employer contribution rate increase for employee health insurance in fiscal year 2024-2025. The joint legislative budget committee staff, in consultation with the governor's office of strategic planning and budgeting staff, shall determine and the department of administration shall allocate to each agency or department an amount for the health insurance contribution adjustment. The joint legislative budget committee staff shall also determine and the department of administration shall allocate adjustments, as necessary, in expenditure authority to implement the increase in employer health insurance contribution rates. The joint legislative budget committee staff shall use the overall allocation of state general fund and appropriated tuition monies for each university in determining that university's specific adjustment.

State fleet rate reduction

The amount appropriated is for a onetime state fleet rate reduction in fiscal year 2024-2025. The joint legislative budget committee staff, in consultation with the governor's office of strategic planning and budgeting staff, shall determine and the department of administration shall allocate to each agency or department an amount for the state fleet rate reduction. The joint legislative budget committee staff shall also determine and the department of administration shall allocate adjustments, as necessary, in expenditure authority for the state fleet rate reduction.

State fleet rate increase

The amount appropriated is for a onetime state fleet rate increase in fiscal year 2024-2025. The joint legislative budget committee staff, in consultation with the governor's office of strategic planning and budgeting staff, shall determine and the department of administration shall allocate to each agency or department an amount for the state fleet rate increase. The joint legislative budget committee staff shall also determine and the department of administration shall allocate adjustments, as necessary, in expenditure authority for the state fleet rate increase.

Human resources information system replacement charge reduction

The amount appropriated is for a reduction of the human resources information system replacement charge in fiscal year 2024-2025. The joint legislative budget committee staff, in consultation with the governor's office of strategic planning and budgeting staff, shall determine and the department of administration shall allocate to each agency or department an amount for the human resources information system replacement charge reduction. The joint legislative budget committee staff shall also determine and the department of administration shall allocate adjustments, as necessary, in expenditure authority to implement the reduction in the human resources information system replacement charge. The reduction in the human resources information system replacement charge shall be based on each state fund's proportional share of payments to the personnel division fund established pursuant to section 41-750, Arizona Revised Statutes.

Arizona financial information system adjustments

The amount appropriated is for a reduction of the Arizona financial information system upgrade charge in fiscal year 2024-2025. The joint legislative budget committee staff, in consultation with the governor's office of strategic planning and budgeting staff, shall determine and the department of administration shall allocate to each agency or department an amount for the Arizona financial information system upgrade charge reduction. The joint legislative budget committee staff shall also determine and the department of administration shall allocate adjustments, as necessary, in expenditure authority to implement the reduction in the Arizona financial information system upgrade charge.

Agency retirement adjustment

The amount appropriated is for retirement adjustments in fiscal year 2024-2025. The joint legislative budget committee staff, in consultation with the governor's office of strategic planning and budgeting staff, shall determine and the department of administration shall allocate to each agency or department an amount for the agency retirement adjustments. The joint legislative budget committee staff shall also determine, and the department of administration shall allocate adjustments, as necessary, in expenditure authority to implement the agency retirement adjustments.

Agency rent adjustment

The amount appropriated is for agency rent adjustments for agencies relocating to and within state-owned and lease-purchase buildings in fiscal year 2024-2025. The joint legislative budget committee staff, in consultation with the governor's office of strategic planning and budgeting staff, shall determine and the department of administration shall allocate to each agency or department an amount for the agency rent adjustment. The joint legislative budget committee staff shall also determine, and the department of administration shall allocate adjustments, as necessary, in expenditure authority to allow implementation of the agency rent adjustments.

Sec. 134. Department of law; general agency counsel charges; fiscal year 2024-2025

Pursuant to section 41-191.09, Arizona Revised Statutes, the following state agencies and departments are charged the following amounts in fiscal year 2024-2025 for general agency counsel provided by the department of law:

1. Department of administration $127,700

2. Office of administrative hearings $ 3,000

3. Arizona arts commission $ 3,100

4. Citizens clean elections commission $ 2,700

5. State department of corrections $ 2,000

6. Arizona criminal justice commission $ 8,700

7. Arizona state schools for the deaf

and the blind $100,200

8. Commission for the deaf and the hard

of hearing $ 4,100

9. Arizona early childhood development and

health board $ 47,100

10. Department of education $132,000

11. Department of emergency and military affairs $ 30,000

12. Department of environmental quality $135,600

13. Arizona exposition and state fair board $ 20,900

14. Arizona department of forestry and fire

management $ 13,400

15. Department of gaming $ 37,300

16. Department of health services $173,800

17. Arizona historical society $ 700

18. Arizona department of housing $ 19,300

19. Department of insurance and financial

institutions $ 13,800

20. Department of juvenile corrections $ 9,400

21. State land department $ 2,100

22. Department of liquor licenses and control $ 11,400

23. Arizona state lottery commission $ 24,800

24. Arizona state parks board $ 45,800

25. State personnel board $ 600

26. Arizona pioneers' home $ 12,100

27. Department of public safety $677,400

28. Arizona board of regents $ 1,800

29. Arizona state retirement system $ 69,100

30. Department of revenue $ 4,900

31. Department of state — secretary of state $ 1,800

32. State treasurer $ 9,200

33. Department of veterans' services $ 52,700

Fiscal Year 2025-2026 Appropriations

Sec. 135. Appropriation; new school facilities fund; use; fiscal year 2025-2026

The sum of $45,077,100 is appropriated from the state general fund in fiscal year 2025-2026 for a onetime deposit in the new school facilities fund established by section 41-5741, Arizona Revised Statutes. The division of school facilities within the department of administration shall use the monies only for facilities that will be constructed for school districts that received final approval from the division of school facilities within the department of administration on or before December 15, 2023.

Reporting Requirements and Definitions

Sec. 136. Agency spending and encumbrances; quarterly report; fiscal year 2024-2025

Within fifteen days of the last day of each quarter in fiscal year 2024-2025, the department of administration shall report to the director of the joint legislative budget committee and the director of the governor's office of strategic planning and budgeting the year-to-date expenditures and year-to-date encumbrances for operating and capital spending from the state general fund and other agency funds in fiscal year 2024-2025. The information shall be separately delineated by agency, budget fiscal year and fund source, and shall classify each appropriation by agency lump sum, special line item, or project.

Sec. 137. COVID-related expenditures; reporting requirements; intent

A. Within forty-five days after the last day of each calendar quarter through June 30, 2027, the office of the governor shall report to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees and the director of the joint legislative budget committee the total planned allocations and actual expenditures from the coronavirus state fiscal recovery fund and the coronavirus capital projects fund as appropriated by section 9901 of the American rescue plan act of 2021 (P.L. 117-2).

B. Within forty-five days after the last day of each calendar quarter through June 30, 2027, the superintendent of public instruction shall report to the president of the senate, the speaker of the house of representatives, the chairpersons of the senate and house of representatives appropriations committees and the director of the joint legislative budget committee the total planned allocations and actual expenditures of monies allocated to the superintendent of public instruction from the elementary and secondary school emergency relief fund as appropriated by section 2001 of the American rescue plan act of 2021 (P.L. 117-2).

C. Reports required pursuant to this section shall delineate expenditures by agency and program and include descriptions of the purpose of the expenditures.

D. The legislature intends that the executive branch of state government report on its planned and actual use of any major additional federal aid to this state through federal legislation enacted by the end of fiscal year 2024-2025. The timing and frequency of these reports should be the same as required by subsections A and B of this section. The chairperson and vice chairperson of the joint legislative budget committee may provide recommendations to the executive branch concerning federal legislation that would qualify under this subsection.

Sec. 138. Legislative intent; expenditure reporting

The legislature intends that all departments, agencies and budget units receiving appropriations under the terms of this act continue to report actual, estimated and requested expenditures by budget programs and budget classes in a format that is similar to the budget programs and budget classes used for budgetary purposes in prior years. A different format may be used if deemed necessary to implement section 35-113, Arizona Revised Statutes, agreed to by the director of the joint legislative budget committee and incorporated into the budget preparation instructions adopted by the governor's office of strategic planning and budgeting pursuant to section 35-112, Arizona Revised Statutes.

Sec. 139. FTE positions; reporting; definition

Full-time equivalent (FTE) positions contained in this act are subject to appropriation. The director of the department of administration shall account for the use of all appropriated and nonappropriated FTE positions, excluding those in the universities. The director of the department of administration shall submit the fiscal year 2024-2025 report on or before October 1, 2025 to the director of the joint legislative budget committee. The report shall compare the level of appropriated FTE usage in each fiscal year to the appropriated level. For the purposes of this section, "FTE positions" means the total number of hours worked, including both regular and overtime hours as well as hours taken as leave, divided by the number of hours in a work year. The director of the department of administration shall notify the director of a budget unit if the budget unit's appropriated FTE usage has exceeded its number of appropriated FTE positions. Each university shall report to the director of the joint legislative budget committee in a manner comparable to the department of administration reporting.

Sec. 140. Privately funded FTE positions; reporting; definition

A. On or before October 31 in 2024 and 2025, each budget unit of this state shall submit a report to the staff of the joint legislative budget committee and the governor's office of strategic planning and budgeting if the budget unit had any privately funded employees in fiscal year 2023-2024 or 2024-2025. The report shall include the title, duties and salary compensation of each privately funded employee.

B. For the purposes of this section, "privately funded" means paid for in whole or in part with monies from sources other than this state, a political subdivision of this state or the federal government.

Sec. 141. Filled FTE positions; reporting

On or before October 1, 2024, each agency, including the judiciary and universities, shall submit a report to the director of the joint legislative budget committee on the number of filled appropriated and nonappropriated FTE positions, by fund source, as of September 1, 2024.

Sec. 142. Transfer of spending authority

The department of administration shall report monthly to the director of the joint legislative budget committee any transfers of spending authority made pursuant to section 35-173, subsection C, Arizona Revised Statutes, during the prior month.

Sec. 143. Interim reporting requirements

A. State general fund revenue for fiscal year 2023-2024, including a beginning balance of $2,527,200,000 and other onetime revenues, is forecasted to be $17,775,100,000.

B. State general fund revenue for fiscal year 2024-2025, including onetime revenues, is forecasted to be $16,210,000,000.

C. State general fund revenue for fiscal year 2025-2026, including onetime revenues, is forecasted to be $16,446,200,000. State general fund expenditures for fiscal year 2025-2026 are forecasted to be $16,436,000,000.

D. State general fund revenue for fiscal year 2026-2027, including onetime revenues, is forecasted to be $17,130,200,000. State general fund expenditures for fiscal year 2026-2027 are forecasted to be $17,096,900,000.

E. On or before September 15, 2024, the executive branch shall provide to the joint legislative budget committee a preliminary estimate of the fiscal year 2023-2024 state general fund ending balance. The estimate shall include projections of total revenues, total expenditures and an ending balance. The department of administration shall continue to provide the final report for the fiscal year in its annual financial report pursuant to section 35-131, Arizona Revised Statutes.

F. Based on the information provided by the executive branch, the staff of the joint legislative budget committee shall report to the joint legislative budget committee on or before October 15, 2024 whether the fiscal year 2024-2025 revenues and ending balance are expected to change by more than $50,000,000 from the budgeted projections. The joint legislative budget committee staff may make technical adjustments to the revenue and expenditure estimates in this section to reflect other bills enacted into law. The executive branch may also provide its own estimates to the joint legislative budget committee on or before October 15, 2024.

Sec. 144. Definition

For the purposes of this act, "*" means this appropriation is a continuing appropriation and is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

Sec. 145. Definition

For the purposes of this act, "expenditure authority" means that the fund sources are continuously appropriated monies that are included in the individual line items of appropriations.

Sec. 146. Definition

For the purposes of this act, "review by the joint legislative budget committee" means a review by a vote of a majority of a quorum of the members of the joint legislative budget committee.