 |
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
ENACTED
AMENDED
FACT SHEET FOR S.B. 1735/h.b. 2897
general appropriations act; 2024-2025.
Purpose
Makes session law changes relating to general appropriations necessary to implement the FY 2025 state budget.
Background
The Arizona Constitution prohibits substantive law from being included in the general appropriations, capital outlay appropriations and supplemental appropriations bills. However, it is often necessary to make statutory and session law changes to effectuate the budget. Thus, separate bills called budget reconciliation bills (BRBs) are introduced to enact these provisions. Because BRBs contain substantive law changes, the Arizona Constitution provides that they become effective on the general effective date, unless an emergency clause is enacted.
The Joint Legislative Budget Committee (JLBC) Baseline includes an estimate of spending necessary to meet requirements of statutory formulas and other obligations (JLBC).
H.B. 2897 contains the budget provisions for changes relating to general appropriations.
Provisions
FY 2025 Ongoing Fund and Major Footnote Changes
Ongoing General Fund (GF) and Other Fund (OF)
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Arizona State Hospital Complaints (Ombudsman Position) |
GF |
1 FTE |
150,000 |
|
Eliminate Southwest Defense Contracts |
GF |
|
(25,000) |
Major Footnote Changes
1. Requires the amount of monies appropriated for a school district health insurance actuarial study to be used to conduct an actuarial study of the cost and benefits for school district optional participation in the state health insurance program.
2. Requires ADOA, by December 31, 2024, to submit a report to the Governor, President of the Senate, Speaker of the House of Representatives and Director of JLBC on the findings of the school district health insurance actuarial study.
ADOA School Facilities Division (SFD)
Ongoing General Fund (GF) and Other Fund (OF)
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Building Renewal Grant Funding |
GF |
Onetime |
183,000,000 |
Major Footnote Changes
3. Allows the SFD to use the unencumbered balance of up to $24,613,700 in the New School Facilities Fund for facilities and land costs for school districts that received final approval from SFD by December 15, 2023.
4. Allows the SFD to use the unencumbered balance of up to $3,595,000 in the New School Facilities Fund for construction costs for the Pima Unified School District new high school construction project that received final approval from SFD on December 15, 2021.
Office of Administrative Hearings (OAH)
Major Footnote Changes
5. Specifies that, in the lump sum appropriation to the OAH, $200,000 must be used to administer the provisions of a bill addressing insurance provider claims against insurers, if the bill becomes law in the Fifty-Sixth Legislature, Second Regular Session.
6. Reverts the $200,000 from the lump sum appropriation to the OAH to the state GF, if a bill addressing provider claims against insurers does not become law.
Arizona Department of Agriculture (AZDA)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Reduce Salt River Horse Liaison from Full to Part-Time |
GF |
|
(25,000) |
|
Centralize IT Position |
GF |
|
(81,000) |
Major Footnote Changes
7. Exempts $1,199,600 from the AZDA's FY 2024 lump sum appropriation from lapsing until June 30, 2026.
Arizona Health Care Cost Containment System (AHCCCS)
Ongoing General Fund (GF) and Other Fund (OF)
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Formula |
GF |
FY 2026 FY 2027 |
6,300,000 15,700,000 |
|
Prescription Drug Rebate Fund Shift |
GF |
|
(24,700,000) |
|
Service Administrative Staff to Reduce Fraud |
GF |
101 FTEs |
3,300,000 |
|
Reduced Level of Invalid Payments from Additional Fee for Service |
GF |
|
(3,300,000) |
Major Footnote Changes
8. Specifies that the appropriated monies for the traditional Medicaid services include $4,098,200 from the state GF and $8,059,900 from expenditure authority for inpatient payments to rural hospitals.
9. Requires, of the appropriated monies for Proposition 204, $100,000,000 to be used from the Hospital Assessment Fund to cover a portion of the nonfederal share of the costs of services and specifies that this amount is included in the expenditure authority.
10. Allows AHCCS, if any graduate medical education monies remain after every eligible graduate medical education program in counties with a population of fewer than 500,000 persons, to fund the costs of graduate medical education programs operated by community health centers and rural health clinics.
Attorney General (AG)
Major Footnote Changes
11. Requires the appropriated monies for Veterans Substance Abuse Treatment grants to be used for grants to veteran services organizations that treat opioid use disorder in conjunction with judicial programs that address substance abuse treatment and rehabilitation for veterans.
12. Requires the AG, before spending any monies appropriated for Veteran Substance Abuse Treatments, to submit an expenditure plan to JLBC for review.
13. Specifies that the Veteran Substance Abuse Treatment monies include $5,000,000 from opioid claims-related monies deposited in the Consumer Remediation Subaccount of the Consumer Restitution and Remediation Revolving Fund.
14. Exempts the FY 2024 $12,000,000 appropriation from the Consumer Remediation Subaccount of the Consumer Restitution and Remediation Revolving Fund from lapsing until June 30, 2025.
Department of Child Safety (DCS)
Ongoing General Fund (GF) and Other Fund (OF)
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Operating Budget Increase |
GF |
FYs 2024 and 2025 |
13,300,000 |
|
Savings from 50 Vacant Positions |
GF |
|
(6,100,000) |
|
Backfill Social Security Payments No Longer Retained by the State |
GF |
FY 2024 FY 2025 |
3,000,000 5,000,000 |
|
Administrative Cost of New Social Security Payment Policy |
GF |
FY 2024 FY 2025 |
800,000 900,000 |
|
Shift to Preventive Services to Federal Funds |
GF |
|
5,500,000 |
|
Community Based Child Abuse Prevention |
GF |
|
300,000 |
|
Children and Family Supports Contract Increase |
GF |
FY 2024 FY 2025 |
6,200,000 5,500,000 |
|
Permanent Guardianship Caseload Increase |
GF |
FY 2024 FY 2025 |
3,100,000 4,300,000 |
|
Backfill Loss of Federal Congregate Care Funds |
GF |
FY 2024 |
14,700,000 |
|
In-Home Mitigation Utilization Adjustment |
GF |
FY 2024 |
6,300,000 |
|
Out-of-Home Support Services Utilization Adjustment |
GF |
FY 2024 |
(6,300,000) |
|
Kinship Care Surplus |
GF |
FY 2024 FY 2025 |
(8,600,000) (4,200,000) |
|
Foster Care Surplus |
GF |
FY 2024 FY 2025 |
(11,200,000) (11,400,000) |
|
Adoption Surplus |
GF |
FY 2024 FY 2025 |
(10,400,000) (5,700,000) |
|
Extended Foster Care Line-Item Surplus |
GF |
FY 2024 |
(6,700,000) |
|
Federal Expenditure Authority Savings |
GF |
FY 2024 |
(15,200,000) |
|
Healthy Families Expansion to Federal Funds |
GF |
|
(2,500,000) |
Major Footnote Changes
15. Specifies that the appropriated monies for caseworkers includes a onetime increase of $19,700,000 from the state GF in FY 2024 for increased operating expenditures and exempts the monies from lapsing until June 30, 2025.
16. Requires DCS, by September 1, 2024, to submit a report to JLBC and the Governor's Office of Strategic Planning and Budgeting (OSPB) on actual operating expenses for the guardian case management system in FY 2024 and proposed system operating expenses for FY 2025.
17. Specifies
that the appropriated monies for preventive services includes $264,400 from the
state GF to draw down $1,322,000 in additional federal monies associated with
the community
-based child abuse prevention block grant.
18. Stipulates, if child abuse prevention block grants are no longer available, that the appropriation is reduced by $264,400 from the state GF and $1,322,000 from expenditure authority.
Arizona Commerce Authority (ACA)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Economic Development Marketing Reduction |
GF |
|
(500,000) |
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Formula |
GF |
|
400,000 |
Arizona Department of Corrections, Rehabilitation and Reentry (ADCRR)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Inmate Health Care – Vendor Contract |
GF |
FY 2024 FY 2025 |
9,200,000 107,100,000 |
|
Inmate Health Care – Medication (substance use disorder) |
GF |
FY 2024 FY 2025 |
40,700,000 55,000,000 |
|
Inmate Health Care – IT Upgrades |
GF |
FY 2024 FY 2025 |
4,800,000 16,000,000 |
|
Inmate Health Care – Staff and Overtime Costs |
GF |
|
6,800,000 |
|
Inmate Health Care – Other Injunction Costs |
GF |
|
2,700,000 |
|
Inmate Health Care – Savings Offsets |
GF |
FY 2024 FY 2025 |
(39,800,000) (30,800,000) |
|
Inmate Health Care – Savings Offsets (Mariana Prison) |
GF |
|
(9,700,000) |
|
Repurpose Community Treatment for Imprisoned Women Funding |
GF |
FY 2024 |
(2,000,000) |
|
Substance Abuse Treatment Reduction |
GF |
|
(1,500,000) |
|
Private Prison Capacity Savings |
GF |
FY 2024 FY 2025 |
(800,000) (14,500,000) |
Major Footnote Changes
19. Allows ADCRR to spend the $2,000,000 appropriated by the FY 2023 General Appropriations Act for the community treatment program for imprisoned women on community corrections expenditures in FY 2024.
20. Requires the appropriated monies for injunction-related IT upgrades to be used to address information technology improvements as required by the court in the Jensen V Thornell inmate health care litigation and exempts the monies from lapsing until June 30, 2025.
21. Requires ADCRR to use the monies appropriated for noncontract medication to purchase medications to treat Hepatitis C and substance use disorder.
22. Requires ADCRR, before using any monies for noncontract medication, to submit an expenditure plan for JLBC review.
23. Exempts the monies for noncontract medication from lapsing until June 30, 2025.
24. Requires ADCRR, before spending private prison per diem monies on anything other than private prison costs, to submit an expenditure plan for JLBC review.
Board of Dental Examiners
Major Footnote Changes
25. Exempts the $9,300 FY 2025 appropriation for annual leave payout from lapsing.
Department of Economic Security (DES)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Formula – Revertment |
GF |
|
24,800,000 |
|
Reduce Incremental AZEIP Rate Increase |
GF |
|
(2,400,000) |
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Homeless Youth Assistance General Fund Backfill Delay |
GF |
|
(1,000,000) |
Major Footnote Changes
26. Exempts $800,000 of the FY 2024 appropriation for Graham County Rehabilitation Center from lapsing until June 30, 2025.
27. Requires, of the $830,000 for Graham County Rehabilitation Center, $800,000 to be used to remodel the Graham County Rehabilitation facilities in Safford and Willcox.
28. Exempts the FY 2024 appropriation for the Group Home Monitoring Program from lapsing until June 30, 2026.
29. Prohibits
DES from transferring any excess appropriation from the Division of
Developmental Disabilities 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 to
anything outside of the developmental disabilities in FY 2024.
30. Requires at least 10 percent of the state GF share of the amount appropriated to DES for childcare subsidies to be distributed to childcare centers in counties other than Maricopa, Pima and Pinal Counties.
Arizona Department of Education (ADE)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Eliminate FY 2024 Ex-Appropriation |
GF |
|
43,900,000 |
|
Formula – TNT Savings |
GF |
|
(9,200,000) |
|
Limit ESA Enrollment to 1.0 ADM |
GF |
|
(2,500,000) |
|
Move Third Year of Incremental Low-Income Weight Increases to Onetime |
GF |
|
(37,000,000) |
|
Move Third Year of Incremental Additional Assistance Increases to Onetime |
GF |
|
(29,000,000) |
|
Kindergarten Entry Assessment |
GF |
|
(1,500,000) |
|
Move Continuing Highschool Workforce/Training Program Base Funding to Onetime |
GF |
|
(4,600,000) |
|
Move Continuing Highschool Workforce/Training Program Increase to Onetime |
GF |
|
(1,500,000) |
|
Fund Community College Adult Education Workforce Development Program to Onetime |
GF |
|
(4,000,000) |
|
Adult Workforce Diploma Program |
GF |
|
(4,000,000) |
|
Adult Education Administration |
GF |
|
(150,000) |
|
Reduce College Credit by Examination Incentive Program |
GF |
|
(3,700,000) |
Major Footnote Changes
31. Requires ADE to allocate $5,858,000 for onetime charter additional assistance (CAA) supplement in FY 2025.
32. Requires ADE to distribute the onetime allocation for CAA supplement to charter schools on a proportional basis based on the CAA funding that each charter school in Arizona receives in FY 2025.
33. Requires ADE to allocate $23,142,000 for onetime district additional assistance (DAA) supplement in FY 2025.
34. Requires ADE to distribute the appropriated amount for onetime DAA supplement to school districts on a proportional basis based on the DAA funding that each district in Arizona receives in FY 2025.
35. Allows a school district to budget the monies it receives from the onetime DAA supplement in either the school district's maintenance and operation fund or unrestricted capital outlay fund.
36. Requires ADE to allocate $37,000,000 for onetime Free and Reduced-Price Lunch (FRPL) group B weight supplement in FY 2025.
37. Requires ADE to distribute the appropriated amount for onetime FRPL group B weight supplement to school districts and charter schools on a pro rata basis using the weighted student count for FRPL students for the school district or charter school.
38. Allows a school district to 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.
39. Allows the FY 2023 appropriation for the East Valley Institute of Technology for transitional housing to be used for former foster care youth as well as current foster care youth and increases the eligible age from 21 years old to 23 years old.
40. Requires ADE to distribute the monies appropriated for the Arizona Holocaust Education Center for the creation and operation of the center as a resource for fulfilling statutory requirements by August 15, 2024.
41. Exempts the appropriation for the Arizona Holocaust Education Center from lapsing.
42. Specifies that the monies appropriated for adult education include a onetime $6,160,000 allocation for continuing high school and workforce training program, $3,000,000 for onetime deposit adult workforce diploma program and $3,000,000 for onetime deposit in the community college adult education.
43. Requires ADE to allocate the appropriated amount for onetime school meal grants to school districts and charter schools that participate in the National School Lunch Programs or School Breakfast Program established under the National School Lunch and Child Nutrition Acts for grants to reduce or eliminate copayments that would otherwise be charged to children eligible for reduced-price meals.
44. Stipulates that, if the appropriated amount for school meal grants is insufficient to cover the grant awards for all eligible grantees, ADE must reduce each grant proportionately to cover all eligible grantees.
Department of Emergency and Military Affairs (DEMA)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Risk Management Error Adjustment |
GF |
|
(600,000) |
|
National Guard Matching Fund Reduction |
GF |
|
(600,000) |
Arizona Department of Environmental Quality (ADEQ)
Major Footnote Changes
45. Allows ADEQ to use up to $400,000 from the Emissions Inspection Fund.
46. Requires ADEQ, before expending any Emissions Inspection Fund monies on operating costs in excess of the amount appropriated, to report on the intended use of the monies to JLBC.
Arizona Exposition and State Fair Board (State Fair Board)
Major Footnote Changes
47. Removes the footnote specifying that $2,000,000 of the State Fair Board's operating budget is for enhanced state fair operations.
Department of Forestry and Fire Management (DFFM)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Reduce Wildfire Mitigation Funding due to unused ADCRR Inmate Labor |
GF |
|
(5,000,000) |
Major Footnote Changes
48. Exempts the $27,026,700 for wildfire mitigation from lapsing until June 30, 2027.
49. Exempts the monies appropriated for hazardous vegetation removal from lapsing until June 30, 2026.
Arizona Department of Gaming (ADG)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2024 Changes |
|
Eliminate Racing Purse Enhancement Funding |
GF |
|
(5,000,000) |
|
Racing Purse Enhancement Funding |
GF |
Onetime |
4,000,000 |
|
Racetrack Capital Projects |
GF |
Onetime |
1,500,000 |
|
Shift HISA Costs to Racing Regulation Fund |
GF |
|
(355,000) |
Major Footnote Changes
50. Requires the monies appropriated for the Horseracing Integrity and Safety Act assessment to be used by ADG during FY 2025 to pay the 2024 assessment.
51. Requires the $4,000,000 appropriated for racing purse enhancements to be distributed to a recognized nonprofit horsemen's organization that has represented horsemen participating in racing meetings since 1988 and be used to promote racing and enhance the general purse structure for eligible horse races in Arizona.
52. Requires the $1,500,000 appropriated for racetrack capital projects and maintenance and operation funding to be distributed to commercial live racing permittees for capital projects and track maintenance and operations, including costs associated with the compliance costs associated with the federal Horseracing Integrity and Safety Act.
53. Specifies that the ADG must allocate $1,500,000 of the amount appropriated for racetrack capital projects and maintenance and operations funding to a commercial live racing permittee located in Maricopa County.
Governor
Major Footnote Changes
54. Exempts the FY 2024 appropriation for the Missing Murdered Indigenous People Task Force from lapsing.
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
AZ Care Check |
GF |
$500k ongoing/ |
1,400,000 |
Major Footnote Changes
55. Exempts the $1,000,000 FY 2023 appropriation for the behavioral health care provider loan repayment program from lapsing until June 30, 2025.
56. Exempts the FY 2023 appropriation for the accelerated nursing programs from lapsing until June 30, 2025.
57. Exempts the FY 2024 appropriation for nurse-family partnership programs from lapsing until June 30, 2027.
58. Exempts the $1,000,000 FY 2025 appropriation for combating fentanyl from lapsing until June 30, 2026.
59. Exempts the $1,202,400 FY 2025 appropriation to support additional licensing compliance staff from lapsing until June 30, 2026.
60. Exempts the FY 2024 appropriation to DHS for psilocybin research from lapsing.
Arizona Department of Homeland Security (AZDOHS)
Major Footnote Changes
61. Allows AZDOHS to use up to $500,000 of statewide cybersecurity grant monies for grant administration.
Department of Insurance and Financial Institutions (DIFI)
Major Footnote Changes
62. Specifies that $250,000 of the lump sum appropriation to DIFI must be used to administer the provisions of a bill addressing insurance provider claims against insurers, if the bill becomes law in the Fifty-Sixth Legislature, Second Regular Session.
63. Reverts the $250,000 from the lump sum appropriation to DIFI to the state GF, if a bill addressing provider claims against insurers does not become law.
Judiciary
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Supreme Court – Probation IT System |
GF |
|
2,100,000 |
Major Footnote Changes
64. Renames the Court Appointed Special Advocate Fund to the Court Appointed Special Advocate and Vulnerable Persons Fund.
Arizona State Land Department (ASLD)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Eliminate Streambed Navigability Litigation |
GF |
|
(220,000) |
|
Operating Budget shift to Off-Highway Vehicle Fund |
GF |
|
(200,000) |
Mine Inspector
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Aggregate Mining Land Reclamation |
GF |
|
(69,000) |
Board of Nursing
Major Footnote Changes
65. Exempts the $450,000 FY 2024 appropriation for the Student Registered Nurse Anesthetist Clinical Rotation Program from lapsing June 30, 2025.
Department of Public Safety (DPS)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Major Incident Division |
GF |
|
(8,500,000) |
|
Increase State Highway Fund Usage to Cap |
GF |
|
(3,600,000) |
|
Increase Local Border Support |
GF |
|
1,000,000 |
|
GIITEM Permanent Vacancy Savings |
GF |
|
(700,000) |
|
GIITEM Aid to Other Permanent Vacancy Savings |
GF |
|
(200,000) |
|
Pharmaceutical Diversion and Drug Theft Task Force Excess Funding |
GF |
|
(100,000) |
|
Civil Air Patrol Maintenance and Operations Efficiencies |
GF |
|
(6,000) |
Major Footnote Changes
66. Requires DPS to distribute FY 2024 appropriated monies for law enforcement retention initiatives to the following law enforcement agencies (LEAs) for recruitment and retention services and software as follows:
a) $500,000 to DPS;
b) $200,000 to the Yavapai County Sheriff's Office;
c) $225,000 to the Peoria Police Department;
d) $350,000 to the Tempe Police Department;
e) $125,000 to the Oro Valley Police Department;
f) $175,000 to the Queen Creek Police Department;
g) $150,000 to the Flagstaff Police Department;
h) $150,000 to the Buckeye Police Department; and
i) $125,000 to the Surprise Police Department.
67. Requires each LEA that receives monies for law enforcement retention initiatives to use the monies to obtain goods and services from a vendor that fulfills outlined requirements.
68. Exempts the monies for law enforcement retention initiatives from lapsing.
Arizona State Parks Board
Major Footnote Changes
69. Specifies that an amount equal to the revenue share agreement with the U.S. 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.
Arizona State Board of Pharmacy
Major Footnote Changes
70. Exempts $64,600 of the FY 2025 lump sum appropriation for annual leave payout from lapsing.
71. Exempts $190,500 of the FY 2023 lump sum appropriation for e-licensing system upgrades from lapsing until June 30, 2025.
Arizona Department of Real Estate (ADRE)
Major Footnote Changes
72. Specifies that, of ADRE's FY 2025 lump sum appropriation, $400,000 is for information technology improvements.
Secretary of State (SOS)
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Talking Book Library |
GF |
|
(62,000) |
Major Footnote Changes
73. Exempts the $5,352,200 appropriation for county allocation of Help America Vote Act election security grant monies from lapsing until June 30, 2025.
74. Requires the SOS, by January 31, 2025, to submit a report to JLBC and OSPB on the actual expenditures for election services.
75. Allows the SOS to make expenditures or incur indebtedness to employ outside or private attorneys if:
a) the SOS is named as a defendant.
b) the SOS believes a conflict exists that prevents the AG from representing the SOS; and
c) the SOS either remains a nominal party or is defending the constitutionality of a law or referendum enacted by the Legislature.
76. Allows the SOS to use up to $250,000 of election services monies for direct costs related to the 2024 primary and general elections.
Arizona Office of Tourism
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Reduction in Arizona Promotion |
GF |
|
(200,000) |
Arizona Department of Transportation (ADOT)
Major Footnote Changes
77. Specifies that ADOT's operating lump sum includes a $2,000,000 reduction from the State Highway Fund in FY 2025 from ADOT's Enforcement and Compliance Division.
State Treasurer
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Reduction in Justice of the Peace Salaries |
GF |
|
(500,000) |
Board of Technical Registration
Major Footnote Changes
78. Exempts $167,700 from the FY 2023 lump sum appropriation for e-licensing system upgrades from lapsing until June 30, 2025.
Universities
Major Footnote Changes
79. Declares the Legislature's intent that the School of Civic and Economic Thought and Leadership at Arizona State University, the Economic Policy Institute at Northern Arizona University and the Center for the Philosophy of Freedom at the University of Arizona maintain the same funding level as FY 2023, except the universities may allocate the lump sum reduction of up to 3.45 percent prescribed by the FY 2025 General Appropriations Act.
80. Reduces the FY 2023 appropriation to the Arizona Board of Regents for the Camp Verde meat processing facility by $9,700,000.
Ongoing General Fund (GF) and Other Fund (OF) Changes
|
Summary of Changes |
Source |
Comments |
FY 2025 Changes |
|
Arizona Water Protection Fund Deposit Reduction |
GF |
|
(500,000) |
Major Footnote Changes
81. Exempts the $5,000,000 FY 2024 appropriation for statewide water resources planning from lapsing.
82. Exempts the $2,500,000 appropriation for the ADWR's develop, modernize and consolidate applications project from lapsing.
FY 2024 Supplemental Appropriations and Adjustments
General Fund (GF) and Other Fund (OF)
|
Agency |
Fund |
Amount |
|
ADOA – Pay Disallowed Costs – Risk Management Revolving Fund |
OF |
9,493,000 |
|
AHCCCS – Formula Adjustments – Children's Health Insurance Program Fund |
OF |
7,527,500 |
|
AHCCCS – Formula Adjustments |
GF |
(39,944,900) |
|
OSPB – Retirement Cost Technical Adjustment |
GF |
204,600 |
|
JLBC – Retirement Cost Technical Adjustment |
GF |
204,600 |
|
Superior Court – Superior Court Judge's Compensation – Criminal Justice Enhancement Fund |
OF |
813,700 |
|
Arizona State Land Department – Central Arizona Project User Fees |
GF |
(206,700) |
|
Board of Respiratory – Pay Outstanding Costs – Board of Respiratory Care Examiners Fund |
OF |
15,100 |
|
SOS – Conducting Logic and Accuracy Testing for the 2024 Primary Election |
GF |
100,000 |
|
ADWR – Develop, Modernize and Consolidate Applications – ADWR's Subaccount in the Automation Projects Fund (APF) to ADOA |
OF |
2,500,000 |
|
ADOA – Replace Human Resources Information System - Personnel Division Fund to HRIS Subaccount in APF |
OF |
3,100,000 |
FY 2024 Reductions
83. Reduces the FY 2024 lump sum appropriations from the state GF in the following amounts to the following agencies:
|
Agency |
Amount |
|
ADOA – Employee Compensation Study |
(2,200,000) |
|
Arizona Department of Agriculture – Expanded Information Technology Support |
(300,000) |
|
Arizona Commerce Authority – Rural Broadband Accelerated Match Fund |
(23,600,000) |
|
ADE – Art Consumables |
(2,500,000) |
|
ADE – Dual Enrollment Student Development Fund |
(12,000,000) |
|
ADE – Dual Enrollment Student Development Fund |
(500,000) |
|
ADE – Broadband Expansion Fund |
(2,500,000) |
|
Arizona Office of Tourism – Culinary Tourism Workforce Development |
(150,000) |
|
ADOA – Health Care Interoperability Grants |
(1,520,000) |
|
DCS – Extended Foster Care Service Model |
(2,720,000) |
|
State Treasurer – City of Glendale Veteran's Community Project |
(800,000) |
Independent Redistricting Commission (IRC)
84. Reverts all monies from the FY 2022 appropriation that remain unexpended and unencumbered on June 30, 2024, to the state GF.
Rodeo
85. Exempts the $15,000,000 FY 2024 appropriation for improvements to the Yavapai County Fairgrounds from lapsing.
86. Stipulates that, if a court of competent jurisdiction rules that the monies may not be distributed to a nonprofit volunteer organization that operates a rodeo at the Yavapai County Fairgrounds and the judgement is final and definitive, the AG must notify in writing to the Director of Arizona Legislative Council and the monies revert to the state GF.
FY 2024 Exemptions from Lapsing
87. Exempts the following amounts appropriated from the state GF in FY 2024 to the following agencies from lapsing:
|
Agency |
Amount |
|
ADOA – Fire Incident Management |
12,200,000 |
|
Office of Economic Opportunity – Microbusiness Loan |
5,000,000 |
|
ADE – Arizona Civics Education and Leadership Development Program |
300,000 |
|
ADE – Early Education and Career Exploration Program |
5,000,000 |
|
DHS – Collaborative Care Uptake Fund |
1,000,000 |
|
AZDOHS – Antihuman Trafficking Grant Fund |
10,000,000 |
|
AZDOHS – Nonprofit Security Grant Program |
5,000,000 |
|
Arizona Department of Housing – Homeless Shelter and Services Fund |
40,000,000 |
|
DPS – Fentanyl Prosecution, Diversion and Testing Fund |
3,000,000 |
|
Arizona Board of Regents – Spouses and Dependents of Law Enforcement Officers Tuition Scholarship Fund |
2,000,000 |
Additional FY 2025 Appropriations and Adjustments
Arizona Department of Administration (ADOA)
88. Appropriates $7,150,650 from the state GF in FY 2025 to ADOA for equal distribution to counties with a population of fewer than 900,000 persons according to the 2020 U.S. Decennial Census (2020 Census) to maintain essential county services.
89. Appropriates $500,000 from the state GF in FY 2025 to ADOA for distribution to Graham County to maintain essential county services.
90. Appropriates $3,000,000 from the state GF in FY 2025 to ADOA for equal distribution to counties with a population of fewer than 300,000 persons according to the 2020 Census to supplement the normal cost of the Elected Officials Retirement Plan (EORP) and to amortize unfunded accrued liability.
91. Allows the counties to use the distributed FY 2025 $3,000,000 appropriation only for employer contributions to EORP.
92. Appropriates $1,000,000 from the state GF in FY 2025 to ADOA to distribute to the Navajo Nation for use in establishing electrical connections for individuals without access to electricity.
Arts Trust Fund
93. Appropriates $2,000,000 from the state GF in FY 2025 to the Arizona Arts Trust Fund.
94. Appropriates the following amounts in FY 2025 from the APF subaccounts to ADOA for the following automation and information technology projects:
|
Project |
Subaccount |
Amount |
|
Medicaid Enterprise System Mainframe |
Medicaid Enterprise System Modernization Subaccount |
3,396,000 |
|
Human Resources Information System – Replacement |
HRIS Subaccount |
5,521,200 |
|
HRIS – Replacement |
Automation Projects Fund |
1,320,000 |
|
Integrated Tax System Modernization Project |
ADOR Subaccount |
19,456,800 |
95. Requires ADOA to submit a quarterly report to JLBC on implementing projects approved by the Information Technology Authorization Committee that includes the project expenditures, deliverables, timeline for completion and current status.
96. Exempts the FY 2025 appropriations from the APF from lapsing until June 30, 2026.
97. Extends the lapsing date for the following projects:
a) $2,114,300 from the ADOA Subaccount for a Business One-Stop Web Portal until June 30, 2025;
b) $2,000,000 from the APF for Arizona Department of Agriculture Cloud Migration until June 30, 2026; and
c) $2,500,000 from the Judiciary-Supreme Court Subaccount for statewide community supervision electronic monitoring system until June 30, 2027.
Arizona Health Care Cost Containment System (AHCCCS)
98. Appropriates $1,000,000 from the state GF in FY 2025 to AHCCCS to distribute to entities that provide case management for persons with serious mental illness and requires AHCCCS to distribute the monies to provide a wage increase to providers with fewer than 5,000 members.
Arizona Commerce Authority (ACA)
99. Appropriates $500,000 from the state GF in FY 2025 to the ACA for grants to business centers and entrepreneur support organizations that provide business training, business coaching and technical assistance to underserved small business owners.
100. Allows DES, beginning April 1, 2024, to use up to $25,000,000 from the Budget Stabilization Fund (BSF) to provide funding for reimbursement grants.
101. Requires DES, before using the BSF monies, to notify the Director of JLBC and the Director of OSPB.
102. Requires the BSF appropriation to be fully reimbursed by September 1, 2024, and to be reimbursed in full as part of the closing process for FY 2024.
103. Prohibits the BSF appropriation from being used for additional programmatic expenditures.
104. Appropriates $250,000 from the state GF in FY 2025 to DES for the distribution of food to low-income persons living on tribal reservations in Arizona.
105. Appropriates $500,000 from the state GF in FY 2025 to DES to distribute to the Navajo Nation for women's shelter and social services.
106. Appropriates $500,000 from the state GF in FY 2025 to DES to distribute to the Navajo Nation for youth programs.
107. Appropriates $500,000 from the state GF in FY 2025 to DES to distribute to nonprofit organization in Pinal County that provide nutrition, housing and rental assistance programs.
108. Appropriates $2,000,000 from the state GF in FY 2025 to DES for area agencies on aging.
109. Appropriates $1,000,000 from the state GF in FY 2025 to DES to nonprofit organizations located in Cochise County that provide food distribution services for low-income individuals.
110. Appropriates $1,000,000 from the state GF in FY 2025 to DES for job training and life skills services for developmentally disabled individuals in areas outside of Maricopa and Pima Counties.
111. Appropriates $1,000,000 from the state GF in FY 2025 to DES to distribute to the Pascua Yaqui Tribal Government for social services programs.
Arizona Department of Education (ADE)
112. Appropriates $1,000,000 from the state GF in FY 2025 to ADE high school centers for success.
113. Appropriates $2,000,000 from the state GF in FY 2025 to ADE to distribute to entities that provide after school programs to low-income individuals.
114. Appropriates $2,000,000 from the state GF in FY 2025 to ADE for K-12 mental health telehealth pilot programs that serve individuals outside of Maricopa and Pima Counties.
Arizona Department of Environmental Quality (ADEQ)
115. Appropriates $1,000,000 from the state GF in FY 2025 to ADEQ to conduct a zero-emission heavy-duty eight-ton pilot program.
Department of Health Services (DHS)
116. Appropriates $500,000 from the state GF in FY 2025 to DHS to distribute to a nonprofit organization that serves low-income and underserved women and their families to access preventive health care services.
117. Appropriates $500,000 from the state GF in FY 2025 to DHS to distribute to nonprofit organizations that provide counseling services for parents whose children have died as a result of violence.
118. Appropriates $1,000,000 from the state GF in FY 2025 to DHS for senior health promotion and coordination in Santa Cruz County.
119. Appropriates $1,000,000 from the state GF in FY 2025 to DHS to distribute to nonprofit organizations that provide counseling and community services in southern Arizona.
Arizona Department of Homeland Security (AZDOHS)
120. Appropriates $200,000 from the state GF in FY 2025 to the AZDOHS for cybersecurity programs.
Arizona Department of Housing (ADOH)
121. Appropriates $15,000,000 from the state GF in FY 2025 to the Housing Trust Fund.
122. Appropriates $63,100 from the state GF in FY 2025 to the Arizona Supreme Court to pay for judicial salary increases.
123. Specifies that, as of January 1, 2025, the annual salary for the Chief Justice of the Arizona Supreme Court is $222,000 and the annual salary for the other justices of the Arizona Supreme Court is $215,000.
124. Specifies that, as of January 1, 2026, the annual salary for the Chief Justice of the Arizona Supreme Court is $232,000 and the annual salary for other justices of the Arizona Supreme Court is $225,000.
125. Appropriates $252,200 from the state GF in FY 2025 to the Arizona Court of Appeals to pay for judicial salary increases.
126. Specifies that, as of January 1, 2025, the annual salary for a judge of the Arizona Court of Appeals is $200,000 and increases the salary to $210,000 on January 1, 2026.
127. Appropriates $819,600 from the state GF in FY 2025 to the Arizona Superior Court to pay for judicial salary increases.
128. Specifies that, as of January 1, 2025, the annual salary for an Arizona Superior Court judge is $190,000 and increases the salary to $200,000 on January 1, 2026.
Department of Public Safety (DPS)
129. Appropriates the following amounts from the Peace Officer Training Equipment Fund in FY 2025:
a) $600,000 to the Pinal County Sheriff's Office for a pilot program to connect records management systems and outlines software requirements;
b) $1,441,200 for pepperball and pepperball weapons to be distributed to outlined entities;
c) $312,000 to the Maricopa County Attorney's Office for 180-degree simulator for training de-escalation and crime recreation; and
d) $600,000 to the Yavapai County Sheriff's Office to create simulations for law enforcement free of charge to other law enforcement agencies.
Secretary of State (SOS)
130. Appropriates $1,000,000 from the state GF in FY 2025 to the SOS for onetime operating expenses.
Universities
131. Appropriates $1,000,000 from the state GF in FY 2025 to the Arizona Board of Regents for onetime teacher's academy funding.
FY 2025 Lump Sum Reductions
132. Reduces the following state GF amounts from the lump sum appropriations for the following budget units in FY 2025:
|
Agency |
Amount |
|
ADOA |
(300,000) |
|
ADOA - SFD |
(57,100) |
|
Office of Administrative Hearings |
(34,200) |
|
Arizona Department of Agriculture |
(671,500) |
|
AHCCCS |
(1,242,000) |
|
AG |
(839,000) |
|
Arizona State Board for Charter Schools |
(97,800) |
|
Arizona Corporation Commission (ACC) |
(27,600) |
|
Arizona State Schools for the Deaf and the Blind |
(897,000) |
|
Office of Economic Opportunity |
(21,000) |
|
DES |
(3,026,200) |
|
State Board of Education |
(111,200) |
|
ADE |
(469,700) |
|
State Board of Equalization |
(30,000) |
|
DFFM |
(248,600) |
|
Governor's Office |
(368,100) |
|
OSPB |
(101,400) |
|
DHS |
(719,200) |
|
Arizona Historical Society |
(83,500) |
|
Prescott Historical Society |
(35,000) |
|
Department of Insurance and Financial Institutions |
(222,500) |
|
Judiciary – Arizona Supreme Court |
(386,300) |
|
Judiciary – Arizona Court of Appeals |
(508,200) |
|
Judiciary – Arizona Superior Court |
(180,100) |
|
Arizona Department of Juvenile Corrections (ADJC) |
(1,098,100) |
|
Arizona State Land Department |
(148,000) |
|
House of Representatives |
(664,100) |
|
JLBC |
(107,800) |
|
Arizona Legislative Council |
(328,100) |
|
Senate |
(587,300) |
|
Arizona State Lottery Commission |
(279,800) |
|
Navigable Streams Commission |
(6,000) |
|
ADRE |
(110,400) |
|
ADOR |
(1,748,200) |
|
SOS |
(463,600) |
|
State Board of Tax Appeals |
(13,000) |
|
Arizona Office of Tourism |
(75,800) |
|
Governor's Office of Tribal Relations |
(2,400) |
|
ABOR |
(109,200) |
|
ASU |
(10,995,800) |
|
NAU |
(4,070,200) |
|
UArizona – Main |
(6,562,200) |
|
UArizona – Health Sciences |
(1,469,300) |
|
Arizona Department of Veteran Services |
(108,200) |
|
ADWR |
(21,500) |
Debt Service Payments
133. Allocates $25,998,700 of state GF revenue in FY 2025 to the Arizona Convention Center Development Fund.
134. Asserts that the Rio Nuevo Multipurpose Facility District is estimated to receive $17,000,000 from a portion of state transaction privilege tax revenues in FY 2025 and that the actual amount of distribution will be made as outlined in statute.
Fund Transfers
135. Transfers the following amounts, by June 30, 2024, from the following fund sources to the state GF for the purposes of providing adequate support and maintenance for state agencies:
|
Fund |
Comments |
Amount |
|
ADOA – Certificate of Participation Fund |
2,600,000 |
|
|
ADOA – State Employee Travel Reduction Fund |
|
900,000 |
|
ADOA – State Web Portal Fund |
|
4,000,000 |
|
ADOA – Capitol Mall Consolidation Fund |
|
700,000 |
|
ADOA – Fire Incident Management Fund |
|
6,100,000 |
|
ADOA – Construction Insurance Fund |
|
8,100,000 |
|
ADOA – Cyber Risk Insurance Fund |
|
11,200,000 |
|
ADOA – Risk Management Fund |
|
70,000,000 |
|
ADOA/SFD – Credit Enhancement Fund |
|
3,000,000 |
|
AHCCCS – Prescription Drug Rebate Fund |
|
46,000,000 |
|
Athletic Training – Athletic Training Fund |
|
250,000 |
|
AG – Anti-Racketeering - Operations |
|
2,600,000 |
|
AG – Anti-Racketeering – Pass Through |
|
10,000,000 |
|
AG – Collection Enforcement Revolving Fund – Operating |
|
200,000 |
|
Barbering and Cosmetology Board – Barbering and Cosmetology Fund |
|
12,100,000 |
|
Behavioral Health Examiners – Behavioral Health Examiner Board Fund |
|
4,200,000 |
|
Chiropractic Examiners – Chiropractic Examiners Board Fund |
|
500,000 |
|
ACA – Arizona Competes Fund |
|
55,700,000 |
|
ACC – Utility Regulation Revolving Fund |
|
2,100,000 |
|
ACC – Securities Regulation / Enforcement Fund |
|
25,000,000 |
|
ADCRR – Correction Fund |
|
8,000,000 |
|
ADCRR – Alcohol Abuse Treatment Fund |
|
2,000,000 |
|
ADCRR – Transition Program Fund |
|
4,200,000 |
|
ADCRR – Community Corrections Enhancement Fund |
|
100,000 |
|
ADCRR – Arizona Correctional Industries Revolving Fund |
|
11,491,800 |
|
Arizona Criminal Justice Commission – Criminal Justice Enhancement Fund |
|
800,000 |
|
Arizona Criminal Justice Commission – Fingerprint Clearance Card Fund |
|
700,000 |
|
Arizona State Board of Dental Examiners – Dental Board Fund |
|
2,000,000 |
|
Office of Economic Opportunity – Office of Economic Opportunity Operations Fund |
|
1,000,000 |
|
DES – Family Caregiver Grant Program Fund Transfer |
|
700,000 |
|
DES – Special Administration Fund |
|
4,000,000 |
|
DES – Economic Security Capital Investments Fund |
|
500,000 |
|
ADEQ – Air Quality Fee Fund |
|
2,300,000 |
|
ADEQ – Underground Storage Tank Fund |
|
20,000,000 |
|
ADEQ – Vehicle Emissions Inspection Fund |
|
5,000,000 |
|
ADEQ – Hazardous Waste Management Fund |
|
900,000 |
|
ADEQ – Emergency Response Fund |
|
500,000 |
|
ADE – Adult Workforce Diploma Program Fund |
|
3,000,000 |
|
ADE – Community College Adult Ed Workforce Development Program Fund |
|
8,900,000 |
|
ADE – Computer Science Professional Development Program Fund |
|
5,000,000 |
|
State Fair Board – Arizona Exposition and State Fair Fund |
|
5,000,000 |
|
Board of Fingerprinting – Board of Fingerprinting Fund |
|
1,200,000 |
|
Arizona Department of Game and Fish – Watercraft Licensing Fund |
|
800,000 |
|
DHS – Disease Control Research Fund |
|
1,300,000 |
|
DHS – Prescription Drug Rebate Fund |
|
1,000,000 |
|
DHS – Health Services Lottery Fund |
|
3,700,000 |
|
Industrial Commission of Arizona – Administration Fund |
|
2,400,000 |
|
Industrial Commission of Arizona – Special Fund |
|
900,000 |
|
DIFI – Financial Services Fund |
|
19,600,000 |
|
DIFI – Automobile Theft Authority Fund |
|
8,800,000 |
|
DIFI – Receivership Revolving Fund |
|
800,000 |
|
ADJC – CJEF Distribution Fund |
|
900,000 |
|
ADJC – Indirect Cost Recovery Fund |
|
200,000 |
|
ASLD – Risk Management Fund |
|
300,000 |
|
State Land Department – IGA and ISA Fund |
|
24,000 |
|
ASLD – Trust Land Management Fund |
|
34,000,000 |
|
Department of Liquor Licenses and Control – Liquor Licenses Fund |
|
400,000 |
|
Department of Liquor Licenses and Control – K Fund Enforcement Surcharges Fund |
|
200,000 |
|
Massage Therapy Board – Massage Therapy Board Fund |
|
600,000 |
|
Medical Board Examiners – Medical Examiners Board Fund |
|
9,300,000 |
|
Mine Inspector – Aggregate Mining Reclamation Fund |
|
39,000 |
|
Naturopathic Physicians Board – Naturopathic Board Fund |
|
1,700,000 |
|
Board of Nursing – Nursing Board Fund |
|
9,400,000 |
|
Occupational Therapy Board – Occupational Therapy Fund |
|
900,000 |
|
Board of Optometry – Board of Optometry Fund |
|
400,000 |
|
Board of Osteopathic Examiners – Osteopathic Examiners Board Fund |
|
2,800,000 |
|
Arizona State Parks Board – State Parks Revenue Fund |
state GF Share |
38,200,000 |
|
Pharmacy Board – Pharmacy Board Fund |
|
6,300,000 |
|
Physical Therapy Board – Physical Therapy Fund |
|
700,000 |
|
Psychologist Examiners – Psychologist Examiners Board Fund |
|
1,800,000 |
|
DPS – Fingerprint Clearance Card Fund |
|
3,900,000 |
|
DPS – DPS Licensing Fund |
|
100,000 |
|
DPS – GIITEM Fund |
|
1,000,000 |
|
DPS – Records Processing Fund |
|
200,000 |
|
DPS – Public Safety Equipment Fund |
|
500,000 |
|
Residential Utility Consumer Office – Residential Utility Consumer Office Revolving Fund |
|
400,000 |
|
Board of Technical Registration – Technical Registration Board Fund |
|
5,600,000 |
|
ADOT – Economic Strength Project Fund |
|
600,000 |
|
ADOT – Highway Damage Recovery Fund |
|
1,000,000 |
|
ADOT – State Aviation Fund |
|
15,000,000 |
|
ADOT – State Highway Fund – Interest Transfers |
FY 2024 FY 2025 FY 2026 FY 2027 |
26,000,000 18,700,000 15,000,000 10,000,000 |
|
ADOT – Abandoned Vehicles Administration Fund |
|
400,000 |
|
ADOT – Shared Location and Advertisement Agreement Expense Fund |
|
100,000 |
|
ADOT – Motor Vehicle Dealer Enforcement Fund |
|
300,000 |
|
ADOT – Highway Expansion and Extension Loan Program Fund |
|
4,000 |
|
ADOT – State Highway Fund Vehicle License Tax Transfer |
|
3,000,000 |
|
ADOT – Arizona Highways Magazine Fund |
|
500,000 |
|
State Treasurer – State Treasurer's Operating Fund |
|
900,000 |
|
Veterinary Medical Examiners Board – Veterinary Medical Examiners Board Fund |
|
1,700,000 |
|
WIFA – Water Supply Development Revolving Fund |
|
51,600,000 |
|
WIFA – Water Supply Development Revolving Fund Interest |
|
8,100,000 |
|
WIFA – Long Term Water Augmentation Fund |
|
78,000,000 |
|
WIFA – Long Term Water Augmentation Fund Interest |
|
19,300,000 |
|
ADWR – Temporary Groundwater and Irrigation Efficiency Projects Fund |
|
600,000 |
|
ADWR – Assured and Adequate Water Supply Fund |
|
200,000 |
|
ADWR – Water Protection Fund |
|
1,000,000 |
Attorney General (AG)
136. Appropriates $75,000,000 from the Consumer Restitution Subaccount (subaccount) of the Consumer and Remediation Revolving Fund in FY 2024 to the AG and specifies that the monies consist of monies deposited in the subaccount pursuant to opioid claims-related litigation or settlements.
137. Requires the AG, by June 20, 2024, to transfer the $75,000,000 to the ADCRR Opioid Remediation Fund.
138. Prohibits the AG from imposing any conditions on the transfer of the monies in the ADCRR Opioid Remediation Fund unless prescribed in the FY 2025 General Appropriations Act.
139. Stipulates that, if the AG does not transfer the full amounts specified by June 20, 2024, the General Accounting Office of ADOA must directly transfer the amount from the subaccount to the ADCRR Opioid Remediation Fund.
140. Appropriates $40,000,000 from the Subaccount of the Consumer Restitution and Remediation Revolving Fund to the AG.
141. Requires the AG, by July 3, 2024, or if sufficient monies are not available on July 3, 2024, within three calendar days after sufficient monies become available, to transfer the $40,000,000 to the ADCRR Opioid Remediation Fund.
142. Appropriates $3,000,000 from the Subaccount of the Consumer Restitution and Remediation Revolving Fund to the AG.
143. Requires the AG, by July 3, 2024, or if sufficient monies are not available on July 3, 2024, within three calendar days after sufficient monies become available, to transfer the $3,000,000 to the DEMA Opioid Remediation Fund.
144. Appropriates $1,000,000 from the Subaccount of the Consumer Restitution and Remediation Revolving Fund to the AG.
145. Requires the AG, by July 3, 2024, or if sufficient monies are not available on July 3, 2024, within three calendar days after sufficient monies become available, to transfer the $3,000,000 to DHS Opioid Remediation Fund.
146. Requires ADCRR, DEMA and DHS to use the monies in the specified opioid-related fund only for past and current 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 approved purposes prescribed in a court order, a settlement funds agreement that is entered into by the state and other parties to the opioid litigation.
147. Stipulates that, if the AG does not transfer the full amounts specified by July 3, 2024, the General Accounting Office of ADOA must directly transfer the amount from the subaccount to the DEMA Opioid Remediation Fund, DHS Opioid Remediation Fund or the ADCRR Opioid Remediation Fund.
148. Exempts the AG monies from lapsing.
Payment Deferrals
149. Continues to defer $800,727,700 in Basic State Aid (BSA) and additional state aid (ASA) payments from ADE in FY 2025 until after June 30, 2025, but no later than July 12, 2025, and excludes charter schools and school districts with a student count less than 4,000 pupils from the deferral.
150. Requires ADE to make the deferral by reducing the apportionment of state aid for each month in the fiscal year by the same amount.
151. Requires ADE to disburse the FY 2026 appropriations of $800,727,700 to the counties for the school districts starting July 1, 2025, and no later than July 12, 2025, in amounts equal to the reductions in the apportionment of BSA and ASA.
152. Requires school districts to include, in the revenue estimates used for computing FY 2025 tax rates, the deferred appropriation monies that the districts will receive.
Statewide Operating Adjustments
General Fund (GF) and Other Fund (OF)
|
Area of Adjustment |
GF |
OF |
Total |
|
Employer Health Insurance Contribution Reduction |
(72,766,200) |
(21,596,800) |
(94,363,000) |
|
Employer Health Insurance Contribution Increase |
140,000,000 |
60,000,000 |
200,000,000 |
|
State Fleet Rate Reduction |
(8,195,100) |
(5,453,800) |
(13,648,900) |
|
State Fleet Rate Increase |
3,299,000 |
1,625,000 |
4,924,000 |
|
Human Resources Information System Charge Reduction |
(8,009,300) |
(4,644,700) |
(12,654,000) |
|
Arizona Financial Information System Adjustment |
(834,000) |
(839,700) |
(1,673,700) |
|
Agency Retirement Adjustment |
7,180,000 |
500,000 |
7,680,000 |
|
Agency Rent Adjustment |
0 |
160,000 |
160,000 |
153. Prescribes statewide adjustment procedures and instructions.
154. Outlines the FY 2025 individual agency charges totaling $1,798,500 for general agency counsel provided by the Attorney General.
FY 2026 Appropriations
155. Appropriates $45,077,100 from the state GF in FY 2026 for a onetime deposit in the New School Facilities Fund.
156. Requires the SFD to use monies only for facilities that will be constructed for school districts that received final approval from SFD by December 15, 2023.
Miscellaneous
157. Declares the Legislature's intent that all departments, agencies, and budget units receiving appropriations continue to report actual, estimated and requested expenditures in a specified format.
158. Contains other reporting requirements.
159. Defines terms.
160. Becomes effective on the signature of the Governor.
Amendments Adopted by Committee of the Whole
1. Declares the Legislature's intent that the appropriation to ADE for BSA be increased in FY 2028 to continue the funding allocated on an ongoing basis.
2. Outlines requirements for the allocation of the FY 2024 appropriation to DPS for law enforcement retention initiative and the goods and services on which the monies can be spent.
3. Exempts the monies for law enforcement retention initiatives from lapsing.
4. Specifies that $200,000 of the lump sum appropriation to the OAH must be used to administer the provisions of a bill addressing insurance provider claims against insurers, if the bill becomes law in the Fifty-Sixth Legislature, Second Regular Session.
5. Reverts the $200,000 from the lump sum appropriation to the OAH to the state GF if a bill addressing provider claims against insurers does not become law.
6. Specifies that $3,606,700,000 of the appropriated monies from the Expenditure Authority Fund is for hospital enhanced access leading to health improvements initiative payments in FY 2025 and the monies include monies from hospital assessments and any federal monies used to match those payments.
7. Requires that at least 10 percent of the state GF share of the amount appropriated to DES for child care subsidies be distributed to child care centers in counties other than Maricopa, Pima and Pinal Counties.
8. Reduces the ADE appropriation for adult education from $17,058,900 to $16,898,900.
9. Increases the ADE appropriation for English learner administration from $6,597,000 to $11,597,000.
10. Reallocates the $20,000 ADE appropriation for the Flagstaff robotics program as follows:
a) $10,000 for the Flagstaff robotics program; and
b) $10,000 to the Show Low robotics program.
11. Reduces the onetime $6,000,000 allocation for Continuing High School and Workforce Training Program.
12. Increases each onetime $3,000,000 allocation for the Adult Workforce Diploma Program and Community College Adult Education Workforce Development Program Fund to $4,000,000.
13. Requires ADEQ, before expending any Emissions Inspection Fund monies on operating costs in excess of the amount appropriated, to report on the intended use of the monies to JLBC.
14. Requires $3,771,400 of the monies appropriated in the State Fair Board lump sum to be spent to enhance state fair operations.
15. Requires the State Fair Board, before spending monies on capital projects, to submit a report for review to the Joint Committee on Capital Review on the scope, purpose and estimated cost of the capital improvements.
16. Appropriates $1,500,000 to the ADG for racetrack capital projects and maintenance and operation funding and $4,000,000 for racing purse enhancement and outlines the allowable uses of the monies.
17. Exempts the FY 2024 appropriation to DHS for psilocybin research from lapsing.
18. Appropriates $15,000,000 from the state GF in FY 2025 to the Housing Trust Fund.
19. Exempts the FY 2023 appropriation to the Homeless Services Grant Pilot from lapsing.
20. Specifies that $250,000 of the lump sum appropriation to DIFI must be used to administer the provisions of a bill addressing insurance provider claims against insurers, if the bill becomes law in the Fifty-Sixth Legislature, Second Regular Session.
21. Reverts the $250,000 from the lump sum appropriation to DIFI to the state GF, if a bill addressing provider claims against insurers does not become law.
22. Increases the appropriated FTE positions to the Arizona Supreme Court from 203 to 205.
23. Renames the Court Appointed Special Advocate Fund to the Court Appointed Special Advocate and Vulnerable Persons Fund.
24. Increases the appropriation to the Arizona Superior Court for juvenile crime reduction by $600.
25. Appropriates $100,000 from the state GF to the ASPB for the Arizona Trail.
26. Reduces the reduction to ADOT's enforcement and compliance division from $3,000,000 to $2,000,000.
27. Reduces the FY 2023 appropriation to ABOR for the Camp Verde meat processing facility by $9,700,000.
28. Removes the reallocation of the FY 2024 Brackish Groundwater Pilot Program from ADWR to the Water Infrastructure Finance Authority.
29. Exempts the $2,500,000 for the ADWR's develop, modernize and consolidate applications project from lapsing.
30. Reduces the FY 2024 reduction to dual enrollment student development from $15,000,000 to $12,000,000.
31. Reduces the FY 2024 reduction to the Arizona Office of Tourism for culinary tourism workforce development from $250,000 to $150,000.
32. Reduces the FY 2024 appropriation to ADOA for health care interoperability grants by $1,520,000.
33. Reduces the FY 2024 appropriation to DCS for extended foster care service model by $2,720,000.
34. Reduces the FY 2024 appropriation to the State Treasurer distribution to the City of Glendale for a veterans' community project by $800,000.
35. Appropriates $2,000,000 from the state GF in FY 2025 for onetime deposit in the Arizona Arts Trust Fund.
36. Appropriates specified amounts in FY 2025 for judicial salary increases and sets salary amounts for Arizona Supreme Court justices and Arizona Superior Court and Court of Appeals judges.
37. Outlines the FY 2025 appropriation from the Peace Officer Equipment Fund.
38. Removes the Ombudsman-Citizens Aide Office from the lump sum appropriation reduction.
39. Appropriates $1,000,000 from the state GF in FY 2025 to ADOA to distribute to the Navajo Nation for use in establishing electrical connections for individuals without access to electricity.
40. Appropriates $1,000,000 from the state GF in FY 2025 to AHCCCS to distribute to entities that provide case management for persons with serious mental illness and requires AHCCCS to distribute the monies to provide a wage increase to providers with fewer than 5,000 members.
41. Appropriates $500,000 from the state GF in FY 2025 to the ACA for grants to business centers and entrepreneur support organizations that provide business training, business coaching and technical assistance to underserved small business owners.
42. Appropriates $250,000 from the state GF in FY 2025 to DES for the distribution of food to low-income persons living on tribal reservations in Arizona.
43. Appropriates $500,000 from the state GF in FY 2025 to DES to distribute to the Navajo Nation for women's shelter and social services.
44. Appropriates $500,000 from the state GF in FY 2025 to DES to distribute to the Navajo Nation for youth programs.
45. Appropriates $500,000 from the state GF in FY 2025 to DES to distribute to nonprofit organizations in Pinal County that provide nutrition, housing and rental assistance programs.
46. Appropriates $2,000,000 from the state GF in FY 2025 to DES for area agencies on aging.
47. Appropriates $1,000,000 from the state GF in FY 2025 to DES to nonprofit organizations located in Cochise County that provide food distribution services for low-income individuals.
48. Appropriates $1,000,000 from the state GF in FY 2025 to DES for job training and life skills services for developmentally individuals with disabilities in areas outside of Maricopa and Pima Counties.
49. Appropriates $1,000,000 from the state GF in FY 2025 to ADE high school centers for success.
50. Appropriates $2,000,000 from the state GF in FY 2025 to ADE to distribute to entities that provide after school programs to low-income individuals.
51. Appropriates $2,000,000 from the state GF in FY 2025 to ADE for K-12 mental health telehealth pilot programs that serve individuals outside of Maricopa and Pima Counties.
52. Appropriates $1,000,000 from the state GF in FY 2025 to ADEQ to conduct a zero-emission heavy-duty eight-ton pilot program.
53. Appropriates $500,000 from the state GF in FY 2025 to DHS to distribute to a nonprofit organization that serves low-income and underserved women and their families to access preventive health care services.
54. Appropriates $500,000 from the state GF in FY 2025 to DHS to distribute to nonprofit organizations that provide counseling services for parents whose children have died as result of violence.
55. Appropriates $1,000,000 from the state GF in FY 2025 to DHS for senior health promotion and coordination in Santa Cruz County.
56. Appropriates $1,000,000 from the state GF in FY 2025 to DES to distribute to the Pascua Yaqui Tribal Government for social services programs.
57. Appropriates $1,000,000 from the state GF in FY 2025 to DHS to distribute to nonprofit organizations that provide counseling and community services in southern Arizona.
58. Appropriates $200,000 from the state GF in FY 2025 to the AZDOHS for cybersecurity programs.
59. Appropriates $1,000,000 from the state GF in FY 2025 to the Arizona Board of Regents for onetime teacher's academy funding.
60. Appropriates $1,000,000 from the state GF in FY 2025 to the SOS for onetime operating expenses.
61. Appropriates $500,000 from the state GF in FY 2025 to the ADVS to distribute to veterans' centers that provide referral services for employment and job training, housing and utility assistance.
62. Increases the transfer from the Prescription Drug Rebate Fund from $40,000,000 to $46,000,000.
63. Transfers $5,000,000 from the Computer Science Professional Development Program Fund to the state GF.
64. Transfers $800,000 from the Arizona Game and Fish Department Watercraft Licensing Fund to the state GF.
65. Increases the transfer from the Financial Services Fund to the state GF from $18,400,000 to $19,600,000.
66. Removes the transfers from the Insurance Examiners Revolving Fund, Captive Insurance Regulatory and Supervision Fund and Financial Surveillance Fund to the state GF.
67. Appropriates specified opioid claims-related amounts from the Consumer Restitution Subaccount of the Consumer and Remediation Revolving Fund and prescribes transfer timelines and requirements for the AG and ADOA.
68. Exempts the AG monies from lapsing.
69. Makes technical and conforming changes.
House Action Senate Action
APPROP 6/13/24 DP 9-7-1-0 APPROP 6/13/24 DP 6-5-0
3rd Read 6/15/24 34-21-5 3rd Read 6/15/24 17-12-1
(H.B. 2897 was substituted for S.B. 1735 on
3rd Read)
Signed by the Governor 6/18/24
Chapter 209
Prepared by Senate Research
June 21, 2024
LMM/cs