House and Senate Budget Bills As Introduced Page • 4-Year Analysis ............................................................................................................................................................................. 1 • Statement of Revenues and Expenditures ................................................................................................................................... 7 • Agency Detail - Budget Proposal – General Fund ............................................................................................................................................................................. 8 – Other Fund............................................................................................................................................................................... 17 • Budget Reconciliation Bill (BRB) Summary ................................................................................................................................. 27 – Budget Procedures .................................................................................................................................................................. 27 – Criminal Justice ........................................................................................................................................................................ 28 – Environment ............................................................................................................................................................................ 29 – Health ...................................................................................................................................................................................... 30 – Higher Education ..................................................................................................................................................................... 32 – Human Services ....................................................................................................................................................................... 33 – K-12 Education......................................................................................................................................................................... 34 – Revenue ................................................................................................................................................................................... 36 – Conformity/Wayfair ................................................................................................................................................................ 37 – Major Footnote Changes ......................................................................................................................................................... 39 – General Appropriation Act Provisions ..................................................................................................................................... 46 Prepared by JLBC Staff May 21, 2019 GENERAL FUND BUDGET 4-YEAR ANALYSIS $ in Millions N = Note (See End of Spreadsheet) 1 Beginning Balance 2 3 4 5 6 7 8 9 10 11 12 13 14 Ongoing Revenues Ongoing Revenues - January Baseline Base Revenue Adjustment Conformity/Wayfair (FY 19 Used for 2010B / FY 20 Used For Offsetting Tax Reduction) 25% Charitable Deduction for Standard Deduction Filers HSF Phase Out (Jan 1 '20 - $26/'21 - $20/'22 - $15/'23 - $10/'24 - $0) - Revenue Impact Index Dependent Exemption (Starts in '21) Charitable Tax Credit (SB 1027) Property Taxes Valuation (Rule B) - (SB 1248) Alternative Fuels; VLT (SB 1332) Fertilizer TPT Exemption (Half Year Impact in '20) - (HB 2275 - Amend) Corporate STO Deceleration (SB 1485) Liquor License Fees (Liquor Dept. Issues - Legal, IT, 1 FTE) Treasurer Issues 15 Subtotal - Ongoing Revenues 16 17 18 $ A B C D FY 2019 5/21 FY 2020 5/21 FY 2021 5/21 FY 2022 5/21 449.6 $ 10,789.3 (66.0) 155.0 $ 10,878.3 $ One-Time Revenues TPT Estimated Payment Threshold ($1 M to $4.1 M, Thru '23) (HB 2360 - Amend) One-Time Conformity Offset Loss (Wayfair Partial Year Impact In '20) DWR $20 M Water Infrastructure Repayment 19 Previously Enacted Fund Transfers '19/'20 Fund Transfers - Already Enacted 20 21 New Proposed Fund Transfers AHCCCS - Prescription Drug Rebate Transfer to General Fund Wells Fargo Settlement 774.3 $ 77.1 $ 24.0 11,175.8 (16.9) 11,527.4 (23.5) 11,956.7 (31.4) (24.0) (40.1) No - Conformity (1.2) (0.8) Yes - Other Funds (7.4) See '21 (0.2) (0.4) (24.0) (47.5) (24.0) (47.5) (1.2) (0.8) (1.2) (0.8) (14.7) 5.3 (0.2) (0.4) (14.7) 18.7 (0.2) (0.4) 11,084.8 $ (10.3) (28.0) 11,420.4 $ (10.0) 11,855.2 (10.0) 20.0 100.7 1.8 69.0 20.0 16.7 16.7 22 Subtotal - Newly Enacted Fund Transfers $ - $ 89.0 $ 16.7 $ 16.7 23 Subtotal - One-Time Revenues (Including Beginning Balance) $ 550.3 $ 826.8 $ 83.8 $ 50.7 24 Total Revenues $ 11,428.6 $ 11,911.6 $ 11,504.2 $ 11,905.9 25 JLBC Baseline - Ongoing Spending $ 10,147.6 $ 10,629.5 $ 11,269.6 $ 11,707.7 1 GENERAL FUND BUDGET 4-YEAR ANALYSIS $ in Millions N = Note (See End of Spreadsheet) 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 Ongoing Changes to JLBC Baseline Agriculture - Ag Lab Relocation Agriculture - Dairy Inspector Salary Increase ($137k) AHCCCS - Formula AHCCCS - Federal Match Rate Changes (Begin in FY 21) AHCCCS - Use PDRF As Transfer Instead of Offset (See Fund Transfers) AHCCCS - Eliminate KidsCare Freeze AHCCCS - DD Behavioral Health Transfer to DES AHCCCS - Prop 206 Funding (Elderly Long-Term Care) AHCCCS - Additional ALTCS Provider Funding Charter Board - Additional FTEs (FY 20 5 FTE/FY 21 10 FTE) DCS - Kinship Stipend Comm Colleges - Formula Changes Comm Colleges - Dine College Remedial Education Corrections - Inmate Health Care Corrections - Health Care Monitoring Staff (10 FTE) Counties - Rural EORP Assistance DES - Formula Adjustments DES - Federal Match Rate Changes (Begin in FY 21) DES - DD FY 19 Cap Rate Increase DES - Case Management Funding DES - DD Behavioral Health Services Transfer to DES DES - Fund Prop 206 Costs Ongoing DES - Additional DD Provider Funding DES - Local Minimum Wage Increase DD Offsets DES - Childcare Block Grant ADE - Formula Adjustments ADE - Results-Based Funding ($40 M in Base) - Top 13% AZMerit ADE - SRO/School Counselors Grant Program ADE - Juvenile Detention Education Programs ADE - Excess SFB Debt Service Funds DEMA - National Guard Tuition Reimbursement (125 - 400 Guardsman) Forestry - Hazardous Vegetation Removal A B C D FY 2019 5/21 FY 2020 5/21 FY 2021 5/21 FY 2022 5/21 (18.0) 0.4 0.1 (55.0) Yes 53.6 1.6 (26.1) 4.8 7.0 0.4 2.4 0.2 1.0 30.9 1.0 3.0 Yes 6.7 1.9 26.1 13.0 13.0 BRB Other Fund (54.7) 30.0 15.0 0.7 0.5 0.1 (83.0) (19.8) 16.7 9.4 (26.1) 4.8 7.0 0.8 2.4 0.2 1.0 30.9 1.0 3.0 (16.1) (6.0) 6.7 1.9 26.1 13.0 13.0 0.5 0.1 (92.0) (30.4) 16.7 9.4 (26.1) 4.8 7.0 0.8 2.4 0.2 1.0 30.9 1.0 3.0 (16.1) (9.0) 6.7 1.9 26.1 13.0 13.0 (72.0) 30.0 15.0 0.7 (96.0) 30.0 15.0 0.7 1.0 1.0 1.0 1.0 1.0 1.0 3.7 6.7 Other Fund (10.0) (6.8) 2 GENERAL FUND BUDGET 4-YEAR ANALYSIS $ in Millions N = Note (See End of Spreadsheet) 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 Forestry - Non-Native Vegetation Eradication (Thru FY 29) Governor - Foster Youth Education Ongoing Governor - Governor's Budget Staff (OSPB) ($650k) DHS - ASH Temporary Staffing Contract Increase IRC - JLBC Baseline Has '21/'22 Funding Judiciary - Court of Appeals - General Operating Expenses Judiciary - Superior Court - Health/Dental Cost Adjustment ($54k) Judiciary - Superior Court - Adult Probation Growth Judiciary - Superior Court - Probation Salary Deficit Judiciary - Judicial Nominating Commissions (2 Counties) Judiciary - Employee Salary Increase DJC - Repeal Non-Maricopa/Pima County Cost Sharing Permanently Legislature - Senate Budget Legislature - House Budget Legislature - JLBC Budget Postsecondary Ed - Internal IT System Development ($34k) DPS - Maricopa Night Highway Patrol (6 FTE) DPS - Southern AZ Highway Patrol (12 FTE) DPS - Loop 202 South Mountain Freeway Patrol (30 FTE) DPS - Highway Safety Fee Phase Out (Spending Impact) PSPRS - Prescott Fire Deposit (Thru FY 26) Sec of State - Pres. Preference Election (Baseline - $5.0 M) Sec of State - 2 FTE Positions (IT Staff) Sec of State - Election Services ($100k Petitions/$3k Training) Sec of State - Uniform Laws Commission Tourism - Marketing Funding Increase ($100k Wine Promotion) Universities - ABOR - Teacher's Academy Universities - ABOR - Adaptive Athletics ($160k) Universities - ABOR - Washington Center Universities - NAU - Continue Biomedical Research Funding Universities - NAU - Ongoing Freedom School Funding Veterans' Services - Veteran Suicide Prevention (Incl. $450k Trauma Training) Water Resources - Staff/Courts Water Master Other - Pay Raise - Agriculture ($30k) A B C D FY 2019 5/21 FY 2020 5/21 FY 2021 5/21 FY 2022 5/21 1.0 1.5 0.7 Other Fund Remove 21/22 $ 0.2 0.1 0.2 1.0 0.1 1.1 2.8 3.7 2.5 0.3 0.1 1.5 3.0 6.4 (24.1) 1.0 (0.7) 0.2 0.1 0.1 1.1 15.0 0.2 0.3 3.0 0.5 1.6 0.6 0.1 3 1.0 1.5 0.7 1.0 1.5 0.7 (0.5) 0.2 0.1 0.2 1.0 0.1 1.1 2.8 3.7 2.5 0.3 0.1 1.1 2.2 4.9 3.4 1.0 (3.7) 0.2 0.1 0.2 1.0 0.1 1.1 2.8 3.7 2.5 0.3 0.1 1.1 2.2 4.9 35.3 1.0 0.2 0.1 0.1 1.1 15.0 0.2 0.3 3.0 0.5 1.6 0.6 0.1 0.2 0.1 0.1 1.1 15.0 0.2 0.3 3.0 0.5 1.6 0.6 0.1 GENERAL FUND BUDGET 4-YEAR ANALYSIS $ in Millions N = Note (See End of Spreadsheet) 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 Other - Pay Raise - Attorney General ($55k) Other - Pay Raise - Child Safety Other - Pay Raise - ADC (Monthly Hiring Report/Quarterly Benchmark/JLBC Review) Other - Pay Raise - Health Services Other - Pay Raise - Insurance ($20k) Other - Pay Raise - Juvenile Corrections Other - Pay Raise - Dept. of Public Safety Other - 2010 Sale/Leaseback Refinance Savings (2010A Savings Only) Other - 2010 Sale/Leaseback Debt Service Savings - 2010B Payoff Other - ADC/DJC Retirement Adjustments Other - DPS PSPRS Retirement Adjustment Other - Risk Management Adjustments Other - IT Pro Rata Adjustments Other - Agency Rent Adjustments Other - COSF Rental Rate Increase Other - ADOA Shared Services (1740 W Adams) Other - Revertments (Unspent Appropriations) B C D FY 2019 5/21 FY 2020 5/21 FY 2021 5/21 FY 2022 5/21 0.1 5.5 40.6 2.8 0.1 3.2 21.5 (6.4) Savings Start in '21 (3.7) 4.1 2.3 1.1 (0.5) 2.0 $10k (22.0) (21.0) 109 Subtotal - Ongoing Changes to JLBC Baseline $ 110 Total Ongoing Spending $ 111 JLBC Baseline One-Time Spending $ 112 113 114 115 116 117 118 119 120 121 A (45.4) One-Time Changes to JLBC Baseline ADOA - Sierra Vista Public Safety Communications ($271k) ADOA/APF - Business OneStop Shop Web Portal Design Costs Agriculture - Mariposa Port of Entry Cold Inspection Facility (Capital) AHCCCS - Asset Verification System (No '21/'22 Commitment) AHCCCS - Electronic Visit Verification System (No '21/'22 Commitment) AHCCCS - Provider Management System (No '21/'22 Commitment) Arts - One-Time Funding DCS - Automation (CHILDS) Commerce - Rural Broadband Grants Comm Colleges - Maricopa CCD Healthcare Specialty Expansion 0.1 5.5 40.6 2.8 0.1 3.2 21.5 (6.4) (24.0) (3.7) 4.1 2.3 1.1 (0.5) 2.0 $10k (22.0) $ 154.9 $ 44.1 $ 22.2 10,102.2 $ 10,784.4 $ 11,313.7 $ 11,729.9 247.0 $ 154.9 $ 168.4 $ 28.5 0.3 1.0 0.7 PDRF One-Time PDRF One-Time PDRF One-Time 2.0 5.1 3.0 5.8 4 0.1 5.5 40.6 2.8 0.1 3.2 21.5 (6.4) (24.0) (3.7) 4.1 2.3 1.1 (0.5) 2.0 $10k (18.0) GENERAL FUND BUDGET 4-YEAR ANALYSIS $ in Millions N = Note (See End of Spreadsheet) 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 Comm Colleges - Pima CCD Aviation Center Comm Colleges - One-Time Rural Funding (By Student Count) Comm Colleges - Maricopa/Pima STEM Funding (Thru FY 22) Economic Opportunity - WIFA - Small Water Systems Fund DES - Food Banks ($950k) ADE - Reduce K-12 Rollover (FY 22 - Eliminate for < 1,350 ADM) ADE - High Quality Teacher Scholarships (Thru FY 22) ADE - Mingus Unified Consolidation Costs ($50k) ADE - Yuma Elementary School Construction ADE - CTED Incentive (One-Time/Non-Lapsing) - JLBC Review ADE - Community Schools Pilot Program ($765k) ADE - One-Time DAA/CAA Acceleration ($136 M In FY 20) DEMA - West Valley Readiness Center (Capital) DEQ - WQARF DEQ - Nogales Wastewater Forestry - Adjust BSF Firefighting Loan Limit (Currently $10 M) Forestry - Fire Training Center (Taylor) - $750k Forestry - Non-Native Vegetation Eradication Forestry - Mount Lemmon Fire District Water Line ($750k) DHS - Alzheimer's Research DHS - Rural Hospital Prenatal Equipment DHS - Restore Emergency Fund to $500k DHS - Primary Care Clinic - Colorado City DHS - Benson and Northern Cochise Hospitals Housing - Housing Trust Fund Deposit (One-Time) DJC - One-Time Maricopa/Pima County Cost Sharing Offset Leg. - Auditor General - CTED Study Parks - Arizona Trail - $250k DPS - AZ POST Funding (Highway Patrol Fund) DPS - Highway Patrol Vehicle Replacement Racing - County Fair Promotion ($730k) SFB - Advance Funding for New School Construction (2 Year) SFB - Final New School Construction Approvals SFB - Building Renewal Funding A B C D FY 2019 5/21 FY 2020 5/21 FY 2021 5/21 FY 2022 5/21 15.0 14.2 2.0 0.5 2.0 2.0 0.4 30.0 0.4 5.0 5.0 0.5 0.5 16.8 (8.6) 32.1 (14.5) 1.0 0.4 0.1 0.8 25.0 5 0.8 67.8 3.9 Other Fund - $15 M Other Fund - $2.6 M $20 M BSF Limit 0.8 1.0 0.8 Other Fund - $2.0 M 1.0 0.1 0.7 1.5 10.0 8.5 0.4 Yes - Other Fund Other Fund - $1.0 M 4.0 0.7 16.0 10.6 62.8 GENERAL FUND BUDGET 4-YEAR ANALYSIS $ in Millions N = Note (See End of Spreadsheet) 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 Sec of State - FY 19 Supplemental - Record Storage ADOT - I-17 Expansion (State Highway Fund) - ($40 M/$45 M/$45 M) Additional Road Infrastructure ($18 M Locals/$77 M Projects) Universities - ASU - One-Time Operating Funding Universities - NAU - One-Time Operating Funding Universities - UA - One-Time Operating Funding Water Resources - Water System Conservation Funding (Enacted) Water Resources - Agriculture Infrastructure Projects (Enacted) Water Resources - Additional $20 M Infrastructure Projects Water Resources - Water Protection Fund Deposit Water Resources - Digitization/Case Management System Other - 2010B Sale/Leaseback Payoff Other - HITF - State Agencies Other - HITF - Universities Other - Rainy Day Fund Deposit Other - '21 Additional 27th Pay Period (JLBC Baseline - $98 M) Other - Named Claimants ($307k) (HB 2495) A B C D FY 2019 5/21 FY 2020 5/21 FY 2021 5/21 FY 2022 5/21 State Highway Fund 95.3 18.9 6.7 9.4 30.0 State Highway Fund State Highway Fund 0.7 7.0 20.0 0.5 0.5 190.0 8.4 2.1 271.1 See '21 271.1 (18.0) 0.3 173 Subtotal - One-Time Changes to JLBC Baseline $ 305.1 $ 895.2 $ 174 Total One-Time Spending $ 552.1 $ 1,050.1 $ 175 Total Spending $ 10,654.3 $ 11,834.5 176 Cash Balance $ 774.3 $ 177 Structural Balance $ 776.1 $ 6 (1.9) $ 55.5 166.5 $ 84.0 $ 11,480.2 $ 11,813.9 77.1 $ 24.0 $ 92.0 300.4 $ 106.7 $ 125.3 5/21 Plan Statement of General Fund Revenues and Expenditures 1/ With One-Time Financing Sources FY 2019 5/21 REVENUES Ongoing Revenues Newly Enacted Changes Conformity/Wayfair (Offset In FY 20) Urban Revenue Sharing Net Ongoing Revenues One-time Financing Sources Balance Forward Wells Fargo Settlement Other Tax Law Changes Water Infrastructure Repayment Fund Transfers Subtotal One-time Revenues FY 2020 5/21 $11,398,072,000 155,000,000 (674,804,400) $10,878,267,600 FY 2022 5/21 $11,896,447,900 (73,990,900) $12,296,178,400 (83,315,300) $12,752,263,400 (69,941,200) (737,573,600) $11,084,883,400 (792,281,400) $11,420,581,700 (827,005,300) $11,855,316,900 774,372,400 20,000,000 (38,322,600) 77,591,300 24,817,200 (10,005,000) 100,681,700 $550,313,700 70,840,700 $826,890,500 16,700,000 $84,286,300 (9,974,300) 20,000,000 16,700,000 $51,542,900 Total Revenues $11,428,581,300 $11,911,773,900 $11,504,868,000 $11,906,859,800 EXPENDITURES Operating Budget Appropriations FY 2019 Supplementals/Ex-Approp. Administrative Adjustments Revertments Subtotal Ongoing Expenditures $10,200,028,900 (52,838,800) 126,000,000 (171,000,000) $10,102,190,100 $10,829,404,600 $11,358,576,700 $11,774,679,400 128,000,000 (173,000,000) $10,784,404,600 138,000,000 (183,000,000) $11,313,576,700 143,000,000 (188,000,000) $11,729,679,400 One-time Expenditures Capital Outlay Transportation Funding Reduce K-12 Rollover Budget Stabilization Fund Deposit 2010B Debt Payoff Operating One-Time Spending FY 2019 One-Time Supplementals Additional (27th) Pay Period Subtotal One-time Expenditures 449,632,000 FY 2021 5/21 4,959,000 0 86,474,100 54,107,400 $552,018,800 4,575,000 95,310,000 0 271,107,000 190,000,000 488,786,000 0 0 $1,049,778,000 80,000,000 $166,474,100 $84,107,400 Total Expenditures $10,654,208,900 $11,834,182,600 $11,480,050,800 $11,813,786,800 Ending Balance 2/ $774,372,400 $77,591,300 $24,817,200 $93,073,000 Structural Balance 3/ $776,077,500 $300,478,800 $107,005,000 $125,637,500 271,107,000 241,996,500 33,956,300 0 30,000,000 ____________ 1/ 2/ 3/ Significant one-time revenues and expenditures are separately detailed so as to permit the calculation of ongoing revenue and expenditures. This calculation reflects the difference between total revenues and total expenditures. Excludes any Budget Stabilization Fund balance. This calculation reflects the difference between ongoing revenues and expenditures and excludes one-time adjustments. Excludes any Budget Stabilization Fund balance. 7 DETAILED LIST OF GENERAL FUND CHANGES BY AGENCY FY 2019 GF 5/21 FY 20 Baseline 1/ Above FY 19 FY 20 5/20 Chng to FY 20 Baseline FY 2020 GF 5/21 OPERATING SPENDING CHANGES DOA - Arizona Department of Administration DOA - Sierra Vista Public Safety Communications 7,939,100 8,210,100 APF - Automation Projects Fund/ADOA APF - DCS Automation APF - Business OneStop Shop Web Portal 5,000,000 OAH - Office of Administrative Hearings 868,900 868,900 AAM - Commission of African-American Affairs 127,200 127,200 271,000 11,100,000 5,100,000 1,000,000 AGR - Department of Agriculture AGR - Industrial Hemp Licensing (Enacted) AGR - Dairy Inspector Salary Increase AGR - Mariposa Port of Entry Cold Inspection Facility AGR - AG Lab Relocation 9,640,000 AXS - AHCCCS AXS - Formula Changes AXS - Use PDRF As Fund Transfer Rather Than Offset AXS - Statutory Adjustments AXS - Proposition 206 Rate Increase AXS - Asset Verification System AXS - Electronic Visit Verification System AXS - Provider Management System AXS - Eliminate KidsCare Freeze AXS - DD Behavioral Health Services Transfer to DES AXS - Additional ALTCS Provider Funding AXS - Make Prop 206 Assistance Ongoing 1,777,093,500 10,938,900 750,000 137,000 See Capital 411,900 1,766,949,900 38,999,200 (36,927,800) (150,200) 1,944,500 (55,000,000) 53,657,900 Other Fund Other Fund Other Fund 1,586,900 (26,054,100) 7,000,000 4,800,000 ART - Arizona Commission on the Arts ART - One-Time Funding 0 2,000,000 2,000,000 ATT - Attorney General 25,940,300 CHA - State Board for Charter Schools CHA - Additional FTEs 25,940,300 1,209,800 1,602,600 392,800 DCS - Department of Child Safety 375,838,700 8 378,230,700 FY 2019 GF 5/21 FY 20 Baseline 1/ Above FY 19 DCS - Kinship Stipend ACA - Arizona Commerce Authority ACA - Competes Fund Deposit Reduction ACA - One-Time Rural Development Broadband Grants 21,800,000 CCO - Arizona Community Colleges CCO - Formula Changes CCO - Maricopa CCD Healthcare Specialty Expansion CCO - Pima CCD Aviation Center CCO - Dine College Remedial Education CCO - Maricopa/Pima STEM Funding (Thru FY 22) CCO - One-Time Rural Funding (By Student Count) 57,205,500 FY 2020 GF 5/21 18,800,000 (6,000,000) 3,000,000 96,882,200 1,431,400 COR - Corporation Commission COR - Remove One-Time Railroad Safety Inspector Funding ADC - Department of Corrections ADC - Remove Lease Purchase Payment ADC - Inmate Health Care Contract Costs ADC - Inmate Health Care Monitoring (10 FTE) ADC - Private Prison CO Salary Increase FY 20 5/20 Chng to FY 20 Baseline 2,392,000 245,300 5,800,000 15,000,000 1,000,000 2,000,000 14,200,000 814,600 618,000 (196,600) 1,099,670,000 1,133,566,500 (3,072,900) 30,900,000 985,900 5,083,500 CF - County Funding CF - Rural EORP Assistance CF - Remove One-Time DJC Offset 20,566,200 SDB - Arizona State Schools for the Deaf and the Blind SDB - Early Childhood Services Fund Shift 21,659,300 10,650,700 (1,655,500) (11,260,000) 3,000,000 23,259,300 1,600,000 OEC - Office of Economic Opportunity OEC - WIFA - Small Water Systems Fund 488,800 988,800 500,000 DES - Department of Economic Security DES - Formula Adjustments DES - Case Management Funding DES - One-time Proposition 206 Assistance DES - Additional DD Provider Funding DES - FY 19 DD Cap Rate Increase DES - Remove One-Time Food Bank Funding DES - Remove One-Time Medical Room and Board DES - Remove One-Time SNAP Benefit Match Funding DES - DD Behavioral Health Services Transfer to DES 650,936,900 748,115,200 50,962,300 (11,000,000) 1,861,900 13,000,000 13,000,000 6,700,000 (1,000,000) (2,000,000) (400,000) 26,054,100 9 FY 2019 GF 5/21 BOE - State Board of Education ADE - Arizona Department of Education ADE - Formula Adjustments ADE - Additional Assistance Increase (Enacted) ADE - Teacher Salary Increases (Enacted) ADE - One-Time American Civics Funding (Enacted) ADE - Eliminate One-Time Gifted Education Funding ADE - Results-Based Funding ADE - CTED Incentive Program ADE - SRO/School Counselors Grant Program ADE - Community Schools Pilot Program ADE - One-Time Additional Assistance Increase ADE - Payoff K-12 Rollover ADE - Juvenile Detention Education Programs ADE - High Quality Teacher Scholarships (Also $400k in FY 21/22) ADE - Mingus Unified Consolidation Costs ADE - Yuma Elementary School Construction FY 20 Baseline 1/ Above FY 19 FY 20 5/20 Chng to FY 20 Baseline 1,146,300 FY 2020 GF 5/21 1,146,300 4,704,652,000 5,194,905,600 197,489,200 67,774,700 164,700,000 500,000 (1,000,000) (54,700,000) 30,000,000 FY 21/22 - $5 M 15,000,000 765,000 67,774,700 FY 22 - $30 M 700,000 400,000 50,000 800,000 EMA - Department of Emergency & Military Affairs EMA - National Guard Tuition Reimbursement 11,098,200 12,098,200 1,000,000 EQU - State Board of Equalization 652,000 652,000 EXE - Board of Executive Clemency 1,137,000 1,137,000 DFI - Dept of Financial Institutions 1,984,800 1,984,800 FOR - Department of Forestry and Fire Management FOR - Hazardous Vegetation Removal FOR - Fire Training Center (Taylor) FOR - Non-Native Vegetation Eradication (Thru FY 29) FOR - Non-Native Vegetation Eradication (One-Time) FOR - Mount Lemmon Fire District Water Line 11,156,700 15,656,700 1,000,000 750,000 1,000,000 1,000,000 750,000 GAM - Department of Gaming GAM - County Fair Promotion 1,779,500 GOV - Office of the Governor GOV - Retain Foster Youth Education Funding 8,538,800 OSP - Gov's Office of Strategic Planning & Budgeting 2,022,100 2,509,500 730,000 8,538,800 (1,500,000) 10 1,500,000 2,672,100 FY 2019 GF 5/21 FY 20 Baseline 1/ Above FY 19 OSP - Additional Funding DHS - Department of Health Services DHS - Alzheimer's Research (One-Time) DHS - Prenatal Services Funding (One-Time) DHS - Public Health Emergency Fund Backfill DHS - Benson and Northern Cochise Hospitals DHS - Primary Care Clinic - Colorado City FY 20 5/20 Chng to FY 20 Baseline 650,000 89,931,200 FY 2020 GF 5/21 93,237,800 Other Fund 1,000,000 106,600 1,500,000 700,000 AZH - Arizona Historical Society AZH - Risk Management Adjustment 3,195,000 3,075,000 (120,000) PAZ - Prescott Historical Society 832,700 DOH - Department of Housing DOH - Housing Trust Fund Deposit (One-Time) 832,700 0 10,000,000 10,000,000 INS - Department of Insurance 5,628,400 SPA - Judiciary - Supreme Court SPA - Judicial Nominating Commissions (2 Counties) SPA - Employee Salary Increase SPA - Risk Management Shift 19,870,100 COA - Judiciary - Court of Appeals COA - Risk Management Shift COA - General Operating Expenses COA - Employee Salary Increase 15,992,400 SUP - Judiciary - Superior Court SUP - Risk Management Shift SUP - Maricopa County Judges Phase-In (Enacted) SUP - Water Master SUP - Digitization/Case Management System SUP - Adult Probation Growth SUP - Employee Salary Increase SUP - Health/Dental Cost Adjustment SUP - Annualize New Probation Officers SUP - Probation Salary Deficit 80,714,500 DJC - Department of Juvenile Corrections DJC - Repeal Rural County Cost Sharing (One-Time Maricopa/Pima) 22,734,500 5,628,400 20,422,400 117,500 477,500 (42,700) 16,667,200 27,600 236,100 411,100 89,722,100 15,100 6,972,000 39,500 250,000 243,300 257,800 54,100 137,500 1,038,300 33,994,500 11,260,000 11 FY 2019 GF 5/21 LAN - State Land Department LAN - CAP Rate Adjustment FY 20 Baseline 1/ Above FY 19 FY 20 5/20 Chng to FY 20 Baseline 11,733,400 FY 2020 GF 5/21 11,605,100 (128,300) Legislature AUD - Auditor General AUD - CTED Study AUD - Increase Staffing for Performance Audit Division (Enacted) 19,709,600 20,607,100 400,000 497,500 HOU - House of Representatives HOU - Additional Funding 13,835,000 16,335,000 2,500,000 JLBC - Joint Legislative Budget Committee JLBC - Additional Funding 2,504,800 2,829,800 LEG - Legislative Council 8,304,900 SEN - Senate SEN - Additional Funding 9,747,200 MIN - State Mine Inspector 1,255,800 1,255,800 127,400 127,400 1,646,800 1,680,900 325,000 8,304,900 13,422,200 3,675,000 NAV - Arizona Navigable Steam Adjudication Comm. POS - Commission for Postsecondary Education POS - Teacher Student Loan Program POS - Internal IT System Development 34,100 DPS - Department of Public Safety DPS - Highway Safety Fee Fund Shift DPS - Wrong Way Driving Patrol (6 Maricopa FTE) DPS - Border Strike Task Force Enhancement (12 FTE Southern AZ) DPS - Loop 202 South Mountain Freeway Patrol DPS - AZ POST Funding DPS - Highway Patrol Vehicle Replacement DPS - Retirement Adjustment 104,241,700 69,190,800 (30,000,000) PSP - Public Safety Personnel Retirement System PSP - Expiration of Multi-Year Prescott Fire Dept. Funding PSP - Retain Prescott Fire Dept. Funding Thru FY 26 7,000,000 REA - State Real Estate Department 2,911,700 6,000,000 (1,000,000) (1,000,000) 12 (24,056,800) 1,468,800 2,974,600 6,433,500 Other Fund 4,000,000 4,129,000 1,000,000 2,911,700 REV - Department of Revenue FY 2019 GF 5/21 31,063,800 SFB - School Facilities Board SFB - New School Funding Completion (FY 18 Starts) SFB - Continue New School Construction Projects (FY 19 Starts) SFB - Begin New School Construction Projects (FY 20 Starts) SFB - Advance Funding For New School Construction SFB - Lease-Purchase Adjustment SFB - Final New School Construction Approvals SFB - One-Time Building Renewal Funding FY 20 Baseline 1/ Above FY 19 FY 20 5/20 Chng to FY 20 Baseline 274,700,300 FY 2020 GF 5/21 31,063,800 325,632,500 (37,989,800) (12,910,000) 49,305,000 15,953,600 (2,416,800) (34,417,900) SOS - Secretary of State SOS - Presidential Preference Election SOS - 2 FTE Positions (IT Staff) SOS - Election Services (Separate Bill - SB 1451) SOS - Uniform State Laws Commission 10,617,200 62,790,900 15,568,800 16,995,400 1,650,000 TAX - State Board of Tax Appeals (626,400) 200,000 103,000 100,000 280,400 TOU - Office of Tourism TOU - Marketing Funding Increase (Includes $100k Wine Promotion) 280,400 7,112,000 8,212,000 1,100,000 DOT - Department of Transportation DOT - Remove One-Time Transit Planning Funding DOT - Interstate 17 Expansion 65,000 0 (65,000) See Capital TRE - State Treasurer OTR - Governor's Office on Tribal Relations UNI - Universities UNI - Arizona Board of Regents UNI - Adaptive Athletics UNI - Washington Center UNI - Teacher's Academy 1,205,100 1,205,100 60,900 60,900 6,898,100 22,358,100 160,000 300,000 15,000,000 UNI - ASU UNI - Lease Purchase Adjustment UNI - Inflation Adjustment (2017 Capital Infrastructure) UNI - Remove '19 One-Time Operating Funding UNI - New '20 One-Time Operating Funding UNI - Remove One-Time Economic Development Funding UNI - Remove One-Time Freedom School Funding 328,775,800 342,396,900 (22,400) 238,500 (4,245,000) 18,900,000 (250,000) (1,000,000) 13 FY 2019 GF 5/21 UNI - Northern Arizona University UNI - Lease Purchase Adjustment UNI - Inflation Adjustment (2017 Capital Infrastructure) UNI - Remove Multi-Year Biomedical Research Funding UNI - Continue Biomedical Research Funding UNI - Retain Freedom School Funding UNI - Remove '19 One-Time Operating Funding UNI - New '20 One-Time Operating Funding 112,095,700 UNI - UA - Main Campus UNI - Inflation Adjustment (2017 Capital Infrastructure) UNI - Lease Purchase Adjustment UNI - Remove '19 One-Time Operating Funding UNI - New '20 One-Time Operating Funding UNI - Remove One-Time Freedom School Funding 208,836,400 FY 20 Baseline 1/ Above FY 19 FY 20 5/20 Chng to FY 20 Baseline FY 2020 GF 5/21 117,249,200 3,300 90,400 (3,000,000) (500,000) (1,590,200) 3,000,000 500,000 6,650,000 215,331,800 211,000 (800) (2,164,800) 9,450,000 (1,000,000) UNI - UA - Health Sciences Center 68,897,700 VSC - Department of Veterans' Services VCS - Remove One-Time Hyperbaric Therapy Funding VSC - Veteran Suicide Prevention 68,897,700 6,120,600 7,771,100 (25,000) 1,675,500 WAT - Department of Water Resources WAT - Additional Staff WAT - Water Protection Fund Deposit WAT - Digitization WAT - Remove One-Time Northwest Basins Study Funding WAT - Water System Conservation Funding WAT - Agriculture Infrastructure Projects Loan WAT - Remove One-Time Water Protection Fund Deposit 16,169,800 66,909,800 540,000 500,000 200,000 (100,000) 30,000,000 20,000,000 (400,000) OTH - Other OTH - AHCCCS Ex-Appropriation OTH - Land Dept Ex-Appropriation OTH - FY 19 EORP Supplemental OTH - ADE Ex-Appropriation OTH - ADE Ex-Appropriation (SFB Excess Debt Service Funds) OTH - DES FY 19 DD Cap Rate Increase OTH - DES DD Caseload Supplemental OTH - DES Food Bank Funding Supplemental OTH - Secretary of State Supplemental (Record Storage) OTH - Named Claimants Supplemental (46,564,900) (128,300) 287,800 (10,000,000) (6,833,400) 6,700,000 3,700,000 950,000 700,000 306,300 14 28,564,900 128,300 (287,800) 0 0 0 0 0 0 0 0 0 0 OTH - DWR - Agriculture Infrastructure Projects Supplemental OTH - SFB Building Renewal Supplemental OTH - Debt Service Payments OTH - Phoenix Convention Center Debt Service OTH - 2010B Sale/Leaseback Payoff OTH - Rio Nuevo District OTH - Continue FY 2019 EORP Supplemental OTH - Risk Management Adjustments OTH - IT Pro Rata Adjustments OTH - Agency Rent Adjustments OTH - COSF Rental Rate Increase OTH - ADOA Shared Services (1740 W Adams) OTH - Pay Raise/Compensation Package OTH - ADC/Judiciary Retirement Rate Adjustment OTH - Remove One-Time '19 Agency Health Insurance Adjustments OTH - New Agency Health Insurance Adjustments OTH - New University Health Insurance Adjustments OTH - Budget Stabilization Fund Deposit OTH - Unallocated IT Pro-Rata Charge Increase OTH - Unallocated Retirement Rate Adjustment OTH - Unallocated HITF One-Time Employer Premium OTH - Administrative Adjustments OTH - Revertments TOTAL - OPERATING SPENDING CHANGES FY 2019 GF 5/21 7,000,000 25,000,000 84,112,000 22,996,300 0 14,000,000 0 0 0 0 0 0 0 0 0 0 0 271,107,000 500 150,500 32,400 126,000,000 (171,000,000) 10,649,249,900 FY 20 Baseline 1/ Above FY 19 (3,500) 503,700 FY 20 5/20 Chng to FY 20 Baseline (6,399,200) 190,000,000 287,800 0 0 0 0 0 2,341,700 1,067,700 (549,700) 2,023,000 10,600 68,567,700 (3,710,100) (9,967,600) 8,431,600 2,112,800 271,107,000 (500) (150,500) (32,400) 7,000,000 (6,000,000) 394,789,900 (22,000,000) 949,887,700 FY 2020 GF 5/21 0 0 77,709,300 23,500,000 190,000,000 14,000,000 287,800 2,341,700 1,067,700 (549,700) 2,023,000 10,600 68,567,700 (3,710,100) (9,967,600) 8,431,600 2,112,800 271,107,000 0 0 0 128,000,000 (173,000,000) 11,734,297,600 CAPITAL SPENDING Agriculture - Mariposa Port of Entry Cold Inspection Facility DEMA - Tucson Readiness Center - One-Time Funding DEMA - West Valley Readiness Center DPS - Modular Housing - One-Time Funding DOT - Interstate 17 Expansion ADOA - State Route 24 Bridge DOT - I-10 Widening Study DOT - Aviation Fund Deposit ADOA - Kingman I-40 Interchange DOT - US 95 Yuma Road Widening DOT - Local Road Construction Distribution ADOA - Globe Bridge Repair 0 3,759,000 0 1,200,000 0 0 0 0 0 0 0 0 TOTAL - CAPITAL SPENDING 4,959,000 15 700,000 Other Fund 6,500,000 10,000,000 10,000,000 20,000,000 28,000,000 18,000,000 2,810,000 700,000 0 3,875,000 0 Other Fund 6,500,000 10,000,000 10,000,000 20,000,000 28,000,000 18,000,000 2,810,000 99,885,000 99,885,000 (3,759,000) 3,875,000 (1,200,000) (4,959,000) TOTAL - ALL SPENDING FY 2019 GF 5/21 10,654,208,900 FY 20 Baseline 1/ Above FY 19 389,830,900 10,723,267,600 155,000,000 0 0 0 0 0 0 0 0 0 386,506,700 449,632,000 0 0 0 0 495,370,300 100,681,700 0 0 (100,681,700) 993,900 846,800 FY 20 5/20 Chng to FY 20 Baseline 1,049,772,700 FY 2020 GF 5/21 11,834,182,600 REVENUE CHANGES Ongoing Revenue REV - Ongoing Revenue REV - Conformity/Wayfair REV - Highway Safety Fee Revenue Changes REV - Charitable Tax Credit REV - Property Taxes Valuation (Rule B) REV - Low Income Housing Tax Credit REV - Fertilizer TPT Exemption REV - Corporate STO Deceleration REV - ADOT Automation Revenues REV - Liquor License Fee Diversions REV - Treasurer Other Fund Agency Issues One-Time Revenue REV - Beginning Balance REV - Prescription Drug Rebate Transfer REV - Reduce TPT Estimated Payment (Thru FY 23) REV - One-Time Conformity Offset Loss (Wayfair Partial Year Impact) REV - Wells Fargo Settlement Prior-Year Enacted Fund Transfers REV - FY 2019 Fund Transfers REV - DEQ - Air Quality Fund REV - DPS - Joint Fund TOTAL - REVENUE CHANGES 2/ (16,900,000) (24,000,000) (40,129,600) (1,200,000) (750,000) (181,300) (380,000) 11,158,874,300 (24,000,000) (40,129,600) (1,200,000) (750,000) FY 22 Impact (7,350,000) FY 21 Impact FY 21 Impact (181,300) (380,000) (170,629,900) 69,000,000 (10,322,600) (28,000,000) 20,000,000 774,372,400 69,000,000 (10,322,600) (28,000,000) 20,000,000 (7,350,000) 0 993,900 846,800 11,428,581,300 783,036,000 (210,843,400) 11,911,773,900 774,372,400 393,205,100 (1,260,616,100) 77,591,300 ENDING BALANCE ____________ 1/ Represents FY 2020 Baseline cost above FY 2019 Baseline. 2/ Represents all revenue changes, including fund transfers. #VALUE! 16 DETAILED LIST OF OTHER FUND CHANGES BY AGENCY FY 2019 OF 5/21 OPERATING SPENDING CHANGES SBA - State Board of Accountancy FY 20 Baseline 1/ Above FY 19 FY 20 5/20 Chng to FY 20 Baseline 2,037,900 ACU - Acupuncture Board of Examiners ACU - Administrative Staff Consolidation FY 2020 OF 5/21 2,037,900 171,900 169,700 (2,200) DOA - Arizona Department of Administration DOA - Remove One-Time Monument/Memorial Repair Funding DOA - Cybersecurity Controls (Funded with New Charge) DOA - Enterprise Email and Calendar Solution DOA - Government Transformation Office Operations (1 FTE) DOA - Government Website Support (One-Time) DOA - Shared Hosted Data Center Operating Costs 194,938,400 204,906,000 (25,300) 2,888,600 4,500,000 1,000,000 250,000 1,354,300 APF - Automation Projects Fund/ADOA APF - ADOA Business OneStop Portal APF - Agriculture Weights and Measures IT Assessment APF - Remove One-Time Automation Project Funding APF - Child Safety - CHILDS Replacement Initative APF - ADE - School Finance System Replacement APF - Medical Board - Cloud Migration APF - DPS - Concealed Weapons Tracking System APF - DPS - Criminal Justice System Updates 23,125,100 17,311,000 1,000,000 200,000 (18,125,100) 5,100,000 3,000,000 300,000 410,000 2,301,000 AGR - Department of Agriculture AGR - Nuclear Emergency Management Fund Assessment 1,720,200 1,746,600 26,400 AXS - AHCCCS AXS - Formula Changes AXS - Statutory Adjustments AXS - Prescription Drug Rebate One-Time Fund Shift AXS - IT System Costs (One-Time) AXS - KidsCare 328,044,500 339,294,300 5,406,400 150,200 36,927,800 ART - Arizona Commission on the Arts ART - Remove One-Time Budget Stabilization Fund 2,000,000 (16,730,100) (36,927,800) 2,068,000 20,355,300 0 (2,000,000) BAT - Board of Athletic Training 123,500 17 123,500 FY 2019 OF 5/21 ATT - Attorney General ATT - Remove One-Time Sec. of State Litigation Funding ATT - Remove One-Time Case Management IT Upgrade Funding ATT - 3 Southern AZ FTEs (CPRF) ATT - Shift Costs from Anti-Racketeering to CPRF ATT - Shift Criminal Division from RICO to CPRF ATT - Criminal Division CPRF: $950k '21; $2.3 M '22 & '23 ATT - Rent Restoration ATT - 2 GASL FTEs (CPRF) ATT - Police Equipment Grants (One-Time) ATT - Arizona Peace Officer Memorial Fund Deposit (One-Time) ATT - Voter Fraud Unit (4 FTEs) FY 20 Baseline 1/ Above FY 19 FY 20 5/20 Chng to FY 20 Baseline 49,023,800 FY 2020 OF 5/21 53,844,300 (500,000) (1,489,000) 319,000 476,000 850,000 Yes 884,500 250,000 2,500,000 1,000,000 530,000 ATA - Automobile Theft Authority BAR - Board of Barbers BHE - Board of Behavioral Health Examiners DCS - Department of Child Safety DCS - Remove One-Time Litigation Funding DCS - Child Care Development Fund Authority DCS - Transfer $608k from Out of Home to Kinship 5,308,900 5,308,900 401,100 401,100 1,772,300 1,772,300 189,715,700 193,345,700 (3,770,000) 7,400,000 Yes BCE - State Board of Chiropractic Examiners 429,700 429,700 ROC - Registrar of Contractors 12,300,100 12,300,100 COR - Corporation Commission 26,965,900 26,965,900 ADC - Department of Corrections ADC - Transition Program Expansion ADC - Remove One-Time Equipment Funding 53,963,100 53,605,100 600,000 (958,000) COS - Board of Cosmetology COS - Digitization (One-Time) COS - Remove One-Time Document Scanning Funding 1,926,300 1,921,300 70,000 (75,000) CF - County Funding 500,000 18 500,000 FY 2019 OF 5/21 JUS - Arizona Criminal Justice Commission JUS - Remove One-time Criminal Justice Statistics Pilot Funding JUS - Appropriate Statistical Analysis Center FTEs (2 FTEs) FY 20 Baseline 1/ Above FY 19 FY 20 5/20 Chng to FY 20 Baseline 7,258,100 FY 2020 OF 5/21 7,058,100 (200,000) Yes SDB - AZ State Schools for the Deaf and the Blind SDB - Base Level Increase - Formula SDB - Early Childhood Services Fund Shift SDB - Remove One-Time Equipment Funding 13,607,900 HEA - Comm for the Deaf & the Hard of Hearing HEA - Public Research/Policy FTE 4,613,500 DEN - Board of Dental Examiners DEN - Remove One-Time Document Scanning 1,300,500 12,799,200 1,261,300 (1,600,000) (470,000) 4,613,500 Yes 1,212,700 (87,800) DES - Department of Economic Security DES - Child Care Development Fund Authority DES - Remove One-Time Early Intervention Funding DES - Replace One-Time Adult Services Funding with Federal $ 290,774,900 ADE - Arizona Department of Education ADE - Land Trust Distribution ADE - Remove One-Time Code Writing Funding 291,154,100 336,103,900 48,400,000 (1,900,000) (1,171,000) 304,027,900 12,800,000 (500,000) EMA - Department of Emergency & Military Affairs EMA - Nuclear Emergency Management Fund Assessment 573,800 1,461,600 1,458,800 (2,800) DEQ - Department of Environmental Quality DEQ - Wastewater Infrastructure - Nogales (VEI/Air Quality) 82,063,500 84,632,800 2,569,300 OEO - Governor's Office of Equal Opportunity 190,700 COL - Arizona Exposition and State Fair Board COL - Prop 206 Minimum Wage Increase COL - Security 12,549,300 190,700 13,204,900 90,600 565,000 DFI - Dept of Financial Institutions DFI - Remove One-Time Equipment Funding 4,012,600 4,000,600 (12,000) 19 FY 2019 OF 5/21 EMB - Board of Funeral Directors and Embalmers EMB - Remove One-Time IT Funding (Add 20 lapsing) EMB - Retirement Payout FY 20 Baseline 1/ Above FY 19 FY 20 5/20 Chng to FY 20 Baseline 443,400 FY 2020 OF 5/21 379,700 (75,000) 11,300 FIS - Arizona Game and Fish Department 42,752,600 GAM - Department of Gaming GAM - Unarmed Combat Subaccount (Now Appropriated Fund) GAM - Yavapai Racetrack Staffing 15,657,700 DHS - Department of Health Services DHS - COSF/Indirect Fund Lab Cost Shift ($230.1K) DHS - 25 FTEs Licensing (2018 Opioid Bill) DHS - Radiation Reg Salaries/Other DHS - Licensing Indirect Cost Charge DHS - Retain One-Time Alzheimer's Funding DHS - Retain Multi-Year Biomedical Research Funding DHS - ASH Temporary Staff Cost Increase 51,203,700 42,752,600 16,009,700 126,500 56,060,200 (2,000,000) (2,000,000) HOM - Board of Homeopathic & Integrated Medicine Examiners HOM - Share Staff with Acupuncture (26,500) 252,000 Yes 2,686,500 660,000 1,200,000 2,000,000 2,000,000 310,000 90,700 40,200 (50,500) DOH - Department of Housing 322,200 322,200 IND - Industrial Commission 20,001,800 20,001,800 SPA - Judiciary - Supreme Court SPA - Remove One-Time IT Programming Funding 30,446,900 SUP - Judiciary - Superior Court 11,958,100 DJC - Department of Juvenile Corrections DJC - Eliminate County Cost Sharing (Non-Maricopa/Pima Permanent) 17,657,400 30,426,900 (20,000) 11,958,100 6,397,400 (11,260,000) LAN - State Land Department 8,048,800 LIQ - Department of Liquor Licenses & Control LIQ - Litigation Costs/General Operating LIQ - Increase AG Assignment to Full Time 3,086,000 8,048,800 3,267,300 20,000 69,600 20 FY 2019 OF 5/21 FY 20 Baseline 1/ Above FY 19 LIQ - Information Technology Funding LIQ - Add Customer Service FTE LOT - Arizona State Lottery Commission LOT - Tab Ticket Increase LOT - On-Line Sales Decrease LOT - Instant Ticket Sales Increase LOT - Retailer Commissions Increase FY 20 5/20 Chng to FY 20 Baseline 50,000 41,700 138,586,200 FY 2020 OF 5/21 146,787,100 175,900 (1,301,100) 2,693,100 6,633,000 BMT - Board of Massage Therapy 460,900 460,900 6,987,100 6,987,100 MIN - State Mine Inspector 112,900 112,900 NAT - Naturopathic Physicians Medical Board 187,400 187,400 NAV - Navigable Stream Adjudication Commission 200,000 200,000 MED - Arizona Medical Board NUR - State Board of Nursing NUR - FTE Position Increase (6.3 FTEs) 4,738,200 4,738,200 Yes NCI - Nursing Care Inst. Administrators Board 443,600 OCC - Board of Occupational Therapy Examiners OCC - Contract with Athletic Training Board 190,100 DIS - State Board of Dispensing Opticians 149,100 OPT - State Board of Optometry OPT - Remove One-Time Document Scanning Funding 243,800 OST - AZ Board of Osteopathic Examiners in Medicine/Surgery OST - Increased Investigation Staff Hours 903,500 SPB - Arizona State Parks Board SPB - Eliminate OHV Fund for Operating/Backfill with Park Fees SPB - Great Western Trail (OHV) SPB - Arizona Trail SPB - Buckskin Fire District Equipment 14,771,400 443,600 197,200 7,100 149,100 233,800 (10,000) 997,200 93,700 16,630,600 692,100 692,100 250,000 225,000 21 FY 2019 OF 5/21 PER - Personnel Board PER - Reduction in FTE Position FY 20 Baseline 1/ Above FY 19 FY 20 5/20 Chng to FY 20 Baseline 361,000 361,000 (42,200) PHA - Arizona State Board of Pharmacy PHA - Compliance Officer and Investigators (3 FTEs) PHA - Full-Time Assistant Attorney General PHA - New Office Equipment (One-Time) FY 2020 OF 5/21 42,200 2,190,000 2,642,200 329,000 68,200 55,000 PHY - Board of Physical Therapy Examiners PHY - Remove One-Time Document Scanning Funding 499,600 494,600 (5,000) PIO - Arizona Pioneers' Home PIO - Remove One-Time Equipment Funding 6,684,000 6,552,200 (131,800) POD - State Board of Podiatry Examiners 161,900 161,900 POS - Commission for Postsecondary Education 1,537,200 1,537,200 PRI - Board for Private Postsecondary Education 417,800 417,800 PSY - State Board of Psychologist Examiners PSY - E-Licensing System Enhancements 495,000 507,000 12,000 DPS - Department of Public Safety DPS - Remove One-Time Maricopa County Troopers Funding DPS - Remove One-Time Southern Arizona Troopers Funding DPS - Continue One-Time AZPOST Funding (Highway Patrol Fund) DPS - Adjust Peace Officer Training Equipment Funding DPS - Highway Safety Fee Fund Shift DPS - HURF Reduction/Highway Safety Fee Shift ($15.5 M) DPS - State Highway Fund/Highway Safety Fee Shift ($7.5 M) DPS - Remove One-Time Phar. Diversion Task Force Funding DPS - Shift Drug Task Force to Highway Patrol ($559k) 188,320,300 239,172,400 (397,000) (793,900) (837,000) (2,005,500) 30,000,000 Yes Yes (198,600) 1,027,300 24,056,800 Yes Yes - $7.3 M Yes RUC - Residential Utility Consumer Office RES - Board of Respiratory Care Examiners RET - Arizona State Retirement System 22 1,342,600 1,342,600 314,400 314,400 25,030,300 24,130,300 FY 2019 OF 5/21 RET - 5 FTE Positions Reduction RET - Long Term Disability Contract Savings RET - Remove One-Time IT Funding REV - Department of Revenue REV - Remove ESA Administration Funding (Prop 305) REV - Increase Unclaimed Property Audit Funding REV - Remove One-Time TPT Contracting Study Funding REV - Formalize ISA from AHCCCS for Tobacco Tax Unit REV - Wayfair Administration (One-Time) FY 20 Baseline 1/ FY 20 5/20 Chng Above FY 19 to FY 20 Baseline Yes (400,000) (500,000) 47,323,200 FY 2020 OF 5/21 49,348,500 (50,000) 150,300 (75,000) Yes 2,000,000 SOS - Secretary of State SOS - Reduction of Elections Services Line Item SOS - Remove Voter Registration System Funding SOS - Remove Unallocated HAVA Funding 8,823,600 TEC - State Board of Technical Registration TEC - Remove One-Time e-Licensing 2,291,700 744,400 (615,500) (2,063,300) (5,400,400) 2,189,700 (102,000) DOT - Department of Transportation DOT - Remove One-Time Equipment Funding DOT - Shift $25.6M from Highway Maintenance to Preventative Trtmt DOT - Increase Preventative Road Treatment DOT - New South Mountain Freeway Maintenance DOT - Highway Maintenance Workload DOT - Security Systems - Ports of Entry DOT - Highway Damage Recovery Appropriation Adjustment DOT - Second Special License Plate DOT - Driver License and License Plate Volume Increase DOT - Rent Appropriation Correction DOT - New Flagstaff Office Appropriation Extension DOT - SETIF and VITEF $600K Shift DOT - Weigh Scales Line Item Shift DOT - Interlock and DUI Fund $170K Shift DOT - Create ADOT Motor Pool Fund DOT - Aeronautics Program Grant Management (2 FTEs) DOT - License Plate/Signage 414,458,300 431,674,700 (2,434,200) Yes 10,535,200 2,173,000 514,900 951,500 4,000,000 122,500 297,700 127,800 Yes Yes Yes Yes In FY 21 178,000 750,000 TRE - State Treasurer TRE - 3 FTEs/IT Upgrades 5,429,600 5,809,600 380,000 23 FY 2019 OF 5/21 FY 20 Baseline 1/ Above FY 19 FY 20 5/20 Chng to FY 20 Baseline FY 2020 OF 5/21 UNI - Universities UNI - ASU 663,674,600 663,674,600 UNI - Northern Arizona University 160,958,900 160,958,900 UNI - UA - Main Campus 385,101,700 385,101,700 UNI - UA - Health Sciences Center 53,623,800 53,623,800 VSC - Department of Veterans' Services 35,414,100 35,414,100 VME - Veterinary Medical Examining Board VME - Remove One-Time E-Licensing Upgrade Funding 605,500 591,100 (14,400) WAT - Department of Water Resources 2,427,100 OTH - Other OTH - ADOA Federal Financial Participation Repayment Supplemental OTH - ADOA - APF - e-Licensing Project Supplemental OTH - DCS Child Care Subsidy Rate Supplemental OTH - DES Child Care Subsidy Rate Supplemental OTH - DES DD State-Only Caseload Growth Supplemental OTH - ADE Basic State Aid Supplemental OTH - Named Claimants Supplemental OTH - Risk Management Adjustments (No Change to ADOT) OTH - IT Pro Rata Adjustments OTH - Retirement Adjustments OTH - Salary Adjustments OTH - HITF Premiums - Eliminate One-Time '19 OTH - HITF '20 Premium One-Time Adjustments OTH - Agency Rent Adjustments OTH - COSF Rental Rate Increase OTH - Shared Services Adjustments OTH - Unallocated HITF One-Time Employer Premium OTH - Unallocated State Rent - Agency Relocation OTH - Unallocated State Rent Increase OTH - Unallocated IT Rate Increase OTH - Unallocated Retirement Adjustments OTH - Unallocated Elected Officials Retirement Adjustments 9,168,400 (450,000) 7,400,000 48,400,000 1,000,000 6,833,400 298,600 0 0 0 0 0 0 0 0 0 1,306,900 (3,700) 246,500 72,200 416,000 22,300 24 2,427,100 (9,168,400) 450,000 0 0 0 0 0 0 0 0 0 (10,000,000) 0 0 0 0 (1,306,900) 3,700 (246,500) (72,200) (416,000) (22,300) 623,400 900,000 4,000,000 1,196,000 0 10,000,000 (70,000) 1,300,000 100,000 0 0 0 0 0 0 0 623,400 900,000 4,000,000 1,196,000 (10,000,000) 10,000,000 (70,000) 1,300,000 100,000 0 0 0 0 0 0 FY 2019 OF 5/21 TOTAL - OPERATING SPENDING CHANGES $4,055,295,400 FY 20 Baseline 1/ Above FY 19 FY 20 5/20 Chng to FY 20 Baseline 22,063,700 122,890,600 FY 2020 OF 5/21 $4,136,317,700 CAPITAL SPENDING CHANGES Building Renewal Arizona Department of Administration ADC Building Renewal Game & Fish Department Arizona Lottery Commission Arizona Department of Transportation New Projects ADOA - 1275 W. Washington Demolition ADOA - Capitol Mall Consolidation Fund ADOA - Air Handler Units ADOA - Capitol Mall Elevator Replacement Supplemental State Fair Civic Building Roof Arizona Exposition and State Fair Game & Fish Department - Dam Maintenance Game & Fish Department - Property Maintenance Game & Fish Department - Hatchery Maintenance State Parks Board Capital Projects State Parks Board - Buckskin Mountain (+ $1M SLIF) State Parks Board - Oracle State Park State Parks Board - Tonto Bridge Repairs Pioneers' Home - Building Repairs DPS - 202 Radio Tower DPS - Remote Officer Housing (Highway Patrol) ADOT - Statewide Highway Construction ADOT - Controlled Access ADOT - Debt Service ADOT - Airport Planning ADOT - Seligman/Williams Maintenance Bldgs ADOT - Wickenburg Maintenance Yard ADOT - Spreader Racks - Replacing 17 ADOT - Keams Canyon Truck Barn/Office ADOA - Interstate 17 Expansion ADOT - New Materials Test Lab Veterans' Services - Flagstaff/Yuma Homes Additional Costs 11,000,000 5,464,300 981,400 126,300 5,492,000 1,000,000 10,000,000 0 4,100,000 0 1,000,000 150,000 300,000 0 2,000,000 1,500,000 4,000,000 0 600,000 0 800,000 114,952,000 103,833,000 144,232,000 18,798,500 0 0 1,720,000 1,790,000 0 2,250,000 8,000,000 25 62,300 7,800 6,000,000 1,400,000 See Below 7,789,700 (1,000,000) (10,000,000) 1,000,000 (1,000,000) (150,000) (300,000) 400,000 1,300,000 150,000 300,000 400,000 (2,000,000) (1,500,000) (4,000,000) (600,000) 0 (800,000) 14,536,000 9,609,000 6,270,000 4,321,500 0 0 (1,720,000) (1,790,000) 1,250,000 414,000 309,000 2,400,000 10,000,000 2,300,000 4,600,000 40,000,000 (2,250,000) (8,000,000) 17,000,000 6,864,300 1,043,700 134,100 13,281,700 0 0 1,000,000 0 400,000 1,300,000 150,000 300,000 400,000 0 0 0 1,250,000 414,000 309,000 2,400,000 129,488,000 113,442,000 150,502,000 33,120,000 2,300,000 4,600,000 0 0 40,000,000 0 0 FY 2019 OF 5/21 TOTAL - CAPITAL SPENDING CHANGES TOTAL - OPERATING & CAPITAL SPENDING $444,089,500 $4,499,384,900 FUND TRANSFERS APF/DOA - Automation Projects Fund - All For IT Projects APF/DOA - ADOA Automation Operations for IT APF/DOA - ADOA State Web Portal for IT APF/DOA - ADOA Personnel Fund for IT APF/DOA - Behavioral Health Examiners for e-Licensing APF/DOA - DEQ Permit Administration for IT APF/DOA - DEQ Underground Storage Tank for IT APF/DOA - Public Safety Equipment Fund for DPS IT APF/DOA - DPS Highway Patrol Fund for IT APF/DOA - DFI Receivership Revolving Fund for e-Licensing APF/DOA - ADE Empowerment Scholarship Account Fund for AELAS APF/DOA - Medical Examiners Board Fund for IT APF/DOA - DPS Highway Patrol Fund for IT APF/DOA - DPS Concealed Weapons Permit Fund for IT APF/DOA - Agriculture Air Quality Fund for IT 5,330,000 3,517,000 171,900 450,000 1,800,000 1,400,000 1,250,000 2,806,200 1,400,000 TOTAL - FUND TRANSFERS $18,125,100 ____________ 1/ Represents FY 2020 Baseline cost above FY 2019 Baseline. 26 FY 20 Baseline 1/ Above FY 19 (303,400) 21,760,300 FY 20 5/20 Chng to FY 20 Baseline 80,012,700 $519,698,800 202,903,300 $4,656,016,500 3,000,000 300,000 2,301,000 410,000 200,000 0 0 0 0 0 0 0 0 0 3,000,000 300,000 2,301,000 410,000 200,000 6,211,000 $6,211,000 (5,330,000) (3,517,000) (171,900) (450,000) (1,800,000) (1,400,000) (1,250,000) (2,806,200) (1,400,000) (18,125,100) FY 2020 OF 5/21 FY 2020 BUDGET RECONCILIATION BILL PROVISIONS The budget includes the enactment of statutory changes associated with its funding amount. The following provisions would be grouped by subject into Budget Reconciliation Bills (BRBs). BUDGET PROCEDURES (HB 2751/SB 1550) Statewide 1. As session law, increase the FY 2020 Capital Outlay Stabilization Fund (COSF) rental rate charged by the Arizona Department of Administration (ADOA) at $17.87/square foot for rentable office space and $6.43/square foot for rentable storage space. 2. As session law, continue to require unrestricted Federal Funds to be deposited in the General Fund for the payment of essential government services. 3. As permanent law, change the Information Technology pro rata rate from 0.3% to 0.43%. 4. As permanent law, change the deadline, from June 1 to July 1, for the Governor to provide the forms to be used by budget units in submitting their budget estimates and request for appropriations. (Session law last year). 5. As session law, continue to notwithstand the requirements for any deposit to or any withdrawals from the Budget Stabilization Fund through FY 2022. 6. As permanent law, reduce the number of hard copies of budget submissions from state agencies from 5 to 2. 7. As permanent law, require agencies to seek approval from OSPB and ADOA prior to implementing line item transfers. Arizona Department of Administration 8. As permanent law, eliminate the JLBC review requirement for the AFIS transaction fee. 9. As permanent law, modify requirement that ADOA annually report on the Emergency Telecommunication Services Revolving Fund to include all expenditures and eliminate JLBC review requirement. Previous session law required ADOA to submit a report for review on wireless expenditures. 10. As permanent law, amend A.R.S. § 18-421 to expand the allowable uses of the State Web Portal Fund to include operations of the Government Transformation Office. Section 14 13 3 6 15 7 2,8 10 9 4 Office of Economic Opportunity 11. As permanent law, require the Arizona Industrial Development Authority to report on its annual revenues, expenditures, and program activity by October 1 annually. 11 Public Safety Personnel Retirement System 12. As session, notwithstand statute to require PSPRS to submit a final report on contribution rate for the ensuing fiscal year on December 1st instead of December 31st. 18 Department of Revenue 13. As permanent law, continue to allow the Liability Setoff Program Revolving Fund to be used for general operating expenditures of the department. This provision had previously been authorized as session law. 12 27 Secretary of State 14. As permanent law, create a county contributions fund for the operational costs of the state's voter registration system. County contributions currently comingled with other monies. Department of Transportation 15. As permanent law, establish an appropriated Motor Pool Fund for the purposes of reimbursing the Department of Transportation for costs related to implementing an intergovernmental agreement with the Department of Administration. The fund would become effective July 1, 2020. As session law, require a joint report of ADOA and ADOT to the JLBC and OSPB by December 1, 2019 and December 1, 2020 on the progress in transitioning the state motor pool operations to the ADOT and necessary legislative changes to fully implement the transfer. State Treasurer 16. As session law, when merging the Treasurer’s Operating and Management Funds, include language to transfer the unexpended and unencumbered balance 1 5,16 17 CRIMINAL JUSTICE(HB 2752/SB 1557) Section Attorney General – Department of Law 17. As session law, on June 30, 2019, transfer to the General Fund any unobligated balance from the Colorado River Land Claims Revolving Fund. 18. As permanent law, prohibit the use of the Anti-Racketeering Revolving Fund (ARRF) for FTE Positions or other ongoing costs within the Attorney General’s office. 19. As permanent law, increase the non-appropriated expenditure authority of the Consumer Remediation Subaccount from $3,500,000 to $4,000,000. State Department of Corrections 20. As session law, continue to require the department to report actual FY 2019, estimated FY 2020, and requested FY 2021 expenditures as delineated in the prior year when the department submits its FY 2021 budget request pursuant to A.R.S. § 35-113. 21. As permanent law, exempt correctional officers from jury duty until January 1, 2022. Department of Emergency and Military Affairs 22. As session law, extend to FY 2020 the lapsing date of the FY 2019 appropriation of $1.25 million from the Military Installation Fund for the construction of a new Readiness Center. Department of Juvenile Corrections 23. As permanent law, repeal the requirement for all counties except Maricopa and Pima to pay an assessed amount determined by the county’s proportional share by population of $11,260,000 for the costs of the Department of Juvenile Corrections. As session law, suspend the $8,450,900 in county cost sharing for Maricopa and Pima Counties on a one-time basis in FY 2020. 28 9 1 7 14 2 8 6,17 Department of Public Safety 24. As session law, continue to require the Department of Public Safety (DPS) to receive JLBC review of the expenditure plan for the Gang and Immigration Intelligence Team Enforcement Mission (GIITEM) Border Security and Law Enforcement Subaccount FY 2020 appropriation prior to its expenditure. 25. As session law, continue to allow the use of the Concealed Weapons Permit Fund and the State Aid to Indigent Defense Fund for DPS operating expenses. 26. As session law, continue to allow DPS to utilize $144,900 from the FY 2020 GIITEM Subaccount appropriation for costs related to an increase in the PSPRS employer contribution rate. 27. As session law, continue to allocate $400,000 from the GIITEM General Fund distribution to the Pima County Sheriff's Office. 28. As session , allow DPS to use the Highway Patrol Fund for the Pharmaceutical Diversion and Drug Theft Task Force on a one-time basis in FY 2020. The Task Force had previously been funded by the Arizona Drug and Gang Resource Center Fund. 29. As session law, allow the Department of Public Safety to use the Board of Fingerprinting Fund for capital expenditures. 30. As permanent law, deposit the Highway Safety Fee into a new separate fund instead of the Highway Patrol Fund beginning in FY 2021. 31. As permanent law, set the Highway Safety Fee at $26 on January 1, 2020, $20 on January 1, 2021, $15 on January 1, 2022, $10 on January 1, 2023, and $0 on January 1, 2024. 32. As permanent law, repeal the requirement that the ADOT director establish the Highway Safety Fee at 110% of the cost of the Highway Patrol budget. 12 15 13 11 16 10 4,5 3 3 ENVIRONMENT (HB 2753/SB 1556) Section Department of Agriculture 33. As permanent law, authorize the department to re-record livestock brands of the same design that were issued prior to August 3, 2017 without protest. Department of Environmental Quality 34. As session law, continue to allow the department to utilize up to $6,531,000 from the Underground Storage Tank (UST) Fund in FY 2020 for department administrative expenses and for sewage remediation. 35. As session law, continue to suspend the requirement to appropriate $15,000,000 from the state General Fund to the Water Quality Assurance Revolving Fund (WQARF). The fund sources for WQARF in FY 2020 would be as follows: $4,600,000 from the Air Quality Fund, $3,800,000 from the Vehicle Emissions Inspection Fund, $2,152,000 from the Recycling Fund, $2,000,000 from the Permit Administration Fund, and $1,000,000 from the Water Quality Fee Fund for a total of $13,552,000. With $2,000,000 of non-appropriated funds, total WQARF funding would be $15,552,000. 36. As session law, continue to include a legislative intent statement that the WQARF appropriations are being supplemented by $2,000,000 of non-appropriated monies directly deposited into WQARF, which consists of other revenue generated from various license and registration fees. 37. As session law, continue the FY 2019 level of vehicle emissions inspection fees in FY 2020 (FY 2019 fees are $3 less than FY 2016 in Area A, which includes Maricopa County and portions of Pinal and Yavapai Counties.) 38. As permanent law, amend A.R.S. § 49-544 to allow the department to use the Vehicle Emissions Inspections Fund to pay for the travel reduction programs in Maricopa and Pima Counties. 29 1 8 10 10 11 5 39. As permanent law, allow monies in the Permit Administration Fund to be used for staff support to the Oil and Gas Conservation Commission. Department of Forestry and Fire Management 40. As permanent law, increase the maximum loan that the Department of Forestry and Fire Management may receive from the Budget Stabilization Fund for federal wildland fire claims expenses awaiting reimbursement from the federal government from $10,000,000 to $20,000,000. 41. As permanent law, establish the Nonnative Vegetative Species Eradication Fund to provide grants to other state agencies, cities, towns, counties, Indian tribes, other political subdivisions, and nonprofit organizations for projects that will assist in preventing fire and flooding, conserving water, replacing nonnative vegetative species with native vegetative species and restoring habitat to wildlife. The fund would be non-appropriated and would consist of legislative appropriations. Requires a September 1, 2020 report from the department to the Legislature on the use of the funds from the prior year. Arizona Navigable Stream Adjudication Commission 42. As session law, continue to allow use of the Water Banking Fund for the commission’s legal obligations. Arizona State Parks Board 43. As session law, require the board to allocate $692,100 from the Off-Highway Vehicle Recreation Fund for the Great Western Trail instead of the agency operating budget. The agency's operating budget is increased by a corresponding $692,100 from the State Parks Revolving Fund. Department of Water Resources 44. As session law, continue to allow the department’s Water Protection Fund Commission to spend up to $336,000 on administrative functions out of their unobligated balances in FY 2020. 45. As session law, continue to allow the department non-municipality special fee authority, including an intent clause that limits additional revenue up to $100,200, and exempt the department from rulemaking for this purpose. 4 2 3 9 6 7 12 HEALTH (HB 2754/SB 1553) Section AHCCCS Rates and Services 46. As session law, continue the FY 2010 risk contingency rate reduction for all managed care organizations. Continue to impose a reduction on funding for all managed care organizations administrative funding levels. 47. As permanent law, repeal the requirement that AHCCCS freeze enrollment in the KidsCare program when the match rate falls below 100%. Restores AHCCCS authority to freeze enrollment if the director determines that state and federal funding for the program is insufficient. Counties 48. As session law, set the FY 2020 county Arizona Long Term Care System (ALTCS) contributions at $290,276,100. 49. As session law, set the County Acute Care contribution at $46,161,700. This amount includes an inflation indexing of the Maricopa County contribution as required by Laws 2005, Chapter 328. 50. As session law, continue to exclude Proposition 204 administration costs from county expenditure limitations. 30 16 10 11 14 15 51. As session law, continue to require AHCCCS to transfer any excess monies back to the counties by December 31, 2020 if the counties’ proportion of state match exceeds the proportion allowed in order to comply with the Federal Affordable Care Act. Hospitals 52. As session law, continue to establish FY 2020 disproportionate share (DSH) distributions to the Maricopa Special Healthcare District (MIHS), the Arizona State Hospital, private qualifying disproportionate share hospitals, and Yuma Regional Medical Center. Keep the MIHS distribution of $113,818,500 in FY 2020. 53. As session law, continue to require AHCCCS to give priority to rural hospitals in Pool 5 distribution, and allow MIHS to be eligible for Pool 5 allocations. Permit local jurisdictions to provide additional local match for Pool 5 distributions. Available Funding 54. As session law, continue to state that it is the intent of the Legislature that AHCCCS implement a program within its available appropriation. Reports 55. As permanent law, continue to require AHCCCS and the Department of Health Services (DHS) to submit a joint report to the Legislature and the Governor by January 2 of each year on hospital costs and charges. This provision had previously been authorized as session law. 56. As permanent law, continue to require AHCCCS to report to JLBC on or before January 2 of each year on the availability of inpatient psychiatric treatment and "psychiatric boarding" in emergency rooms for children and adults enrolled in Arizona’s Regional Behavioral Health Authorities. This provision had previously been authorized as session law. Department of Economic Security 57. As session law, notwithstand A.R.S. § 36-108.01 in order to allow the Department of Economic Security to use the Health Services Lottery Fund for a Division of Developmental Disabilities (DDD) State-Only shortfall in FY 2019. Department of Health Services 58. As permanent law, continue to require all cities and counties to pay 100% of cost of Restoration to Competency treatment. Allow counties to use any source of county revenue to make the transfers. This provision had previously been authorized as session law. 59. As permanent law, continue to notwithstand A.R.S. § 36-773 to permit DHS to use Tobacco Tax and Health Care Fund - Health Research Account for Alzheimer’s disease research. This provision had previously been authorized as session law. 60. As session law, continue to notwithstand A.R.S. § 5-572 and A.R.S. § 36-108.01 to allow the Health Services Lottery monies to be used for homeless pregnant women services. 61. As session law, continue fee raising authority and an exemption relating to establishing fees for the Bureau of Radiation Control in FY 2020. Includes an intent clause that limits additional revenues to $1,900,000. 62. As permanent law, continue to allow DHS to use the Disease Control Research Fund for AIDS reporting and surveillance. This provision had previously been authorized as session law. 63. As permanent law, require the Department of Health Services to license a new class of secure behavioral health residential facilities that provide 24-hour onsite supervision to individuals with a serious mental illness who are chronically resistant to treatment and are placed in the facility pursuant to a court order. 64. As permanent law, only permit unlicensed behavioral health workers ages 18-20 to serve individuals receiving outpatient behavioral health services. Inpatient behavioral health care would require unlicensed behavioral health workers to be age 21 or older. 31 13 12 12 19 9 9 18 1 8 18 17 2 4,5,6,7 3 HIGHER EDUCATION (HB 2750/SB 1552) Section Community Colleges 65. As session law, continue to suspend the Operating State Aid funding formula in FY 2020 for Maricopa and Pima Counties. 66. As session law, continue to suspend Science, Technology, Engineering and Mathematics and Workforce Programs funding formula for FY 2020 and specify the funding in the General Appropriation Act, which for Pinal would again equal $96,500. 67. As permanent law, prohibit community college district employees from being compensated for work performed on behalf of an elected employee representative organization. Universities 68. As session law, continue to suspend the statutory requirement that the state provide a 2:1 ratio of state funding to student fees deposited into Arizona Financial Aid Trust (AFAT). 69. As permanent law, amend A.R.S. § 35-146 to allow each university to retain revenue from tuition and fees instead of remitting those monies to the State Treasurer. 70. As permanent law, expand eligibility for the Arizona Teachers Academy to include resident and non-resident university students enrolled in education and non-education majors and community college students enrolled in a post-baccalaureate teacher certification program. 71. As permanent law, in addition to STEM programs, require the Arizona Teachers Academy to include accelerated models for special education and students committed to teaching in critical need areas of the state. 72. As permanent law, set Arizona Teachers Academy scholarships at $5,000 per university student and $3,000 per community college student, and require scholarships be awarded after all other gift aid received. 73. As permanent law, require ABOR, in consultation with eligible postsecondary institutions, to develop centralized administrative processes for the Arizona Teachers Academy. 74. As permanent law, require ABOR to establish criteria for distributing monies appropriated for the Arizona Teachers Academy to eligible institutions. 75. As permanent law, limit expenditures of monies appropriated for the Arizona Teachers Academy to scholarships, induction services, marketing and promotion and administration of the program. Caps spending for administrative and marketing expenses at 3%. 76. As permanent law, cap tuition waivers for the Arizona Teachers Academy at 4 years (8 semesters) for university students and 2 years (4 semesters) for community college students in post-baccalaureate programs. 77. As permanent law, require non-Education majors in the Arizona Teachers Academy to complete one or more teacher preparation courses prior to graduation. 78. As permanent law, not allow universities and community colleges to charge the remaining balance of tuition and fees if the waiver provided does not cover the total cost. 79. As permanent law, require that tuition waivers for Arizona Teachers Academy enrollees be net of any institutional aid, federal grants, and other scholarships received. 80. As permanent law, require the Arizona Teachers Academy teaching commitment (one year of support for every one year of teaching) for students concurrently teaching and receiving support to begin after completion of the program. 81. As permanent law, require ABOR to establish repayment processes for students who fail to meet Arizona Teachers Academy service requirements. 32 7 6 1 5 4 2 2 2 2 2 2 2 2 2 2 2 2 82. 83. 84. 85. 86. As permanent law, establish the non-appropriated Arizona Teachers Academy Fund consisting of legislative appropriations. The fund will be administered by ABOR and the monies in the fund will be non-lapsing. As permanent law, require the State Treasurer, by August 1 of each year, to reduce the Arizona Teachers Academy appropriation by the amount of unexpended monies in the Arizona Teachers Academy Fund from the prior fiscal year. As permanent law, require ABOR to submit a report to JLBC and OSPB by March 1 of each year including information on Arizona Teachers Academy enrollment and the number of graduates receiving induction services in the current academic year, and information for monies committed from the fund in the current fiscal year. As permanent law, require ABOR to include in the existing Arizona Teachers Academy annual report information on the total number of students enrolled by year of college enrollment and post-baccalaureate status, the number of students receiving induction support services, the number of student who have completed repayment agreements, and ABOR's annual funding distribution by eligible institution. Changes annual report date from July 1 to September 1. As permanent law, repeals a section of the FY 2019 Higher Education BRB that continued the Arizona Teachers Academy after the 2017-2018 academic year. The FY 2020 Higher Education BRB makes the program permanent. 2 2 2 2 3 HUMAN SERVICES (HB 2755/SB 1554) Section Department of Child Safety 87. As permanent law, continue to require the department to report to the JLBC on or before February 1 of each year with the Early Childhood Development and Health Board on collaborative efforts on child welfare issues. This provision had previously been authorized as session law. Department of Economic Security 88. As session law, continue to require recipients of Temporary Assistance for Needy Families (TANF) Cash Benefits to pass a drug test in order to be eligible for benefits if the Department of Economic Security (DES) has reasonable cause to believe that the recipient uses illegal drugs. 89. As permanent law, continue to permit DES to reduce income eligibility levels for all child care programs. Require DES to report to the JLBC within 15 days of any change in levels. This provision had previously been authorized as session law. 90. As session law, continue to allow the Special Administration Fund to be used for purposes other than administration of unemployment benefits. 91. As permanent law, repeal the requirement in A.R.S. § 36-2960B to provide an inflation adjustment to the appropriation for DD High Cost/High Need client services. 92. As permanent law, increase the annual fee for never-assisted child support cases from $25 to $35 pursuant to federal Bipartisan Budget Act of 2018. Department of Housing 93. As permanent law, allow the Department of Housing to expend Housing Trust Fund monies on constructing or renovating facilities and housing assistance, including support services, for individuals with a serious mental illness and who are chronically resistant to treatment. 33 1 7 5 6 3 2 4 K-12 EDUCATION (HB 2749/SB 1551) Section Department of Education Formula Requirements 94. As permanent law, increase the base level (A.R.S. § 15-901B2), the transportation funding levels (A.R.S. § 15-945A5) and the charter school “Additional Assistance” amounts (A.R.S. § 15-185B4) by 2.0% for standard inflation. 95. As permanent law, increase the base level by an additional $111.16 (2.8%) to incorporate into Basic State Aid $164,700,000 for teacher salary increases already appropriated for FY 2020 by Section 136 of the FY 2019 General Appropriation Act. 96. As permanent law, modify the Basic State Aid funding formula for education programs in county juvenile detention centers to increase the "base amount" to $100,000 per county versus $20,000 currently and the "variable" amount per student within each county program to $25 per day versus $15 per day currently. As permanent law, require any excess monies in a county's Detention Center Education Fund to be used to supplement classroom spending. 97. As session law, amend Laws 2018, Chapter 285, Sections 27 and 28 to reduce the District Additional Assistance suspension for FY 2020 by an additional $(64,366,500) and the Charter Additional Assistance suspension for FY 2020 by an additional $(3,407,200). Results-Based Funding 98. As session law, allocate Results-Based Funding using the same formula that was used in FY 2019, but based on AzMERIT test results from spring 2018 rather than spring 2017. Expands eligibility to schools with AzMERIT test results in the top 10% currently to the top 13% for schools with less than 60% of students eligible for free and reduced-price lunch (FRPL) and to the top 27% for schools with more than 60% FRPL eligibility. As session law, establishes per-pupil funding levels of $225 for qualifying schools with less than 60% FRPL eligibility and for schools with more than 60% FRPL eligibility that have AzMERIT results in the top 27%, but not the top 13% of schools with more than 60% FRPL eligibility. Qualifying schools with greater than 60% FRPL eligibility and with AzMERIT results in the top 13% with more than 60% FRPL eligibility and alternative schools with an A rating in 2014 would receive $400. Under permanent law, the Results-Based Funding instead would be distributed to schools with a letter grade A under the A-F performance rating developed by the State Board of Education. 99. As permanent law, exclude from free and reduced-price lunch eligibility percentage calculations students who are not eligible to be included in a school's student count (primarily preschool students). Clarifies allowable uses of program funding, and adds reporting requirements. Other 100. As session law, continue stating that it is the intent of the Legislature and Governor that school districts increase the total percentage of classroom spending in the combined categories of instruction, student support and instructional support as defined by the Auditor General. 101. As permanent law, make the American Civics Education Fund a non-appropriated fund to eliminate the need for the Legislature to appropriate monies both into and out of it. 102. As permanent law, delete the definition of "base level" for FY 2017 and prior years from A.R.S. § 15-901B2, as they are no longer needed. (A new definition of "base level" is added to A.R.S. § 15-901B2 each year for the upcoming fiscal year.) 103. As permanent law, replace obsolete references to the Homeowners Rebate percentage in A.R.S. § 15-972B with the current rebate percentage of 47.19% that was established by DOR for FY 2017 and subsequent years pursuant to Laws 2011, 2nd Special Session, Chapter 1, Section 127. 104. As permanent law, update the Qualifying Tax Rate and State Equalization Tax Rate cited in A.R.S. § 41-1276 to reflect the Truth in Taxation rates established for FY 2020 under it. 105. As permanent law, amend A.R.S. § 15-249.06B and F to make the annual report on the College Credit by Examination Incentive Program not subject to JLBC review. 34 3,7,9 7 8 16,17 22 5 23 18 7 10 14 4 106. As permanent law, modify A.R.S. 15-249.06 to require ADE to make payments to schools no later than March 1 each year. Permit schools to appeal allocation of bonus monies no later than August 1 each year. Permit ADE to withhold up to $10,000 of bonus monies to address allocation appeals. 107. As permanent law, amend A.R.S. § 15-154 to allow school safety monies to also be used for school counselors or social workers. 108. As permanent law, establish the Arizona Industry Credential Incentive Program to provide awards of up to $1,000 per student for school districts, charter schools or career and technical education districts for high school graduates who obtain a certification, credential, or license that is accepted by a vocation or industry through a career and technical education program. Establishes the Industry Credentials Incentive Fund to be administered by ADE. 109. As permanent law, require the Office of Economic Opportunity to provide a list to the Department of Education by September 1st annually that identifies and ranks the top occupations in each industry that addresses a critical statewide, regional or local economic need. Following publication of the September 1st list, ADE shall crosswalk the in-demand list to ADE's credential list and by February 1st, the Quality Skills Commission shall review the list. 110. As permanent law, require ADE by March 1st annually to publish a list of CTE certificates, credentials or licenses qualifying for a $1,000 award from the Arizona Industry Credential Incentive Program. Requires the department to report by February 1st annually to the President of the Senate, the Speaker of the House, the Governor and the Secretary of State on student participation in the Arizona Industry Credential Incentive program and the distribution of awards by school. 111. As permanent law, allow Arizona Industry Credential Incentive Program awards to school districts, charter schools, and career and technical education districts to be expended on instructional costs and professional development for a CTE teacher, offset the costs of the certification to the student, development costs related to creating or expanding an approved site of a certificate, credential license career and technical program courses, instructional hardware, software or supplies required for the certification, and career exploration and awareness activities for parents students and the community. 112. As permanent law, require the Department of Education to submit to the JLBC annually by March 1 the list of career technical education credentials qualifying for funding under the Arizona industry credential incentive program for the following fiscal year. 113. As session law, amend Laws 2017, Chapter 284 to 1) extend the High-Quality Teacher Professional Development Pilot Program, which provides scholarships and grants of up to $2,000 for teachers in high-need content areas, until July 1, 2025 versus July 1, 2022 currently, and 2) allow the Department of Education to retain up to 3% of monies appropriated for the pilot program to offset administrative costs. 114. As session law, notwithstand A.R.S. §15-185 to require the Department of Education to allocate the full amount of the small school weight through FY 2020 to charter schools sponsored by entities other than the State Board for Charter Schools. Prohibits the department from seeking repayment of small school weight monies paid to such schools in prior years. The department would pay 67% of the small school weight to such schools in FY 2021 and 33% of the weight in FY 2022. Addresses ASU Preparatory Charter School. 115. As permanent law, set the K-12 State Equalization Tax Rate (SETR) for a county for a given fiscal year at the lesser of the “normal” statutory rate or the rate that would have generated for its school districts collectively in the prior fiscal year the amount needed to backfill any of their K-12 formula costs not funded by Qualifying Tax Rate (QTR) revenues. 116. As session law, give Duncan Unified and Blue Elementary additional “budget capacity” (spending authority) for FY 2020 and require them to fund that additional budget capacity with carry-forward monies rather than through tax rate increases. The additional capacity could only be expended upon capital. 117. As session law, establish a 3-year community schools pilot program within ADE. The department shall award 3-year grants of up to $85,000 annually to be used by the awarded school to hire a full-time community school coordinator and develop and implement a community-schools plan. 35 4 1,2 6 6 6 6 6 15 19 11 20 21 School Facilities Board 118. As permanent law, require SFB to report to JLBC within 30 days of making a transfer into the Emergency Deficiencies Corrections Fund. 119. As permanent law, require the SFB to fund the construction of new schools, if needed, in 2 years for an elementary school, middle school or high school. 120. As permanent law, at the point when the SFB approves the distribution of new school construction funding, allow the SFB to decline a portion of the funding if the square footage is no longer needed due to revised enrollment projections. 121. As permanent law, change the date, from July 1 to September 1, for school districts to submit their capital plans to SFB. 122. As permanent law, change the date, from December 1 to December 15, for the SFB to approve new school construction projects. 12 13 13 13 13 REVENUE (HB 2756/SB 1555) ` Statewide 123. As permanent law, require state agencies to include cost estimates associated with local minimum wages exceeding the statewide minimum wage in their budget submissions. The Legislature may allocate an amount to be collected by ADOA from counties, cities, and towns that raise their minimum wage above the statewide minimum wage, which would reimburse the state for cost increases of state services resulting from local minimum wages. Counties, cities, and towns that do not comply with ADOA's collection would have the monies withheld from their Transaction Privilege Tax (TPT) distributions. Department of Agriculture 124. As session law, continue fee changing authority and an exemption relating to establishing fees for the Arizona Department of Agriculture in FY 2020. The bill continues an intent clause that limits additional revenues to $357,000. Counties and Cities & Towns 125. As session law, continue to allow counties with a population below 250,000 in the 2010 decennial census to use any source of county revenue to meet a county fiscal obligation for FY 2020, up to $1,250,000 of county revenue for each county. Requires counties using this authority to report to the Director of JLBC on the intended amount and sources of funds by October 1, 2019. Department of Gaming 126. As session law, continue to set the Racing Wagering Assessment at 0.5% in FY 2020 only. Department of Insurance 127. As session law, continue to suspend the requirement that fees collected by the department be between 95% and 110% of the department’s appropriation. Department of Revenue 128. As session law, continue legislative intent statement that local fees to fund the Department of Revenue (DOR) are not to exceed $20,755,835 and are to be allocated between cities and towns, counties, the Maricopa Association of Governments and the Pima Association of Governments based on the prorated share of all revenues distributed to them (excluding Highway User Revenue Fund money). 36 Section 1,2 8 9 6 7 10 129. As permanent law, expand the definition of "multistate service providers" used to determine the allocation of the sales of services for corporate income tax purposes to include a taxpayer with more than 2,000 employees in this state and that derives more than 85% of its sales from support services provided to a regionally accredited institution of higher education. Addresses Grand Canyon University. 130. As permanent law, require that licensed escrow agents file an information return for sales of real property located in Arizona with the Department of Revenue. Licensed escrow agents would be required to submit this return to the Department of Revenue by March 31 for sales closed during the prior calendar year. This provision is intended to increase compliance for capital gains taxes owed by non-residents that sell real estate in the state. 4,5 3 OMNIBUS TAX PROVISIONS (CONFORMITY/WAYFAIR) (HB 2757/SB 1546) Tax Conformity/Wayfair 131. As session law, conforms Arizona to the federal definition of adjusted gross income as of January 1, 2018 for tax year 2018, and January 1, 2019 for tax year 2019. 132. As permanent law, reduces the number of tax brackets from 5 to 4 and reduces tax rates as follows: 2,12,30,31 17 Marginal Income Tax Rate/Bracket Comparison Brackets – Current Law $0 - $10,600 $10,601 – 26,500 $26,501 - $53,000 $53,001 - $159,000 $159,001 and over Rates – Current Law 2.59% 2.88% 3.36% 4.24% 4.54% Proposed Brackets $0 - $26,500 Collapsed $26,501 - $53,000 $53,001 - $159,000 $159,001 and over Proposed Rates 2.59% 2.59% 3.34% 4.17% 4.50% 133. As permanent law, remove the Arizona subtraction from taxable income for lottery winnings. 134. As permanent law, increases the standard deduction as follows and indexes the standard deduction for inflation. 18,19,21 23 Standard Deduction Comparison Filing Status Single/Married Filing Separate Single Head of Household Married Filing Jointly Standard Deduction Current Law $5,312 $10,613 $10,613 Standard Deduction Proposed $12,000 $18,000 $24,000 135. As permanent law, eliminates the personal and dependent exemptions shown below. 3,15,16,20,22, 24,26,28,29 Eliminated Exemptions Personal Exemption, No Dependents Personal Exemption, Married with Dependents Dependent Exemption 37 $2,200 $6,600 $2,300 136. As permanent law, allows taxpayers that take the standard deduction to increase their standard deduction by 25% of their charitable contributions that otherwise would have been deductible had they itemized their tax returns. 137. As permanent law, establishes a dependent tax credit of $100 for each dependent under 17 years old and $25 for each dependent age 17 and above. This credit is to be phased out for singles with over $200,000 of adjusted gross income and $400,000 for married couples filing jointly. 138. As permanent law, establish as of October 1, 2019, the economic nexus thresholds under which an out-of-state business be required to collect and remit tax on retail sales in Arizona. If the out-of-state business does not conduct sales through a marketplace facilitator, economic nexus applies if sales in Arizona exceed $200,000 in calendar year 2019, $150,000 in calendar year 2020, and $100,000 in calendar year 2021 and thereafter. If the out-of-state business is a marketplace facilitator, economic nexus applies if sales in Arizona from the marketplace facilitator's own business or on behalf of at least one marketplace seller exceed $100,000 in the calendar year. 139. As permanent law, require municipal ordinances and other local laws related to the taxation of retail sales be superseded by the state's transaction privilege tax statutes for the retail classification. 140. As permanent law, provides cities and towns the option to impose tax on the sales of food for home consumption, textbooks sold at bookstores, livestock and poultry feed sold at feed stores, nonmetalliferous mined materials sold at retail, and works of fine art. 141. As session law, provides that the Legislature will not move any sales tax classifications other than retail from the Model City Tax Code to state statute for a period of 5 years from the effective date of the act. 38 14,23 13,27 1,4,5,6,7,8,32, 33 10,11 9,11 33 FY 2020 MAJOR FOOTNOTE CHANGES The Baseline includes the following major additions, deletions or modifications of footnotes. This list does not include footnotes pertaining to one-time reports or appropriations or footnote changes conforming to enacted policy. Arizona Department of Administration 1. Adds footnote extending the lapsing date of the FY 2017 appropriation for the Department of Corrections automation project appropriation through FY 2020. Adds footnote extending the lapsing date of FY 2018 automation project appropriations to FY 2020. 2. Deletes footnote that limits the subsidy that the department may provide for public transit opportunities to 50%. Adds footnote requiring the department to report on pilot projects implemented in FY 2020 with those monies. 3. Adds footnote to restrict to $10.42 per user per month the amount that the department may charge for enterprise email and calendar service. 4. Adds footnote requiring ADOA to report to the JLBC 10 days prior to completing the 2010 B Lease-Purchase payoff. 5. Adds footnote specifying that the department shall distribute monies in the Public Safety Regional Communications line item to City of Sierra Vista for technology infrastructure maintenance at the Southeastern Arizona Communications Center. 6. Modifies footnote requiring the department to report semiannually the status of all capital projects and expenditures rather than just building renewal projects. (Capital) 7. Adds footnote extending the FY 2019 Capitol Mall Consolidation Fund appropriation through FY 2021. (Capital) 8. Adds footnote that conditions the availability of the appropriation for a second State Route 24 Ellsworth Road traffic interchange bridge overpass structure on the Maricopa Association of Governments (MAG) including the first bridge overpass structure in its Regional Transportation Plan: Freeway Program in the ADOT Five Year Program by June 30, 2020. If MAG does not include the project in its plan, the appropriation would lapse on June 30, 2020 (Capital) 9. Adds footnote that conditions the availability of the appropriation for the I-40 Kingman Interchanges on the City of Kingman raising sufficient funds for the remainder of the project budget otherwise the appropriation lapses on June 30, 2024. (Capital) Department of Agriculture 10. Adds footnote specifying that $137,000 is appropriated from the General Fund for personal services, employee-related expenditures, and salary increases and related expenditures for dairy inspectors. Attorney General 11. Adds footnote appropriating $950,000 in FY 2021, $2.3 million in FY 2022, and $2.3 million in FY 2023 from CPRF. 12. Adds footnote requiring the Attorney General to submit a report on its distribution of police equipment grants to the President of the Senate, Speaker of the House, JLBC Staff, and OSPB Staff on or before March 1, 2020. 13. Adds footnote requiring the Attorney General to submit a report for review to the JLBC on its expenditure plan for the Arizona Peace Officer Memorial Fund prior to expenditure. Department of Child Safety 14. Adds footnote requiring the Department of Child Safety to report to JLBC by January 2, 2020 on its efforts to implement the federal Family First Prevention Act of 2018. The report shall provide information, including any fiscal impacts, associated DCS’ efforts to address federal funding changes for congregate care placements and in-home preventive services. 39 3 8 8 116 8 CO 2 CO 29 CO 19 CO 22 11 14 14 14 19 15. Modifies footnote for the Kinship Stipend to require the department to provide the stipend to all unlicensed kinship caregivers without requiring the caregiver to file an application. 19 Arizona Commerce Authority 16. Adds footnote appropriating $3 million to the ACA in FY 2020 for rural broadband development. Requires the ACA report to the joint legislative budget committee on or before January 31, 2020 on its plan for distributing these grants. The appropriation is non-lapsing. 122 Community Colleges 17. Adds footnote requiring that the Dine board of regents submit a report by October 15, 2020 which details the course completion rate for students who received remedial education during the 19-20 academic year. 20 Department of Corrections 18. Modifies footnote establishing annual bed capacity report to require ADC to provide rationale for 1) closing permanent beds rather than temporary beds or 2) opening new beds. 19. Adds footnote requiring department to report on inmate healthcare performance measures on or before August 1, 2019 and February 1, 2020. 20. Modifies footnote requiring the department to report semiannually the status of all capital projects and expenditures rather than just building renewal projects. (Capital) 21. Adds footnote specifying that the appropriation includes $5,083,500 from the State General Fund to provide a 10% salary adjustment to correctional officers at private prisons. 22. Adds footnote delineating the department's lump sum includes $384,534,400 for personal services and $240,063,200 for employee related expenditures. Requires the department to submit an expenditure plan for JLBC review prior to spending these monies on non-personal services or employee related expenditures. 23. Adds footnote requiring department to submit a report on quarterly benchmarks for correctional officer staffing for JLBC review 24. Modifies existing footnote requiring the department to submit a monthly on month and year-to-date expenditures to include correctional officer staffing levels. 25. Adds footnote requiring the department to obtain approval from the Arizona Strategic Enterprise Office and the Information Technology Authorization Committee prior to using any monies for the replacement of the adult inmate management system 26. Adds footnote requiring the department to submit an expenditure plan to the JLBC for review Prior to the expenditure of any monies for the replacement of the adult inmate management system. he expenditure plan shall include the project cost, deliverables, timeline for completion and method of procurement consistent with the department's prior reports for its appropriations from the Automation Project Fund Board of Cosmetology 27. Adds footnote extending annual leave payout line item appropriations through FY 2023. Office of Economic Opportunity (Water Infrastructure Finance Authority) 28. Adds footnote requiring WIFA to submit a report annually on or before December 31 to the JLBC on the allocation of funds from the Small Drinking Water Systems Fund. The report shall be submitted until the funds are exhausted. 40 24 24 CO 2 24 24 24 24 24 24 25 123 Department of Economic Security 29. Modifies footnote to authorize DES to receive a loan from the budget stabilization fund on or after April 1, 2020 to provide funding for reimbursement of federal grants as part of the closing process for fiscal year 2020. DES must notify JLBC and OSPB before using the loan authority. The loan must be repaid on or before September 1, 2020. Department of Education 30. Modifies footnote to include the Special Education Fund line item as another potential source of, and recipient of, monies in FY 2020 to resolve FY 2019 formula funding shortfalls. 31. Adds footnote appropriating $30 million eliminate the K-12 rollover in FY 2022 for districts with a student count of less than 1,350 pupils. 32. Adds footnote that makes non-lapsing until July 1, 2022 the $50,000 state General Fund appropriation to the department that is for distribution to any new unified school created as the result of an election in 2019 or 2020 pursuant to A.R.S. §15-459, Subsection F. 33. Adds footnotes stipulating that state General Fund monies appropriated in FY 2020 for schools on proving grounds 1) may only be used to demolish an existing or former school that is located on a proving ground operated by the United States Army or to construct a new replacement school on that same proving ground, 2) may be spent only if the United States Department of Defense provides matching monies equivalent to 80% of project costs, and 3) do not lapse until the until the project is completed or abandoned unless no expenditure or encumbrance has been made by October 1, 2029, and 4) revert to the state General Fund on October 1, 2029 if unexpended and unencumbered. Department of Forestry and Fire Management 34. Adds footnote stipulating that monies appropriated for the Taylor Fire Training Center line item shall be distributed to the Navajo County Community College District to fund a public safety and emergency training facility. The facility shall be available to both public and private entities for training. The appropriation is non-lapsing. 35. Adds footnote appropriating $1,000,000 from the General Fund to the Nonnative Vegetative Species Eradication Fund in FY 2021 through FY 2029. Monies from the line item are used to provide grants for nonnative vegetative species eradication projects that will assist in preventing fire and flooding. 36. Adds footnote making the appropriation for the Mount Lemmon Fire District non-lapsing through December 31, 2021. Board of Funeral Directors and Embalmers 37. Adds footnote extending FY 2019 appropriation for document digitization services through FY 2020 Game and Fish Department 38. Modifies footnote requiring the department to report semiannually the status of all capital projects and expenditures rather than just building renewal projects. (Capital) Department of Health Services 39. Continues footnote requiring DHS to distribute biomedical research support funding to a nonprofit medical research institute specializing in genomic technologies and sequencing to clinical care and requires the recipient to commission an annual audit of expenditures to submit to the department by February 1 each year. 41 106 33 150 127 126 41 132 131 108 CO 2 47 40. 41. 42. Adds footnote specifying that $700,000 is appropriated from the General Fund to the department to establish a community-based primary care program in a geographically isolated area of the state which is medically underserved, has a health professional shortage, and a population less than 15,000 persons. Specifies the services the program should provide. Adds footnote requiring DHS to distribute $1.5 million to Benson Hospital and Northern Cochise Community Hospital to maintain emergency department and trauma services. Adds footnote specifying that the appropriation for Alzheimer's Disease Research shall be distributed to a nonprofit that has been headquartered in the state for at least 10 years and has participating member institutions that conduct research and education. Department of Housing 43. Adds footnote specifying that $3,500,000 of the appropriation for the Housing Trust Fund Deposit line item shall be expended on constructing or renovating facilities and housing assistance, including support services, for persons determined to be seriously mentally ill and to be chronically resistant to treatment. Judiciary 44. Modifies footnote regarding county probation officer spending to delete duplicative provision. 45. Adds footnote specifying that the sum of $1,146,400 is appropriated for salary adjustments for the Administrative Office of the Courts. It is the intent of the Legislature that this amount shall not be annualized in future years. 46. Modifies a footnote to require JLBC review of Administrative Office of the Court's report on county approved-salary adjustments. Legislature- Auditor General 47. Adds footnote allowing the Auditor General to use balance of $31,200 from the FY 2014 appropriation for DCS-affiliated consultant contract (Laws 2014, 2nd Special Session, Chapter 2, Section 9) for general operating expenses in FY 2020. 48. Adds footnote requiring the Auditor General to 1) Identify by January 1, 2020, in collaboration with the Arizona Commerce authority and businesses, industry and higher education leaders, the industry certifications earned by Career Technical Education (CTED) students that are most associated with multi-year Career Technical Education programs that successfully prepare students for jobs in high demand technical fields. 2) Evaluate by December 1, 2020 the effectiveness of CTED districts in preparing students for jobs in high demand technical fields. Arizona State Parks Board 49. Adds footnote requiring the Arizona State Parks Board to report semiannually the status of all capital projects and expenditures. (Capital) 50. Adds footnote extending the $1.3 million FY 2018 appropriation for capital improvements and $4.0 million FY 2018 appropriation for Rockin' River project. (Capital) 51. Adds footnote specifying that the appropriation for the Arizona Trail is for employment of youth conservation corps to maintain the trail. Requires the Arizona State Parks Board to submit an expenditure plan for review to the JLBC prior to expenditure. Department of Public Safety 52. Adds footnote requiring the department to submit an expenditure plan for the Peace Officer Training Equipment to JLBC for review prior to any expenditures in FY 2020. 53. Adds footnote requiring DPS to report to the JCCR on a cost comparison between the provision of housing versus a housing allowance for state troopers stationed in remote areas. (Capital) 42 134 133 47 51 54 54 54 2 147 CO 27 CO 24 71 80 CO 15 School Facilities Board 54. Modifies footnote stipulating the FY 2020 New School Facility appropriation shall be used for facilities and land costs for school districts that received final approval from the board on or before September 1, 2019. Secretary of State 55. Adds footnote extending the FY 2018 appropriation for the Helping America Vote Act through FY 2020. Department of Transportation 56. Adds footnote requiring ADOT to report to JLBC Staff by December 31, 2019 on the status of all Aviation Grant awards and distributions. (Capital) 57. Modifies footnote to require ADOT semiannual building renewal status update to also include all non-highway construction capital projects. (Capital) 58. Adds footnote extending FY 2018 appropriation to equip and furnish a new Flagstaff office building through FY 2020. 59. Adds footnote requiring ADOT to distribute $10,000,000 to counties with a population less than 400,000 persons of which $500,000 is distributed to each applicable county and the remainder of the monies apportion based on population. Requires ADOT to distribute $8,000,000 to cities and towns located exclusively in applicable counties of which $100,000 is distributed to each city or town and the remainder of monies apportioned based on population. Population shall be based on the 2017 population estimates from the United States Census Bureau (Capital) State Treasurer 60. Upon completion of a request for proposal of the General Ledger Information Technology System, the State Treasurer shall report to the JLBC on the total cost of development and ongoing annual operating costs of the system. 61. Adds footnote requiring the State Treasurer to report to the Joint Legislative Budget Committee Staff and the Office of Budgeting and Strategic Planning on its current fiscal year and estimated next fiscal year expenditures of interest earnings spent pursuant to A.R.S. 35-315 and A.R.S. 35-318 for its banking service contract, external investment management agreement, administrative and information technology costs, and any other costs. The report is due on or before June 30, 2019 and June 30, 2020. Universities 62. Adds footnote requiring the medical research foundation to submit an expenditure and performance report to Northern Arizona university. The university shall submit the report to the Joint Legislative Budget Committee on or before February 1, 2020. The report shall include the type and amount of expenditures from all state sources of monies, grants received, and performance measures 63. Adds footnote specifying that $160,000 is appropriated to ABOR to distribute to universities that maintain and operate an intercollegiate adaptive athletics program. Monies may be spent only: 1) When universities collect matching funds, 2) on scholarships, equipment, travel expenses and tournament fees for participants in the program. Monies cannot be spent on administrative costs. 64. Adds footnote specifying that monies in the Washington DC Internship line item shall by distributed by ABOR equally to the universities to provide student internships in Washington D.C. in partnership with a third-party organization selected by ABOR. 65. Continues footnote requiring each university to report to the JLBC on or before August 1, 2019 on the intended use of one-time appropriations. Prior to any expenditure of monies for capital improvements, each university shall submit the scope, purpose, and estimated cost of the capital improvements to the JCCR for review. 43 86 111 CO 26 CO 2 141 CO 24 92 92 96 94 94 142 Department of Veterans' Services 66. Adds footnote specifying that the suicide prevention appropriation includes funding for distribution to a nonprofit veterans' services organization that provides services related to reducing suicides among Arizona's military and veteran population. Requires department to submit an expenditure plan including the status of non-state matching grant monies to JLBC for review. 67. Adds footnote specifying that the trauma treatment services appropriation includes funding for grants to contractors who provide trauma treatment service training to specified licensed health professionals. Statewide (Statewide Adjustments) 68. Adds footnote allowing the JLBC to allocate General Fund and Other Fund statewide adjustments for adjustments to CORP, EORP, and state agency retirement. 69. Adds footnote allowing the JLBC to allocate General Fund and Other Fund statewide adjustments for adjustments to state agencies relocating to and within state-owned and lease-purchase buildings. 70. Adds footnote allowing the JLBC to allocate General Fund and Other Fund statewide adjustments for adjustments to agency rent. The rate increases from $16.08 to $17.87 per square foot for office space and from $5.79 to $6.43 per square foot for storage space. 71. Adds footnote allowing the JLBC to allocate General Fund and Other Fund statewide adjustments for adjustments for shared services for agencies located in the 1740 W. Adams building and shared administrative services. 72. Adds footnote allowing the JLBC to allocate General Fund and Other fund statewide adjustments for employer health insurance contribution adjustments. The adjustments include 1) a one-time reduction to employer contribution rates. and 2) new a one-time increase employer contribution rates. Consistent with the FY 2019 statewide allocation, the JLBC shall use the overall allocation of General Fund and appropriated tuition for each university when determining that university's specific adjustment. 73. Adds footnote allowing the JLBC to allocate General Fund and Other fund statewide adjustments for adjustments for risk management premiums. 74. Adds footnote allowing the JLBC to allocate General Fund and Other fund statewide adjustments for adjustments the Information Technology pro-rata. Statewide (Public Safety Compensation) 75. Adds footnote stating that it is the intent of the legislature that salary adjustments be allocated as outlined. 76. Requires agencies to adjust salary schedules and step plans as applicable to conform with actual salary adjustments implemented for each agency and position. Except as otherwise noted, the specific pay raise percentages are not specified. Department of Corrections Security/Correctional Officers Education/Teachers Correctional Records Counseling/Treatment Religion 10.00% 9.17% 5.00% 13.16% 5.00% Department of Juvenile Corrections Security/Correctional Officers Education/Teachers 14.90% 8.45% Department of Public Safety Sworn Positions Civilian Positions 44 10.00% 5.00% (Continued) 98 98 157 157 157 157 157 157 157 158 158 Arizona Department of Agriculture Livestock Officers Attorney General - Department of Law Investigators Department of Child Safety Caseworkers Case Aides Program Supervisors Program Specialists Entry-level Administration Corporation Commission Securities Division - Special Investigators Arizona Game and Fish Department Wildlife Law Enforcement Wildlife Managers Department of Health Services Behavioral Health Technicans Nurses Security Department of Insurance Insurance Fraud Investigators Department of Liquor Licenses and Control Investigators Arizona State Parks Board Park Ranger - Law Enforcement Officers Department of Transportation Enforcement and Compliance Officers 45 FY 2020 GENERAL APPROPRIATION ACT PROVISIONS The Baseline includes the following provisions in the General Appropriation Act. These provisions are in addition to the individual agency appropriations, but exclude supplemental appropriations, ex-appropriations, and fund transfers. New provisions in the Baseline are noted with an asterisk (*). Arizona Commerce Authority 1. As session law, in accordance with statute (A.R.S. § 43-409), allocate $15,500,000 of General Fund withholding tax revenue to the Authority in FY 2020. Counties and Cities & Towns 2. As session law, continue to appropriate $550,050 to all counties with populations under 900,000 people according to the 2010 Census. As session law, continue to appropriate additional $500,000 to Graham County. 3. As session law, in accordance with A.R.S. § 9-601, appropriate $23,499,950 from the General Fund in FY 2020 for the Phoenix Convention Center. 4. As session law, in accordance with A.R.S. § 42-5031, continue to provide sales tax revenues, estimated at $14,000,000 in FY 2020, to the Rio Nuevo Multipurpose Facility District. Department of Education 5. As session law, continue to defer $930,727,700 in Basic State Aid payments for FY 2020 until FY 2021. Appropriate $930,727,700 in FY 2021 for these deferred Basic State Aid payments. Continue to exempt school districts with less than 600 students from the K-12 rollover. Allow ADE to make the rollover payment no later than July 12, 2020. 6. As session law, continue to require school districts to include in the FY 2020 revenue estimates that they use for computing their FY 2020 tax rates the rollover monies that they will receive for FY 2020 in July 2020. Debt Service 7. As session law, appropriate $77,709,300 from the General Fund to the Arizona Department of Administration in FY 2020 for a debt service payment on the 2010 sale and leaseback of state buildings. The dollar amount consists of 2 separate appropriations of $53,699,500 and $24,009,800. The former amount reflects a reduction of $(6,399,200) from prior years due to a refinancing. Revenues 8. As session law, continue to specify revenue and expenditure estimates for FY 2019, FY 2020, FY 2021, and FY 2022. 9. As session law, continue to require the Executive Branch to provide JLBC preliminary estimates of FY 2019 ending balances by September 15, 2019. Require JLBC Staff to report to JLBC by October 15, 2019 as to whether FY 2020 revenues and ending balance are expected to change by more than $50,000,000 from budgeted projections. Statewide 10. As session law, continue to state legislative intent that all budget units receiving appropriations continue to report actual, estimated and requested expenditures in a format similar to prior years. 46 120 115 145 146 156 156 144 164 164 160 11. 12. 13. As session law, continue to require ADOA to compile a report on Full-Time Equivalent (FTE) Position usage in FY 2020 in all agencies and provide it to the JLBC Director by October 1, 2020. The Universities are exempt from the report but are required to report separately. As session law, continue to require each agency to submit a report to the JLBC Director by October 1, 2019 on the number of filled appropriated and non-appropriated FTE Positions by fund source as of September 1, 2019. As session law, continue to require ADOA to report monthly to the JLBC Director on agency transfers of spending authority from one expenditure class to another or between programs. General 14. As session law, continue to define “*” as designating an appropriation exempt from lapsing. 15. As session law, continue to define “expenditure authority” as continuously appropriated monies included in individual line items of appropriations. 16. As session law, continue to define "review by the Joint Legislative Budget Committee" as a review by a vote of a majority of a quorum of the members. 47 162 161 163 165 166 167