SB 1847

Senate Engrossed
general
  appropriations act; 2026-2027.
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
CHAPTER 126
SENATE BILL 1847
AN
ACT
amending Laws 2025, chapter 233, section
23; Appropriating monies.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Laws 2025, chapter 233, section 23
is amended to read:
Sec. 23. STATE DEPARTMENT OF CORRECTIONS
��������������������������������������������������� 2025-26
FTE positions���������������������������� 9,592.0
Operating lump sum appropriation�� $ 816,308,500
���������������������������������� $ 828,190,500
Overtime and compensatory time�������� 92,320,300
Private prison per diem�������������  269,359,200
������������������������������������� 266,956,700
Community corrections����������������� 24,330,300
Inmate health care contracted
  services�����������������������   380,978,900
������������������������������������� 371,499,400
Noncontract medication���������������� 15,000,000
Injunction-related IT
upgrades����    2,400,000
Total appropriation � state department
of
corrections ����������������������� $1,600,697,200
Fund sources:
State general fund���������������� $1,537,433,000
State education fund for
  correctional
education���������������� 736,400
Alcohol abuse treatment fund������������� 555,800
Penitentiary land fund����������������� 3,466,000
State charitable, penal and
  reformatory institutions
  land fund��������������������������� 3,733,100
Corrections fund���������������������� 35,787,600
Transition program fund���������������� 2,400,300
Prison construction and
  operations
fund�������������������� 12,500,100
Inmate store proceeds fund������������� 4,084,900
Of the amount appropriated in the operating lump sum,
$406,735,800 is designated for personal services and $234,854,700 is designated
for employee-related expenditures. The state department of corrections shall
submit an expenditure plan for review by the joint legislative budget committee
before spending these monies other than for personal services or
employee-related expenditures.
After the state department of corrections submits an
expenditure plan to the joint legislative budget committee, the department may
transfer personal services and employee-related expenditures savings from the
operating budget to the private prison per diem line item for private prison
staff stipends. The amount of any private prison staff stipend may not exceed
the amount given to department staff. The expenditure plan is not subject to
review by the joint legislative budget committee.
The state department of corrections shall submit an expenditure
plan for review by the joint legislative budget committee before spending
monies appropriated for the overtime and compensatory time line item other than
for personal services or employee-related expenditures.
Private prison vendors that contract with this state may use
staff vacancy savings to pay for overtime costs without incurring a penalty or
staffing offset.
Before placing any inmates in out-of-state provisional beds,
the state department of corrections shall place inmates in all available prison
beds in facilities that are located in this state and that house Arizona
inmates, unless the out-of-state provisional beds are of a comparable security
level and price.
The state department of corrections shall forward to the
president of the senate, the speaker of the house of representatives, the
chairpersons of the senate and house of representatives appropriations
committees and the director of the joint legislative budget committee a monthly
report comparing department expenditures for the month and year-to-date
as compared to prior year expenditures on or before the thirtieth of the
following month. The report shall be in the same format as the prior
fiscal year and include an estimate of potential shortfalls, potential
surpluses that may be available to offset these shortfalls and a plan, if
necessary, for eliminating any shortfall without a supplemental appropriation.
The report shall include the number of filled and vacant correctional officer
and medical staff positions departmentwide and by prison complex.
On or before November 1, 2025, the state department of
corrections shall provide a report on bed capacity to the joint legislative
budget committee. The report shall reflect the bed capacity for each security
classification by gender at each state-run and private institution, divided by
rated and total beds. The report shall include bed capacity data for June 30,
2024 and June 30, 2025 and the projected capacity for June 30, 2026, as well as
the reasons for any change within that time period. Within the total
bed count, the department shall provide the number of temporary and special use
beds. The report shall also address the department's rationale for
eliminating any permanent beds rather than reducing the level of temporary
beds. The report shall also include any plans to vacate beds but not
permanently remove the beds from the bed count. If the department
develops a plan after the department's November 1, 2025 report to open or close
one hundred or more state-operated or private prison rated beds, the department
shall submit a plan detailing the proposed bed changes for review by the joint
legislative budget committee before implementing these changes.
One hundred percent of land
earnings and interest from the penitentiary land fund shall be distributed to
the state department of corrections in compliance with the enabling act and the
Constitution of Arizona to be used to support state penal institutions.
On or before December 15, 2025 and July 15, 2026, the state
department of corrections shall submit a report to the joint legislative budget
committee on the progress made in meeting the staffing needs for correctional
officers. Each report shall include the number of filled
correctional officer positions, the number of vacant correctional officer
positions, the number of people in training, the number of separations and the
number of hours of overtime worked year-to-date. The report shall
detail these amounts both departmentwide and by prison complex.
Twenty-five percent of land earnings and interest from
the state charitable, penal and reformatory institutions land fund shall be
distributed to the state department of corrections in compliance with the
enabling act and the Constitution of Arizona to be used to support state penal
institutions.
Before spending any state education fund for correctional
education monies in excess of $736,400, the state department of corrections
shall report the intended use of the monies to the director of the joint
legislative budget committee.
Before implementing any changes in contracted rates for inmate
health care contracted services, the state department of corrections shall
submit its expenditure plan for review by the joint legislative budget
committee.
On or before August 1, 2025 and February 1, 2026, the state
department of corrections shall submit a report to the joint legislative budget
committee on the status of all inmate health care performance measures that are
tracked by the department for contract monitoring purposes. Each report must
include:
1. The total number of performance measures, by
facility, for which the department is not in substantial compliance.
2. An explanation for each instance of
noncompliance.
3. The department's plan to comply with the
performance measures.
On or before August 1, 2025, the state department of
corrections shall transfer to the public safety personnel retirement system via
the department of administration its estimated required annual contribution to
the corrections officer retirement plan for fiscal year 2025-2026.
The department shall report actual fiscal year 2024-2025,
estimated fiscal year 2025-2026 and requested fiscal year 2026-2027
expenditures as delineated in the prior year when the department submits its
fiscal year 2026-2027 budget request pursuant to section 35-113, Arizona
Revised Statutes.
The state department of
corrections shall use the amount appropriated in the private prison per diem
line item to pay private prison contractors for housing and providing medical
care to Arizona inmates. Before spending these monies for any other purpose,
the department shall submit an expenditure plan for review by the joint
legislative budget committee.
The amount appropriated in the injunction-related IT upgrades
line item shall be used to address information technology improvements as
required by the court in the Jensen v. Thornell inmate health
care litigation.
The state department of corrections shall use the amount
appropriated in the noncontract medication line item to purchase medications to
treat hepatitis C and for medication-assisted treatment for substance use
disorder. Before spending these monies for any other purpose, the department
shall submit an expenditure plan for review by the joint legislative budget
committee.
The $650,000 appropriated to the state department of
corrections by Laws 2023, chapter 133, section 23, in fiscal year 2023-2024 for
inmate dog training is exempt from the provisions of section 35-190, Arizona
Revised Statutes, relating to the lapsing of appropriations.
Of the amount appropriated by Laws 2024, chapter 209, section
31 for the noncontract medication line item, up to $9,500,000 may be used for
the payment of obligations incurred in fiscal year 2023-2024 for the
department's operating expenses.
The department may use the amount appropriated by Laws 2023,
chapter 133, section 23, as amended by Laws 2024, chapter 209, section 8, in
fiscal year 2023-2024 for noncontract medication to pay for fiscal year
2023-2024 department operating expenses without seeking review by the joint
legislative budget committee.
Sec. 2. Subject to
applicable laws, the sums or sources of revenue set forth in this act are
appropriated for the fiscal years indicated and only from the funding sources
listed for the purposes and objects specified. If monies from
funding sources in this act are unavailable, no other funding source may be
used.
Sec. 3. ARIZONA STATE
BOARD OF ACCOUNTANCY
��������������������������������������������������� 2026-27
FTE
positions������������������������������� 14.0
Lump sum
appropriation�������������� $ 2,257,400
Fund sources:
Board of
accountancy fund��������� $ 2,257,400
Sec. 4. ACUPUNCTURE BOARD OF EXAMINERS
��������������������������������������������������� 2026-27
FTE positions�������������������������������� 1.0
Lump sum appropriation ������������� $  217,000
Fund sources:
Acupuncture board of examiners
  fund��������������������������� $  217,000
Of the amount appropriated in the lump
sum appropriation, $50,000 may be used to pay outstanding costs of services
provided by the department of administration-central service bureau in prior
fiscal years.
Sec. 5. DEPARTMENT OF ADMINISTRATION
��������������������������������������������������� 2026-27
FTE positions������������������������������ 517.1
Operating
lump sum appropriation���� $ 97,472,700
Utilities������������������������������ 7,649,900
Arizona
financial information
  system����������������������������� 13,362,800
Risk
management administrative
  expenses��������������������������� 14,770,700
Risk
management losses and
  premiums��������������������������� 63,460,900
Workers'
compensation losses
  and
premiums����������������������� 28,741,000
Cyber
risk insurance������������������ 23,037,200
Information
technology project
  management
and oversight������������ 1,791,000
State
surplus property sales
  agency
proceeds��������������������� 1,810,000
Digital
solutions office��������������� 1,356,800
Critical
applications catalogue���������� 400,000
Cybersecurity
systems
  administration������������������������ 446,500
Enterprise
resource planning
  division���������������������������� 7,512,200
Government
transformation office����   2,093,800
State
employee professional
  development
pilot program����������� 1,000,000
Emergency
telecommunications call
  handling
services������������������� 4,000,000
Food
bank capital���������������������� 3,000,000
Elected officials' retirement plan
  offset������������������������������ 3,000,000
Small county assistance�����������    7,650,700
County support for corrections
  officer employer contributions�����   377,100
Gila county disaster relief����������� 10,000,000
County
sheriff support��������������   7,000,000
Total appropriation
� department of
administration���������������������� $299,933,300
Fund
sources:
State
general fund������������������ $ 30,435,300
Air
quality fund������������������������� 930,300
Arizona
financial information
  system
collections fund������������ 16,762,400
Arizona
highway patrol fund������������ 2,000,000
Automation
operations fund������������ 29,940,400
Capital
outlay stabilization fund����� 21,165,700
Corrections
fund������������������������� 640,100
Cyber
risk insurance fund������������� 23,037,200
Federal
surplus materials revolving
  fund���������������������������������� 473,600
Information
technology fund������������ 6,221,400
Livestock
operator fire and flood
  assistance
fund�������������������� 10,000,000
Personnel
division fund��������������� 18,612,300
Risk
management revolving fund������� 115,337,400
Special
employee health insurance
  trust
fund�������������������������� 5,746,100
Special
services revolving fund�������� 1,302,800
State
surplus materials revolving
  fund�������������������������������� 3,216,200
State
web portal fund����������������� 12,012,600
Telecommunications
fund���������������� 2,099,500
The appropriation from the automation
operations fund established by section 41-711, Arizona Revised Statutes, is an
estimate representing all monies, including balance forward, revenues and
transfers during fiscal year 2026-2027. These monies are
appropriated to the department of administration for the purposes established
in section 41-711, Arizona Revised Statutes. The appropriation is
adjusted as necessary to reflect monies credited to the automation operations
fund for automation operation center projects. Before spending any automation
operations fund monies in excess of $29,940,400 in fiscal year 2026-2027, the
department shall report the intended use of the monies to the joint legislative
budget committee.
On or before September 1, 2027, the
department shall submit a report to the joint legislative budget committee on
the results of projects implemented in fiscal year 2026-2027 for the state
employee public transportation service reimbursements pursuant to section
41-710.01, Arizona Revised Statutes, in a vehicle emissions control area as
defined in section 49-541, Arizona Revised Statutes, of a county with a
population of more than four hundred thousand persons.
All state surplus materials revolving
fund monies received by the department of administration in excess of
$3,216,200 in fiscal year 2026-2027 are appropriated to the
department. Before spending state surplus materials revolving fund
monies in excess of $3,216,200 in fiscal year 2026-2027, the department shall
report the intended use of the monies to the joint legislative budget
committee.
On or before November 1, 2027, the
department shall submit a report to the director of the joint legislative
budget committee on expenditures made from the cyber risk insurance fund
established by section 41-622, Arizona Revised Statutes, from the prior year.
On or before March 31, 2027, the
department shall submit a report to the director of the joint legislative
budget committee and the governor's office of strategic planning and budgeting
on the amount that the Maricopa county special health care district has agreed
to send to the department for deposit in the state general fund in fiscal year
2026-2027. If the amount that the district has agreed to send to the
department for deposit in fiscal year 2026-2027 has changed from the
amount the district sent to the department for deposit in fiscal year 2025-2026,
the report must include the reason for the change.
The amount appropriated for the food
bank capital line item shall be used for a onetime distribution to a food bank
for a capital need. To qualify for distribution in this paragraph,
the food bank must be a registered nonprofit organization that is exempt from
taxation under section 501(c)(3) of the internal revenue code, have a core
mission to provide food to hungry people, have been established between 1980
and 1999, be located in a county with a population of more than four million
persons and be headquartered in the city of Mesa.
The department shall distribute the
amount appropriated for the elected officials' retirement plan offset line item
to counties to supplement the normal cost plus an amount to amortize the
unfunded accrued liability pursuant to section 38-810, subsection C,
Arizona Revised Statutes. The department shall distribute the
appropriation equally among all counties with a population of less than three
hundred thousand persons according to the 2020 United States decennial
census. The counties may use the monies allocated in this section
only for required employer contributions to the elected officials' retirement
plan.
Of the
amount appropriated in the small county assistance line item, the first
$500,000 shall be distributed to Graham county and the remaining amount shall
be distributed equally among all counties with a population of less than nine
hundred thousand persons according to the 2020 United States decennial census
for maintaining essential county services.
The amount appropriated in the county
support for corrections officer employer contributions line item shall be
distributed to the following counties to fully cover the corrections officer
retirement plan employer contribution rate increase as prescribed by section 38-867,
Arizona Revised Statutes:
1. Apache
county����������������������� $ 4,600
2. Cochise
county���������������������� $ 10,100
3. Coconino
county��������������������� $ 14,100
4. Gila
county������������������������� $ 7,700
5. Graham
county����������������������� $ 7,800
6. La
Paz county����������������������� $ 4,400
7. Maricopa
county��������������������� $134,400
8. Mohave
county����������������������� $ 19,900
9. Navajo
county����������������������� $ 8,800
10. Pima
county������������������������ $ 81,300
11. Pinal
county����������������������� $ 15,100
12. Santa
Cruz county������������������ $ 6,600
13. Yavapai
county��������������������� $ 38,300
14. Yuma
county������������������������ $ 24,000
On or
before July 15, 2026, the department shall distribute the full amount
appropriated for the Gila county disaster relief line item in fiscal year
2026-2027 to the following political subdivisions:
1. Town
of Miami�������������������� $ 2,500,000
2. City
of Globe�������������������� $ 2,500,000
3. Gila
county���������������������� $ 5,000,000
On or
before July 31, 2026, the department shall distribute the amount appropriated
for the county sheriff support line item in fiscal year 2026-2027 to the
sheriff's offices of the following counties:
1. Apache
county�������������������� $  400,000
2. Cochise
county������������������� $ 1,100,000
3. Coconino
county������������������ $  400,000
4. Gila
county���������������������� $  600,000
5. Graham
county�������������������� $  300,000
6. Greenlee
county������������������ $  100,000
7. La
Paz county�������������������� $  400,000
8. Mohave county�������������������� $  300,000
9. Navajo county�������������������� $  600,000
10. Pinal county�������������������� $  600,000
11. Santa Cruz county��������������� $  300,000
12. Yavapai county������������������ $ 1,200,000
13. Yuma county��������������������� $  700,000
Sec. 6. DEPARTMENT OF
ADMINISTRATION, DIVISION OF SCHOOL FACILITIES
��������������������������������������������������� 2026-27
FTE
positions������������������������������� 22.0
Operating
lump sum appropriation���� $ 1,624,700
New school facilities debt service����� 9,938,100
Building renewal grants deposit������ 199,967,900
Building renewal grants
  administration����������������������� 750,000*
New school facilities��������������   12,734,900
Total appropriation � department of
administration, division
of school facilities���������������� $225,015,600
Fund sources:
State general fund������������������ $225,015,600
At least thirty days before any monies
are transferred out of the new school facilities debt service line item, the
division of school facilities shall report the proposed transfer to the
director of the joint legislative budget committee.
Pursuant to section 35-142.01,
Arizona Revised Statutes, any reimbursement received by or allocated to the
division of school facilities under the federal qualified school construction
bond program in fiscal year 2026-2027 shall be deposited in or revert to the
state general fund.
Pursuant to section 41-5741,
Arizona Revised Statutes, the amount appropriated for new school facilities
shall be used only for facilities and land costs for school districts that
received final approval from the division of school facilities on or before
December 15, 2025.
After approving a distribution of
funding for a land purchase, a land lease or the construction of a new school,
the division of school facilities shall report to the joint legislative budget
committee and the governor's office of strategic planning and budgeting the
final amount of the distribution.
The legislature intends that the
appropriation to the division of school facilities in fiscal year 2027-2028
for new school facilities may include up to $10,000,000 for end of useful life
projects that receive final approval from the division of school facilities on
or before December 15, 2026 pursuant to section 41-5741, Arizona Revised
Statutes.
The
division of school facilities may use not more than $27,318,100 of the
unencumbered balance in the new school facilities fund established by section
41-5741, Arizona Revised Statutes, for facilities and land costs for
school districts that received final approval on or before December 15, 2025
from the division of school facilities pursuant to section 41-5741,
Arizona Revised Statutes.
Sec. 7. DEPARTMENT OF
ADMINISTRATION, AUTOMATION PROJECTS
��������������������������������������������������� 2026-27
Department
of revenue integrated
  tax
system modernization���������� $ 3,656,800
Medicaid
enterprise system
  mainframe
modernization������������ 12,940,000
Department
of revenue mainframe
  migration��������������������������� 1,425,000
Arizona
medical board website
  modernization������������������������� 150,000
Fund sources:
Department of revenue subaccount����� $ 5,081,800
Medicaid enterprise system
  modernization
subaccount����������� 12,940,000
Arizona medical board subaccount������   150,000
The amount appropriated for the
department of revenue integrated tax system modernization line item shall be
spent for an integrated tax system modernization project that meets the
following minimum specifications:
1. Captures data fields
from electronically filed individual and corporate income tax returns and makes
the data available for querying and reporting purposes. The system
must provide the department of revenue staff, the joint legislative budget
committee staff and the governor's office of strategic planning and budgeting
staff direct access to the querying and reporting functions. The
querying and reporting functions must include procedures to protect taxpayer
confidentiality under applicable state and federal law.
2. For electronic corporate
income tax returns, captures information regarding the principal business
activity of the corporation. This requirement may be satisfied through the
North American industry classification system data listed on federal tax
forms. The tax system must allow for querying and reporting based on
principal business activity.
3. Includes an integrated
individual income tax model within the project and provides the department of
revenue staff, the joint legislative budget committee staff and the governor's
office of strategic planning and budgeting staff direct access to the
individual income tax model. At a minimum, the individual income tax
model must allow the department of revenue staff, the joint legislative budget
committee staff and the governor's office of strategic planning and budgeting
staff to adjust tax law parameters against an anonymized representative sample
of income tax returns to estimate the fiscal impact of proposed tax
legislation. The individual income tax model must only include data
from state and federal tax returns that are captured by the tax
system. The individual income tax model must include procedures to
protect taxpayer confidentiality under applicable state and federal law.
4. Makes individual and
corporate income tax data available for querying, modeling and reporting within
twenty-four
months after the end of a tax year.
Transfers to the automation
projects fund
The sum of $2,194,100 is transferred
from the state general fund in fiscal year 2026-2027 for deposit in the
department of revenue subaccount in the automation projects fund established
pursuant to section 41-714, Arizona Revised Statutes, to continue the
department of revenue�s integrated tax system modernization project.
The sum of $1,462,700 is transferred
from the department of revenue integrated tax system project fund established
pursuant to section 42-5041, Arizona Revised Statutes, in fiscal year
2026-2027 for deposit in the department of revenue subaccount in the automation
projects fund established pursuant to section 41-714, Arizona Revised
Statutes, to continue the department of revenue�s integrated tax system
modernization project.
The sum of $12,940,000 is transferred
from the state general fund in fiscal year 2026-2027 for deposit in the
medicaid enterprise system modernization subaccount in the automation projects
fund established pursuant to section 41-714, Arizona Revised Statutes, to
continue the medicaid enterprise system mainframe modernization project.
The sum of $1,425,000 is transferred
from the department of revenue administrative fund established by section
42-1116.01, Arizona Revised Statutes, in fiscal year 2026-2027 for deposit in
the department of revenue subaccount in the automation projects fund
established pursuant to section 41-714, Arizona Revised Statutes, to
migrate the department of revenue from the department of revenue's current
mainframe to a cloud-based solution.
The sum of $150,000 is transferred
from the Arizona medical board fund established by section 32-1406,
Arizona Revised Statutes, in fiscal year 2026-2027 for deposit in the Arizona
medical board subaccount in the automation projects fund established pursuant
to section 41-714, Arizona Revised Statutes, to modernize the Arizona medical
board's website.
The monies transferred to the
automation projects fund established by section 41-714, Arizona Revised
Statutes, pursuant to this section are not appropriations from the automation
projects fund. Only direct appropriations to the automation projects
fund are appropriations.
Quarterly
Reports
Within
thirty days after the last day of each calendar quarter, the department of
administration shall submit to the joint legislative budget committee a
quarterly report on implementing projects approved by the information
technology authorization committee established by section 18-121, Arizona
Revised Statutes, including expenditures to date, deliverables, timelines for
completion and current status of the projects.
Nonlapsing
The amounts appropriated pursuant to
this section from the automation projects fund established by section 41-714,
Arizona Revised Statutes, in fiscal year 2026-2027 are exempt from the
provisions of section 35-190, Arizona Revised Statutes, relating to
lapsing of appropriations, until June 30, 2028.
The $19,456,800 appropriated to the
department of administration by Laws 2024, chapter 209, section 122 in fiscal
year 2024-2025 for the department of revenue tax system modernization
project is exempt from the provisions of section 35-190, Arizona Revised
Statutes, relating to the lapsing of appropriations, until June 30, 2027.
The $3,396,000 appropriated to the
department of administration by Laws 2024, chapter 209, section 122 in fiscal
year 2024-2025 to replace the medicaid enterprise systems mainframe is exempt
from the provisions of section 35-190, Arizona Revised Statutes, relating to
the lapsing of appropriation, until June 30, 2027.
The $494,500 appropriated to the
department of public safety by Laws 2023, chapter 133, section 113, in fiscal
year 2023-2024 to replace the concealed weapons tracking system is exempt from
the provisions of section 35-190, Arizona Revised Statutes, relating to the
lapsing of appropriations until June 30, 2027.
The following amounts appropriated to
the department of administration by Laws 2023, chapter 133, section 113, as
amended by Laws 2024, chapter 209, section 11, in fiscal year 2023-2024
are exempt from the provisions of section 35-190, Arizona Revised Statutes,
relating to the lapsing of appropriations, until June 30, 2027:
1. $6,700,000 for a new
information technology platform to authenticate individuals applying for health
and human services programs to prevent fraud, waste and abuse.
2. $2,814,600 for the
development of several modules associated with the medicaid enterprise system
mainframe replacement.
3. $1,685,400 for medicaid
enterprise system fraud and waste abuse prevention enhancements.
4. $2,000,000 for medicaid
enterprise system systems integrator, which establishes a platform
infrastructure in the cloud to serve as the foundation for the modular
replacement of the prior prepaid medicaid management information system, and servicenow
projects.
The $7,000,000 appropriated to the corporation
commission by Laws 2023, chapter 133, section 113 in fiscal year 2023-2024
is exempt from the provisions of section 35-190, Arizona Revised
Statutes, relating to lapsing of appropriations. In addition to uses
prescribed in Laws 2023, chapter 133, section 113, this amount may be used for
post-launch expenses of the corporation commission's online records and
filing system, including vendor contracts, licensing, maintenance and technical
support. Expenditures from this allocation are not subject to review by the
joint legislative budget committee.
Sec. 8. OFFICE OF ADMINISTRATIVE HEARINGS
��������������������������������������������������� 2026-27
FTE positions������������������������������� 12.0
Lump sum appropriation������������� $   985,200
Fund
sources:
State
general fund����������������� $   985,200
Sec. 9. ARIZONA DEPARTMENT OF AGRICULTURE
��������������������������������������������������� 2026-27
FTE positions������������������������������ 217.4
Operating
lump sum appropriation��� $ 17,249,500
Agricultural
employment relations
  board���������������������������������� 23,300
Animal
damage control��������������������� 65,000
Licensing
system maintenance������������� 500,000
Red
imported fire ant control������������� 23,200
Agricultural
consulting and
  training������������������������    135,700
Total
appropriation � Arizona department
of
agriculture��������������������� $ 17,996,700
Fund sources:
State general fund����������������� $ 15,866,400
Air
quality fund����������������������� 1,630,300
Pest management
trust fund��������������� 500,000
�The
department of agriculture may use up to
$250,000 from the commercial feed trust fund established by section 3-2607,
Arizona Revised Statutes, in fiscal year 2026-2027 for 2 FTE positions. Of
the 2 FTE positions, 1 FTE position is for expenses associated with the
screwworm response. The department may conduct inspections as part
of this response at the border if the border opens for live cattle imports, and
the state veterinarian may oversee the screwworm response. Of the 2
FTE positions, 1 FTE position is for expenses related to a foreign animal
disease or pest, a United States department of agriculture program disease, a
zoonotic disease or any other emerging animal disease responses.
Sec. 10. ARIZONA HEALTH CARE COST CONTAINMENT SYSTEM
��������������������������������������������������� 2026-27
FTE positions���������������������������� 2,428.3
Operating lump sum appropriation���� $223,281,000
Administration
AHCCCS
data storage������������������� 19,605,800
DES
eligibility����������������������� 97,074,500
Proposition
204 � AHCCCS
  administration
�������������������� 15,788,200
Proposition
204 � DES eligibility���� 44,358,700
Public
Law 119-21 implementation �
  medicaid��������������������������� 51,500,000
Medicaid services
Traditional
medicaid services����� 10,308,634,300
Proposition
204 services����������� 7,193,353,000
Adult
expansion services������������� 844,120,200
Comprehensive
health plan������������ 200,180,300
KidsCare
services�������������������� 257,442,000
ALTCS
services��������������������� 2,663,643,700
Behavioral
health services
  in
schools�������������������������� 8,289,600
Enhanced
residential treatment
  program����������������������������� 7,812,000
Nonmedicaid behavioral health services
Crisis
services����������������������� 20,391,300
Nonmedicaid
seriously mentally
  ill
services����������������������� 77,646,900
Supported
housing��������������������� 65,324,800
Hospital payments
Disproportionate share payments���������� 884,800
Disproportionate
share payments �
  voluntary
match������������������� 207,593,800
Critical
access hospitals������������� 28,336,000
Graduate medical education����������� 569,176,800
Targeted
investments program�����    56,000,000
Total
appropriation and expenditure
authority
� Arizona health���������������������
care
cost containment system����� $22,960,437,700
Fund sources:
State
general fund��������������� $ 2,919,510,700
Budget neutrality compliance fund������ 5,304,500
Children's
health insurance
  program
fund���������������������� 193,430,100
Prescription
drug rebate
  fund
� state��������������������� 291,207,900
Seriously mentally ill
  housing trust fund������������������ 2,957,300
Substance abuse services fund���������� 2,250,200
Tobacco products tax fund �
  emergency health services
  account���������������������������� 13,467,800
Tobacco
tax and health care
  fund
� medically needy account���� 51,482,300
Expenditure
authority������������� 19,480,826,900
Operating budget
The amount appropriated for the DES eligibility
line item shall be used for intergovernmental agreements with the department of
economic security for eligibility determination and other
functions. The state general fund share may be used for eligibility
determination for other programs administered by the division of benefits and
medical eligibility based on the results of the Arizona random moment sampling
survey.
The amounts included in the
proposition 204 � AHCCCS administration, proposition 204 � DES eligibility and
proposition 204 services line items include all available sources of funding
consistent with section 36-2901.01, subsection B, Arizona Revised
Statutes.
Before spending the monies for the
replacement of the prepaid medicaid management information system, the Arizona
strategic enterprise technology office shall submit, on behalf of the Arizona
health care cost containment system, an expenditure plan for review by the
joint legislative budget committee. The report must include the project cost,
deliverables, the timeline for completion and the method of procurement that
are consistent with the department's prior reports for its appropriations from
the automation projects fund.
The amount appropriated for the Public
Law 119-21 implementation - medicaid line item is exempt from the
provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of
appropriations, until June 30, 2028.
Of the amount appropriated for the
Public Law 119-21 implementation - medicaid line item, $4,000,000 from
the state general fund and $24,400,000 from expenditure authority shall be
expended for information technology system upgrades. Any information
technology projects funded from the Public Law 119-21 implementation � medicaid
line item are exempt from review by the information technology authorization
committee established by section 18-121, Arizona Revised Statutes.
Medical services and behavioral
health services
Before making fee-for-service program
or rate changes that pertain to fee-for-service rate categories, the Arizona
health care cost containment system administration shall report its expenditure
plan for review by the joint legislative budget committee.
The Arizona health care cost
containment system administration shall report to the joint legislative budget
committee on or before March 1, 2027 on preliminary actuarial estimates of the
capitation rate changes for the following fiscal year along with the reasons
for the estimated changes. For any actuarial estimates that include
a range, the total range from minimum to maximum may not be more than two
percent. Before implementing any changes in capitation rates, the
administration shall report its expenditure plan for review by the joint
legislative budget committee. Before the administration implements
any change in policy affecting the amount, sufficiency, duration and scope of
health care services and who may provide services, the administration shall
prepare a fiscal impact analysis on the potential effects of this change on the
following year's capitation rates. If the fiscal impact analysis
demonstrates that this change will result in additional state costs of
$1,000,000 or more for any fiscal year, the administration shall submit the
policy change for review by the joint legislative budget committee.
The legislature intends that the
percentage attributable to administration and profit for the regional
behavioral health authorities be nine percent of the overall capitation rate.
The Arizona health care cost
containment system administration shall transfer up to $1,200,000 from the
traditional medicaid services line item for fiscal year 2026-2027 to the
attorney general for costs associated with e-cigarette enforcement and
tobacco settlement litigation.
The Arizona health care cost
containment system administration shall transfer $836,000 from the traditional
medicaid services line item for fiscal year 2026-2027 to the department of
revenue for enforcement costs associated with the March 13, 2013 master
settlement agreement with tobacco companies.
The amount appropriated for the
traditional medicaid services line item includes $4,400,000 from the state
general fund and $7,758,100 from expenditure authority for inpatient payments
to rural hospitals as defined in section 36-2905.02, Arizona Revised Statutes.
On or before June 30, 2027, the
Arizona health care cost containment system administration shall report to the
joint legislative budget committee on the progress in implementing the Arnold
v. Sarn lawsuit settlement. The report must include, at a minimum, the
administration's progress toward meeting all criteria specified in the 2014
joint stipulation, including the development and estimated cost of additional
behavioral health service capacity in Maricopa county for supported housing
services for one thousand two hundred class members, supported employment
services for seven hundred fifty class members, eight assertive community
treatment teams and consumer operated services for one thousand five hundred
class members. The administration shall also report by fund source
the amounts it plans to use to pay for expanded services.
The amount appropriated for the
enhanced residential treatment program line item is exempt from the provisions
of section 35-190, Arizona Revised Statutes, relating to lapsing of
appropriations. The legislature intends to continue to fund $2,739,600
from the seriously mentally ill housing trust fund established by section 41-3955.01,
Arizona Revised Statutes, and $5,072,400 from expenditure authority for the
enhanced residential treatment program in fiscal years 2027-2028 and 2028-2029
as part of a three-year pilot program.
Long-term care
Any federal monies that the Arizona
health care cost containment system administration passes through to the
department of economic security for use in long-term care for persons with
developmental disabilities do not count against the long-term care expenditure
authority.
Pursuant to section 11-292,
subsection B, Arizona Revised Statutes, the county portion of the fiscal year
2026-2027 nonfederal costs of providing long-term care system services is
$445,813,900. This amount is included in the expenditure authority fund source.
Any supplemental payments received in
excess of $91,455,300 for nursing facilities that serve Arizona long-term care
system medicaid patients in fiscal year 2026-2027, including any federal
matching monies, by the Arizona health care cost containment system
administration are appropriated to the administration in fiscal year
2026-2027. Before spending these increased monies, the
administration shall notify the joint legislative budget committee and the
governor's office of strategic planning and budgeting of the amount of monies
that will be spent under this provision. These payments are included in the
expenditure authority fund source.
Payments to hospitals
Any monies received for
disproportionate share hospital payments from political subdivisions of this
state, tribal governments and any university under the jurisdiction of the
Arizona board of regents, and any federal monies used to match those payments,
in fiscal year 2026-2027 by the Arizona health care cost containment system
administration in excess of $208,478,600 are appropriated to the administration
in fiscal year 2026-2027. Before spending these increased monies,
the administration shall notify the joint legislative budget committee and the
governor's office of strategic planning and budgeting of the amount of monies
that will be spent under this provision.
On or before March 31, 2027, the
Arizona health care cost containment system administration shall submit a
report to the director of the joint legislative budget committee and the
governor's office of strategic planning and budgeting on the amount of directed
payments that the Maricopa county special health care district will receive
from the safety net services initiative in fiscal year 2026-2027, disaggregated
by state match and by federal match.
The expenditure authority fund source
includes voluntary payments made from political subdivisions for payments to
hospitals that operate a graduate medical education program or treat low-income
patients and for payments to qualifying providers affiliated with teaching
hospitals. The political subdivision portions of the fiscal year
2026-2027 costs of graduate medical education, disproportionate share payments
� voluntary match, traditional medicaid services, proposition 204 services and
adult expansion services line items are included in the expenditure authority
fund source.
Any monies for graduate medical
education received in fiscal year 2026-2027, including any federal matching
monies, by the Arizona health care cost containment system administration in
excess of $569,176,800 are appropriated to the administration in fiscal year
2026-2027. Before spending these increased monies, the
administration shall notify the joint legislative budget committee and the
governor's office of strategic planning and budgeting of the amount of monies
that will be spent under this provision.
If any graduate medical education
monies remain after the Arizona health care cost containment system
administration has funded all eligible graduate medical education programs in
counties with a population of less than five hundred thousand persons, the
administration may fund the costs of graduate medical education programs
operated by community health centers and rural health clinics.
Notwithstanding section 36-2903.01,
subsection G, paragraph 9, subdivisions (a), (b) and (c), Arizona Revised
Statutes, the amount for graduate medical education includes $5,000,000 from
the state general fund and $9,152,300 from expenditure authority for the direct
and indirect costs of graduate medical education programs located in counties
with a population of less than five hundred thousand persons. The state general
fund amount may supplement, but not supplant, voluntary payments made from
political subdivisions for payments to hospitals that operate a graduate
medical education program. The administration shall prioritize
distribution to programs at hospitals in counties with a higher percentage of
persons residing in a health professional shortage area as defined in 42 Code
of Federal Regulations part 5.
Notwithstanding section 36-2903.01,
subsection G, paragraph 9, subdivisions (a), (b) and (c), Arizona Revised
Statutes, the amount for graduate medical education includes $4,000,000 from
the state general fund and $7,321,800 from expenditure authority for the direct
and indirect costs of graduate medical education programs located in counties
with a population of more than five hundred thousand persons. The state general
fund amount may supplement, but not supplant, voluntary payments made from
political subdivisions for payments to hospitals that operate a graduate
medical education program.
Monies appropriated for graduate
medical education in this section are exempt from the provisions of section 35-190,
Arizona Revised Statutes, relating to lapsing of appropriations, until June 30,
2028.
Of the amount appropriated from the
expenditure authority fund source, $4,244,300,000 is for hospital enhanced access leading to health
improvements initiative payments in fiscal year 2026-2027. This amount includes
monies from hospital assessments collected pursuant to section 36-2999.72,
Arizona Revised Statutes, and any federal monies used to match those payments.
Monies appropriated for graduate
medical education by Laws 2024, chapter 209, section 19 are exempt from the
provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of
appropriations, until December 31, 2026.
Other
On or before July 1, 2027, the Arizona
health care cost containment system administration shall report to the director
of the joint legislative budget committee the total amount of medicaid
reconciliation payments and penalties received on or before that date since
July 1, 2026.
The nonappropriated portion of the
prescription drug rebate fund established by section 36-2930, Arizona Revised
Statutes, is included in the federal portion of the expenditure authority fund
source.
Sec. 11. ARIZONA
COMMISSION ON THE ARTS
��������������������������������������������������� 2026-27
Arizona
arts trust fund deposit����� $ 2,000,000
Fund sources:
State
general fund������������������ $ 2,000,000
Sec. 12. BOARD OF
ATHLETIC TRAINING
��������������������������������������������������� 2026-27
FTE
positions�������������������������������� 1.5
Lump sum
appropriation�������������� $  166,000
Fund sources:
Athletic
training fund�������������� $  166,000
Sec. 13. ATTORNEY
GENERAL � DEPARTMENT OF LAW
��������������������������������������������������� 2026-27
FTE
positions������������������������������ 677.7
Operating
lump sum appropriation���� $ 65,330,000
Capital
postconviction prosecution������� 880,300
Criminal
division major fraud unit����� 1,268,100
Southern
Arizona law enforcement������� 1,717,300
State
grand jury������������������������� 194,400
Child and family advocacy centers�������� 100,000
Coordinated reentry planning
  services grants�������������������� 17,000,000
Government accountability and
  special
litigation������������������ 1,467,300
Internet
crimes against children
  enforcement������������������������� 1,613,300
Organized
retail theft
  task
force�������������������������� 1,645,200
Risk
management interagency
  service
agreement������������������ 10,489,000
Tobacco
enforcement���������������������� 877,000
Victims'
rights��������������������   4,022,500
Total appropriation � attorney
general �
department
of law������������������ $ 106,604,400
Fund sources:
State general fund����������������� $ 36,007,600
Antitrust enforcement revolving
  fund���������������������������������� 162,900
Attorney
general legal services
  cost
allocation fund���������������� 2,338,900
Collection
enforcement revolving
  fund�������������������������������� 7,374,300
Consumer
protection�consumer
  fraud
revolving fund��������������� 16,918,400
Consumer
restitution and remediation
  revolving
fund � consumer
  remediation
subaccount�������������� 3,000,000
Driving
under the influence
  abatement
fund���������������������� 1,800,000
Drag
racing prevention enforcement
  fund���������������������������������� 800,000
Interagency
service agreements fund��� 17,635,600
Internet
crimes against children
  enforcement
fund���������������������� 900,000
Risk
management revolving fund�������� 12,855,300
Utility
regulation revolving fund������ 3,000,000
Victims'
rights fund������������������� 3,811,400
All monies appropriated to the
attorney general legal services line item in the department of child safety
budget do not count toward the attorney general's interagency service
agreements fund appropriation in fiscal year 2026-2027.
Within
ten days after receiving a complaint alleging a violation of section 15-511,
Arizona Revised Statutes, the attorney general shall forward a copy of the
complaint to the governor, the president of the senate and the speaker of the
house of representatives.
Of the amount appropriated in the
operating lump sum appropriation in fiscal year 2026-2027, $204,100 and 4 FTE
positions shall be used to expand the medicaid fraud control unit within the
criminal division of the office of the attorney general.
The amount appropriated for the child
and family advocacy centers line item is allocated to the child and family
advocacy center fund established by section 41-191.11, Arizona Revised
Statutes.
Of the amount appropriated in the
coordinated reentry planning services grants line item, $2,000,000 shall be
distributed to each of Coconino, Maricopa, Mohave, Navajo, Pima, Pinal and
Yavapai counties in fiscal year 2026-2027 to supplement costs associated with
the operation of an existing coordinated reentry planning services program,
$2,000,000 shall be distributed to La Paz county to establish a coordinated
reentry planning services program and $1,000,000 shall be distributed as a
grant to establish a statewide coordinated reentry planning services
database. The coordinated reentry planning services grants line item
includes $3,000,000 from monies deposited in the consumer remediation
subaccount of the consumer restitution and remediation revolving fund
established by section 44-1531.02, Arizona Revised Statutes, that are not
related to opioid claims pursuant to section 44-1531.02, subsection C, Arizona
Revised Statutes.
The $900,000 appropriation from the
internet crimes against children enforcement fund established by section
41-199, Arizona Revised Statutes, and the $378,300 appropriation from the state
general fund for the internet crimes against children enforcement line item are
continuing appropriations and are exempt from the provisions of section 35-190,
Arizona Revised Statutes, relating to lapsing of appropriations, until June 30,
2028.
The amount appropriated for the
organized retail theft task force line item shall be used for operational
expenses of the organized retail task force and for hiring one attorney, one
paralegal, two investigators and one support staff person within the office of
the attorney general and four peace officers who are assigned to the task force
to focus specifically on investigating and prosecuting organized retail crime.
Sec. 14. BARBERING AND COSMETOLOGY BOARD
��������������������������������������������������� 2026-27
FTE
positions������������������������������� 36.5
Lump sum
appropriation�������������� $ 3,262,300
Fund sources:
Barbering
and cosmetology fund������ $ 3,262,300
Of the amount appropriated in the lump
sum appropriation in fiscal year 2026-2027, $235,000 shall be used to fill
three FTE positions, including one licensing specialist, one customer service
representative and one quality assurance specialist.
Sec. 15. BOARD OF BEHAVIORAL HEALTH EXAMINERS
��������������������������������������������������� 2026-27
FTE positions������������������������������� 27.0
Lump sum
appropriation������������� $  2,766,900
Fund
sources:
Board
of behavioral health
|| examiners
fund������������������ $  2,766,900
Sec. 16. STATE BOARD FOR
CHARTER SCHOOLS
��������������������������������������������������� 2026-27
FTE
positions������������������������������� 25.0
Lump sum
appropriation�������������� $ 2,811,100
Fund sources:
State
general fund������������������ $ 2,811,100
Sec. 17. DEPARTMENT OF
CHILD SAFETY
��������������������������������������������������� 2026-27
FTE
positions���������������������������� 3,283.1
Operating
lump sum appropriation���� $179,221,300
Additional operating resources
Attorney
general legal services������� 29,914,500
Caseworkers�������������������������� 139,316,600
Office
of child welfare
  investigations��������������������� 11,314,600
Training
resources��������������������� 9,150,000
Out-of-home placements
Congregate
group care���������������� 134,429,700
Extended
foster care������������������ 26,860,400
Extended
foster care service
  model
fund deposit����������������� 10,742,000
Foster
home placement����������������� 40,547,300
Foster
home recruitment,
  study
and supervision�������������� 32,753,600
Kinship
care�������������������������� 15,184,600
Permanent placements
Adoption
services�������������������� 282,440,400
Permanent
guardianship subsidy�������� 18,686,800
Support services
DCS
child care subsidy���������������  61,675,400
In-home
mitigation�������������������� 44,414,300
Out-of-home
support services��������� 107,284,600
Preventive
services������������������� 28,412,700
Comprehensive health plan
Comprehensive health plan
  services�������������������������� 172,360,900
Comprehensive
health plan
  administration��������������������� 24,291,000
Comprehensive
health plan
  premium
tax��������������������    3,528,400
Total appropriation and expenditure
authority
� department of
child
safety���������������������� $1,372,529,100
Fund
sources:
State
general fund���������������� $ 508,279,500
Federal
child care and
  development
fund block grant������� 40,516,000
Federal
temporary assistance
  for
needy families block
  grant����������������������������� 160,985,500
Child
abuse prevention fund������������ 1,459,300
 Children
and family services
  training
program fund����������������� 207,500
Child
safety expenditure
  authority������������������������� 459,833,600
Child
welfare licensing fee fund������� 1,067,400
Comprehensive
health plan
  expenditure
authority fund �
  expenditure
authority������������� 200,180,300
Additional operating resources
The department of child safety shall provide training to any
new child safety FTE positions before assigning any client caseload duties to
any of these employees.
The
legislature intends that the department of child safety use its funding to
achieve a one hundred percent investigation rate.
All
expenditures made by the department of child safety for attorney general legal
services shall be funded only from the attorney general legal services line
item. Monies in department of child safety line items intended for this purpose
shall be transferred to the attorney general legal services line item before
expenditure.
On or
before September 1, 2026, the department of child safety shall submit a report
to the joint legislative budget committee and the governor's office of
strategic planning and budgeting on the actual operating expenses for the
guardian case management system in fiscal year 2025-2026 and the proposed
system operating expenses for the system in fiscal year 2026-2027.
Out-of-home placements
The department of child safety may transfer up to ten
percent of the total amount of federal temporary assistance for needy families
block grant monies appropriated to the department of economic security and the
department of child safety to the social services block
grant. Before transferring federal temporary assistance for needy
families block grant monies to the social services block grant, the department
of child safety shall report the proposed amount of the transfer to the
director of the joint legislative budget committee. This report may be in the
form of an expenditure plan that is submitted at the beginning of the fiscal
year and updated, if necessary, throughout the fiscal year.
The amount
appropriated for kinship care shall be used for a stipend of $300 per month for
a relative caretaker, including a grandparent, any level of great-grandparent
or any non-grandparent relative, or a caretaker of fictive kinship, if a
dependent child is placed in the care of a relative caretaker or caretaker of
fictive kinship pursuant to department guidelines. The department
shall provide the stipend on behalf of all children placed with an unlicensed
kinship foster care parent. The unlicensed kinship foster care
parent is not required to file an application to receive the stipend. Before
changing the eligibility for the program or the amount of the stipend, the
department shall submit a report for review by the joint legislative budget
committee detailing the proposed changes.
On or
before March 31, 2027, the department of child safety shall report to the joint
legislative budget committee the number of children who are part of the kinship
stipend program and reside with a nonrelative caretaker of fictive kinship.
Support services
The
preventive services line item appropriation includes $264,400 from the state
general fund to draw down $1,322,000 in additional federal monies associated
with the community-based child abuse prevention block grant. If
grant monies are no longer available, the appropriation is reduced by the
amounts of $264,400 from the general fund and $1,322,000 from child safety
expenditure authority.
The department shall notify the
director of the joint legislative budget committee and the governor's office of
strategic planning and budgeting if the nurturing parenting and family
connections programs are favorably reviewed by the federal government and
qualify for federal reimbursement.
Comprehensive health plan
Of the amount appropriated in the
comprehensive health plan services line item in fiscal year 2024-2025 by Laws
2024, chapter 209, section 25, as amended by Laws 2025, chapter 233, section 1,
$43,787,500 is exempt from the provisions of section 35-190, Arizona Revised
Statutes, relating to lapsing of appropriations, until June 30, 2027.
Department-wide
The amount appropriated for any line
item may not be transferred to another line item or to the operating budget
unless the transfer is reviewed by the joint legislative budget committee,
except that transfers between any two line items relating to the comprehensive
health plan or between any two out-of-home placements line items are not
subject to review.
Child safety expenditure authority
includes all department funding sources excluding the state general fund, the
federal child care and development fund block grant, the federal temporary
assistance for needy families block grant, the child abuse prevention fund
established by section 8-550.01, Arizona Revised Statutes, the children
and family services training program fund established pursuant to section 8-503.01,
Arizona Revised Statutes, and the comprehensive health plan expenditure
authority fund established pursuant to section 8-512.02, Arizona Revised
Statutes.
On or before December 1, 2026, the
department of child safety shall submit a report to the joint legislative
budget committee on the department's efforts to implement the family first
prevention services act of 2018 (P.L. 115-123). The report
must quantify the department's efforts in at least the following areas,
including any associated fiscal impacts:
1. Reducing the number of
children placed for more than two weeks in congregate care settings, excluding
qualified residential treatment programs, facilities for pregnant and parenting
youth, supervised independent living and specialized programs for victims of
sex trafficking.
2. Assisting congregate
care providers in attaining status as qualified residential treatment programs.
3. Identifying alternative
placements, including therapeutic foster homes, for children who would
otherwise be placed in congregate care.
4. Expanding
evidence-based, in-home parent skill-based programs and mental health and
substance abuse prevention and treatment services.
Benchmarks
For the
purposes of this section:
1. "Backlog
case":
(a) Means any nonactive
case for which documentation has not been entered in the child welfare
automated system for at least sixty days and for which services have not been
authorized for at least sixty days and any case that has had an investigation,
has been referred to another unit and has had no contact for at least sixty
days.
(b) Includes any case for
which the investigation has been open without any documentation or contact for
at least sixty days, any case involving in-home services for which there
has been no contact or services authorized for at least sixty days and any case
involving foster care in which there has been no contact or any documentation
entered in the child welfare automated system for at least sixty days.
2. "Long-term
case" means any case in which the child has been in an out-of-home
placement for at least eighteen months.
3. "Open report"
means a report that is under investigation or awaiting closure by a supervisor.
On or before February 28, 2027 and
August 31, 2027, the department of child safety shall present a report to the
joint legislative budget committee on the progress made during July 2026
through December 2026 and January 2027 through June 2027, respectively, in
meeting the caseload standard and reducing the number of backlog and long-term
cases. Each report must include the number of backlog cases, the
number of open reports, the number of long-term cases and the caseworker
workload in comparison to the previous six months. Each report must
provide the number of backlog cases by disposition, including the number of
backlog cases in the investigation phase, the number of backlog cases
associated with out-of-home placements and the number of backlog
cases associated with in-home cases.
To determine the caseworker workload,
the department shall report the number of case-carrying caseworkers at each
field office and the number of investigations, in-home cases and long-term
cases assigned to each field office.
For backlog cases, the department's
benchmark is 1,000 cases.
For open reports, the department's
benchmark is fewer than 8,000 open reports.
For long-term cases, the
department's benchmark is 3,323 cases.
If the department of child safety has
not submitted a required report within thirty days after the report is due, the
director of the joint legislative budget committee shall inform the general
accounting office of the department of administration, which shall withhold two
percent of the department of child safety's operating lump sum semiannual
budget allocation until the department of child safety submits the required
report.
Sec. 18. STATE BOARD OF
CHIROPRACTIC EXAMINERS
����������������������������������������� 2026-27
FTE
positions�������������������������������� 6.0
Lump sum
appropriation�������������� $  660,600
Fund sources:
Board of
chiropractic examiners
||fund������������������������������ $  660,600
On or
before September 1, 2026, the state board of chiropractic examiners shall
provide a report to the joint legislative budget committee and the governor's
office of strategic planning and budgeting that details the board's proposal to
resolve the imbalance between ongoing revenues and ongoing expenditures.
Sec. 19. ARIZONA
COMMERCE AUTHORITY
��������������������������������������������������� 2026-27
FTE
positions������������������������������ 100.0
Operating
lump sum appropriation���� $ 10,000,000
Arizona
competes fund deposit������������ 500,000
Advanced
air mobility������������������ 2,000,000
Asia
trade offices����������������������� 750,000
Economic
development marketing
  and
attraction������������������������ 500,000
Frankfurt,
Germany trade office���������� 500,000
Israel
trade office���������������������� 300,000
Mexico
trade offices����������������    500,000
Total appropriation � Arizona
commerce�������������������
authority��������������������������� $ 15,050,000
Fund sources:
State
general fund������������������ $ 13,050,000
Advanced
air mobility fund������������� 2,000,000
Pursuant to section 43-409,
Arizona Revised Statutes, of the amounts listed above, $10,500,000 of the state
general fund withholding tax revenues is allocated in fiscal year 2026-2027
to the Arizona commerce authority, of which $10,000,000 is credited to the
Arizona commerce authority fund established by section 41-1506, Arizona Revised
Statutes, and $500,000 is credited to the Arizona competes fund established by
section 41-1545.01, Arizona Revised Statutes.
On or before December 1, 2026, the
authority shall submit a report to the joint legislative budget committee on
the location, activities and annual expenses of each trade office operated by
the authority during the prior fiscal year.
Sec. 20. ARIZONA COMMUNITY COLLEGES
��������������������������������������������������� 2026-27
Equalization aid
Cochise���������������������������� $ 12,715,600
Graham�������������������������������� 24,422,600
Navajo�������������������������������� 13,698,200
Yuma/La Paz�������������������������   2,019,800
Total � equalization aid�������������� $ 52,856,200
Operating
state aid
Cochise���������������������������� $  3,708,100
Coconino������������������������������� 1,404,400
Gila������������������������������������� 147,100
Graham��������������������������������� 1,872,900
Mohave��������������������������������� 1,226,800
Navajo��������������������������������� 1,564,900
Pinal���������������������������������� 1,261,800
Santa Cruz�������������������������������� 51,300
Yavapai���������������������������������� 683,900
Yuma/La
Paz�������������������������   2,562,200
Total �
operating state aid������������ $ 14,483,400
STEM
and workforce programs state aid
Cochise������������������������������ $  976,000
Coconino��������������������������������� 305,200
Gila�������������������������������������� 86,900
Graham����������������������������������� 492,300
Maricopa������������������������������� 8,818,600
Mohave����������������������������������� 500,000
Navajo����������������������������������� 350,400
Pima����������������������������������� 1,973,000
Pinal������������������������������������ 727,900
Santa
Cruz�������������������������������� 40,500
Yavapai���������������������������������� 762,500
Yuma/La
Paz�������������������������    870,400
Total �
STEM and workforce programs
state
aid��������������������������� $ 15,903,700
Rural aid
Cochise����������������������������� $ 2,451,300
Coconino��������������������������������� 838,100
Gila������������������������������������� 226,600
Graham��������������������������������� 1,241,300
Mohave��������������������������������� 1,313,400
Navajo����������������������������������� 944,700
Pinal���������������������������������� 1,884,700
Santa
Cruz������������������������������� 100,800
Yavapai�������������������������������� 1,988,600
Yuma/La
Paz�������������������������   3,010,500
Total �
rural aid���������������������� $ 14,000,000
Rural
county reimbursement subsidy������ $ 1,082,900
Additional
Gila workforce
  development
aid����������������������    200,000
Din�
college remedial education���������   1,000,000
Total appropriation � Arizona
community
colleges���������������������������� $ 99,526,200
Fund sources:
State
general fund������������������ $ 99,526,200
Of the $1,082,900 appropriated to the
rural county reimbursement subsidy line item, Apache county receives $699,300
and Greenlee county receives $383,600.
On or
before October 15, 2027, the Din� college board of regents shall submit to the
governor, the president of the senate, the speaker of the house of
representatives, the secretary of state and the joint legislative budget
committee a report that details the course completion rate for students who
received remedial education during the 2026-2027 academic year.
Sec. 21. REGISTRAR OF CONTRACTORS
��������������������������������������������������� 2026-27
FTE positions������������������������������ 103.6
Operating lump sum appropriation��� $ 13,310,600
Office
of administrative
|| hearings
costs������������������   1,017,600
Total appropriation � registrar of
contractors������������������������ $ 14,328,200
Fund
sources:
Registrar
of contractors fund������ $ 14,328,200
Sec. 22. CORPORATION COMMISSION
��������������������������������������������������� 2026-27
FTE positions������������������������������ 303.0
Operating
lump sum appropriation��� $ 38,107,800
Corporation
filings, same-day
  service������������������������������� 417,800
Utilities audits, studies,
  investigations and hearings����   1,000,000*
Total
appropriation � corporation commission $ 39,525,600
Fund
sources:
Arizona
arts trust fund������������ $   57,200
Investment
management regulatory
|| and
enforcement fund���������������� 1,370,400
Public
access fund��������������������� 8,235,100
Securities
regulatory and
  enforcement
fund�������������������� 8,283,100
Utility
regulation revolving fund����� 21,579,800
Sec. 23. STATE
DEPARTMENT OF CORRECTIONS
��������������������������������������������������� 2026-27
FTE
positions���������������������������� 9,592.0
Operating
lump sum appropriation�� $ 974,906,000
Private
prison contracted
  services�������������������������  273,126,400
Jensen
v. Thornell compliance�����   451,390,400
Total appropriation � state department
of corrections ����������������������� $1,699,422,800
Fund sources:
State general fund���������������� $1,659,746,100
State education fund for
  correctional education���������������� 703,200
Alcohol
abuse treatment fund������������� 555,800
Penitentiary
land fund����������������� 3,472,000
State
charitable, penal and
  reformatory
institutions
  land
fund��������������������������� 1,670,600
Corrections
fund���������������������� 21,218,500
Transition
program fund���������������� 2,400,300
Prison
construction and
  operations
fund��������������������� 9,656,300
Private prison vendors that contract
with this state may use staff vacancy savings to pay for overtime costs without
incurring a penalty or staffing offset.
Before placing any inmates in
out-of-state provisional beds, the state department of corrections shall place
inmates in all available prison beds in facilities that are located in this
state and that house Arizona inmates, unless the out-of-state provisional beds
are of a comparable security level and price.
The state department of corrections
shall forward to the president of the senate, the speaker of the house of
representatives, the chairpersons of the senate and house of representatives
appropriations committees and the director of the joint legislative budget
committee a monthly report comparing department expenditures for the month and
year-to-date as compared to prior year expenditures on or before the thirtieth
of the following month. The report must be in the same format as the
prior fiscal year and include an estimate of potential shortfalls, potential
surpluses that may be available to offset these shortfalls and a plan, if
necessary, for eliminating any shortfall without a supplemental
appropriation. The report must include the number of filled and
vacant correctional officer and medical staff positions departmentwide and by
prison complex.
On or before November 1, 2026, the
state department of corrections shall provide a report on bed capacity to the
joint legislative budget committee. The report must reflect the bed
capacity for each security classification by gender at each state-run and
private institution, divided by rated and total beds. The report
must include bed capacity data for June 30, 2025 and June 30, 2026 and the
projected capacity for June 30, 2027, as well as the reasons for any change
within that time period. Within the total bed count, the department
shall provide the number of temporary and special use beds. The
report must also address the department's rationale for eliminating any
permanent beds rather than reducing the level of temporary beds. The
report must also include any plans to vacate beds but not permanently remove
the beds from the bed count. If the department develops a plan after
the department's November 1, 2026 report to open or close one hundred or more
state-operated or private prison rated beds, the department shall submit a plan
detailing the proposed bed changes for review by the joint legislative budget
committee before implementing these changes.
One hundred percent of land earnings
and interest from the penitentiary land fund shall be distributed to the state
department of corrections in compliance with the enabling act and the
Constitution of Arizona to be used to support state penal institutions.
On or before December 30, the state
department of corrections shall submit a report to the joint legislative budget
committee on the progress made in meeting the staffing needs for correctional
officers. Each report must include the number of filled correctional
officer positions, the number of vacant correctional officer positions, the
number of people in training, the number of separations and the number of hours
of overtime worked for the prior fiscal year. The report must detail
these amounts both departmentwide and by prison complex.
Twenty-five percent of land
earnings and interest from the state charitable, penal and reformatory
institutions land fund shall be distributed to the state department of
corrections in compliance with the enabling act and the Constitution of Arizona
to be used to support state penal institutions.
Before spending
any state education fund for correctional education monies in excess of
$703,200, the state department of corrections shall report the intended use of
the monies to the director of the joint legislative budget committee.
Before implementing any changes in
contracted rates for Jensen v. Thornell compliance, the state department
of corrections shall submit its expenditure plan for review by the joint
legislative budget committee.
On or before January 31, 2027, the
state department of corrections shall submit a report to the joint legislative
budget committee on the status of all inmate health care performance measures
that are tracked by the department for contract monitoring purposes. The
report must include:
1. The total number of
performance measures, by facility, for which the department is not in
substantial compliance.
2. An explanation for each
instance of noncompliance.
3. The department's plan to
comply with the performance measures.
On or before August 1, 2026, the state
department of corrections shall transfer to the public safety personnel
retirement system via the department of administration its estimated required
annual contribution to the corrections officer retirement plan for fiscal year
2026-2027.
The
department shall use the amount appropriated in the private prison contracted
services line item to pay private prison contractors for housing and providing
medical care to Arizona inmates. Before spending these monies for
any other purpose, the department shall submit an expenditure plan for review
by the joint legislative budget committee.
The amount appropriated in the private
prison contracted services line item includes $3,767,200 for the purpose of
awarding a correctional officer salary increase. The state
department of corrections shall increase the contracted rates in fiscal year
2026-2027 to provide an amount sufficient for a four percent salary increase to
each correctional officer employed in a private prison that contracts with this
state.
The department's lump sum
appropriation includes funding to convert the onetime stipend for corrections
officers equal to four percent of the correctional officer's annual salary as
appropriated in fiscal year 2025-2026 into a four percent annual salary increase
in fiscal year 2026-2027.
Notwithstanding any other law,
projects related to the purchase and deployment of body-worn cameras and the
associated equipment to support body-worn camera deployment at the department
are exempt from the review and approval by the information technology
authorization committee required by section 18-121, Arizona Revised Statutes,
Of the amount appropriated in the Jensen
v. Thornell compliance line item, the department is authorized to
distribute not more than $45,097,700 to a contracted health care provider
contingent on the execution of a signed amendment to the current contracted
health care provider contract that includes the following:
1. Increases the health
care staffing level in accordance with the department's directives.
2. Adopts quarterly
reporting requirements from the health care provider to the department, the
governor's office of strategic planning and budgeting staff and the joint
legislative budget committee staff that includes the prior quarter staffing
levels by position type, number of FTE positions, current progress towards
outlined staffing goals and justification of why the staffing levels outlined
in paragraph 1 of this section are or are not being met.
3. Adopts a quarterly
distribution schedule based on the health care provider meeting and maintaining
staffing levels outlined in paragraph 1 of this section.
4. Adds automatic
sanctioning or fines associated with failure to fill staffing vacancies
consistent with the staffing levels outlined in paragraph 1 of this section.
Of the amount appropriated to the
department from the operating lump sum in fiscal year 2025-2026, $2,000,000 is
exempt from the provisions of section 35-190, Arizona Revised Statutes,
relating to lapsing of appropriations. This amount may be used to
upgrade the Arizona correctional information system.
Of the
amount appropriated to the department from the operating lump sum in fiscal
year 2025-2026 by Laws 2025, chapter 233, section 23, $10,900,000 may be used
in fiscal year 2026-2027 for compensatory or holiday liability accruals
incurred in fiscal year 2025-2026.
Of the amount appropriated in the
operating lump sum in fiscal year 2026-2027, $300,000 is to be used for a
onetime increase for a braille transcription program. The program may prioritize inmates
closest to reentry.
Sec. 24. ARIZONA
CRIMINAL JUSTICE COMMISSION
��������������������������������������������������� 2026-27
FTE
positions������������������������������� 11.0
Operating
lump sum appropriation ��� $ 1,505,400
Major
incident regional law
  enforcement
task force���������������� 600,000
State
aid to county attorneys������������ 973,700
State
aid to indigent defense������������ 700,000
State
aid for juvenile dependency
  proceedings
fund deposit������������ 2,000,000
Law
enforcement crime victim
  notification
fund deposit����������� 2,594,800
Victim
compensation and assistance��   8,469,700
Total appropriation � Arizona criminal
justice
commission������������������ $ 16,843,600
Fund sources:
State
general fund������������������ $ 6,850,000
Criminal
justice enhancement fund�������� 802,100
Resource
center fund��������������������� 646,600
State
aid to county attorneys fund������� 973,700
State
aid to indigent defense fund������� 700,000
Peace
officer training equipment fund����� 32,500
Victim
compensation and assistance
|| fund�������������������������������� 6,838,700
The amount appropriated for the major
incident regional law enforcement task force in fiscal year 2026-2027 shall be
distributed evenly to the sheriff's offices of the original five major incident
division task forces located in Cochise county, Coconino county, Navajo county,
Pinal county and Yuma county.
All victim compensation and assistance
fund monies received by the Arizona criminal justice commission in excess of
$6,838,700 in fiscal year 2026-2027 are appropriated to the crime victims
program. Before spending any victim compensation and assistance fund
monies in excess of $6,838,700 in fiscal year 2026-2027, the Arizona criminal
justice commission shall report the intended use of the monies to the joint
legislative budget committee.
All
monies received by the Arizona criminal justice commission in excess of
$973,700 in fiscal year 2026-2027 from the state aid to county attorneys fund
established by section 11-539, Arizona Revised Statutes, are appropriated to
the state aid to county attorneys program. Before spending any state aid to
county attorneys fund monies in excess of $973,700 in fiscal year 2026-2027,
the Arizona criminal justice commission shall report the intended use of the
monies to the joint legislative budget committee.
Sec. 25. ARIZONA STATE
SCHOOLS FOR THE DEAF AND THE BLIND
��������������������������������������������������� 2026-27
FTE
positions������������������������������ 562.2
Administration/statewide������������ $ 7,657,200
Phoenix
day school for the deaf������� 10,277,000
Tucson
campus������������������������� 12,997,100
Preschool/outreach
programs������������ 7,200,300
School
bus/agency vehicle
  replacement����������������������    369,000
Cooperative
services����������������  15,346,300
Supplemental
early childhood
  services�������������������������    50,000
Total appropriation � Arizona state schools
for the
deaf and the blind���������� $ 53,896,900
Fund sources:
State general fund������������������ $ 25,545,100
Schools for the deaf and
  the blind fund��������������������� 12,955,500
Cooperative services fund������������� 15,346,300
Health services lottery
  monies fund���������������������������� 50,000
Before spending any schools for the
deaf and the blind fund monies in excess of $12,955,500 in fiscal year 2026-2027,
the Arizona state schools for the deaf and the blind shall report to the joint
legislative budget committee the intended use of the monies.
Before spending any cooperative
services fund monies in excess of $15,346,300 in fiscal year 2026-2027,
the Arizona state schools for the deaf and the blind shall report to the joint
legislative budget committee the intended use of the monies.
The monies appropriated in the
supplemental early childhood services line item in fiscal year 2026-2027 must
be spent to continue the current contracts with multiple providers that are
providing supplemental early childhood listening and spoken language services,
including parent coaching services, to eligible infants and toddlers from birth
to three years of age and their families. Contractors shall ensure
that the services are provided by or overseen by a certified auditory verbal
educator or therapist in a natural environment, a clinical setting, an
educational setting or a virtual setting.
On or before September 1, 2026, the
Arizona state schools for the deaf and the blind shall submit a report to the
joint legislative budget committee and the governor's office of strategic
planning and budgeting that details the schools' budgetary and operational
changes since fiscal year 2025-2026. The report must include any
budgetary or operational changes regarding the Arizona state schools for the
deaf and blind's closure of the Tucson campus, the termination of the schools'
residential program, the relocation of campus-based Arizona state schools for
the deaf programs, the termination of campus-based Arizona state school for the
blind programs, the reduction of Arizona state schools for the deaf and the
blind staff and any plans for the disposition of land owned by the schools at
the Tucson campus.
Sec. 26. COMMISSION FOR THE DEAF AND THE HARD OF HEARING
��������������������������������������������������� 2026-27
FTE positions������������������������������� 21.0
Operating
lump sum appropriation���� $ 4,695,800
Support
services for the
  deaf-blind�����������������������    350,000
Total appropriation � commission for the
deaf and
the hard of hearing�������� $ 5,045,800
Fund
sources:
Telecommunication
fund for
||the
deaf�������������������������� $ 5,045,800
Sec. 27. STATE BOARD OF
DENTAL EXAMINERS
��������������������������������������������������� 2026-27
FTE
positions������������������������������� 13.0
Lump
sum appropriation�������������� $ 2,150,900
Fund sources:
Dental
board fund������������������� $ 2,150,900
Sec. 28. OFFICE OF
ECONOMIC OPPORTUNITY
��������������������������������������������������� 2026-27
FTE
positions�������������������������������� 5.0
Lump sum
appropriation�������������� $  531,900
Fund sources:
State general fund������������������ $  531,900
Sec. 29. DEPARTMENT OF
ECONOMIC SECURITY
��������������������������������������������������� 2026-27
FTE
positions���������������������������� 5,047.8
Operating
lump sum appropriation���� $381,228,600
Administration
Attorney
general legal services������� 13,099,900
Aging and adult services
Adult services������������������������ 15,731,900
Civil legal aid����������������������� 3,000,000*
Community
and emergency services������� 3,724,000
Coordinated
homeless services���������� 3,522,600
Coordinated
hunger services������������ 2,254,600
Domestic
violence prevention���������� 14,004,000
Long-term
care ombudsman��������������� 1,000,000
Produce
incentive program������������� 2,000,000*
Benefits
and medical eligibility
Public
Law 119-21 implementation �
  SNAP������������������������������� 10,800,000
Summer
food benefits administration���� 1,767,300
Temporary
assistance for needy
  families
� cash benefits���������� 22,736,400
Tribal
pass-through funding������������ 4,680,300
Child support enforcement
Child support ─
  clerk of the court and
  family law services����������������� 8,539,700
Developmental
disabilities
DDD
premium tax payment�������������� 102,012,200
Case
management � medicaid���������� 132,664,700
Home
and community based
  services
� medicaid������������ 3,576,435,700
Institutional
services �
  medicaid
�������������������������� 53,584,900
Physical
and behavioral
  health
services � medicaid����� 1,098,810,200
Medicare
clawback payments������������� 8,888,400
Targeted
case management � medicaid�� 25,383,100
State
match transfer from AHCCCS��� 1,841,698,500
Case
management � state-only���������� 6,446,100
Home
and community based
  services
� state-only������������� 14,089,000
High-need
client supplement����������� 26,320,000
Arizona
early intervention program���� 16,119,000
Listening
and spoken language -
  Arizona
early intervention program��� 150,000*
State-funded
long-term care
  services��������������������������� 46,084,300
Employment and rehabilitation services
Out-of-school time grant program
  fund deposit����������������������� 3,000,000*
JOBS���������������������������������� 11,005,600
Child care subsidy������������������� 261,837,300
Independent
living rehabilitation
  services���������������������������� 1,289,400
Reentry
employment services������������ 3,000,000
Rehabilitation
services���������������� 7,249,100
Older
individuals who are blind
  program������������������������������� 150,000
Workforce
innovation
  and
opportunity act
  services�����������������������   85,824,200
Total appropriation and expenditure
authority
� department of
economic
security����������������� $7,810,131,000
Fund
sources:
State
general fund���������������� $2,143,879,400
Federal
child care and
  development
fund block grant������ 229,994,900
Federal
temporary assistance for
  needy
families block grant��������� 66,561,100
Health
services lottery monies fund���� 1,800,000
Long-term
care system fund������������ 35,517,100
Public
assistance collections
  fund���������������������������������� 441,800
Special
administration fund������������ 4,645,400
Spinal
and head injuries trust
  fund�������������������������������� 2,385,400
Statewide
cost allocation plan
  fund�������������������������������� 1,000,000
Child
support enforcement
  administration
fund���������������� 17,615,600
Domestic
violence services fund�������� 4,000,300
Workforce
investment act grant�������� 87,109,200
Child
support enforcement
  administration
fund
  expenditure
authority�������������� 45,547,500
Developmental
disabilities
  medicaid
expenditure
  authority����������������������� 5,169,633,300
Aging and adult services
Of the amount appropriated for the adult services line item,
$5,000,000 is exempt from the provisions of section 35-190, Arizona
Revised Statutes, relating to lapsing of appropriations.
Of the
amount appropriated for the adult services line item, the department shall
distribute $500,000 to the inter tribal area agency on aging and $500,000 to
the Navajo Nation area agency on aging.
Monies in
the civil legal aid line item shall be distributed to nonprofit organizations
to provide statewide general civil legal aid services consistent with the terms
and restrictions of the legal services corporation as of federal fiscal year
2026.
Of the
monies appropriated by Laws 2025, chapter 233, section 29 to the department of
economic security for the coordinated homeless services line item, $15,500,000
is exempt from the provisions of section 35-190, Arizona Revised Statutes,
relating to lapsing of appropriations, until June 30, 2027.
All
domestic violence services fund monies in excess of $4,000,300 received by the
department of economic security are appropriated for the domestic violence
prevention line item. Before spending these increased monies, the
department shall report the intended use of monies in excess of $4,000,300 to
the joint legislative budget committee.
On or
before December 15, 2026, the department of economic security shall report to
the joint legislative budget committee the amount of state and federal monies
available statewide for domestic violence prevention funding. The
report must include, at a minimum, the amount of monies available and the state
fiscal agent receiving those monies.
Monies
appropriated by Laws 2025, chapter 233, section 29 to the department of
economic security for the homeless veterans services line item are exempt from
the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing
of appropriations, until June 30, 2027.
Monies
appropriated by Laws 2025, chapter 233, section 29 to the department of
economic security for the homeless veterans strategic plan line item are exempt
from the provisions of section 35-190, Arizona Revised Statutes, relating to
lapsing of appropriations, until June 30, 2027.
Benefits
and medical eligibility
The operating lump sum appropriation
may be spent on Arizona health care cost containment system eligibility
determinations based on the results of the Arizona random moment sampling
survey.
The amount appropriated for the Public
Law 119-21 implementation - SNAP line item is exempt from the provisions
of section 35-190, Arizona Revised Statutes, relating to lapsing of
appropriations, until June 30, 2028.
The amount appropriated for the summer
food benefits administration line item is exempt from the provisions of section
35-190, Arizona Revised Statutes, relating to lapsing or appropriations, until
October 31, 2027.
Child
support enforcement
All state
shares of retained earnings, fees and federal incentives in excess of
$17,615,600 received by the division of child support enforcement are
appropriated for operating expenses. New FTE positions are
authorized with the increased funding. Before spending these
increased monies, the department of economic security shall report the intended
use of the monies to the joint legislative budget committee.
Developmental disabilities
On or before September 1, 2027, the department of economic
security shall report to the president of the senate, the speaker of the house
of representatives, the chairpersons of the senate and house of representatives
appropriations committees and the director of the joint legislative budget
committee any new placement into a state-owned ICF-IID or the Arizona
training program at the Coolidge campus in fiscal year 2026-2027 and the reason
for this placement, rather than a placement into a privately run facility for
persons with developmental disabilities, was deemed as the most appropriate
placement. The department shall also report if no new placements
were made. On or before September 1, 2027, the department shall also
report to the director of the joint legislative budget committee the total
costs associated with the Arizona training program at Coolidge in fiscal year
2026-2027.
The department of economic security
shall report to the joint legislative budget committee on or before March 1 of
each year on preliminary actuarial estimates of the capitation rate changes for
the following fiscal year along with the reasons for the estimated
changes. For any actuarial estimates that include a range, the total
range from minimum to maximum may not be more than two
percent. Before implementing any changes in capitation rates for the
long-term care system, the department shall submit a report for review by the
joint legislative budget committee. Before the department implements any change
in policy affecting the amount, sufficiency, duration and scope of health care
services and who may provide services, the department shall prepare a fiscal
impact analysis on the potential effects of this change on the following year's
capitation rates. If the fiscal impact analysis demonstrates that
this change will result in additional state costs of $500,000 or more for any
fiscal year, the department shall submit the policy change for review by the
joint legislative budget committee.
Before
implementing developmental disabilities or long-term care statewide
provider rate adjustments that are not already specifically authorized by the
legislature, court mandates or changes to federal law, the department of
economic security shall submit a report for review by the joint legislative
budget committee that includes, at a minimum, the estimated cost of the
provider rate adjustment and the ongoing source of funding for the adjustment,
if applicable.
On or
before March 1, 2027, the department of economic security shall provide to the
governor, the president of the senate, the speaker of the house of
representatives, the chairpersons of the senate and house of representatives
appropriations committees and the director of the joint legislative budget
committee a report on the utilization of covered services under the
developmental disabilities program by disability classification. The report
must include the total expenditures for each covered service by primary
diagnosis in fiscal year 2025-2026.
Before
transferring any monies in or out of the case management �medicaid and case
management � state-only and developmental disabilities administration line
items and before transferring any monies in or out of the operating lump sum
item related to the developmental disabilities program and its administration,
the department of economic security shall submit a report for review by the joint
legislative budget committee, except that transfers from the state match
transfer from AHCCCS line item into those line items do not require a report
for review.
On or before January 31, 2027, the
department of economic security shall submit a report to the joint legislative
budget committee regarding expenditures from the high-need client
supplement line item in the previous fiscal year. The report must
include the number of clients and total amounts spent from the line item in
each setting type along with expenditures for those clients in other line
items. The report must also include cost effectiveness spending in
other line items.
Employment
and rehabilitation services
On or before December 31, 2026 and
June 30, 2027, the department of economic security shall submit a report to the
joint legislative budget committee regarding federal child care
monies. The report must include, at a minimum, the actual revenues
delineated by fund source, the actual year-to-date expenditures by
purpose and fund source and the beginning and ending balances for all fund
sources for the preceding six months. The report must also include projected
annual revenues, expenditures and balances for the current year and the budget
year.
The
department of economic security shall forward to the joint legislative budget
committee a monthly report listing data on the child care population
served. The report must include, at a minimum, in each program the
number of unduplicated children enrolled in child care within the department of
economic security and the department of child safety by program and the average
amount paid per child plus quality-related spending.
All
workforce investment act grant monies that are received by this state in excess
of $87,109,200 are appropriated to the workforce innovation and opportunity act
services line item. Before spending these increased monies, the
department of economic security shall report the intended use of monies in
excess of $87,109,200 to the joint legislative budget committee.
Department-wide
The above
appropriations are in addition to monies granted to this state by the federal
government for the same purposes but are deemed to include the sums deposited
in the state treasury to the credit of the department of economic security
pursuant to section 42-5029, Arizona Revised Statutes.
The
department of economic security shall forward to the president of the senate,
the speaker of the house of representatives, the chairpersons of the senate and
house of representatives appropriations committees and the director of the
joint legislative budget committee a monthly report comparing total
expenditures for the month and year-to-date as compared to prior
year totals on or before the thirtieth of the following month. The
report must include an estimate of potential shortfalls in entitlement programs
and potential federal and other monies, such as the statewide assessment for
indirect costs, and any projected surplus in state-supported programs that may
be available to offset these shortfalls and a plan, if necessary, for
eliminating any shortfall without a supplemental appropriation.
Sec. 30. STATE BOARD OF EDUCATION
��������������������������������������������������� 2026-27
FTE positions������������������������������� 23.0
Operating
lump sum appropriation�� $  3,224,900
Arizona
empowerment scholarship
  account
appeals����������������     237,900
Total
appropriation �
  state
board of education������� $  3,462,800
Fund sources:
State
general fund���������������� $  3,462,800
Sec. 31. SUPERINTENDENT
OF PUBLIC INSTRUCTION
��������������������������������������������������� 2026-27
FTE
positions������������������������������ 232.9
Operating
lump sum appropriation�� $  15,584,600
Formula programs
Basic
state aid�������������������� 6,988,177,800
Onetime
additional assistance
  supplement������������������������� 29,000,000
Onetime
FRPL group B
  weight
supplement������������������ 37,000,000
State
aid supplement������������������ 75,000,000
Special
education fund���������������� 36,029,200
Classroom
site fund���������������� 1,129,954,100
Instructional
improvement fund�������� 80,425,700
Property tax relief
Additional state aid����������������� 551,969,500
Non-formula programs
Accountability
and achievement
  testing���������������������������� 16,450,300
Adult
education������������������������ 4,912,100
Alternative
teacher development
  program����������������������������� 1,000,000
Arizona
English language
  learner
fund������������������������ 4,960,400
College
credit by examination
  incentive
program������������������� 3,772,100
College
placement exam fee waiver������ 1,265,800
Computer
science professional�������������������
  development
program����������������� 1,000,000
CTED
certification exam fee
  reimbursement���������������������� 1,000,000
CTED
completion grants����������������� 1,000,000
CTED
soft capital and equipment�������� 1,000,000
Early
literacy������������������������ 17,394,000
Education
learning and
  accountability
system��������������� 5,534,100
English
learner administration�������� 11,643,000
Geographic
literacy���������������������� 100,000
Gifted
assessments����������������������� 850,000
Jobs
for Arizona graduates��������������� 500,000
Onetime
school meal grants������������� 2,000,000
Public
school campus community
  gardens������������������������������ 600,000*
School
safety program����������������� 82,036,100
State
block grant for vocational
  education�������������������������� 11,861,900
Student
level data access���������������� 358,900
Teacher
certification������������������ 2,416,700
Tribal
college dual enrollment
  program������������������������     325,000
Total appropriation and expenditure
��������� authority � superintendent
of
public instruction������������� $9,115,121,300
Fund sources:
State
general fund���������������� $7,649,389,900
Education
sales tax fund����������    7,000,000
Permanent
state school fund����������� 80,226,500
Special
education fund����������������� 5,000,000
Teacher
certification fund������������� 2,560,700
Tribal
college dual enrollment
  program
fund�������������������������� 325,000
Department
of education empowerment
  scholarship
account fund�������������� 358,900
Expenditure
authority�������������� 1,370,260,300
Operating
lump sum
Any
monies available to the department of education pursuant to section 42-5029.02,
subsection A, paragraph 8, Arizona Revised Statutes, for the failing schools
tutoring fund established by section 15-241, Arizona Revised Statutes, in
excess of the expenditure authority amounts are allocated for the purposes of
section 42-5029.02, subsection A, paragraph 8, Arizona Revised Statutes.
Any monies available to the department
of education pursuant to section 42-5029.02, subsection A, paragraph 6, Arizona
Revised Statutes, for character education matching grants pursuant to section
15-154.01, Arizona Revised Statutes, in excess of the expenditure authority
amounts are allocated for the purposes of section 42-5029.02, subsection A,
paragraph 6, Arizona Revised Statutes.
Basic state aid
The appropriation for basic state aid
provides basic state support to school districts for maintenance and operations
funding as provided by section 15-973, Arizona Revised Statutes, and
includes an estimated $80,226,500 in expendable income derived from the
permanent state school fund and from state trust lands pursuant to section 37-521,
subsection B, Arizona Revised Statutes, for fiscal year 2026-2027.
Monies derived from the permanent
state school fund and any other non-state general fund revenue source that is
dedicated to fund basic state aid shall be spent, whenever possible, before
spending state general fund monies.
Except as required by section 37-521,
Arizona Revised Statutes, all monies received during the fiscal year from
national forests, interest collected on deferred payments on the purchase of
state lands, income from investing permanent state school funds as prescribed
by the enabling act and the Constitution of Arizona and all monies received by
the superintendent of public instruction from whatever source, except monies
received pursuant to sections 15-237 and 15-531, Arizona Revised
Statutes, when paid into the state treasury are appropriated for apportionment
to the various counties in accordance with law. An expenditure may
not be made except as specifically authorized above.
Any monies available to the department
of education pursuant to section 42-5029.02, subsection A, paragraph 5,
Arizona Revised Statutes, for the increased cost of basic state aid under
section 15-971, Arizona Revised Statutes, due to added school days in excess of
the expenditure authority amounts are allocated for the purposes of section 42-5029.02,
subsection A, paragraph 5, Arizona Revised Statutes.
The monies appropriated for the
onetime additional assistance supplement line item includes $23,142,000 for a
onetime district additional assistance supplement and $5,858,000 for a onetime
charter additional assistance supplement. The department of
education shall distribute the amount for the onetime district additional
assistance supplement to school districts on a proportional basis based on the
district additional assistance funding that each school district in this state
receives in fiscal year 2026-2027 and increase the budget limits accordingly
pursuant to section 15-947, Arizona Revised Statutes. A school
district may budget the monies received from the onetime additional assistance
supplement in either the school district's maintenance and operation fund or
unrestricted capital outlay fund. The department of education shall
distribute the amount for a onetime charter additional assistance supplement to
charter schools on a proportional basis based on the charter additional assistance
funding that each charter school in this state receives in fiscal year
2026-2027.
The department of education shall
distribute the appropriated amount for the onetime FRPL group B weight
supplement line item to school districts and charter schools on a pro rata
basis using the weighted student count for FRPL pupils for the school district
or charter school pursuant to section 15-943, paragraph 2, subdivision (b),
Arizona Revised Statutes, and shall increase the budget limits accordingly
pursuant to section 15-947, Arizona Revised Statutes. A school
district may budget the monies received from the onetime FRPL group B weight
supplement in either the school district's maintenance and operation fund or
unrestricted capital outlay fund.
The department of education shall
allocate the appropriated amount for the state aid supplement to districts and
charter schools on a pro rata basis using the weighted student count for the
school district or charter school for the fiscal year pursuant to section 15-943,
paragraph 2, subdivision (a), Arizona Revised Statutes, and increase the budget
limits pursuant to section 15-947, Arizona Revised Statutes, accordingly.
The weighted student count for a school district that serves as the district of
attendance for nonresident pupils shall be increased to include nonresident
pupils who attend school in the district.
Other programs
Any monies available to the department
of education for the classroom site fund pursuant to section 37-521,
subsection B, paragraph 4, Arizona Revised Statutes, and section 42-5029.02,
subsection A, paragraph 11, Arizona Revised Statutes, in excess of expenditure
authority amounts are allocated for the purposes of section 37-521,
subsection B, paragraph 4, Arizona Revised Statutes, and section 42-5029.02,
subsection A, paragraph 11, Arizona Revised Statutes.
Any monies available to the department of education from the
instructional improvement fund established by section 15-979, Arizona Revised
Statutes, in excess of the expenditure authority amounts are allocated for the
purposes of section 15-979, Arizona Revised Statutes.
Before making any changes to the
achievement testing program that will increase program costs, the department of
education and the state board of education shall submit the estimated fiscal
impact of those changes to the joint legislative budget committee for review.
Any monies available to the department
of education for accountability purposes pursuant to section 42-5029.02,
subsection A, paragraph 7, Arizona Revised Statutes, in excess of the
expenditure authority amounts are allocated for the purposes of section 42-5029.02,
subsection A, paragraph 7, Arizona Revised Statutes.
The department of education may use
the appropriated amount for accountability and achievement testing in fiscal
year 2026-2027 for costs of the English language proficiency assessments
required by section 15-756.05, Arizona Revised Statutes.
Monies appropriated for CTED
completion grants are intended to help fund program completion for students who
complete at least fifty percent of a career technical education program before
graduating from high school and who successfully complete the career technical
education district program after graduating from high school. The
application procedures shall award grant funding only after an eligible student
has successfully completed a career technical education district program.
If the appropriated amount for CTED
completion grants is insufficient to fund all grant requests from career
technical education districts, the department of education shall reduce grant
amounts on a proportional basis in order to cap total statewide allocations at
$1,000,000.
The appropriated amount for CTED
completion grants is exempt from the provisions of section 35-190,
Arizona Revised Statutes, relating to lapsing of appropriations, until June 30,
2028.
The department of education shall
distribute the appropriated amount for CTED soft capital and equipment to
career technical education districts with fewer than two thousand average daily
membership pupils for soft capital and equipment expenses. The
appropriated amount shall be allocated on a pro rata basis based on the average
daily membership of eligible career technical education districts.
The department of education shall use
the appropriated amount for English learner administration to provide English
language acquisition services for the purposes of section 15-756.07,
Arizona Revised Statutes, and for the costs of providing English language
proficiency assessments, scoring and ancillary materials as prescribed by the
department of education to school districts and charter schools for the
purposes of title 15, chapter 7, article 3.1, Arizona Revised
Statutes. The department may use a portion of the appropriated
amount to hire staff or contract with a third party to carry out the purposes
of section 15-756.07, Arizona Revised
Statutes. Notwithstanding section 41-192, Arizona Revised
Statutes, the superintendent of public instruction also may use a portion of
the appropriated amount to contract with one or more private attorneys to
provide legal services in connection with the case of Flores v. State of
Arizona, No. CIV 92-596-TUC-RCC.
The department of education shall use
the appropriated amount for geographic literacy to issue a grant to a statewide
geographic alliance for strengthening geographic literacy in this state.
The department of education shall use
the appropriated amount for jobs for Arizona graduates to issue a grant to a
nonprofit organization for a JOBS for Arizona graduates program.
The department of education shall
distribute the appropriated amount for onetime school meal grants to school districts
and charter schools that participate in the national school lunch program or
school breakfast program established under the national school lunch and child
nutrition acts (42 United States Code section 1751 through 1793) for grants to
reduce or eliminate copayments that would otherwise be charged to children
eligible for reduced-price meals. If the appropriated amount is
insufficient to cover the grant awards for all eligible grantees, the
department shall reduce each grant proportionately to ensure all eligible
grantees receive proportional grants.
The amount appropriated for the school
safety program in fiscal year 2022-2023 pursuant to Laws 2022, chapter 313,
section 31, as amended by Laws 2024, chapter 209, section 1, included an
increase of $50,000,000 for additional school safety grants. In
allocating the $50,000,000 increase, the department of education shall first
distribute monies to schools on the school safety program waiting list to
receive grants for the costs of placing school resource officers on school
campuses. The awarded grants may not supplant funding provided by
local governments for school resource officers. If the total cost of
funding grants for school resource officers is less than $50,000,000, the
department may allocate the remaining monies to grants to schools for the costs
of placing school counselors and social workers on school campuses pursuant to
section 15-154, Arizona Revised Statutes.
Any monies available to the department
of education for school safety pursuant to section 42-5029.02, subsection A,
paragraph 6, Arizona Revised Statutes, in excess of the expenditure authority
amounts are allocated for the purposes of section 42-5029.02, subsection A,
paragraph 6, Arizona Revised Statutes.
Of the amount appropriated by Laws
2025, chapter 233, section 31 for the school safety program, $100,000 shall be
used to fund the child sexual abuse and assault awareness and prevention pilot
program established by law.
After review by the joint legislative
budget committee, in fiscal year 2026-2027, the department of education may use
a portion of its fiscal year 2026-2027 state general fund appropriations for
basic state aid, additional state aid or the special education fund to fund a
shortfall in funding for basic state aid, additional state aid or the special
education fund, if any, that occurred in fiscal year 2025-2026.
The department of education shall
provide an updated report on its budget status every three months for the first
half of each fiscal year and every month thereafter to the president of the
senate, the speaker of the house of representatives, the chairpersons of the
senate and house of representatives appropriations committees, the director of
the joint legislative budget committee and the director of the governor's
office of strategic planning and budgeting. Each report must
include, at a minimum, the department's current funding surplus or shortfall
projections for basic state aid and other major formula-based programs and is
due thirty days after the end of the applicable reporting period.
Within fifteen days after each
apportionment of state aid that occurs pursuant to section 15-973, subsection
B, Arizona Revised Statutes, the department of education shall post on its
website the amount of state aid apportioned to each recipient and the underlying
data.
Sec. 32. DEPARTMENT OF
EMERGENCY AND MILITARY AFFAIRS
��������������������������������������������������� 2026-27
FTE positions������������������������������� 68.1
Administration���������������������� $ 2,946,000
Emergency management��������������������� 902,700
Emergency management matching funds���� 1,563,600
Military affairs����������������������� 2,157,300
National guard matching funds���������� 3,533,300
National guard tuition
  reimbursement��������������������   1,000,000
Total appropriation � department of
emergency
and military affairs������ $ 12,102,900
Fund sources:
State
general fund������������������ $ 12,102,900
The $3,533,300 national guard matching
funds appropriation is exempt from the provisions of section 35-190, Arizona
Revised Statutes, relating to lapsing of appropriations, except that all fiscal
year 2026-2027 monies remaining unexpended and unencumbered on December 31,
2027 revert to the state general fund.
The appropriated amount for the
national guard tuition reimbursement line item is exempt from the provisions of
section 35-190, Arizona Revised Statutes, relating to lapsing of
appropriations, until September 30, 2027.
Of the $13,300,000 appropriated to the
department by Laws 2022, chapter 313, section 32 in fiscal year 2022-2023 for a
onetime maintenance backfill, the department may use any remaining unexpended
and unencumbered monies for the construction of the Arizona army national guard
surprise readiness center in the city of Surprise.
Sec. 33. DEPARTMENT OF
ENVIRONMENTAL QUALITY
��������������������������������������������������� 2026-27
FTE positions������������������������������ 360.7
Operating lump sum appropriation��� $ 73,837,600
Safe drinking water program������������ 2,027,700
Geothermal energy research������������� 1,500,000
Iron King mine Humboldt smelter
  cleanup����������������������������� 2,000,000
Emissions control contractor
  payment�������������������������   31,989,000
Voluntary vehicle repair
  program support��������������������� 2,170,200
Air permit portal������������������������ 371,200
Water quality fee fund deposit�����   9,500,000
Total appropriation � department of
environmental quality�������������� $ 123,395,700
Fund sources:
State general fund����������������� $  2,000,000
Air quality fund���������������������� 15,320,700
Emergency response fund������������������ 132,800
Emissions inspection fund������������� 36,200,000
Hazardous waste management fund�������� 2,689,300
Indirect cost fund�������������������� 19,603,200
Permit administration fund������������� 7,536,400
Recycling fund������������������������� 8,242,100
Safe drinking water program
  fund�������������������������������� 2,027,700
Solid waste fee fund������������������� 3,907,600
Underground storage tank fund���������� 3,700,000
Water quality fee fund���������������� 22,035,900
The department of environmental
quality shall report annually on the progress of WQARF activities, including
emergency response, priority site remediation, cost recovery activity, revenue
and expenditure activity and other WQARF-funded program activity. The
department shall submit the fiscal year 2026-2027 report to the joint
legislative budget committee on or before September 1, 2026. This
report must also include a budget for the WQARF program that is developed in
consultation with the WQARF advisory board. This budget shall
specify the monies budgeted for each listed site during fiscal year
2026-2027. In addition, the department and the WQARF advisory board
shall prepare and submit to the joint legislative budget committee, on or
before October 1, 2026, a report in a table format summarizing the current
progress on remediation of each listed site on the WQARF
registry. The table shall include the stage of remediation for each
site at the end of fiscal year 2025-2026, indicate whether the current stage of
remediation is anticipated to be completed in fiscal year 2026-2027 and
indicate the anticipated stage of remediation at each listed site at the end of
fiscal year 2026-2027, assuming fiscal year 2026-2027 funding
levels. The department and the WQARF advisory board may include
other relevant information about the listed sites in the table.
All permit administration fund monies
received by the department of environmental quality in excess of $7,536,400 in
fiscal year 2026-2027 are appropriated to the department. Before
spending permit administration fund monies in excess of $7,536,400 in fiscal
year 2026-2027, the department shall report the intended use of the monies to
the joint legislative budget committee.
All monies in the department of
environmental quality indirect cost fund established by section 49-115,
Arizona Revised Statutes, including the beginning balance, that are in excess
of $19,603,200 in fiscal year 2026-2027 are appropriated to the
department. Before spending indirect cost fund monies in excess of
$19,603,200 in fiscal year 2026-2027, the department shall report the intended
use of the monies to the joint legislative budget committee.
The operating lump sum appropriation
includes $776,600 from the water quality fee fund established by section
49-210, Arizona Revised Statutes, for two FTE positions to process an increase
in permit applications resulting from revised aquifer water quality standards.
The department of environmental quality may only spend these monies if matching
amounts of aquifer protection permit program fees collected pursuant to section
49-241.02, Arizona Revised Statutes, are deposited in the water quality fee
fund established by section 49-210, Arizona Revised Statutes, by the end of
fiscal year 2026-2027.
Sec. 34. GOVERNOR'S
OFFICE OF EQUAL OPPORTUNITY
��������������������������������������������������� 2026-27
FTE
positions�������������������������������� 5.0
Lump sum
appropriation������������� $   317,400
Fund sources:
Personnel
division fund������������ $   317,400
Sec. 35. STATE BOARD OF
EQUALIZATION
��������������������������������������������������� 2026-27
FTE
positions�������������������������������� 7.0
Lump sum
appropriation������������� $   734,700
Fund sources:
State
general fund����������������� $   734,700
Sec. 36. BOARD OF EXECUTIVE CLEMENCY
��������������������������������������������������� 2026-27
FTE positions������������������������������� 15.5
Lump sum appropriation������������� $  1,639,300
Fund sources:
State general fund����������������� $  1,639,300
On or before November 1, 2026, the
board of executive clemency shall report to the directors of the joint
legislative budget committee and the governor's office of strategic planning
and budgeting the total number and types of cases the board reviewed in fiscal
year 2025-2026.
Sec. 37. ARIZONA
EXPOSITION AND STATE FAIR BOARD
��������������������������������������������������� 2026-27
FTE
positions������������������������������ 184.0
Lump sum
appropriation�������������� $ 19,762,800
Fund
sources:
Arizona
exposition and state
 fair
fund������������������������� $ 19,762,800
Of the monies appropriated in the
Arizona exposition and state fair board lump sum appropriation, $2,000,000
shall be spent for enhanced state fair operations. Pursuant to
section 41-1252, Arizona Revised Statutes, before spending monies
appropriated in the lump sum appropriation on capital projects, the board shall
submit a report for review by the joint committee on capital review on the
scope, purpose and estimated cost of the capital improvements.
The $2,000,000 appropriated to the
Arizona exposition and state fair board by Laws 2025, chapter 233, section 37
in fiscal year 2025-2026 for enhanced state fair operations is exempt from the
provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of
appropriations, until June 30, 2027.
Sec. 38. ARIZONA
DEPARTMENT OF FORESTRY AND FIRE MANAGEMENT
����������������������������������������� 2026-27
FTE
positions������������������������������ 215.5
Operating
lump sum appropriation��� $  6,303,100
Environmental
county grants�������������� 250,000
Inmate
firefighting crews���������������� 902,700
Postrelease
firefighting crews��������� 1,332,700
Fire
suppression���������������������� 10,200,000
State
fire marshal��������������������� 1,844,400
State
fire school������������������������ 291,700
Hazardous
vegetation removal��������   3,039,300
US
forest service land thinning�������� 1,703,400
Wildfire
mitigation ����������������  27,354,900
Total appropriation � Arizona
department
of forestry and fire management���� $ 53,222,200
Fund sources:
State general fund����������������� $ 53,222,200
Of the amount appropriated in the fire
suppression line item, $10,000,000 shall be used for the purposes prescribed by
and are subject to the restrictions outlined in Laws 2021, first special
session, chapter 1, section 1, as amended by Laws 2022, chapter 1, section
1. Of the amount appropriated in the fire suppression line item,
$10,000,000 is exempt from the provisions of section 35-190, Arizona
Revised Statutes, relating to the lapsing of appropriations, through June 30,
2029.
The appropriation for the hazardous
vegetation removal line item is exempt from the provisions of section 35-190,
Arizona Revised Statutes, relating to lapsing of appropriations, until June 30,
2028.
The appropriation for the wildfire
mitigation line item is exempt from the provisions of section 35-190, Arizona
Revised Statutes, relating to lapsing of appropriations, until June 30, 2029.
Sec. 39. ARIZONA GAME
AND FISH DEPARTMENT
��������������������������������������������������� 2026-27
FTE
positions������������������������������ 273.5
Operating
lump sum appropriation��� $ 45,460,200
Pittman-Robertson/Dingell-Johnson
  act�����������������������������   3,058,000
Total
appropriation � Arizona game and fish
department������������������������� $ 48,518,200
Fund
sources:
Capital
improvement fund����������� $  1,001,200
Game
and fish fund�������������������� 42,033,600
Wildlife
endowment fund������������������� 16,200
Watercraft
licensing fund�������������� 5,071,100
Game,
nongame, fish and
  endangered
species fund��������������� 396,100
Sec. 40. DEPARTMENT OF GAMING
��������������������������������������������������� 2026-27
FTE positions������������������������������ 130.8
Operating lump sum appropriation��� $ 13,590,000
Arizona
breeders' award������������������ 250,000
Casino operations
certification�������� 2,346,100
County fairs livestock and
  agriculture promotion��������������� 6,029,500
Division
of racing��������������������� 2,372,700
Contract
veterinarian�������������������� 175,000
Horseracing
integrity and safety
  act
assessment���������������������� 2,000,000
Racing
regulation fund deposit��������� 1,900,000
Problem
gambling������������������� 4,000,000
Total appropriation � department of gaming�� $ 32,663,300
Fund
sources:
State
general fund������������������ $ 8,104,500
Tribal-state
compact fund�������������� 2,346,100
Arizona
benefits fund����������������� 17,290,000
State
lottery fund����������������������� 300,000
Racing regulation
fund����������������� 4,622,700
The amount appropriated to the county
fairs livestock and agriculture promotion line item is for deposit in the
county fairs livestock and agriculture promotion fund established by section
5-113, Arizona Revised Statutes, and to be administered by the office of the
governor.
On or before August 1, 2026, the
department of gaming shall report to the directors of the joint legislative
budget committee and the governor's office of strategic planning and budgeting
on the expected amount and purpose of expenditures from the event wagering fund
established by section 5-1318, Arizona Revised Statutes, for fiscal year
2026-2027. The report must include the projected line item detail
and the number of filled full-time equivalent positions.
On or before the final day of each
quarter of fiscal year 2026-2027, the department of gaming shall report to the
members of the joint legislative budget committee on the number of equine
deaths and injuries that occurred as a result of a horse race and the
commercial live racing facility where each incident occurred. The
report must include the number of prerace inspections performed by a
veterinarian employed by or contracted with this state.
The amount appropriated for the
horseracing integrity and safety act assessment line item shall be used by the
department of gaming during fiscal year 2026-2027 to pay the calendar year 2026
assessment levied by the horseracing integrity and safety authority.
Sec. 41. OFFICE OF THE GOVERNOR
��������������������������������������������������� 2026-27
Operating lump sum appropriation��� $ 8,144,700*
Foster
youth education success
  fund
deposit���������������������   1,500,000
Total appropriation � office of the governor� $ 9,644,700
Fund sources:
State general fund������������������ $ 9,644,700
Included in the operating lump sum
appropriation of $8,144,700 for fiscal year 2026-2027 is $10,000 for the purchase of
mementos and items for visiting officials.
Sec. 42. GOVERNOR'S OFFICE OF STRATEGIC PLANNING AND BUDGETING
��������������������������������������������������� 2026-27
FTE positions������������������������������� 22.0
Lump sum appropriation������������� $ 2,854,500*
Fund sources:
State general fund������������������ $ 2,854,500
Sec. 43. DEPARTMENT OF HEALTH SERVICES
��������������������������������������������������� 2026-27
FTE positions���������������������������� 1,129.5
Operating lump sum appropriation���� $ 66,388,500
Public health/family
health
Adult
cystic fibrosis care��������������� 105,200
AIDS
reporting and surveillance�������� 1,000,000
Alzheimer's
disease research����������� 4,125,000
Behavioral
health care provider ����������������
  loan
repayment program�������������� 1,000,000
Biomedical
research support������������ 2,000,000
Breast
and cervical cancer and
  bone
density screening�������������� 1,369,400
Cooling
centers for heat relief���������� 400,000
County
tuberculosis provider
  care
and control���������������������� 590,700
Dementia
services program and
  Alzheimer's
disease state plan�������� 700,000
Enhanced
residential treatment����������� 250,000
Folic acid
program����������������������� 400,000
Funeral
services regulation�������������� 460,600
High-risk
perinatal services����������� 2,343,400
Newborn
screening program ������������ 15,967,000
Nonrenal
disease management�������������� 198,000
Nursing
care special projects������������ 200,000
Poison
control centers funding����������� 990,000
Radiation
protection system grants����� 1,500,000
Renal
dental care and nutrition
  supplements��������������������������� 300,000
Renal
transplant drugs������������������� 183,000
Arizona state hospital
Arizona state hospital �
  operating�������������������������� 82,070,500
Arizona state hospital �
  restoration to competency������������� 900,000
Arizona state hospital �
  sexually
violent persons���������  12,940,100
Total appropriation � department of����������������������
health
services��������������������� $196,381,400
Fund sources:���������������������������������������
State
general fund������������������ $122,263,600
Arizona
state hospital fund������������ 3,395,700
Arizona
state hospital land fund������� 1,596,600
Child
fatality review fund��������������� 196,500
Disease
control research fund���������� 1,000,000
DHS
indirect cost fund���������������� 13,822,200
Emergency
medical services
  operating
fund���������������������� 4,278,400
Environmental
laboratory licensure
  revolving
fund���������������������� 1,013,100
Federal
child care and development
  fund
block grant�������������������� 1,286,500
Health
services licensing fund�������� 23,641,400
Health
services lottery monies fund���� 2,600,000
Newborn
screening program fund�������� 16,386,100
Nursing
care institution resident���������������
  protection
revolving fund������������� 238,200
Tobacco
tax and health care
  fund
� medically needy account������� 700,000
Vital
records electronic systems
  fund
������������������������������� 3,963,100
Public health/family health
Of the amount appropriated for the
operating lump sum, $100,000 shall be used for a suicide prevention coordinator
to assist school districts and charter schools in suicide prevention
efforts. On or before September 1, 2027, the department of health
services, in consultation with the department of education, shall report to the
governor, the president of the senate, the speaker of the house of
representatives, the director of the joint legislative budget committee and the
director of the governor's office of strategic planning and budgeting on the
suicide prevention coordinator's accomplishments in fiscal year 2026-2027.
The department of health services may
use up to four percent of the amount appropriated for nonrenal disease
management for the administrative costs to implement the program.
The department of health services
shall distribute monies appropriated for the biomedical research support line
item to a nonprofit medical research institute headquartered in this state that
specializes in biomedical research focusing on applying genomic technologies
and sequencing to clinical care, that has served as a resource to this state to
conduct molecular epidemiologic analyses to assist with disease outbreak
investigations and that collaborates with universities, hospitals and health
science research centers and other public and private bioscience and related
industries in this state. The recipient of these monies shall
commission an audit of the expenditure of these monies and shall submit a copy
of the audit to the department of health services on or before February 1,
2028.
The department of health services
shall distribute monies appropriated for Alzheimer's disease research through a
grant to a charitable organization that is qualified under section 501(c)(3) of
the internal revenue code and that meets the following criteria:
1. Is headquartered in this
state.
2. Has been operating in
this state for at least the last ten years.
3. Has participating member
institutions that work together to end Alzheimer's disease within a statewide
collaborative model by using their complementary strengths in brain imaging,
computer science, genomics, basic and cognitive neurosciences and clinical and
neuropathology research.
4. Has participating member
institutions that educate residents of this state about Alzheimer's disease,
research progress and resources to help patients, families and professionals
manage the disease.
The terms of the grant made to the
charitable organization may not impose any requirements that were not imposed
in prior grant agreements entered into between the department of health
services and the charitable organization.
The amount appropriated in the cooling
centers for heat relief line item is exempt from the provisions of section
35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until
October 31, 2027.
The amount appropriated to the
radiation protection system grants line item shall be used by the department to
establish and administer a grant program to assist rural hospitals with the
cost of installing radiation protection systems in cardiac catheterization
procedure rooms in which real-time x-ray imaging procedure occur.
Arizona state hospital
In addition to the appropriation for
the department of health services, earnings on state lands and interest on the
investment of the permanent state land funds are appropriated to the Arizona
state hospital in compliance with the enabling act and the Constitution of
Arizona.
Department-wide
The department of health services
shall electronically forward to the president of the senate, the speaker of the
house of representatives, the chairpersons of the senate and house of
representatives appropriations committees and the director of the joint
legislative budget committee a monthly report comparing total expenditures for
the month and year-to-date as compared to prior year totals on or
before the thirtieth of the following month. Each report must
include an estimate of potential shortfalls in programs, potential federal and
other monies, such as the statewide assessment for indirect costs, that may be
available to offset these shortfalls, and a plan, if necessary, for eliminating
any shortfall without a supplemental appropriation.
Sec. 44. ARIZONA
HISTORICAL SOCIETY
��������������������������������������������������� 2026-27
FTE
positions������������������������������� 54.9
Operating
lump sum appropriation���� $ 2,394,900
Field
services and grants����������������� 66,900
Papago
park museum�������������������   572,600
Total
appropriation � Arizona historical
society����������������������������� $ 3,034,400
Fund sources:
State
general fund������������������ $ 3,034,400
If the
Arizona historical society donations fund unrestricted balance is less than
$300,000 in fiscal year 2026-2027, the Arizona historical society may use not
more than $549,600 from the state parks revenue fund established in section
41-511.21, Arizona Revised Statutes, for operating expenditures. The
Arizona historical society shall notify the joint legislative budget committee
if the balance of the Arizona historical society donations fund is less than
$300,000 in fiscal year 2026-2027 and shall submit a report to the joint
legislative budget committee on the intended uses of any monies from the state
parks revenue fund before spending any monies for operating expenditures.
Sec. 45. PRESCOTT HISTORICAL SOCIETY
��������������������������������������������������� 2026-27
FTE positions������������������������������� 13.0
Lump sum appropriation�������������� $ 1,074,300
Fund sources:
State
general fund������������������ $ 1,074,300
Sec. 46. ARIZONA DEPARTMENT OF HOMELAND SECURITY
��������������������������������������������������� 2026-27
FTE positions������������������������������� 26.0
Statewide information security
  and privacy operations and
  controls������������������������� $ 11,145,200
Multi-factor authentication�������������� 850,000
Cyber ready Arizona�����������������  11,500,000
Total appropriation � Arizona
department of
homeland
security������������������� $ 23,495,200
Fund sources:
State general fund������������������ $ 10,000,000
Information technology fund���������  11,995,200
Highway patrol fund�������������������� 1,500,000
Of the amount appropriated for the cyber ready Arizona line
item, the Arizona department of homeland security may spend up to $500,000 for
administration and not more than
$11,000,000 to purchase cybersecurity tool licenses. With the
exception of the $500,000 allowed for administration, monies in the cyber ready
Arizona line item may not be used to support permanent FTE positions at any
state agency or political subdivision of this state. In addition to
any existing recipient class, the department may consider grant applications
from water and wastewater
facilities.
Sec. 47. BOARD OF HOMEOPATHIC AND INTEGRATED
MEDICINE EXAMINERS
��������������������������������������������������� 2026-27
FTE
positions�������������������������������� 1.0
Lump
sum appropriation�������������� $   64,200
Fund
sources:
Board of
homeopathic and
  integrated
medicine
  examiners'
fund������������������ $   64,200
Sec. 48. ARIZONA DEPARTMENT
OF HOUSING
��������������������������������������������������� 2026-27
FTE
positions�������������������������������� 3.0
Lump
sum appropriation�������������� $  360,700
Fund sources:
Housing
trust fund������������������ $  360,700
Sec. 49. INDUSTRIAL COMMISSION OF ARIZONA
��������������������������������������������������� 2026-27
FTE
positions������������������������������ 215.6
Operating
lump sum appropriation���� $ 23,213,100
Municipal
firefighter reimbursement
  administration�������������������    90,100
Total appropriation � industrial
commission
of Arizona����������������������   $ 23,303,200
Fund sources:
State general fund������������������ $   90,100
Administrative fund������������������  23,213,100
The
legislature intends that the state general fund appropriation be used only for
administrative costs of title 23, chapter 11, Arizona Revised Statutes, and
that this appropriation does not convey any responsibility for firefighter
cancer compensation and benefits claims to this state.
Sec. 50. DEPARTMENT OF INSURANCE AND FINANCIAL INSTITUTIONS
����������������������������������������� 2026-27
FTE
positions������������������������������ 141.4
Operating
lump sum appropriation���� $ 15,451,700
Arizona
vehicle theft task force������� 4,552,600
Automobile theft authority
  operating budget���������������������� 697,100
Local
grants��������������������������� 1,388,900
Reimbursable
programs���������������    50,000
Total appropriation � department of
insurance
and financial
institutions���������� $ 22,140,300
Fund sources:
State
general fund������������������ $ 1,580,300
Automobile
theft authority fund�������� 6,837,300
Financial
services fund���������������� 6,257,500
Financial
surveillance fund������������ 7,414,900
Department
revolving fund����������������� 50,300
Monies in the Arizona vehicle theft
task force line item shall be used by the department of insurance and financial
institutions to pay seventy-five percent of the personal services and
employee-related expenditures and one
hundred percent of overtime expenditures for
city, town and county sworn officers who participate in the Arizona vehicle
theft task force.
Local grants shall be awarded with
consideration given to areas with greater automobile theft problems and shall
be used to combat economic automobile theft operations.
The department of insurance and
financial institutions shall submit a report to the joint legislative budget
committee before spending any monies for the reimbursable programs line
item. The department shall show sufficient monies collected to cover
the expenses indicated in the report.
Of the department fees required by
statute to be deposited in the financial surveillance fund established by
section 20-156, Arizona Revised Statutes, the legislature intends that
the department of insurance and financial institutions assess and set the fees
at a level to ensure that the available resources in the financial surveillance
fund, including any carryforward balance, will equal or exceed the amount
appropriated from the financial surveillance fund.
Of the department fees required by
statue to be deposited in the state general fund, the legislature intends that
the department assess and set the fees at rates that equal or exceed those
expended in fiscal year 2025-2026.
The operating lump sum appropriation
includes a $1,000,000 increase from the financial surveillance fund for the
department's financial institutions division.
Sec. 51. ARIZONA
JUDICIARY
��������������������������������������������������� 2026-27
Supreme
court
FTE
positions������������������������������ 208.0
Operating
lump sum appropriation���� $ 19,435,000
Fair jury improvement
  fund deposit ����������������������� 1,620,000
Automation���������������������������� 25,114,100
County reimbursements�������������������� 187,900
Court
appointed special advocate
  and
vulnerable persons�������������� 6,840,800
Courthouse
security���������������������� 752,100
Domestic
relations����������������������� 726,700
State
foster care review board��������� 3,680,500
Commission
on judicial conduct����������� 802,800
Judicial
nominations and
  performance
review�������������������� 641,900
Model
court������������������������������ 660,800
State
aid���������������������������   5,962,100
Probation
electronic monitoring
  system
operating costs�����������   1,300,000
Total appropriation � supreme court���������� $ 67,724,700
Fund sources:
State
general fund������������������ $ 30,599,500
Confidential
intermediary and
  fiduciary fund������������������������ 702,400
Court appointed special advocate
  and vulnerable
persons fund��������� 8,348,600
Criminal justice enhancement fund������ 4,779,700
Defensive
driving school fund���������� 4,498,500
Judicial
collection enhancement
  fund������������������������������� 15,849,400
State
aid to the courts fund����������� 2,946,600
On or before September 1, 2026, the
supreme court shall report to the joint legislative budget committee and the
governor's office of strategic planning and budgeting on current and future
automation projects coordinated by the administrative office of the
courts. The report must include a list of court automation projects
that receive or are anticipated to receive state monies in the current or next
two fiscal years as well as a description of each project, the number of FTE
positions, the entities involved and the goals and anticipated results for each
automation project. The report must be submitted in one summary
document. The report must indicate each project's total multiyear
cost by fund source and budget line item, including any prior year, current
year and future year expenditures.
Pursuant to section 41-1904, Arizona
Revised Statutes, as of January 1, 2027, the annual salary for the chief
justice of the supreme court is $242,000 and the annual salary for the other
justices of the supreme court is $235,000.
Automation expenses of the judiciary
shall be funded only from the automation line item. Monies in the
operating lump sum appropriation or other line items intended for automation
purposes shall be transferred to the automation line item before expenditure.
Included in the operating lump sum
appropriation for the supreme court is $1,000 for the purchase of mementos and
items for visiting officials.
Of the $187,900 appropriated for
county reimbursements, state grand jury is limited to $97,900 and capital
postconviction relief is limited to $90,000.
The amount appropriated for probation
electronic monitoring system operating costs in fiscal year 2026-2027 shall be
used for the continued operation of a statewide mobile electronic monitoring
system for sex offenders on probation supervision and may only be used for
contracted statewide mobile electronic monitoring platform services, including:
1. Approved mobile devices
and data services.
2. Software licensing and
maintenance.
3. Officer training.
4. Contractor compliance
intervention services directly related to operation of the program.
����� The
administrative office of the courts may authorize participating criminal
justice and supervision agencies to use the statewide mobile electronic
monitoring platform and related services, which may include the state
department of corrections, county sheriff's offices, probation departments,
pretrial services, diversion programs and specialty courts. Beginning in fiscal
year 2026-2027, the administrative office of the courts shall submit quarterly
expenditure, enrollment, compliance and utilization reports for the system to
the governor, the president of the senate and the speaker of the house of
representatives. If any monies remain from the
appropriation from the probation electronic monitoring system operating costs
line item in fiscal year 2026-2027 after satisfying all obligations
pursuant to this section, the administrative office of the courts may use the
remaining monies to operate the system for other violent offender populations.
Court
of appeals
FTE
positions������������������������������ 163.8
Division
one������������������������ $ 16,988,900
Division
two������������������������   8,805,400
Total appropriation � court of appeals������� $ 25,794,300
Fund sources:
State
general fund������������������ $ 25,794,300
Of the 163.8 FTE positions for fiscal
year 2026-2027, 112.3 FTE positions are for division one and 51.5 FTE positions
are for division two.
Pursuant to section 41-1904, Arizona
Revised Statutes, as of January 1, 2027, the annual salary for a judge of the
court of appeals is $220,000.
Superior
court
FTE
positions������������������������������ 241.5
Operating
lump sum appropriation���� $ 5,308,000
Judges'
compensation������������������ 34,092,000
Centralized
service payments����������� 4,687,600
Adult standard probation�������������� 29,108,300
Adult intensive probation������������� 16,362,300
Community
punishment������������������� 2,310,300
Court-ordered
removals������������������� 315,000
Interstate
compact����������������������� 605,100
Drug
court����������������������������� 1,096,400
General
adjudication personnel
  and
support fund deposit������������ 2,000,000
Juvenile
standard probation������������ 4,001,500
Juvenile
intensive probation����������� 6,087,200
Juvenile
treatment services����������� 20,803,000
Juvenile
family counseling��������������� 500,000
Juvenile
crime reduction��������������� 3,313,000
Juvenile
diversion consequences�������� 9,215,300
Probation
incentive payments����������� 1,000,000
Special
water master����������������    511,100
Total appropriation � superior court��������� $141,316,100
Fund sources:
State general fund������������������ $129,301,600
Criminal
justice enhancement fund������ 5,494,900
Drug
treatment and education fund�������� 504,200
Judicial
collection enhancement
  fund�������������������������������� 6,015,400
Operating
budget
All expenditures made by the
administrative office of the courts to administer superior court line items
shall be funded only from the superior court operating
budget. Monies in superior court line items intended for this
purpose shall be transferred to the superior court operating budget before
expenditure.
Judges
Of the 241.5
FTE positions, 183 FTE positions represent superior court judges. This FTE position clarification does not limit the counties'
ability to add judges pursuant to section 12-121, Arizona Revised
Statutes.
All
monies in the judges' compensation line item shall be used to pay for fifty
percent of superior court judges' salaries, elected officials' retirement plan
costs and related state benefit costs for judges pursuant to section 12-128,
Arizona Revised Statutes. Monies in the operating lump sum
appropriation or other line items intended for this purpose shall be
transferred to the judges' compensation line item before expenditure.
Pursuant to section 41-1904, Arizona
Revised Statutes, as of January 1, 2027, the annual salary for a superior court
judge is $210,000.
Probation
Monies
appropriated to juvenile treatment services and juvenile diversion consequences
line items shall be deposited in the juvenile probation services fund
established by section 8-322, Arizona Revised Statutes.
Receipt of state probation monies by
the counties is contingent on the county maintenance of fiscal year 2019-2020
expenditure levels for each probation program. State probation
monies are not intended to supplant county dollars for probation programs.
On or before November 1, 2026, the
administrative office of the courts shall report to the joint legislative
budget committee and the governor's office of strategic planning and budgeting
the fiscal year 2025-2026 actual, fiscal year 2026-2027 estimated and fiscal
year 2027-2028 requested amounts for each of the following:
1. On a county-by-county
basis, the number of authorized and filled case carrying probation positions
and non-case carrying probation positions, distinguishing between adult
standard, adult intensive, juvenile standard and juvenile intensive. The
report must indicate the level of state probation funding, other state funding,
county funding and probation surcharge funding for those positions.
2. Total receipts and
expenditures by county and fund source for the adult standard, adult intensive,
juvenile standard and juvenile intensive probation line items, including the
amount of personal services spent from each revenue source of each account.
All centralized service payments made
by the administrative office of the courts on behalf of counties shall be
funded only from the centralized service payments line
item. Centralized service payments include only training, motor
vehicle payments, CORP review board funding, LEARN funding, research,
operational reviews and GPS vendor payments. This footnote does not apply to
treatment or counseling services payments made from the juvenile treatment
services and juvenile diversion consequences line items. Monies in the
operating lump sum appropriation or other line items intended for centralized
service payments shall be transferred to the centralized service payments line
item before expenditure.
All
monies in the adult standard probation, adult intensive probation, community
punishment, interstate compact, juvenile standard probation, juvenile intensive
probation, juvenile treatment services, juvenile diversion consequences,
juvenile crime reduction and probation incentive payments line items shall be
used only as pass-through monies to county probation
departments. Monies in the operating lump sum appropriation or other
line items intended as pass-through for the purpose of administering a county
probation program shall be transferred to the appropriate probation line item
before expenditure.
On or before November 1, 2026, the
administrative office of the courts shall submit a report to the joint
legislative budget committee on the county-approved salary adjustments provided
to probation officers since the last report on November 1, 2025. The
administrative office shall also submit a copy of the report to the governor's
office of strategic planning and budgeting. The report must include,
for each county, the:
1. Approved percentage
salary increase by year.
2. Net increase in the
amount allocated to each probation department by the administrative office of
the courts for each applicable year.
3. Average number of
probation officers by applicable year.
4. Average salary of
probation officers for each applicable year.
Sec. 52. DEPARTMENT OF JUVENILE CORRECTIONS
��������������������������������������������������� 2026-27
FTE positions������������������������������ 583.5
Lump sum appropriation�������������� $ 46,105,800
Fund sources:
State
general fund������������������ $ 32,808,000
State
charitable, penal and
  reformatory
institutions
  land fund��������������������������� 4,054,400
Criminal
justice enhancement fund������ 1,028,000
State
education fund for committed
   youth ������������������������������ 1,491,400
Department of juvenile corrections
  local cost sharing fund������������� 6,724,000
Twenty-five percent of land
earnings and interest from the state charitable, penal and reformatory
institutions land fund shall be distributed to the department of juvenile
corrections, in compliance with section 25 of the enabling act and the
Constitution of Arizona, to be used to support state juvenile institutions and
reformatories.
The department's lump sum
appropriation includes funding to convert the onetime stipend for youth
correctional officers equal to four percent of the annual salary appropriated
in fiscal year 2025-2026 into a four percent annual salary increase in fiscal year
2026-2027.
Sec. 53. STATE LAND
DEPARTMENT
��������������������������������������������������� 2026-27
FTE
positions������������������������������ 145.7
Operating
lump sum appropriation���� $ 19,861,000
CAP
user fees�������������������������� 1,408,000
Due
diligence program����������������  5,000,000
Total appropriation � state land
department�� $ 26,269,000
Fund sources:
State general fund������������������ $ 12,030,000
Off-highway
vehicle recreation
  fund���������������������������������� 177,600
Due
diligence fund��������������������� 5,000,000
Trust
land management fund������������� 9,061,400
The appropriation includes $1,408,000
for CAP user fees in fiscal year 2026-2027. For fiscal year
2026-2027, from municipalities that assume their allocation of central Arizona
project water for every dollar received as reimbursement to this state for past
central Arizona water conservation district payments, $1 reverts to the state
general fund in the year that the reimbursement is collected.
Sec. 54. LEGISLATURE
����������������������������������������� 2026-27
Senate
Lump sum appropriation������������� $ 18,064,300*
Fund sources:
State general fund������������������ $ 18,064,300
Included in the lump sum appropriation
of $18,064,300 for
fiscal year 2026-2027 is $5,000 for the purchase of mementos and items for
visiting officials.
House of representatives
Lump
sum appropriation������������� $ 21,795,300*
Fund sources:
State general fund������������������ $ 21,795,300
Included in the lump sum appropriation
of $21,795,300
for fiscal year 2026-2027 is $5,000 for the purchase of mementos and items for
visiting officials.
Legislative
council
FTE positions������������������������������� 63.0
Lump sum appropriation�������������� $ 9,422,400*
Fund sources:
State
general fund������������������� $ 9,422,400
Ombudsman-citizens
aide office
FTE positions������������������������������� 12.0
Lump sum appropriation�������������� $ 1,608,900*
Fund sources:
State
general fund������������������ $ 1,608,900
The legislature intends that the
ombudsman-citizens aide prioritize investigating and processing complaints
relating to the department of child safety.
The operating budget includes $137,500
and 1 FTE position to address complaints relating to the administration of the
Arizona empowerment scholarship account program established by section 15-2402,
Arizona Revised Statutes.
Joint
legislative budget committee
FTE
positions������������������������������� 29.0
Lump sum appropriation�������������� $ 3,071,000*
Fund sources:
State general fund������������������ $ 3,071,000
Auditor
general
FTE positions������������������������������ 236.8
Operating lump sum appropriation���� $26,709,000*
State employee health plan
  special audit��������������������    500,000
Total
appropriation � auditor general��������� $ 27,209,000
Fund sources:
State general fund������������������ $ 26,709,000
Special employee health
  insurance trust fund�������������    500,000
Of the amount
appropriated for the operating lump sum appropriation, the auditor general
shall use $3,300,000 for additional agency performance audits and school
district audits.
The auditor general shall use the
monies in the state employee health plan special audit line item for a special
audit of the state employee health plan. The auditor general shall
contract with an independent third party to conduct the special
audit. The special audit must include the state employee health
plan's application of best practices in health insurance cost containment and
must include a forensic audit of a sample of claims from fiscal year 2025-2026.
Sec. 55. DEPARTMENT
OF LIQUOR LICENSES AND CONTROL
��������������������������������������������������� 2026-27
FTE positions������������������������������� 59.2
Lump sum appropriation�������������� $ 7,052,800
Fund sources:
Liquor licenses fund���������������� $ 7,052,800
The $2,900,000 appropriated to the department of liquor
licenses and control by Laws 2025, chapter 233, section 109 in fiscal year
2025-2026 to modernize the department's records system is exempt from the
provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of
appropriations, until June 30, 2028. The department may use the
monies in this paragraph for the implementation of regulations for alternative
nicotine products.
Sec. 56. ARIZONA STATE
LOTTERY COMMISSION
��������������������������������������������������� 2026-27
FTE
positions������������������������������� 98.8
Operating
lump sum appropriation���� $ 10,153,900
Advertising�������������������������  15,500,000
Total appropriation � Arizona state
lottery
commission������������������ $ 25,653,900
Fund sources:
State
lottery fund������������������ $ 25,653,900
An amount equal to twenty percent of
tab ticket sales is appropriated to pay sales commissions to charitable
organizations. This amount is currently estimated to be $1,976,000 in fiscal
year 2026-2027.
An amount equal to 3.6 percent of
actual instant ticket sales is appropriated to print instant tickets or to pay
contractual obligations concerning instant ticket distribution. This
amount is currently estimated to be $41,473,100 in fiscal year 2026-2027.
An amount equal to a percentage of
total ticket sales as determined by contract is appropriated to pay online
vendor fees. This amount is currently estimated to be $17,424,200, or 1.079
percent of total ticket sales, in fiscal year 2026-2027.
An amount equal to 6.5 percent of
gross lottery game sales, minus charitable tab tickets, is appropriated to pay
sales commissions to ticket retailers. An additional amount not to
exceed 0.5 percent of gross lottery game sales is appropriated to pay sales
commissions to ticket retailers. The combined amount is currently
estimated to be $107,533,000, or 6.7 percent of total ticket sales, in fiscal
year 2026-2027.
Sec. 57. BOARD OF
MASSAGE THERAPY
��������������������������������������������������� 2026-27
FTE
positions�������������������������������� 5.0
Lump sum
appropriation�������������� $  601,200
Fund sources:
Board of
massage therapy fund������� $  601,200
Sec. 58. ARIZONA MEDICAL
BOARD
��������������������������������������������������� 2026-27
FTE
positions������������������������������� 63.5
Operating
lump sum appropriation���� $ 8,307,100
Employee
performance incentive
  program��������������������������    165,600
Total appropriation � Arizona
medical
board������������������������������� $ 8,472,700
Fund sources:
Arizona
medical board fund���������� $ 8,472,700
Sec. 59. STATE MINE INSPECTOR
��������������������������������������������������� 2026-27
FTE positions������������������������������� 22.0
Operating lump sum appropriation���� $ 1,587,400
Abandoned
mines�������������������������� 844,000
Aggregate
mining land reclamation���    112,800
Total appropriation � state mine inspector��� $ 2,544,200
Fund sources:
State general fund������������������ $ 2,431,400
Aggregate mining reclamation fund�������� 112,800
All aggregate mining reclamation fund
monies received by the state mine inspector in excess of $112,800 in fiscal
year 2026-2027 are appropriated to the aggregate mining land reclamation line
item. Before spending any aggregate mining reclamation fund monies in excess of
$112,800 in fiscal year 2026-2027, the state mine inspector shall report the
intended use of the monies to the joint legislative budget committee and the
governor's office of strategic planning and budgeting.
Sec. 60. STATE NATURAL
RESOURCE CONSERVATION BOARD
��������������������������������������������������� 2026-27
Natural resource conservation
  district fund deposit������������� $  650,000
Total appropriation � state
natural resource
  conservation board���������������� $  650,000
Fund sources:
State general fund������������������� $  389,400
Environmental special plate fund��������� 260,600
Of the
amount appropriated for deposit in the natural resource conservation district
fund established by section 41-6014, Arizona Revised Statutes, in fiscal year
2026-2027, $30,000 shall be used to provide grants to natural resource
conservation districts environmental education centers.
The
$100,000 appropriated to the natural resource conservation board by Laws 2025,
chapter 233, section 60 in fiscal year 2025-2026 for the lump sum appropriation
is exempt from the provisions of section 35-190, Arizona Revised Statutes,
relating to lapsing of appropriations.
Sec. 61. NATUROPATHIC
PHYSICIANS MEDICAL BOARD
��������������������������������������������������� 2026-27
FTE
positions�������������������������������� 2.0
Lump
sum appropriation�������������� $  221,800
Fund sources:
Naturopathic
physicians medical
  board
fund����������������������� $  221,800
Sec. 62. ARIZONA NAVIGABLE STREAM ADJUDICATION COMMISSION
��������������������������������������������������� 2026-27
FTE
positions�������������������������������� 2.0
Lump
sum appropriation�������������� $  343,900
Fund sources:
State general fund������������������ $  143,900
Arizona water banking fund��������������� 200,000
Sec. 63. ARIZONA STATE
BOARD OF NURSING
��������������������������������������������������� 2026-27
FTE positions������������������������������� 70.0
Operating lump sum appropriation���� $ 7,158,000
Certified nursing assistant
  credentialing
program������������    557,000
Total appropriation � Arizona state
board of nursing�������������������� $ 7,715,000
Fund sources:
Board of nursing fund��������������� $ 7,715,000
Sec. 64. BOARD OF EXAMINERS OF NURSING CARE
INSTITUTION ADMINISTRATORS
��������� AND ASSISTED LIVING FACILITY MANAGERS
��������������������������������������������������� 2026-27
FTE positions�������������������������������� 7.0
Lump sum appropriation�������������� $  611,600
Fund
sources:
Nursing care institution
  administrators'
licensing and
  assisted
living facility
  managers'
certification fund����� $  611,600
Of the amount appropriated in the lump sum appropriation,
$30,000 may be used to pay outstanding costs of services provided by the
department of administration�central services bureau in prior years.
Sec. 65. BOARD OF
OCCUPATIONAL THERAPY EXAMINERS
��������������������������������������������������� 2026-27
FTE
positions�������������������������������� 2.0
Lump sum appropriation�������������� $  298,000
Fund sources:
Occupational
therapy fund����������� $  298,000
Sec. 66. STATE BOARD OF DISPENSING OPTICIANS
����������������������������������������� 2026-27
FTE positions�������������������������������� 1.0
Lump sum
appropriation�������������� $  229,700
Fund
sources:
Board of
dispensing opticians fund�� $  229,700
Sec. 67. STATE BOARD OF OPTOMETRY
����������������������������������������� 2026-27
FTE positions�������������������������������� 2.0
Lump sum appropriation�������������� $  288,000
Fund
sources:
Board of
optometry fund������������� $  288,000
Sec. 68. ARIZONA BOARD
OF OSTEOPATHIC EXAMINERS IN MEDICINE AND SURGERY
����������������������������������������� 2026-27
FTE
positions������������������������������� 15.0
Lump sum
appropriation�������������� $ 1,926,100
Fund sources:
Arizona board of osteopathic
  examiners in medicine
  and
surgery fund����������������� $ 1,926,100
Sec. 69. ARIZONA STATE PARKS BOARD
����������������������������������������� 2026-27
FTE positions������������������������������ 180.0
Operating
lump sum appropriation���� $ 18,443,100
Broadband
infrastructure operations
  and
maintenance����������������������� 242,100
State
parks store���������������������� 1,530,200
Kartchner
caverns state park��������   2,587,700
Water
and wastewater infrastructure
  operations
and maintenance��������   541,000
Total appropriation � Arizona state
parks
board������������������������������� $ 23,344,100
Fund sources:
State
parks revenue fund������������ $ 21,797,200
State
parks store fund����������������� 1,530,200
Off-highway
vehicle recreation fund������� 16,700
In addition to the operating lump sum
appropriation, an amount equal to the revenue share agreement with the United
States forest service for Fool Hollow Lake recreation area and Catalina state
park is appropriated to the Arizona state parks board from the state parks
revenue fund established by section 41-511.21, Arizona Revised Statutes.
If monies are available for land and
water conservation grant funding to the Arizona state parks board for capital
projects in fiscal year 2026-2027, the board shall report its revised
expenditure plans to the joint committee on capital review and the governor's
office of strategic planning and budgeting.
If federal historic preservation fund
grant monies are unavailable to the state historic preservation office in
federal fiscal year 2026-2027, the Arizona state parks board may spend up
to $1,400,000 of the monies in the state parks revenue fund established by
section 41-511.21, Arizona Revised Statutes, to pay for the state historic
preservation office's operating expenses. Before spending any monies
from the state parks revenue fund for state historic preservation office
operating expenses, the Arizona state parks board shall report its expenditure
plan to the joint legislative budget committee.
The $10,000,000 appropriated to the
Arizona state parks board by Laws 2023, chapter 199, section 6 in fiscal year
2023-2024 for a veterans memorial state park is exempt from the provisions of
section 35-190, Arizona Revised Statutes, relating to lapsing of
appropriations, until June 30, 2028.
Sec. 70. STATE PERSONNEL
BOARD
2026-27
FTE
positions�������������������������������� 2.0
Lump sum
appropriation�������������� $  369,900
Fund sources:
Personnel division fund �
  personnel
board subaccount������� $  369,900
Sec. 71. ARIZONA STATE
BOARD OF PHARMACY
��������������������������������������������������� 2026-27
FTE
positions������������������������������� 26.4
Operating
lump sum appropriation���� $ 3,693,900
Prescriber
report card��������������    50,000
Total appropriation � Arizona state
board of
pharmacy������������������� $ 3,743,900
Fund sources:
Arizona
state board of pharmacy
  fund����������������������������� $ 3,743,900
Sec. 72. BOARD OF PHYSICAL THERAPY
��������������������������������������������������� 2026-27
FTE positions�������������������������������� 4.5
Lump sum appropriation�������������� $  624,400
Fund
sources:
Board of
physical therapy fund������ $  624,400
Sec. 73. ARIZONA
PIONEERS' HOME
��������������������������������������������������� 2026-27
FTE
positions������������������������������ 107.3
Lump
sum appropriation�������������� $ 9,160,800
Fund
sources:
Miners' hospital for miners with
  disabilities land
fund����������� $ 2,897,000
State charitable fund������������������ 6,263,800
Earnings on state lands and interest
on the investment of the permanent land funds are appropriated for the Arizona
pioneers' home and the state hospital for miners with disabilities in
compliance with the enabling act and the Constitution of Arizona.
Sec. 74. STATE BOARD OF PODIATRY EXAMINERS
��������������������������������������������������� 2026-27
FTE
positions�������������������������������� 1.0
Lump sum appropriation�������������� $  204,200
Fund sources:
Podiatry fund����������������������� $  204,200
Sec. 75. STATE BOARD FOR
PRIVATE POSTSECONDARY EDUCATION
��������������������������������������������������� 2026-27
FTE positions�������������������������������� 4.0
Lump sum appropriation�������������� $  557,500
Fund sources:
Board for private postsecondary
  education fund������������������� $  557,500
Sec. 76. STATE BOARD OF PSYCHOLOGIST EXAMINERS
��������������������������������������������������� 2026-27
FTE positions�������������������������������� 5.5
Lump sum appropriation�������������� $  872,600
Fund sources:
Behavioral analyst licensing
|| and regulation account����������� $  396,400
Board of psychologist examiners
|| fund������������������������������   476,200
Sec. 77. DEPARTMENT OF PUBLIC SAFETY
��������������������������������������������������� 2026-27
FTE positions���������������������������� 2,192.7
Operating lump sum appropriation���� $297,214,000
ACTIC���������������������������������� 2,132,700
AZPOST��������������������������������� 8,145,000
Border drug interdiction�������������� 18,103,200
Local border support������������������ 13,232,900
Civil air patrol maintenance and
  operations���������������������������� 250,000
GIITEM�������������������������������� 26,014,800
GIITEM subaccount���������������������� 2,396,400
Major incident division�������������� 16,197,700*
Motor vehicle fuel��������������������� 5,454,600
Onetime vehicle replacement����������� 15,540,300
Pharmaceutical diversion and
  drug theft task
force����������������� 668,400
Public safety equipment�������������   2,890,000
Scrap metal dealer enforcement
  and compliance������������������������ 250,000
Victims of crimes grants������������   9,300,000
Total appropriation � department of
public
safety������������������������������ $417,790,000
Fund sources:
State general fund������������������ $305,292,600
State
highway fund�������������������� 10,000,000
Arizona
highway patrol fund����������� 59,418,600
Criminal
justice enhancement fund������ 2,964,300
Department
of public safety
  forensics
fund��������������������� 22,512,400
Gang
and immigration intelligence
  team
enforcement mission border
  security
and law enforcement
  subaccount�������������������������� 2,396,400
Motorcycle
safety fund������������������� 198,900
Motor
vehicle liability insurance
  enforcement
fund���������������������� 968,300
Risk
management revolving fund��������� 1,155,200
Parity
compensation fund��������������� 4,549,000
Public
safety equipment fund����������� 2,894,000
Concealed
weapons permit fund���������� 3,393,900
Fingerprint
clearance card fund�������� 2,046,400
Of the $26,014,800 appropriated to the
GIITEM line item, $14,160,900 shall be used for one hundred department of
public safety GIITEM personnel. The additional staff shall include
at least fifty sworn department of public safety positions to be used for
immigration enforcement and border security and fifty department of public
safety positions to assist GIITEM in various efforts, including:
1. Strictly enforcing all
federal laws relating to illegal aliens and arresting illegal aliens.
2. Responding to or
assisting any county sheriff or attorney in investigating complaints of
employment of illegal aliens.
3. Enforcing Arizona's law
known as the Legal Arizona Workers Act, strictly enforcing Arizona's
SB 1070, Arizona's "Support Our Law Enforcement and Safe
Neighborhoods Act" and investigating crimes of identity theft in the
context of hiring illegal aliens and the unlawful entry into this country.
4. Taking strict
enforcement action.
Any change in the GIITEM mission or
allocation of monies shall be approved by the joint legislative budget
committee. The department shall submit an expenditure plan to the joint
legislative budget committee for review before expending any monies not identified
in the department's previous expenditure plans.
Of the $26,014,800 appropriated to the
GIITEM line item, only $1,203,400 is deposited in the GIITEM fund established
by section 41-1724, Arizona Revised Statutes, and is appropriated for the
purposes of that section.� The $1,203,400 is exempt from the provisions of
section 35-190, Arizona Revised Statutes, relating to lapsing of
appropriations. This state recognizes that states have inherent
authority to arrest a person for any immigration violation.
Any monies remaining in the department
of public safety joint account on June 30, 2027 revert to the funds from which
they were appropriated. The reverted monies shall be returned in
direct proportion to the amounts appropriated.
On or before September 1, 2026, the
department of public safety shall submit an expenditure plan for the local
border support line item to the joint legislative budget committee and the
governor's office of strategic planning and budgeting.
The $13,232,900 appropriated for the
local border support line item shall be used to fund local law enforcement
officer positions for border drug interdiction to deter and apprehend any
individuals who are charged with drug trafficking, human smuggling, illegal
immigration and other border-related crimes. The monies shall
also be used for grants to cities, towns and counties for costs associated with
prosecuting and detaining individuals who are charged with drug trafficking,
human smuggling, illegal immigration and other border-related crimes. The
department may fund all capital-related equipment.
The appropriation made for the onetime
vehicle replacement line item is exempt from the provisions of section 35-190,
Arizona Revised Statutes, relating to lapsing of appropriations, until June 30,
2029.
The appropriation made by Laws 2025,
chapter 233, section 77 in fiscal year 2025-2026 for the Yuma county family
advocacy center distribution line item is exempt from the provisions of section
35-190, Arizona Revised Statutes, relating to lapsing of appropriations. The
department must enter into a new agreement with the recipient of the monies
appropriated by the Yuma county family advocacy center line item to distribute
any remaining funding from the appropriation.
Of the amount appropriated in the
total appropriation for the department of public safety, $190,242,200 is
designated for personal services and $82,210,200 is designated for employee-related
expenditures. The department shall submit an expenditure plan to the joint
legislative budget committee for review before spending these monies for other
than personal services or employee-related expenditures.
Sec. 78. STATE REAL ESTATE DEPARTMENT
��������������������������������������������������� 2026-27
FTE
positions������������������������������� 37.0
Lump sum appropriation�������������� $ 3,259,400
Fund
sources:
State general fund������������������ $ 3,259,400
The state real estate department's lump sum appropriation
includes an ongoing increase of $140,100 beginning in fiscal year 2026-2027 for
maintenance and operations expenses relating to the department's IT
system. The legislature intends that this amount not be included in
the calculation of the department's total appropriated budget for the purposes
of section 32-2103, Arizona Revised Statutes, or otherwise result in the
increase of any fee or assessment levied by the department.
Sec. 79. RESIDENTIAL UTILITY CONSUMER OFFICE
��������������������������������������������������� 2026-27
FTE positions������������������������������� 14.5
Operating
lump sum appropriation���� $ 1,806,200
Professional
witnesses�������������    145,000*
Total appropriation � residential
utility
consumer
office��������������������� $ 1,951,200
Fund sources:
Residential utility consumer
|| office revolving fund������������ $ 1,951,200
Sec. 80. BOARD OF
RESPIRATORY CARE EXAMINERS
��������������������������������������������������� 2026-27
FTE
positions�������������������������������� 4.0
Lump sum
appropriation�������������� $  420,500
Fund sources:
Board of
respiratory care
|| examiners
fund������������������� $  420,500
Sec. 81. ARIZONA STATE RETIREMENT SYSTEM
��������������������������������������������������� 2026-27
FTE positions������������������������������ 222.9
Lump sum
appropriation�������������� $ 28,966,100
Fund
sources:
Arizona
state retirement system
|| administration
account������������� 27,166,100
Long-term disability trust fund
  administration
account�������������� 1,800,000
Sec. 82. DEPARTMENT OF
REVENUE
��������������������������������������������������� 2026-27
FTE
positions������������������������������ 892.8
Operating
lump sum appropriation���� $ 74,388,200
BRITS
operational support�������������� 8,005,200
E-commerce
compliance and outreach������� 981,200
Unclaimed
property administration
  and
audit��������������������������� 1,473,900
TPT
simplification��������������������� 1,085,400
Tax
fraud prevention����������������   3,170,800
Total appropriation � department of revenue�� $ 89,104,700
Fund sources:
State general fund������������������ $ 60,371,900
Department of revenue
  administrative
fund���������������� 27,077,000
Liability
setoff program
  revolving
fund������������������������ 939,100
Tobacco
tax and health care fund��������� 716,700
If the total value of properties
retained by unclaimed property contract auditors exceeds $1,473,900, the excess
amount is transferred from the state general fund to the department of revenue
administrative fund established by section 42-1116.01, Arizona Revised
Statutes, and is appropriated to the department for costs and fees for contract
auditors and for preparing and delivering notices and communications to holders
and property owners under the unclaimed property program.
If the department of revenue incurs
legal expenses to protect the unclaimed property program from legal challenges,
the amount of unclaimed property legal expenses is transferred from the state
general fund to the department of revenue administrative fund established by
section 42-1116.01, Arizona Revised Statutes, and is appropriated to the
department for unclaimed property legal expenses. The department may not
transfer more than $1,500,000 from the general fund in fiscal year 2026-2027
for unclaimed property legal expenses.
The department of revenue shall report
the department's general fund revenue enforcement goals for fiscal year 2026-2027 to the joint
legislative budget committee on or before September 30, 2026. On or before
September 30, 2027, the department shall provide an annual progress report to
the joint legislative budget committee as to the effectiveness of the
department's overall enforcement and collections program for fiscal year 2026-2027. The
reports must compare projected and actual state general fund, total state tax,
total county tax and total municipal tax revenue enforcement collections for
fiscal year 2025-2026 and fiscal year 2026-2027, including the amount of projected and actual enforcement
collections for all tax types. The reports must also include the
total number of transaction privilege tax delinquent accounts, the total dollar
value of those accounts classified by age of account and the total dollar
amount of delinquent account write-offs determined to be uncollectible for
fiscal year 2025-2026.
The department may not transfer any
monies to or from the tax fraud prevention line item without prior review by the joint legislative
budget committee.
The operating lump sum appropriation
includes $2,000,000 and 25 FTE positions for additional audit and collections
staff.
On or
before November 1, 2026, the department shall report the results of private
fraud prevention investigation services during fiscal year 2025-2026 to the joint
legislative budget committee. The report must include the total
number of fraudulent returns prevented and the total dollar amount of
fraudulent returns prevented during fiscal year 2025-2026.
Sec. 83. DEPARTMENT OF
STATE � SECRETARY OF STATE
��������������������������������������������������� 2026-27
FTE positions������������������������������ 144.1
Operating lump sum appropriation���� $ 15,339,400
Access
voter information database������ 2,000,000
Address
confidentiality program
  fund
deposit�������������������������� 400,000
Election
services���������������������� 4,000,000
Electronic
records repository������������� 70,300
Library
grants-in-aid������������������� 651,400*
Statewide
radio reading service
  for
the blind�������������������������� 97,000
Uniform state laws commission�������    99,000
Total appropriation � department of
state � secretary of state��������� $ 22,657,100
Fund sources:
State
general fund������������������ $ 18,857,100
Election systems improvement fund������ 2,000,000
Records services fund������������������ 1,800,000
Included in the operating lump sum
appropriation of $15,339,400 for fiscal year 2026-2027 is $5,000 for the purchase of mementos and items for
visiting officials.
Included in the operating lump sum
appropriation of $15,339,400 for fiscal year 2026-2027 is $1,800,000 from the records services fund established by section 41-151.12,
Arizona Revised Statutes. This appropriation may be used for the payment of
obligations incurred in fiscal year 2025-2026.
The operating lump sum appropriation
includes $100,000 for additional support for the talking book library.
The operating lump sum appropriation
includes $250,000 for additional support for the address confidentiality
program.
The operating lump sum appropriation
includes $100,000 for additional support for secretary of state legal expenses.
The secretary of state may spend these monies for legal services from the
attorney general, to hire one FTE position to serve as legal advisor to the
secretary of state or for legal expenses for conflict counsel. The secretary of
state may make expenditures or incur indebtedness to employ outside or private
attorneys if all of the following are true:
1. The
secretary of state is named as a defendant.
2. The
secretary of state believes a conflict exists that prevents the attorney
general from representing the secretary of state.
3. The secretary of state
either remains a nominal party or is defending the constitutionality of a law
or referendum enacted by the legislature.
Monies for the address confidentiality
program fund deposit line item may not be transferred to another line item.
Before transferring any monies in or
out of the election services line item, the secretary of state shall submit a
report for review by the joint legislative budget committee.
Before spending monies from the
election services line item, the secretary of state shall submit a report on
the expected amount and purpose of expenditures for the costs of the 2026
primary election and 2026 general election to the president of the senate, the
speaker of the house of representatives, the joint legislative budget committee
and the director of the governor's office of strategic planning and budgeting.
The secretary of state may use not
more than $250,000 from the election services line item for direct costs.
On or before January 31, 2027, the
secretary of state shall submit a report to the joint legislative budget
committee and the governor's office of strategic planning and budgeting
detailing the actual expenditures from the election services line item for the
2026 primary election and the 2026 general election. The report must
include the actual expenditures by purpose.
Of the amount appropriated to the
secretary of state for the electronic records repository line item in fiscal
year 2024-2025 by Laws 2024, chapter 209, section 90, $450,000 from the record
services fund is exempt from the provisions of section 35-190, Arizona Revised
Statutes, relating to lapsing of appropriations, until June 30, 2027.
Monies in the access voter information
database line item may be used only for the exclusive purpose of developing and
administering the statewide database of voter registration information required
by section 16-168, Arizona Revised Statutes. The secretary of state may not
transfer any monies in or out of the access voter information database line
item.
Sec. 84. STATE BOARD OF
TAX APPEALS
��������������������������������������������������� 2026-27
FTE
positions�������������������������������� 4.0
Lump sum
appropriation�������������� $  319,300
Fund sources:
State general fund������������������ $  319,300
Sec. 85. STATE BOARD OF TECHNICAL REGISTRATION
��������������������������������������������������� 2026-27
FTE positions������������������������������� 26.0
Lump sum appropriation�������������� $ 2,812,900
Fund sources:
Technical
registration fund��������� $ 2,812,900
Sec. 86. OFFICE OF TOURISM
��������������������������������������������������� 2026-27
FTE positions������������������������������� 31.0
Tourism fund deposit���������������� $ 7,283,700
Arizona
promotion������������������������ 819,000
Wine
promotion����������������������    100,000
Total appropriation � office of tourism������ $ 8,202,700
Fund sources:
State
general fund������������������ $ 8,202,700
Sec. 87. DEPARTMENT OF
TRANSPORTATION
��������������������������������������������������� 2026-27
FTE
positions���������������������������� 4,096.0
Operating
lump sum appropriation���� $272,540,000
Attorney
general legal services�������� 3,940,400
Highway
maintenance������������������ 198,687,500
ADOT
fleet vehicles and heavy
  equipment
maintenance�������������� 26,814,600
ADOT
fleet vehicles and heavy
  equipment
maintenance contingency��� 1,000,000
State
fleet operations���������������� 38,350,500
State
fleet vehicle replacement������� 13,611,300
Livestock
control and wildlife
  crossing���������������������������� 1,500,000
Construction
management system
  replacement������������������������� 6,844,600
ADOT
fleet vehicle and heavy
  equipment
replacement�������������� 22,400,000
Highway
damage recovery account�������� 7,999,000
Statewide
litter removal��������������� 3,106,800
Radio
lifecycle replacement������������ 1,656,100
Preventive
surface treatments��������� 36,142,000
Authorized
third parties������������   2,252,700
Total appropriation � department of
transportation���������������������� $636,845,500
Fund
sources:
Air
quality fund�������������������� $  894,000
Arizona
highway user revenue fund�������� 822,600
Highway
damage recovery account�������� 7,999,000
Ignition
interlock device fund����������� 380,600
Motor
vehicle liability
  insurance
enforcement fund���������� 2,202,200
State
fleet operations fund����������� 38,350,500
State
vehicle replacement fund�������� 13,611,300
State
aviation fund�������������������� 2,611,400
State
highway fund������������������� 540,466,400
Department
fleet operations fund������ 27,814,600
Vehicle
inspection and certificate
  of title enforcement
fund����������� 1,692,900
Motor vehicle division
On or before February 1, 2027, the
Arizona strategic enterprise technology office shall submit, on behalf of the
department of transportation, an annual progress report to the joint
legislative budget committee staff. The annual report must provide
updated plans for spending the department-dedicated portion of the authorized
third-party electronic service partner's fee retention on the motor vehicle
modernization project in fiscal year 2026-2027, including any amounts for
stabilization, maintenance, ongoing operations, support and enhancements for
the motor vehicle modernization solution, maintenance of legacy mainframe
processing and support capability, and other system projects outside the scope
of the motor vehicle modernization project.
On or before August 1, 2026, the
department of transportation shall report to the director of the joint
legislative budget committee the state's share of fees retained by the service
Arizona vendor in the prior fiscal year. The report must include the amount
spent by the service Arizona vendor on behalf of this state in the prior fiscal
year and a list of the projects funded with those monies.
The
department of transportation shall submit an annual report to the joint
legislative budget committee on progress in improving motor vehicle division
wait times and vehicle registration renewal by mail turnaround times in a
format similar to prior years. The report is due on or before July 31, 2027 for
fiscal year 2026-2027.
Other 
Of the total amount appropriated,
$198,687,500 in fiscal year 2026-2027 for highway maintenance is exempt
from the provisions of section 35-190, Arizona Revised Statutes, relating
to lapsing of appropriations, except that all unexpended and unencumbered
monies of the appropriation revert to the state highway fund established by
section 28-6991, Arizona Revised Statutes, on August 31, 2027.
The amount
appropriated to the preventive surface treatments line item is exempt from the
provisions of section 35-190, Arizona Revised Statutes, relating to
lapsing of appropriations, except that all unexpended and unencumbered monies
of the appropriation revert to the state highway fund established by section 28-6991,
Arizona Revised Statutes, on August 31, 2027.
Of the total amount appropriated, the
department of transportation shall pay $21,233,800 in fiscal year 2026-2027 from all funds to the
department of administration for its risk management payment.
All expenditures made by the
department of transportation for attorney general legal services shall be
funded only from the attorney general legal services line
item. Monies in the operating lump sum appropriation or other line
items intended for this purpose shall be transferred to the attorney general
legal services line item before expenditure.
In accordance with section 35-142.01,
Arizona Revised Statutes, reimbursements for monies expended from the highway
maintenance line item may not be credited to the account out of which the
expenditure was incurred. The department shall deposit all
reimbursements for monies expended from the highway maintenance line item in
the highway damage recovery account established by section 28-6994,
Arizona Revised Statutes.
The amount appropriated in the
operating lump sum includes a $2,000,000 reduction below the fiscal year 2023-2024
level from the state highway fund established by section 28-6991, Arizona
Revised Statutes, in fiscal year 2026-2027 from the department's
enforcement and compliance division.
Expenditures made by the department of
transportation for ADOT fleet vehicle and heavy equipment replacement shall be
funded only from the ADOT fleet vehicle and heavy equipment replacement line
item. Monies in the operating lump sum appropriation or other line
items intended for this purpose shall be transferred to the ADOT fleet vehicle
and heavy equipment replacement line item before expenditure.
The department of transportation may
use not more than $73,300 from the state highway fund established by section 28-6993,
Arizona Revised Statutes, in fiscal year 2026-2027 to pay prior year invoices.
Sec. 88. STATE TREASURER
��������������������������������������������������� 2026-27
FTE
positions������������������������������� 38.4
Operating
lump sum appropriation���� $ 4,721,600
Justice
of the peace salaries���������� 2,872,200
Law
enforcement/boating safety
  fund
grants����������������������   2,183,800
Total appropriation � state
treasurer�������� $ 9,777,600
Fund
sources:
State general fund������������������ $ 3,214,700
Law enforcement and boating
  safety fund������������������������� 2,183,800
State treasurer's operating fund������� 4,379,100
On or
before June 30, 2027, the state treasurer shall report to the joint legislative
budget committee staff on the state treasurer's current fiscal year and
estimated next fiscal year expenditures of interest earnings spent pursuant to
sections 35-315 and 35-318, Arizona Revised Statutes, for the state
treasurer's banking service contract, external investment management agreement,
administrative and information technology costs and any other costs.
The $50,000 appropriated to the state
treasurer in fiscal year 2025-2026 by Laws 2025, chapter 233, section 118
for distribution to Pinal county for signage relating to the prohibition of
illegal dumping may also be used to expand and support the Pinal county
community cleanup free dump day program, including any operational costs,
landfill access fees, staffing, public outreach and temporary waste disposal
events that are intended to reduce illegal dumping within the unincorporated
areas of Pinal county.
Sec. 89. GOVERNOR'S
OFFICE ON TRIBAL RELATIONS
��������������������������������������������������� 2026-27
FTE positions�������������������������������� 3.0
Lump sum appropriation�������������� $   66,900
Fund sources:
State
general fund������������������ $   66,900
Sec. 90. ARIZONA BOARD
OF REGENTS
��������������������������������������������������� 2026-27
FTE
positions������������������������������� 30.9
Operating
lump sum appropriation���� $ 3,291,100
Adaptive
athletics����������������������� 160,000
Arizona
promise program��������������� 20,000,000
Spouses
of military veterans
  tuition
scholarships��������������� 10,000,000
Arizona
teachers academy�������������� 15,000,000
Arizona teachers
incentive program�������� 90,000
Arizona
teacher student loan program����� 426,000
Arizona
transfer articulation
  support
system������������������������ 213,700
Leveraging
educational assistance
  partnership
program����������������  1,220,800
Washington,
D.C. internships������������� 300,000
Western
interstate commission
  office�������������������������������� 153,000
WICHE
student subsidies�������������   4,078,000
Total appropriation � Arizona board
of
regents����������������������������� $ 54,932,600
Fund sources:
State general fund������������������ $ 54,932,600
The Arizona board of regents shall
distribute monies appropriated for the adaptive athletics line item to each
university under the jurisdiction of the board to maintain and operate an
intercollegiate adaptive athletics program that provides opportunities for
competitive wheelchair and adaptive sports to students and community members
with disabilities. The monies may be spent only when the university
collects matching monies of gifts, grants and donations for the intercollegiate
adaptive athletics program from sources other than this state. Universities may
spend the monies only on scholarships, equipment, uniforms, travel expenses and
tournament fees for participants in the intercollegiate adaptive athletics
program. The monies may not be used for administrative costs,
personal services or employee-related expenditures.
On or before December 1, 2027, the
Arizona board of regents shall submit a report to the director of the joint
legislative budget committee and the director of the governor's office of
strategic planning and budgeting on the Arizona promise program that includes
all of the following for fiscal year 2026-2027:
1. The total number of
students receiving promise scholarships by each eligible postsecondary
institution.
2. The total number of
students enrolled at each eligible postsecondary institution that are eligible
to receive federal Pell grants.
3. A list of the programs
of study in which promise scholarship recipients are enrolled, including the
number of recipients enrolled in each program.
4. The average promise
scholarship award amount for each eligible postsecondary institution.
5. A geographic
representation of promise scholarship recipients based on the high school
attended.
6. The average grade point
average of promise scholarships recipients by each eligible postsecondary
institution.
On or before October 1, 2027, the
Arizona board of regents shall submit a report to the director of the joint
legislative budget committee and the director of the governor's office of
strategic planning and budgeting on spouses of military veterans tuition
scholarships that includes all of the following for fiscal year 2026-2027:
1. The amount distributed
to each eligible postsecondary institution.
2. The total number of
award recipients by each eligible postsecondary institution.
3. The average award amount
for each eligible postsecondary institution.
In
order to be eligible to receive state matching monies under the leveraging
educational assistance partnership program for grants to students, each
participating institution, public or private, shall provide an amount of
institutional matching monies that equals the amount of monies provided by this
state to the institution for the leveraging educational assistance partnership
program. Administrative expenses incurred by the Arizona board of
regents shall be paid from institutional matching monies and may not exceed
twelve percent of the monies appropriated in fiscal year 2026-2027.
The Arizona board of regents shall
distribute monies appropriated for Washington, D.C. internships for program
fees and housing costs in equal amounts to each of the three universities under
the jurisdiction of the board for the purpose of providing student internships,
short-term programs and regional programs in partnership with a third-party
organization. Short-term programs include one-week
seminars and learning opportunities shorter than one academic
semester. The third-party organization must meet the following
requirements:
1. Have partnerships with
Washington, D.C.-based organizations to provide full-time, semester-long
student internships and short-term programs.
2. Have the ability to
place as many students in internships and short-term programs as needed
by the universities.
3. Have experience placing
students in internships for at least ten consecutive years.
4. Have dedicated staff to
ensure that student interns have access to internships and short-term
programs in their areas of interest.
Within ten days after the acceptance
of the universities' semiannual all funds budget reports, the Arizona board of
regents shall submit a current year expenditure plan to the joint legislative
budget committee for review. The expenditure plan shall include the use of all
projected tuition and fee revenues by expenditure category, including operating
expenses, plant fund, debt service and financial aid. The plan shall
include the amount by which each expenditure category is projected to increase
over the prior year and shall provide as much detail as the university budget
requests. The plan shall include the total revenue and expenditure
amounts from all tuition and student fee revenues, including base tuition,
differential tuition, program fees, course fees, summer session fees and other
miscellaneous and mandatory student fee revenues.
Sec. 91. ARIZONA STATE UNIVERSITY
����������������������������������������� 2026-27
FTE positions���������������������������� 7,420.4
Operating
lump sum appropriation�� $1,146,967,700
Biomedical
informatics����������������� 3,828,100
Eastern Europe cultural
  collaborative������������������������� 250,000
Arizona financial aid trust������������ 5,985,800
Downtown
Phoenix campus ����������   135,878,500
Total appropriation � Arizona state
��������� university ����������������������� $1,292,910,100
Fund sources:
State
general fund���������������� $ 385,150,600
University
collections fund���������� 907,759,500
The state general fund appropriation
may not be used for alumni association funding.
The increased state general fund
appropriation from Laws 2014, chapter 18 may not be used for medical marijuana
research.
Other than scholarships awarded
through the Arizona financial aid trust, the appropriated monies may not be
used for scholarships or any student newspaper.
The appropriated monies may not be
used by the Arizona state university college of law legal clinic for any
lawsuits involving inmates of the state department of corrections in which this
state is the adverse party.
Arizona state university shall use
monies appropriated for the eastern Europe cultural collaborative to facilitate
cultural and academic exchanges between university faculty and students and
academic institutions in eastern Europe.
Any appropriated monies allocated by
the university for the school of civic and economic thought and leadership
shall be used to operate a single stand-alone academic entity within Arizona
state university. The appropriated monies may not supplant any
existing state funding or private or external donations to the existing centers
or to the school. The appropriated monies and all private and
external donations for the school, including any remaining balances from prior
fiscal years, shall be deposited in a separate account, shall be used only for
the direct operation of the school and may not be used for indirect costs of
the university. On or before October 1, 2026, the school shall
submit a report to the president of the senate, the speaker of the house of
representatives, the chairpersons of the senate education committee and the
house of representatives education committee and the director of the joint
legislative budget committee that includes at least the following information
for the school:
1. The total amount of funding received from all
sources.
2. A description of faculty positions and courses
offered.
3. The total undergraduate and graduate student
enrollment.
4. Significant community events, initiatives or
publications.
The
chairpersons of the senate education committee and the house of representatives
education committee may request the director of the school to appear before the
committees to report on the school's annual achievements.
The legislature intends that
appropriated monies allocated by the university for the school of civic and
economic thought and leadership in fiscal year 2026-2027 be consistent
with the amount appropriated in fiscal year 2025-2026, except that the
university may allocate to the school the lump sum reduction of no more than
2.5 percent as prescribed by this act.
Any unencumbered balances remaining in
the university collections fund on June 30, 2026 and all collections received
by the university during the fiscal year are appropriated for operating
expenses, capital outlay and fixed charges. Earnings on state lands
and interest on the investment of the permanent land funds are appropriated in
compliance with the enabling act and the Constitution of Arizona. No
part of this appropriation may be spent for supplemental life insurance or
supplemental retirement.
Sec. 92. NORTHERN
ARIZONA UNIVERSITY
��������������������������������������������������� 2026-27
FTE
positions���������������������������� 2,308.4
Operating
lump sum appropriation���� $230,429,700
Arizona
financial aid trust������������ 1,326,000
Biomedical
research funding���������   3,000,000
NAU �
Yuma���������������������������� 3,083,100
Teacher
training��������������������   2,292,700
Total appropriation � Northern
Arizona
university�������������������������� $240,131,500
Fund
sources:
State
general fund������������������ $114,681,000
University
collections fund���������� 125,450,500
The state general fund appropriation
may not be used for alumni association funding.
The increased state general fund
appropriation from Laws 2014, chapter 18 may not be used for medical marijuana
research.
Other than scholarships awarded
through the Arizona financial aid trust, the appropriated monies may not be
used for scholarships or any student newspaper.
The appropriated amount for the
teacher training line item shall be distributed to the Arizona K-12
center for program implementation and mentor training for the Arizona mentor
teacher program prescribed by the state board of education.
Any unencumbered balances remaining in
the university collections fund on June 30, 2026 and all collections received
by the university during the fiscal year are appropriated for operating
expenses, capital outlay and fixed charges. Earnings on state lands and
interest on the investment of the permanent land funds are appropriated in
compliance with the enabling act and the Constitution of Arizona. No part of
this appropriation may be spent for supplemental life insurance or supplemental
retirement.
The biomedical research funding shall
be distributed to a nonprofit medical research foundation in this state that
collaborates with universities, hospitals and biotechnology and health research
centers. A nonprofit foundation that receives monies shall submit an
expenditure and performance report to northern Arizona
university. The university shall transmit the report to the joint
legislative budget committee and the director of the governor's office of
strategic planning and budgeting on or before February 1, 2027. The
report must include at least the following:
1. The type and amount of
expenditures from all state sources of monies, including the amount leveraged
for local, state, federal and private grants.
2. A description of each
grant received as well as the percentage and locations of positions funded
solely or partly by state monies and the nonprofit foundation's projects with
which those positions are associated.
3. Performance measures,
including:
(a) Outcomes that are
specifically related to the use of state monies.
(b) Progress that has been
made toward achieving each outcome, including activities, resources and other
evidence of the progress.
(c) Reportable inventions
or discoveries related to each outcome.
(d) Publications,
presentations and narratives related to each outcome and how the expenditures
from all state sources of monies that the nonprofit foundation received have
benefited this state.
Any appropriated monies allocated by
the university for the economic policy institute may not supplant any existing
state funding or private or external donations to the institute or to the
university. The appropriated monies and all private and external
donations for the institute, including any remaining balances from prior fiscal
years, shall be deposited in a separate account, shall be used only for the
direct operation of the institute and may not be used for indirect costs of the
university. On or before October 1, 2026, the institute shall submit
to the president of the senate, the speaker of the house of representatives,
the chairpersons of the senate education committee and the house of
representatives education committee and the director of the joint legislative
budget committee a report that includes at least the following information for
the institute:
1. The total amount of
funding received from all sources.
2. A description of the
faculty positions and courses offered.
3. The total undergraduate
and graduate student participation.
4. Significant community
events, initiatives or publications.
The chairpersons of the senate
education committee and the house of representatives education committee may
request the director of the institute to appear before the committees to report
on the institute's annual achievements.
The legislature intends that
appropriated monies allocated by the university for the economic policy
institute in fiscal year 2026-2027 be consistent with the amount appropriated
in fiscal year 2025-2026, except that the university may allocate to the school
the lump sum reduction of not more than 2.5 percent as prescribed by this act.
Sec. 93. UNIVERSITY OF ARIZONA
��������������������������������������������������� 2026-27
Main campus
FTE
positions���������������������������� 6,573.0
Operating
lump sum appropriation���� $611,515,400
Agriculture��������������������������� 38,925,400
Arizona
cooperative extension��������� 15,345,700
Arizona
financial aid trust������������ 2,729,400
Arizona
geological survey�������������� 1,217,800
College
of veterinary medicine�������� 21,237,200
Kazakhstan
studies program��������������� 250,000
Mining,
mineral and natural
  resources
educational museum���������� 439,300
School
of mining����������������������� 4,187,000
Sierra
Vista campus�������������������� 2,864,600
Water
adjudication���������������������� 500,000*
Veterinary
diagnostic laboratory����   2,606,200
Total � main campus�������������������� $701,818,000
Fund sources:
State general
fund������������������ $257,827,400
University
collections fund���������� 443,990,600
Health sciences center
FTE
positions������������������������������ 857.1
Operating
lump sum appropriation����� $68,535,700
AZ REACH��������������������������������� 500,000
Clinical
rural rotation������������������ 353,600
Clinical
teaching support�������������� 8,587,000
Liver
research institute����������������� 440,400
Phoenix
medical campus���������������� 40,525,700
Telemedicine
network����������������   1,670,000
Total � health sciences center��������� $120,612,400
Fund sources:
State
general fund������������������ $ 75,928,400
University
collections fund���������  44,684,000
Total appropriation - university of�����������������������
Arizona����������������������������� $822,430,400
Fund sources:
State
general fund������������������ $333,755,800
University
collections fund���������� 488,674,600
The state general fund appropriation
may not be used for alumni association funding.
The increased state general fund
appropriation from Laws 2014, chapter 18 may not be used for medical marijuana
research.
Other than scholarships awarded
through the Arizona financial aid trust, the appropriated monies may not be
used for scholarships or any student newspaper.
The university of Arizona shall use not
more than $1,200,000 of the state general fund monies appropriated to the
operating lump sum appropriation to operate the Arizona perinatal and pediatric
psychiatry access hotline.
The university of Arizona may not use
monies appropriated for the Arizona geological survey line item for any other
purpose and may not transfer the monies appropriated for the Arizona geological
survey to the operating budget or any other line item.
The legislature intends that
$8,000,000 of the amount appropriated to the health sciences center operating
lump sum appropriation line item be used to expand the college of medicine
Phoenix campus and to develop and administer a primary care physician scholarship
program at the college of medicine Phoenix campus and the college of medicine
Tucson campus. The legislature intends that the $8,000,000 not be
annualized in future years.
Any appropriated monies allocated by
the university for the center for the philosophy of freedom may not supplant
any existing state funding or private or external donations to the center or
the philosophy department of the university of Arizona. The
appropriated monies and all private and external donations for the center,
including any remaining balances from prior fiscal years, shall be deposited in
a separate account, shall be used only for the direct operation of the center
and may not be used for indirect costs of the university. On or
before October 1, 2026, the center shall submit a report to the president of
the senate, the speaker of the house of representatives, the chairpersons of
the senate education committee and the house of representatives education
committee and the director of the joint legislative budget committee that
includes at least the following information for the center:
1. The total amount of funding received from all
sources.
2. A description of faculty positions and courses
offered.
3. The total undergraduate and graduate student
participation.
4. Significant community events, initiatives or
publications.
The chairpersons of the senate
education committee and the house of representatives education committee may
request the director of the center to appear before the committees to report on
the center's annual achievements.
The legislature intends that
appropriated monies allocated by the university for the center for the
philosophy of freedom in fiscal year 2026-2027 be consistent with the amount
appropriated in fiscal year 2025-2026, except that the university may
allocate to the school the lump sum reduction of not more than 2.5 percent as
prescribed by this act.
The amount appropriated to the college
of veterinary medicine line item shall be distributed to the college of
veterinary medicine to increase the number of students that are residents of
this state. Before spending these monies, the university of Arizona shall
report to the joint legislative budget committee all of the following
information for the college of veterinary medicine:
1. The current number of
students who are residents of this state.
2. The current number of
students who are not residents of this state.
The university of Arizona shall use
monies appropriated for the Kazakhstan studies program to facilitate academic
exchanges between university students and academic institutions in Kazakhstan.
The amount appropriated for the water
adjudication line item shall be used to assist claimants in the general stream
adjudication of water rights pursuant to section 15-1647, Arizona Revised
Statutes.
The amount appropriated for the AZ
REACH line item shall be used to provide medical care transfer services for
hospitals with less than twenty beds.
One hundred percent of the land
earnings and interest from the school of mines land fund shall be distributed
to the university of Arizona school of mining and mineral resources in
compliance with the enabling act and the Constitution of Arizona.
Any unencumbered balances remaining in
the university collections fund on June 30, 2026 and all collections received
by the university during the fiscal year are appropriated for operating
expenses, capital outlay and fixed charges. Earnings on state lands and
interest on the investment of the permanent land funds are appropriated in
compliance with the enabling act and the Constitution of Arizona. No part of
this appropriation may be spent for supplemental life insurance or supplemental
retirement.
Sec. 94. DEPARTMENT OF VETERANS' SERVICES
��������������������������������������������������� 2026-27
FTE positions������������������������������ 792.3
Operating
lump sum appropriation���� $ 3,098,800
Arizona
state veterans' homes��������� 60,986,900
Arizona
state veterans' cemeteries������� 989,800
Rural
tribal nations veteran
  benefit
counseling������������������ 2,262,400
Veterans' benefit counseling����������� 3,787,600
Veterans' support services������������� 1,226,100
Veterans' trauma treatment
  services�������������������������    450,000
Total appropriation � department of
veterans'
services������������������ $ 72,801,600
Fund sources:
State general fund������������������ $ 11,814,700
State
home for veterans' trust
  fund������������������������������� 60,986,900
Monies appropriated for the rural
tribal nations veteran benefit counseling line item shall be used for veterans'
services officers to provide services in rural tribal nations in this state
that have communities that are located one hundred miles or more from the
nearest United States department of veterans' affairs service center.
The amount appropriated for veterans'
support services line item shall be distributed to a nonprofit veterans'
services organization that provides support services among this state's
military and veteran population. The department may spend up to
$76,500 of this appropriation to hire a program specialist to liaise between
the department and the selected nonprofit organization. Before the
expenditure of the monies, the department shall submit an expenditure report to
the joint legislative budget committee that includes the status of non-state
matching grant monies.
Monies appropriated for the veterans'
trauma treatment services line item shall be used to provide grants to contractors
as defined in section 36-2901, Arizona Revised Statutes, that provide
trauma treatment services training to any of the following health professionals
licensed pursuant to title 32, Arizona Revised Statutes:
1. Physicians.
2. Registered nurse
practitioners.
3. Physician assistants.
4. Psychologists.
5. Behavioral health
professionals who are either licensed for individual practice or supervised by
a psychologist, registered nurse practitioner or behavioral health professional
licensed pursuant to title 32, Arizona Revised Statutes, for independent
practice.
The department may spend the
$1,000,000 appropriated in fiscal year 2022-2023 by Laws 2022, chapter
313, section 119 for the Arizona state veterans' homes line item for tribal
members in veterans' homes.
Sec. 95. ARIZONA STATE VETERINARY MEDICAL EXAMINING BOARD
��������������������������������������������������� 2026-27
FTE positions�������������������������������� 8.0
Lump sum appropriation������������� $   939,500
Fund sources:
Veterinary medical examining
  board
fund���������������������� $   939,500
Sec. 96. WATER INFRASTRUCTURE FINANCE AUTHORITY OF ARIZONA
��������������������������������������������������� 2026-27
Small drinking water systems
  fund deposit�������������������������� 500,000
Fund sources:
Water
supply development
  revolving
fund������������������ $   500,000
Sec. 97. DEPARTMENT OF
WATER RESOURCES
��������������������������������������������������� 2026-27
FTE
positions������������������������������ 210.0
Operating
lump sum appropriation��� $ 16,243,300
Adjudication
support������������������� 1,957,900
Arizona
water protection fund
  deposit������������������������������� 750,000
Assured
and adequate water supply
  administration���������������������� 2,591,200
Rural
water studies� ������������������ 1,317,700
Conservation
and drought program��������  443,300
Automated
groundwater monitoring��������� 427,000
Colorado
River legal expenses������    500,000*
Colorado
River litigation fund
  deposit����������������������������� 6,000,000
Water
supply and demand assessment��   3,614,400
Total appropriation � department of
water����������������
resources�������������������������� $ 33,844,800
Fund sources:
State
general fund������������������ $ 25,077,500
Water
resources fund������������������� 1,724,900
Assured
and adequate water
  supply
administration fund������������ 301,300
Water
supply development revolving fund�� 741,100
Arizona
system conservation fund������� 6,000,000
Monies in the
assured and adequate water supply administration line item may be used only for
the exclusive purposes prescribed in sections 45-108, 45-576, 45-577,
45-578 and 45-579, Arizona Revised Statutes. The department of water resources may not transfer any
monies into or out of the assured and adequate water supply administration line
item.
The legislature intends that monies in
the rural water studies line item be spent only to assess local water use needs
and to develop plans for sustainable future water supplies in rural areas
outside this state's active management areas and not be made available for
other department operating expenses.
Monies
in the adjudication support line item may be used only for the exclusive
purposes prescribed in section 45-256, Arizona Revised Statutes, and
section 45-257, subsection B, paragraph 4, Arizona Revised
Statutes. The department of water resources may not transfer any
monies into or out of the adjudication support line item.
The department of water resources may
not transfer any monies from the Colorado River legal expenses line item
without prior review by the joint legislative budget committee.
Fiscal Year 2019-2020
Appropriation Adjustment
Sec. 98. Appropriation reduction; superintendent of public instruction;
fiscal year 2019-2020
On July 31, 2026, in addition to any
other appropriation made in fiscal year 2019-2020, the sum of $(344,300)
is reduced from the appropriation made from the state general fund in fiscal
year 2019-2020 to the superintendent of public instruction for the high-quality
teacher professional development pilot program.
Fiscal Year 2020-2021
Appropriation Adjustments
Sec. 99. Appropriation reduction; superintendent of public instruction;
fiscal year 2020-2021
On July 31, 2026, in addition to any
other appropriation made in fiscal year 2020-2021, the sum of $(400,000)
is reduced from the appropriation made from the state general fund in fiscal
year 2020-2021 to the superintendent of public instruction for the high-quality
teacher professional development pilot program.
Fiscal Year
2021-2022 Appropriation Adjustments
Sec. 100. Appropriation reductions; fiscal year 2021-2022
On July 31, 2026, notwithstanding any
other law, the following amounts are reduced from the monies appropriated from
the state general fund in fiscal year 2021-2022 to the following state agencies
for operating lump sum and line item appropriations:
1. Superintendent of public
instruction
   High-quality
teacher professional
    development
pilot program��������������� $ (400,000)
2. Department of
administration
   Retirement
of defeasance of financing
    agreements������������������������������ $(5,037,800)
Fiscal Year 2023-2024
Appropriation Adjustment
Sec. 101. Appropriation reduction; superintendent of public instruction;
fiscal year 2023-2024
On July
31, 2026, in addition to any other appropriation made in fiscal year 2023-2024,
the sum of $(100,000) is reduced from the appropriation made from the state
general fund in fiscal year 2023-2024 to the superintendent of public
instruction for live, remote instructional courses.
Fiscal Year 2024-2025
Appropriation Adjustment
Sec. 102. Appropriation reduction; superintendent of public instruction;
fiscal year 2024-2025
On July 31, 2026, in addition to any
other appropriation made in fiscal year 2024-2025, the sum of $(100,000)
is reduced from the appropriation made from the state general fund in fiscal
year 2024-2025 to the superintendent of public instruction for live, remote
instructional courses.
Fiscal Year 2025-2026
Appropriation Adjustments
Sec. 103. Supplemental appropriation; board of behavioral health examiners;
fiscal year 2025-2026
In addition to any other appropriation made in fiscal year
2025-2026, the sum of $150,000 is appropriated from the board of behavioral
health examiners fund established by section 32-3254, Arizona Revised
Statutes, in fiscal year 2025-2026 to the board of behavioral health
examiners for operating costs.
Sec. 104. Supplemental appropriation; department of administration; intent;
fiscal year 2025-2026
A. In addition to any other
appropriation made in fiscal year 2025-2026, the sum of $2,018,700 is
appropriated from the risk management revolving fund established by section 41-622,
Arizona Revised Statutes, in fiscal year 2025-2026 to the department of
administration for the following purposes:
1. To pay disallowed costs
relating to excess retained earnings.
2. To pay disallowed costs
relating to the statewide information technology charges.
3. For fund transfers in
fiscal year 2024-2025.
4. To pay interest owed
from prior year disallowed costs.
B. The legislature intends
that the department of administration not enter into any agreements to pay for
any federal reimbursements related to excess balances in the special employee
health insurance trust fund established by section 38-654, Arizona
Revised Statutes, unless the proposed agreements have been reviewed by the
joint legislative budget committee.
Sec. 105. Supplemental
appropriation; Arizona health care cost containment system administration;
fiscal year 2025-2026
In
addition to any other appropriation made in fiscal year 2025-2026, the
sum of $104,728,400 is appropriated from the state general fund and
$471,741,800 from expenditure authority in fiscal year 2025-2026 to the
Arizona health care cost containment system administration for adjustments in
formula requirements.
Sec. 106. Supplemental appropriation; department of corrections; fiscal
year 2025-2026
In addition to any other appropriation
made in fiscal year 2025-2026, the sum of $4,100,000 is appropriated from
the state general fund in fiscal year 2025-2026 to the state department
of corrections for operating expenses.
Sec. 107. Supplemental appropriation; department of veterans' services;
fiscal year 2025-2026
In addition to any other appropriation
made in fiscal year 2025-2026, the sum of $3,000,000 is appropriated from
the state general fund in fiscal year 2025-2026 to the department of
veterans' services for deposit in the state homes for veterans trust fund
established by section 41-608.01, Arizona Revised Statutes, for an
operating costs shortfall.
Sec. 108. Supplemental
appropriation; department of economic security; fiscal year 2025-2026
In addition to any other
appropriations made in fiscal year 2025-2026, the sum of $82,818,700 is
appropriated from the state general fund and $216,304,700 is appropriated from
the developmental disabilities medicaid expenditure authority in fiscal year
2025-2026 to the department of economic security for adjustments in
formula requirements.
Sec. 109. Supplemental appropriation; department of economic security;
fiscal year 2025-2026; exemption
A. In addition to any other
appropriation made in fiscal year 2025-2026, the sum of $1,761,800 is
appropriated from the state general fund in fiscal year 2025-2026 to the
department of economic security for summer food benefits administration.
B. The appropriation made
in subsection A of this section is exempt from the provisions of section
35-190, Arizona Revised Statutes, relating to lapsing of appropriations, until
October 31, 2026.
Sec. 110. Supplemental appropriation; department of public safety; fiscal
year 2025-2026; exemption
A. In addition to any other
appropriation made in fiscal year 2025-2026, the sum of $4,750,000 is
appropriated from the Arizona highway patrol fund established by section 41-1752,
Arizona Revised Statutes, to the department of public safety for operating
expenses.
B. The appropriation made
in subsection A of this section is exempt from the provisions of section
35-190, Arizona Revised Statutes, relating to lapsing of appropriations.
Sec. 111. Appropriations; reduction; fiscal years 2025-2026 and 2026-2027
A. In addition to any other
appropriation made in fiscal year 2025-2026, the sum of $(250,000) is
reduced from the appropriation made from the state general fund in fiscal year
2025-2026 to the Maricopa county community college district for wrestling
scholarships.
B. In addition to any other
appropriations made in fiscal year 2026-2027, the sum of $250,000 is
appropriated from the state general fund in fiscal year 2026-2027 to the
superintendent of public instruction for the purposes of issuing a grant to a
single Arizona school that offers instruction to grades six through twelve and
incorporates wrestling into its mission.
Sec. 112. Supplemental appropriation; secretary of state; fiscal year
2025-2026; report; exemption
A. In addition to any other
appropriation made in fiscal year 2025-2026, the sum of $4,000,000 is
appropriated from the state general fund in fiscal year 2025-2026 to the
secretary of state for costs of the 2026 primary election and 2026 general
election.
B. Before spending the
appropriation made in subsection A of this section, the secretary of state
shall submit a report on the expected amount and purpose of expenditures for
the costs of the 2026 primary election and 2026 general election to the
president of the senate, the speaker of the house of representatives, the joint
legislative budget committee and the director of the governor's office of
strategic planning and budgeting.
C. On or before January 31,
2027, the secretary of state shall submit a report to the joint legislative
budget committee and the governor's office of strategic planning and budgeting
detailing the actual expenditures form the appropriation made in subsection A
of this section for the 2026 primary election and the 2026 general
election. The report must include the actual expenditures by
purpose.
D. The appropriation made
in subsection A of this section is exempt from the provisions of section 35-190,
Arizona Revised Statutes, relating to lapsing of appropriations, except that
all monies remaining unexpended and unencumbered on June 30, 2027 revert to the
state general fund.
Sec. 113. Appropriation reduction; superintendent of public instruction;
fiscal year 2025-2026
In addition to any other appropriation
made in fiscal year 2025-2026, the sum of $(31,859,000) is reduced from
appropriations made from the state general fund in fiscal year 2025-2026 to the
superintendent of public instruction for basic state aid formula costs.
Fiscal Year 2026-2027 Appropriation Distributions
Sec. 114. Department of economic security; loans; reimbursement;
prohibition; fiscal year 2026-2027
On or after April 1, 2027, the
department of economic security may use up to $25,000,000 from the budget
stabilization fund established by section 35-144, Arizona Revised Statutes, for
the purpose of providing funding for reimbursement grants. Before using the
monies from the budget stabilization fund, the department shall notify the
director of the joint legislative budget committee and the director of the
governor's office of strategic planning and budgeting. This
appropriation must be fully reimbursed on or before September 1, 2027 and must
be reimbursed in full as part of the closing process for fiscal year 2026-2027. The
department shall notify the joint legislative budget committee of the
reimbursement on or before September 1, 2027. The appropriation may
not be used for additional programmatic expenditures.
Sec. 115. Appropriation reduction; state treasurer; fiscal year 2026-2027
The monies appropriated by Laws 2022,
chapter 313, section 130 shall revert to the state general fund on July 31,
2026.
Sec. 116. Lump sum reductions; fiscal year 2026-2027
A. In addition to any other
appropriations made in fiscal year 2026-2027, the operating lump sum
appropriations from the state general fund in fiscal year 2026-2027 in the
following amounts from the following budget units are reduced:
1. Department of administration��������������� $ (235,200)
2. Department of administration division of
   school facilities������������������������ $  (40,600)
3. Office of administrative hearings���������� $  (24,600)
4. Arizona department of agriculture���������� $ (390,500)
5. Attorney general � department of law������� $ (610,000)
6. State board of charter schools������������� $  (70,300)
7. Arizona commerce authority����������������� $ (250,000)
8. Office of economic opportunity������������� $  (13,300)
9. State board of education������������������� $  (80,600)
10. Superintendent of public instruction������ $ (343,500)
11. Department of emergency and
    military affairs������������������������ $ (150,200)
12. State board of equalization��������������� $  (18,400)
13. Board of executive clemency��������������� $  (37,100)
14. Governor's office������������������������� $ (203,600)
15. Governor's office of strategic planning
    and budgeting��������������������������� $  (71,400)
16. Arizona historical society���������������� $  (59,900)
17. Prescott historical society��������������� $  (26,900)
18. Arizona judiciary � supreme court��������� $ (364,000)
19. Arizona judiciary � court of appeals������ $ (638,800)
20. Arizona judiciary � superior court�������� $ (123,000)
21. State land department��������������������� $ (265,600)
22. Joint legislative budget committee�������� $  (76,800)
23. Legislative council����������������������� $ (235,600)
24. Legislative ombudsman � citizens aide����� $  (40,200)
25. Senate������������������������������������ $ (451,600)
26. House of representatives������������������ $ (544,900)
27. State mine inspector���������������������� $  (39,700)
28. Arizona navigable stream
    adjudication
commission����������������� $  (3,600)
29. State real estate department�������������� $  (78,000)
30. Department of revenue��������������������� $(1,255,500)
31. Department of state ─ secretary
�of state�������������������������������� $ (338,500)
32. State board of tax appeals���������������� $  (8,000)
33. Office of tourism������������������������� $ (182,100)
34. State treasurer��������������������������� $  (8,600)
35. Governor's office on tribal relations����� $  (1,700)
36. Arizona board of regents������������������ $  (82,300)
37. Arizona state university������������������ $(8,096,000)
38. Northern Arizona university��������������� $(2,624,500)
39. University of Arizona � main campus������� $(4,725,900)
40. University of Arizona � health
    sciences center������������������������� $(1,027,700)
C. The universities under
the jurisdiction of the Arizona board of regents may not reduce the monies
allocated from the operating lump sum appropriations to the Arizona state
university school of civic and economic thought and leadership, the northern
Arizona university economic policy institute and the university of Arizona
center for the philosophy of freedom by more than 2.5 percent of the total
amount allocated to the school, institute or center.
Sec. 117. Phoenix convention center; allocation; fiscal year 2026-2027
Pursuant
to section 9-602, Arizona Revised Statutes, $26,997,100 of state general fund
revenue is allocated in fiscal year 2026-2027 to the Arizona convention center
development fund established by section 9-601, Arizona Revised Statutes.
Sec. 118. Balance transfer; school
safety program; school safety interoperability fund; fiscal year 2026-2027
A. Of the amount
appropriated by Laws 2025, chapter 233, section 31 for the school safety
program, the department of education shall transfer $2,000,000 to the school safety
interoperability fund established by section 41-1733, Arizona Revised
Statutes, in fiscal year 2026-2027.
B. In fiscal year 2026-2027,
the department of administration shall distribute the $2,000,000 transferred to
the school safety interoperability fund pursuant to subsection A of this
section to the sheriffs of the following counties in the following amounts to
install and support the school safety projects authorized pursuant to section
41-1733, Arizona Revised Statutes:
1. $170,800 to Apache
county.
2. $173,900 to Gila county.
3. $173,900 to Graham
county.
4. $105,600 to Greenlee
county.
5. $124,200 to La Paz
county.
6. $326,100 to Mohave
county.
7. $335,400 to Navajo
county.
8. $217,400 to Santa Cruz
county.
9. $372,700 to Yavapai
county.
Sec. 119. Appropriations; state treasurer; public safety expenditures;
fiscal year 2026-2027
A. The following amounts
are appropriated from the peace officer training equipment fund established by
section 41-1731, Arizona Revised Statutes, in fiscal year 2026-2027 to the
state treasurer to distribute to the following recipients for public safety
training simulators:
1. $354,000 to the state
department of corrections.
2. $354,000 to the
Flagstaff police department.
3. $684,000 to the Yavapai
county sheriff's office.
4. $354,000 to the Glendale
police department.
B. The
following amounts are appropriated from the peace officer training equipment
fund established by section 41-1731, Arizona Revised Statutes, in fiscal year
2026-2027 to the state treasurer to distribute to the following recipients for
records management software:
1. $349,500 to the
department of public safety.
2. $171,800 to the Pima
county sheriff's office.
3. $64,900 to the
university of Arizona police department.
4. $99,800 to the Graham
county sheriff's office.
5. $67,000 to the Oro
Valley police department.
6. $65,000 to the Marana
police department.
7. $500,000 to the Pinal
county sheriff's office.
8. $220,000 to the Maricopa
county sheriff's office.
9. $64,900 to the Arizona
state university police department.
10. $55,000 to the Paradise
Valley police department.
11. $100,000 to the Phoenix
police department.
12. $125,900 to the
Scottsdale police department.
13. $189,700 to the Tempe
police department.
14. $65,900 to the Buckeye
police department.
15. $215,800 to the Mesa
police department.
16. $111,700 to the
Chandler police department.
17. $83,900 to the Peoria
police department.
18. $69,200 to the Goodyear
police department.
19. $72,500 to the Avondale
police department.
20. $55,000 to the El
Mirage police department.
21. $102,000 to the Gilbert
police department.
22. $47,800 to the Coconino
county sheriff's office.
23. $52,800 to the northern
Arizona university police department.
24. $82,500 to the
Flagstaff police department.
25. $81,000 Yavapai county
sheriff's office.
26. $50,000 to the Prescott
police department.
27. $50,000 to the Prescott
Valley police department.
28. $200,000 to the Cochise
county sheriff's office.
29. $55,900 to the Navajo
county sheriff's office.
30. $38,600 to the Winslow
police department.
31. $25,000 to the
Snowflake-Taylor police department.
32. $21,700 to the Pinetop-Lakeside
police department.
33. $20,000 to the Holbrook
police department.
34. $21,700 to the Show Low
police department.
35. $200,000 to the Mohave
county sheriff's office.
36. $65,000 to the Gila
county sheriff's office.
37. $38,000 to the Payson
police department.
38. $20,000 to the Miami
police department.
39. $25,000 to the Globe
police department.
40. $89,900 to the La Paz
county sheriff's office.
41. $44,900 to the Greenlee
county sheriff's office.
C. The
sum of $150,000 is appropriated from the peace officer training equipment fund
established by section 41-1731, Arizona Revised Statutes, in fiscal year
2026-2027 to the state treasurer to distribute to the town of Paradise Valley
for law enforcement equipment purchases.
D. The sum of $1,000,000 is
appropriated from the peace officer training equipment fund established by
section 41-1731, Arizona Revised Statutes, in fiscal year 2026-2027
to the state treasurer to distribute to the Arizona criminal justice commission
for the purpose of providing grants to acquire or implement technology that
enhances recruitment and retention activities. State agencies with
law enforcement functions, local law enforcement agencies and tribal police
agencies are eligible for grants. Grant monies awarded pursuant to
this subsection shall be used for recruitment technology-based tools that
improve hiring and retention outcomes, including platforms that support
recruiter development, streamline applicant engagement, provide real-time
performance data or enhance the consistency and effectiveness of training
practices. The appropriation made in this subsection is exempt from
the provisions of section 35-190, Arizona Revised Statutes, relating to
lapsing of appropriations.
E. The sum of $300,000 is
appropriated from the peace officer training equipment fund established by
section 41-1731, Arizona Revised Statutes, in fiscal year 2026-2027
to the state treasurer to distribute to the superintendent for public
instruction for school hardening grants.
Sec. 120. Rio Nuevo multipurpose facility district; estimated distribution;
fiscal year 2026-2027
Pursuant
to section 42-5031, Arizona Revised Statutes, a portion of the state
transaction privilege tax revenues will be distributed to a multipurpose
facility district. The Rio Nuevo multipurpose facility district is
estimated to receive $19,000,000 in fiscal year 2026-2027. The actual
amount of the distribution will be made pursuant to section 42-5031,
Arizona Revised Statutes.
Fund Balance Transfers
Sec. 121. Fund balance transfers; fiscal year 2025-2026
Notwithstanding any other law, on or
before June 30, 2026, the following amounts from the following fund sources are
transferred to the state general fund for the purposes of providing adequate
support and maintenance for agencies of this state:
1. Department of
administration
   Construction
insurance fund���������� $5,500,000
   Co-op
state purchasing fund���������� $3,000,000
   Risk
management revolving fund������� $6,100,000
2. Arizona commerce
authority
   Arizona
competes fund��������������� $10,000,000
3. Corporation commission
   Securities
regulatory and
     enforcement
fund����������������� $14,700,000
   Utility
regulation revolving fund���� $3,400,000
4. Department of
environmental quality
   Recycling
fund����������������������� $1,500,000
   Underground
storage tank
     revolving
fund�������������������� $2,400,000
5. Arizona game and fish
department
   Heritage
land acquisition fund������� $5,000,000
   Watercraft
licensing fund������������ $3,400,000
6. Industrial commission of
Arizona
   Administrative
fund������������������ $6,700,000
7. Department of insurance
and financial
   institutions
   Automobile
theft authority fund������ $3,800,000
   Financial
services fund�������������� $3,300,000
8. State
land department
   Trust
land management fund����������� $9,000,000
9. Judiciary
� supreme court
   Judicial
collection enhancement
    fund������������������������������� $1,000,000
   Court
appointed special advocate
    and
vulnerable persons fund�������� $3,000,000
10. Judiciary � superior
court
   Juvenile
probation services fund����� $4,000,000
11. Arizona
state parks board
    State
parks revenue fund������������ $8,600,000
12. Department
of transportation
    Motor
vehicle liability insurance
    enforcement
fund������������������ $15,000,000
    State
match advantage for rural
    transportation
fund���������������� $6,700,000
    Vehicle
inspection and
    certificate
of title
    enforcement
fund������������������� $3,500,000
13. Water
infrastructure finance
    authority
of Arizona
   Water
supply development
    revolving
fund�������������������� $20,000,000
Sec. 122. Fund balance transfer; state highway fund; fiscal year 2026-2027
A. Notwithstanding any
other law, on or before June 30, 2027, $9,700,000 is transferred from the state
highway fund established by section 28-6991, Arizona Revised Statutes, to
the state general fund in fiscal year 2026-2027 for the purpose of
providing adequate support and maintenance for agencies of this state.
B. The amount transferred
from the state highway fund in subsection A of this section reflects interest
income earned from investment of monies in the state highway fund from a
portion of revenues derived from the tax levied by title 42, chapter 5,
articles 1 and 5, Arizona Revised Statutes, that were transferred to the state
highway fund by Laws 2022, chapter 321, section 20, subsection A, paragraph 2.
Sec. 123. Appropriation; attorney general; state department of corrections; opioid remediation; fiscal year 2026-2027; exemption
A. In addition to any other
appropriation made in fiscal year 2026-2027, the sum of $40,000,000 is
appropriated from the consumer remediation subaccount of the consumer
restitution and remediation revolving fund established by section 44-1531.02,
Arizona Revised Statutes, in fiscal year 2026-2027 to the attorney
general. This amount consists of monies deposited in the subaccount
pursuant to opioid claims-related litigation or settlements.
B. On or before July 8,
2026, the attorney general shall transfer the monies appropriated in subsection
A of this section to the state department of corrections opioid remediation
fund established pursuant to section 35-142, Arizona Revised
Statutes. If sufficient monies are not available on July 8, 2026 to
complete the transfer of all monies appropriated in subsection A of this
section, on or before July 8, 2026, the attorney general shall transfer such
monies as are then held in the consumer remediation subaccount of the consumer
restitution and remediation revolving fund established by section 44-1531.02,
Arizona Revised Statutes, and not otherwise appropriated by the
legislature. If a partial transfer is made pursuant to the preceding
sentence, then within three business days of receipt of additional monies into
the consumer remediation subaccount of the consumer restitution and remediation
revolving fund established by section 44-1531.02, Arizona Revised
Statutes, the attorney general shall transfer such monies to the state
department of corrections opioid remediation fund established pursuant to
section 35-142, Arizona Revised Statutes, and shall repeat such transfer
process on receipt of additional monies until the entirety of the amount
appropriated in subsection A of this section has been transferred.
C. The state department of
corrections shall use the monies in the state department of corrections opioid
remediation fund only for past and current department costs for care,
treatment, programs and other expenditures for individuals with opioid use
disorder and any co-occurring substance use disorder or mental health
conditions or for any other approved purposes as prescribed in a court order, a
settlement agreement or the one Arizona distribution of opioid settlement funds
agreement that is entered into by this state and other parties to the opioid
litigation.
D. Except as provided in
subsection C of this section, the attorney general shall not impose any
conditions on the transfer of the monies in the state department of corrections
opioid remediation fund.
E. If the attorney general
does not transfer the full amount specified in subsection A of this section on
or before the date specified in subsection B of this section, the general
accounting office of the department of administration shall directly transfer
the amount from the consumer remediation subaccount of the consumer restitution
and remediation revolving fund established by section 44-1531.02, Arizona
Revised Statutes, to the state department of corrections opioid remediation
fund.
F. The appropriation made
in subsection A of this section is exempt from the
provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of
appropriations.
Payment
Deferrals
Sec. 124. Reduction in
school district state aid apportionment in fiscal year 2026-2027; appropriation
in fiscal year 2027-2028
A. In addition to any other
appropriation reductions made in fiscal year 2026-2027, the department of
education shall defer until after June 30, 2027 but not later than July 12,
2027 $800,727,700 of the basic state aid and additional state aid entitlement
that otherwise would be apportioned to school districts during fiscal year 2026-2027
pursuant to section 15-973, Arizona Revised Statutes. The
funding deferral required by this subsection does not apply to charter schools
or to school districts with a student count of less than four thousand
pupils. The department of education shall make the deferral by
reducing the apportionment of state aid for each month in the fiscal year by
the same amount.
B. In addition to any other
appropriations made in fiscal year 2027-2028, the sum of $800,727,700 is
appropriated from the state general fund in fiscal year 2027-2028 to the
department of education and the superintendent of public instruction for basic
state aid and additional state aid entitlement for fiscal year 2027-2028. This
appropriation shall be disbursed after June 30, 2027 but not later than July
12, 2027 to the several counties for the school districts in each county in
amounts equal to the reductions in apportionment of basic state aid and
additional state aid that are required pursuant to subsection A of this section
for fiscal year 2026-2027.
C. School districts shall
include in the revenue estimates they use for computing their tax rates for
fiscal year 2026-2027 the monies they will receive pursuant to subsection
B of this section.
Statewide
Adjustments
Sec. 125. Appropriations;
operating adjustments
��������������������������������������������������� 2026-27
1. Employer health
insurance
 contribution
reduction���������� $(240,665,300)
Fund sources:
State
general fund���������������� $(194,788,900)
Other
funds������������������������� (45,876,400)
2. Employer health insurance
   contribution rate
increase�������� $404,684,500
Fund sources:
State general fund������������������ $324,684,500
Other
funds��������������������������� 80,000,000
3. State fleet operations
  reduction���������������������� $ (5,195,900)
Fund sources:
State
general fund���������������� $ (5,205,900)
Other
funds������������������������������� 10,000
4. State fleet replacement
  reduction���������������������� $ (5,122,400)
Fund sources:
State
general fund���������������� $ (2,422,400)
Other
funds�������������������������� (2,700,000)
5. State fleet operations
���   increase����������������������� $  6,190,600
Fund sources:
State
general fund���������������� $  5,690,600
Other
funds������������������������������ 500,000
6. State
fleet replacement
���   increase����������������������� $  2,964,200
Fund sources:
State
general fund���������������� $  1,964,200
Other
funds���������������������������� 1,000,000
7. Agency
risk management
���   reduction���������������������� $ (25,888,300)
Fund sources:
State
general fund���������������� $ (19,999,600)
Other
funds�������������������������� (5,888,700)
8. Agency
risk management
���   increase����������������������� $  12,897,300
Fund sources:
State
general fund���������������� $  9,897,300
Other
funds���������������������������� 3,000,000
9. Agency
retirement adjustment������ $ (3,407,300)
Fund sources:
State
general fund���������������� $ (3,135,800)
Other
funds���������������������������� (271,500)
10. Agency
rent adjustment����������� $   137,000
Fund sources:
State
general fund���������������� $    87,000
Other
funds������������������������������� 50,000
11. Agency
accounting system
���   charge
adjustment�������������� $  2,760,300
Fund sources:
State general fund���������������� $  1,260,300
Other funds���������������������������� 1,500,000
Employer
health insurance contribution reduction
The amount appropriated is for a
onetime employer contribution rate reduction for employee health insurance in
fiscal year 2026-2027. The joint legislative budget committee staff,
in consultation with the governor's office of strategic planning and budgeting
staff, shall determine and the department of administration shall allocate to
each agency or department an amount for the health insurance contribution
adjustment. The joint legislative budget committee staff shall also
determine and the department of administration shall allocate adjustments, as
necessary, in expenditure authority to implement the reduction in employer
health insurance contribution rates. The joint legislative budget
committee staff shall use the overall allocation of state general fund and
appropriated tuition monies for each university in determining that
university's specific adjustment.
Employer
health insurance contribution increase
The amount appropriated is for a
onetime employer contribution rate increase for employee health insurance in
fiscal year 2026-2027. The joint legislative budget committee staff,
in consultation with the governor's office of strategic planning and budgeting
staff, shall determine and the department of administration shall allocate to
each agency or department an amount for the health insurance contribution
adjustment. The joint legislative budget committee staff shall also
determine and the department of administration shall allocate adjustments, as
necessary, in expenditure authority to implement the increase in employer
health insurance contribution rates. The joint legislative budget
committee staff shall use the overall allocation of state general fund and
appropriated tuition monies for each university in determining that university's
specific adjustment.
State fleet operations reduction
The amount appropriated is for a state
fleet operations reduction in fiscal year 2026-2027. The joint
legislative budget committee staff, in consultation with the governor's office
of strategic planning and budgeting staff, shall determine and the department
of administration shall allocate to each agency or department an amount for the
state fleet operations reduction. The joint legislative budget
committee staff shall also determine and the department of administration shall
allocate adjustments, as necessary, in expenditure authority for the state
fleet operations reduction.
State
fleet replacement reduction
The
amount appropriated is for a state fleet replacement reduction in fiscal year
2026-2027. The joint legislative budget committee staff, in
consultation with the governor's office of strategic planning and budgeting
staff, shall determine and the department of administration shall allocate to
each agency or department an amount for the state fleet replacement
reduction. The joint legislative budget committee staff shall also
determine and the department of administration shall allocate adjustments, as necessary,
in expenditure authority for the state fleet replacement reduction.
State fleet
operations increase
The amount appropriated is for a state
fleet operations increase in fiscal year 2026-2027. The joint
legislative budget committee staff, in consultation with the governor's office
of strategic planning and budgeting staff, shall determine and the department
of administration shall allocate to each agency or department an amount for the
state fleet operations increase. The joint legislative budget
committee staff shall also determine and the department of administration shall
allocate adjustments, as necessary, in expenditure authority for the state
fleet operations increase.
State fleet replacement increase
The
amount appropriated is for a state fleet replacement increase in fiscal year
2026-2027. The joint legislative budget committee staff, in
consultation with the governor's office of strategic planning and budgeting
staff, shall determine and the department of administration shall allocate to
each agency or department an amount for the state fleet replacement
increase. The joint legislative budget committee staff shall also
determine and the department of administration shall allocate adjustments, as
necessary, in expenditure authority for the state fleet replacement increase.
Agency risk
management reduction
The amount appropriated is for agency
risk management premium reduction in fiscal year 2026-2027. The
joint legislative budget committee staff, in consultation with the governor's
office of strategic planning and budgeting staff, shall determine and the
department of administration shall allocate to each agency or department an
amount for the risk management reduction. The joint legislative
budget committee staff shall also determine and the department of
administration shall allocate reductions, as necessary, in expenditure
authority to allow implementation of the risk management reduction.
Agency risk
management increase
The amount appropriated is for agency
risk management premium adjustments in fiscal year 2026-2027. The
joint legislative budget committee staff, in consultation with the governor's
office of strategic planning and budgeting staff, shall determine and the
department of administration shall allocate to each agency or department an
amount for the risk management adjustments. The joint legislative
budget committee staff shall also determine and the department of
administration shall allocate adjustments, as necessary, in expenditure
authority to allow implementation of the risk management adjustments.
Agency
retirement adjustment
The amount appropriated is for
retirement adjustments in fiscal year 2026-2027. The joint
legislative budget committee staff, in consultation with the governor's office
of strategic planning and budgeting staff, shall determine and the department
of administration shall allocate to each agency or department an amount for the
agency retirement adjustments. The joint legislative budget
committee staff shall also determine and the department of administration shall
allocate adjustments, as necessary, in expenditure authority to implement the
agency retirement adjustment.
Agency rent adjustment
The
amount appropriated is for agency rent adjustments for agencies relocating to
and within state-owned and lease-purchase buildings in fiscal year
2026-2027. The joint legislative budget committee staff, in
consultation with the governor's office of strategic planning and budgeting
staff, shall determine and the department of administration shall allocate to
each agency or department an amount for the agency rent
adjustment. The joint legislative budget committee staff shall also
determine, and the department of administration shall allocate adjustments, as
necessary, in expenditure authority to allow implementation of the agency rent
adjustment.
Accounting
system charge adjustment
The amount appropriated is for
accounting system charge adjustments in fiscal year 2026-2027. The
joint legislative budget committee staff, in consultation with the governor�s
office of strategic planning and budgeting staff, shall determine and the
department of administration shall allocate to each agency or department an
amount for the accounting system charge adjustment. The joint
legislative budget committee staff shall also determine, and the department of
administration shall allocate adjustments, as necessary, in expenditure
authority to allow implementation of accounting system charge adjustments.
Sec. 126. Department of law; general
agency counsel charges; fiscal year 2026-2027
Pursuant
to section 41-191.09, Arizona Revised Statutes, the following state
agencies and departments are charged the following amounts in fiscal year 2026-2027
for general agency counsel provided by the department of law:
1. Department of
administration��������������������� $127,700
2. Office of administrative
hearings���������������� $ 3,000
3. Arizona arts commission�������������������������� $ 3,100
4. Citizens clean elections
commission�������������� $ 2,700
5. State department of
corrections������������������ $ 2,000
6. Arizona criminal justice
commission�������������� $ 8,700
7. Arizona state schools
for the deaf
����� and the blind���������������������������������� $100,200
8. Commission for the deaf
and the hard
����� of hearing������������������������������������� $ 4,100
9. Arizona early childhood
development and
����� health
board����������������������������������� $ 47,100
10. Department of education�������������������������� $132,000
11. Department of emergency
and military affairs����� $ 30,000
12. Department of
environmental quality�������������� $135,600
13. Arizona exposition and
state fair board���������� $ 20,900
14. Arizona department of
forestry and fire
����� management������������������������������������� $ 13,400
15. Department of gaming����������������������������� $ 37,300
16. Department of health
services�������������������� $173,800
17. Arizona historical
society����������������������� $  700
18. Arizona department of
housing�������������������� $ 19,300
19. Department of insurance
and financial
����� institutions����������������������������������� $ 13,800
20. Department of juvenile
corrections��������������� $ 9,400
21. State land department���������������������������� $ 2,100
22. Department of liquor
licenses and control�������� $ 11,400
23. Arizona state lottery
commission����������������� $ 24,800
24. Arizona state parks
board������������������������ $ 45,800
25. State personnel board ��������������������������� $  600
26. Arizona pioneers' home��������������������������� $ 12,100
27. Department of public
safety���������������������� $677,400
28. Arizona board of
regents������������������������� $ 1,800
29. Arizona state
retirement system������������������ $ 69,100
30. Department of revenue���������������������������� $ 4,900
31. Department of state �
secretary of state�������� $ 1,800
32. State treasurer���������������������������������� $ 9,200
33. Department of veterans'
services����������������� $ 52,700
Reporting Requirements and Definitions
Sec. 127. Agency spending and encumbrances; quarterly report; fiscal year
2026-2027
Within fifteen
days of the last day after each quarter in fiscal year 2026-2027, the
department of administration shall report to the director of the joint
legislative budget committee and the director of the governor's office of
strategic planning and budgeting the year-to-date expenditures and year-to-date
encumbrances for operating and capital spending from the state general fund and
other agency funds in fiscal year 2026-2027. The information
shall be separately delineated by agency, budget fiscal year and fund source
and shall classify each appropriation by agency lump sum, special line item or
project.
Sec. 128. COVID-related expenditures; reporting requirements; intent
A. Within forty-five
days after the last day of each calendar quarter through June 30, 2028, the
office of the governor shall report to the president of the senate, the speaker
of the house of representatives, the chairpersons of the senate and house of
representatives appropriations committees and the director of the joint
legislative budget committee the total planned allocations and actual
expenditures from the coronavirus state fiscal recovery fund and the
coronavirus capital projects fund as appropriated by section 9901 of the
American rescue plan act of 2021 (P.L. 117-2).
B. Within
forty-five days after the last day of each calendar quarter through June
30, 2028, the superintendent of public instruction shall report to the
president of the senate, the speaker of the house of representatives, the
chairpersons of the senate and house of representatives appropriations
committees and the director of the joint legislative budget committee the total
planned allocations and actual expenditures of monies allocated to the
superintendent of public instruction from the elementary and secondary school
emergency relief fund as appropriated by section 2001 of the American rescue
plan act of 2021 (P.L. 117-2).
C. Reports required
pursuant to this section shall delineate expenditures by agency and program and
include descriptions of the purposes of the expenditures.
D. The legislature intends
that the executive branch of state government report on its planned and actual
use of any major additional federal aid to this state through federal
legislation enacted by the end of fiscal year 2026-2027. The
timing and frequency of these reports should be the same as required by
subsections A and B of this section. The chairperson and vice chairperson of
the joint legislative budget committee may provide recommendations to the
executive branch concerning federal legislation that would qualify under this
subsection.
Sec. 129. Legislative intent; expenditure reporting
The legislature intends that all
departments, agencies and budget units receiving appropriations under the terms
of this act continue to report actual, estimated and requested expenditures by
budget programs and budget classes in a format that is similar to the budget
programs and budget classes used for budgetary purposes in prior
years. A different format may be used if deemed necessary to
implement section 35-113, Arizona Revised Statutes, agreed to by the
director of the joint legislative budget committee and incorporated into the
budget preparation instructions adopted by the governor's office of strategic
planning and budgeting pursuant to section 35-112, Arizona Revised
Statutes.
Sec. 130. Border security; federal reimbursement
Pursuant to section 35-142.01,
subsection A, Arizona Revised Statutes, if a budget unit receives federal
monies in fiscal year 2026-2027 as reimbursement in whole or in part for
expenditures made by this state to secure its borders, the budget unit shall
promptly deposit the monies in the state general fund. The directors
of the budget units that receive reimbursements under this section shall notify
the joint legislative budget committee, the governor's office of strategic
planning and budgeting and the state comptroller in writing of the deposits.
Sec. 131. FTE positions; reporting; definition
Full-time equivalent (FTE) positions
contained in this act are subject to appropriation. The director of
the department of administration shall account for the use of all appropriated
and nonappropriated FTE positions, excluding those in the universities. The
director of the department of administration shall submit the fiscal year
2026-2027 report on or before October 1, 2027 to the director of the joint
legislative budget committee. The report must compare the level of
appropriated FTE usage in each fiscal year to the appropriated
level. For the purposes of this section, "FTE positions"
means the total number of hours worked, including both regular and overtime
hours as well as hours taken as leave, divided by the number of hours in a work
year. The director of the department of administration shall notify
the director of a budget unit if the budget unit's appropriated FTE usage has
exceeded its number of appropriated FTE positions. Each university
shall report to the director of the joint legislative budget committee in a
manner comparable to the department of administration reporting.
Sec. 132. Filled FTE positions; reporting
On or before October 1, 2026, each
agency, including the judiciary and universities, shall submit a report to the
director of the joint legislative budget committee on the number of filled
appropriated and nonappropriated FTE positions, by fund source, as of September
1, 2026.
Sec. 133. Transfer of spending authority
The
department of administration shall report monthly to the director of the joint
legislative budget committee any transfers of spending authority made pursuant
to section 35-173, subsection C, Arizona Revised Statutes, during the
prior month.
Sec. 134. Interim reporting requirements
A. State general fund
revenue for fiscal year 2025-2026, including a beginning balance of
$1,367,290,000 and other onetime revenues, is forecasted to be $18,516,400,000.
B. State general fund
revenue for fiscal year 2026-2027, including onetime revenues, is forecasted to
be $18,326,800,000.
C. State
general fund revenue for fiscal year 2027-2028, including onetime revenues, is
forecasted to be $18,287,400,000. State general fund expenditures
for fiscal year 2027-2028 are forecasted to be $18,263,100,000.
D. State general fund
revenue for fiscal year 2028-2029, including onetime revenues, is forecasted to
be $19,164,600,000. State general fund expenditures for fiscal year
2028-2029 are forecasted to be $18,922,100,000.
E. On or before September
15, 2026, the executive branch shall provide to the joint legislative budget
committee a preliminary estimate of the fiscal year 2025-2026 state general
fund ending balance. The estimate shall include projections of total
revenues, total expenditures and an ending balance. The department
of administration shall continue to provide the final report for the fiscal
year in its annual financial report pursuant to section 35-131, Arizona
Revised Statutes.
F. Based on the information
provided by the executive branch, the staff of the joint legislative budget
committee shall report to the joint legislative budget committee on or before
October 15, 2026 whether the fiscal year 2026-2027 revenues and ending balance
are expected to change by more than $50,000,000 from the budgeted
projections. The joint legislative budget committee staff may make
technical adjustments to the revenue and expenditure estimates in this section
to reflect other bills enacted into law. The executive branch may
also provide its own estimates to the joint legislative budget committee on or
before October 15, 2026.
Sec. 135. Definition
For the
purposes of this act, "*" means this appropriation is a continuing
appropriation and is exempt from the provisions of section 35-190,
Arizona Revised Statutes, relating to lapsing of appropriations.
Sec. 136. Definition
For the
purposes of this act, "expenditure authority" means that the fund
sources are continuously appropriated monies that are included in the
individual line items of appropriations.
Sec. 137. Definition
For the purposes of this act,
"review by the joint legislative budget committee" means a review by
a vote of a majority of a quorum of the members of the joint legislative budget
committee.
APPROVED BY THE GOVERNOR JUNE 13, 2026.
FILED IN THE OFFICE OF THE SECRETARY OF STATE JUNE 13, 2026.