2026-2027; state budget implementation.

HB4140 - 572R - H Ver

House Engrossed

2026-2027; state
budget implementation.

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 4140

AN
ACT

Appropriating monies; relating to IMPLEMENTATION
of budgetary revisions.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1.
Unrestricted
federal monies; essential government services; retroactivity

A. Any unrestricted federal
monies received by this state beginning July 1, 2026 through June 30, 2027
shall be deposited in the state general fund. The monies shall be
used to pay essential government services.

B. This section applies
retroactively to from and after June 30, 2026.

Sec. 2.
Budget stabilization fund; exceptions

Notwithstanding section 35-144,
Arizona Revised Statutes:

1. For fiscal years 2026-2027
and 2027-2028, the legislature is not required to appropriate monies to
or transfer monies from the budget stabilization fund.

2. For fiscal year 2026-2027,
the budget stabilization fund is not limited to ten percent of the state
general fund revenue for the fiscal year, and the state treasurer may not
transfer any surplus monies from the budget stabilization fund to the state
general fund.

Sec. 3.
Budget
submission; government efficiency and reform initiative; report

In furtherance of section 35-111,
Arizona Revised Statutes, the governor's budget submission to the legislature
for fiscal year 2027-2028 must include a full accounting of the monies
available for expenditure pursuant to any savings realized by the government
efficiency and reform initiative. The governor's budget submission
must include a report that demonstrates how the government efficiency and
reform initiative savings target of $100,000,000 will be accomplished and must
include a comprehensive list of component initiatives, by savings amount, for
each affected agency.