HB4154 • 2026

general appropriations act; 2026-2027

HB4154 - general appropriations act; 2026-2027

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Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: David Livingston, Michael Carbone, Neal Carter, Steve Montenegro, Julie Willoughby
Last action: 2026-06-11
Official status: House committee of the whole
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

general appropriations act; 2026-2027

HB4154 - 572R - House Bill Summary ARIZONA HOUSE OF REPRESENTATIVES 57th Legislature, 2nd Regular Session Majority Research Staff House : APPROP DP 15-1-2-0-0 HB 4154 : general appropriations act; 2026-2027 Sponsor: Representative Livingston, LD 28 House Engrossed Overview Appropriates monies for the operation of the state government in FY 2027.

What This Bill Does

HB4154 - 572R - House Bill Summary ARIZONA HOUSE OF REPRESENTATIVES 57th Legislature, 2nd Regular Session Majority Research Staff House : APPROP DP 15-1-2-0-0 HB 4154 : general appropriations act; 2026-2027 Sponsor: Representative Livingston, LD 28 House Engrossed Overview Appropriates monies for the operation of the state government in FY 2027.
History The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general appropriations.
Article IV, Section 20, Part 2 of the Constitution of Arizona requires the General Appropriations Act (feed bill) to contain only appropriations for the different state departments, state institutions, public schools and interest on public debt.
Statutory changes necessary to reconcile the appropriations made in the feed bill and other changes are drafted into separate budget bills prepared according to subject area.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HOUSE - Floor Amend to Bill - Livingston - passed (Adopted)

Adopted

Plain English: DUNCAN S.

DUNCAN S.
6/11/2026 (602) 926-3848 ARIZONA HOUSE OF REPRESENTATIVES FLOOR AMENDMENT EXPLANATION 57th Legislature, 2nd Regular Session Majority Research Staff HB 4154: general appropriations act; 2026-2027 LIVINGSTON FLOOR AMENDMENT 1.
Specifies that of the two new FTE positions at the Department of Agriculture, one FTE is for expenses associated with the screwworm response and allows the state veterinarian to oversee and the department to conduct inspections at the border if the border opens for live cattle imports.
The second FTE is for expenses related to a zoonotic disease, or any other animal disease response.

Bill History

2026-06-11 House
House committee of the whole
2026-06-10 House
House majority caucus
2026-06-10 House
House minority caucus
2026-06-10 House
House second read
2026-06-09 House
House Rules: C&P
2026-06-09 House
House Appropriations: DP
2026-06-09 House
House first read

Official Summary Text

HB4154 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

House
: APPROP DP 15-1-2-0-0

HB
4154
: general appropriations act; 2026-2027

Sponsor:
Representative Livingston, LD 28

House
Engrossed

Overview

Appropriates
monies for the operation of the state government in FY 2027.

History

The Arizona Legislature adopts a budget for each fiscal year
(FY) that contains general appropriations.
Article IV, Section 20, Part 2
of
the Constitution of Arizona requires the General Appropriations Act (feed bill)
to contain only appropriations for the different state departments, state
institutions, public schools and interest on public debt. Statutory changes
necessary to reconcile the appropriations made in the feed bill and other
changes are drafted into separate budget bills prepared according to subject
area.

Provisions

The tables below
indicate state General Fund (GF) and other fund (OF) changes for appropriated
state agencies in FY 2027 stated in terms of changes to the
FY 2027 JLBC Baseline
.

Major footnotes
are stated in terms of changes to the
FY 2026 General Appropriations
Act
.

Summary
of Changes

Fund

Comments

FY
2027 Changes to JLBC Baseline

Acupuncture Board of Examiners (ADOA) (Sec. 4)

1.

Allows the
Board to use up to $50,000 of the lump sum appropriation to pay outstanding
Central Service Bureau invoices.���

Department of Administration (ADOA) (Sec. 5)

Food Bank Capital

GF

Onetime

$3,000,000

County Sheriff Support

GF

Onetime

$7,000,000

Gila County Disaster Relief

OF

Onetime

$10,000,000

911 Call Response Times

OF

Onetime

$4,000,000

Enterprise Resource Planning
Division

OF

Ongoing

$7,512,200

State Employee Professional
Development

OF

Onetime

$1,000,000

2.

Requires
that ADOA distribute $377,100 for county support for corrections officer
employer contributions in FY 2027 and specifies the amounts to be distributed
to each county.

3.

Specifies that ADOA shall
distribute, by July 15, 2026, the Gila County disaster relief FY 2027
appropriation to the following political subdivisions:

a.

$2.5 million to the Town of
Miami;

b.

$2.5 million to the City of
Globe;

c.

$5 million to Gila County.

4.

Requires
ADOA to distribute the county sheriff support FY 2027 appropriation by July 31,
2026 and specifies in the amounts to be distributed to sheriff's offices.

5.

Specifies the qualifications for
the recipient of the ADOA distribution to a food bank for capital needs.

ADOA � School Facilities Division (SFD) (Sec. 6)

Building Renewal
Grant Funding

GF

Onetime

$183,300,000

Building Renewal
Grants Administration Costs

GF

Onetime

$750,000

New School
Construction Projects

GF

Onetime prior year
project savings

$(26,100,000)

6.

Exempts the $750,000 FY 2027 appropriation
for building renewal grants administration from lapsing.

7.

Allows the SFD to use the
unencumbered balance of $27,318,100 in the New School Facilities Fund for
facilities and land costs for school districts that received final approval by
December 15, 2025.

ADOA � Automation Projects (Sec. 7)

AHCCCS Mainframe Replacement

OF

Onetime

$12,940,000

DOR Mainframe Migration

OF

Onetime

$1,425,000

Medical Board Website
Modernization

OF

Onetime

$150,000

8.

Exempts the
$19,456,800 FY 2025 appropriation for DOR's IT system modernization project
from lapsing through FY 2027.

9.

Exempts the
$3,396,000 FY 2025 appropriation to replace the Medicaid enterprise systems
mainframe from lapsing through FY 2027.

10.

Exempts the
$494,500 FY 2024 appropriation to replace the concealed weapons tracking system
from lapsing through FY 2027.

11.

Exempts the
FY 2024 appropriations from the Health and Human Services Information System
subaccounts from lapsing through FY 2027.

12.

Exempts the
$7,000,000 FY 2024 appropriation to the Corporation Commission from lapsing.

13.

Allows the $7,000,000 FY 2024
appropriation to the Corporation Commission to be used for post-launch expenses
of the online records and filing system and exempts expenditures from this
allocation from review by JLBC.

Arizona Department of Agriculture (Sec. 9)

Licensing IT System
Maintenance

OF

Onetime

$500,000

14.

Allows the Department to fill an
additional 2 FTE positions and spend $250,000 from the Commercial Feed Fund.

15.

Specifies that of the 2 FTE
positions, one shall be used for expenses associated with the screwworm
response.

16.

Allows the Department to conduct
inspections as part of the screwworm response at the border if the border opens
for live cattle imports and allows the state veterinarian to oversee the
response.

17.

Specifies that of the 2 FTE
positions, one shall be used for expenses related to a zoonotic disease or any
other emerging animal disease response.

Arizona Health Care Cost Containment System (AHCCCS) (Sec. 10)

Formula

GF

Ongoing

$(42,000,000)

H.R. 1 Eligibility

GF

Onetime

$10,200,000

Critical Access Hospitals

GF

Onetime

$4,300,000

Behavioral Health Crisis 9-8-8
Hotline

GF

Onetime

$4,000,000

Urban Traditional Healing

GF

Onetime

$400,000

Office of Inspector General �
Fraud Enforcement

GF

Ongoing

$400,000

Contracted Legal Costs � Sober
Living Homes

OF

Onetime

$1,375,000

Enhanced Residential Treatment

OF

Onetime; FY 2027-FY 2029

$2,739,600

18.

Exempts the
$10,200,000 FY 2027 appropriation for H.R. 1 eligibility from lapsing through
FY 2028.

19.

Specifies
that of the H.R. 1 eligibility, $4,000,000 shall be used for information
technology system upgrades and exempts the upgrades from review by the
Information Technology Authorization Committee.

20.

Exempts the
$2,739,600 FY 2027 appropriation for enhanced residential treatment from
lapsing.

21.

Extends the lapsing date for the
FY 2025 graduate medical education appropriation to December 31, 2026.

Arts Commission (Sec. 11)

Arts Trust Fund Deposit

GF

Onetime

$2,000,000

Attorney General (Sec. 13)

Coordinated Re-Entry

GF
and OF

Onetime

$17,000,000

22.

Requires the
$17,000,000 appropriation for Coordinated Re-Entry Planning Services Grants be
distributed as follows: $2,000,000 to each of Coconino, Maricopa, Mohave,
Navajo, Pima, Pinal, Yavapai and La Paz counties, and $1,000,000 for a grant to
establish a statewide coordinated reentry database.

Barbering and Cosmetology Board (Sec. 14)

Additional Staffing

OF

Ongoing

$235,000

23.

Requires
that the Board use $235,000 of the lump sum appropriation to fill three FTE
positions, including one licensing specialist, one customer service
representative and one quality assurance specialist.

Department of Child Safety (DCS) (Sec. 17)

Congregate Care

GF

Onetime

$36,900,000

Extended Foster Care
Comprehensive� Service Model

GF

Onetime

$8,200,000

Extended Foster Care Caseload
Increase

GF

Onetime

$1,000,000

Guardian IT System

GF

Onetime

$9,800,000

Federal Match Rate Adjustment

GF

Onetime

$1,900,000

24.

Allows for
DCS to transfer monies between out-of-home placement line items without seeking
JLBC review.

25.

Exempts the $43,787,500 FY 2025
supplemental Expenditure Authority appropriation from lapsing until June 30,
2027.

State Board of Chiropractic Examiners (Sec. 18)

26.

Requires the
Board, by September 1, 2026, to provide a report the JLBC and OSPB detailing
the Board's proposal to resolve the imbalance between ongoing revenues and
ongoing expenditures.

Community Colleges (Sec. 20)

Formula

GF

Ongoing

$700,000

Corporation Commission (Sec. 22)

Shift Railroad Safety Funding
from GF to Securities Fund

GF

Ongoing

$(792,700)

27.

Adds 0.1 FTE
to the Corporation Commission.

Department of Corrections (DOC) (Sec. 23)

4% Correctional Officer
Stipend

GF

Ongoing

$24,000,000

Shift OF to GF for Operating
Needs

GF

Ongoing

$15,900,000

Non-Contract Medication

GF

Ongoing; opioid backfill

$6,700,000

Health Care Federal Injunction
Costs

GF

Ongoing

$55,800,000

Shift OF to Capital Uses and
Backfill with GF

GF

Ongoing

$10,000,000

Continue Private Prison
One-Time Funding

GF

Ongoing beginning in FY 2028

$54,300,000

Body Worn Cameras

GF

Onetime

$3,500,000

Braille Transcription Program

OF

Onetime

$300,000

28.

Moves
Overtime and Compensatory Time line items to the Operating Budget.

29.

Moves
Non-Contracted Medication and Injunction-Related IT line item to Jensen
Injunction Compliance line item.

30.

Stipulates
that $3,7676,200 of the 4% correctional officer stipend appropriation shall be
used to award a 4% correctional officer stipend to officers employed in a
private prison.�

31.

Requires DOC
to increase contracted rates in FY 2027 to provide an amount sufficient for a
4% salary increase to each correctional officer employed in a private prison.

32.

Stipulates
that the DOC lump sum appropriation includes funding to convert the onetime
stipend for corrections officers equal to four percent of the annual salary as
appropriated in FY 2026 into a four percent annual salary increase in FY 2027.

33.

Exempts the
FY 2027 appropriation for body worn cameras from review by the Information
Technology �������� Authorization Committee.

34.

Stipulates
that of the amount appropriated in the Jensen Injunction Compliance line item,
$45,097,700 shall be distributed to a contracted health care provider
contingent on execution of a signed amendment to the current contract,
including the following:

a.

increases to staffing levels in
accordance with DOC directives;

b.

quarterly reporting requirements
from the vendor on staffing levels and progress towards staffing goals;

c.

a quarterly distribution
schedule based on implementation of goals;

d.

automatic sanctioning or fines
associated with failure to implement goals.

35.

Exempts the
FY 2026 Arizona Correctional Information System Upgrades appropriation from
lapsing.

36.

Allows DOC
to use up to $10,900,000 of its FY 2026 operating lump sum appropriation in FY
2027 for compensatory or holiday liability accruals.

37.

Allows DOC
to prioritize inmates closest to reentry for participation in the $300,000
braille transcription program appropriation.

Arizona Criminal Justice Commission (ACJC) (Sec. 24)

Victims of Crime Act Federal
Backfill

GF

Ongoing

$2,250,000

Law Enforcement Crime Victim
Notification Fund

OF

Onetime

$2,594,800

Operating Costs

OF

Ongoing

$32,500

38.

Specifies
that the $600,000 FY 2027 appropriation for the major incident regional law
enforcement task force shall be distributed evenly to the sheriff's offices of
the original five major incident division task forces located in Cochise,
Coconino, Navajo, Pinal, and Yuma Counties.

Arizona State Schools for the Deaf and the Blind (ASDB) (Sec.
25)

Supplemental Early Childhood
Therapies

OF

Onetime

$50,000

39.

Requires, on
or before September 1, 2026, ASDB to report to the Joint Legislative Budget
Committee detailing the school's operations and budgetary changes since FY
2026.

40.

Requires
that monies appropriated in the Supplemental Early Childhood Services line item
be used to continue the current contracts for supplemental early childhood
services to eligible infants and toddlers and their families.

Department of Economic Security (DES) (Sec. 29)

Formula

GF

Ongoing

$(42,400,000)

Legacy Mainframe Systems
Contractual Costs

GF

Onetime

$6,100,000

Summer Food Benefits (SUN
Bucks)

GF

Onetime

$1,761,800

SNAP Error Rate Reduction
Workload

GF

Onetime

$10,800,000

SNAP Administration Match Rate
Adjustment

GF

Ongoing

$(900,000)

Victims of Crime Act Federal
Backfill

GF

Ongoing

$11,500,000

Child Care Assistance Program�

GF

Onetime

$44,800,000

Produce Incentive Program
(Double Up Food Bucks)

GF

Onetime

$2,000,000

Area Agencies on Aging

GF

Onetime

$5,000,000

Civil Legal Aid

GF

Onetime

$3,000,000

Out of School Child Care

GF

Onetime

$3,000,000

Community Based Services

GF

Onetime

$17,900,000

Blind Adults Skills Training
and Education

OF

Onetime

$150,000

Transfer ASDB Supplemental
Early Childhood Therapies to AZEIP

OF

Onetime

$150,000

Reentry Employment Support

GF
and OF

Ongoing

$3,000,000

41.

Exempts the
$5,000,000 appropriation for Area Agencies on Aging from lapsing.

42.

Specifies
that of the $5,000,000 FY 2027 appropriation for Area Agencies on Aging, DES
shall distribute $500,000 to the Inter Tribal Area Agency on Aging and $500,000
to the Navajo Nation Area Agency on Aging.

43.

Exempts the
$3,000,000 appropriation for civil legal aid from lapsing.

44.

Requires the
$3,000,000 appropriation for civil legal aid to be distributed to nonprofit
organizations for the provision of statewide general civil legal aid services
consistent with the terms and restrictions of the legal services corporation as
of federal FY 2026.

45.

Exempts the
$2,000,000 appropriation for the produce incentive program from lapsing.

46.

Exempts the
$3,000,000 appropriation for out-of-school child care from lapsing.

47.

Exempts the
$15,500,000 FY 2026 appropriation for the coordinated homeless services line
item from lapsing through FY 2027.

48.

Exempts the
$1,500,000 FY 2026 appropriation for the Homeless Veterans' Services line item
from lapsing through FY 2027.

49.

Exempts the
$500,000 FY 2026 appropriation for the Homeless Veterans' Strategic Plan line
item from lapsing through FY 2027.

50.

Exempts the
SNAP error rate reduction workload appropriation made in the Public Law 119-21
Implementation � SNAP line item from lapsing through FY 2028.

51.

Exempts the
$1,761,800 appropriation for SUN Bucks from lapsing through October 31, 2027.

52.

Exempts the $150,000
Supplemental Early Childhood Therapies appropriation from lapsing.

Department of Education (ADE) (Sec. 31)

Formula

GF

Ongoing

$(92,100,000)

Unused Land Trust Balance One-Time
Formula Offset

GF

Onetime

$(7,963,500)

3rd Year Low Income Weight
Increase�

GF

Onetime, ongoing beginning FY
2028

$37,000,000

3rd Year Additional Assistance
Increase

GF

Onetime, ongoing beginning FY
2028

$29,000,000

Community Gardens

GF

Onetime

$600,000

School Meals

GF

Onetime

$2,000,000

53.

Specifies
that, of the $29,000,000 appropriated for additional assistance, $23,142,00 is
included for a onetime district additional assistance supplement and $5,858,00
is included for a onetime charter additional assistance supplement.

54.

Requires ADE
to distribute monies for district additional assistance and charter additional
assistance on a proportional basis based on the district or charters additional
assistance funding that each district or charter receives in FY 2027.

55.

Allows a
school district to budget the onetime district additional assistance in either
the school district's maintenance and operation fund or unrestricted capital
outlay fund.

56.

Requires ADE
to allocate $37,000,000 for onetime free and reduced-price lunch (FRPL) group B
weight supplement in FY 2027.

57.

Directs ADE
to distribute the appropriated amount for onetime FRPL group B weight
supplement to school districts and charter schools on a pro rata basis using
the weighted student count for FRPL students in FY 2027 for the school district
or charter school.

58.

Allows a
school district to budget the monies it receives from the onetime FRPL group B
weight supplement in either the school district's maintenance and operation
fund or unrestricted capital outlay fund.

59.

Requires ADE
to allocate monies for the onetime school meal grants to school districts and
charter schools that participate in the National Lunch Program or School
Breakfast Program under the National School Lunch and Child Nutrition Acts for
grants to reduce or eliminate copayments that would be charged to eligible
children for reduced-price meals.

60.

Stipulates
that, if there are insufficient monies to cover the school meal grant awards
for all eligible grantees, ADE must reduce each grant proportionately to cover
all eligible grantees.

61.

Exempts the
$600,000 appropriation for community gardens from lapsing.�

62.

Requires ADE
to use $100,000 of its FY 2026 School Safety Program appropriation for a child
sexual abuse and assault awareness and prevention pilot program in FY 2027.

Department of Emergency and Military Affairs (DEMA) (Sec. 32)

63.

Allows DEMA
to use remaining unexpended and unencumbered monies from its FY 2023 onetime
maintenance backfill line item appropriation for construction of the Arizona
Army National Guard Surprise Readiness Center.

Department of Environmental Quality (DEQ) (Sec. 33)

Iron King Mine/Humboldt
Smelter Cleanup

GF

Onetime

$2,000,000

Deposit to Water Quality Fee
Fund

OF

Onetime

$9,500,000

Geothermal Energy Research

OF

Onetime

$1,500,000

Emissions Inspection Contract
Increases

OF

Ongoing

$3,094,500

Voluntary Vehicle Repair
Eligibility

OF

Onetime

$2,170,200

Air Permit Portal

OF

Onetime

$371,200

Backfill Federal Air Quality Reductions

OF

Ongoing

$3,900,300

Executive Clemency (Sec. 36)

Increaser Board Member
Salaries

GF

Ongoing

$157,000

Arizona Exposition and State Fair Board (Sec. 37)

64.

Exempts the
$2,000,000 FY 2026 appropriation for enhanced state fair operations from
lapsing through FY 2027.

Department of Forestry and Fire Management (DFFM) (Sec. 38)

Wildfire Suppression Funding

GF

Onetime

$10,000,000

65.

Specifies
that the $10,000,000 wildfire suppression funding appropriation shall be used
for the purposes and are subject to the restrictions outlined in Laws 2021, 1st
Special Session, Chapter 1.

66.

Exempts the
$10,000,000 wildfire suppression funding appropriation from lapsing through FY
2029.

Department of Game and Fish (AZGF) (Sec. 39)

Selected Staff Salary
Statewide Adjustment Correction

OF

Ongoing

$246,800

Department of Gaming (ADG) (Sec. 40)

Racing Regulation Fund Deposit

GF

Onetime

$1,900,000

Increase HISA Assessment
Funding

OF

Ongoing

$644,900

Division of Problem Gaming

OF

Ongoing

$680,000

Department of Health Services (DHS) (Sec. 43)

Arizona State Hospital -
Sexually Violent Persons

GF

Onetime

$1,500,000

Arizona State Hospital
Operating Funding

GF

Onetime

$2,100,000

Continue Existing Cooling
Centers for Heat Relief

OF

Onetime

$400,000

Add Duchenne Muscular
Dystrophy to Newborn Screening Panel

OF

Ongoing

$754,900

Enhanced Residential Treatment

OF

Onetime

$250,000

Alzheimer's State Plan

OF

Onetime

$700,000

Radiation Protection System
Grants

OF

Onetime

$1,500,000

67.

Exempts the
$400,000 cooling centers heat relief appropriation from lapsing through October
31, 2027.

68.

Stipulates
that the $1,500,000 radiation protection system grants appropriation shall be
used by DHS 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 procedures
occur.

Arizona Historical Society (Sec. 44)

69.

Allows
$549,600 of monies in the State Parks Revenue Fund to be used for Arizona
Historical Society expenses, contingent on if there is less than $300,000 in
the unrestricted balance of the AHS Donations Fund in FY 2027.

70.

Requires the
Arizona Historical Society to notify JLBC if there is less than $300,000 in the
AHS Donations Fund.

71.

Requires the
Arizona Historical Society to report to JLBC on the intended uses of any monies
from the State Parks Revenue Fund before spending any monies for expenses.

Department of Homeland Security (AZDOHS) (Sec. 46)

Increase Cybersecurity State
and Local Grants

OF

Onetime

$1,500,000

Continue Multi-Factor
Authentication Funding

OF

Onetime

$850,000

72.

Allows
AZDOHS to spend up to $500,000 of the Cyber Ready Arizona line item for
administration.

73.

Prohibits
AZDOHS from spending more than $11,000,000 from the Cyber Ready Arizona line
item to purchase cybersecurity tool licenses.

74.

Prohibits
monies in the Cyber Ready Arizona line item from being used to support
permanent FTE positions at any state agency or political subdivision, except
for the $500,000 allowed for administration.

75.

Allows water
facilities to be recipients of grants under the Cyber Ready Arizona line item.

Department of Insurance and Financial Institutions (DIFI) (Sec.
50)

Shift GF Budget to Non-GF
Source

GF

Ongoing

$(6,300,000)

One-Time Funding to Transition
to New Fee Authority

GF

Onetime

$1,600,000

Automobile Theft Authority
Operating

OF

Ongoing

$100,000

Automobile Theft Authority
Operating

OF

Ongoing

$(100,000)

Arizona Vehicle Theft Task
Force

OF

Ongoing

$100,000

76.

Directs DIFI
to 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.

77.

Directs DIFI
to assess and set the fees at rates that equal or exceed those expended in FY
2026.

78.

Allocates
$1,000,000 of the FY 2027 Financial Surveillance Fund appropriation to the DIFI
Financial Institutions Division.

79.

Specifies
that monies in DIFI's Arizona Vehicle Theft Task Force line item shall be used
to pay 100% of overtime expenditures for city, town, and county sworn officers
that participate in the task force.

Judiciary (Sec. 51)

Fund Prior County Probation
Salary Increases

GF

Onetime in FY
2027; ongoing in FY 2029

$10,500,000

Judicial Salary $10,000
Increase

GF

Ongoing

$1,100,000

Probation Electronic
Monitoring System Operating Costs

OF

Onetime

$1,300,000

80.

Stipulates
that the $1,300,000 probation electronic monitoring system operating costs
appropriation 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 services.

81.

Allows any
monies remaining from the Judiciary's $1,300,000 probation electronic
monitoring system appropriation to be used to operate the system for other
violent offender populations.

82.

Requires the
courts to submit quarterly reports on expenditures, enrollment, compliance, and
utilization to the Governor, President of the Senate and Speaker of the House.

83.

Specifies
that beginning January 1, 2027, the annual salary of all judges and justices
shall increase by $10,000.

Department of Juvenile Corrections (ADJC) (Sec. 50)

4% Youth Correctional Officer
Stipend

GF

Ongoing

$800,000

Adobe Mountain School
Operating Shortfall

OF

Onetime

$600,000

84.

Stipulates
that ADJC's lump sum appropriation includes funding to convert the onetime FY
2026 4% youth correctional officer stipend into a 4% salary increase in FY
2027.

Arizona State Land Department (ASLD) (Sec. 53)

Central Arizona Project Fees
Technical Adjustment

GF

Ongoing

$(200,000)

Legislature � Auditor General (Sec. 54)

State Employee Health Plan
Contracted Audit

OF

Onetime

$500,000

85.

Directs the
Auditor General to use the monies appropriated for the state employee health
plan contracted audit for an independent, third-party special audit on the
state's health insurance plan, including analysis of the health plan's
application of best practices in cost containment and a forensic audit of a
sample of claims from FY 2026.

Department of Liquor Licenses and Control (DLLC) (Sec. 55)

86.

Extends the
lapsing date of the $2,900,000 FY 2025 supplemental appropriation for records
management system through FY 2028 and allows the monies to be used for
implementation of regulations for alternative nicotine products.

State Natural Resource Conservation Board (Sec. 60)

87.

Exempts the
$100,000 FY 2026 appropriation for onetime operating costs from lapsing.

Navigable Streams Commission (Sec. 62)

Agency Sunset

GF

Ongoing, beginning in FY 2029

$143,000

Arizona State Board of Nursing (Sec. 63)

Complaint Prioritization and
180 Day Investigation Timeline

OF

Ongoing

$620,800

Nursing Care Institution Administrators and Assisted Living
Facility Board
(Sec. 64)

88.

Allows the
Board to use up to $30,000 of the lump sum appropriation to pay outstanding
Central Service Bureau invoices in prior years.���

Arizona State Board of Dispensing Opticians (Sec. 66)

Retiree Accumulated Sick Leave
Payout and Onboarding

OF

Onetime

$30,000

Arizona Board of Osteopathic Examiners in Medicine and Surgery (Sec.
68)

Additional Staffing

OF

Ongoing

$400,000

Arizona State Parks Board (ASPB) (Sec. 69)

Park Ranger and Water Operator
Staffing

OF

Ongoing

$996,600

89.

Allows the Board
to spend up to $1,400,000 of the monies in the State Parks Revenue Fund to pay
for State Historic Preservation Office operating expenses, if federal grant
monies are unavailable in FY 2027.

90.

Requires the
Board to report its expenditure plan to JLBC before spending any monies from
the State Parks Revenue Fund for State Historic Preservation Office operating
expenses.

91.

Extends the
lapsing date of the Arizona Veterans Memorial State Park appropriation through
FY 2028.

92.

Requires the Board to report its
revised expenditure plans to JLBC and OSPB if monies are available for land and
water conservation grant funding in FY 2027.

Department of Public Safety (DPS) (Sec. 77)

Victims of Crime Act Federal
Backfill

GF

Ongoing

$9,300,000

County Sheriff Support

GF

Onetime

$7,000,000

Security for Newly Created
Lieutenant Governor's Office

GF

Onetime and Ongoing

$700,000

Caseload Increase for AZPOST
Training Academy

OF

Onetime

$2,045,000

Grant
Support Staff

OF

Ongoing

$500,000

Scrap Metal Dealer Compliance

OF

Ongoing

$250,000

Highway Patrol and Non-Patrol
Replacement Vehicles

OF

Onetime

$15,540,300

Redaction Processing

OF

Onetime and Ongoing

$446,800

Aircraft Maintenance for
Airplane and Helicopters

OF

Onetime

$2,079,200

Wellness and Crisis Care
Program

OF

Onetime and Ongoing

$1,595,300

Civil Air Patrol

OF

Ongoing

$106,000

93.

Exempts the
$750,000 FY 2026 appropriation for the Yuma County Family Advocacy Center from
lapsing.

94.

Requires
that DPS must enter into a new agreement with the recipient of the monies
appropriated for the Yuma County Family Advocacy Center before distributing any
remaining funding from the appropriation.

95.

Exempts the $15,540,300 FY 2027
appropriation for vehicle replacement from lapsing through FY 2029.

Department of Real Estate (ADRE) (Sec. 78)

IT Project Maintenance

GF

Ongoing

$140,000

96.

Stipulates
that ADRE's lump sum appropriation includes an ongoing increase of $140,100,
beginning in FY 2027, for maintenance of the department's IT system.

97.

Stipulates the Legislature's
intent that the appropriation for IT project maintenance not result in the
increase of any fee or assessment levied.

Department of Revenue (DOR) (Sec. 82)

98.

Transfers
and appropriates, if the total value of properties retained by unclaimed
property contract auditors exceeds $1,473,900, the excess amount to the Department
of Revenue Administrative Fund. Allows DOR to use the monies for preparing and
delivering notices and communications to holders and property owners under the
unclaimed property program.

Secretary of State (SOS) (Sec. 83)

Address Confidentiality
Program

GF

One-time

$400,000

County Share of AVID Costs

OF

Onetime

$1,000,500

Record Retention Workload

OF

Ongoing

$194,600

99.

Requires the
SOS, before spending monies from the election services line item, to submit a
report on the expected amount and purpose of expenditures for the costs of the
2026 election to the President of the Senate, the Speaker of the House, JLBC
and OSPB.

100.

Requires, on
or before January 31, 2027, the SOS to submit a report to JLBC and OSPB on the
actual expenditures, by purpose, from the election services line item for the
2026 election.

101.

Prohibits
the SOS from using more than $250,000 from the election services line item for
direct costs.

102.

Exempts the
$450,000 FY 2025 appropriation for the Electronic Records Repository line from
lapsing until FY 2027.

103.

Prohibits monies for the Address
Confidentiality Program Fund deposit from being transferred to another line
item.

Arizona State Board of Technical Registration (Sec. 85)

Renew E-Licensing Contract

OF

Onetime

$77,000

Department of Transportation (ADOT) (Sec. 87)

Highway Maintenance � 487 New
Lane Miles

OF

Ongoing

$10,178,500

Highway Maintenance of Poor
and Fair-Rated Roads

OF

Ongoing

$5,201,600

Construction Management System
� Phase 4 of 5

OF

Onetime

$6,844,600

Construction Management System
� Phase 2 of 3

OF

Onetime

$5,570,600

State Fleet � Replace 284
Vehicles

OF

Onetime

$6,361,300

Fueling Facilities

OF

Onetime

$4,200,000

State Fleet � Exempt Rate
Increases

OF

Ongoing

$1,682,400

Highway Maintenance � I-17
Flex Lane

OF

Ongoing

$1,142,000

Expand Current Line for
Livestock Control to Include Crossings

OF

Ongoing

$700,000

MVD Office Security Upgrades

OF

Onetime

$563,100

Driver License and ID Card
Production

OF

Onetime

$386,100

License Plate Production

OF

Ongoing

$137,100

Staff Salary Correction

OF

Ongoing

$76,600

Highway Maintenance � South
Mountain Freeway COLA

OF

Ongoing

$66,000

104.

Allows ADOT
to use $73,300 from the FY 2027 State Highway Fund appropriation to pay FY 2024
invoices.

State Treasurer (Sec. 88)

Justice of the Peace Salary
Funding

GF

Ongoing

$100,000

105.

Allows unexpended monies from
the $50,000 FY 2026 appropriation distribution to Pinal County for illegal
dumping prevention to be used to expand and support the Pinal County Community
Cleanup Free Dump Day program.

106.

Reverts the FY 2024 and FY 2025
ballot paper appropriations to the General Fund on July 31, 2026.

Universities (Sec. 90-93)

UA - Eliminate Natural
Resource Users Law and Policy Center

GF

Ongoing

$(1,600,000)

UA � Water Adjudication
Funding

GF

Onetime

$500,000

UA � AZ REACH

GF

Onetime

$500,000

107.

Requires the Arizona Board of
Regents to submit its Arizona Promise Program report by December 1, 2027.

108.

Allows the Arizona Board of
Regents to distribute monies from the Washington D.C. Internships line item to
regional programs outside of Washington, D.C.

109.

Requires the University of
Arizona to use up to $1,200,000 of the GF monies appropriated to the operating
lump sum appropriation to operate the Arizona perinatal and pediatric
psychiatry access hotline.

110.

Stipulates that the $500,000
appropriation for the AZ REACH line item shall be used to provide medical care
transfer services for hospitals with less than twenty beds.

111.

Requires that the University of
Arizona use the $500,000 water adjudication appropriation to assist claimants
in the general stream adjudication of water rights.

112.

Exempts the $500,000 water
adjudication appropriation from lapsing.

113.

Declares it is the Legislature's
intent for the School of Civic and Economic Thought and Leadership at Arizona
State University, the Economic Policy Institute at Northern Arizona University
and for the Center for the Philosophy of Freedom at the University of Arizona
maintain the same funding level in FY 2027 as FY 2026, except the universities
may allocate the lump sum reduction of no more than 2.5% as prescribed by this
Legislation.

Arizona Department of Veterans Services (ADVS) (Sec. 94)

114.

Allows ADVS to spend the
$1,000,000 FY 2023 tribal ceremonies appropriation for the Arizona State
Veterans' Homes line item for tribal members in veterans' homes.�

Arizona State Veterinary Medical Examining Board (Sec. 95)

Digitize Licensee Prior Record
Digitization

OF

Onetime

$16,800

Water Infrastructure Finance Authority (WIFA) (Sec. 96)

Small Drinking Water Systems
Fund Deposit

OF

Onetime

$500,000

Department of Water Resources (ADWR) (Sec. 97)

Colorado River Litigation Fund
Deposit

OF

Onetime

$6,000,000

FY 2020 Appropriation Adjustment
(Sec. 98)

115.

Reduces the following amount
from the GF in FY 2027 to the following agencies:

Agency

Amount

ADE
� Teacher Development Pilot Program (FY 2020)

$(344,300)

FY 2021 Appropriation Adjustment
(Sec. 99)

116.

Reduces the following amount
from the GF in FY 2027 to the following agencies:

Agency

Amount

ADE
� Teacher Development Pilot Program (FY 2021)

$(400,000)

FY 2022 Appropriation Adjustment
(Sec. 100)

117.

Reduces the following amounts
from the GF in FY 2027 to the following agencies:

Agency

Amount

ADE
� Teacher Development Pilot Program (FY 2022)

$(400,000)

ADOA
� Retirement of Debt Financing Agreements (FY 2022)

$(5,037,800)

FY 2024 Appropriation Adjustment
(Sec. 101)

118.

Reduces the following amounts
from the GF in FY 2027 to the following agencies:

Agency

Amount

ADE
� Live, Remote Instructional Courses

$(100,000)

FY 2025 Appropriation Adjustment
(Sec. 102)

119.

Reduces the following amounts
from the GF in FY 2027 to the following agencies:

Agency

Amount

ADE
� Live, Remote Instructional Courses

$(100,000)

FY 2026 Appropriation Adjustment
(Sec. 113)

120.

Reduces the following amounts
from the GF in FY 2026 to the following agencies:

Agency

Amount

ADE
� Basic State Aid Formula

$(31,859,000)

FY 2026 Supplemental
Appropriations and Adjustments (Sec. 103-112)

Agency

Fund

Amount

AHCCCS
- Formula

GF

$104,728,400

AHCCCS
- Formula

EA

$471,741,800

DOC
� Operating Expenses

GF

$4,100,000

DVS
� State Home for Veterans Trust Fund Deposit

GF

$3,000,000

DES
- Formula

GF

$82,818,700

DES
- Formula

EA

216,304,700

DES
� Summer Food Benefits (SUN Bucks)

GF

$1,761,800

DPS
� Operating Expenditures

OF

$4,750,000

Community
Colleges � Wrestling Scholarships

GF

$(250,000)

ADE
� Wrestling Scholarships

GF

$250,000

SOS
� 2026 Election Services

GF

$4,000,000

Board
of Behavioral Health Examiners Operating Costs

OF

$150,000

121.

Appropriates
$2,018,700 from the state GF in FY 2026 to ADOA for the following purposes:

a.

to pay disallowed costs relating
to excess retained earnings;

b.

to pay disallowed costs relating
to the statewide information technology charges;

c.

for fund transfers in FY 2025;
and

d.

to pay interest owed from
prior-year disallowed costs.

122.

Declares the Legislature's
intent that ADOA not enter into any agreements to pay for any federal
reimbursements related to excess balances in the Special Employee Health
Insurance Trust Fund unless proposed agreements have been reviewed by JLBC.

123.

Exempts the $1,761,800
supplemental appropriation to DES for SUN Bucks from lapsing until October 31,
2026.

124.

Exempts the $4,750,000
supplemental appropriation to DPS for operating expenditures from lapsing.

125.

Directs ADE to use the $250,000
appropriation for wrestling scholarships to issue a grant to a single Arizona
school that offers instruction to grades six through twelve and incorporates
wrestling into its mission.

126.

Requires the SOS, before
spending the $4,000,000 supplemental appropriation for 2026 election services,
to submit a report on the expected expenditures to the President of the Senate,
Speaker of the House, JLBC and OSPB.

127.

Requires the SOS, by January 31,
2027, to submit a report to JLBC and OSPB detailing the actual expenditures, by
purpose, from the appropriation.

128.

Exempts the $4,000,000
supplemental appropriation to the SOS for 2026 election services from lapsing
and requires until June 30, 2027.

DES (Sec. 114)

129.

Continues to allow DES,
beginning April 1, 2027, to use up to $25,000,000 from the Budget Stabilization
Fund (BSF) to provide funding for reimbursement grants.

130.

Requires DES, before using the
BSF monies, to notify the Director of JLBC and the Director of OSPB.

131.

Requires the BSF appropriation
to be fully reimbursed by September 1, 2027, and to be reimbursed in full as
part of the closing process for FY 2027.

132.

Prohibits the BSF appropriation
from being used for additional programmatic expenditures.

FY 2027 Lump Sum Reductions
(Sec. 116)

133.

Reduces the following GF monies
from the lump sum appropriations of the following budget units in FY 2027.

Agency

Lump
Sum Reductions

Department of
Administration

$(235,200)

ADOA � School Facilities
Division

$(40,600)

Office of Administrative
Hearings

$(24,600)

Department of
Agriculture

$(390,500)

Attorney General

$(610,000)

Board for Charter
Schools

$(70,300)

Arizona Commerce
Authority

$(250,000)

Office of Economic
Opportunity

$(13,300)

Board of Education

$(80,600)

Department of
Education

$(343,500)

Department of Emergency &
Military Affairs

$(150,200)

State Board of
Equalization

$(18,400)

Board of Executive
Clemency

$(37,100)

Governor's Office

$(203,600)

Governor's Office of Strategic
Planning and Budgeting

$(71,400)

Arizona Historical
Society

$(59,900)

Prescott Historical
Society

$(26,900)

Judiciary � Supreme
Court

$(364,000)

Judiciary � Court of
Appeals

$(638,800)

Judiciary � Superior
Court

$(123,000)

Land Department

$(265,600)

House of
Representatives

$(544,900)

Joint Legislative Budget
Committee

$(76,800)

Legislative
Council

$(235,600)

Ombudsman � Citizens Aide
Office

$(40,200)

Senate

$(451,600)

Mine Inspector

$(39,700)

Navigable Streams
Commission

$(3,600)

Real Estate
Department

$(78,000)

Department of
Revenue

$(1,255,500)

Secretary of State

$(338,500)

Board of Tax
Appeals

$(8,000)

Office of Tourism

$(182,100)

State Treasurer

$(8,600)

Office of Tribal
Relations

$(1,700)

Arizona Board of
Regents

$(82,300)

Arizona State
University

$(8,096,000)

Northern Arizona
University

$(2,624,500)

University of Arizona � Main

$(4,725,900)

University of Arizona � Health
Services

$(1,027,700)

134.

Prohibits
the Universities from reducing the monies allocated to ASU's School of Civic
and Economic Thought and Leadership, NAU's Economic Policy Institute and the
University of Arizona's Center for the Philosophy of Freedom by more than 2.5%.

Debt
Service Payment (Sec. 117)

135.

Allocates
$26,997,100 of state GF revenue in FY 2027 to the Arizona Convention Center
Development Fund.

School
Safety Interoperability (Sec. 118)

136.

Requires ADE
to use $2,000,000 of its FY 2026 School Safety Program appropriation for school
safety interoperability program in FY 2027 and outlines required distributions.

State Treasurer Local
Distributions (Sec. 119)

137.

Appropriates $1,746,000 from the
Peace Officer Training Equipment Fund in FY 2027 to the State Treasurer to
distribute to specified recipients for public safety training simulators.

138.

Appropriates $1,000,000 from the
Peace Officer Training Equipment Fund to the Arizona Criminal Justice
Commission for grants that enhance law enforcement recruitment and retention
activities.

139.

Appropriates $300,000 from the
Peace Officer Training Equipment Fund to the State Treasurer to distribute to
the Superintendent for Public Instruction for school hardening grants.

140.

Appropriates $4,078,400 from the
Peace Officer Training Equipment Fund in FY 2027 to the State Treasurer to
distribute to distribute to specified recipients for records management
software.

141.

Appropriates $150,000 from the
Peace Officer Training Equipment Fund in FY 2027 to the State Treasurer to
distribute to the town of Paradise Valley for law enforcement equipment
purchases.

Fund
Transfers (Sec. 121-122)

142.

Transfers the following amounts
from the following fund sources to the state GF by June 30, 2026 for the
purpose of providing adequate support and maintenance for agencies of this
state:

Fund

FY
2026

FY 2027

Arizona Department of Administration

Risk Management
Fund

$6,100,000

Construction
Insurance Fund

$5,500,000

Co-Op State
Purchasing Fund

$3,000,000

Arizona Commerce Authority

Arizona
Competes Fund

$10,000,000

Corporation Commission

Securities
Regulatory and Enforcement Fund

$14,700,000

Utility
Regulation Revolving Fund

$3,400,000

Department of Environmental Quality

Recycling
Fund

$1,500,000

Underground
Storage Tank Revolving Fund

$2,400,000

Arizona Game and Fish Department

Heritage
Land Acquisition Fund

$5,000,000

Watercraft
Licensing Fund

$3,400,000

Industrial Commission

ICA
Admin Fund

$6,700,000

Department of Insurance & Financial Institutions

Automobile
Theft Authority Fund

$3,800,000

Financial
Services Fund

$3,300,000

Judiciary

Judicial
Collection and Enhancement Fund

$1,000,000

Court
Appointed Special Advocate & Vulnerable Persons Fund

$3,000,000

Juvenile
Probation Services Fund

$4,000,000

Land Department

Trust
Land Management Fund

$9,000,000

Arizona State Parks Board

State
Parks Revenue Fund

$8,600,000

Department of Transportation

SMART
Rural Transportation Fund

$6,700,000

Motor
Vehicle Liability Ins. Enforcement Fund

$15,000,000

Vehicle
Inspection and Cert. Enforcement Fund

$3,500,000

Water Infrastructure Finance Authority

Water
Supply Development Revolving Fund

$20,000,000

143.

Transfers $9,700,000, by July 1,
2027, from the State Highway Fund to the state GF in FY 2026 for the purposes
of providing adequate support and maintenance for agencies of this state.

144.

Specifies that the $9,700,000
transferred from the State Highway Fund reflects the interest income earned
from investment of State Highway Fund monies from a portion of revenues derived
from the state GF portion of transaction privilege tax revenues transferred in
the FY 2023 state budget.

Payment
Deferrals (Sec. 123-124)

145.

Appropriates $40,000,000 from
the Consumer Remediation Subaccount of the Consumer Restitution and Remediation
Revolving Fund in FY 2027 to the AG and specifies that the monies consist of
opioid claims-related litigation or settlements.

146.

Requires the AG, by July 8, 2026,
or if sufficient monies are not available on July 8, 2026, within three
calendar days after sufficient monies become available, to transfer the
$40,000,000 to the DOC Opioid Remediation Fund.

147.

Requires DOC to use the monies
in the specified opioid-related fund only for past and current costs for care,
treatment, programs and other expenditures for individuals with opioid use
disorder and any co-occurring substance use disorder or mental health
conditions or for any other approved purposes prescribed in a court order, a
settlement funds agreement that is entered into by the state and other parties
to the opioid litigation.

148.

Prohibits the AG from imposing
any conditions on the transfer of the monies in the DOC Opioid Remediation
Fund.

149.

Stipulates that, if the AG does
not transfer the full amounts specified by July 8, 2026, the ADOA General
Accounting Office must directly transfer the amount from the subaccount to the DOC
Opioid Remediation Fund.

150.

Exempts the AG monies from
lapsing.

151.

Continues to defer $800,727,700
in Basic State Aid (BSA) and additional state aid (ASA) payments from ADE in FY
2027 until after June 30, 2027, but no later than July 12, 2027, and excludes
charter schools and school districts with a student count less than 4,000
pupils from the deferral.

152.

Requires ADE to make the
deferral by reducing the apportionment of state aid for each month in the
fiscal year by the same amount.

153.

Requires ADE to disburse the FY
2028 appropriations of $800,727,700 to the counties for the school districts
starting July 1, 2027, and no later than July 12, 2027, in amounts equal to the
reductions in the apportionment of BSA and ASA.

154.

Requires school districts to
include, in the revenue estimates used for computing FY 2027 tax rates, the
deferred appropriation monies that the districts will receive.

Statewide
Adjustments (Sec. 125-126)

Area
of Adjustment

GF

OF

Total

Employer
Health Insurance Contribution Reduction

$(194,788,900)

$(45,788,900)

$(240,665,300)

Employer
Health Insurance Contribution Increase

$324,684,500

$80,000,000

$404,684,500

State
Fleet Operations Reduction

$(5,205,900)

$10,000

$(5,195,900)

State
Fleet Replacement Reduction

$(2,422,400)

$(2,700,000)

$(5,122,400)

State
Fleet Operations Increase

$5,690,600

$500,000

$6,190,600

State
Fleet Replacement Increase

$1,964,200

$1,000,000

$2,964,200

Agency
Risk Management Reduction

$(19,999,600)

$(5,888,700)

$(25,888,300)

Agency
Risk Management Increase

$9,897,300

$3,000,000

$12,897,300

Agency
Retirement Adjustment

$(3,135,800)

$(271,500)

$(3,407,300)

Agency
Rent Adjustment

$87,000

$50,000

$137,000

Agency
Accounting System Charge Adjustment

$1,260,300

$1,500,000

$2,760,300

155.

Outlines statewide adjustment
instructions and procedures.

156.

Outlines the FY 2027 individual
agency charges totaling $1,798,500 for general agency counsel provided by the
AG.

Miscellaneous
(Sec. 127-137)

157.

Declares the
Legislature's intent that all departments, agencies and budget units receiving
appropriations continue to report actual, estimated and requested expenditures
in a specified format.

158.

Contains
various reporting requirements.

159.

Defines
terms.

---------- DOCUMENT FOOTER ---------

Initials DS���������������� HB
4154

6/11/2026������� Page
0 House Engrossed

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Current Bill Text

Read the full stored bill text

HB4154 - 572R - H Ver

�

House Engrossed

general
appropriations act; 2026-2027

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HOUSE BILL 4154

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.