HB4156 • 2026

capital outlay; appropriations; 2026-2027

HB4156 - capital outlay; appropriations; 2026-2027

Budget Education Labor

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: David Livingston, Michael Carbone, Neal Carter, Steve Montenegro, Julie Willoughby
Last action: 2026-06-13
Official status: Chapter 128
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.

capital outlay; appropriations; 2026-2027

HB4156 - 572R - House Bill Summary ARIZONA HOUSE OF REPRESENTATIVES 57th Legislature, 2nd Regular Session Majority Research Staff House: APPROP DP 15-1-2-0 HB4156 : capital outlay; appropriations; 2026-2027 Sponsor: Representative Livingston, LD 28 Caucus & COW Overview Makes capital appropriations to state agencies in FY 2027.

What This Bill Does

HB4156 - 572R - House Bill Summary ARIZONA HOUSE OF REPRESENTATIVES 57th Legislature, 2nd Regular Session Majority Research Staff House: APPROP DP 15-1-2-0 HB4156 : capital outlay; appropriations; 2026-2027 Sponsor: Representative Livingston, LD 28 Caucus & COW Overview Makes capital appropriations to state agencies 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 , 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.

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.

Bill History

2026-06-11 Senate
Governor signed
2026-06-11 House
Transmitted to House
2026-06-11 Senate
Senate third read passed
2026-06-11 Senate
Senate passed
2026-06-11 Senate
Senate first read
2026-06-11 Senate
Transmitted to Senate
2026-06-11 House
House third read passed
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

HB4156 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

House:
APPROP DP 15-1-2-0

HB4156
:
capital outlay; appropriations; 2026-2027

Sponsor:
Representative Livingston, LD 28

Caucus
& COW

Overview

Makes
capital appropriations to state agencies 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
, 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. These bills are prepared according to subject area.

Provisions

Building
Renewal (Sec. 11)

1.

Appropriates
the following amounts to the specified agencies in FY 2027 for the maintenance
and repair of state buildings:

Arizona
Department of Administration (ADOA)

$10,000,000
from the state General Fund (GF);

$4,600,000
from the Capital Outlay Stabilization Fund (COSF);

$554,000 from
the Arizona State Hospital Land Fund;

i.

requires ADOA to allocate these
monies to state agencies for necessary building renewal;

ii.

reduces the appropriation
from the COSF to the amount available in that fund if the monies in
COSF are insufficient to fund the full appropriation;

iii.

allows the monies to be used for
retrofitting facilities for space consolidation;

Arizona
Department of Corrections (DOC)

$15,652,200
from the DOC Building Renewal Fund;

i.

restricts DOC from spending
these monies on personal services or overhead expenses related to managing the
funded projects;

ii.

prohibits DOC from spending more
than $4,570,000 of these monies to construct new facilities to address capital
needs as required by the court in the Jensen v. Thornell inmate health care
litigation;

Arizona
Game and Fish Department (AZGFD)

$1,932,900 from
the Game and Fish Fund;

Arizona
State Lottery Commission

$100,000 from
the State Lottery Fund;

Arizona
Department of Transportation (ADOT)

$24,158,500
from the State Highway Fund (SHF); and

$415,600 from
the State Aviation Fund (SAF).

Individual Capital Projects
(Sec. 12)

2.

Appropriates
the following amounts to the specified agencies or boards in FY 2027 for individual
capital projects:

Arizona
Exposition and State Fair Board

a.

$3,905,900 from the Arizona
Exposition and State Fair Fund for capital improvements;

AZGFD

b.

$150,000 from the Capital
Improvement Fund for dam maintenance;

c.

$400,000 from the Capital
Improvement Fund for hatchery maintenance;

d.

$11,000,000 from the Game and
Fish Fund for hatchery repairs;

Arizona
State Parks Board

e.

$3,552,200 from the State Parks
Revenue Fund for capital improvements;

f.

$200,000 from the State Parks
Revenue Fund to develop monitoring plan and install markers at Tonto Natural
Bridge state park;

Arizona
Pioneers' Home

g.

$482,000 from the Miners'
Hospital for Miners with Disabilities Land Fund for capital improvements;

ADOT

h.

$5,038,000 from the SHF to
construct new materials lab in Kingman;

i.

$4,944,000 from the SHF to
replace vehicle fueling facilities in Payson, Phoenix and Mesa; and

j.

$611,000 from the SHF to design
the renovation of the traffic signal and lightening warehouse in Phoenix.

ADOT
Statewide Highway Construction (Sec. 13)

3.

Appropriates
$432,663,000 from the SHF in FY 2027 to plan and construct
state highways, including the national system of interstate highways within
this state, the state primary or secondary system, the county primary or
secondary system and urban rural routes, to acquire rights-of-way and to
provide for the cost of contracted field administration and field engineering
on construction projects and debt service payments on bonds issued for highway
construction.

4.

Specifies
that any balances and collections in the SHF that exceed the specific amounts
appropriated in the General Appropriations Act and in the Capital Outlay Act
for FY 2027 are appropriated to ADOT for the purposes of statewide highway
construction.

5.

Directs
ADOT, by November 1, 2026, to report to the directors of the Joint Legislative
Budget Committee (JLBC) and the Governor's Office of Strategic Planning and
Budgeting (OSPB) on its actual prior year, estimated current year and upcoming
budget year highway construction expenses from all fund sources, as
prescribed.

6.

Requires
ADOT, by November 1, 2026, to report as outlined capital outlay information for
FYs 2026, 2027 and 2028, to the JLBC directors and OSPB.

7.

Tasks ADOT
with reporting, by November 1, 2026, ADOT's estimated outstanding debt
principal balance at the end of FY 2028 and the estimated debt service
payment amount for each FYs 2028, 2029, 2030 and 2031, to the JLBC
directors and OSPB, as prescribed.

8.

Exempts the
$432,663,000 appropriation from being subjected to a review by the Joint
Committee on Capital Review (JCCR).

ADOT
Airport Planning and Development (Sec. 14)

9.

Appropriates
$29,048,900 from the SAF in FY 2027 to ADOT to plan, construct,
develop and improve state, county, city or town airports
as determined by the State Transportation Board.

10.

Stipulates
that any balances and collections in the SAF that exceed the specific amounts
appropriated in the General Appropriations Act and the Capital Outlay Act for
FY 2027 are appropriated to ADOT in FY 2027 for the purposes of airport
planning and development.

11.

Requires
ADOT, by December 31, 2026, to report to JLBC staff on the status of all
aviation grant awards and distributions, delineating projects by individual
airport and fiscal year, including any future year commitments.

12.

Exempts
the $29,048,900 appropriation from being subjected to a JCCR
review.

ADOT
Appropriation Reductions & Transfers

13.

Reduces the
following amounts made from the GF to ADOT in FY 2021:

a.

$116,200 for
repaving State Route 69 in Prescott Valley;

b.

$1,734,300
for repaving State Route 95 in Mohave County; and

c.

$93,100 for
repairing State Route 186 and State Business Route 10 in Willcox. (Sec. 1)

14.

Decreases
$1,052,600 from the appropriation made from the GF to ADOT in FY 2023 for U.S.
Route 89. (Sec. 15)

15.

Removes the
following amounts made from the SHF to ADOT in FY 2023:

a.

$1,819,000
for repaving State Route 69 in Prescott Valley;

b.

$6,052,200
for repaving State Route 95 in Mohave County;

c.

$765,600 for
repairing State Route 186 and State Business Route 10 in Willcox;

d.

$1,615,500
for the rehabilitation of pavement along U.S. Route 191 between Armory Road and
East Safford;

e.

$885,000 for
the design and construction of a screen wall along the east side of Loop 101
near 16th Street;

f.

$322,500 for
installing lighting on the Sentinel exit in Gila Bend; and

g.

$5,912,100
for the rehabilitation of pavement along U.S. Route 191 between mile post 163
and 173. (Sec. 2, 16)

16.

Transfers from
July 1, 2026, to June 30, 2027, $17,371,900 from the SHF to the GF for the
purposes of providing adequate support and maintenance for the state agencies. (Sec.
17)

17.

Stipulates
that the $17,371,900 transfer consists of the appropriation reductions made
relating to ADOT's repavement of State Routes 69 and 95, repair of State Route
186 and State Business Route 10, rehabilitation pavement along U.S. 191, the
design and construction of the screen wall and the installation of lighting, as
outlined. (Sec. 17)

18.

Transfers,
before July 1,2026, $2,500,000 from the SHF to the GF for the support and
maintenance of state agencies, as specified. (Sec. 18)

19.

Mandates
that the amount transferred reflects the $2,500,000 reduction made in Laws 2022
from the state highway project to rehabilitate the pavement along U.S. Route
191 between Armory Road and East Safford. (Sec. 18)

Overpass
at Riggs Road & State Route 347 (SR347)

20.

Clarifies
that the FY 2021 $2,500,000 and $7,500,000 and FY 2024 $1,500,000
appropriations to ADOT are for designing, right of way acquisition, utility
relocation, natural resource recovery and construction for an overpass at Riggs
Road and to improve SR347. (Sec. 1, 7)

21.

Specifies
that the FY 2023 $19,000,000, FY 2024 $18,000,000 and $1,901,000, FY 2026
$10,839,000 and $1,500,000 appropriations to ADOT are for right of way
acquisition, utility relocation, natural resource recovery and construction to
improve SR347, including improving the intersection on SR347 at Casa Blanca
Road and Cement Plant Access and to construct an overpass at Riggs Road and
SR347. (Sec. 2, 4, 8, 10)

22.

Stipulates
that the $49,000,000 appropriation to ADOT in FY 2028 is for designing, right
of way acquisition, utility relocation, natural resource recovery and
construction for an overpass at Riggs Road and SR347. (Sec. 6)

23.

Clarifies
that the legislature intends that the
$49,000,000 appropriation
, rather
than the overpass at Riggs Road and SR347, be funded in FY 2028. (Sec. 6)

Miscellaneous

24.

Eliminates
the $5,000,000 appropriation from the SHF made in FY 2024 to ADOT for electric
vehicle charging and advance fuel infrastructure at ADOT's fleet facilities.
(Sec. 3)

25.

Changes from
FY 2028 to FY 2029 the appropriation of $25,000,000 from the GF to the Arizona Department
of Veteran's Services (ADVS) to construct and establish a veteran's
home facility in the northwestern portion of this state. (Sec. 5)

26.

Extends the
reversion date from June 30, 2026, to June 30, 2028, for ADOT monies
appropriated in FY 2026 for the Grand Canyon Airport terminal renovation,
contingent on receipt of a Federal Aviation Administration grant, otherwise,
the monies revert to the SAF. (Sec. 9)

27.

Extends the
reversion date from June 30, 2026, to June 30, 2027, for the $2,400,000
appropriation made to ADVS in FY 2026 for the Tucson veterans' home HVAC
replacement, which allows ADVS to apply for federal grant funding before JCCR
review and requires to revert to the GF if no federal grant is awarded. (Sec.
9)

14.

Exempts from
lapsing the appropriations made in Laws 2025 to ADOT for the design and
construction of additional vehicle lanes on Interstate 10 between State Route
85 and Cirtus Road. (Sec. 19)

15.

Permits ADOA
to spend up to 5% of the amounts appropriated to ADOA in the Capital Outlay Act
for FY 2027, excluding amounts to be distributed to nonstate agencies, for
expenditures for project management of building renewal and capital projects.
(Sec. 20)

16.

Prohibits
all other monies appropriated to ADOA in the Capital Outlay Act for FY 2027
from being spent for personal services or employee-related expenditures or for
maintenance contracts on building components and equipment without JCCR review.
(Sec. 20)

17.

Restricts
the monies appropriated in the Capital Outlay Act for FY 2027 from being
spent for personal services or employee-related expenditures of state
employees, excluding any services provided as part of the inmate construction
program for correctional facilities. (Sec. 20)

18.

Makes
conforming and technical changes. (Sec. 3, 6)

19.

20.

21.

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4156

23.

6/9/2026��� Page 0 Caucus
& COW

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Current Bill Text

Read the full stored bill text

Chapter 0128 - 572R - H Ver of HB4156

House Engrossed

capital outlay;
appropriations; 2026-2027

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

CHAPTER 128

HOUSE BILL 4156

AN
ACT

amending laws 2021, chapter 406, section
33, as amended by laws 2022, chapter 33, section 1 and Laws 2023, chapter 135,
section 1; amending laws 2022, chapter 309, section 8, as amended by Laws 2023,
chapter 135, section 3 and Laws 2025, chapter 235, section 1; Amending laws
2023, chapter 135, section 8; Amending Laws 2023, chapter 135, section 10, as
amended by Laws 2024, chapter 211, section 1 and Laws 2025, Chapter 235,
section 2; amending laws 2024, chapter 211, section 6; Amending laws 2024,
Chapter 211, section 9, as amended by laws 2025, chapter 235, section 3;
Amending Laws 2024, chapter 211, section 22; Amending laws 2024, chapter 211,
section 29; amending laws 2025, chapter 235, sections 8 and 9; Making capital
outlay appropriations for the different departments of the state and for state
institutions; providing for review of capital outlay projects.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Laws 2021, chapter 406, section 33,
as amended by Laws 2022, chapter 33, section 1 and Laws 2023, chapter 135,
section 1, is amended to read:

Sec. 33.
Appropriations; department of transportation; highway construction;
fiscal year 2020-2021; exemption; lapsing; report

A. The following amounts are appropriated from the
state general fund in fiscal year 2020-2021 to the department of transportation
for the following highway projects:

1. Repave State Route 69 in

Prescott
Valley���������������� �
$ 4,700,000

$ 4,583,800

2. Repave State Route 95 in

Mohave
county������������������ �
$46,700,000

$44,965,700

3. Study options for expanding the on and

off ramps at
the intersection of

Grand Avenue
and State Route 303����������� $ 150,000

4. Construct an overpass at Riggs Road

and State
Route 347������������������������ $25,000,000

5.
Study an overpass at Riggs Road and

Design,
right-of-way acquisition,

utility
RELOCATION, natural resource

recovery
and construction for an

Overpass
at RigGs Road and

improve
State Route 347����������������� $ 2,500,000

6.
Final design plan, right-of-way and

easements
for an overpass at

Riggs
Road and

Design, right-of-way

acquisition,
utility RELOCATION,

natural
resource recovery and

construction
for an

Overpass
at RiGgs Road and

improve
State Route 347����������������� $ 7,500,000

7. Study the north/south corridor in����������������������

Pinal county������������������������������� $ 4,000,000

8. Improve drainage on 67th Avenue

in Peoria���������������������������������� $ 8,500,000

9. Widen Camelback Road between State

Route 303 and
Litchfield Road

in Goodyear�������������������������������� $ 8,000,000

10. Study and design concept report for

the repair of
State Route 88��������������� $ 700,000

11. Repair and maintain 20th Avenue in

Safford������������������������������������ $ 1,032,100

12. Improve Tangerine Road near

Interstate 10
in Marana�������������������� $ 5,000,000

13. Construct a
bridge and extend

�
Ocotillo Road in Gilbert����������� $ 7,900,000

14. Repair State Route 186 and State

Business
Route 10 in Wilcox��
$ 3,500,000

$3,406,900

15. Replace Butte Avenue bridge in

Florence��������������������������������� $ 1,000,000

16. Improve Center Avenue in Jerome����������������� $ 560,000

17. Rehabilitate pavement along

State
Route 77 near Oro Valley����������� $15,807,500

18. Improve State Route 90 near

Fort
Huachuca���������������������������� $10,600,000

19. Improve State Route 87 � local match����������������� $ 750,000

20. Study guardrail � shoulder of

State
Route 377 from Holbrook to Heber��� $ 140,000

21. Improve Hill Street Corridor in Globe����������� $ 1,169,400

B. Notwithstanding section 41-1252, Arizona Revised
Statutes, the appropriations made in subsection A of this section are not
subject to review by the joint committee on capital review.

C. The appropriations made in subsection A of this
section do not lapse until the purpose for which the appropriations were made
has been accomplished or abandoned, or the appropriations stand for a full
fiscal year without an expenditure or encumbrance.

D. Before transferring monies between the projects
described in subsection A of this section, the department shall submit a report
for review by the joint committee on capital review.

Sec. 2. Laws 2022, chapter 309, section 8, as
amended by Laws 2023, chapter 135, section 3 and Laws 2025, chapter 235,
section 1, is amended to read:

Sec. 8.
Appropriations;
department of transportation; highway construction; intent; reports; exemption;
lapsing

A. The following amounts are appropriated from the
state highway fund established by section 28-6991, Arizona Revised
Statutes, in fiscal year 2022-2023 to the department of transportation for the
following highway projects:

1. Design and construct additional vehicle

lanes,
separated by a lighted median,

on Interstate
10 between State Route 85

and
Citrus Road��������������������������� $60,910,000

The legislature intends that:

(a) Not more than one hundred twenty days after the
effective date of this section, the city of Buckeye contribute $3,000,000 to
the project described in this paragraph.

(b) The Maricopa association of governments collect
and contribute at least $10,000,000 from sources other than this state for the
project described in this paragraph.

(c) The department use any federal discretionary
monies awarded for the project described in this paragraph before spending the
monies appropriated in this paragraph.

2. Improve Jackrabbit Trail between

Thomas Road and McDowell Road������������������ $20,080,000

The legislature intends that the city of Buckeye contribute
$5,020,000 to the project described in this paragraph.

3. Acquire right-of-way to extend State

Route 24��������������������������������������� $15,000,000

4. Rehabilitate pavement along United States

Route 60 between Loop 101

and Loop 202����������������������������������� $38,482,000

5. Study the construction of an emergency

evacuation bridge in Lake Havasu City���������� $ 200,000

6. Construct roundabout at intersection of

State Route 69 and State Route 169������������� $ 8,022,500

7. Study and design traffic interchange on

State Route 74 at Lake Pleasant
Parkway�������� $ 5,000,000

8. Assess intersection of State Route 79 and

Hunt Highway����������������������������������� $ 100,000

9. Assess intersection of State Route 87

and Skousen Road������������������������������� $ 100,000

10. Design traffic interchange on State

Route 89 at State Route 89A������������������� $ 600,000

11. Rehabilitate pavement along State Route 90

between Campus
Drive and the U.S. Border

Patrol Station in
Huachuca City��������������� $38,620,000

12. Rehabilitate pavement along United States

Route 191 between
Mile Post 163 and

Mile Post
173���������������������
$22,152,000

$16,239,900

13. Design and construct a screen wall along

Loop 101 between
51st Avenue and

59th Avenue����������������������������������� $ 9,514,000

14. Rehabilitate pavement along United States

Route 191 between
Armory Road and

East
Safford����������������������
$16,481,000

$14,865,500

15. Design to improve State Route 238 between

State Route 347 and
Green Road���������������� $ 800,000

16. Design work for State Route 303

Improvements from
Interstate 17

to Lake Pleasant
Parkway���������������������� $ 4,000,000

17. Design work for the interchange at

State
Route 303 and Interstate 17���������� $19,000,000

18. Design
,

to
widen lanes along

right-of-way

acquisition,
utility relation, natural

resource
recovery and construction to

improve
State Route 347, including

improving
the intersection on state route

347
at casa blanca road and cement

plant
access, and to construct an

overpass
at Riggs Road and
State

Route 347
between Interstate 10

and city of Maricopa
����������������������� $19,000,000

19. Assess intersection on State

Route 389 at
Arizona Avenue���������������� $ 100,000

20. Distribute to the northern Arizona

intergovernmental
public

transportation
authority for

capital costs of
the Flagstaff

downtown connection
center����������������� $ 6,000,000

21. Install lighting on the Sentinel exit

in Gila
Bend����������������������
$ 1,085,000

$762,500

22. Conduct a tier 2 study for the

North-South
Corridor in Pinal county������� $15,000,000

23. Conduct a tier 2 study for the Sonoran

Corridor in Pima
county�������������������� $14,000,000

24. Conduct a tier 2 study for Interstate 11

in Maricopa county������������������������� $25,000,000

25. Design and construct a screen wall

along the east side
of Loop 101

near 16th
Street��������������
$ 7,250,000

$ 6,365,000

B. Within thirty days after the last day of each
calendar quarter, the department shall report to the joint legislative budget
committee staff the projected cost and status of the projects for the
appropriations made in subsection A of this section. The report
shall include any impacts to the projects due to the increase in the cost of
concrete.

C. Before transferring monies between the projects
described in subsection A of this section, the department shall submit a report
for review by the joint committee on capital review.

D. Notwithstanding section 41-1252, Arizona Revised
Statutes, the appropriations made in subsection A of this section are not
subject to review by the joint committee on capital review.

E. The appropriations
made in subsection A of this section do not lapse until the purpose for which
the appropriations were made has been accomplished or abandoned, or the
appropriations stand for a full fiscal year without an expenditure or
encumbrance.

Sec. 3. Laws 2023, chapter 135, section 8 is
amended to read:

Sec. 8.
Appropriations;
state agency and administrative board capital projects

A. The amounts appropriated in this section are
appropriated for fiscal year 2023-2024 to be used by the applicable agency or
board for individual capital projects.

B. DEPARTMENT OF ADMINISTRATION

Electric vehicle charging and advance

����� fuel
infrastructure���������������������������� $ 5,000,000

Fund source:

State general fund����������������������������� $ 5,000,000

C. STATE DEPARTMENT OF CORRECTIONS

1. Replace evaporative cooling statewide

with HVAC�������������������������������������� $ 66,783,600

2. Statewide
door, lock and fire systems

replacement������������������������������������ $ 48,650,600

Fund source:

State general fund����������������������������� $115,434,200

D. DEPARTMENT OF EMERGENCY AND MILITARY AFFAIRS

Additional construction monies for

Surprise readiness center���������������������� $ 1,125,000

Fund source:

State general fund����������������������������� $ 1,125,000

E. ARIZONA EXPOSITION AND STATE FAIR BOARD

Capital
improvements��������������������������� $ 3,802,100

Fund source:

Arizona exposition
and state fair fund��������� $ 3,802,100

F. ARIZONA GAME AND FISH DEPARTMENT

1. Dam maintenance���������������������������������� $ 150,000

2. Hatchery maintenance����������������������������� $ 400,000

3. Property maintenance����������������������������� $ 300,000

4. Water conservation projects���������������������� $ 500,000

Fund sources:

Capital improvement
fund����������������������� $ 850,000

Game and fish fund����������������������������� $ 500,000

G. DEPARTMENT OF HEALTH SERVICES

1. State hospital water pump replacements ���������� $ 209,000

2. State hospital water isolation valves������������ $ 200,000

Fund source:

Arizona state
hospital fund�������������������� $ 409,000

H. ARIZONA STATE
PARKS BOARD

1. Capital
improvements����������������������������� $ 3,034,400

2. Verde River state
park��������������������������� $ 7,000,000

Fund sources:

State general fund����������������������������� $ 7,000,000

State parks revenue
fund����������������������� $ 3,034,400

The Arizona state parks board shall establish a state park at
the headwaters of the Verde River.

The Arizona state parks board shall report to the joint
committee on capital review and the governor's office of strategic planning and
budgeting if the board revises the plan for any project for which monies are
appropriated by this subsection because the board receives land and water
conservation grant funding.

I. ARIZONA PIONEERS' HOME

1. Capital improvements����������������������������� $ 468,700

2. Cemetery columbarium����������������������������� $ 75,000

3. Cemetery parking��������������������������������� $ 250,000

Fund source:

Miners' hospital
for miners with

disabilities land fund����������������������� $ 793,700

J. DEPARTMENT OF PUBLIC SAFETY

Renovate Flagstaff aviation hangar������������������� $ 320,000

Fund source:

State general fund����������������������������� $ 320,000

K. DEPARTMENT OF TRANSPORTATION

1. Construct new maintenance facility in

����� Keams Canyon����������������������������������� $ 3,400,000

2. Replace vehicle fueling facilities in

����� Springerville,
Holbrook and Chambers����������� $ 2,600,000

3. Electric
vehicle charging and advance

����� fuel infrastructure
at department

����� facilities
open and accessible to the

����� public,
excluding rest areas������������������� $ 2,500,000

4. Electric
vehicle charging and advance

�����
fuel infrastructure at department

�����
fleet facilities
�������������������������������
$ 5,000,000

5.
4.
Renovate motor vehicle division in

����� north
Tucson������������������������������� $� 4,100,000

6.
5.
Water conservation projects������������������ $�
2,500,000

7.
6.
Planning
of passenger rail

����� service from Phoenix to

����� Tucson������������������������������������� $�
3,500,000

Fund sources:

State general fund����������������������������� $ 3,500,000

State highway fund����������������������������� $ 20,100,000

Sec. 4. Laws 2023, chapter 135, section 10, as amended by Laws 2024, chapter 211, section 1 and
Laws 2025, chapter 235, section 2
,
is amended to read:

Sec. 10.
Appropriations; department of transportation; highway projects;
exemption

A. The following
amounts are appropriated from the state general fund in fiscal year 2023-2024
to the department of transportation for the following highway projects:

1. Improve the interchange at State Route

����� 303 and
U.S. Route 60������������������������� $ 4,500,000

2. Distribute to the town of Clarkdale to

����� replace
the current bridge over

����� Bitter
Creek wash����������������������������� $ 6,321,400

3.
Improve intersection on State Route
347

�����
at Casa Blanca Road and Cement

�����
Plant access

Design, right-of-way acquisition,

����� utility
relocation, natural resource

����� recovery
and construction to improve

����� state
route 347, including improving the

����� intersection
on state route 347 at casa

����� blanca
road and cement plant access,

����� and
to construct an overpass at riggs road

����� and
state route 347
�������������������������� $18,000,000

4. Distribute to the city of Phoenix for

����� improvements
on Happy Valley Road

����� between 35th
Avenue and 67th Avenue������������ $12,500,000

The legislature intends that the city of Phoenix contribute
$14,800,000 to the project described in this paragraph.

5. Distribute to the town of Prescott Valley

����� to
improve Glassford Hill Road���������������� $ 9,900,000

The department of transportation may distribute the monies
appropriated in this paragraph only if the town of Prescott Valley demonstrates
to the department that the town has a commitment for at least $1,100,000 in
matching monies of gifts, grants and donations for improvements to Glassford
Hill Road from sources other than this state.

6. Distribute to the
city of Coolidge for

����� Coolidge Avenue reconstruction between

����� Christensen Road and Clemans Road������������� $ 5,300,000

7. Distribute to the city of Eloy for Sunland

����� Gin
Road Interstate 10 overpass and road

����� improvements
between Interstate 10 and

����� Arica
Road������������������������������������ $ 5,000,000

8. Distribute to the town of Marana for�������������

����� design
costs for traffic interchange

����� between
Interstate 10 and Cortaro Road�������� $10,000,000

9. Distribute to the city of Douglas for road

����� development
and construction connecting

the Douglas
international commercial

����� port of
entry and State Route 80�������������� $ 8,170,000

10. Distribute to the town of Patagonia for

������� McKeown
Avenue reconstruction between

������� Fourth
Avenue West and State Route 82��������� $ 1,500,000

11. Distribute to the city of Sierra Vista for �����������������

������� Theater
Drive corridor improvements

������� between
7th Street and Carmichael

������� Avenue���������������������������������������� $ 1,800,000

12. Distribute to Graham county for

������� intersection
reconstruction at Norton

������� Road and
Reay Lane���������������������������� $ 500,000

13. Distribute to Cochise county for

������� Moson
Road drainage and safety

������� improvements
between State Route 90

������� and
Hereford Road����������������������������� $ 6,100,000

14. Improve U.S. Route 95 between Wellton

������� Mohawk
Canal Road and Aberdeen Road����������� $33,300,000

15. Distribute to Yuma county for

������� U.S.
Route 95 pavement

������� rehabilitation
between County

������� 22nd
Street and County 11th Street������������ $ 5,910,400

16. Design work and engineer improvements on

������� State
Route 85 between mile post 123

������� and
Maricopa Road����������������������������� $ 6,500,000

17. Construct turn lanes along State Route 95

������� near
Bullhead City���������������������������� $ 8,000,000

18. Construct an emergency evacuation bridge

������� in Lake
Havasu City��������������������������� $35,500,000

19. Distribute to the
town of Queen Creek

������� to extend State Route 24 including a

������� traffic interchange at State Route 24

������� and Ironwood Road����������������������������� $59,800,000

Monies distributed to the town of Queen Creek for the project
in this paragraph are eligible to be used for all necessary expenses from the
current project status until completion. The town of Queen Creek
must collaborate with Pinal county before spending the monies distributed for
the project pursuant to this paragraph.

20. Improve State Route 83 within

������� Santa
Cruz county����������������������������� $ 9,000,000

21. Distribute to the town of Cave Creek to

������� study
the construction of expanding

������� lanes
along Cave Creek Road between

������� Loop 101
and Carefree Highway����������������� $ 250,000

22. Design a freeway interchange on

������� Interstate
10 at Jackrabbit Trail������������� $ 5,000,000

23. Distribute to the city of Phoenix to

������� extend
43rd Avenue between Dove

������� Valley
Road and State Route 74���������������� $ 6,500,000

24. Design of State Route 87 intersection

������� improvements
at Arica Road and

������� Shedd
Road������������������������������������ $ 700,000

25. Distribute to the town of Huachuca City

������� for
Skyline Drive reconstruction

������� between
State Route 90 and

������� Huachuca
City Landfill������������������������ $ 1,565,200

26. Distribute to the town of Huachuca City

������� for
Skyline Pathway development along

������� Skyline
Drive between Gila Avenue

������� and
Edgewood Street �������������������������� $ 506,000

27. Distribute to the town of Pinetop-Lakeside

������� for
Porter Mountain Road improvements

������� in the
vicinity of Blue Ridge

������� elementary
school����������������������������� $ 2,242,200

28. Distribute to the city of Globe for

������� sidewalk
construction along Jesse Hayes

������� Road and
Six Shooter Canyon Road�������������� $ 3,501,100

29. Distribute to the city of Globe for

������� Jesse
Hayes Road bridge replacement

������� and
improvements at Pinal Creek��������������� $ 643,200

30. Distribute to the city of Globe for

������� Cottonwood
Street bridge replacement

������� and
improvements at Pinal Creek��������������� $ 632,500

31. Distribute to
Gila county for

������� Houston Mesa Road improvements

������� between
State Route 260 and .4 miles

������� south
of Forest Road 198���������������������� $ 243,600

32. Distribute to the Canyon Water improvement

������� district
to make improvements to

������� infrastructure,
including fire hydrants

������� and
other related water needs����������������� $ 610,000

33. Distribute to Graham county for

������� Safford Bryce
Road improvements in

������� the
vicinity of Talley Wash Crossing���������� $ 1,781,500

34. Distribute to the town of Thatcher for

������� 8th
Street improvements between

������� 1st
Avenue and 20th Avenue�������������������� $ 4,526,400

35. Repave U.S. Route 60 between Morristown

������� and
Wickenburg�������������������������������� $10,500,000

36. Distribute to the town of Winkelman for

������� improvements
to Golf Course Road and

������� Quarelli
Street������������������������������� $ 1,560,900

37. Distribute to the town of Superior for

������� Panther
Drive bridge design and

������� construction
at Queen Creek������������������� $ 2,486,700

38. Improve
State Route 260 within

������� Navajo
county��������������������������������� $ 4,250,000

39. Distribute
to the Navajo Nation for

������� Improvements
to N9402 Road near

������� Lupton
and Houck������������������������������ $10,000,000

40. Distribute
to Apache county for

������� State
Route 264 turn lane construction

������� into
the Ganado senior citizens center

������� and
veterans building development area�������� $ 538,700

41. Distribute
to the city of Tucson for

������� improvements
to the Drexel Road

������� bridge���������������������������������������� $15,000,000

42. Distribute
to Santa Cruz county for

������� improvements
to traffic interchange

������� at
Interstate 19 and Rio Rico Drive

������� and
traffic interchange at

������� Interstate
19 and Ruby Road������������������� $ 8,600,000

B. Within thirty days after the last day of each
calendar quarter, the department of transportation shall report to the joint
legislative budget committee staff the projected cost and status of the
projects for the appropriations made in subsection A of this section.

C. Before transferring monies between the projects
described in subsection A of this section, the department of transportation
shall submit a report for review by the joint committee on capital review.

D. Notwithstanding section 41-1252, Arizona Revised
Statutes, the appropriations made in subsection A of this section are not
subject to review by the joint committee on capital review.

Sec. 5. Laws 2024, chapter 211, section 6 is amended to read:

Sec
. 6.
Appropriation reduction; fiscal year 2021-2022;
appropriation; fiscal year 2028-2029; department of veterans' services;
veterans' home facility; site selection; review; exemption

A. Notwithstanding any
other law, the following amounts are reduced from appropriations made to the
following state agency in fiscal year 2021-2022 by Laws 2021, chapter 406,
section 29 for the following project:

B. DEPARTMENT OF
VETERANS' SERVICES

Veterans' home
facility ����������������������� $(25,000,000)

Fund source:

State general fund����������������������������� $(25,000,000)

C. The sum of
$25,000,000 is appropriated from the state general fund in fiscal year
2027-2028
2028-2029
to the
department of veterans' services to construct and establish a veterans' home
facility in the northwestern portion of this state.

D. The appropriation
made in subsection C of this section is intended to be this state's share of
the costs and is not subject to expenditure for any purpose unless the
department of veterans' services has irrevocable commitments from the United
States government to fund at least sixty-five percent of the total costs.

E. The department shall
submit the proposed site location in the northwestern portion of this state to
the Arizona veterans' service advisory commission established by section
41-602, Arizona Revised Statutes, for approval. The department shall
provide the commission a feasibility analysis of suitable sites to consider
when approving the site location.

F. Before spending the appropriation made in
subsection C of this section, the department of veterans' services shall submit
the scope, purpose and estimated cost of the capital improvements to the joint
committee on capital review for its review pursuant to section 41-1252, Arizona
Revised Statutes.

G. The appropriation made in subsection C of this
section is exempt from the provisions of section 35-190, Arizona Revised
Statutes, relating to lapsing of appropriations.

Sec. 6. Laws 2024, chapter 211, section 9, as amended by Laws 2025, chapter 235, section 3, is
amended to read:

Sec. 9.
Appropriation reductions; appropriation; department of
transportation; Riggs Road overpass; fiscal years 2020-2021, 2022-2023
and 2027-2028; fund balance transfer; intent

A. Notwithstanding
any other law, the following amounts are reduced from appropriations made to
the following state agency in fiscal year 2020-2021 by Laws 2021, chapter
406, section 33, as amended by Laws 2022, chapter 33, section 1 and Laws 2023,
chapter 135, section 1, for the following project:

B. DEPARTMENT OF TRANSPORTATION

Construct an
overpass at Riggs Road������������

and State Route 347�������������������� $(25,000,000)

Fund sources:

State general fund����������������������� $(25,000,000)

C. Notwithstanding
any other law, the following amounts are reduced from appropriations made to
the following state agency in fiscal year 2022-2023 by Laws 2022, chapter 309,
section 12, as amended by Laws 2023, chapter 135, section 5, for the following
project:

D. DEPARTMENT OF TRANSPORTATION

Construct an
overpass at Riggs Road������������

and State Route 347�������������������� $(24,000,000)

Fund sources:

State highway fund����������������������� $(24,000,000)

E. Notwithstanding any other law, on or before June
30, 2024, $24,000,000 from the state highway fund established by section
28-6991, Arizona Revised Statutes, is transferred to the state general fund for
the purposes of providing adequate support and maintenance for agencies of this
state. This amount reflects a portion of the 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.

F. The sum of $41,400,000 is appropriated from the
state general fund in fiscal year 2025-2026 to the department of transportation
for
design,
right-of-way acquisition, utility relocation,
natural resource recovery and construction of an overpass at riggs road and
State Route 347.

G. The sum
of $49,000,000 is appropriated from the state general fund in fiscal year
2027-2028 to the department of transportation
to construct

for design, right-of-way acquisition, utility
relocation, natural resource recovery and construction of
an overpass at
Riggs Road and

State Route 347. Consistent
with this advance appropriation, the legislature intends that
the
overpass at Riggs Road and State Route 347

the
appropriation made in this subsection
be funded in fiscal year 2027-2028.

Sec. 7. Laws 2024, chapter 211, section 22 is
amended to read:

Sec
. 22.
Supplemental appropriation; department of transportation; Riggs
Road overpass; fiscal year 2023-2024

A. In
addition to the appropriation made by Laws 2021, chapter 406, section 33, the
following amounts are appropriated to the following state agency in fiscal year
2023-2024 for the following project:

B. DEPARTMENT OF TRANSPORTATION

Final
design plan, right-of-way and

easements for
an overpass at
�

Riggs Road
and State Route 347

Design, right-of-way
ACQUISITION, utility

relocation, natural
resource recovery

and construction for
an overpass at

Riggs road and state
route 347�����������
����� $ 1,500,000

Fund sources:

State highway fund����������������������������� $ 1,500,000

Sec. 8. Laws 2024, chapter 211, section 29 is amended to read:

Sec
. 29.
Supplemental appropriation; department of transportation; State
Route 347; fiscal year 2023-2024

A. In
addition to the appropriation made by Laws 2023, chapter 135, section 10, the
following amounts are appropriated to the following state agency in fiscal year
2023-2024 for the following project:

B. DEPARTMENT OF TRANSPORTATION

Improve
intersection on State Route 347

at Casa Blanca Road and
Cement

Plant access

Design, right-of-way
acquisition, utility

relocation, natural
resource recovery

And construction to
improve state route 347,

including improving
the intersection on

state route 347 at
casa blanca road and

cement plant access,
and to construct

an overpass at riggs
road

and state route 347
���������������������������� $ 1,901,000

Fund sources:

State general fund����������������������������� $ 1,901,000

Sec. 9. Laws 2025, chapter 235, section 8 is amended to
read:

Sec. 8.
Appropriations; state
agencies and boards; capital projects

A. The amounts appropriated in this section are
appropriated for fiscal year 2025-2026 to be used by the applicable
agency or board for individual capital projects.

B. STATE DEPARTMENT OF CORRECTIONS

Replace fire, life alarm and suppression

system at the Yuma state prison������������������� $ 8,500,000

Fund source:

State general fund����������������������������� $ 8,500,000

C. ARIZONA EXPOSITION AND STATE FAIR BOARD

Capital improvements��������������������������� $ 3,815,100

Fund source:

Arizona exposition
and state fair fund��������� $ 3,815,100

D. ARIZONA GAME AND FISH DEPARTMENT

1. Dam maintenance���������������������������������� $ 150,000

2. Hatchery maintenance����������������������������� $ 400,000

3. Property maintenance����������������������������� $ 300,000

4. Dam repairs at Black Canyon Lake

and Fool Hollow Lake�������������������������� $ 6,850,000

5. Hatchery repairs��������������������������������� $ 4,700,000

Fund sources:

Capital improvement
fund����������������������� $ 850,000

Game and fish fund����������������������������� $ 11,550,000

E. DEPARTMENT OF HEALTH SERVICES

1. State hospital isolation valve installation������ $ 160,000

2. State hospital anti-ligature renovations��������� $ 695,000

3. State hospital perimeter detection

system replacement���������������������������� $ 83,000

Fund source:

Arizona state
hospital land fund��������������� $ 938,000

F. DEPARTMENT OF JUVENILE CORRECTIONS

1. Fire line booster pumps replacement�������������� $ 536,600

2. School door and lock replacements at

Adobe Mountain school������������������������� $ 303,000

3. School kitchen air unit replacements at

Adobe Mountain school������������������������� $ 641,000

Fund sources:

Criminal justice
enhancement fund�������������� $ 1,361,900

Department of
juvenile corrections

local cost sharing fund����������������������� $ 118,700

G. ARIZONA STATE PARKS BOARD

1. Capital improvements����������������������������� $ 3,633,300

2. Verde River state park construction�������������� $ 500,000

Fund sources:

State general fund����������������������������� $ 500,000

State parks revenue
fund����������������������� $ 3,633,300

H. ARIZONA PIONEERS' HOME

1. Capital improvements����������������������������� $ 470,400

2. Facility window and door replacements������������ $ 1,515,000

Fund source:

Miners' hospital
for miners with

disabilities land fund����������������������� $ 1,985,400

I. DEPARTMENT OF PUBLIC SAFETY

1. Replace office buildings in

Payson and Sanders���������������������������� $ 2,000,000

2. Upgrade electrical system at the department

headquarters in
Phoenix����������������������� $ 11,227,100

Fund source:

State general fund����������������������������� $ 13,227,100

J. DEPARTMENT OF TRANSPORTATION

1. Improvements to vehicle repair shop

in Avondale����������������������������������� $ 6,951,000

2. Construct new maintenance offices in

Little
Antelope and Gray Mountain������������� $ 6,861,000

3. Renovate Grand Canyon airport terminal����������� $ 850,300

Fund sources:

State highway fund����������������������������� $ 13,812,000

State aviation fund���������������������������� $ 850,300

The monies appropriated to the department of transportation to
renovate the Grand Canyon airport terminal revert to the state aviation fund
established by section 28-8202, Arizona Revised Statutes, on June 30,
2026
2028
if the department does not
receive a federal aviation administration grant for the project.

K. DEPARTMENT OF VETERANS' SERVICES

Replace HVAC at the Tucson veterans' home������������ $ 2,400,000

Fund source:

State general fund����������������������������� $ 2,400,000

The monies appropriated to the department of veterans' services
to replace the HVAC at the Tucson veterans' home revert to the state general
fund on June 30,
2026
2027
if the
department is not awarded a federal grant for the project. The
department may apply for federal grant monies for the HVAC replacement project
prior to review by the joint committee on capital review.

Sec. 10. Laws 2025, chapter 235, section 9 is amended to read:

Sec. 9.
Appropriations; department
of transportation; highway projects

A. The
following amounts are appropriated from the state general fund in fiscal year
2025-2026 to the department of transportation for the following highway
projects:

1.
Improve intersection on State Route 347

at Casa
Blanca Road and Cement

Plant
Access Road

Design,
right-of-way acquisition,

utility
relocation, natural resource

recovery
and construction to

improve
state route 347, including

improving
the intersection on state route

347 at
casa Blanca road and cement plant

access,
and to construct an overpass at

riggs
road and state route 347
������������������� $ 10,839,000

2.
Design to widen lanes along State

Route
347 between Interstate 10

and the
city of Maricopa

Design,
right-of-way acquisition,

utility
relocation, natural resource

recovery
and construction to

improve
state route 347, including

improving
the intersection on state route

347 at
casa Blanca road and cement plant

access,
and to construct an overpass at

riggs
road and state route 347
����������������� $ 1,500,000

3. Design an
additional right-hand

turn lane on
northbound State Route

87 and State Route 260
near Payson������������� $ 2,129,800

4. Distribute
to the city of Flagstaff to

design and construct a
traffic light

signal at the
intersection of Woody

Mountain Road and US
Route 66������������������ $ 1,900,000

The department of
transportation shall submit an intergovernmental agreement to the city of
Flagstaff to design and construct a traffic light signal at the intersection of
Woody Mountain Road and US Route 66 on or before September 15,
2025. If the city of Flagstaff agrees to the intergovernmental
agreement, the monies appropriated in this paragraph to design and construct a
traffic light signal at the intersection of Woody Mountain Road and US Route 66
shall be distributed to the city of Flagstaff on or before November 1, 2025.

5. Construct
safety improvements along

State
Route 70 from mile post 255 to

mile post 301 near San
Carlos Apache

reservation������������������������������������ $ 1,400,000

6. Distribute
to the city of Bullhead City for

Hancock Road
improvements���������������������� $ 1,500,000

The department of
transportation shall submit an intergovernmental agreement to the city of
Bullhead City for Hancock Road improvements on or before September 15,
2025. If the city of Bullhead City agrees to the intergovernmental
agreement, the monies appropriated in this paragraph for Hancock Road
improvements shall be distributed to the city of Bullhead City on or before
November 1, 2025.

7. Distribute
to Mohave county for Mountain

View Road improvements������������������������� $ 1,000,000

The department of
transportation shall submit an intergovernmental agreement to Mohave county for
Mountain View Road improvements on or before September 15, 2025. If
Mohave county agrees to the intergovernmental agreement, the monies appropriated
in this paragraph for Mountain View Road improvements shall be distributed to
Mohave county on or before November 1, 2025.

8. Distribute
to the Prescott regional airport

for infrastructure
supporting firefighting

aircraft��������������������������������������� $ 3,500,000

The department of
transportation shall submit an intergovernmental agreement to the Prescott
regional airport for infrastructure supporting firefighting aircraft on or
before September 15, 2025. If the Prescott regional airport agrees
to the intergovernmental agreement, the monies appropriated in this paragraph
for infrastructure supporting firefighting aircraft shall be distributed to the
Prescott regional airport on or before November 1, 2025.

9. Distribute
to the Prescott regional airport

for maintenance and
operations����������������� $ 500,000

The department of transportation shall submit an
intergovernmental agreement to the Prescott regional airport for maintenance
and operations on or before September 15, 2025. If the Prescott
regional airport agrees to the intergovernmental agreement, the monies
appropriated in this paragraph for maintenance and operations shall be
distributed to the Prescott regional airport on or before November 1, 2025.

10. Distribute to
Yuma county for bridge

replacement
project on Somerton Avenue

between
West County 10th Street and

West County 11th
Street����������������������� $ 1,300,000

The department of
transportation shall submit an intergovernmental agreement to Yuma county for
the bridge replacement project on Somerton Avenue between West County 10th
Street and West County 11th Street on or before September 15,
2025. If Yuma county agrees to the intergovernmental agreement, the
monies appropriated in this paragraph for the bridge replacement project on
Somerton Avenue between West County 10th Street and West County 11th Street
shall be distributed to Yuma county on or before November 1, 2025.

11. Install traffic control systems along

State Route 389
near Colorado City������������ $ 1,500,000

12. Distribute to the
city of Kingman for

Eastern
Street infrastructure improvements���� $ 1,500,000

The department of
transportation shall submit an intergovernmental agreement to the city of
Kingman for the Eastern Street infrastructure improvements project on or before
September 15, 2025. If the city of Kingman agrees to the
intergovernmental agreement, the monies appropriated in this paragraph for the
Eastern Street infrastructure improvements project shall be distributed to the
city of Kingman on or before November 1, 2025.

13. Distribute to the city of Nogales for

improvements to Frank Reed
Road���������������� $ 1,500,000

The department of
transportation shall submit an intergovernmental agreement to the city of
Nogales for improvements to Frank Reed Road on or before September 15,
2025. If the city of Nogales agrees to the intergovernmental
agreement, the monies appropriated in this paragraph for improvements to Frank
Reed Road shall be distributed to the city of Nogales on or before November 1,
2025.

14. Distribute to the city of Nogales for

improvements
to Industrial Park Road����������� $ 2,900,000

The
department of transportation shall submit an intergovernmental agreement to the
city of Nogales for improvements to Industrial Park Road on or before September
15, 2025. If the city of Nogales agrees to the intergovernmental
agreement, the monies appropriated in this paragraph for improvements to
Industrial Park Road shall be distributed to the city of Nogales on or before
November 1, 2025.

15. Distribute to the city of Nogales for

Improvements to La
Quinta Road����������������� $ 1,800,000

The department of transportation shall submit an
intergovernmental agreement to the city of Nogales for improvements to La
Quinta Road on or before September 15, 2025. If the city of Nogales
agrees to the intergovernmental agreement, the monies appropriated in this
paragraph for improvements to La Quinta Road shall be distributed to the city
of Nogales on or before November 1, 2025.

16. Distribute to the
city of Cottonwood for

Main
Street preservation and sidewalk

Improvements����������������������������������� $ 1,000,000

The department of
transportation shall submit an intergovernmental agreement to the city of
Cottonwood for Main Street preservation and sidewalk improvements on or before
September 15, 2025. If the city of Cottonwood agrees to the
intergovernmental agreement, the monies appropriated in this paragraph shall be
distributed to the city of Cottonwood on or before November 1, 2025.

17. Distribute to the city of Glendale for

the 75th Avenue
reconstruction project��������� $ 3,000,000

The department of
transportation shall submit an intergovernmental agreement to the city of
Glendale for the 75th Avenue reconstruction project on or before September 15,
2025. If the city of Glendale agrees to the intergovernmental
agreement, the monies appropriated in this paragraph shall be distributed to
the city of Glendale on or before November 1, 2025.

18. Design traffic interchange and connecting

arterial
roadways at State Route 303

and
155th Avenue������������������������������� $ 3,500,000

The legislature intends
that a local government or council of government entity contribute $900,000 in
matching monies to the project described in this paragraph. The
department may not expend any monies appropriated in this paragraph until the
department can confirm the matching commitment to the project.

19. Design the repaving of Olga Frontage Road

between mile post 366 and mile post 379�������� $ 850,000

Building
Renewal

Sec. 11.
Capital outlay
appropriations; major maintenance and repair of state buildings

A. Notwithstanding section
41-793.01, Arizona Revised Statutes, the amounts appropriated in this section
are appropriated for fiscal year 2026-2027 to be used by the applicable agency
for major maintenance and repair activities for state buildings in accordance
with title 41, chapter 4, article 7, Arizona Revised Statutes.

B. DEPARTMENT OF
ADMINISTRATION��������������������� $15,154,000

Fund
sources:

State general fund����������������������������� $10,000,000

Capital outlay stabilization fund�������������� $ 4,600,000

Arizona state hospital land fund��������������� $ 554,000

The department of administration shall
allocate the monies to state agencies for necessary building
renewal. If monies in the capital outlay stabilization fund
established by section 41-792.01, Arizona Revised Statutes, are insufficient to
fund the appropriation to the department of administration for building
renewal, the appropriation to the department of administration is reduced by
the difference between the amount appropriated to the department of
administration from the capital outlay stabilization fund and the balance in
the capital outlay stabilization fund.� Notwithstanding title 41, chapter 4,
article 7, Arizona Revised Statutes, the department of administration may use
monies appropriated for building renewal in fiscal year 2026-2027 for building
projects related to retrofitting facilities for space consolidation
initiatives.

C. STATE DEPARTMENT OF
CORRECTIONS������������������ $ 15,652,200

Fund
source:

Department of corrections building

renewal fund�������������������������������� $ 15,652,200

The state department of corrections
may not spend any of this appropriation on personal services or overhead
expenses related to managing the funded projects.

Notwithstanding section 41-797,
Arizona Revised Statutes, the state department of corrections may spend not
more than $4,570,000 of the appropriation made in this subsection to construct
new facilities to address capital needs as required by the court in the
Jensen
v. Thornell
inmate health care litigation.

D. ARIZONA GAME AND FISH
DEPARTMENT����������������� $ 1,932,900

Fund source:

Game and fish fund����������������������������� $ 1,932,900

E. ARIZONA STATE LOTTERY
COMMISSION����������������� $ 100,000

Fund source:

State lottery fund����������������������������� $ 100,000

F. DEPARTMENT OF
TRANSPORTATION��������������������� $ 24,574,100

Fund
sources:

State highway fund����������������������������� $ 24,158,500

State aviation fund���������������������������� $ 415,600

Individual
Projects

Sec.
12.

Appropriations; state agencies and boards; capital projects

A. The amounts appropriated
in this section are appropriated for fiscal year 2026-2027 to be used by
the applicable agency or board for individual capital projects.

B. ARIZONA EXPOSITION AND
STATE FAIR BOARD

Capital improvements��������������������������������� $ 3,905,900

Fund source:

Arizona
exposition and state fair fund��������� $ 3,905,900

C. ARIZONA GAME AND FISH
DEPARTMENT

1. Dam maintenance���������������������������������� $ 150,000

2. Hatchery maintenance����������������������������� $ 400,000

3. Hatchery
repairs��������������������������������� $ 11,000,000

Fund
sources:

Capital
improvement fund����������������������� $ 550,000

Game and
fish fund����������������������������� $ 11,000,000

D. ARIZONA STATE PARKS
BOARD

1. Capital improvements����������������������������� $ 3,552,200

2. Develop monitoring plan
and install markers

at Tonto
Natural Bridge state park������������� $ 200,000

Fund source:

State parks revenue
fund����������������������� $ 3,752,200

E. ARIZONA PIONEERS' HOME

Capital improvements��������������������������������� $ 482,000

Fund source:

Miners'
hospital for miners with

disabilities
land fund���������������������� $ 482,000

F. DEPARTMENT OF
TRANSPORTATION

1. Construct new materials
lab in Kingman����������� $ 5,038,000

2. Replace vehicle fueling
facilities in

Payson,
Phoenix and Mesa���������������������� $ 4,944,000

3. Design the renovation of
the traffic signal

and
lighting warehouse in Phoenix�������������� $ 611,000

Fund source:

State
highway fund����������������������������� $ 10,593,000

Department
of Transportation Statewide Highway Construction

Sec.
13.

Appropriation; department of transportation; statewide highway
construction; reports; exemption

A. The amount appropriated
in this section is appropriated for fiscal year 2026-2027 to plan and construct
state highways, including the national system of interstate highways within
this state, the state primary or secondary system, the county primary or
secondary system and urban rural routes, to acquire rights-of-way
and to provide for the costs of contracted field administration and field
engineering on construction projects and debt service payments on bonds issued
for highway construction.

B. DEPARTMENT OF
TRANSPORTATION��������������������� $432,663,000

Fund source:

State highway fund����������������������������� $432,663,000

Any balances and collections in the
state highway fund established by section 28-6991, Arizona Revised
Statutes, that exceed the specific amounts appropriated in the general
appropriations act and in this act are appropriated to the department of
transportation for the purposes provided in this section.

C. On or before November 1,
2026, the department of transportation shall report to the directors of the
joint legislative budget committee and the governor's office of strategic
planning and budgeting on its actual prior year, estimated current year and
upcoming budget year highway construction expenses from all fund sources,
including appropriated monies, federal monies, local agency monies, state
highway monies, bond proceeds and regional area road monies. The
report shall be in the same format as in the prior year unless the directors of
the joint legislative budget committee and the governor's office of strategic
planning and budgeting have approved modifications to the format.

D. On or before November 1,
2026, the department of transportation shall report capital outlay information
for fiscal years 2025-2026, 2026-2027 and 2027-2028 to the
directors of the joint legislative budget committee and the governor's office
of strategic planning and budgeting. This information must appear in the same
format as tables two, three and seven, as found in the fiscal year 2025-2026
appropriations report.

E. On or before November 1,
2026, the department of transportation shall report the department's estimated
outstanding debt principal balance at the end of fiscal year 2027-2028 and the
estimated debt service payment amount for each of fiscal years 2027-2028,
2028-2029, 2029-2030 and 2030-2031 to the directors of the
joint legislative budget committee and the governor's office of strategic
planning and budgeting. This report must include state highway fund
statewide construction bonds, Arizona highway user revenue fund bonds, Maricopa
association of governments and Pima association of governments controlled
access bonds, Maricopa regional area road fund bonds and grant anticipation
notes and is intended to be comparable to the information in the fiscal year
2025-2026 appropriations report.

F. Notwithstanding section
41-1252, Arizona Revised Statutes, the appropriation made in this section is
not subject to review by the joint committee on capital review.

Department
of Transportation Airport Planning and Development

Sec. 14.
Appropriation;
department of transportation; airport planning and development; report;
exemption

A. The amount appropriated
in this section is appropriated in fiscal year 2026-2027 to plan, construct,
develop and improve state, county, city or town airports as determined by the
state transportation board.

B. DEPARTMENT OF
TRANSPORTATION��������������������� $ 29,048,900

Fund source:

State aviation fund���������������������������� $ 29,048,900

Any balances and collections in the
state aviation fund established by section 28-8202, Arizona Revised
Statutes, that exceed the specific amounts appropriated in the general
appropriations act and in this act are appropriated to the department of
transportation in fiscal year 2026-2027 for the purposes provided in this
section.

C. On or before December
31, 2026, the department of transportation shall report to the joint
legislative budget committee staff on the status of all aviation grant awards
and aviation grant distributions.� The report must delineate projects by
individual airport and fiscal year, including any future year commitments.

D. Notwithstanding section
41-1252, Arizona Revised Statutes, the appropriation made in this section is
not subject to review by the joint committee on capital review.

Department
of Transportation Appropriation Reductions

Sec
. 15.
Appropriation reduction; department of transportation;
fiscal year 2022-2023

Notwithstanding any other law,
$(1,052,600) is reduced from appropriations made from the state general fund to
the department of transportation for U.S. Route 89 in fiscal year 2022-2023
by Laws 2022, chapter 309, section 9, as amended by Laws 2023, chapter 135,
section 4.

Sec
. 16.
Appropriation reduction; department of transportation;
fiscal year 2022-2023

Notwithstanding any other law, the
following amounts are reduced from appropriations made from the state highway
fund to the department of transportation in fiscal year 2022-2023 by Laws
2022, chapter 309, section 12, as amended by Laws 2023, chapter 135, section 5:

1. Repave
State Route 69 in Prescott Valley��������� $ (1,819,000)

2. Repave
State Route 95 in Mohave county����������� $ (6,052,200)

3. Repair
State Route 186 and State Business

Route
10 in Willcox���������������������������� $ (765,600)

Sec
. 17.
Fund balance transfer; state highway fund; fiscal year
2026-2027

A. Notwithstanding
any other law, from and after July 1, 2026 and on or before June 30, 2027,
$17,371,900 from the state highway fund established by section 28-6991,
Arizona Revised Statutes, is transferred to the state general fund for the
purposes of providing adequate support and maintenance for the agencies of this
state. This amount reflects a portion of the 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.

B. The
amount transferred in subsection A of this section consists of appropriation
reductions made in sections 2 and 16 of this act.

Sec. 18.
Department of
transportation; U.S. Route 191 pavement rehabilitation; transfer

A. On or before June 30,
2026, $2,500,000 is transferred from the state highway fund established by
section 28-6991, Arizona Revised Statutes, to the state general fund for
the support and maintenance of agencies of this state. This amount
reflects a portion of the 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.

B. The amount transferred
in subsection A of this section reflects the reduction of $2,500,000 made by
Laws 2022, chapter 309, section 8, as amended by Laws 2023, chapter 135,
section 3 and Laws 2025, chapter 235, section 1, from the state highway project
to rehabilitate pavement along U.S. Route 191 between Armory Road and East
Safford

Sec
. 19.
Department of transportation; Interstate 10; exemption

The
appropriations made in Laws 2025, chapter 235, section 4 to the department of
transportation for design and construction of additional vehicle lanes,
separated by a lighted median, on Interstate 10 between State Route 85 and
Citrus Road is exempt from the provisions of section 35-190, Arizona Revised
Statutes, relating to lapsing of appropriations.

Sec
. 20.
Use of appropriations

A. The department of
administration may spend up to five percent of the amounts appropriated to the
department in this act, excluding amounts to be distributed to nonstate
agencies, for expenditures for project management of building renewal and
capital projects. All other monies appropriated to the department in
this act may not be spent for personal services or employee-related
expenditures or for maintenance contracts on building components and equipment
without review by the joint committee on capital review.

B. Except as provided in
subsection A of this section, the monies appropriated in this act may not be
spent for personal services or employee-related expenditures of state
employees, excluding any services provided as part of the inmate construction
program for correctional facilities.

APPROVED BY THE GOVERNOR JUNE 13, 2026.

FILED IN THE OFFICE OF THE SECRETARY OF STATE JUNE 13, 2026.