SB1831 • 2026

2026-2027; general appropriations act

SB1831 - 2026-2027; general appropriations act

Budget Children Crime Education Elections Labor Taxes

Passed Legislature

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

Sponsor: David C. Farnsworth, John Kavanagh
Last action: 2026-05-04
Official status: Senate 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.

2026-2027; general appropriations act

SB1831 - 572R - Senate Fact Sheet Assigned to ATT�� AS VETOED ARIZONA STATE SENATE Fifty-Seventh Legislature, Second Regular Session VETOED FACT SHEET FOR H.B.

What This Bill Does

SB1831 - 572R - Senate Fact Sheet Assigned to ATT�� AS VETOED ARIZONA STATE SENATE Fifty-Seventh Legislature, Second Regular Session VETOED FACT SHEET FOR H.B.
4138/S.B.
1831 general appropriations act; 2026-2027.
Purpose Makes session law changes relating to general appropriations necessary to implement the FY 2027 state budget.

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

2026-05-04 Senate
Senate committee of the whole
2026-05-04 Senate
Senate majority caucus
2026-05-04 Senate
Senate minority caucus
2026-04-28 Senate
Senate second read
2026-04-27 Senate
Senate Rules: PFC
2026-04-27 Senate
Senate Appropriations, Transportation and Technology: DP
2026-04-27 Senate
Senate first read

Official Summary Text

SB1831 - 572R - Senate Fact Sheet

Assigned to
ATT������������������������������������������������������������������������������������������������������������������������������ AS
VETOED

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

VETOED

FACT SHEET FOR
H.B. 4138/S.B. 1831

general appropriations act; 2026-2027.

Purpose

Makes session law changes relating to general appropriations necessary to
implement the FY 2027 state budget.

Background

The Arizona Constitution prohibits substantive law from being included in
the general appropriations, capital outlay appropriations and supplemental
appropriations bills. However, it is often necessary to make statutory and
session law changes to effectuate the budget. Thus, separate bills called
budget reconciliation bills (BRBs) are introduced to enact these provisions.
Because BRBs contain substantive law changes, the Arizona Constitution provides
that they become effective on the general effective date, unless an emergency
clause is enacted.

The Joint Legislative Budget Committee (JLBC) Baseline includes an
estimate of spending necessary to meet requirements of statutory formulas and
other obligations (
JLBC
).

H.B. 4138 contains the budget provisions for changes relating to general
appropriations.

Provisions

FY
2027 Ongoing Fund and Major Footnote Changes

Arizona Department of
Administration (ADOA)

Major
Footnote Changes

1.

Requires
the $377,100 appropriated for corrections officer employer contributions to be
distributed to the following counties to fully cover the Corrections Officer
Retirement Plan employer contribution rate increase:

a)

$4,600 to Apache County;

b)

$10,100 to Cochise County;

c)

$14,100 to Coconino County;

d)

$7,700 to Gila County;

e)

$7,800 to Graham County;

f)

$4,400 to La Paz County;

g)

$134,400 to Maricopa County;

h)

$19,900 to Mohave County;

i)

$8,800 to Navajo County;

j)

$81,300 to Pima County;

k)

$15,100 to Pinal County;

l)

$6,600 to Santa Cruz County;

m)

$38,300
to Yavapai County; and

n)

$24,000 to Yuma County.

ADOA School Facilities
Division (SFD)

Ongoing General
Fund (GF) and Other Fund (OF) Changes

Summary of Changes

Source

Comments

FY 2027 Changes

Building Renewal Grants

GF

Onetime

183,000,000

New Construction Formula

GF

Prior year project savings
(onetime)

(20,200,000)

Major
Footnote Changes

2.

Allows SFD to use the unencumbered balance of $20,622,600 in the New
School Facilities Fund for facilities and land costs for school districts that
received SFD final approval by December 15, 2025.

Department of Child Safety
(DCS)�

Ongoing GF and
OF Changes

Summary of Changes

Source

Comments

FY 2027 Changes

Congregate Care

GF

Onetime

36,900,000

Extended Foster Care Coaching

GF

Onetime

8,200,000

Arizona Health Care Cost
Containment System (AHCCCS)

Ongoing GF and OF
Changes

Summary of Changes

Source

Comments

FY 2027 Changes

Formula

GF

(42,000,000)

Arizona Commerce Authority
(ACA)

Ongoing GF and
OF Changes

Summary of Changes

Source

Comments

FY 2027 Changes

Eliminate Annual Arizona
Competes Fund Deposit

GF

(500,000)

Arizona Department of
Corrections, Rehabilitation and Reentry (ADCRR)

Ongoing GF and
OF Changes

Summary of Changes

Source

Comments

FY 2027 Changes

4% Correctional Officer Stipend

GF

Onetime

21,400,000

Major
Footnote Changes

3.

Requires the Director of ADCRR to award a onetime stipend payment to
ADCRR employees that are employed by the ADCRR after July 3, 2026.

4.

Requires the onetime stipend payment to be equal to four percent of the
employee's annual salary level and the amount must be distributed evenly
throughout each pay period in FY 2027.

5.

Specifies that the amount appropriated for private prison per diem
includes $3,767,200 for the purpose of awarding a onetime correctional officer
stipend.

6.

Requires ADCRR to amend private prison bed contracts to increase per
diem rates in FY 2027 on a onetime basis to provide an amount sufficient for a onetime
four percent stipend to each correctional officer employed in a private prison
that contracts with the state.

Arizona Criminal Justice
Commission (ACJC)

Ongoing GF and
OF Changes

Summary of Changes

Source

Comments

FY 2027 Changes

Victims of Crime Act Federal
Funds Backfill

GF

Onetime

2,250,000

Arizona
State Schools for the Deaf and the Blind (ASDB)

Major Footnote
Changes

7.

Requires ASDB, by September 1, 2026, to submit a report to JLBC that
details the schools' budgetary and operational changes since FY 2026.

8.

Requires the report to include any budgetary or operational changes
relating to the ASDB's closure of the Tucson campus, the termination of the
residential program, the relocation of campus-based staff and any plans for the
disposition of land owned by ASDB at the Tucson campus.

Department
of Economic Security (DES)

Ongoing GF and
OF Changes

Summary of Changes

Source

Comments

FY 2027 Changes

Supplemental Nutrition
Assistance Program Benefit Match Rate � Assume Error Rate Below 6%

GF

FY
2028

FY
2029

(138,700,000)

(185,000,000)

Victims of Crime Act Federal
Funds Backfill

GF

Onetime

11,500,000

Child Care Funding

GF

Onetime

44,800,000

Developmental Disabilities High
Need Clients

GF

Onetime

17,900,000

Arizona
Department of Education (ADE)

Ongoing GF and
OF Changes

Summary of Changes

Source

Comments

FY 2027 Changes

Formula

GF

Declining Public School
Enrollment

(92,100,000)

3
rd
Year Low Income
Weight Increase

GF

Onetime

37,000,000

3
rd
Year Additional
Assistance Increase

GF

Onetime

29,000,000

No School Meal Copay (130 � 185%
FPL Households)

GF

Onetime

2,000,000

Major
Footnote Changes

9.

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.

10.

Requires ADE to distribute
monies for district additional assistance and charter additional assistance on
a proportional basis based on the district's or charter's additional assistance
funding received in FY 2026.

11.

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.

12.

Requires ADE to distribute
the appropriated amount for onetime Free and Reduced-Price Lunch (FRPL) group B
weight supplement to school districts and charter schools on a pro rata basis
using the weighted student count for FRPL students for the school district or
charter school.

13.

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.

14.

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.

15.

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.

A
rizona Department of Juvenile Corrections (ADJC)

Ongoing GF and
OF Changes

Summary of Changes

Source

Comments

FY 2027 Changes

4% Youth Correctional Officer
Stipend

GF

Onetime

500,000

Department of Public Safety
(DPS)

Ongoing GF and
OF Changes

Summary of Changes

Source

Comments

FY 2027 Changes

Victims of Crime Act Federal
Funds Backfill

GF

Onetime

9,300,000

Secretary of State (SOS)

Major Footnote
Changes

16.

Requires
the SOS, no later than 15 days after the last of day of each month, to report
to the Director of JLBC and the Director of the Governor's Office of Strategic
Planning and Budgeting (OSPB) on the previous month's expenditures and fiscal
year-to-date expenditures for election services.

17.

Requires
the report to include the actual expenditures by purpose, including the costs
associated with logic and accuracy testing, the statewide election publicity
pamphlet, initiative and referendum processing, petition signature
reimbursements and sample ballot requirements.

Office of Tourism

Ongoing GF and
OF Changes

Summary of Changes

Source

Comments

FY 2027 Changes

Eliminate Agency GF
Appropriation

GF

(8,200,000)

Universities

Major
Footnote Changes

18.

Declares
the Legislature's intent that the School of Civic and Economic Thought and
Leadership at Arizona State University, the Economic Policy Institute at
Northern Arizona University and the Center for the Philosophy of Freedom at the
University of Arizona maintain the same funding level as FY 2026, except the
universities may allocate the lump sum reduction of up to 5 percent prescribed
by the FY 2027 General Appropriations Act.

FY 2020 Appropriation
Adjustment

GF
and OF

Agency

Fund

Amount

ADE � High Quality Teacher Professional Development
Pilot Program

GF

(344,300)

FY
2021 Appropriation Adjustment

GF
and OF

Agency

Fund

Amount

ADE � High Quality Teacher Professional Development
Pilot Program

GF

(400,000)

FY
2022 Appropriation Adjustments

GF
and OF

Agency

Fund

Amount

ADE � High Quality Teacher Professional Development
Pilot Program

GF

(400,000)

ADOA � Retirement of Defeasance of Financing
Agreements

GF

(5,037,800)

FY
2023 Appropriation Adjustments

GF
and OF

Agency

Fund

Amount

Arizona Department of Veteran Services � Tribal
Ceremonies

GF

(1,000,000)

FY
2024 Appropriation Adjustments

GF
and OF

Agency

Fund

Amount

ADCRR � Transitional and Reentry Housing

GF

(3,733,300)

DPS � Civil Air Patrol Infrastructure

GF

(2,300,000)

DPS � Major Incident Division

GF

(1,323,200)

FY 2025
Appropriation Adjustments

GF
and OF

Agency

Fund

Amount

AHCCCS � Graduate Medical Education

GF

(4,298,100)

DPS � Major Incident Division

GF

(6,433,200)

FY 2026 Supplemental
Appropriations and Adjustments

GF
and OF

Agency

Fund

Amount

AHCCCS - Formula

GF

64,528,400

AHCCCS � Formula � Expenditure Authority

OF

340,175,800

DES � Formula

GF

96,818,700

DES � Formula � Developmental Disabilities Expenditure
Authority

OF

241,928,300

DPS � Operating Expenditures � Exempt from Lapsing

OF

4,750,000

SOS � Special Election Expenses

GF

(1,215,200)

ADE � Basic State Aid (BSA) Formula

GF

(31,859,000)

19.

Declares the Legislature's
intent that ADOA not enter into any agreements in FY 2026 to pay for any
federal reimbursements related to excess balances in the Special Employee
Health Insurance Trust Fund unless the proposed agreements have been reviewed
by JLBC.

DES

20.

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

21.

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

22.

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.

23.

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

FY 2027 Lump Sum
Reductions

24.

Reduces the following budget
units' FY 2027 lump sum appropriation by the following amounts:

Agency

Amount

ADOA

(967,200)

ADOA � SFD

(78,200)

Office of Administrative Hearings

(46,300)

Arizona Department of Agriculture

(763,400)

AHCCCS

(10,576,400)

Attorney General (AG)

(1,292,900)

State Board for Charter Schools

(134,900)

ACA

(127,500)

Community Colleges � Rural Aid � Applied to Each County
Allocation Proportionately

(700,000)

Community Colleges � Rural County Reimbursement
Subsidy

(54,100)

Community Colleges � Dine College Remedial Education

(50,000)

Community Colleges � Additional Gila Workforce
Development Aid

(10,000)

Arizona Corporation Commission

(37,000)

ACJC

(230,000)

Office of Economic Opportunity

(24,800)

DES

(9,909,100)

State Board of Education

(165,900)

ADE

(7,120,400)

Department of Emergency and Military Affairs

(564,500)

State Board of Equalization

(35,600)

Board of Executive Clemency

(72,900)

Department of Forestry and Fire Management

(2,170,400)

Arizona Department of Gaming

(310,200)

Office of the Governor

(456,400)

Governor's Office of Strategic Planning and Budgeting

(138,300)

Department of Health Services (DHS)

(5,717,600)

Arizona Historical Society

(142,500)

Prescott Historical Society

(47,200)

Arizona Department of Homeland Security

(500,000)

Industrial Commission of Arizona

(4,200)

Department of Insurance and Financial Institutions

(299,400)

Judiciary � Supreme Court

(1,273,900)

Judiciary � Court of Appeals

(688,900)

Judiciary � Superior Court

(4,210,600)

ADJC

(1,465,500)

Arizona State Land Department

(579,700)

Legislature � Auditor General

(1,291,100)

Legislature � House of Representatives

(907,800)

Legislature � JLBC

(148,200)

Legislature � Legislative Council

(452,900)

Legislature � Ombudsman-Citizens Aide Office

(77,000)

Legislature � Senate

(806,500)

State Mine Inspector

(107,900)

State Natural Resource Conservation Board

(19,500)

Arizona Navigable Stream Adjudication Commission

(6,700)

State Real Estate Department

(150,200)

Arizona Department of Revenue (ADOR)

(2,862,000)

SOS

(692,200)

State Board of Tax Appeals

(15,300)

State Treasurer

(85,800)

Governor's Office on Tribal Relations

(3,200)

Arizona Board of Regents (ABOR)

(2,733,000)

Arizona State University

(16,142,600)

Northern Arizona University

(5,561,700)

University of Arizona � Main Campus

(10,670,800)

University of Arizona � Health Sciences Center

(3,771,400)

Arizona Department of Veterans' Services

(569,800)

Arizona Department of Water Resources

(1,199,500)

25.

Prohibits the universities
under the jurisdiction of the ABOR from reducing monies allocated from
operating lump sum appropriations to the Arizona State University School of
Civic and Economic Though and Leadership, the Northern Arizona University
Economic Policy Institute and the University of Arizona Center for the
Philosophy of Freedom by more than 5 percent of the total amount allocated to
the school, institute or center.

Debt Service Payments

26.

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

Fund Transfers

27.

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

Fund

Comments

Amount

ADOA � Risk Management Revolving Fund

24,300,000

ADOA � Construction Insurance Fund

8,500,000

AG � Consumer Protection-Consumer Fraud Revolving Fund

3,000,000

ACA � Arizona Competes Fund

63,300,000

Arizona Corporation Commission � Securities Regulator
and Enforcement Fund

16,900,000

Arizona Corporation Commission � Utility Regulation
Revolving Fund

6,800,000

ADCRR � Prison Construction and Operations Fund

10,000,000

ADCRR � Transition Program Fund

2,200,000

Arizona Department of Environmental Quality (ADEQ) �
Underground Storage Tank Revolving Fund

8,700,000

ADEQ � Recycling Fund

4,000,000

Arizona Game and Fish Department (AZGFD) � Heritage
Land Acquisition Fund

10,000,000

AZGFD � Watercraft Licensing Fund

3,400,000

DHS � Health Services Lottery Fund

5,100,000

Arizona Department of Housing � Housing Trust Fund

14,400,000

Industrial Commission of Arizona � Administrative Fund

6,700,000

Department of Insurance and Financial Institutions �
Automobile Theft Authority Fund

5,800,000

Arizona State Land Department � Trust Land Management
Fund

21,200,000

Judiciary � Supreme Court � Judicial Collection
Enhancement Fund

9,600,000

Arizona State Parks Board (ASPB) � State Parks Revenue
Fund

11,900,000

ASPB � Off-Highway Vehicle Recreation Fund

10,000,000

ASPB � Arizona State Parks Heritage Fund

2,600,000

ABOR � Technology and Research Initiative Fund

24,900,000

ADOR � Administrative Fund

5,000,000

Arizona Department of Transportation (ADOT) � State
Match Advantage for Rural Transportation Fund

26,300,000

ADOT � Motor Vehicle Liability Insurance Enforcement
Fund

16,200,000

ADOT � State Vehicle Replacement Fund

5,000,000

Water Infrastructure Finance Authority � Water Supply
Development

30,000,000

28.

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

29.

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

30.

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.

31.

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 ADCRR Opioid Remediation Fund.

32.

Requires ADCRR 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.

33.

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

34.

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
ADCRR Opioid Remediation Fund.

35.

Exempts the AG monies from
lapsing.

36.

Continues to defer
$800,727,700 in BSA and additional state aid (ASA) payments from ADE in FY 2026
until after June 30, 2027, but no later than July 12, 2027, and excludes
charter schools and school districts with a student count of less than 4,000
pupils from the deferral.

37.

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

38.

Requires ADE to disburse the
FY 2028 appropriations of $800,727,700 to the counties for the school districts
between July 1, 2027, and July 12, 2027, in amounts equal to the reductions in
the apportionment of BSA and ASA.

39.

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.

Additional FY
2027 Appropriations and Adjustments

Automation
Projects Fund (APF)

40.

Appropriates
the following amounts in FY 2027 from the APF subaccounts to ADOA for the
following automation and information technology project:

Project

Subaccount

Amount

ADOR Integrated Tax System Modernization

ADOR Subaccount

19,756,800

12,538,400 (GF)

7,218,400 (OF)

Statewide
Operating Adjustments

GF and OF

Area of Adjustment

GF

OF

Total

Employer Health Insurance Contribution Reduction

(194,788,900)

(45,876,400)

(240,665,300)

Employer Health Insurance Contribution Increase

228,363,200

55,000,000

283,363,200

State Fleet Operations

(5,205,900)

10,000

(5,195,900)

State Fleet Replacement

(2,422,400)

(2,700,000)

(5,122,400)

Agency Risk Management

(19,999,600)

(5,888,700)

(25,888,300)

Agency Retirement

(3,135,800)

(271,500)

(3,407,300)

41.

Prescribes statewide
adjustments procedures and instructions.

42.

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

Miscellaneous

43.

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.

44.

Contains
other reporting requirements.

45.

Defines terms.

46.

Becomes
effective on the signature of the Governor.

Governor's Veto Message

The Governor
indicates in her
veto
message

that H.B. 4138, and this version of
the FY 2027 state budget as a whole, would cause Arizona to default on its debt
obligations, endanger vulnerable children, cut public safety funding and
provide tax breaks for billionaires, data centers and special interests. The Governor
outlines her specific concerns, including cuts to funding for specified
agencies and programs, and invites the Legislature to return to the negotiating
table.

House Action
����������������������������������������������������������
Senate
Action

APPROP�������� 4/28/26����� DP������ 11-7-0-0������������ ATT���������������� 4/28/26����� DP������������� 6-4-0�������������������������

3
rd

Read��������� 4/29/26����������������� 33-21-6�������������� 3
rd

Read��������� 5/4/26��������������������������� 16-12-2

���������
(H.B. 4138 was substituted for S.B.1831 on 3
rd

Read)

Vetoed by the Governor on 5/5/26

Prepared by Senate Research

May 7, 2026

LMM/ci

Current Bill Text

Read the full stored bill text

SB1831 - 572R - S Ver

Senate Engrossed

2026-2027; general
appropriations act

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1831

AN
ACT

Appropriating monies.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1.
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.
2.
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.
3.
ACUPUNCTURE
BOARD OF EXAMINERS

���������������������������������������������������
2026-27

FTE positions�������������������������������� 1.0

Lump sum appropriation ������������� $ 217,000

Fund sources:

Acupuncture board of examiners

fund
���������������������������
$ 217,000

Sec.
4.
DEPARTMENT OF
ADMINISTRATION

���������������������������������������������������
2026-27

FTE
positions������������������������������ 549.1

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��������������������������� 93,864,300

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

Government transformation office���� 2,093,800

Elected officials'
retirement plan

offset������������������������������ 3,000,000

Small county assistance����������� 7,650,700

County support for corrections

officer employer contributions���
377,100

Total
appropriation � department of

administration���������������������� $297,824,500

Fund sources:

State general fund������������������ $ 20,435,300

Air quality fund������������������������� 930,300

Arizona financial information

system
collections fund������������
12,134,200

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

Personnel division fund��������������� 15,728,300

Risk management revolving fund������� 145,740,800

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������������������ 9,012,600

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 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

Sec.
5.
DEPARTMENT OF
ADMINISTRATION, DIVISION OF SCHOOL FACILITIES

���������������������������������������������������
2026-27

FTE
positions
�������������������������������
17.0

Operating
lump sum appropriation���� $ 1,624,700

New school facilities debt service����� 9,938,100

Building renewal grants deposit
������
199,967,900

New school facilities
���������������
18,646,800

Total appropriation � department of

administration, division

of school facilities
����������������
$230,177,500

Fund
sources:

State general fund������������������ $230,177,500

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 the unencumbered balance of $20,622,600 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.

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.

Sec.
6.
DEPARTMENT OF
ADMINISTRATION, AUTOMATION PROJECTS

���������������������������������������������������
2026-27

Department
of revenue integrated

tax
system modernization���������� $19,756,800

Fund
sources:

Department of revenue subaccount����� $19,756,800

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 $12,538,400 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 $7,218,400 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 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 following amounts appropriated
from the health and human services information system subaccount in the
automation projects fund established pursuant to section 41-714, Arizona
Revised Statutes, to the department of administration by Laws 2023, chapter
133, section 113, as amended by Laws 2024, chapter 209, section 11, are exempt
from the provisions of section 35-190, Arizona Revised Statutes, relating
to the lapsing of appropriations, until June 30, 2026:

1. $2,814,600 for the
development of several modules associated with the medicaid enterprise system
mainframe replacement.

2. $1,685,400 for medicaid
enterprise system fraud and waste abuse prevention enhancements.

3. $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.

Sec.
7.
OFFICE OF
ADMINISTRATIVE HEARINGS

���������������������������������������������������
2026-27

FTE
positions������������������������������� 12.0

Lump sum
appropriation
��������������
$ 985,200

Fund sources:

State general fund������������������ $ 985,200

Sec.
8.
ARIZONA
DEPARTMENT OF AGRICULTURE

���������������������������������������������������
2026-27

FTE positions������������������������������ 215.4

Operating lump sum appropriation���� $ 17,249,500

Agricultural employment relations

board���������������������������������� 23,300

Animal
damage control��������������������� 65,000

Red
imported fire ant control������������� 23,200

Agricultural
consulting and

training������������������������
135,700

Total
appropriation � Arizona department

of agriculture��������������������� $
17,496,700

Fund
sources:

State
general fund����������������� $
15,866,400

Air quality fund����������������������� 1,630,300

In addition to any other
appropriations made in fiscal year 2026-2027, the Arizona department of
agriculture may spend up to $250,000 from the commercial feed trust fund
established by section 3-2607, Arizona Revised Statutes, in fiscal year
2026-2027 for expenses related to the avian influenza outbreak.

Sec.
9.

ARIZONA
HEALTH CARE COST CONTAINMENT SYSTEM

���������������������������������������������������
2026-27

FTE positions���������������������������� 2,459.3

Operating lump sum appropriation���� $
138,476,000

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

Medicaid
services

Traditional medicaid services�����
10,307,034,300

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

Nonmedicaid
behavioral health services

Crisis services����������������������� 16,391,300

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�������������
16,454,300

Graduate
medical education�����������
569,176,800

Targeted investments program
�����

56,000,000

Total
appropriation and expenditure

authority � Arizona health���������������������

care cost containment system����� $
22,798,839,000

Fund
sources:

State general fund��������������� $ 2,900,224,700

Budget
neutrality compliance fund������
5,304,500

Children's health insurance

program fund����������������������
193,430,100

Prescription drug rebate

fund � state���������������������
289,832,900

Seriously mentally ill

housing trust
fund��������������������
217,700

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�������������
19,342,628,800

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.

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.

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.

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.
10.
BOARD OF
ATHLETIC TRAINING

���������������������������������������������������
2026-27

FTE positions�������������������������������� 1.5

Lump sum appropriation�������������� $
166,000

Fund sources:

Athletic training fund�������������� $
166,000

Sec.
11.
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

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������������������� $ 89,604,400

Fund
sources:

State
general fund������������������ $ 27,607,600

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

Interagency service agreements
fund��� 17,635,600

Internet crimes against children

enforcement fund���������������������� 900,000

Risk management revolving fund�������� 12,855,300

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.

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.
12.
BARBERING AND
COSMETOLOGY BOARD

���������������������������������������������������
2026-27

FTE positions������������������������������� 33.5

Lump sum appropriation
��������������
$ 3,027,300

Fund sources:

Barbering and cosmetology fund������ $ 3,027,300

Sec.
13.
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.
14.
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.
15.
DEPARTMENT OF
CHILD SAFETY

���������������������������������������������������
2026-27

FTE
positions���������������������������� 3,283.1

Operating lump sum appropriation���� $163,249,000

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������������������ 24,787,200

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���������������������� $1,354,483,600

Fund sources:

State general fund���������������� $ 495,571,300

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��� 454,496,300

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.

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 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.
16.
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

Sec.
17.
ARIZONA COMMERCE
AUTHORITY

���������������������������������������������������
2026-27

FTE positions������������������������������ 100.0

Operating lump sum appropriation���� $ 10,000,000

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��������������������������� $ 12,550,000

Fund
sources:

State general fund������������������ $ 12,550,000

Pursuant
to section 43-409, Arizona Revised Statutes, of the amounts listed above,
$10,000,000 of the state general fund withholding tax revenues is allocated in
fiscal year 2026-2027 to the Arizona commerce authority fund established
by section 41-1506, 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. 18.
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.
19.
REGISTRAR OF
CONTRACTORS

���������������������������������������������������
2026-27

FTE
positions������������������������������ 105.6

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.
20.
CORPORATION
COMMISSION

���������������������������������������������������
2026-27

FTE
positions������������������������������ 302.9

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:

State general fund����������������� $ 792,700

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��������������������
7,490,400

Utility regulation revolving fund�����
21,579,800

Sec.
21.
STATE DEPARTMENT
OF CORRECTIONS

���������������������������������������������������
2026-27

FTE positions���������������������������� 9,569.0

Operating lump sum appropriation�� $ 836,651,200

Overtime and compensatory time�������� 92,320,300

Private prison per diem������������� 273,126,400

Community corrections����������������� 24,534,400

Inmate health care contracted

services����������������������� 380,978,900

Noncontract medication���������������� 15,000,000

Injunction-related IT
upgrades����
2,400,000

Total appropriation � state department

of
corrections ����������������������� $1,625,011,200

Fund sources:

State general fund���������������� $1,565,260,900

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��������������������������� 3,733,100

Corrections fund���������������������� 33,621,700

Transition program fund���������������� 2,400,300

Prison construction and

operations fund�������������������� 12,500,100

Inmate store proceeds fund������������� 2,764,100

Of the amount appropriated in the
operating lump sum, $413,542,600 is designated for personal services and
$250,095,400 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 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.

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, 2026 and
July 15, 2027, 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 year-to-date. 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 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, 2026 and
February 1, 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.� 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, 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 report actual fiscal year 2025-2026, estimated fiscal year
2026-2027 and requested fiscal year 2027-2028 expenditures as delineated in the
prior year when the department submits its fiscal year 2027-2028 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 amount appropriated in the private
prison per diem line item includes $3,767,200 for the purpose of awarding a
onetime correctional officer stipend. The state department of
corrections shall amend private prison bed contracts to increase per diem rates
in fiscal year 2026-2027 on a onetime basis to provide an amount
sufficient for a onetime four percent stipend to each correctional officer
employed in a private prison that contracts with this state.

The director
of the state department of corrections shall award a onetime stipend payment to
an employee who is employed by the agency from and after July 3,
2026. The payment shall be equal to four percent of the employee's
annual salary level and the amount shall be distributed evenly throughout each
pay period in fiscal year 2026-2027.

Sec.
22.
ARIZONA CRIMINAL
JUSTICE COMMISSION

���������������������������������������������������
2026-27

FTE positions������������������������������� 11.0

Operating lump sum appropriation
����
$ 1,472,900

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

Victim compensation and assistance
��
8,469,700

Total
appropriation � Arizona criminal

justice commission
������������������
$ 14,216,300

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

Victim compensation and assistance

|| fund
��������������������������������
4,243,900

All victim compensation and assistance
fund monies received by the Arizona criminal justice commission in excess of
$4,243,900 in fiscal year 2026-2027 are appropriated to the crime victims
program. Before spending any victim compensation and assistance fund
monies in excess of $4,243,900 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.
23.
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

Total
appropriation � Arizona state schools

for the deaf and the blind���������� $ 53,846,900

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

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.

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 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 the 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.
24.
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.
25.
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.
26.
OFFICE OF
ECONOMIC OPPORTUNITY

���������������������������������������������������
2026-27

FTE positions�������������������������������� 5.0

Lump sum appropriation�������������� $ 531,900

Fund sources:

State general fund������������������ $
531,900

Sec.
27.
DEPARTMENT OF
ECONOMIC SECURITY

���������������������������������������������������
2026-27

FTE positions���������������������������� 5,215.8

Operating lump sum appropriation���� $413,323,300

Administration

Attorney general legal services������� 13,099,900

Aging and adult services

Adult services������������������������
10,731,900

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

Benefits and medical eligibility

Supplemental nutrition assistance

program �
benefits������������� 1,957,041,500

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������������
3,694,025,700

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

State-funded long-term care

services���������������������������
46,084,300

Employment
and rehabilitation services

JOBS���������������������������������� 11,005,600

Child
care subsidy������������������� 261,837,300

Independent
living rehabilitation

services���������������������������� 1,289,400

Rehabilitation services���������������� 7,249,100

Workforce innovation

and opportunity
act

services�����������������������
85,824,200

Total
appropriation and expenditure

authority � department of

economic security����������������� $
9,887,989,900

Fund sources:

State general fund���������������� $
2,154,006,800

Federal child care and

development fund
block grant������ 229,994,900

Federal temporary assistance for

needy families
block grant��������� 66,561,100

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����������������������� 5,244,823,300

Supplemental nutrition assistance���������������

program fund
expenditure

authority����������������������� 1,994,341,500

Aging and adult services

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.

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.

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
expenditures. 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.
28.
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.
29.
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���������������� 1,105,372,400

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

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������������� $9,089,939,600

Fund
sources:

State
general fund���������������� $
7,648,789,900

Department
of education

empowerment
scholarship

account fund�������������������������� 358,900

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

Expenditure authority�������������� 1,345,678,600

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's additional assistance funding each district in this state receives
in fiscal year 2026-2027 and increase the budget limits pursuant to
section 15-947, Arizona Revised Statutes, accordingly. A
school district may budget the monies received from the onetime district
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 pursuant to section 15-947, Arizona Revised Statutes,
accordingly. 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
distribute 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 10, 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 10,
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 sections 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.

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.
30.
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.

Sec. 31.
DEPARTMENT OF
ENVIRONMENTAL QUALITY

���������������������������������������������������
2026-27

FTE positions������������������������������
360.7

Operating lump sum appropriation��� $
69,937,300

Safe drinking water program������������ 2,027,700

Emissions control contractor

payment�������������������������
28,894,500

Total appropriation � department of

environmental quality�������������� $
100,859,500

Fund sources:

Air quality fund������������������� $ 6,650,200

Emergency response fund������������������ 132,800

Emissions inspection fund������������� 33,105,500

Hazardous waste management fund�������� 2,689,300

Indirect cost fund�������������������� 19,603,200

Permit administration fund������������� 7,165,200

Recycling
fund������������������������� 3,542,100

Safe
drinking water program

fund�������������������������������� 2,027,700

Solid
waste fee fund������������������� 3,907,600

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 $7,165,200 in
fiscal year 2026-2027 are appropriated to the department. Before
spending permit administration fund monies in excess of $7,165,200 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.
32.
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.
33.
STATE BOARD OF
EQUALIZATION

���������������������������������������������������
2026-27

FTE positions�������������������������������� 7.0

Lump sum appropriation������������� $ 734,700

Fund
sources:

State general fund����������������� $ 734,700

Sec.
34.
BOARD OF
EXECUTIVE CLEMENCY

���������������������������������������������������
2026-27

FTE positions������������������������������� 15.5

Lump sum appropriation������������� $ 1,482,600

Fund sources:

State general fund����������������� $ 1,482,600

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.
35.
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.

Sec.
36.
ARIZONA
DEPARTMENT OF FORESTRY AND FIRE MANAGEMENT

�����������������������������������������
2026-27

FTE positions������������������������������ 235.5

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������������������������� 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���� $ 43,222,200

Fund sources:

State general fund����������������� $ 43,222,200

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.
37.
ARIZONA GAME AND
FISH DEPARTMENT

���������������������������������������������������
2026-27

FTE
positions������������������������������ 273.5

Operating
lump sum appropriation��� $ 45,213,400

Pittman-Robertson/Dingell-Johnson

act�����������������������������
3,058,000

Total
appropriation � Arizona game and fish

department
�������������������������
$
48,271,400

Fund sources:

Capital improvement fund����������� $ 1,001,200

Game and fish fund�������������������� 41,797,800

Wildlife endowment fund������������������� 16,200

Watercraft licensing fund�������������� 5,060,100

Game, nongame, fish and

endangered
species fund���������������
396,100

Sec.
38.
DEPARTMENT OF
GAMING

���������������������������������������������������
2026-27

FTE
positions������������������������������ 155.8

Operating
lump sum appropriation��� $ 13,740,100

Arizona breeders' award������������������ 250,000

Casino operations certification�������� 2,346,100

County fairs livestock and

agriculture
promotion��������������� 6,029,500

Division of racing��������������������� 2,772,400

Contract veterinarian�������������������� 175,000

Horseracing integrity and safety

act assessment���������������������� 1,355,100

Problem gambling������������������� 3,320,000

Total
appropriation � department of gaming�� $ 29,988,200

Fund
sources:

State
general fund����������������� $ 6,204,500

Fantasy
sports contest fund�������������� 150,100

Tribal-state compact fund�������������� 2,346,100

Arizona benefits fund����������������� 16,610,000

State lottery fund����������������������� 300,000

Racing regulation fund����������������� 3,977,800

Racing regulation fund � unarmed

combat
subaccount��������������������� 399,700

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. 39.
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.
40.
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.
41.
DEPARTMENT OF
HEALTH SERVICES

���������������������������������������������������
2026-27

FTE
positions���������������������������� 1,167.5

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

County tuberculosis provider

care and control���������������������� 590,700

Folic acid program����������������������� 400,000

Funeral services regulation�������������� 460,600

High-risk perinatal services����������� 2,343,400

Newborn
screening program ������������ 15,212,100

Nonrenal disease management�������������� 198,000

Nursing care special projects������������ 200,000

Poison control centers funding����������� 990,000

Renal dental care and nutrition

supplements��������������������������� 300,000

Renal transplant drugs������������������� 183,000

Arizona state hospital

Arizona state hospital �

operating�������������������������� 79,008,600

Arizona state hospital �

restoration to
competency������������� 900,000

Arizona state hospital �

sexually violent
persons���������
11,459,900

Total
appropriation � department of����������������������

health services��������������������� $188,234,400

Fund sources:���������������������������������������

State general fund������������������ $
118,668,100

Arizona state hospital fund������������ 3,395,700

Arizona state hospital land fund��������� 650,000

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�������� 23,391,400

Newborn screening program fund�������� 15,631,200

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.

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.
42.
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

Sec.
43.
PRESCOTT
HISTORICAL SOCIETY

���������������������������������������������������
2026-27

FTE
positions������������������������������� 13.0

Lump sum
appropriation�������������� $ 1,074,300

Fund
sources:

State general fund������������������ $
1,074,300

Sec.
44.
ARIZONA
DEPARTMENT OF HOMELAND SECURITY

���������������������������������������������������
2026-27

FTE
positions������������������������������� 26.0

Statewide
information security

and
privacy operations and

controls������������������������� $ 11,145,200

Statewide cybersecurity grants������
10,000,000

Total appropriation � Arizona
department of

homeland security������������������� $ 21,145,200

Fund
sources:

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

Information
technology fund��������� 11,145,200

Of the amount
appropriated for statewide cybersecurity grants, the Arizona department of
homeland security may spend up to $500,000 for grant administration
.

Sec.
45.

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. 46.
ARIZONA DEPARTMENT
OF HOUSING

���������������������������������������������������
2026-27

FTE positions�������������������������������� 3.0

Lump sum appropriation�������������� $ 360,700

Fund
sources:

Housing trust fund������������������ $ 360,700

Sec.
47.
INDUSTRIAL
COMMISSION OF ARIZONA

���������������������������������������������������
2026-27

FTE
positions������������������������������ 250.6

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.
48.
DEPARTMENT OF
INSURANCE AND FINANCIAL INSTITUTIONS

�����������������������������������������
2026-27

FTE positions������������������������������ 147.4

Operating
lump sum appropriation���� $ 12,777,700

Arizona
vehicle theft task force������� 4,452,600

Automobile theft authority

operating budget���������������������� 797,100

Local grants��������������������������� 1,388,900

Reimbursable programs���������������
50,000

Total appropriation � department of
insurance

and financial institutions���������� $ 19,466,300

Fund
sources:

State general fund������������������ $ 6,321,200

Automobile theft authority fund�������� 6,837,300

Financial services fund���������������� 6,257,500

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 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 to be deposited
in the state general fund by statute, the legislature intends that the
department of insurance and financial institutions shall assess and set the
fees at a level to ensure that the monies deposited in the state general fund
will equal or exceed the department's expenditure from the state general fund.

Sec.
49.
ARIZONA
JUDICIARY

���������������������������������������������������
2026-27

Supreme
court

FTE
positions������������������������������
208.0

Operating
lump sum appropriation���� $ 19,374,100

Arizona trial and digital

evidence 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

Total
appropriation � supreme court���������� $
66,363,800

Fund sources:

State general fund������������������ $
30,538,600

Confidential intermediary and

fiduciary fund������������������������ 702,400

Court appointed special advocate

and vulnerable
persons fund��������� 7,048,600

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.

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.

Court
of appeals

FTE
positions������������������������������ 163.8

Division one������������������������ $ 16,823,700

Division two������������������������
8,727,200

Total
appropriation � court of appeals������� $ 25,550,900

Fund sources:

State general fund������������������ $ 25,550,900

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.

Superior court

FTE positions������������������������������ 241.5

Operating lump sum appropriation���� $ 5,308,000

Judges' compensation������������������ 33,288,100

Centralized service payments����������� 4,687,600

Adult standard probation�������������� 22,297,500

Adult intensive probation������������� 13,150,200

Community punishment������������������� 2,310,300

Court-ordered removals������������������� 315,000

Interstate compact����������������������� 513,700

Drug court����������������������������� 1,096,400

General adjudication
personnel

and
support fund deposit������������ 2,000,000

Juvenile standard probation������������ 3,781,800

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�������� 9,088,500

Probation incentive payments����������� 1,000,000

Special water master����������������
511,100

Total
appropriation � superior court��������� $130,051,400

Fund
sources:

State
general fund������������������ $118,036,900

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.

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.
50.
DEPARTMENT OF
JUVENILE CORRECTIONS

���������������������������������������������������
2026-27

FTE positions������������������������������ 738.5

Lump sum appropriation�������������� $ 44,683,600

Fund sources:

State general fund������������������ $ 31,985,800

State charitable, penal and

reformatory
institutions

land
fund��������������������������� 4,054,400

Criminal justice enhancement fund�������� 428,000

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
director of the department of juvenile corrections shall award a onetime
stipend payment to an employee who is employed by the agency from and after
July 3, 2026. The payment shall be equal to four percent of the
employee's annual salary level and the amount shall be distributed evenly
throughout each pay period in fiscal year 2026-2027.

Sec.
51.
STATE LAND
DEPARTMENT

���������������������������������������������������
2026-27

FTE positions������������������������������ 145.7

Operating lump sum appropriation���� $ 19,861,000

CAP user fees�������������������������� 1,634,300

Due diligence program����������������
5,000,000

Total appropriation � state land
department�� $ 26,495,300

Fund sources:

State general fund������������������ $ 12,256,300

Off-highway vehicle
recreation

fund���������������������������������� 177,600

Due diligence fund��������������������� 5,000,000

Trust land management fund������������� 9,061,400

The appropriation includes $1,634,300
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.
52.
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

Lump sum appropriation�������������� $
26,709,000*

Fund
sources:

State general fund������������������ $
26,709,000

Of the amount
appropriated for the lump sum appropriation, the auditor general shall use
$3,300,000 for additional agency performance audits and school district audits.

Sec. 53.
DEPARTMENT
OF LIQUOR LICENSES AND CONTROL

���������������������������������������������������
2026-27

FTE positions������������������������������� 58.2

Lump sum appropriation�������������� $
7,052,800

Fund
sources:

Liquor licenses fund���������������� $
7,052,800

Sec.
54.
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.
55.
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.
56.
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.
57.
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.
58.
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.

Sec.
59.
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.
60.
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.
61.
ARIZONA STATE
BOARD OF NURSING

���������������������������������������������������
2026-27

FTE positions�������������������������������
64.0

Operating lump sum appropriation���� $ 6,537,200

Certified nursing assistant

credentialing
program������������
557,000

Total
appropriation � Arizona state

board of nursing�������������������� $ 7,094,200

Fund sources:

Board of nursing fund��������������� $ 7,094,200

Sec.
62.

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

Sec.
63.
BOARD OF
OCCUPATIONAL THERAPY EXAMINERS

���������������������������������������������������
2026-27

FTE positions�������������������������������� 2.0

Lump sum appropriation�������������� $ 298,000

Fund sources:

Occupational therapy fund����������� $ 298,000

Sec.
64.
STATE BOARD OF
DISPENSING OPTICIANS

�����������������������������������������
2026-27

FTE
positions�������������������������������� 1.0

Lump sum appropriation�������������� $ 199,700

Fund sources:

Board of dispensing opticians fund�� $ 199,700

Sec.
65.
STATE BOARD OF
OPTOMETRY

�����������������������������������������
2026-27

FTE positions�������������������������������� 2.0

Lump sum appropriation�������������� $ 288,000

Fund sources:

Board of optometry fund������������� $ 288,000

Sec.
66.
ARIZONA BOARD OF
OSTEOPATHIC EXAMINERS IN MEDICINE AND SURGERY

�����������������������������������������
2026-27

FTE positions������������������������������� 10.0

Lump sum appropriation�������������� $ 1,526,100

Fund
sources:

Arizona
board of osteopathic

examiners
in medicine

and surgery fund����������������� $ 1,526,100

Sec.
67.
ARIZONA STATE
PARKS BOARD

�����������������������������������������
2026-27

FTE positions������������������������������ 169.0

Operating lump sum appropriation���� $ 17,446,500

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������������������������������� $ 22,347,500

Fund
sources:

State
parks revenue fund������������ $ 20,800,600

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 the Arizona state parks board
receives land and water conservation grant funding for capital projects in
fiscal year 2026-2027, the board shall report the revised expenditure
plan 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
not more than $865,000 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
expenditures. Before spending any monies from the state parks
revenue fund for state historic preservation office operating expenditures, the
Arizona state parks board shall report the expenditure plan to the joint
legislative budget committee.

Sec.
68.
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.
69.
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.
70.
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.
71.
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.
72.
STATE BOARD OF
PODIATRY EXAMINERS

���������������������������������������������������
2026-27

FTE positions�������������������������������� 1.0

Lump sum appropriation�������������� $ 204,200

Fund
sources:

Podiatry fund����������������������� $ 204,200

Sec.
73.
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.
74.
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.
75.
DEPARTMENT OF
PUBLIC SAFETY

���������������������������������������������������
2026-27

FTE
positions���������������������������� 2,178.7

Operating
lump sum appropriation���� $291,914,800

ACTIC���������������������������������� 2,132,700

AZPOST��������������������������������� 6,100,000

Border drug interdiction�������������� 18,103,200

Local border support������������������ 13,232,900

Civil
air patrol maintenance and

operations���������������������������� 144,000

GIITEM�������������������������������� 26,014,800

GIITEM subaccount���������������������� 2,396,400

Major incident division�������������� 16,197,700*

Motor vehicle fuel��������������������� 5,454,600

Pharmaceutical diversion and

drug theft task
force����������������� 668,400

Public safety equipment������������� 2,890,000

Victims of crimes grants������������
9,300,000

Total appropriation � department of
public

safety������������������������������ $394,549,500

Fund sources:

State general fund������������������ $304,587,300

State highway fund�������������������� 10,000,000

Border security fund������������������ 10,900,000

Arizona highway patrol fund����������� 25,983,400

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.

Of the
amount appropriated in the total appropriation for the department of public
safety, $189,036,300 is designated for personal services and $81,791,400 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.
76.
STATE REAL
ESTATE DEPARTMENT

���������������������������������������������������
2026-27

FTE
positions������������������������������� 37.0

Lump
sum appropriation�������������� $ 3,119,300

Fund
sources:

State general fund������������������ $ 3,119,300

Sec.
77.
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.
78.
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.
79.
ARIZONA STATE
RETIREMENT SYSTEM

���������������������������������������������������
2026-27

FTE positions������������������������������ 240.9

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.
80.
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 contract auditor fees.

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.
81.
DEPARTMENT OF
STATE � SECRETARY OF STATE

���������������������������������������������������
2026-27

FTE positions������������������������������ 144.1

Operating lump sum appropriation���� $ 15,144,800

Access voter information database�������� 999,500

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��������� $ 21,062,000

Fund
sources:

State
general fund������������������ $
18,457,100

Election systems improvement fund��������
999,500

Records services fund������������������
1,605,400

Included in the operating lump sum
appropriation of $15,144,800 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 $15,144,800 for fiscal year
2026-
2027 is $
1,605,400 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.

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.

Not later than fifteen days after the
last day of each month, the secretary of state shall 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 previous month's expenditures
and fiscal year-to-date expenditures from the election services
line item. The report must include the actual expenditures by
purpose, including the costs associated with logic and accuracy testing, the
statewide election publicity pamphlet, initiative and referendum processing,
petition signature reimbursements and sample ballot requirements, and may
include other items related to the election services line item.

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.

On or before November 1, 2026, the
secretary of state shall submit a report to the joint legislative budget
committee and the governor's office of strategic planning and budgeting
reporting the actual expenditures for the prior fiscal year for the access
voter information database.� The report must, at a minimum, include:

1. The actual
expenditures for the operation and maintenance of the database.

2. Any expenditures for
updates to the database due to statutory changes.

3. The purpose of the
expenditures.

4. All funding sources
used to support the database.

Sec.
82.
STATE BOARD OF
TAX APPEALS

���������������������������������������������������
2026-27

FTE positions�������������������������������� 4.0

Lump sum appropriation�������������� $ 319,300

Fund
sources:

State general fund������������������ $ 319,300

Sec.
83.
STATE BOARD OF
TECHNICAL REGISTRATION

���������������������������������������������������
2026-27

FTE
positions������������������������������� 26.0

Lump sum
appropriation�������������� $ 2,735,900

Fund
sources:

Technical registration fund��������� $ 2,735,900

Sec.
84.
DEPARTMENT OF
TRANSPORTATION

���������������������������������������������������
2026-27

FTE
positions���������������������������� 4,581.0

Operating
lump sum appropriation���� $266,806,500

Attorney
general legal services�������� 3,940,400

Highway maintenance������������������ 182,099,400

ADOT fleet vehicles and heavy

equipment
maintenance�������������� 26,814,600

ADOT fleet vehicles and heavy

equipment
maintenance contingency��� 1,000,000

State fleet operations���������������� 32,421,400

State fleet vehicle replacement�������� 7,250,000

Driver safety and livestock
control������ 800,000

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����������������������
$594
,688,900

Fund sources:

Air quality fund�������������������� $ 894,000

Arizona highway user revenue fund�������� 842,500

Highway damage recovery account�������� 7,999,000

Ignition interlock device fund����������� 380,600

Motor vehicle liability

insurance
enforcement fund���������� 1,655,600

State fleet operations fund����������� 32,421,400

State vehicle replacement fund��������� 7,250,000

State aviation fund�������������������� 2,587,400

State highway fund������������������� 511,158,700

Department fleet operations fund������ 27,814,600

Vehicle inspection and certificate

of title enforcement
fund����������� 1,685,100

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.

Other

Of the total amount appropriated,
$182,099,500 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.

Sec.
85.
STATE TREASURER

���������������������������������������������������
2026-27

FTE positions������������������������������� 38.4

Operating lump sum appropriation���� $ 4,721,600

Justice of the peace salaries���������� 2,797,200

Law enforcement/boating safety

fund grants����������������������
2,183,800

Total
appropriation � state treasurer�������� $ 9
,702,600

Fund
sources:

State
general fund������������������ $ 3
,139,700

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.

Sec. 86.
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.
87.
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 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 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
and short-term programs in Washington, D.C. 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.
88.
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 not more than
five percent 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
expenditures, 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.
89.
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
expenditures, 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 institute
the lump sum reduction of not more than five percent prescribed by this act.

Sec.
90.
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

Natural resource users law and

policy center����������������������� 1,589,800

School of mining����������������������� 4,187,000

Sierra Vista campus�������������������� 2,864,600

Veterinary diagnostic laboratory����
2,606,200

Total �
main campus�������������������� $702,907,800

Fund
sources:

State
general fund������������������ $258,917,200

University
collections fund���������� 443,990,600

Health
sciences center

FTE positions������������������������������ 857.1

Operating lump sum appropriation����� $68,535,700

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��������� $
120,112,400

Fund
sources:

State general fund������������������ $
75,428,400

University collections fund���������
44,684,000

Total
appropriation - university of�����������������������

Arizona����������������������������� $823
,020,200

Fund
sources:

State general fund������������������ $
334,345,600

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 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 center the lump sum reduction of not more than five percent
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
natural resource users law and policy center line item shall be used by the
natural resource users law and policy center within the Arizona cooperative
extension.� Of the amount appropriated, at least $500,000 shall be used to
assist claimants in the general stream adjudication of water rights pursuant to
section 15-1647, Arizona Revised Statutes.

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
expenditures, 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.
91.
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.

Sec.
92.
ARIZONA STATE
VETERINARY MEDICAL EXAMINING BOARD

���������������������������������������������������
2026-27

FTE positions�������������������������������� 8.0

Lump sum appropriation�������������� $ 922,700

Fund sources:

Veterinary medical examining

board fund����������������������� $ 922,700

Sec.
93.
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*

Water supply and demand assessment��
3,614,400

Total
appropriation � department of water����������������

resources��������������������������� $ 27,844,800

Fund
sources:

State general fund������������������ $ 25,077,500

Water resources fund������������������� 1,724,900

Assured and adequate water

supply
administration fund������������ 301,300

Long-term water augmentation fund�������� 741,100

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 expenditures.

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.
94.

Appropriation reduction; superintendent of public instruction;
fiscal year 2019-2020

In addition
to any other appropriations 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 Adjustment

Sec.
95.

Appropriation reduction; superintendent of public instruction;
fiscal year 2020-2021

In addition
to any other appropriations 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.
96.

Appropriation reductions; fiscal year 2021-2022

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
2022-2023 Appropriation Adjustment

Sec.
97.

Appropriation reduction; department of veterans' services; fiscal
year 2022-2023

In addition
to any other appropriations made in fiscal year 2022-2023, the sum of
$(1,000,000) is reduced from the appropriation made from the state general fund
in fiscal year 2022-2023 to the department of veterans' service for
tribal ceremonies.

Fiscal Year 2023-2024 Appropriation Adjustments

Sec.
98.

Appropriation reductions; fiscal year 2023-2024

Notwithstanding
any other law, the following amounts are reduced from the monies appropriated
from the state general fund in fiscal year 2023-2024 to the following
state agencies for operating lump sum appropriations and line items:

1. State
department of corrections

Transitional
and reentry

housing�������������������������� $(3,733,300)

2. Department
of public safety

Civil
air patrol infrastructure�� $(2,300,000)

Major
incident division���������� $(1,323,200)

Fiscal Year
2024-2025 Appropriation Adjustments

Sec.
99.

Appropriation reductions; fiscal year 2024-2025

Notwithstanding
any other law, the following amounts are reduced from the monies appropriated
from the state general fund in fiscal year 2024-2025 to the following
state agencies for operating lump sum and line item appropriations:

1. Arizona
health care cost containment system

Graduate
medical education������� $(4,298,100)

2. Department
of public safety

Major
incident division���������� $(6,433,200)

Fiscal Year 2025-2026 Appropriation Adjustments

Sec.
100.

Department of administration; intent; review; fiscal year 2025-2026

The legislature intends that the
department of administration not enter into any agreements in fiscal year 2025-2026
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.
101.

Supplemental
appropriation; Arizona health care cost containment system administration;
fiscal year 2025-2026

In
addition to any other appropriations made in fiscal year 2025-2026, the
sum of $64,528,400 is appropriated from the state general fund and $340,175,800
from expenditure authority in fiscal year 2025-2026 to the Arizona health
care cost containment system administration for adjustments in formula
requirements.

Sec.
102.

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 $96,818,700 is
appropriated from the state general fund and $241,928,300 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. 103.
Supplemental appropriation; department of
public safety; fiscal year 2025-2026; exemption

A. In addition to any other
appropriations 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
expenditures.

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. 104.
Appropriation
reduction; secretary of state; fiscal year 2025-2026

In addition to any other
appropriations made in fiscal year 2025-2026, the sum of $(1,215,200) is
reduced from the appropriations made from the state general fund in fiscal year
2025-2026 to the secretary of state for special election expenses.

Sec.
105.

Appropriation reduction; superintendent of public instruction;
fiscal year 2025-2026

In addition
to any other appropriations 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.

Sec. 106.
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.
107.

Lump sum reductions; fiscal year 2026-2027

A. In addition to any other
appropriations made in fiscal year 2026-2027, the 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�������� $ (967,200)

2. Department of
administration

division
of school facilities�����
$ (78,200)

3. Office of administrative
hearings���
$ (46,300)

4. Arizona department of
agriculture���
$ (763,400)

5. Arizona health care cost

containment
system���������������� $(10,576,400)

6. Attorney general
─ department

of
law���������������������������� $ (1,292,900)

7. State board for charter
schools�����
$ (134,900)

8. Arizona commerce
authority����������
$ (127,500)

9. Arizona community
colleges
─ �������
$ (700,000)

rural
aid

The reduction to rural aid shall be
applied to each county allocation proportionately.

10. Arizona community
colleges

Rural
county reimbursement

subsidy������������������������
$ (54,100)

Dine
college remedial education��
$ (50,000)

Additional
Gila workforce

development
aid����������������
$ (10,000)

11. Corporation commission�������������
$ (37,000)

12. Arizona criminal
justice commission
$ (230,000)

13. Office of economic
opportunity�����
$ (24,800)

14. Department of economic
security���� $ (9,909,100)

15. State board of
education�����������
$ (165,900)

16. Superintendent of
public

instruction����������������������
$ (7,120,400)

17. Department of emergency
and

military
affairs�����������������
$ (564,500)

18. State board of
equalization��������
$ (35,600)

19. Board of executive
clemency��������
$ (72,900)

20. Arizona department of
forestry

and
fire management�������������� $ (2,170,400)

21. Department of gaming���������������
$ (310,200)

22. Office of the governor�������������
$ (456,400)

23. Governor's office of
strategic

planning
and budgeting�����������
$ (138,300)

24. Department of health
services������
$ (5,717,600)

25. Arizona historical
society���������
$ (142,500)

26. Prescott historical
society��������
$ (47,200)

27. Arizona department of

homeland
security����������������
$ (500,000)

28. Industrial commission
of Arizona���
$ (4,200)

29. Department of insurance
and

financial
institutions�����������
$ (299,400)

30. Arizona judiciary
─ supreme court�� $ (1,273,900)

31. Arizona judiciary
─ court of

appeals��������������������������
$ (688,900)

32. Arizona judiciary
─ superior������� $ (4,210,600)

court

33. Department of juvenile
corrections� $ (1,465,500)

34. State land department��������������
$ (579,700)

35. Legislature
─ auditor general������
$ (1,291,100)

36. Legislature
─ house of�������������
$ (907,800)

representatives�������������������������������

37. Legislature
─ joint legislative

budget
committee�����������������
$ (148,200)

38. Legislature
─ legislative council��
$ (452,900)

39. Legislature
─ ombudsman-citizens

aide
office ���������������������
$ (77,000)

40. Legislature
─ senate���������������
$ (806,500)

41. State mine inspector���������������
$ (107,900)

42. State natural resource

conservation
board���������������
$ (19,500)

43. Arizona navigable
stream

adjudication
commission����������
$ (6,700)

44. State real estate
department�������
$ (150,200)

45. Department of revenue�������������� $ (2,862,000)

46. Department of state
─

secretary
of state���������������
$ (692,200)

47. State board of tax
appeals���������
$ (15,300)

48. State treasurer��������������������
$ (85,800)

49. Governor's office on

tribal
relations ����������������
$ (3,200)

50. Arizona board of
regents����������� $ (2,733,000)

51. Arizona state
university����������� $(16,142,600)

52. Northern Arizona
university�������� $ (5,561,700)

53. University of Arizona
─

main
campus���������������������� $(10,670,800)

54. University of Arizona
─

health
sciences center����������� $ (3,771,400)

55. Department of veterans'
services��� $ (569,800)

56. Department of water
resources������ $ (1,199,500)

B. The universities under
the jurisdiction of the Arizona board of regents may not reduce monies
allocated from operating lump sum appropriations to the Arizona state
university school of civic and economic though and leadership, the northern Arizona
university economic policy institute and the university of Arizona center for
the philosophy of freedom by more than five percent of the total amount
allocated to the school, institute or center.

Sec.
108.

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.

Fund Balance Transfers

Sec.
109.

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

Risk
management revolving fund������ $24,300,000

Construction
insurance fund��������� $ 8,500,000

2. Attorney general �
department of law

Consumer
protection-consumer fraud

revolving
fund�������������������� $ 3,000,000

3. Arizona commerce
authority

Arizona
competes fund��������������� $63,300,000

4. Corporation commission

Securities
regulator and

enforcement
fund������������������ $16,900,000

Utility
regulation revolving fund��� $ 6,800,000

5. State department of
corrections

Corrections
fund�������������������� $ 4.400.000

Prison
construction and

� operations
fund������������������� $10,000,000

Transition
program fund������������� $ 2,200,000

6. Department of
environmental quality

Underground
storage tank

revolving
fund�������������������� $ 8,700,000

Recycling
fund���������������������� $ 4,000,000

7. Arizona
game and fish department

Heritage
land acquisition fund������ $10,000,000

Watercraft
licensing fund����������� $ 3,400,000

8. Department of health
services

Health
services lottery fund�������� $ 5,100,000

9. Arizona department of housing

Housing
trust fund������������������ $14,400,000

10. Industrial commission
of Arizona

Administrative
fund���������������� $ 6,700,000

11. Department
of insurance and

financial
institutions

Automobile
theft authority fund���� $ 5,800,000

12. State
land department

Trust
land management fund��������� $21,200,000

13. Judiciary � supreme
court

Judicial
collection enhancement

fund����������������������������� $ 9,600,000

14. Arizona state parks
board

State
parks revenue fund����������� $11,900,000

Off-highway
vehicle recreation

fund����������������������������� $10,000,000

Arizona
state parks heritage

fund����������������������������� $ 2,600,000

15. Arizona board of
regents

Technology
and research

initiative
fund������������������ $24,900,000

16. Department of revenue

Department
of revenue

administrative
fund�������������� $ 5,000,000

17. Department of
transportation

State
match advantage for rural

transportation
fund�������������� $26,300,000

Motor
vehicle liability

insurance
enforcement fund������� $16,200,000

State
vehicle replacement fund����� $ 5,000,000

18. Water infrastructure
finance

authority
of Arizona

Water
supply development

revolving
fund������������������� $30,000,000

Sec.
110.

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.

Payment Deferrals

Sec.
111.

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
.

Sec. 112.
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. 113.
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
increase������������ $283,363,200

Fund
sources:

State
general fund�������������� $ 228,363,200

Other
funds�������������������������� 55,000,000

3. State
fleet operations

adjustment����������������������� $ (5,195,900)

Fund
sources:

State general fund��������������� $ (5,205,900)

Other funds������������������������������� 10,000

4. State
fleet replacement

adjustment�������������������� $ (5,122,400)

Fund
sources:

State general fund��������������� $ (2,422,400)

Other funds�������������������������� (2,700,000)

5. Agency risk
management

��� adjustment�������������������� $ (25,888,300)

Fund
sources:

State general fund��������������� $ (19,999,600)

Other funds�������������������������� (5,888,700)

6. Agency retirement
adjustment����� $ (3,407,300)

Fund
sources:

State general fund��������������� $ (3,135,800)

Other funds���������������������������� (271,500)

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 adjustment

The amount appropriated is for a
onetime state fleet operations adjustment 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 adjustment. 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 adjustment.

State fleet replacement adjustment

The
amount appropriated is for a onetime state fleet replacement adjustment 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
adjustment. 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 adjustment.

Agency risk
management adjustment

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.

Sec.
114.

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.
115.

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.
116.

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.
117.

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.
118.

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.
119.

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.
120.

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.
121.

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.
122.

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 $18,361,000,000.

B. State general fund
revenue for fiscal year 2026-2027, including onetime revenues, is forecasted to
be
$17,970,000,000.

C. State general fund
revenue for fiscal year 2027-2028, including onetime revenues, is forecasted to
be
$17,987,500,000. State general
fund expenditures for fiscal year 2027-2028 are forecasted to be
$17,939,500,000.

D. State general fund
revenue for fiscal year 2028-2029, including onetime revenues, is forecasted to
be $18,950,600,000. State general fund expenditures for fiscal year
2028-2029 are forecasted to be $18,515,000,000.

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.
123.

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.
124.

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.
125.

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.