Official Summary Text
SB1833 - 572R - Senate Fact Sheet
Assigned to
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VETOED
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
VETOED
FACT SHEET FOR
H.B. 4140/S.B. 1833
2026-2027; state
budget implementation.
Purpose
Makes session
law changes relating to budget implementation 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.
H.B. 4140 contains
the budget reconciliation provisions for changes relating to budget
implementation.
Provisions
1.
Continues to require, retroactive to July 1, 2026, any unrestricted
federal monies received by the state in FY 2027 to be deposited in the state
General Fund (state GF) and used to pay essential governmental services.
2.
States that the Legislature is not required to appropriate monies to or
transfer monies from the Budget Stabilization Fund in FY 2027 and FY 2028.
3.
Continues to suspend the Budget Stabilization Fund cap of 10 percent of
the state GF revenue for FY 2027 and prohibits the State Treasurer from
transferring any surplus monies from the Budget Stabilization Fund to the state
GF.
4.
Requires
the Governor's executive budget submission to the Legislature for FY 2028 to
include:
a)
a full accounting of monies available for expenditure from the
government efficiency and reform initiative savings; and
b)
a
report that demonstrates how the government efficiency and reform initiative
savings target of $100,000,000 will be accomplished including a comprehensive
list of component initiatives, by savings amount, for each affected agency.
5.
Becomes
effective on the general effective date.
Governor's Veto Message
The Governor
indicates in her
veto
message
that H.B. 4140, 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
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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����������������� 33-20-7�������������� 3
rd
Read��������� 5/4/26��������������������������� 16-12-2
(H.B. 4140
was substituted for S.B. 1833 on 3
rd
Read)
Vetoed by the Governor 5/5/26
Prepared by Senate Research
May 6, 2026
AN/hk
Current Bill Text
Read the full stored bill text
SB1833 - 572R - S Ver
Senate Engrossed
2026-2027; state
budget implementation
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SENATE BILL 1833
AN
ACT
Appropriating monies; relating to IMPLEMENTATION
of budgetary revisions.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1.
Unrestricted
federal monies; essential government services; retroactivity
A. Any unrestricted federal
monies received by this state beginning July 1, 2026 through June 30, 2027
shall be deposited in the state general fund. The monies shall be
used to pay essential government services.
B. This section applies
retroactively to from and after June 30, 2026.
Sec. 2.
Budget stabilization fund; exceptions
Notwithstanding section 35-144,
Arizona Revised Statutes:
1. For fiscal years 2026-2027
and 2027-2028, the legislature is not required to appropriate monies to
or transfer monies from the budget stabilization fund.
2. For fiscal year 2026-2027,
the budget stabilization fund is not limited to ten percent of the state
general fund revenue for the fiscal year, and the state treasurer may not
transfer any surplus monies from the budget stabilization fund to the state
general fund.
Sec. 3.
Budget
submission; government efficiency and reform initiative; report
In furtherance of section 35-111,
Arizona Revised Statutes, the governor's budget submission to the legislature
for fiscal year 2027-2028 must include a full accounting of the monies
available for expenditure pursuant to any savings realized by the government
efficiency and reform initiative. The governor's budget submission
must include a report that demonstrates how the government efficiency and
reform initiative savings target of $100,000,000 will be accomplished and must
include a comprehensive list of component initiatives, by savings amount, for
each affected agency.