Assigned to APPROP FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
FACT SHEET FOR S.B. 1729
general appropriations act; 2022-2023.
Purpose
Makes session law changes relating to general appropriations necessary to implement the
FY 2023 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 (FY 2023 JLBC
Baseline).
S.B. 1729 contains the budget provisions for changes relating to general appropriations.
Provisions
FY 2023 Ongoing Fund and Major Footnote Changes
Arizona Department of Administration (ADOA)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Credit Lending Report GF 200,000
Major Footnote Changes
1. Removes the requirement that ADOA charge state agencies no more than $10.42 per user per
month for the statewide email and calendar service.
2. Removes the requirement for JLBC to review the report submitted by ADOA on the results
travel reduction pilot program.
3. Exempts the FY 2023 appropriation relating to Health Care Interoperability Grants from
lapsing until July 1, 2025. FACT SHEET
S.B. 1729
Page 2
4. Requires ADOA to distribute $1,000,000 from the election security grants to one or more
county recorders to test ballot paper in tabulation systems with outlined security features and
requires the features to be used to authenticate the ballot as an official ballot.
5. Prohibits the specified security features from identifying a particular elector or allowing for
different sized ballots.
6. Requires ADOA, by May 1, 2023, to compile a report from the selected counties on
recommended ballot security features and submit that report to the President of the Senate,
Speaker of the House of Representatives and Secretary of State.
7. Requires ADOA, to distribute $500,000 out of the $1,500,000 election security grants to
procure, install and maintain photo video surveillance 24 hours per day, seven days per week
for secure ballot boxes in specified counties.
8. Requires the portion of the ADOA appropriation designated for fire incident management
system grants to be used to provide grants to municipal fire departments and fire districts for
hardware and software that meet specified criteria.
9. Exempts the FY 2022 appropriation for the Enduring Freedom Memorial repair from lapsing
until July 1, 2023.
10. Allocates $20,000,000 of the ADOA appropriation for the School Safety Interoperability
Fund to be distributed as follows:
a) $3,050,000 to the Maricopa County Sheriff;
b) $2,000,000 to the Tucson Police Department;
c) $1,800,000 to the Pinal County Sheriff;
d) $1,800,000 to the Yavapai County Sheriff;
e) $1,500,000 to the Cochise County Sheriff;
f) $1,250,000 to the Navajo County Sheriff;
g) $1,350,000 to the Yuma Police Department;
h) $1,250,000 to the Mohave County Sheriff;
i) $1,250,000 to the Coconino County Sheriff;
j) $1,000,000 to the Apache County Sheriff;
k) $1,000,000 to the Gila County Sheriff;
l) $750,000 to the Santa Cruz County Sheriff;
m) $750,000 to the Graham County Sheriff;
n) $750,000 to the La Paz County Sheriff; and
o) $500,000 to the Greenlee County Sheriff.
Arizona Health Care Cost Containment System (AHCCCS)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Formula GF 65,300,000
Increased Eligibility Determination GF 4,500,000 FACT SHEET
S.B. 1729
Page 3
Eligibility Determination Older
Foster Care Youth
GF 18 to 26 years old 200,000
Transfer Suicide Prevention
Coordinator
GF Transfer to DHS (100,000)
Federal IT Regulation Compliance GF 300,000
American Indian Health Program
SMI Integration
GF 200,000
Chiropractic Care GF 3,400,000
Postpartum Care GF 2,700,000
EPD Provider Rate Increases GF 11 percent 24,200,000
Secure Behavioral Health Facility
Provider Rate Increase
GF Beginning FY 2024 10,000,000
Pregnancy Care Provider Rate
Increase
GF 10,000,000
Diabetes Management GF 700,000
Behavioral Health Provider Rate
Increase
GF 2.5 percent 7,500,000
Pediatric Skilled Nursing Facilities
Rate Increase
GF 144,000
Major Footnote Changes
11. Requires AHCCCS, by October 1, 2022, to report to JLBC on the actual distribution of rate
increases relating to behavioral health providers.
12. Requires AHCCCS to, by July 1, 2023, receive Centers for Medicare and Medicaid Services
(CMS) authorization before expending monies relating to postpartum care.
13. Requires AHCCCS, pending CMS approval, to distribute a differential adjusted payment of
$1,250 per day to 24-bed pediatric skilled nursing facilities offering skilled nursing services
in place of intensive care services.
14. Requires monies appropriated for the secure behavioral health residential facilities support
five licensed secure behavioral health residential facilities to provide secure on-site supportive
treatment to persons determined to be seriously mentally ill, chronically resistant to treatment
and who are placed in the facility on a court order.
15. Requires three secure behavioral health residential facilities to be located in the central
geographic service area, one to be located in the north geographic service area and one to be
located in the south geographic service area.
16. Requires AHCCCS to allocate up to $5,000,000 for each recipient facility, prioritizing
facilities that can open within 12 months after the effective date. FACT SHEET
S.B. 1729
Page 4
17. Specifies that the appropriation relating to the Arizona Long Term Care System includes
$24,200,000 from the state GF, $19,400,000 from county funds and $100,100,000 in
Medicaid Expenditure Authority to provide an 11 percent increase to provider rates for both
home and community-based services and skilled nursing facilities.
18. Requires AHCCCS to prioritize health professional shortages in distributing urban graduate
medical education payments.
19. Specifies that the Health Care Investment Fund assessment includes $270,000,000 in
expenditure authority for expanded direct payments.
20. Increases, from $500,000 to $1,000,000, the threshold for JLBC review relating to AHCCCS
expenditures.
21. Increases the physician fee schedule rates associated with the AHCCCS global obstetrical
package by 88 percent.
Attorney General (AG)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Additional Office of Victims
Services Staff
GF 2 FTEs 200,000
Major Footnote Changes
22. Reverts the $600,000 appropriation for the Equal Employment Opportunity Commission
(EEOC) funding to the Consumer Protection-Consumer Fraud Revolving Fund, if the U.S.
EEOC does not withdraw federal funding during FY 2023.
23. Requires the $2,000,000 portion of the AG appropriation for the expert witness and outside
counsel to be used to employ or retain attorneys throughout the entirety of any action to
investigate or purse enforcement pertaining to antitrust, restraint of trade, market allocation,
price-fixing or other similar activity or conspiracy allegations.
24. Exempts the $500,000 FY 2022 appropriation from the Risk Management Revolving Fund
for election litigation expenses from lapsing through FY 2023.
State Board for Charter Schools
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
2022 IT Upgrade GF
116,000 Ongoing /
389,000 Onetime
505,000
Additional Staff GF 4 FTEs 500,000
AG Legal Services GF 1 FTE 100,000 FACT SHEET
S.B. 1729
Page 5
Department of Child Safety (DCS)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Federal Match Change GF Beginning FY 2024 7,500,000
Healthy Families Expansion GF 10,000,000
Increase Foster Child Daily Stipend GF From $1.41 to $2.82 4,800,000
Increase Monthly Kinship Stipend GF $75 to $300 19,800,000
Independent Living Stipend GF 2,600,000
Qualified Residential Treatment
Program Rate Increase
GF 10 percent 7,000,000
Major Footnote Changes
25. Requires DCS, by March 31, 2023, to report to JLBC the number of children that are part of
the kinship stipend program and reside with a nonrelative caretaker of fictive kinship.
26. Requires DCS to present a report to JLBC, by February 28, 2023, on the progress made during
July 2022 and December 2022 in meeting the caseload standard and reducing the number of
backlog and long-term cases.
Arizona Commerce Authority (ACA)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Germany Trade Office Funding GF 250,000 Onetime 500,000
Economic Development Marketing
and Attraction
GF 1,000,000
Israel Trade Office Funding GF 125,000
Two New Asia Trade Offices GF
Taiwan and South
Korea
800,000
Major Footnote Changes
27. Requires the ACA to distribute the $5,000,000 designated for blockchain/wearable research
to applied research centers in Arizona in increments of up to $250,000 within 30 days after
the research center has received matching monies from other non-state sources.
28. Requires an applied research center or institute that receives blockchain/wearable research
monies to submit an annual expenditure and performance report to the ACA.
29. Exempts the appropriation for blockchain/wearable research from lapsing until July 1, 2026. FACT SHEET
S.B. 1729
Page 6
Community Colleges
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Formula GF
FY 2024 and FY
2025
(3,200,000) and
(5,100,000)
Maricopa, Pima and Pinal STEM GF 10,800,000
Arizona Corporation Commission
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Hazardous Materials Railroad
Inspector
GF 92,000
Arizona Department of Corrections (ADC)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Private Prison Contract Increase GF 17,500,000
Substance Abuse Treatment GF 3 FTEs 5,400,000
Inmate Healthcare Contract Services
Increase
GF 70,000,000
Major Footnote Changes
30. Allows ADC, after submitting an expenditure plan to JLBC, to transfer personal services and
employee-related expenditures savings from the operating budget to the portion of the ADC
appropriation designated for private prison per diem for private prison staff stipends, which
may not exceed the amount given to ADC staff.
31. Specifies that, effective July 1, 2022, the portion of the ADC appropriation designated for
private prison contract increase, effective July 11, 2022, is to provide a 20 percent salary
increase to correctional officers and all other staff at private prisons.
32. Requires ADC to submit a semi-annual report to JLBC on the inmate health care performance
measure and outlines criteria for the report.
33. Requires ADC to report actual FY 2022, estimated FY 2023 and requested FY 2024
expenditures when submitting ADC's FY 2024 budget estimates.
34. Declares the Legislature's intent that private prisons use vacancy savings for overtime costs
without incurring a penalty. FACT SHEET
S.B. 1729
Page 7
Arizona Criminal Justice Commission (ACJC)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Victims' Compensation Fund GF 2,000,000
State Aid for Juvenile Dependency
Proceedings Fund
GF 2,000,000
Major Incident Regional Law
Enforcement Task Forces
GF 600,000
Major Footnote Changes
35. Requires the portion of the ACJC appropriation designated for rural county diversion
programs to be distributed as grants to county attorney offices in counties with a population
of fewer than 900,000 persons to establish and operate evidence-based alternative prosecution
and diversion programs (programs).
36. Requires ACJC to adopt criteria for distributing grants to eligible counties and to submit, by
October 1, 2023, a report to JLBC on the use of the monies and outcomes obtained by the
programs.
37. Prohibits monies for the programs from being used to supplant existing program monies.
Department of Economic Security
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Formula/Federal Match Change GF 15,900,000
Additional Adult Protective Services
Staff
GF 95 FTEs 11,200,000
Building System Management
Upgrades
GF
147,000 Ongoing
273,000 Onetime
420,000
IT Infrastructure/Security Upgrades GF 2,500,000
Additional Food Bank Funding GF 500,000
Recidivism/Re-entry Programs GF 1,400,000
Arizona Early Intervention Program
(AZEIP) Rate Increase
GF
FY 2024 and FY
2025
4,400,000 and
8,800,000
AZEIP Provider Rate Increases GF 3,400,000
DD Provider Rate Increases GF 9.7 percent 56,700,000
DD State Only Provider Rate
Increases
GF 500,000 FACT SHEET
S.B. 1729
Page 8
Cost Effectiveness Study Provider
Rate Increase
GF 7,200,000
Area Agencies on Aging Provider
Rate Increase
GF 1,000,000
Major Footnote Changes
38. Requires DES to engage with community stakeholders prior to implementing provider rate
increases for FY 2023.
39. Requires DES to submit a report, by September 1, 2022, to JLBC on its stakeholder
engagement efforts and plans to increase provider rates.
40. Requires DES to submit a report, by November 30, 2022, and November 30, 2023, to JLBC
on the cost effectiveness study relating to expenditures, including the number of clients and
total cost.
41. Removes the reporting requirement on the number of filled positions for case managers and
non-case managers in the Division of Developmental Disabilities.
State Board of Education (SBE)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Misconduct Caseload – AG Legal
Services
GF
1 FTE
513,000 Ongoing
23,000 Onetime
536,000
ESA Appeals Process
Implementation
GF
70,000 Ongoing
4,000 Onetime
74,000
Open Enrollment Promotion –
Constituent Services
GF 1 FTE 150,000
Additional Policy Development
Staff
GF
1 FTE
106,000 Ongoing
4,000 Onetime
110,000
Arizona Department of Education (ADE)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Formula GF (85,300,000)
Extra 2.5% Base Level Increase and
Elimination of Teacher
Compensation
GF 99,300,000 FACT SHEET
S.B. 1729
Page 9
Additional 3.4% Base Level
Increase
GF 230,000,000
Elimination State Equalization Tax
Rate
GF 330,500,000
Special Education Weight Increase GF 100,000,000
School Safety Funding Increase GF 50,000,000
Student Apprenticeship Program GF 1 FTE 300,000
Adult Education GF 16,600,000
Education Programs in Jails GF 114,000
Procurement Statewide Gifted
Assessment
GF 800,000
Major Footnote Changes
42. Requires ADE to first distribute school safety funding monies to schools on the waiting list
to receive grants for the costs of placing school resource officers (SROs) on school campuses
and prohibits monies from supplanting funding by local governments for SROs.
43. Allows ADE, if the total cost of funding new grants for SROs is less than $50,000,000, to
allocate monies to grants to schools for the costs of placing school counselors and social
workers on school campuses.
44. Requires the monies appropriated for the foster home youth transitional housing to be
distributed to the East Valley Institute of Technology (EVIT) for a transitional housing unit.
45. Declares the Legislature's intent that monies for transitional housing be used to construct and
furnish a 64-bed transitional housing unit for foster youths between the ages of 17 and 21
years old.
46. Requires EVIT to report, by September 15 of 2025, 2026 and 2027, to the Governor,
Legislature and JLBC on the number of foster youths served by the unit and their academic
progress.
47. Specifies that the portion of the ADE appropriation for adult education includes:
a) $4,620,000 to the Continuing High School and Workforce Training Program;
b) $6,000,000 to the Adult Workforce Diploma Program Fund; and
c) $6,000,000 to the Community College Adult Education Workforce Development Program
Fund.
Department of Emergency and Military Affairs (DEMA)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Reimburse Federal Government for
Facilities Maintenance Overpayment
GF 800,000 FACT SHEET
S.B. 1729
Page 10
Fully Fund State Match for
Readiness Center Maintenance
GF 1,700,000
Arizona Department of Environmental Quality (ADEQ)
Major Footnote Changes
48. Requires ADEQ to establish an interagency service agreement with the Department of
Forestry and Fire Management (DFFM) to transfer $1,000,000 from the Recycling Fund to
DFFM to administer grants to businesses relating to biomass waste.
49. Appropriates all monies in the ADEQ Indirect Cost Fund, including the beginning balance, to
ADEQ.
Arizona State Board of Equalization
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Appeals Application IT Costs GF
25,000 Ongoing
50,000 Onetime
75,000
Board of Executive Clemency
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Chief Operating Officer Position GF 100,000
Department of Forestry and Fire Management (DFFM)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Healthy Forest New Vehicle
Purchases
GF 300,000
Healthy Forest Annual State Fleet
Operation Charge
GF 200,000
Healthy Forest Annual State Fleet
Vehicle Replacement Charge
GF 100,000
Good Neighbor/Fire Marshall
Annual State Fleet Operation Charge
GF 200,000 FACT SHEET
S.B. 1729
Page 11
Good Neighbor/Fire Marshall
Annual State Fleet Vehicle
Replacement Charge
GF 100,000
U.S. Forest Service Land Thinning GF 17 FTEs 1,500,000
Additional Fire Marshall Staff GF 5.5 FTEs 500,000
Major Footnote Changes
50. Exempts the appropriation relating to the Gila River nonnative species eradication from
lapsing.
51. Requires DFFM to submit an annual report, by September 1, to JLBC on the progress in
removing the nonnative plants and effectiveness on a long-term eradication in previously
treated areas.
52. Allocates $3,000,000 of the $65,000,000 designated for wildfire emergency response to costs
relating to the Woodbury Fire.
Arizona Department of Gaming (ADG)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Contract Veterinarian/Pre-Race
Inspections
GF 175,000
Horse Racing Integrity Act
Assessment
GF 355,000
County Fair Promotion GF 2,000,000
Increase Racetrack Maintenance and
Operations Funding
GF 400,000
Major Footnote Changes
53. Requires ADG to report, by October 1, 2022, to JLBC and the Governor's Office of Strategic
Planning and Budgeting (OSPB) on the expected amount and purpose of expenditures from
additional operating expenses for FY 2023.
54. Requires ADG to report, by August 1, 2022, to JLBC and OSPB on the expected amount and
purpose of expenditures from the Event Wagering Fund for FY 2023.
55. Requires ADG to report on a quarterly basis the number of equine deaths and injuries that
occurred as a result of a horse race and the amount of pre-race inspections performed by a
veterinarian employed by or contracting with the state.
FACT SHEET
S.B. 1729
Page 12
Department of Health Services (DHS)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Behavioral Health Student Loan
Repayment Program
GF 2,000,000
Arizona State Hospital (ASH)
Hiring Bonuses
GF Up to 5,000 700,000
Shift Suicide Prevention
Coordinator from AHCCCS to DHS
GF 100,000
Alzheimer's Disease Research GF 2,500,000
Certificate of Necessity Procedures GF 5 FTEs 627,000
Major Footnote Changes
56. Requires that the monies appropriated to replace ASH's surveillance system be used for a
system that includes both video and audio capability.
57. Requires any unused monies appropriated for the Preceptor Grant Program to revert to the
state GF in FY 2026.
58. Extends the nonlapsing date for the Accelerated Nursing Program through FY 2024.
59. Transfers the reporting requirements related to the Suicide Prevention Program from
AHCCCS to DHS.
Arizona Department of Homeland Security (AZODHS)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Cybersecurity Grants to Locals and
School Districts
GF 2 FTEs 10,000,000
Major Footnote Changes
60. Allows the AZDOHS to spend up to $310,000 from the portion of the AZDOHS
appropriation designated for cybersecurity grants for administration costs.
61. Requires the AZDOHS, to use the $2,000,000 appropriation designated for cybersecurity
software to acquire, through a competitive procurement process, security software that detects
security threats by using at least two specified testing mechanisms.
FACT SHEET
S.B. 1729
Page 13
Arizona Department of Housing (ADOH)
Major Footnote Changes
62. Requires ADOH to use monies relating to the Homeless Services Grant Pilot Program for
cities, towns and counties in Arizona for homeless services programs designed to reduce
homelessness.
63. Requires eligible programs to allow homeless individuals to be compensated for daily work,
offer a daily renumeration rate and help participants to access support services.
64. Directs ADOH to prioritize awarding grants to political subdivisions that have an established
program that meets the grant requirements.
65. Requires, to be eligible for a grant, political subdivisions to provide a dollar-for-dollar local
match for each grant dollar.
66. Requires $20,000,000 from the $60,000,000 deposit into the Housing Trust Fund to be
distributed to counties other than Maricopa and Pima counties and $4,000,000 to be
distributed to the Navajo and Hopi Tribal Nations.
Judiciary
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Juror Day One Wage Compensation GF 1,600,000
Adds Six Judges – Court of Appeals GF 2,200,000
Major Footnote Changes
67. Removes the JLBC review requirement relating to county-approved salary adjustments
provided to probation officers.
68. Specifies that $1,115,400 in the operating lump sum for Division II of the Court of Appeals,
effective January 1, 2023, is for implementation of a new three-judge Court of Appeals and
10 supportive staff.
69. Specifies that $1,115,400 in the operating lump sum for Division I of the Court of Appeals,
effective January 1, 2023, is for implementation of a new three-judge Court of Appeals and
10 supportive staff.
Arizona State Land Department (ASLD)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
CAP Fees GF 100,000
Management System GF 2 FTEs 225,000 FACT SHEET
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Page 14
Legislature
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Auditor General (OAG) – Audit
Capacity
GF 3,300,000
House of Representatives GF 4,000,000
Legislative Council GF 1,000,000
Senate GF 4,200,000
Ombudsman GF 300,000
Major Footnote Changes
70. Increases the amount the House of Representatives and Senate may spend for FY 2023 on
mementos and items for visiting officials from $1,000 to $5,000.
71. Requires the OAG to engage an independent consultant with expertise in Adult Protective
Services (APS) operations and investigations to examine the current APS.
72. Requires the independent consultant's examination of APS to consider best practices to
improve the delivery of services in Arizona, including:
a) developing a strategic direction that ensures the safety of vulnerable adults and establishes
protocols for services after an investigation;
b) creating accountability mechanisms;
c) strategies for community engagement that include engagement with families, vulnerable
adults and service providers; and
d) the need for and frequency of regular, periodic performance evaluations and
recommended areas for future reviews of APS by an independent outside evaluator.
73. Requires the OAG, in the decision to enter into a contract with an independent consultant, to
consider the:
a) consultant's history of working with states or counties in evaluating operations for APS;
b) satisfaction of the states or counties with the work of the consultant;
c) knowledge of the consultant's staff or contractors in APS reform and operations;
d) consultant's knowledge of related laws governing APS; and
e) consultant's knowledge of evidence-based and promising best practices in APS.
74. Requires the independent consultant, by July 1, 2023, to submit a report of its work, including
findings and recommendations, to the Governor, President of the Senate, Speaker of the House
of Representatives and the Chairperson of the House Ad Hoc Committee on Abuse and
Neglect of Vulnerable Adults and provide a copy to the Secretary of State.
75. Allocates $50,000 from the amount designated for Legislative Council for planning and
operational costs for Arizona's participation in an Article V Convention. FACT SHEET
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Page 15
76. Requires the Office of the Ombudsman Citizens Aide to use one new FTE to address
complaints relating to the administration of empower scholarship accounts and provide
information to the newly established Arizona Empowerment Scholarship Accounts Parent
Oversight Committee.
Mine Inspector
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Abandoned Mines Program Staff GF 6 FTEs 600,000
Arizona State Parks Board
Major Footnote Changes
77. Allows the Arizona State Parks Board to distribute monies in the State Parks Heritage Fund
to grantees for local, regional and state historic preservation projects, non-motorized trails and
outdoor and environmental education.
78. Prohibits monies appropriated to the Arizona Trail to be distributed to a nonprofit
organization.
Department of Public Safety (DPS)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Additional Border Strike Task Force
Staff
GF
21 FTEs / 11,000,000
local support
9,000,000
Commercial Vehicle Enforcement
Consolidation
GF 1,000,000
Building System Management
Upgrade
GF
215,000 Ongoing
205,000 Onetime
420,000
DNA Testing Enhancements GF 2 FTEs 400,000
Public Service Portal Phase Two GF 400,000
Pay Cadet Housing Costs for
Training
GF 500,000
Fill 69 FTE Vacancies GF
57 Sworn / 12
Civilian / 450,000
Onetime
10,500,000
Major Incident Division GF 10,000,000
Transfer Peace Officer Training
from CJEF to state GF
GF 6,100,000
FACT SHEET
S.B. 1729
Page 16
Major Footnote Changes
79. Requires DPS to submit an operational and expenditure plan, including a description of how
DPS will split the commercial vehicle enforcement duties with the Arizona Department of
Transportation (ADOT), to JLBC.
80. Requires DPS, by December 1 of each year until all monies designated have been distributed
for civil air patrol infrastructure, to submit a report to JLBC on the distributed monies.
81. Exempts the onetime appropriation for vehicle replacement from lapsing.
82. Requires DPS to submit an expenditure plan to JLBC for review prior to expending specified
monies for personal services and employee-related expenditures.
83. Specifies that of the $13,459,600 onetime appropriation relating to helicopter replacements
$2,559,600 must be used to cover the cost of upfitting a previously purchased helicopter.
Public Safety Personnel Retirement System (PSPRS)
Major Footnote Changes
84. Requires PSPRS within 12 months of the unfunded liability pension deposit to evaluate the
PSPRS and Correction Officer Retirement Plan (CORP) actuarial assumptions and submit a
report to JLBC and OSPB.
85. Requires PSPRS to incorporate the FY 2022 public safety pension payoff appropriations in
the June 30, 2022, PSPRS and CORP valuations relating to employee and employer
contribution rates.
Arizona Office of Tourism (AOT)
Major Footnote Changes
86. Exempts the appropriation relating to wine promotion from lapsing.
87. Requires the AOT to submit a report beginning FY 2023 to JLBC on the expenditures relating
to wine promotion from the previous fiscal year.
Arizona Department of Revenue (ADOR)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Information Technology Staffing /
Server and Data Storage Upgrades
GF 12 FTEs 3,500,000
Major Footnote Changes
88. Outlines requirements for the ADOR integrated tax system modernization project with a
reporting requirement to JLBC. FACT SHEET
S.B. 1729
Page 17
Secretary of State
Major Footnote Changes
89. Extends until FY 2024 the $5,400,000 FY 2020 appropriation from the Election Systems
Improvement Fund for the county allocation of the 2020 the Help America Vote Act Election
Security Grant.
90. Stipulates that the monies designated for the access voter information database may only be
used for the voter registration database and no monies be transferred from the line item.
State Treasurer
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Justice of the Peace Salary Increase GF 200,000
Fund Justice of the Peace Salary
Salaries at 40%
GF 1,400,000
Universities
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Arizona Board of Regents (ABOR)
– Promise Scholarship
GF 12,500,000
ABOR – Free In-State Tuition for
GI Spouses
GF 10,000,000
Arizona State University (ASU) –
School of Civic and Economic
Thought and Leadership
GF 2,800,000
Northern Arizona University (NAU)
– Economic Policy Institute
GF 400,000
University of Arizona (UA) – Center
for Philosophy of Freedom
GF 1,800,000
ASU – Eastern Europe Cultural
Collaborative
GF 250,000
UA – Kazakhstan Studies Program GF 250,000
UA – College of Veterinary
Medicine
GF
Increase Resident
Students
8,000,000
UA – Natural Resource Users Law
and Policy Center
GF 1,000,000
UA – Veterinary Diagnostic Lab GF 2,500,000 FACT SHEET
S.B. 1729
Page 18
Major Footnote Changes
91. Requires UA to report to JLBC the number of resident and non-resident students in the
College of Veterinary Medicine.
92. Requires UA to report on veterinary diagnostic lab operating expenditures to JLBC and capital
expenditures to the Joint Committee on Capital Review.
93. Requires ABOR, within 10 days after the acceptance of the universities' semiannual all funds
budget reports, to submit a current year expenditure plan with outlined information to JLBC.
94. Requires ABOR to distribute monies designated in the ABOR appropriation for food product
and safety laboratory to UA for capital improvements to the food product and safety
laboratory and prohibits monies from being used for administrative costs.
95. Requires ABOR to distribute monies designated in the ABOR appropriation for an enclosed
feeding facility to UA to construct an enclosed feeding facility and prohibits monies from
being used for administrative costs.
96. Requires ABOR to distribute monies designated in the ABOR appropriation for the Camp
Verde meat processing facility to UA for distribution to an entity for construction of a meat
processing facility and truck handling facilities and prohibits monies from being used for
administrative costs.
Department of Veteran Services (DVS)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Veteran Service Officers – Rural
Tribal Nations
GF 20 FTEs 2,200,000
Water Infrastructure Financing Authority (WIFA)
Major Footnote Changes
97. Designates $6,000,000 of the Eastern Arizona Water Projects Assistance Grants to cities and
towns in Navajo and Apache counties.
98. Designates $2,000,000 of the Eastern Arizona Water Projects Assistance Grants to Cochise
and Graham counties.
Arizona Department of Water Resources (ADWR)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2023 Changes
Staffing Increase GF 4 FTEs 400,000 FACT SHEET
S.B. 1729
Page 19
Shift Water Banking Fund Spending GF 1,200,000
Arizona Water Protection Fund
Deposit
GF 1,000,000
Major Footnote Changes
99. Requires ADWR to use monies appropriated for the New River Flood Insurance Study to
complete a study, by March 31, 2024, of the hydrology and hydraulics of the New River and
allows ADWR to contract with an engineering firm to complete the study.
FY 2022 Supplemental Appropriations and Adjustments
General Fund (GF) and Other Fund (OF)
Agency Fund Amount
ADOA – Federal Government Disallowed Costs – Risk
Management Revolving Fund
OF
1,110,600
DCS – extension of enhanced federal medical assistance
percentage rate
OF 10,105,000
DCS – caseload growth OF 3,300,000
DES – additional federal funding OF 139,824,00
ADG – enhance general purse structure and track
maintenance and operations
GF 396,900
School Facilities Division
100. Appropriates $93,117,000 from the state GF in FY 2022 to the Building Renewal Grant Fund
for building renewal grants.
Debt
101. Appropriates $93,500,000 from the state GF in FY 2022 to ADOA to pay for the retirement
or defeasance of the financing agreements entered into in FY 2008.
102. Allows the Director of ADOA, for and on behalf the ABOR, to execute and deliver
documents, engage fiduciaries and take or direct all actions necessary in connection with the
retirement and defeasance of the lease-purchase capital financing agreements relating to the
university research infrastructure facilities.
103. Requires the Director of ADOA to notify the Director of JLBC within 10 days of executing
each retirement and defeasance and to include the date and final cost of each.
104. Appropriates $420,559,600 from the state GF in FY 2022 to PSPRS to be deposited in the
employer account of the DPS PSPRS Group to reduce the unfunded accrued liability.
105. Appropriates $474,635,300 from the state GF in FY 2022 to PSPRS to be deposited in the
employer account of the ADC CORP Group to reduce the unfunded accrued liability. FACT SHEET
S.B. 1729
Page 20
106. Appropriates $15,000,000 from the Game and Fish Fund and $82,243,000 from the state GF
in FY 2022 to PSPRS to be deposited in the employer account of the Arizona Game and Fish
Department to reduce the unfunded accrued liability.
107. Appropriates $73,940,800 from the state GF in FY 2022 to PSPRS to be deposited in the
employer account of the Arizona Department of Juvenile Corrections (ADJC) CORP Group
to reduce the unfunded accrued liability.
108. Requires the PSPRS Board of Trustees (PSPRS Board) to account for the appropriations in
the June 30, 2022, actuarial valuation of both the DPS and ADC Groups.
109. Requires the PSPRS Board to account for the appropriations when calculating employee and
employer contribution rates for the DPS and ADC Groups in FY 2024.
Additional FY 2023 Appropriations and Adjustments
Arizona Department of Administration (ADOA)
110. Appropriates $7,150,650 from the state GF in FY 2023 to ADOA for equal distribution to
counties with a population of fewer than 900,000 persons according to the 2010 U.S.
Decennial Census (2010 Census) to maintain essential county services.
111. Appropriates $500,000 from the state GF in FY 2023 to ADOA for distribution to Graham
County to maintain essential county services.
112. Appropriates $3,000,000 from the state GF in FY 2023 to ADOA for equal distribution to
counties with a population of fewer than 300,000 persons according to the 2010 Census in
order to supplement the cost of the Elected Officials' Retirement Plan (EORP).
113. Prohibits the counties from using the distributed FY 2023 $3,000,000 appropriation for
anything other than employer contributions to EORP.
114. Appropriates $7,000,000 from the state GF in FY 2023 to ADOA for distribution to counties
to establish a coordinated reentry planning services program.
Automation Projects Fund (APF)
115. Appropriates the following amounts in FY 2022 from the APF subaccounts to ADOA for the
following automation and information technology (IT) projects:
Project Subaccount Amount
Business One-Stop Web Portal ADOA Subaccount 15,614,300
Human Resources Information System HRIS Subaccount 22,397,800
Cloud Migration
Department of Agriculture
Subaccount
2,000,000
Integrated Tax System Modernization
Project
ADOR Subaccount 15,819,800 FACT SHEET
S.B. 1729
Page 21
Electronic Records Storage SOS Subaccount 300,000
Modernize and Consolidate
Applications
ADWR Subaccount 1,700,000
116. Requires ADOA to submit a quarterly report to JLBC on implementing projects approved by
the Information Technology Authorization Committee that includes the project expenditures,
deliverables, timeline for completion and current status.
117. Exempts FY 2022 appropriations from the APF from lapsing until June 30, 2024.
Department of Economic Security (DES)
118. Allows DES, beginning April 1, 2023, to use up to $25,000,000 from the Budget Stabilization
Fund (BSF) to provide funding for reimbursement grants.
119. Requires DES, before using the BSF monies, to notify the Directors of JLBC and the OSPB.
120. Requires the BSF appropriation to be fully reimbursed by September 1, 2023, and to be
reimbursed in full as part of the closing process for FY 2023.
121. Prohibits the BSF appropriation from being used for additional programmatic expenditures.
Department of Emergency and Military Affairs (DEMA)
122. Appropriates $209,205,000 from the Border Security Fund in FY 2023 to DEMA.
123. Requires DEMA to allocate the appropriation as follows:
a) $20,000,000 to Cochise County to construct a new county jail facility;
b) $15,000,000 to reimburse a county or local law enforcement agency for costs incurred by
the county or law enforcement agency participating in a program with U.S. Immigration
and Customs Enforcement;
c) $10,000,000 for deposit in the Antihuman Trafficking Grant Fund and distributed as
follows:
i. $2,000,000 to DPS Arizona Counter Terrorism Information Center for antihuman
trafficking operations; and
ii. $8,000,000 in award grants to city, town or county law enforcement agencies for
programs that reduce antihuman trafficking;
d) $30,000,000 to cities, towns or counties for costs associated with prosecuting and
imprisoning individuals charged with specified crimes;
e) $10,000,000 for costs incurred by the Arizona National Guard assets augmenting and
supporting DPS and local law enforcement agencies in the southern Arizona border
region;
f) $10,000,000 for emergency health care and testing for immigrants;
g) $15,000,000 for transportation of individuals who entered Arizona seeking asylum to
other states in the United States.;
h) $53,405,000 for deputy sheriff compensation distributed as follows:
i. $48,310,000 to counties for a onetime $10,000 payment to line-level deputies and
detention officers employed by each county sheriff's office as of May 1, 2022; and FACT SHEET
S.B. 1729
Page 22
ii. $5,095,000 to counties for a onetime $5,000 payment to line-level deputies and
detention officers hired between May 1, 2022, and May 1, 2023;
i) $800,000 regarding the established chain of command relating to the Arizona State Guard;
j) $30,000,000 for the construction costs associated with a state emergency operations
center; and
k) $15,000,000 to DPS for the construction costs associated with a southern border
coordinated response center.
124. Requires DEMA to submit quarterly reports, in coordination with AZDOHS and DPS, to
JLBC on the status of the project allocations and monies expended.
125. Allows DEMA to make transfer spending authority between and within the outlined
programs.
126. Exempts the DEMA appropriations from lapsing.
Appropriation Reductions
127. Reduces, by a total of $18,944,000, the appropriations to DHS and ADC made from the state
GF in FY 2023 to eliminate debt service payments following the retirement or defeasance of
financing agreements entered into in FY 2008 in the following amounts:
a) $2,973,000 from the FY 2023 DHS ASH operating budget appropriation; and
b) $15,971,000 from the FY 2023 ADC operating lump sum appropriation.
Debt Service Payments
128. Allocates $24,999,400 of state GF revenue in FY 2023 to the Arizona Convention Center
Development Fund.
129. Asserts that the Rio Nuevo Multipurpose Facility District is estimated to receive $16,000,000
from a portion of state transaction privilege tax revenues in FY 2023 and the actual amount
of distribution will be made as outlined in statute.
Missing and Murdered Indigenous People
130. Appropriates $2,000,000 from the state GF in FY 2023 to the Department of Law for
investigations relating to missing and murdered indigenous people and exempts the
appropriation from lapsing.
Arizona Department of Education (ADE)
131. Appropriates $5,000,000 from the state GF in FY 2023 to the Superintendent of Public
Instruction for a onetime distribution to the Office of Indian Education and exempts the
appropriation from lapsing.
132. Appropriates $100,000 from the state GF in FY 2023 to the Superintendent of Public
Instruction for onetime childhood trauma awareness and prevention grants. FACT SHEET
S.B. 1729
Page 23
133. Allows ADE to distribute grant monies to a nonprofit organization that provides childhood
trauma awareness and prevention training to certificated teachers and public school
administrators in Arizona.
Arizona Department of Veteran Services (ADVS)
134. Appropriates $2,200,000 and 20 FTEs from the state GF in FY 2023 to ADVS to hire veteran
service officers to provide services in rural tribal nations in Arizona that have communities
that are located 100 miles or more from the nearest U.S. Department of Veteran Affairs
service center and exempts the appropriation from lapsing.
135. Appropriates $1,000,000 from the state GF in FY 2023 to ADVS to distribute to Indian tribes
located in Arizona to conduct tribal ceremonies for tribal members discharged from the
military and exempts the appropriation from lapsing.
Fund Transfers
136. Transfers the following amounts in FY 2023 to the relevant APF subaccount from the
following sources:
Project Fund Source Amount
Business One-Stop GF 15,614,300
Cloud Migration - AZDA GF 2,000,000
Integrated Tax System Modernization GF 9,632,700
Integrated Tax System Modernization
Integrated Tax System Project
Fund
6,187,100
Study to Electronic Records Storage Records Services Fund 300,000
Modernize and Consolidate
Applications - ADWR
Water Resources Fund 1,700,000
137. Specifies that transfers into the APF are not appropriations out of the APF and that only direct
appropriations out of the APF are appropriations.
138. Transfers $24,624,400 from the Risk Management Revolving Fund in FY 2023 to the Cyber
Risk Insurance Fund.
Payment Deferrals
139. Continues to defer $800,727,700 in Basic State Aid (BSA) and additional state aid (ASA)
payments from ADE in FY 2023 until after June 30, 2023, but not later than July 12, 2023,
and excludes charter schools and school districts with a student count less than 4,000 pupils
from the deferral.
140. Requires ADE to make the deferral by reducing the apportionment of state aid for each month
in the fiscal year by the same amount. FACT SHEET
S.B. 1729
Page 24
141. Requires ADE to disburse the FY 2024 appropriation of $800,727,700 to the counties for the
school districts starting July 1, 2023, and no later than July 12, 2023, in amounts equal to the
reductions in the apportionment of BSA and ASA.
142. Requires school districts to include, in the revenue estimates used for computing their FY
2022 tax rates, the deferred appropriation monies that they will receive.
Statewide Operating Adjustments
General Fund (GF) and Other Fund (OF)
Area of Adjustment GF OF Total
Arizona Financial Information
System Adjustment
330,900 175,000 505,900
Agency Rent Adjustment (654,800) (2,300,000) (2,954,800)
Retirement Payoff Adjustments (98,119,900) (98,119,900)
Agency Retirement Adjustment 17,218,500 (2,100,000) 15,118,500
Employer Health Insurance 63,244,800 20,000,000 83,244,800
University Health Insurance 40,033,000 40,033,000
HRIS Replacement Charge 8,011,400 3,000,000 11,011,400
Information Technology Pro Rata 1,617,400 600,000 2,217400
State Fleet Rate Adjustments 628,000 357,300 985,300
143. Provides statewide adjustment procedures and instructions.
State Employee Salaries
144. Appropriates $49,140,300 from the state GF and $61,635,400 from other funds for a 10
percent salary increase, beginning July 9, 2022, for state employees other than elected
officials, judges and employees in state universities, ADC, ADJC and DPS.
145. Appropriates $116,656,800 from the state GF in FY 2023 to ADC, beginning July 9, 2022,
for a 20 percent salary increase for all ADC Staff.
146. Appropriates $24,478,800 from the state GF in FY 2023 to DPS, beginning July 9, 2022, for
a 15 percent salary increase for all DPS Staff.
147. Appropriates $5,154,100 from the state GF in FY 2023 to ADJC, beginning July 9, 2022, for
a 20 percent salary increase for all ADJC Staff.
148. Appropriates the following amounts to the specified state agencies for additional state
employee salary increases in FY 2023:
Agency GF OF Total
AZDA 1,173,200 1,173,200
AHCCCS 288,300 288,300 FACT SHEET
S.B. 1729
Page 25
State Board for Charter Schools 360,600 360,600
DCS 3,402,100 3,402,100
Arizona Corporation Commission 19,300 19,300
DES 6,136,100 6,136,100
Board of Executive Clemency 44,300 44,300
State Board of Funeral Directors
and Embalmers
14,000 14,000
DHS 2,278,900 2,278,900
Department of Insurance and
Financial Institutions
109,100 109,100
Supreme Court 553,900 553,900
Court of Appeals 386,500 386,500
Superior Court 75,100 75,100
Arizona State Land Department 27,800 27,800
OAG 576,600 576,600
Department of Liquor Licenses
and Control
382,100 382,100
Arizona Pioneers' Home 412,700 412,700
149. Requires JLBC to determine, for implementing the non-public safety state employee salary
adjustment and ADOA to allocate to each agency or department an amount by the fund for
salary increases.
150. Requires JLBC staff to determine and ADOA to allocate the adjustments, as necessary, in
expenditure authority to allow for the salary increases.
151. Requires OSPB, by October 1, 2022, to submit a report to JLBC detailing the actual raises
given by agency and classification.
152. Requires each budget unit that receives a salary increase appropriation to request an
allocation of these monies by fund and by line item as an adjustment for FY 2024 budget.
153. Outlines the FY 2022 individual agency charges totaling $1,798,500 for general agency
counsel provided by the AG.
FY 2023 and FY 2024 Appropriations
154. Appropriates $31,753,900 from the state GF in FY 2024 for a onetime deposit in the New
School Facilities Fund. FACT SHEET
S.B. 1729
Page 26
155. Requires the School Facilities Division (SFD) to use monies only for facilities that will be
constructed for school districts that received final approval from SFD by December 15,
2021.
156. Appropriates $6,000,000 from the state GF in FY 2024 to the State Treasurer for
distribution to county recorders offices in counties with more than 2,000,000 persons.
157. Requires monies distributed by the State Treasurer to be used by county recorders to review
the accuracy of the voter registration rolls, including whether any registrations should be
canceled.
158. Appropriates $5,000,000 from the state GF in FY 2024 and $6,000,000 in FY 2025 to the
State Treasurer to distribute on a proportional basis to county recorders that purchase ballot
paper that uses specific security features, including watermarks or unique ballot identifiers,
or both.
159. Exempts the appropriation for ballot paper from lapsing.
Miscellaneous
160. 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.
161. Contains other reporting requirements.
162. Defines terms.
163. Becomes effective on the signature of the Governor.
Prepared by Senate Research
June 20, 2022
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