HB 2027
Initials VP/AA Page 1 House Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
First Regular Session
House: WM DP 7-1-2-0 | APPROPS DPA 9-3-3-0 | 3
rd
Read 40-20-0-0
HB 2027: appropriation; unfunded liability; CORP
Sponsor: Representative Livingston, LD 28
House Engrossed
Overview
Appropriates $428,813,700 from the state General Fund (GF) in FY 2023 to the public safety
personnel retirement system (PSPRS) to pay the unfunded accrued liability.
History
Before the establishment of the PSPRS, public safety personnel in the state of Arizona were
covered under various local, municipal and state retirement programs. This provided for wide and
significant differentials in employee contribution rates, benefit eligibility provisions, types of benefit
protection and benefit formulas. The PSPRS pension plan was established July 1, 1968 to provide
a uniform, consistent and equitable statewide retirement program for Arizona’s public safety
personnel. (A.R.S. § 38-841)
PSPRS is a qualified governmental pension plan under section 401(a) of the Internal Revenue
Code. (A.R.S. § 38-843.02)
Provisions
1. Appropriates $428,813,700 from the GF in FY 2023 to PSPRS pay the unfunded accrued
liability. (Sec. 3)
2. Specifies that the board of trustees for PSPRS shall account for the appropriation when
calculating the employee contribution rates and the employer contribution rates. (Sec. 3)
3. Creates a county repayment schedule beginning FY24 on the counties for amounts paid by
the state in FY23 on the counties' behalf to the CORP for unfunded accrued liability.
a) Apache County ($73,200)
b) Cochise County ($281,400)
c) Coconino County ($613,900)
d) Gila County ($198,000)
e) Graham County ($35,000)
f) Greenlee County ($23,000)
g) La Paz County ($40,800)
h) Maricopa County ($17,112,200)
i) Mohave County ($403,800)
j) Navajo County ($181,600)
k) Pima County ($2,145,200)
l) Pinal County ($1,077,200)
m) Santa Cruz County ($102,900)
n) Yavapai County ($1,224,500)
o) Yuma County ($675,400) (Sec. 1)
4. Outlines the procedure for billing each county. (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☒ Fiscal Note HB 2027
Initials VP/AA Page 2 House Engrossed
5. Repeals the local government repayment from and after June 30, 2034. (Sec. 2)
6. Reduces appropriations from the state general fund in FY24 as follows:
a) Adult standard probation ($3,813,600)
b) Adult intensive probation ($2,263,700)
c) Community punishment ($101,400)
d) Interstate compact ($83,500)
e) Drug court ($137,500)
f) Juvenile standard probation ($668,000)
g) Juvenile intensive probation ($1,136,500)
h) Juvenile treatment services ($753,300)
i) Juvenile diversion consequences ($1,156,600) (Sec. 4)
7. Contains an emergency clause. (Sec. 5)