SB 1523
Initials AF Page 1 Vetoed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
First Regular Session
Senate: APPROP DP 6-4-0-0 | 3
rd
Read 16-14-0-0
House: 3
rd
Read 31-28-1-0
SB 1523: general appropriations act; 2023-2024. (Substituted for HB 2570)
Sponsor: Senator Kavanagh, LD 3
Vetoed
Overview
Appropriates monies for the operation of the state government in FY 2024.
History
The Arizona Legislature adopts a budget for each fiscal year (FY) that contains general
appropriations. Article IV, Section 20, Part 2 of the Constitution of Arizona requires the General
Appropriations Act (feed bill) to contain only appropriations for the different state departments,
state institutions, public schools and interest on public debt. Statutory changes necessary to
reconcile the appropriations made in the feed bill and other changes are drafted into separate
budget bills prepared according to subject area.
Provisions
The tables below indicate state General Fund (GF) and other fund (OF) changes for appropriated
state agencies in FY 2024 stated in terms of changes to the FY 2024 JLBC Baseline.
Major footnotes are stated in terms of changes to the FY 2023 General Appropriations Act.
Summary of
Changes
Fund Comments
FY 2024 Changes
to JLBC Baseline
Arizona Department of Administration (ADOA)
1. Requires ADOA to submit a report on expenditures made from the Cyber Risk Insurance Fund
to the Director of the Joint Legislative Budget Committee (JLBC) by November 1, 2024. (Sec.
4)
ADOA – School Facilities Division (Sec. 5)
Building Renewal
Grants Deposit
GF One-time, in addition to ongoing
$16,667,900 in the Baseline.
$183,300,000
Arizona Department of Corrections (ADC) (Sec. 21)
Private Prison
Contract Increase
GF Ongoing amount for FY 2023 salary
increase
$7,101,400
Department of Economic Security (DES)
2. Directs DES to submit an expenditure plan to JLBC for review prior to spending $1,000,000
for homeless youth services. (Sec. 27)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note SB 1523
Initials AF Page 2 Vetoed
Arizona Department of Education (ADE) (Sec. 29)
Operating Lump Sum
Appropriation
GF Ongoing $4,551,600
Empowerment
Scholarship
Administration
GF Ongoing $(4,551,600)
3. Requires ADE to submit an expenditure plan to JLBC for review before spending the
$6,880,000 increase in early literacy.
Department of Health Services (Sec. 42)
Homeless Pregnant
Women Services
OF Health Services Lottery Fund $100,000
Independent Redistricting Commission
Remove One-time
Appropriation
GF
FY 2024 Baseline called for a one-time
appropriation under enacted 3-year plan
$(1,500,000)
Department of Public Safety (DPS)
4. Specifies that the Border Strike Task Force Local Support line item is to be used for:
a) Deterrence and apprehension of individuals charged with border-related crimes; and
b) Grants to cities, towns or countries for costs associated with prosecuting and detaining
individuals charged with border-related crimes. (Sec. 75)
5. Designates $7,000,000 of t he Major Incident Division line item for reimbursing regional law
enforcement task forces and other law enforcement agencies to perform critical force incident
investigation. (Sec. 75)
Arizona Department of Transportation (ADOT)
6. Eliminates three reporting ADOT footnotes that are converted into permanent law in the
transportation budget bill. (Sec. 85)
Arizona State University (Sec. 89)
Operating Lump Sum
Appropriation
GF Ongoing $6,006,500
School of Civic and
Economic Thought
and Leadership
GF Ongoing $(6,006,500)
7. Expresses the intent of the Legislature that appropriated monies allocated by Arizona State
University to the School of Civic and Economic Thought and Leadership in FY 2024 be
consistent with the amount appropriated in FY 2023. (Sec. 89)
8. Expresses the intent of the Legislature that appropriated monies allocated by Arizona State
University to the Center for American Institutions be consistent with the amount appropriated
in FY 2022, to be used at the sole discretion of the lead of the Center. (Sec. 89)
SB 1523
Initials AF Page 3 Vetoed
Northern Arizona University (Sec. 90)
Operating Lump Sum
Appropriation
GF Ongoing $865,300
Economic Policy
Institute
GF Ongoing $(865,300)
9. Expresses the intent of the Legislature that appropriated monies allocated by Northern
Arizona University to the Economic Policy Institute in FY 2024 be consistent with the amount
appropriated in FY 2023. (Sec. 90)
University of Arizona (Sec. 91)
Operating Lump Sum
Appropriation
GF Ongoing $4,840,000
Center for the
Philosophy of
Freedom
GF Ongoing $(4,840,000)
10. Expresses the intent of the Legislature that appropriated monies allocated by the University
of Arizona to the Center for the Philosophy of Freedom in FY 2024 be consistent with the
amount appropriated in FY 2023.
Supplemental Appropriations
11. Appropriates $3,107,700 from the Risk Management Revolving Fund to ADOA in FY 2023 to
pay disallowed costs and for FY 2022 fund transfers. (Sec. 95)
12. Appropriates $1,750,000 from the Personnel Division Fund to the Human Resources
Information System (HRIS) Subaccount of the Automation Projects Fund in FY 2023. (Sec.
96)
13. Appropriates $58,487,600 from the Children's Health Insurance Program Fund and
$3,307,915,900 from expenditure authority to AHCCCS in FY 2023 for formula adjustments.
(Sec. 97)
14. Reduces the appropriation from the Tobacco Tax and Health Care Fund – Medically Needy
Account in FY 2023 by $55,000 for formula adjustments. (Sec. 97)
15. Appropriates $11,100,000 from expenditure authority in FY 2023 to the Department of Child
Safety adoption services line item for a technical adjustment. (Sec. 98)
16. Appropriates $200,000,000 from the General Fund in FY 2023 to the Superintendent of Public
Instruction for additional Basic State Aid costs. (Sec. 99)
Additional FY 2024 Appropriations
17. Appropriates the following sums from the GF to ADOA in FY 2024 for counties:
a) $7,150,650 for equal distribution to counties with a population under 900,000;
b) $500,000 for distribution to Graham County;
c) $3,000,000 for equal distribution to counties with a population under 300,000 to
supplement pension payments; and
d) $7,000,000 for distribution to counties to establish a coordinated reentry planning services
program. (Sec. 100) SB 1523
Initials AF Page 4 Vetoed
18. Appropriates the following sums that are non-lapsing through June 30, 2025, to subaccounts
of the Automation Projects Fund in FY 2024:
a) $20,647,800 from the HRIS Subaccount to replace the HRIS; and
b) $19,369,400 from the Department of Revenue Subaccount to implement the integrated
tax system modernization project that meets outlined minimum specifications. (Sec. 101)
19. Requires ADOA to provide quarterly reports to JLBC on automation projects, including project
expenditures, deliverables, timeline and current status. (Sec. 101)
20. Continues to allow DES to use up to $25,000,000 from the Budget Stabilization Fund to
provide funding for reimbursement grants, with reporting requirements. (Sec. 102)
21. Allocates $25,498,600 from the GF in FY 2024 to the Arizona Convention Center
Development Fund. (Sec. 103)
22. Distributes an estimated $17,000,000 from transaction privilege tax revenues to the Rio
Nuevo Multipurpose Facility District in FY 2024. (Sec. 104)
Fund Balance Transfers and Payment Deferrals
23. Establishes fund balance transfer amounts for automation projects but specifies that transfers
into the Automation Projects Fund are not appropriations. (Sec. 105)
24. Defers $800,727,700 of the FY 2024 Basic State Aid and Additional State Aid entitlement to
July 12, 2024. (Sec. 106)
25. Directs school districts to include the deferred payments when computing tax rates for FY
2024. (Sec. 106)
Statewide Adjustments
26. Replaces the employer health insurance contribution reduction of $95,469,000 and university
health insurance backfill removal of $40,033,000 with an employer health insurance
contribution increase of $102,000,000. (Sec. 107)
27. Directs JLBC staff, in consultation with the Governor's Office of Strategic Planning and
Budgeting, to determine the amounts of the statewide adjustments to be allocated by ADOA
for each agency. (Sec. 107)
28. Sets FY 2024 charges for general agency counsel provided by the Department of Law. (Sec.
108)
FY 2025 Appropriations
29. Appropriates $77,898,600 from the GF in FY 2025 to the New School Facilities Fund for
projects that received final approval from the Division of School Facilities by December 15,
2022. (Sec. 109)
Miscellaneous
30. Requires the Governor to report to the Legislature:
a) Any expenditures exceeding $10,000,000 from the Coronavirus State Fiscal Recovery
Fund and the Coronavirus Capital Projects Fund from the federal American Rescue Plan
Act of 2021 (ARPA) prior to spending the monies; and
b) The actual quarterly expenditures from ARPA through June 30, 2026. (Sec. 110)
31. Requires the Superintendent of Public Instruction to report to the Legislature:
a) Any expenditure exceeding $10,000,000 from the Elementary and Secondary School
Emergency Relief Fund from ARPA prior to spending the monies; and
b) The actual quarterly expenditures from ARPA through June 30, 2026. (Sec. 110) SB 1523
Initials AF Page 5 Vetoed
32. Requires quarterly reports from the Arizona Board of Regents and each community college
district to the Legislature on the actual expenditures of the Higher Education Emergency Relief
Fund form ARPA through June 30, 2026. (Sec. 110)
33. States the intent of the Legislature that the Executive Branch report on additional federal aid
enacted by the end of FY 2024. (Sec. 110)
34. Expresses legislative intent that all budget units continue to report expenditures in a format
similar to prior years. (Sec. 111)
35. Requires all full-time equivalent (FTE) positions to be subject to appropriation and outlines
reporting requirements for ADOA and each university to compare FTE usage to the
appropriated FTEs. (Sec. 112)
36. Requires each agency to submit a report to JLBC by October 1, 2023, on the number of filled
appropriated and nonappropriated FTE positions by fund source. (Sec. 113)
37. Directs ADOA to provide a monthly report to JLBC on any transfers of spending authority
during the prior month. (Sec. 114)
38. Forecasts GF revenue estimates for FY 2023, 2024, 2025 and 2026 and GF expenditure
estimates for FY 2025 and 2026. (Sec. 115)
39. Requires the Executive Branch to provide JLBC a preliminary estimate of the FY 2023 ending
GF balance by September 15, 2023. (Sec. 115)
40. Directs JLBC staff to report to JLBC by October 15, 2023, whether the FY 2024 revenues and
ending balance are expected to change by more than $50,000,000 from the budgeted
projections. (Sec. 115)
41. Defines *, expenditure authority and review by the Joint Legislative Budget Committee. (Sec.
116, 117, 118)