Assigned to APPROP AS ENACTED
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
ENACTED
AMENDED
FACT SHEET FOR S.B. 1735/H.B. 2897
general appropriations act; 2024-2025.
Purpose
Makes session law changes relating to general appropriations necessary to implement the
FY 2025 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. 2897 contains the budget provisions for changes relating to general appropriations.
Provisions
FY 2025 Ongoing Fund and Major Footnote Changes
Arizona Department of Administration (ADOA)
Ongoing General Fund (GF) and Other Fund (OF)
Summary of Changes Source Comments FY 2025 Changes
Arizona State Hospital Complaints
(Ombudsman Position)
GF 1 FTE 150,000
Eliminate Southwest Defense
Contracts
GF (25,000)
Major Footnote Changes
1. Requires the amount of monies appropriated for a school district health insurance actuarial
study to be used to conduct an actuarial study of the cost and benefits for school district
optional participation in the state health insurance program. FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 2
2. Requires ADOA, by December 31, 2024, to submit a report to the Governor, President of the
Senate, Speaker of the House of Representatives and Director of JLBC on the findings of the
school district health insurance actuarial study.
ADOA School Facilities Division (SFD)
Ongoing General Fund (GF) and Other Fund (OF)
Summary of Changes Source Comments FY 2025 Changes
Building Renewal Grant Funding GF Onetime 183,000,000
Major Footnote Changes
3. Allows the SFD to use the unencumbered balance of up to $24,613,700 in the New School
Facilities Fund for facilities and land costs for school districts that received final approval from
SFD by December 15, 2023.
4. Allows the SFD to use the unencumbered balance of up to $3,595,000 in the New School
Facilities Fund for construction costs for the Pima Unified School District new high school
construction project that received final approval from SFD on December 15, 2021.
Office of Administrative Hearings (OAH)
Major Footnote Changes
5. Specifies that, in the lump sum appropriation to the OAH, $200,000 must be used to administer
the provisions of a bill addressing insurance provider claims against insurers, if the bill
becomes law in the Fifty-Sixth Legislature, Second Regular Session.
6. Reverts the $200,000 from the lump sum appropriation to the OAH to the state GF, if a bill
addressing provider claims against insurers does not become law.
Arizona Department of Agriculture (AZDA)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2025 Changes
Reduce Salt River Horse Liaison
from Full to Part-Time
GF (25,000)
Centralize IT Position GF (81,000)
Major Footnote Changes
7. Exempts $1,199,600 from the AZDA's FY 2024 lump sum appropriation from lapsing until
June 30, 2026.
FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 3
Arizona Health Care Cost Containment System (AHCCCS)
Ongoing General Fund (GF) and Other Fund (OF)
Summary of Changes Source Comments FY 2025 Changes
Formula GF
FY 2026
FY 2027
6,300,000
15,700,000
Prescription Drug Rebate Fund Shift GF (24,700,000)
Service Administrative Staff to
Reduce Fraud
GF 101 FTEs 3,300,000
Reduced Level of Invalid Payments
from Additional Fee for Service
GF (3,300,000)
Major Footnote Changes
8. Specifies that the appropriated monies for the traditional Medicaid services include $4,098,200
from the state GF and $8,059,900 from expenditure authority for inpatient payments to rural
hospitals.
9. Requires, of the appropriated monies for Proposition 204, $100,000,000 to be used from the
Hospital Assessment Fund to cover a portion of the nonfederal share of the costs of services
and specifies that this amount is included in the expenditure authority.
10. Allows AHCCS, if any graduate medical education monies remain after every eligible graduate
medical education program in counties with a population of fewer than 500,000 persons, to
fund the costs of graduate medical education programs operated by community health centers
and rural health clinics.
Attorney General (AG)
Major Footnote Changes
11. Requires the appropriated monies for Veterans Substance Abuse Treatment grants to be used
for grants to veteran services organizations that treat opioid use disorder in conjunction with
judicial programs that address substance abuse treatment and rehabilitation for veterans.
12. Requires the AG, before spending any monies appropriated for Veteran Substance Abuse
Treatments, to submit an expenditure plan to JLBC for review.
13. Specifies that the Veteran Substance Abuse Treatment monies include $5,000,000 from opioid
claims-related monies deposited in the Consumer Remediation Subaccount of the Consumer
Restitution and Remediation Revolving Fund.
14. Exempts the FY 2024 $12,000,000 appropriation from the Consumer Remediation Subaccount
of the Consumer Restitution and Remediation Revolving Fund from lapsing until June 30, 2025.
FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 4
Department of Child Safety (DCS)
Ongoing General Fund (GF) and Other Fund (OF)
Summary of Changes Source Comments FY 2025 Changes
Operating Budget Increase GF FYs 2024 and 2025 13,300,000
Savings from 50 Vacant Positions GF (6,100,000)
Backfill Social Security Payments No
Longer Retained by the State
GF
FY 2024
FY 2025
3,000,000
5,000,000
Administrative Cost of New Social
Security Payment Policy
GF
FY 2024
FY 2025
800,000
900,000
Shift to Preventive Services to Federal
Funds
GF 5,500,000
Community Based Child Abuse
Prevention
GF 300,000
Children and Family Supports Contract
Increase
GF
FY 2024
FY 2025
6,200,000
5,500,000
Permanent Guardianship Caseload
Increase
GF
FY 2024
FY 2025
3,100,000
4,300,000
Backfill Loss of Federal Congregate
Care Funds
GF FY 2024 14,700,000
In-Home Mitigation Utilization
Adjustment
GF FY 2024 6,300,000
Out-of-Home Support Services
Utilization Adjustment
GF FY 2024 (6,300,000)
Kinship Care Surplus GF
FY 2024
FY 2025
(8,600,000)
(4,200,000)
Foster Care Surplus GF
FY 2024
FY 2025
(11,200,000)
(11,400,000)
Adoption Surplus GF
FY 2024
FY 2025
(10,400,000)
(5,700,000)
Extended Foster Care Line-Item Surplus GF FY 2024 (6,700,000)
Federal Expenditure Authority Savings GF FY 2024 (15,200,000)
Healthy Families Expansion to Federal
Funds
GF (2,500,000)
Major Footnote Changes
15. Specifies that the appropriated monies for caseworkers includes a onetime increase of
$19,700,000 from the state GF in FY 2024 for increased operating expenditures and exempts
the monies from lapsing until June 30, 2025. FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 5
16. Requires DCS, by September 1, 2024, to submit a report to JLBC and the Governor's Office
of Strategic Planning and Budgeting (OSPB) on actual operating expenses for the guardian
case management system in FY 2024 and proposed system operating expenses for FY 2025.
17. Specifies that the appropriated monies for preventive services includes $264,400 from the state
GF to draw down $1,322,000 in additional federal monies associated with the community
-based child abuse prevention block grant.
18. Stipulates, if child abuse prevention block grants are no longer available, that the appropriation
is reduced by $264,400 from the state GF and $1,322,000 from expenditure authority.
Arizona Commerce Authority (ACA)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2025 Changes
Economic Development Marketing
Reduction
GF (500,000)
Community Colleges
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2025 Changes
Formula GF 400,000
Arizona Department of Corrections, Rehabilitation and Reentry (ADCRR)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2025 Changes
Inmate Health Care – Vendor
Contract
GF
FY 2024
FY 2025
9,200,000
107,100,000
Inmate Health Care – Medication
(substance use disorder)
GF
FY 2024
FY 2025
40,700,000
55,000,000
Inmate Health Care – IT Upgrades GF
FY 2024
FY 2025
4,800,000
16,000,000
Inmate Health Care – Staff and
Overtime Costs
GF 6,800,000
Inmate Health Care – Other
Injunction Costs
GF 2,700,000
Inmate Health Care – Savings
Offsets
GF
FY 2024
FY 2025
(39,800,000)
(30,800,000)
Inmate Health Care – Savings
Offsets (Mariana Prison)
GF (9,700,000) FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 6
Summary of Changes Source Comments FY 2025 Changes
Repurpose Community Treatment
for Imprisoned Women Funding
GF FY 2024 (2,000,000)
Substance Abuse Treatment
Reduction
GF (1,500,000)
Private Prison Capacity Savings GF
FY 2024
FY 2025
(800,000)
(14,500,000)
Major Footnote Changes
19. Allows ADCRR to spend the $2,000,000 appropriated by the FY 2023 General Appropriations
Act for the community treatment program for imprisoned women on community corrections
expenditures in FY 2024.
20. Requires the appropriated monies for injunction-related IT upgrades to be used to address
information technology improvements as required by the court in the Jensen V Thornell inmate
health care litigation and exempts the monies from lapsing until June 30, 2025.
21. Requires ADCRR to use the monies appropriated for noncontract medication to purchase
medications to treat Hepatitis C and substance use disorder.
22. Requires ADCRR, before using any monies for noncontract medication, to submit an
expenditure plan for JLBC review.
23. Exempts the monies for noncontract medication from lapsing until June 30, 2025.
24. Requires ADCRR, before spending private prison per diem monies on anything other than
private prison costs, to submit an expenditure plan for JLBC review.
Board of Dental Examiners
Major Footnote Changes
25. Exempts the $9,300 FY 2025 appropriation for annual leave payout from lapsing.
Department of Economic Security (DES)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2025 Changes
Formula – Revertment GF
24,800,000
Reduce Incremental AZEIP Rate
Increase
GF
(2,400,000)
Summary of Changes Source Comments
FY 2025 Changes
Homeless Youth Assistance General
Fund Backfill Delay
GF
(1,000,000)
FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 7
Major Footnote Changes
26. Exempts $800,000 of the FY 2024 appropriation for Graham County Rehabilitation Center
from lapsing until June 30, 2025.
27. Requires, of the $830,000 for Graham County Rehabilitation Center, $800,000 to be used to
remodel the Graham County Rehabilitation facilities in Safford and Willcox.
28. Exempts the FY 2024 appropriation for the Group Home Monitoring Program from lapsing
until June 30, 2026.
29. Prohibits DES from transferring any excess appropriation from the Division of Developmental
Disabilities premium tax payment, case management Medicaid, home and community-based
services Medicaid, institutional services, Medicaid, physical and behavioral health
services – Medicaid, Medicare clawback payments or targeted case management to anything
outside of the developmental disabilities in FY 2024.
30. Requires at least 10 percent of the state GF share of the amount appropriated to DES for
childcare subsidies to be distributed to childcare centers in counties other than Maricopa, Pima
and Pinal Counties.
Arizona Department of Education (ADE)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2025 Changes
Eliminate FY 2024 Ex-Appropriation GF 43,900,000
Formula – TNT Savings GF (9,200,000)
Limit ESA Enrollment to 1.0 ADM GF (2,500,000)
Move Third Year of Incremental Low-
Income Weight Increases to Onetime
GF (37,000,000)
Move Third Year of Incremental Additional
Assistance Increases to Onetime
GF (29,000,000)
Kindergarten Entry Assessment GF (1,500,000)
Move Continuing Highschool
Workforce/Training Program Base Funding
to Onetime
GF (4,600,000)
Move Continuing Highschool
Workforce/Training Program Increase to
Onetime
GF (1,500,000)
Fund Community College Adult Education
Workforce Development Program to
Onetime
GF (4,000,000)
Adult Workforce Diploma Program GF (4,000,000) FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 8
Summary of Changes Source Comments FY 2025 Changes
Adult Education Administration GF (150,000)
Reduce College Credit by Examination
Incentive Program
GF (3,700,000)
Major Footnote Changes
31. Requires ADE to allocate $5,858,000 for onetime charter additional assistance (CAA)
supplement in FY 2025.
32. Requires ADE to distribute the onetime allocation for CAA supplement to charter schools on
a proportional basis based on the CAA funding that each charter school in Arizona receives in
FY 2025.
33. Requires ADE to allocate $23,142,000 for onetime district additional assistance (DAA)
supplement in FY 2025.
34. Requires ADE to distribute the appropriated amount for onetime DAA supplement to school
districts on a proportional basis based on the DAA funding that each district in Arizona
receives in FY 2025.
35. Allows a school district to budget the monies it receives from the onetime DAA supplement in
either the school district's maintenance and operation fund or unrestricted capital outlay fund.
36. Requires ADE to allocate $37,000,000 for onetime Free and Reduced-Price Lunch (FRPL)
group B weight supplement in FY 2025.
37. Requires ADE to distribute the appropriated amount for onetime 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.
38. 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.
39. Allows the FY 2023 appropriation for the East Valley Institute of Technology for transitional
housing to be used for former foster care youth as well as current foster care youth and
increases the eligible age from 21 years old to 23 years old.
40. Requires ADE to distribute the monies appropriated for the Arizona Holocaust Education
Center for the creation and operation of the center as a resource for fulfilling statutory
requirements by August 15, 2024.
41. Exempts the appropriation for the Arizona Holocaust Education Center from lapsing.
42. Specifies that the monies appropriated for adult education include a onetime $6,160,000
allocation for continuing high school and workforce training program, $3,000,000 for onetime
deposit adult workforce diploma program and $3,000,000 for onetime deposit in the
community college adult education. FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 9
43. Requires ADE to allocate the appropriated amount for onetime school meal grants to school
districts and charter schools that participate in the National School Lunch Programs or School
Breakfast Program established under the National School Lunch and Child Nutrition Acts for
grants to reduce or eliminate copayments that would otherwise be charged to children eligible
for reduced-price meals.
44. Stipulates that, if the appropriated amount for school meal grants is insufficient to cover the
grant awards for all eligible grantees, ADE must reduce each grant proportionately to cover all
eligible grantees.
Department of Emergency and Military Affairs (DEMA)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2025 Changes
Risk Management Error Adjustment GF (600,000)
National Guard Matching Fund
Reduction
GF (600,000)
Arizona Department of Environmental Quality (ADEQ)
Major Footnote Changes
45. Allows ADEQ to use up to $400,000 from the Emissions Inspection Fund.
46. Requires ADEQ, before expending any Emissions Inspection Fund monies on operating costs
in excess of the amount appropriated, to report on the intended use of the monies to JLBC.
Arizona Exposition and State Fair Board (State Fair Board)
Major Footnote Changes
47. Removes the footnote specifying that $2,000,000 of the State Fair Board's operating budget is
for enhanced state fair operations.
Department of Forestry and Fire Management (DFFM)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2025 Changes
Reduce Wildfire Mitigation Funding due to
unused ADCRR Inmate Labor
GF
(5,000,000)
Major Footnote Changes
48. Exempts the $27,026,700 for wildfire mitigation from lapsing until June 30, 2027.
49. Exempts the monies appropriated for hazardous vegetation removal from lapsing until June
30, 2026. FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 10
Arizona Department of Gaming (ADG)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2024 Changes
Eliminate Racing Purse
Enhancement Funding
GF
(5,000,000)
Racing Purse Enhancement Funding GF Onetime
4,000,000
Racetrack Capital Projects GF Onetime
1,500,000
Shift HISA Costs to Racing
Regulation Fund
GF
(355,000)
Major Footnote Changes
50. Requires the monies appropriated for the Horseracing Integrity and Safety Act assessment to
be used by ADG during FY 2025 to pay the 2024 assessment.
51. Requires the $4,000,000 appropriated for racing purse enhancements to be distributed to a
recognized nonprofit horsemen's organization that has represented horsemen participating in
racing meetings since 1988 and be used to promote racing and enhance the general purse
structure for eligible horse races in Arizona.
52. Requires the $1,500,000 appropriated for racetrack capital projects and maintenance and
operation funding to be distributed to commercial live racing permittees for capital projects
and track maintenance and operations, including costs associated with the compliance costs
associated with the federal Horseracing Integrity and Safety Act.
53. Specifies that the ADG must allocate $1,500,000 of the amount appropriated for racetrack
capital projects and maintenance and operations funding to a commercial live racing permittee
located in Maricopa County.
Governor
Major Footnote Changes
54. Exempts the FY 2024 appropriation for the Missing Murdered Indigenous People Task Force
from lapsing.
Department of Health Services (DHS)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2025 Changes
AZ Care Check GF
$500k ongoing/
$900k onetime
1,400,000 FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 11
Major Footnote Changes
55. Exempts the $1,000,000 FY 2023 appropriation for the behavioral health care provider loan
repayment program from lapsing until June 30, 2025.
56. Exempts the FY 2023 appropriation for the accelerated nursing programs from lapsing until
June 30, 2025.
57. Exempts the FY 2024 appropriation for nurse-family partnership programs from lapsing until
June 30, 2027.
58. Exempts the $1,000,000 FY 2025 appropriation for combating fentanyl from lapsing until June
30, 2026.
59. Exempts the $1,202,400 FY 2025 appropriation to support additional licensing compliance
staff from lapsing until June 30, 2026.
60. Exempts the FY 2024 appropriation to DHS for psilocybin research from lapsing.
Arizona Department of Homeland Security (AZDOHS)
Major Footnote Changes
61. Allows AZDOHS to use up to $500,000 of statewide cybersecurity grant monies for grant
administration.
Department of Insurance and Financial Institutions (DIFI)
Major Footnote Changes
62. Specifies that $250,000 of the lump sum appropriation to DIFI must be used to administer the
provisions of a bill addressing insurance provider claims against insurers, if the bill becomes
law in the Fifty-Sixth Legislature, Second Regular Session.
63. Reverts the $250,000 from the lump sum appropriation to DIFI to the state GF, if a bill
addressing provider claims against insurers does not become law.
Judiciary
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2025 Changes
Supreme Court – Probation IT
System
GF 2,100,000
Major Footnote Changes
64. Renames the Court Appointed Special Advocate Fund to the Court Appointed Special Advocate
and Vulnerable Persons Fund. FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 12
Arizona State Land Department (ASLD)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2025 Changes
Eliminate Streambed Navigability
Litigation
GF (220,000)
Operating Budget shift to Off-
Highway Vehicle Fund
GF (200,000)
Mine Inspector
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2025 Changes
Aggregate Mining Land
Reclamation
GF (69,000)
Board of Nursing
Major Footnote Changes
65. Exempts the $450,000 FY 2024 appropriation for the Student Registered Nurse Anesthetist
Clinical Rotation Program from lapsing June 30, 2025.
Department of Public Safety (DPS)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2025 Changes
Major Incident Division GF (8,500,000)
Increase State Highway Fund Usage
to Cap
GF (3,600,000)
Increase Local Border Support GF 1,000,000
GIITEM Permanent Vacancy
Savings
GF (700,000)
GIITEM Aid to Other Permanent
Vacancy Savings
GF (200,000)
Pharmaceutical Diversion and Drug
Theft Task Force Excess Funding
GF (100,000)
Civil Air Patrol Maintenance and
Operations Efficiencies
GF (6,000)
FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 13
Major Footnote Changes
66. Requires DPS to distribute FY 2024 appropriated monies for law enforcement retention
initiatives to the following law enforcement agencies (LEAs) for recruitment and retention
services and software as follows:
a) $500,000 to DPS;
b) $200,000 to the Yavapai County Sheriff's Office;
c) $225,000 to the Peoria Police Department;
d) $350,000 to the Tempe Police Department;
e) $125,000 to the Oro Valley Police Department;
f) $175,000 to the Queen Creek Police Department;
g) $150,000 to the Flagstaff Police Department;
h) $150,000 to the Buckeye Police Department; and
i) $125,000 to the Surprise Police Department.
67. Requires each LEA that receives monies for law enforcement retention initiatives to use the
monies to obtain goods and services from a vendor that fulfills outlined requirements.
68. Exempts the monies for law enforcement retention initiatives from lapsing.
Arizona State Parks Board
Major Footnote Changes
69. Specifies that an amount equal to the revenue share agreement with the U.S. 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.
Arizona State Board of Pharmacy
Major Footnote Changes
70. Exempts $64,600 of the FY 2025 lump sum appropriation for annual leave payout from lapsing.
71. Exempts $190,500 of the FY 2023 lump sum appropriation for e-licensing system upgrades
from lapsing until June 30, 2025.
Arizona Department of Real Estate (ADRE)
Major Footnote Changes
72. Specifies that, of ADRE's FY 2025 lump sum appropriation, $400,000 is for information
technology improvements.
Secretary of State (SOS)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2025 Changes
Talking Book Library GF (62,000) FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 14
Major Footnote Changes
73. Exempts the $5,352,200 appropriation for county allocation of Help America Vote Act election
security grant monies from lapsing until June 30, 2025.
74. Requires the SOS, by January 31, 2025, to submit a report to JLBC and OSPB on the actual
expenditures for election services.
75. Allows the SOS to make expenditures or incur indebtedness to employ outside or private
attorneys if:
a) the SOS is named as a defendant.
b) the SOS believes a conflict exists that prevents the AG from representing the SOS; and
c) the SOS either remains a nominal party or is defending the constitutionality of a law or
referendum enacted by the Legislature.
76. Allows the SOS to use up to $250,000 of election services monies for direct costs related to
the 2024 primary and general elections.
Arizona Office of Tourism
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2025 Changes
Reduction in Arizona Promotion GF (200,000)
Arizona Department of Transportation (ADOT)
Major Footnote Changes
77. Specifies that ADOT's operating lump sum includes a $2,000,000 reduction from the State
Highway Fund in FY 2025 from ADOT's Enforcement and Compliance Division.
State Treasurer
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2025 Changes
Reduction in Justice of the Peace
Salaries
GF (500,000)
Board of Technical Registration
Major Footnote Changes
78. Exempts $167,700 from the FY 2023 lump sum appropriation for e-licensing system upgrades
from lapsing until June 30, 2025.
FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 15
Universities
Major Footnote Changes
79. 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 2023, except the universities may allocate the lump sum reduction
of up to 3.45 percent prescribed by the FY 2025 General Appropriations Act.
80. Reduces the FY 2023 appropriation to the Arizona Board of Regents for the Camp Verde meat
processing facility by $9,700,000.
Arizona Department of Water Resources (ADWR)
Ongoing General Fund (GF) and Other Fund (OF) Changes
Summary of Changes Source Comments FY 2025 Changes
Arizona Water Protection Fund Deposit Reduction GF (500,000)
Major Footnote Changes
81. Exempts the $5,000,000 FY 2024 appropriation for statewide water resources planning from
lapsing.
82. Exempts the $2,500,000 appropriation for the ADWR's develop, modernize and consolidate
applications project from lapsing.
FY 2024 Supplemental Appropriations and Adjustments
General Fund (GF) and Other Fund (OF)
Agency Fund Amount
ADOA – Pay Disallowed Costs – Risk Management
Revolving Fund
OF 9,493,000
AHCCCS – Formula Adjustments – Children's Health
Insurance Program Fund
OF 7,527,500
AHCCCS – Formula Adjustments GF (39,944,900)
OSPB – Retirement Cost Technical Adjustment GF 204,600
JLBC – Retirement Cost Technical Adjustment GF 204,600
Superior Court – Superior Court Judge's Compensation –
Criminal Justice Enhancement Fund
OF 813,700
Arizona State Land Department – Central Arizona Project
User Fees
GF (206,700)
Board of Respiratory – Pay Outstanding Costs – Board of
Respiratory Care Examiners Fund
OF 15,100 FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 16
Agency Fund Amount
SOS – Conducting Logic and Accuracy Testing for the 2024
Primary Election
GF 100,000
ADWR – Develop, Modernize and Consolidate Applications
– ADWR's Subaccount in the Automation Projects Fund
(APF) to ADOA
OF 2,500,000
ADOA – Replace Human Resources Information System -
Personnel Division Fund to HRIS Subaccount in APF
OF 3,100,000
FY 2024 Reductions
83. Reduces the FY 2024 lump sum appropriations from the state GF in the following amounts to
the following agencies:
Agency Amount
ADOA – Employee Compensation Study (2,200,000)
Arizona Department of Agriculture – Expanded Information Technology
Support
(300,000)
Arizona Commerce Authority – Rural Broadband Accelerated Match
Fund
(23,600,000)
ADE – Art Consumables (2,500,000)
ADE – Dual Enrollment Student Development Fund (12,000,000)
ADE – Dual Enrollment Student Development Fund (500,000)
ADE – Broadband Expansion Fund (2,500,000)
Arizona Office of Tourism – Culinary Tourism Workforce Development (150,000)
ADOA – Health Care Interoperability Grants (1,520,000)
DCS – Extended Foster Care Service Model (2,720,000)
State Treasurer – City of Glendale Veteran's Community Project (800,000)
Independent Redistricting Commission (IRC)
84. Reverts all monies from the FY 2022 appropriation that remain unexpended and unencumbered
on June 30, 2024, to the state GF.
Rodeo
85. Exempts the $15,000,000 FY 2024 appropriation for improvements to the Yavapai County
Fairgrounds from lapsing.
86. Stipulates that, if a court of competent jurisdiction rules that the monies may not be distributed
to a nonprofit volunteer organization that operates a rodeo at the Yavapai County Fairgrounds
and the judgement is final and definitive, the AG must notify in writing to the Director of
Arizona Legislative Council and the monies revert to the state GF. FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 17
FY 2024 Exemptions from Lapsing
87. Exempts the following amounts appropriated from the state GF in FY 2024 to the following
agencies from lapsing:
Agency Amount
ADOA – Fire Incident Management 12,200,000
Office of Economic Opportunity – Microbusiness Loan 5,000,000
ADE – Arizona Civics Education and Leadership Development
Program
300,000
ADE – Early Education and Career Exploration Program 5,000,000
DHS – Collaborative Care Uptake Fund 1,000,000
AZDOHS – Antihuman Trafficking Grant Fund 10,000,000
AZDOHS – Nonprofit Security Grant Program 5,000,000
Arizona Department of Housing – Homeless Shelter and Services
Fund
40,000,000
DPS – Fentanyl Prosecution, Diversion and Testing Fund 3,000,000
Arizona Board of Regents – Spouses and Dependents of Law
Enforcement Officers Tuition Scholarship Fund
2,000,000
Additional FY 2025 Appropriations and Adjustments
Arizona Department of Administration (ADOA)
88. Appropriates $7,150,650 from the state GF in FY 2025 to ADOA for equal distribution to
counties with a population of fewer than 900,000 persons according to the 2020 U.S.
Decennial Census (2020 Census) to maintain essential county services.
89. Appropriates $500,000 from the state GF in FY 2025 to ADOA for distribution to Graham
County to maintain essential county services.
90. Appropriates $3,000,000 from the state GF in FY 2025 to ADOA for equal distribution to
counties with a population of fewer than 300,000 persons according to the 2020 Census to
supplement the normal cost of the Elected Officials Retirement Plan (EORP) and to amortize
unfunded accrued liability.
91. Allows the counties to use the distributed FY 2025 $3,000,000 appropriation only for
employer contributions to EORP.
92. Appropriates $1,000,000 from the state GF in FY 2025 to ADOA to distribute to the Navajo
Nation for use in establishing electrical connections for individuals without access to
electricity.
Arts Trust Fund
93. Appropriates $2,000,000 from the state GF in FY 2025 to the Arizona Arts Trust Fund. FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 18
Automation Projects Fund (APF)
94. Appropriates the following amounts in FY 2025 from the APF subaccounts to ADOA for the
following automation and information technology projects:
Project Subaccount Amount
Medicaid Enterprise System
Mainframe
Medicaid Enterprise System
Modernization Subaccount
3,396,000
Human Resources Information System
– Replacement
HRIS Subaccount 5,521,200
HRIS – Replacement Automation Projects Fund 1,320,000
Integrated Tax System Modernization
Project
ADOR Subaccount 19,456,800
95. 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.
96. Exempts the FY 2025 appropriations from the APF from lapsing until June 30, 2026.
97. Extends the lapsing date for the following projects:
a) $2,114,300 from the ADOA Subaccount for a Business One-Stop Web Portal until June
30, 2025;
b) $2,000,000 from the APF for Arizona Department of Agriculture Cloud Migration until
June 30, 2026; and
c) $2,500,000 from the Judiciary-Supreme Court Subaccount for statewide community
supervision electronic monitoring system until June 30, 2027.
Arizona Health Care Cost Containment System (AHCCCS)
98. Appropriates $1,000,000 from the state GF in FY 2025 to AHCCCS to distribute to entities
that provide case management for persons with serious mental illness and requires AHCCCS
to distribute the monies to provide a wage increase to providers with fewer than 5,000
members.
Arizona Commerce Authority (ACA)
99. Appropriates $500,000 from the state GF in FY 2025 to the ACA for grants to business centers
and entrepreneur support organizations that provide business training, business coaching and
technical assistance to underserved small business owners.
Department of Economic Security (DES)
100. Allows DES, beginning April 1, 2024, to use up to $25,000,000 from the Budget Stabilization
Fund (BSF) to provide funding for reimbursement grants.
101. Requires DES, before using the BSF monies, to notify the Director of JLBC and the Director
of OSPB. FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 19
102. Requires the BSF appropriation to be fully reimbursed by September 1, 2024, and to be
reimbursed in full as part of the closing process for FY 2024.
103. Prohibits the BSF appropriation from being used for additional programmatic expenditures.
104. Appropriates $250,000 from the state GF in FY 2025 to DES for the distribution of food to
low-income persons living on tribal reservations in Arizona.
105. Appropriates $500,000 from the state GF in FY 2025 to DES to distribute to the Navajo
Nation for women's shelter and social services.
106. Appropriates $500,000 from the state GF in FY 2025 to DES to distribute to the Navajo
Nation for youth programs.
107. Appropriates $500,000 from the state GF in FY 2025 to DES to distribute to nonprofit
organization in Pinal County that provide nutrition, housing and rental assistance programs.
108. Appropriates $2,000,000 from the state GF in FY 2025 to DES for area agencies on aging.
109. Appropriates $1,000,000 from the state GF in FY 2025 to DES to nonprofit organizations
located in Cochise County that provide food distribution services for low-income individuals.
110. Appropriates $1,000,000 from the state GF in FY 2025 to DES for job training and life skills
services for developmentally disabled individuals in areas outside of Maricopa and Pima
Counties.
111. Appropriates $1,000,000 from the state GF in FY 2025 to DES to distribute to the Pascua
Yaqui Tribal Government for social services programs.
Arizona Department of Education (ADE)
112. Appropriates $1,000,000 from the state GF in FY 2025 to ADE high school centers for
success.
113. Appropriates $2,000,000 from the state GF in FY 2025 to ADE to distribute to entities that
provide after school programs to low-income individuals.
114. Appropriates $2,000,000 from the state GF in FY 2025 to ADE for K-12 mental health
telehealth pilot programs that serve individuals outside of Maricopa and Pima Counties.
Arizona Department of Environmental Quality (ADEQ)
115. Appropriates $1,000,000 from the state GF in FY 2025 to ADEQ to conduct a zero-emission
heavy-duty eight-ton pilot program.
Department of Health Services (DHS)
116. Appropriates $500,000 from the state GF in FY 2025 to DHS to distribute to a nonprofit
organization that serves low-income and underserved women and their families to access
preventive health care services. FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 20
117. Appropriates $500,000 from the state GF in FY 2025 to DHS to distribute to nonprofit
organizations that provide counseling services for parents whose children have died as a result
of violence.
118. Appropriates $1,000,000 from the state GF in FY 2025 to DHS for senior health promotion
and coordination in Santa Cruz County.
119. Appropriates $1,000,000 from the state GF in FY 2025 to DHS to distribute to nonprofit
organizations that provide counseling and community services in southern Arizona.
Arizona Department of Homeland Security (AZDOHS)
120. Appropriates $200,000 from the state GF in FY 2025 to the AZDOHS for cybersecurity
programs.
Arizona Department of Housing (ADOH)
121. Appropriates $15,000,000 from the state GF in FY 2025 to the Housing Trust Fund.
Judiciary
122. Appropriates $63,100 from the state GF in FY 2025 to the Arizona Supreme Court to pay for
judicial salary increases.
123. Specifies that, as of January 1, 2025, the annual salary for the Chief Justice of the Arizona
Supreme Court is $222,000 and the annual salary for the other justices of the Arizona Supreme
Court is $215,000.
124. Specifies that, as of January 1, 2026, the annual salary for the Chief Justice of the Arizona
Supreme Court is $232,000 and the annual salary for other justices of the Arizona Supreme
Court is $225,000.
125. Appropriates $252,200 from the state GF in FY 2025 to the Arizona Court of Appeals to pay
for judicial salary increases.
126. Specifies that, as of January 1, 2025, the annual salary for a judge of the Arizona Court of
Appeals is $200,000 and increases the salary to $210,000 on January 1, 2026.
127. Appropriates $819,600 from the state GF in FY 2025 to the Arizona Superior Court to pay
for judicial salary increases.
128. Specifies that, as of January 1, 2025, the annual salary for an Arizona Superior Court judge is
$190,000 and increases the salary to $200,000 on January 1, 2026.
Department of Public Safety (DPS)
129. Appropriates the following amounts from the Peace Officer Training Equipment Fund in FY
2025:
a) $600,000 to the Pinal County Sheriff's Office for a pilot program to connect records
management systems and outlines software requirements; FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 21
b) $1,441,200 for pepperball and pepperball weapons to be distributed to outlined entities;
c) $312,000 to the Maricopa County Attorney's Office for 180-degree simulator for training
de-escalation and crime recreation; and
d) $600,000 to the Yavapai County Sheriff's Office to create simulations for law enforcement
free of charge to other law enforcement agencies.
Secretary of State (SOS)
130. Appropriates $1,000,000 from the state GF in FY 2025 to the SOS for onetime operating
expenses.
Universities
131. Appropriates $1,000,000 from the state GF in FY 2025 to the Arizona Board of Regents for
onetime teacher's academy funding.
FY 2025 Lump Sum Reductions
132. Reduces the following state GF amounts from the lump sum appropriations for the following
budget units in FY 2025:
Agency Amount
ADOA (300,000)
ADOA - SFD (57,100)
Office of Administrative Hearings (34,200)
Arizona Department of Agriculture (671,500)
AHCCCS (1,242,000)
AG (839,000)
Arizona State Board for Charter Schools (97,800)
Arizona Corporation Commission (ACC) (27,600)
Arizona State Schools for the Deaf and the Blind (897,000)
Office of Economic Opportunity (21,000)
DES (3,026,200)
State Board of Education (111,200)
ADE (469,700)
State Board of Equalization (30,000)
DFFM (248,600)
Governor's Office (368,100)
OSPB (101,400)
DHS (719,200)
Arizona Historical Society (83,500)
Prescott Historical Society (35,000) FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 22
Agency Amount
Department of Insurance and Financial Institutions (222,500)
Judiciary – Arizona Supreme Court (386,300)
Judiciary – Arizona Court of Appeals (508,200)
Judiciary – Arizona Superior Court (180,100)
Arizona Department of Juvenile Corrections (ADJC) (1,098,100)
Arizona State Land Department (148,000)
House of Representatives (664,100)
JLBC (107,800)
Arizona Legislative Council (328,100)
Senate (587,300)
Arizona State Lottery Commission (279,800)
Navigable Streams Commission (6,000)
ADRE (110,400)
ADOR (1,748,200)
SOS (463,600)
State Board of Tax Appeals (13,000)
Arizona Office of Tourism (75,800)
Governor's Office of Tribal Relations (2,400)
ABOR (109,200)
ASU (10,995,800)
NAU (4,070,200)
UArizona – Main (6,562,200)
UArizona – Health Sciences (1,469,300)
Arizona Department of Veteran Services (108,200)
ADWR (21,500)
Debt Service Payments
133. Allocates $25,998,700 of state GF revenue in FY 2025 to the Arizona Convention Center
Development Fund.
134. Asserts that the Rio Nuevo Multipurpose Facility District is estimated to receive $17,000,000
from a portion of state transaction privilege tax revenues in FY 2025 and that the actual
amount of distribution will be made as outlined in statute.
FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 23
Fund Transfers
135. Transfers the following amounts, by June 30, 2024, 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 – Certificate of Participation Fund
2,600,000
ADOA – State Employee Travel Reduction Fund 900,000
ADOA – State Web Portal Fund 4,000,000
ADOA – Capitol Mall Consolidation Fund 700,000
ADOA – Fire Incident Management Fund 6,100,000
ADOA – Construction Insurance Fund 8,100,000
ADOA – Cyber Risk Insurance Fund 11,200,000
ADOA – Risk Management Fund 70,000,000
ADOA/SFD – Credit Enhancement Fund 3,000,000
AHCCCS – Prescription Drug Rebate Fund 46,000,000
Athletic Training – Athletic Training Fund 250,000
AG – Anti-Racketeering - Operations 2,600,000
AG – Anti-Racketeering – Pass Through 10,000,000
AG – Collection Enforcement Revolving Fund –
Operating
200,000
Barbering and Cosmetology Board – Barbering and
Cosmetology Fund
12,100,000
Behavioral Health Examiners – Behavioral Health
Examiner Board Fund
4,200,000
Chiropractic Examiners – Chiropractic Examiners
Board Fund
500,000
ACA – Arizona Competes Fund 55,700,000
ACC – Utility Regulation Revolving Fund 2,100,000
ACC – Securities Regulation / Enforcement Fund 25,000,000
ADCRR – Correction Fund 8,000,000
ADCRR – Alcohol Abuse Treatment Fund 2,000,000
ADCRR – Transition Program Fund 4,200,000
ADCRR – Community Corrections Enhancement
Fund
100,000
ADCRR – Arizona Correctional Industries
Revolving Fund
11,491,800
Arizona Criminal Justice Commission – Criminal
Justice Enhancement Fund
800,000 FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 24
Fund Comments Amount
Arizona Criminal Justice Commission – Fingerprint
Clearance Card Fund
700,000
Arizona State Board of Dental Examiners – Dental
Board Fund
2,000,000
Office of Economic Opportunity – Office of
Economic Opportunity Operations Fund
1,000,000
DES – Family Caregiver Grant Program Fund
Transfer
700,000
DES – Special Administration Fund 4,000,000
DES – Economic Security Capital Investments
Fund
500,000
ADEQ – Air Quality Fee Fund 2,300,000
ADEQ – Underground Storage Tank Fund 20,000,000
ADEQ – Vehicle Emissions Inspection Fund 5,000,000
ADEQ – Hazardous Waste Management Fund 900,000
ADEQ – Emergency Response Fund 500,000
ADE – Adult Workforce Diploma Program Fund 3,000,000
ADE – Community College Adult Ed Workforce
Development Program Fund
8,900,000
ADE – Computer Science Professional
Development Program Fund
5,000,000
State Fair Board – Arizona Exposition and State
Fair Fund
5,000,000
Board of Fingerprinting – Board of Fingerprinting
Fund
1,200,000
Arizona Department of Game and Fish –
Watercraft Licensing Fund
800,000
DHS – Disease Control Research Fund 1,300,000
DHS – Prescription Drug Rebate Fund 1,000,000
DHS – Health Services Lottery Fund 3,700,000
Industrial Commission of Arizona – Administration
Fund
2,400,000
Industrial Commission of Arizona – Special Fund 900,000
DIFI – Financial Services Fund 19,600,000
DIFI – Automobile Theft Authority Fund 8,800,000
DIFI – Receivership Revolving Fund 800,000
ADJC – CJEF Distribution Fund 900,000 FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 25
Fund Comments Amount
ADJC – Indirect Cost Recovery Fund 200,000
ASLD – Risk Management Fund 300,000
State Land Department – IGA and ISA Fund 24,000
ASLD – Trust Land Management Fund 34,000,000
Department of Liquor Licenses and Control –
Liquor Licenses Fund
400,000
Department of Liquor Licenses and Control – K
Fund Enforcement Surcharges Fund
200,000
Massage Therapy Board – Massage Therapy Board
Fund
600,000
Medical Board Examiners – Medical Examiners
Board Fund
9,300,000
Mine Inspector – Aggregate Mining Reclamation
Fund
39,000
Naturopathic Physicians Board – Naturopathic
Board Fund
1,700,000
Board of Nursing – Nursing Board Fund 9,400,000
Occupational Therapy Board – Occupational
Therapy Fund
900,000
Board of Optometry – Board of Optometry Fund 400,000
Board of Osteopathic Examiners – Osteopathic
Examiners Board Fund
2,800,000
Arizona State Parks Board – State Parks Revenue
Fund
state GF Share 38,200,000
Pharmacy Board – Pharmacy Board Fund 6,300,000
Physical Therapy Board – Physical Therapy Fund 700,000
Psychologist Examiners – Psychologist Examiners
Board Fund
1,800,000
DPS – Fingerprint Clearance Card Fund 3,900,000
DPS – DPS Licensing Fund 100,000
DPS – GIITEM Fund 1,000,000
DPS – Records Processing Fund 200,000
DPS – Public Safety Equipment Fund 500,000
Residential Utility Consumer Office – Residential
Utility Consumer Office Revolving Fund
400,000
Board of Technical Registration – Technical
Registration Board Fund
5,600,000
ADOT – Economic Strength Project Fund 600,000 FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 26
Fund Comments Amount
ADOT – Highway Damage Recovery Fund 1,000,000
ADOT – State Aviation Fund 15,000,000
ADOT – State Highway Fund – Interest Transfers
FY 2024
FY 2025
FY 2026
FY 2027
26,000,000
18,700,000
15,000,000
10,000,000
ADOT – Abandoned Vehicles Administration Fund 400,000
ADOT – Shared Location and Advertisement
Agreement Expense Fund
100,000
ADOT – Motor Vehicle Dealer Enforcement Fund 300,000
ADOT – Highway Expansion and Extension Loan
Program Fund
4,000
ADOT – State Highway Fund Vehicle License Tax
Transfer
3,000,000
ADOT – Arizona Highways Magazine Fund 500,000
State Treasurer – State Treasurer's Operating Fund 900,000
Veterinary Medical Examiners Board – Veterinary
Medical Examiners Board Fund
1,700,000
WIFA – Water Supply Development Revolving
Fund
51,600,000
WIFA – Water Supply Development Revolving
Fund Interest
8,100,000
WIFA – Long Term Water Augmentation Fund 78,000,000
WIFA – Long Term Water Augmentation Fund
Interest
19,300,000
ADWR – Temporary Groundwater and Irrigation
Efficiency Projects Fund
600,000
ADWR – Assured and Adequate Water Supply
Fund
200,000
ADWR – Water Protection Fund 1,000,000
Attorney General (AG)
136. Appropriates $75,000,000 from the Consumer Restitution Subaccount (subaccount) of the
Consumer and Remediation Revolving Fund in FY 2024 to the AG and specifies that the
monies consist of monies deposited in the subaccount pursuant to opioid claims-related
litigation or settlements.
137. Requires the AG, by June 20, 2024, to transfer the $75,000,000 to the ADCRR Opioid
Remediation Fund. FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 27
138. Prohibits the AG from imposing any conditions on the transfer of the monies in the ADCRR
Opioid Remediation Fund unless prescribed in the FY 2025 General Appropriations Act.
139. Stipulates that, if the AG does not transfer the full amounts specified by June 20, 2024, the
General Accounting Office of ADOA must directly transfer the amount from the subaccount
to the ADCRR Opioid Remediation Fund.
140. Appropriates $40,000,000 from the Subaccount of the Consumer Restitution and Remediation
Revolving Fund to the AG.
141. Requires the AG, by July 3, 2024, or if sufficient monies are not available on July 3, 2024,
within three calendar days after sufficient monies become available, to transfer the
$40,000,000 to the ADCRR Opioid Remediation Fund.
142. Appropriates $3,000,000 from the Subaccount of the Consumer Restitution and Remediation
Revolving Fund to the AG.
143. Requires the AG, by July 3, 2024, or if sufficient monies are not available on July 3, 2024,
within three calendar days after sufficient monies become available, to transfer the $3,000,000
to the DEMA Opioid Remediation Fund.
144. Appropriates $1,000,000 from the Subaccount of the Consumer Restitution and Remediation
Revolving Fund to the AG.
145. Requires the AG, by July 3, 2024, or if sufficient monies are not available on July 3, 2024,
within three calendar days after sufficient monies become available, to transfer the $3,000,000
to DHS Opioid Remediation Fund.
146. Requires ADCRR, DEMA and DHS 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.
147. Stipulates that, if the AG does not transfer the full amounts specified by July 3, 2024, the
General Accounting Office of ADOA must directly transfer the amount from the subaccount
to the DEMA Opioid Remediation Fund, DHS Opioid Remediation Fund or the ADCRR
Opioid Remediation Fund.
148. Exempts the AG monies from lapsing.
Payment Deferrals
149. Continues to defer $800,727,700 in Basic State Aid (BSA) and additional state aid (ASA)
payments from ADE in FY 2025 until after June 30, 2025, but no later than July 12, 2025,
and excludes charter schools and school districts with a student count less than 4,000 pupils
from the deferral.
150. 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 – Amended/Enacted
S.B. 1735/H.B. 2897
Page 28
151. Requires ADE to disburse the FY 2026 appropriations of $800,727,700 to the counties for the
school districts starting July 1, 2025, and no later than July 12, 2025, in amounts equal to the
reductions in the apportionment of BSA and ASA.
152. Requires school districts to include, in the revenue estimates used for computing FY 2025 tax
rates, the deferred appropriation monies that the districts will receive.
Statewide Operating Adjustments
General Fund (GF) and Other Fund (OF)
Area of Adjustment GF OF Total
Employer Health Insurance
Contribution Reduction
(72,766,200) (21,596,800) (94,363,000)
Employer Health Insurance
Contribution Increase
140,000,000 60,000,000 200,000,000
State Fleet Rate Reduction (8,195,100) (5,453,800) (13,648,900)
State Fleet Rate Increase 3,299,000 1,625,000 4,924,000
Human Resources Information
System Charge Reduction
(8,009,300) (4,644,700) (12,654,000)
Arizona Financial Information
System Adjustment
(834,000) (839,700) (1,673,700)
Agency Retirement Adjustment 7,180,000 500,000 7,680,000
Agency Rent Adjustment 0 160,000 160,000
153. Prescribes statewide adjustment procedures and instructions.
154. Outlines the FY 2025 individual agency charges totaling $1,798,500 for general agency
counsel provided by the Attorney General.
FY 2026 Appropriations
155. Appropriates $45,077,100 from the state GF in FY 2026 for a onetime deposit in the New
School Facilities Fund.
156. Requires the SFD to use monies only for facilities that will be constructed for school districts
that received final approval from SFD by December 15, 2023.
Miscellaneous
157. 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.
158. Contains other reporting requirements.
159. Defines terms.
160. Becomes effective on the signature of the Governor. FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 29
Amendments Adopted by Committee of the Whole
1. Declares the Legislature's intent that the appropriation to ADE for BSA be increased in FY
2028 to continue the funding allocated on an ongoing basis.
2. Outlines requirements for the allocation of the FY 2024 appropriation to DPS for law
enforcement retention initiative and the goods and services on which the monies can be spent.
3. Exempts the monies for law enforcement retention initiatives from lapsing.
4. Specifies that $200,000 of the lump sum appropriation to the OAH must be used to administer
the provisions of a bill addressing insurance provider claims against insurers, if the bill
becomes law in the Fifty-Sixth Legislature, Second Regular Session.
5. Reverts the $200,000 from the lump sum appropriation to the OAH to the state GF if a bill
addressing provider claims against insurers does not become law.
6. Specifies that $3,606,700,000 of the appropriated monies from the Expenditure Authority Fund
is for hospital enhanced access leading to health improvements initiative payments in FY 2025
and the monies include monies from hospital assessments and any federal monies used to
match those payments.
7. Requires that at least 10 percent of the state GF share of the amount appropriated to DES for
child care subsidies be distributed to child care centers in counties other than Maricopa, Pima
and Pinal Counties.
8. Reduces the ADE appropriation for adult education from $17,058,900 to $16,898,900.
9. Increases the ADE appropriation for English learner administration from $6,597,000 to
$11,597,000.
10. Reallocates the $20,000 ADE appropriation for the Flagstaff robotics program as follows:
a) $10,000 for the Flagstaff robotics program; and
b) $10,000 to the Show Low robotics program.
11. Reduces the onetime $6,000,000 allocation for Continuing High School and Workforce
Training Program.
12. Increases each onetime $3,000,000 allocation for the Adult Workforce Diploma Program and
Community College Adult Education Workforce Development Program Fund to $4,000,000.
13. Requires ADEQ, before expending any Emissions Inspection Fund monies on operating costs
in excess of the amount appropriated, to report on the intended use of the monies to JLBC.
14. Requires $3,771,400 of the monies appropriated in the State Fair Board lump sum to be spent
to enhance state fair operations. FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 30
15. Requires the State Fair Board, before spending monies on capital projects, to submit a report
for review to the Joint Committee on Capital Review on the scope, purpose and estimated cost
of the capital improvements.
16. Appropriates $1,500,000 to the ADG for racetrack capital projects and maintenance and
operation funding and $4,000,000 for racing purse enhancement and outlines the allowable
uses of the monies.
17. Exempts the FY 2024 appropriation to DHS for psilocybin research from lapsing.
18. Appropriates $15,000,000 from the state GF in FY 2025 to the Housing Trust Fund.
19. Exempts the FY 2023 appropriation to the Homeless Services Grant Pilot from lapsing.
20. Specifies that $250,000 of the lump sum appropriation to DIFI must be used to administer the
provisions of a bill addressing insurance provider claims against insurers, if the bill becomes
law in the Fifty-Sixth Legislature, Second Regular Session.
21. Reverts the $250,000 from the lump sum appropriation to DIFI to the state GF, if a bill
addressing provider claims against insurers does not become law.
22. Increases the appropriated FTE positions to the Arizona Supreme Court from 203 to 205.
23. Renames the Court Appointed Special Advocate Fund to the Court Appointed Special Advocate
and Vulnerable Persons Fund.
24. Increases the appropriation to the Arizona Superior Court for juvenile crime reduction by $600.
25. Appropriates $100,000 from the state GF to the ASPB for the Arizona Trail.
26. Reduces the reduction to ADOT's enforcement and compliance division from $3,000,000 to
$2,000,000.
27. Reduces the FY 2023 appropriation to ABOR for the Camp Verde meat processing facility by
$9,700,000.
28. Removes the reallocation of the FY 2024 Brackish Groundwater Pilot Program from ADWR
to the Water Infrastructure Finance Authority.
29. Exempts the $2,500,000 for the ADWR's develop, modernize and consolidate applications
project from lapsing.
30. Reduces the FY 2024 reduction to dual enrollment student development from $15,000,000 to
$12,000,000.
31. Reduces the FY 2024 reduction to the Arizona Office of Tourism for culinary tourism
workforce development from $250,000 to $150,000.
32. Reduces the FY 2024 appropriation to ADOA for health care interoperability grants by
$1,520,000. FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 31
33. Reduces the FY 2024 appropriation to DCS for extended foster care service model by
$2,720,000.
34. Reduces the FY 2024 appropriation to the State Treasurer distribution to the City of Glendale
for a veterans' community project by $800,000.
35. Appropriates $2,000,000 from the state GF in FY 2025 for onetime deposit in the Arizona Arts
Trust Fund.
36. Appropriates specified amounts in FY 2025 for judicial salary increases and sets salary
amounts for Arizona Supreme Court justices and Arizona Superior Court and Court of Appeals
judges.
37. Outlines the FY 2025 appropriation from the Peace Officer Equipment Fund.
38. Removes the Ombudsman-Citizens Aide Office from the lump sum appropriation reduction.
39. Appropriates $1,000,000 from the state GF in FY 2025 to ADOA to distribute to the Navajo
Nation for use in establishing electrical connections for individuals without access to
electricity.
40. Appropriates $1,000,000 from the state GF in FY 2025 to AHCCCS to distribute to entities
that provide case management for persons with serious mental illness and requires AHCCCS
to distribute the monies to provide a wage increase to providers with fewer than 5,000
members.
41. Appropriates $500,000 from the state GF in FY 2025 to the ACA for grants to business centers
and entrepreneur support organizations that provide business training, business coaching and
technical assistance to underserved small business owners.
42. Appropriates $250,000 from the state GF in FY 2025 to DES for the distribution of food to
low-income persons living on tribal reservations in Arizona.
43. Appropriates $500,000 from the state GF in FY 2025 to DES to distribute to the Navajo Nation
for women's shelter and social services.
44. Appropriates $500,000 from the state GF in FY 2025 to DES to distribute to the Navajo Nation
for youth programs.
45. Appropriates $500,000 from the state GF in FY 2025 to DES to distribute to nonprofit
organizations in Pinal County that provide nutrition, housing and rental assistance programs.
46. Appropriates $2,000,000 from the state GF in FY 2025 to DES for area agencies on aging.
47. Appropriates $1,000,000 from the state GF in FY 2025 to DES to nonprofit organizations
located in Cochise County that provide food distribution services for low-income individuals. FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 32
48. Appropriates $1,000,000 from the state GF in FY 2025 to DES for job training and life skills
services for developmentally individuals with disabilities in areas outside of Maricopa and
Pima Counties.
49. Appropriates $1,000,000 from the state GF in FY 2025 to ADE high school centers for success.
50. Appropriates $2,000,000 from the state GF in FY 2025 to ADE to distribute to entities that
provide after school programs to low-income individuals.
51. Appropriates $2,000,000 from the state GF in FY 2025 to ADE for K-12 mental health
telehealth pilot programs that serve individuals outside of Maricopa and Pima Counties.
52. Appropriates $1,000,000 from the state GF in FY 2025 to ADEQ to conduct a zero-emission
heavy-duty eight-ton pilot program.
53. Appropriates $500,000 from the state GF in FY 2025 to DHS to distribute to a nonprofit
organization that serves low-income and underserved women and their families to access
preventive health care services.
54. Appropriates $500,000 from the state GF in FY 2025 to DHS to distribute to nonprofit
organizations that provide counseling services for parents whose children have died as result
of violence.
55. Appropriates $1,000,000 from the state GF in FY 2025 to DHS for senior health promotion
and coordination in Santa Cruz County.
56. Appropriates $1,000,000 from the state GF in FY 2025 to DES to distribute to the Pascua
Yaqui Tribal Government for social services programs.
57. Appropriates $1,000,000 from the state GF in FY 2025 to DHS to distribute to nonprofit
organizations that provide counseling and community services in southern Arizona.
58. Appropriates $200,000 from the state GF in FY 2025 to the AZDOHS for cybersecurity
programs.
59. Appropriates $1,000,000 from the state GF in FY 2025 to the Arizona Board of Regents for
onetime teacher's academy funding.
60. Appropriates $1,000,000 from the state GF in FY 2025 to the SOS for onetime operating
expenses.
61. Appropriates $500,000 from the state GF in FY 2025 to the ADVS to distribute to veterans'
centers that provide referral services for employment and job training, housing and utility
assistance.
62. Increases the transfer from the Prescription Drug Rebate Fund from $40,000,000 to
$46,000,000. FACT SHEET – Amended/Enacted
S.B. 1735/H.B. 2897
Page 33
63. Transfers $5,000,000 from the Computer Science Professional Development Program Fund to
the state GF.
64. Transfers $800,000 from the Arizona Game and Fish Department Watercraft Licensing Fund
to the state GF.
65. Increases the transfer from the Financial Services Fund to the state GF from $18,400,000 to
$19,600,000.
66. Removes the transfers from the Insurance Examiners Revolving Fund, Captive Insurance
Regulatory and Supervision Fund and Financial Surveillance Fund to the state GF.
67. Appropriates specified opioid claims-related amounts from the Consumer Restitution
Subaccount of the Consumer and Remediation Revolving Fund and prescribes transfer
timelines and requirements for the AG and ADOA.
68. Exempts the AG monies from lapsing.
69. Makes technical and conforming changes.
House Action Senate Action
APPROP 6/13/24 DP 9-7-1-0 APPROP 6/13/24 DP 6-5-0
3
rd
Read 6/15/24 34-21-5 3
rd
Read 6/15/24 17-12-1
(H.B. 2897 was substituted for S.B. 1735 on
3
rd
Read)
Signed by the Governor 6/18/24
Chapter 209
Prepared by Senate Research
June 21, 2024
LMM/cs