HB 2897
Initials JB Page 1 House Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
House: APPROP DP 9-7-1-0
HB 2897: general appropriations act; 2024-2025
Sponsor: Representative Livingston (with permission of committee on
Rules), LD 28
House Engrossed
Overview
Appropriates monies for the operation of the state government in FY 2025.
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 ongoing General Fund (GF) and other fund (OF) changes
for appropriated state agencies in FY 2025 stated in terms of changes to the FY 2025 JLBC
Baseline.
Major footnotes are stated in terms of changes to the FY 2024 General Appropriations Act.
Summary of
Changes
Fund Comments
FY 2025 Changes
to JLBC Baseline
Arizona Department of Administration (ADOA) (Sec. 15)
Arizona State
Hospital complaints
GF 1 Ombudsmen FTE $150,000
Eliminate southwest
defense contracts
GF $(25,000)
1. Requires the amount appropriated for a school district health insurance actuarial study
to be used to conduct an arterial study of the costs and benefits for school district optional
participation in the state health insurance program.
2. Requires ADOA, by December 31, 2024, to submit a report to the Governor, the President
of the Senate, the Speaker of the House of Representatives and the Director of Joint
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2897
Initials JB Page 2 House Engrossed
Legislative Budget Committee (JLBC) on the findings of the school district health
insurance arterial study.
ADOA – School Facilities Division (SFD) (Sec. 16)
Building Renewal
Grant Funding
GF Onetime $183,000,000
3. Authorizes 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 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 SFD approval by December 15, 2021.
Office of Administrative Hearings (OAH) (Sec. 17)
5. Appropriates $200,000 to OAH to be used to administration the provisions of a bill
addressing insurance provider claims against insurers if the bill becomes law in the 56th
Legislature, 2
nd
Regular Session.
6. Reverts the $200,000 from the lump sum appropriation to OAH Hearings to the GF if a
bill addressing provider claims against insurers does not become law.
Arizona Department of Agriculture (AZDA) (Sec. 5, 18)
Salt River horse
liaison
GF
Reduce from full-time to part-
time;
$(25,000)
Centralize IT Position GF $(81,000)
7. Exempts $1,199,600 from AZDA's lump sum appropriation from lapsing until June 30,
2026.
Arizona Healthcare Cost Containment System (AHCCCS) (Sec. 19)
Formula GF
$6,300,000 FY 2026
$15,700,000 FY 2027
Prescription Drug
Rebate Fund shift
GF $(24,700,000)
Fraud reduction GF
Service administrative staff to
reduce fraud;
$3,300,000
Invalid payments GF
Reduced level of invalid
payments from additional fee for
service;
$(3,300,000) HB 2897
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8. States the appropriated funds for the traditional Medicaid services includes $4,098,200
from the state GF and $8,059,900 from expenditure authority for inpatient payments to
rural hospitals.
9. Directs of the appropriated monies for Proposition 204 that $100,000,000 be used from
the Hospital Assessment Fund to cover a portion of the nonfederal share of the costs of
services and specifies this amount is included in the expenditure authority.
10. Allows AHCCCS, if any graduate medical education monies remain after every eligible
graduate medical education programs in counties with a population less than 500,000, to
fund the costs of graduate medical education programs operated by community health
centers and rural health clinics.
Attorney General (AG) (Sec. 21)
9. Requires the appropriated monies for Veterans Substance Abuse Treatment grants 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.
10. Directs the AG, before spending any monies appropriated for Veteran Substance Abuse
Treatments, to submit an expenditure plan to JLBC for review.
11. Specifies that the Veteran Substance Abuse Treatments monies includes $5,000,000 from
opioid claims-related monies deposited into the Consumer Remediation Subaccount of the
Consumer Restitution and Remediation Revolving Fund.
12. 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.
13. Stipulates that the $5,000,000 from opioid claims-related monies in the Veterans
Substance Abuse Treatments Grants line item may only be used for approved purposes
as defined in a court order, a settlement agreement or the one Arizona Distribution of
Opioid Settlement Funds Agreement that is entered into by this state and other parties
to the opioid litigation.
Department of Child Safety (DCS) (Sec. 24)
Operating budget
increase
GF FY 2024 and 2025 $13,300,000
Caseworkers GF Vacancy savings $(6,100,000)
Social Security
payments
GF
Backfill Social Security payments
no longer retained by state
$3,000,000 FY 2024
$5,000,000 FY 2025
Administrative cost of
new social security
payment policy
GF
$800,000 FY 2024
$900,000 FY 2025 HB 2897
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Shift preventive
services to federal
funds
GF $(5,500,000)
Community based
child abuse prevention
GF $300,000
Children and Family
Supports Contract
Increase
GF
$6,200,000 FY 2024
$5,500,000 FY 2025
Permanent guardian
caseload increase
GF
$3,100,000 FY 2024
$4,300,000 FY 2025
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
$(8,600,000) FY 2024
$(4,200,000) FY 2025
Foster care surplus GF
$(11,200,000) FY 2024
$(11,400,000) FY 2025
Adoption surplus GF
$(10,400,000) FY 2024
$(5,700,000) FY 2025
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
GF Fund with federal monies; $(2,500,000)
14. Specifies 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.
15. 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. HB 2897
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16. Specifies 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.
17. Stipulates, if child abuse prevention block grants are no longer a vailable the
appropriation is reduced by $264,400 from the state GF and $1,322,000 from expenditure
authority.
Arizona Commerce Authority (Sec. 26)
Economic
development
marketing reduction
GF $(500,000)
Community Colleges (Sec. 27)
Formula GF $400,000
Arizona Department of Corrections (ADC) – Inmate Healthcare
Vendor contract GF
$9,200,000 FY 2024
$107,100,000 FY 2025
Medication GF Substance use disorder
$40,700,000 FY 2024
$55,000,000 FY 2025
IT upgrades GF Ongoing
$4,800,000 FY 2024
$16,000,000 FY 2025
Staff and overtime
costs
GF Includes 84 new FTEs $6,800,000
Inmate health care
other costs
GF $2,700,000
Savings offsets GF
Vacancy savings, Medicaid
reimbursements
$(39,800,000) FY 2024
$(30,800,000) FY 2025
Savings offsets GF Marana prison $(9,700,000)
ADC
Repurpose community
treatment for
GF FY 2024 $(2,000,000) HB 2897
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imprisoned women
funding
Substance abuse
treatment reduction
GF $(1,500,000)
Private prisons
capacity savings
GF
$(800,000) FY 2024
$(14,500,000) FY 2025
18. Allows ADC to spend $2,000,000 from FY 2023 for the community treatment program for
imprisoned women on community corrections expenditures in FY 2024.
19. Directs the appropriated monies for injunction-related IT upgrades 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.
20. Requires ADC to use the appropriated monies for noncontract medication to purchase
medications to treat Hepatitis C and substance use disorder.
21. Requires ADC, before using any monies for noncontract medication, to submit an
expenditure plan for JLBC review.
22. Exempts the monies for noncontract medication from lapsing until June 30, 2025.
23. Directs ADC, 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 (Sec. 34)
24. Exempts the $9,300 FY 2025 appropriation for annual leave payout from lapsing.
Department of Economic Security (DES) (Sec. 36)
Formula GF Revertment $24,800,000
Arizona Early
Intervention Program
(AZEIP)
GF
Reduce incremental AZEIP rate
increase
$(2,400,000)
Homeless youth
assistance GF backfill
delay
GF $(1,000,000)
25. Exempts the $800,000 FY 2024 appropriation for Graham County Rehabilitation Center
from lapsing until June 30, 2025.
26. Requires of the $830,000 for Graham County Rehabilitation Center that $800,000 be used
to remodel the Graham County Rehabilitation facilities in Safford and Willcox.
27. Exempts the FY 2024 appropriated monies for the Group Home Monitoring Program from
lapsing until June 30, 2026.
28. Prohibits DES from transferring any excess appropriation from the DDD premium tax
payment, case management Medicaid, home and community -based services Medicaid, HB 2897
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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.
29. Declares that of the GF share of the amount appropriated to DES for Child Care Subsidy,
at least 10% must be distributed to childcare centers outside of Maricopa, Pima and Pinal
counties.
Arizona Department of Education (ADE) (Sec. 38)
Eliminate FY 2024
Ex-Appropriation
GF $43,900,000
Formula GF TNT savings $(9,200,000)
Empowerment
Scholarship Account
(ESA) enrollment
GF
Limits ESA enrollment to 1.0
average daily membership (ADM)
$(2,500,000)
Low-income weight
increases
GF
Moves 3
rd
year of incremental
low-income weight increases to
one-time
$(37,000,000)
Additional assistance
increases
GF
Moves 3
rd
year of incremental
additional assistance increases to
one-time
$(29,000,000)
Kindergarten entry
assessment
GF $(1,500,000)
Highschool
workforce/training
GF
Moves Continuing Highschool
Workforce/Training Program
base funding to one-time
$(4,600,000)
Highschool
workforce/training
GF
Moves continuing Highschool
workforce/training program
increase to one-time
$(1,500,000)
Community College
Adult Education
Workforce
Development Program
GF
Fund Community College Adult
Education Workforce
Development Program to one-
time
$(4,000,000)
Adult Workforce
Diploma Program
GF $(4,000,000)
Adult education
administration
GF $(150,000)
Reduce College Credit
by Examination
Program
GF $(3,700,000)
Flagstaff robotics
program
GF $ 10,000 HB 2897
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Show Low Robotics
Program
GF $10,000
30. Directs ADE to allocate $5,858,000 for onetime charter additional assistance supplement
in FY 2025.
31. Instructs ADE to distribute the onetime allocation for charter additional assistance
supplement to charter schools on a proportional basis based on the charter additional
assistance funding that each charter in Arizona receives in FY 2025.
32. Requires ADE to allocate $23,142,000 for onetime district additional assistance
supplement in FY 2025.
33. Requires ADE to distribute the appropriated amount for onetime district additional
assistance supplement to school districts on a proportional basis based on the district
additional assistance funding that each district in Arizona receives in FY 2025.
34. Allows a school district to budget the monies it receives from the onetime district
additional assistance supplement to the school district's maintenance and operation fund
or unrestricted capital outlay fund.
35. Requires ADE to allocate $37,000,000 for onetime free and reduced-price lunch (FRPL)
group B weight supplement in FY 2025.
36. Directs 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.
37. 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.
38. Allows the FY 2023 appropriation for the East Valley Institute of Technology for
transitional housing be used for former foster care youth as well as current foster care
youth and increases the eligible age from 21 to 23.
39. 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.
40. Exempts the appropriation for the Arizona Holocaust Education Center from lapsing.
41. Specifies the appropriated monies for adult education includes 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.
42. 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 for grants to reduce or eliminate copayments that
would otherwise be charged to children eligible for reduced-price meals.
43. Stipulates 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. HB 2897
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44. Increases the ADE appropriation for English learner administration from $6,597,000 to
$11,597,000.
Department of Emergency and Military Affairs (DEMA) (Sec. 39)
Risk management GF Error adjustment $(600,000)
National Guard
Matching
GF Reduction; ongoing $(600,000)
45. Specifies monies to assist local law enforcement fentanyl interdiction are from the
Consumer Remediation Subaccount of the Consumer Restitution and Remediation
Revolving Fund and consist of deposited monies related to opioid claims-related litigation
or settlements.
Arizona Department of Environmental Quality (ADEQ) (Sec. 40)
46. Authorizes ADEQ to use up to $400,000 from the Emissions Inspection Fund.
47. Requires ADEQ, before expending any Emissions Inspection Fund monies on operating
costs, to report on the intended uses of monies to JLBC.
Arizona Exposition and State Fair Board (State Fair Board) (Sec. 44)
48. Strikes the footnote specifying $2,000,000 of the State Fair Board's operating budget is
for enhanced state fair operations.
49. Appropriates $3,711,400 to the State Faire Board from the Arizona Exposition and State
Fair Fund to be used to enhance state fair operations. Requires the State Fair Board to
report to the Joint Committee on Capital Review before spending monies on capital
projects.
Arizona Department of Forestry and Fire Management (Sec. 45)
Wildfire mitigation GF
Reduction due to unused ADC
inmate labor
$(5,000,000)
50. Exempts the $27,026,700 for wildfire mitigation from lapsing until June 30, 2027.
51. Exempts the appropriated monies for hazardous vegetation removal from lapsing until
June 30, 2026.
Arizona Department of Gaming (ADG) (Sec. 47)
Racing Division GF
Eliminate racing purse
enhancement funding
$(5,000,000)
Racing Purse
Enhancement
Funding
GF Onetime $4,000,000 HB 2897
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Racetrack Capital
Projects
GF Onetime $1,500,000
Racing Division GF
Shift Horseracing Integrity and
Safety Act costs to Racing
Regulation Fund
$(355,000)
52. Requires the monies appropriated for the Horseracing Integrity and Safety Act
assessment to be used to by ADG during FY 2025 to pay the 2024 assessment.
53. Requires the $1,500,000 appropriated for racetrack capital projects and maintenance and
operation funding be distributed to commercial live racing permittees for capital projects
and track maintenance and operations.
Office of the Governor (Sec. 48)
54. Exempts the FY 2024 appropriation for the Missing Murdered Indigenous People Task
Force from lapsing.
Department of Health Services (DHS) (Sec. 50)
AZ Care Check GF
$500K ongoing
$900K one-time
$1,400,000
55. Exempts the $1,000,000 FY 2023 appropriation for 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. Specifies monies in the fentanyl overdose medication distribution are from the Consumer
Remediation Subaccount of the Consumer Restitution and Remediation Revolving Fund
and consists of deposited monies from opioid claims-related litigation or settlements.
60. Exempts the $1,202,400 FY 2025 appropriation to support additional licensing
compliance staff from lapsing until June 30, 2026.
61. Exempts the FY 2024 $5,000,000 appropriation for psilocybin research from lapsing.
Department of Homeland Security (AZDHS) (Sec. 54)
62. Allows AZDHS to use up to $500,000 of statewide cybersecurity grant monies for grant
administration.
Arizona Judiciary (Sec. 59, 124-126) HB 2897
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Supreme Court
Probation IT System GF $2,100,000
63. Renames the Court Appointed Special Advocate Fund to the Court Appointed Special
Advocate and Vulnerable Persons Fund.
64. Increases the Superior Court Juvenile Crime Reduction line item by $600.
65. Appropriates $63,100 from the state GF in FY 2025 to the Supreme Court to pay for
judicial salary increases.
66. Specifies as of January 1, 2025, that the annual salary for the Chief Justice of the
Supreme Court is $222,000 and the annual salary for the other justices of the Supreme
Court is $215,000.
67. Specifies as of January 1, 2026, that the annual salary for the Chief Justice of the
Supreme Court is $232,000 and the annual salary for other justices of the Supreme
Court is $225,000.
68. Appropriates $252,200 from the state GF in FY 2025 to the Court of Appeals to pay for
judicial salary increases.
69. Specifies as of January 1, 2025, the annual salary for a judge of the Court of Appeals is
$200,000 and increases the salary to $210,000 on January 1, 2026.
70. Appropriates $819,600 from the state GF in FY 2025 to the Superior Court to pay for
judicial salary increases.
71. Specifies as of January 1, 2025, to the annual salary for a Superior Court judge is
$190,000 and increases to $200,000 on January 1, 2026 the Superior Court Juvenile
Crime Reduction line item by $600.
Department of Housing (Sec. 56)
Housing Trust Fund
Deposit
GF $15,000,0000
Department of Insurance and Financial Institutions (DIFI) (Sec. 58)
72. Appropriates $250,000 to DIFI to be used to administration the provisions of a bill
addressing insurance provider claims against insurers if the bill becomes law in the
56th Legislature, 2nd Regular Session. These monies revert back to the GF if the bill
addressing insurance provider claims against insurers does not become law.
State Land Department (Sec. 61)
Eliminate streambed
navigability litigation
GF $(220,000) HB 2897
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Operating budget GF
Shift to Off-Highway Vehicle
Fund
$(200,000)
Arizona State Mine Inspector (Sec. 67)
Aggregate Mining
Land Reclamation
GF $(69,000)
Board of Nursing (Sec. 70)
73. 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) (Sec. 84)
Major incident
division
GF Cap at 60 FTEs $(8,500,000)
Increase State
Highway Fund (SHF)
GF Increase SHF usage to cap $(3,600,000)
Increase Local Border
Support
GF $1,000,000
Gang & Immigration
Intelligence Team
Enforcement Mission
(GIITEM)
GF Permanent vacancy savings $(700,000)
GIITEM aid to other
permanent vacancy
savings
GF $(200,000)
Pharmaceutical
Diversion and Drug
Theft Task Force
GF Excess funding $(100,000)
Civil Air Patrol GF
Maintenance and operations
efficiencies
$(6,000)
74. Requires DPS to distribute the amount appropriated for Law Enforcement Retention
Initiatives in FY 2024 to the following law enforcement agencies for recruitment and
retention services and software:
a) $500,000 to DPS;
b) $200,000 to the Yavapai County Sheriff's Office;
c) $225,000 to the Peoria Police Department;
d) $335,000 to the Tempe Police Department;
e) $125,000 to the Oro Valley Police Department; HB 2897
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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.
75. Exempts the distributed monies from the Law Enforcement Retention Initiatives Line
Item from lapsing and outlines requirements for how the law enforcement agencies may
spend the funds.
76. 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;
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.
Arizona State Parks Board (Sec. 76)
77. Specifies an amount equal to the revenue share agreement with the United States 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.
78. Appropriates $100,000 to the Arizona State Parks Board from the GF to be deposited into
the Arizona Trail Fund.
Arizona State Board of Pharmacy (Sec. 78)
79. Exempts the $64,600 for annual leave payout from lapsing.
80. Exempts $190,500 from FY 2023 for e-licensing system upgrades from lapsing until June
30, 2025.
Department of Real Estate (Sec. 85)
81. Stipulates that of the Department of Real Estate's lump sum appropriation $400,000 is
for information technology improvements.
Secretary of State (SOS) (Sec. 90)
Talking Book Library GF $(62,000)
82. Exempts the $5,352,200 appropriation for the county allocation of Help America Vote Act
election security grant monies from lapsing until June 30, 2025.
83. Requires the SOS, by January 31, 2025, to submit a report to JLBC and OSPB on the
actual expenditures for election services. HB 2897
Initials JB Page 14 House Engrossed
84. Allows the SOS to make expenditures or incur indebtedness to employ outside or private
attorneys if the SOS:
a) is named as a defendant.
b) believes a conflict exists that prevents the AG from representing the SOS; and
c) either remains a nominal party or is defending the constitutionality of a law or
referendum enacted by the Legislature.
85. 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 (Sec. 93)
Reduction in Arizona
Promotion
GF $(200,000)
Arizona Department of Transportation (ADOT) (Sec. 94)
86. 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 (Sec. 95)
Justices of the Peace GF Salaries reduction $(500,000)
State Board of Technical Registration (Sec. 92)
87. Exempts $167,700 from FY 2023 for e-licensing system upgrades from lapsing until
June 30, 2025.
Universities (Sec. 97-100)
88. Declares it is the Legislature's intent for the School of Civic and Economic Thought and
Leadership at Arizona State University, the Economic Policy Institute at Northern
Arizona University and for 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 no more than 3.45% as prescribed by this Legislation.
89. Reduces the FY 2023 appropriation to the Arizona Board of Regents for Camp Verde Meat
Processing Facility by $9,700,000.
Arizona Department of Water Resources (ADWR)
Arizona Water
Protection Fund
Deposit
GF Reduction; ongoing $(500,000) HB 2897
Initials JB Page 15 House Engrossed
90. Exempts the $5,000,000 FY 2024 appropriation for statewide water resources planning
from lapsing.
91. Exempts the $2,500,000 appropriated from ADWR for the develop, modernize and
consolidate applications project from lapsing.
FY 2024 Supplemental Appropriatio ns and Adjustments (Sec. 104-116)
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)
Governor's 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
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
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 (Sec. 117)
92. Reduces the following amounts from the GF in FY 2024 to the following agencies:
Agency Amount
ADOA – Employee Compensation Study (2,200,000)
ADOA – Health Care Interoperability Grants (1,520,000)
Arizona Department of Agriculture – Expanded Information
Technology Support
(300,000) HB 2897
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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)
Office of Tourism – Culinary Tourism Workforce Development (150,000)
DCS – Extended Foster Care Service Model ($2,720,000)
State Tresaurer – City of Glendale Veteran's Community
Project
(800,000)
Independent Redistricting Commission (Sec. 118)
93. Reverts all remaining monies from the FY 2022 appropriation that are unexpended and
unencumbered on June 30, 2024.
Rodeo (Sec. 119)
94. Exempts the $15,000,000 FY 2024 appropriation for improvements to the Yavapai county
fairgrounds from lapsing.
95. Specifies 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 Legislative Council and monies revert to the state GF.
Water Infrastructure Finance Authority (WIFA) (Sec. 9)
96. Repeals the FY 2024 Brackish Groundwater Pilot Program administered by ADWR.
FY 2024 Lapsing Exemptions (Sec. 120)
97. Exempts the following funds 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
AZDHS – Antihuman Trafficking Grant Fund 10,000,000
AZDHS – 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 HB 2897
Initials JB Page 17 House Engrossed
Arizona Board of Regents – Spouses and Dependents of Law
Enforcement Officers Tuition Scholarship Fund
2,000,000
FY 2025 Appropriations and Adjustments
ADOA (Sec. 121)
98. Appropriates $7,150,650 from the state GF in FY 2024 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.
99. Appropriates $500,000 from the state GF in FY 2024 to ADOA for distribution to Graham
County to maintain essential county services.
100. Appropriates $3,000,000 from the state GF in FY 2024 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.
101. Allows the counties to use the distributed FY 2024 $3,000,000 appropriation only for
employer contributions to EORP.
Automation Projects Fund (APF) (Sec. 122)
102. 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 (HRIS)– Replacement
HRIS Subaccount 5,521,200
HRIS – Replacement Automation Projects Fund 1,320,000
Integrated Tax System
Modernization Project
DOR Subaccount 19,456,800
103. Directs 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.
104. Exempts the FY 2025 appropriations from the APF from lapsing until June 30, 2026.
105. Extends the lapsing date 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. HB 2897
Initials JB Page 18 House Engrossed
DES (Sec. 128)
106. Authorizes DES, beginning April 1, 2024, to use up to $25,000,000 from the Budget
Stabilization Fund (BSF) to provide funding for reimbursement grants.
107. Requires DES, before using the BSF monies, to notify the Director of JLBC and OSPB.
108. 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.
109. Prohibits the BSF appropriation from being used for additional programmatic
expenditures.
Miscellaneous FY 2025 Appropriations (Sec. 123, 130)
110. Appropriates $2,000,000 from the state GF in FY 2025 for onetime deposit in the
Arizona Arts Trust Fund.
111. Appropriates $1,000,000 from the state GF in FY 2025 to ADOA to distribute to
Navajo Nation for use in establishing electrical connections for individuals without
access to electricity.
112. Appropriates $1,000,000 from the state GF in FY 2025 to AHCCCS to distribute to
entities who provide case management for those with serious mental illness. AHCCCS
shall distribute these monies in order to provide a wage increase to providers with less
than 5,000 members.
113. Appropriates $500,000 from the state GF in FY 2025 to the Arizona Commerce
Authority for grants to business centers that provide business training, business
coaching and technical assistance to underserved small business owners.
114. 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.
115. 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
116. Appropriates $500,000 from the state GF in FY 2025 to DES to distribute to the
Navajo Nation for youth programs.
117. Appropriates $500,000 from the state GF in FY 2025 to DES to distribute to nonprofit
organization in Pinal County that provides nutrition, housing and rental assistance
programs.
118. Appropriates $2,000,000 from the state GF in FY 2025 to DES for area agencies on
aging.
119. Appropriates $1,000,000 from the state GF in FY 2025 to DES for distribution to the
Pascau Yaqui tribal government for social services programs.
120. 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.
121. 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. HB 2897
Initials JB Page 19 House Engrossed
122. Appropriates $1,000,000 from the state GF in FY 2025 to ADE high school centers for
success.
123. 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.
124. 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.
125. Appropriates $1,000,000 from the state GF in FY 2025 to DEQ to conduct a zero-
emission heavy-duty eight ton pilot program.
126. 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.
127. 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.
128. 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.
129. Appropriates $1,000,000 from the state GF in FY 2025 to DHS for senior health
promotion and coordination in Santa Cruz County.
130. Appropriates $200,000 from the state GF in FY 2025 to the Arizona Department of
Homeland Security for cybersecurity programs.
131. Appropriates $500,000 from the state GF in FY 2025 to DHS for heat mitigation
programs in southern Arizona.
132. Appropriates $1,000,000 from the state GF in FY 2025 to ABOR for onetime teacher's
academy funding.
133. Appropriates $1,000,000 from the state GF in FY 2025 to the Secretary of State for
onetime operating expenses.
134. Appropriates $500,000 from the state GF in FY 2025 to the Department of Veteran
Services to distribute to veterans center that provides referral services for
employment and job training, housing and utility assistance.
Opioid Remediation Supplemental Appropriatio ns (139-142)
135. Appropriates the following amounts to the Attorney General (AG) from the Consumer
Remediation Subaccount of the Consumer Restitution and Remediation Revolving fund
for the AG to transfer to the following agencies on or before June 20, 2024:
a) $75,000,000 for ADC's Opioid Remediation Fund in FY 2024;
b) $40,000,000 for ADC's Opioid Remediation Fund in FY 2025;
c) $3,000,000 to the DEMA's Opioid Remediation Fund in FY 2025;
d) $1,000,000 to DHS's Opioid Remediation Fund in FY 2025.
136. Declares that ADC may only use monies in the Opioid Remediation Fund be for past
and current ADC costs for care, treatment, programs and other expenditures for
individuals with opioid use disorder and any co-occuring substance use disorder or mental HB 2897
Initials JB Page 20 House Engrossed
health conditions or for any other approved purposes that are prescribed in a court order,
a settlement agreement or the One Arizona opioid settlement memorandum of
understanding that is entered into by the state and other parties to the opioid litigation.
137. Requires DHS and DEMA o nly use monies in the Opioid Remediation Fund for
approved purposes as prescribed in a court order, a settlement agreement or the One
Arizona opioid settlement memorandum of understanding that is entered into by the state
and other parties to the opioid litigation.
FY 2025 Lump Sum Reductions (Sec. 12 9)
138. Reduces the following GF monies from the lump sum appropriations of the following
budget units in FY 2025:
Agency
Lump Sum
Reductions
ADOA $(300,000)
ADOA – School Facilities Division $(57,100)
OAH $(34,200)
Department of Agriculture $(671,500)
AHCCCS $(1,242,000)
Attorney General $(839,000)
Board for Charter Schools $(97,800)
Corporation Commission $(27,600)
Arizona Schools for the Deaf & the
Blind
$(897,000)
Office of Economic Opportunity $(21,000)
DES $(3,026,200)
Board of Education $(111,200)
ADE $(469,700)
State Board of Equalization $(30,000)
Department of Forestry & Fire
Management
$(248,600)
Governor's Office $(368,100)
Governor's Office of Strategic Planning
and Budgeting
$(101,400)
DHS $(719,200)
Arizona Historical Society $(83,500)
Prescott Historical Society $(35,000)
DIFI $(222,500) HB 2897
Initials JB Page 21 House Engrossed
Judiciary – Supreme Court $(386,300)
Judiciary – Court of Appeals $(508,200)
Judiciary – Superior Court $(180,100)
Department of Juvenile Corrections $(1,098,100)
Land Department $(148,000)
House of Representatives $(664,100)
JLBC $(107,800)
Legislative Council $(328,100)
Senate $(587,300)
Lottery Commission $(279,800)
Navigable Streams Commission $(6,000)
Real Estate Department $(110,400)
DOR $(1,748,200)
Secretary of State $(463,600)
Board of Tax Appeals $(13,000)
Tourism $(75,800)
Office of Tribal Relations $(2,400)
Arizona Board of Regents $(109,200)
Arizona State University $(10,995,800)
Northern Arizona University $(4,070,200)
University of Arizona – Main $(6,562,200)
University of Arizona – Health
Services
$(1,469,300)
Department of Veterans' Services $(108,200)
Department of Water Resources $(21,500)
Debt Service Payments (Sec. 131-132)
139. Allocates $25,998,700 of state GF revenue in FY 2025 to the Arizona Convention Center
Development Fund.
140. Declares 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.
HB 2897
Initials JB Page 22 House Engrossed
Fund Transfers (Sec. 133)
141. Transfers the following amounts from the following fund sources to the state GF by
June 30, 2024 for the purpose of providing adequate support and maintenance for
agencies of this state:
Fund FY 2024 FY2025
Arizona Department of Administration
Certificate of Participation Fund $2,600,000
State Employee Travel Reduction Fund $900,000
State Web Portal Fund $4,000,000
Capitol Mall Consolidation Fund $700,000
Fire Incident Management Fund $6,100,000
Construction Insurance Fund $8,100,000
Cyber Risk Insurance Fund $11,200,000
Risk Management Fund $70,000,000
ADOA-SFD Credit Enhancement Fund $3,000,000
AHCCCS
Prescription Drug Rebate Fund $46,000,000
Arizona Board of Athletic Training
Athletic Training Fund $250,000
Attorney General
Anti-Racketeering – Operations $2,600,000
Anti-Racketeering – Pass Through $10,000,000
Collection Enforcement Revolving Fund –
Operating
$200,000
Barbering and Cosmetology Board
Barbering and Cosmetology Fund $12,100,000
Arizona Board of Behavioral Health Examiners
Behavioral Health Examiner Fund $4,200,000
Arizona Board of Chiropractic Examiners
Chiropractic Examiners Board Fund $500,000
Arizona Commerce Authority
Arizona Competes Fund $55,700,000
Arizona Corporation Commission
Utility Regulation Revolving Fund $2,100,000 HB 2897
Initials JB Page 23 House Engrossed
Securities Regulation/Enforcement Fund $25,000,000
Arizona Department of Corrections
Corrections Fund $8,000,000
Alcohol Abuse Treatment Fund $2,000,000
Transition Program Fund $4,200,000
Community Corrections Enhancement Fund $100,000
Arizona Correctional Industries Revolving
Fund
$11,500,000
Arizona Criminal Justice Commission
Criminal Justice Enhancement Fund $800,000
Fingerprint Clearance Card Fund $700,000
State Board of Dental Examiners
Dental Board Fund $2,000,000
Office of Economic Opportunity
Office of Economic Opportunity Operations
Fund
$1,000,000
Arizona Department of Economic Security
Family Caregiver Grant Program Fund
Transfer
$700,000
Special Administration Fund $4,000,000
Economic Security Capital Investments Fund $500,000
Arizona Department of Environmental Quality
Air Quality Fee Fund $2,300,000
Underground Storage Tank Fund $20,000,000
Vehicle Emissions Inspection Fund $5,000,000
Hazardous Waste Management Fund $900,000
Emergency Response Fund $500,000
Arizona Department of Education
Adult Workforce Diploma Program Fund $3,000,000
Community College Adult Education
Workforce Development Program Fund
$8,900,000
Computer Science Professional Development
Program Fund
$5,000,000
Arizona Exposition and State Fair Board HB 2897
Initials JB Page 24 House Engrossed
Arizona Exposition and State Fair Fund $5,000,000
Board of Fingerprinting
Board of Fingerprinting Fund $1,200,000
Arizona Game & Fish Department
Watercraft Licensing Fund $800,000
Arizona Department of Health Services
Disease Control Research Fund $1,300,000
Prescription Drug Rebate Fund $1,000,000
Health Services Lottery Fund $3,700,000
Industrial Commission
Administration Fund $2,400,000
Special Fund $900,000
Arizona Department of Insurance and Financial Institutions
Financial Services Fund $19,600,000
Automobile Theft Authority Fund $8,800,000
Receivership Revolving Fund $800,000
Arizona Department of Juvenile Corrections
CJEF Distribution Fund $900,000
Indirect Cost Recovery Fund $200,000
Arizona State Land Department
Risk Management Fund $300,000
IGA and ISA Fund $24,000
Trust Land Management Fund $34,000,000
Arizona Department of Liquor Licenses and Control
Liquor Licenses Fund $400,000
K Fund Enforcement Surcharges Fund $200,000
Arizona State Board of Massage Therapy
Massage Therapy Board Fund $600,000
Arizona Medical Board
Medical Examiners Board Fund $9,300,000
Arizona State Mine Inspector
Aggregate Mining Reclamation Fund $39,000 HB 2897
Initials JB Page 25 House Engrossed
Naturopathic Physicians Medical Board
Naturopathic Board Fund $1,700,000
Arizona State Board of Nursing
Nursing Board Fund $9,400,000
Board of Occupational Therapy Examiners
Occupational Therapy Fund $900,000
Arizona 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 (GF Share) $38,200,000
Arizona State Board of Pharmacy
Pharmacy Board Fund $6,300,000
Arizona State Board of Physical Therapy
Physical Therapy Fund $700,000
Arizona Board of Psychologist Examiners
Psychologist Examiners Board Fund $1,800,000
Department of Public Safety
Fingerprint Clearance Card Fund $3,900,000
DPS Licensing Fund $100,000
GIITEM Fund $1,000,000
Records Processing Fund $200,000
Public Safety Equipment Fund $500,000
Residential Utility Consumer Office (RUCO)
RUCO Revolving Fund $400,000
Arizona Board of Technical Registration
Technical Registration Board Fund $5,600,000
Arizona Department of Transportation
Economic Strength Project Fund $600,000
Highway Damage Recovery Fund $1,000,000
State Aviation Fund $15,000,000 HB 2897
Initials JB Page 26 House Engrossed
State Highway Fund – Interest Transfers $26,000,000
$18,700,000
$15,000,000 FY 2026
$10,000,000 FY 2027
Abandoned Vehicles Administration Fund $400,000
Shared Location and Advertisement
Agreement Expense Fund
$100,000
Motor Vehicle Dealer Enforcement Fund $300,000
Highway Expansion and Extension Loan
Program Fund
$4,000
State Highway Fund Vehicle License Tax
Transfer
$3,000,000 $3,000,000
AZ Highways Magazine Fund $500,000
State Treasurer
State Treasure's Operating Fund $900,000
Arizona Veterinary Board
Veterinary Medical Examiners Board Fund $1,700,000
Water Infrastructure Finance Authority of Arizona (WIFA)
Water Supply Development Revolving Fund $51,600,000
Water Supply Development Revolving Fund
Interest
$8,100,000
Long Term Water Augmentation Fund $78,000,000
Long Term Water Augmentation Fund Interest $19,300,000
Arizona Department of Water Resources
Temporary Groundwater and Irrigation
Efficiency Projects Fund
$600,000
Assured and Adequate Water Supply Fund $200,000
Water Protection Fund $1,000,000
Payment Deferrals (Sec. 139)
142. 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.
143. Directs ADE to make the deferral by reducing the apportionment of state aid for each
month in the fiscal year by the same amount. HB 2897
Initials JB Page 27 House Engrossed
144. 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.
145. 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.
State Operating Adjustments (Sec. 144-145)
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
146. Outlines statewide adjustment instructions and procedures.
147. Lists the FY 2025 individual agency charges totaling $1,798,500 for general agency
counsel provided by the Attorney General.
FY 2026 Appropriations (Sec. 146)
148. Appropriates $45,077,100 from the state GF in FY 2026 for a onetime deposit in the New
School Facilities Fund.
149. Instructs 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, 2023.
Miscellaneous (Sec. 147-157)
150. 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.
151. Contains various reporting requirements.
152. Defines terms.