Arizona 2024 Regular Session

Arizona House Bill HB2610

Introduced
1/23/24  
Report Pass
1/31/24  
Introduced
1/23/24  
Report Pass
2/20/24  
Report Pass
1/31/24  

Caption

Budget stabilization fund; cap; repeal

Impact

By amending section 35-144 of the Arizona Revised Statutes, the bill has the potential to influence how the state allocates its budgetary resources, particularly in fiscal years where economic growth exceeds certain thresholds. The bill establishes criteria for determining when excess funds in the stabilization fund can be appropriated to general state funds, which can alleviate budgetary pressures in different state departments. Moreover, this approach may enable the state to maintain a higher reserve during periods of increased revenue, ultimately promoting financial resilience.

Summary

House Bill 2610 focuses on the budget stabilization fund within the Arizona state financial system. The bill aims to amend existing statutes regarding the budget stabilization fund, specifically addressing the cap on funding and the conditions for appropriations and transfers. One significant change proposed by HB2610 is the repeal of the existing cap on the fund, which is intended to provide greater flexibility in managing state financial resources. This amendment allows for more significant accumulation of capital in the stabilization fund during years with higher revenue growth, thereby enhancing the state's ability to respond to fiscal challenges or emergencies.

Contention

While proponents of HB2610 argue that removing the cap will allow the state to utilize excess funds more effectively during times of economic prosperity, critics express concerns about the implications of having a large amount of funding concentrated in a single fund. There are worries that such a change could lead to less oversight, potential misallocation of resources, or difficulty in ensuring accountability for state spending. The balance between adequate funding for the stabilization fund and ensuring responsible fiscal management remains a point of contention among legislators and stakeholders.

Companion Bills

No companion bills found.

Previously Filed As

AZ S1908

Budget Stabilization Fund

AZ H5019

Budget Stabilization Fund

AZ HB2515

BUDGET STABILIZATION FUND

AZ SB2443

BUDGET STABILIZATION FUND

AZ HB5536

BUDGET STABILIZATION FUND

AZ HB2193

Appropriation; fire suppression mitigation projects

AZ HB683

Provides relative to the disposition of certain state revenues through repeal of the Revenue Stabilization Trust Fund and dedication of certain revenues to the Budget Stabilization Fund. (EG SEE FISC NOTE GF RV See Note)

AZ HB678

(Constitutional Amendment) Modifies disposition of certain state revenues through repeal of the Revenue Stabilization Trust Fund and deposits of certain revenue streams into the Budget Stabilization Fund (RRF INCREASE GF RV See Note)

AZ HB880

Establish a stabilization fund for medicaid

AZ HB0055

State budgeting and reserves-account repeal.

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