HB2897 - 562R - H Ver (2024)

Be it enacted by the Legislature of the State of Arizona:

Section1. Laws 2022, chapter 313, section 31 is amended to read:

Sec.31. SUPERINTENDENT OF PUBLIC INSTRUCTION

2022-23

FTE positions 203.9

Operating lump sum appropriation $ 10,348,400

Formulaprograms

Basic state aid 5,652,055,000

Results-based funding 68,600,000

Special education fund 36,029,200

Other state aid to districts 983,900

Classroom site fund 946,524,800

Instructional improvement fund 54,425,700

Propertytax relief

Additional state aid 510,093,700

Non-formulaprograms

Accountability and achievement

testing 20,423,300

Adult education 21,487,800

Adult education and workforce

developmentadministration 250,000

Alternative teacher development

program 500,000

Arizona empowerment scholarship

accountadministration 2,176,400

Arizona English language

learner fund 4,960,400

Code writers initiative program 1,000,000

CTED completion grants 1,000,000

CTED soft capital and equipment 1,000,000

College credit by examination

incentiveprogram 7,472,100

College placement exam feewaiver 1,265,800

Computer science professional

development program 1,000,000

Early literacy 12,000,000

Education learning and

accountabilitysystem 5,315,400

English learner administration 6,516,900

Foster home youth transitional

housing 10,000,000

Geographic literacy 100,000

Gifted assessments 850,000

Jobs for Arizona graduates 100,000

Onetimeelectronic incident prevention

programs 150,000

School safety program 81,925,200

State block grant for vocational

education 11,576,300

Student level data access 350,000

Teachercertification 2,403,000

Tribalcollege dual enrollment

program 325,000

Total appropriation andexpenditure

authority — superintendent

of public instruction $7,473,208,300

Fund sources:

State general fund $5,973,447,600

Education sales tax fund 7,000,000

Permanent state school fund 328,895,600

Teacher certification fund 2,359,100

Tribal college dual enrollment

program fund 325,000

Department of educationempowerment

scholarshipaccount fund 350,000

Expenditure authority 1,160,831,000

Operating budget

The operating lump sumappropriation includes $683,900 and 8.5 FTE positions for average dailymembership auditing and $200,000 and 2 FTE positions for information technologysecurity services.

The amount appropriated for the department of education'soperating budget includes $500,000 for technical assistance and state-leveladministration of the K-3 reading program established pursuant to section15-211, Arizona Revised Statutes.

Any monies available to the department of education pursuant tosection 42-5029.02, subsection A, paragraph 8, Arizona Revised Statutes, forthe failing schools tutoring fund established by section 15-241, ArizonaRevised Statutes, in excess of the expenditure authority amounts are allocatedfor the purposes of section 42-5029.02, subsection A, paragraph 8, ArizonaRevised Statutes.

Any monies available to the department of education pursuant tosection 42-5029.02, subsection A, paragraph 6, Arizona Revised Statutes, for charactereducation matching grants pursuant to section 15-154.01, Arizona RevisedStatutes, in excess of the expenditure authority amounts are allocated for thepurposes of section 42-5029.02, subsection A, paragraph 6, Arizona RevisedStatutes.

Basic state aid

The appropriation for basicstate aid provides basic state support to school districts for maintenance andoperations funding as provided by section 15-973, Arizona RevisedStatutes, and includes an estimated $328,895,600 in expendable income derivedfrom the permanent state school fund and from state trust lands pursuant tosection 37-521, subsection B, Arizona Revised Statutes, for fiscal year2022-2023.

Monies derived from the permanent state school fund and anyother non-state general fund revenue source that is dedicated to fund basicstate aid shall be spent, whenever possible, before spending state general fundmonies.

Except as required by section 37-521, Arizona Revised Statutes,all monies received during the fiscal year from national forests, interestcollected on deferred payments on the purchase of state lands, income frominvesting permanent state school funds as prescribed by the enabling act andthe Constitution of Arizona and all monies received by the superintendent ofpublic instruction from whatever source, except monies received pursuant tosections 15-237 and 15-531, Arizona Revised Statutes, when paid into thestate treasury are appropriated for apportionment to the various counties inaccordance with law. An expenditure may not be made except asspecifically authorized above.

Any monies available to the department of education pursuant tosection 42-5029.02, subsection A, paragraph 5, Arizona Revised Statutes, forthe increased cost of basic state aid under section 15-971, Arizona RevisedStatutes, due to added school days in excess of the expenditure authorityamounts are allocated for the purposes of section 42-5029.02, subsection A,paragraph 5, Arizona Revised Statutes.

Other programs

Any monies available to thedepartment of education for the classroom site fund pursuant to section 37-521,subsection B, paragraph 4, Arizona Revised Statutes, and section 42-5029.02,subsection A, paragraph 10, Arizona Revised Statutes, in excess of expenditureauthority amounts are allocated for the purposes of section 37-521, subsectionB, paragraph 4, Arizona Revised Statutes, and section 42-5029.02,subsection A, paragraph 10, Arizona Revised Statutes.

Any monies available to thedepartment of education from the instructional improvement fund established bysection 15-979, Arizona Revised Statutes, in excess of the expenditureauthority amounts are allocated for the purposes of section 15-979, ArizonaRevised Statutes.

Before making any changes to the achievement testing programthat will increase program costs, the department of education and the stateboard of education shall submit the estimated fiscal impact of those changes tothe joint legislative budget committee for review.

Any monies available to the department ofeducation for accountability purposes pursuant to section 42-5029.02,subsection A, paragraph 7, Arizona Revised Statutes, in excess of theexpenditure authority amounts are allocated for the purposes of section42-5029.02, subsection A, paragraph 7, Arizona Revised Statutes.

The appropriated amount for adult education includes $4,620,000for the continuing high school and workforce training program established bysection 15-217.01, Arizona Revised Statutes, $6,000,000 for deposit in theadult workforce diploma program fund established by section 15-217.02,subsection B, Arizona Revised Statutes and $6,000,000 for deposit in thecommunity college adult education workforce development program fundestablished by section 15-217.03, subsection C, Arizona Revised Statutes.

Monies appropriated for CTED completion grants are intended tohelp fund program completion for students who complete at least fifty percentof a career technical education program before graduating from high school andwho successfully complete the career technical education district program aftergraduating from high school. The application procedures shall awardgrant funding only after an eligible student has successfully completed acareer technical education district program.

If the appropriated amount for CTED completion grants isinsufficient to fund all grant requests from career technical educationdistricts, the department of education shall reduce grant amounts on aproportional basis in order to cap total statewide allocations at $1,000,000.

The appropriated amount for CTED completion grants is exemptfrom the provisions of section 35-190, Arizona Revised Statutes, relatingto lapsing of appropriations, until June 30, 2024.

The department of education shall distribute the appropriatedamount for CTED soft capital and equipment to career technical educationdistricts with fewer than two thousand average daily membership pupils for softcapital and equipment expenses. The appropriated amount shall beallocated on a pro rata basis based on the average daily membership of eligiblecareer technical education districts.

The department of education shall use the appropriated amountfor English learner administration to provide English language acquisitionservices for the purposes of section 15-756.07, Arizona Revised Statutes,and for the costs of providing English language proficiency assessments,scoring and ancillary materials as prescribed by the department of education toschool districts and charter schools for the purposes of title 15, chapter 7,article 3.1, Arizona Revised Statutes. The department may use aportion of the appropriated amount to hire staff or contract with a third partyto carry out the purposes of section 15-756.07, Arizona RevisedStatutes. Notwithstanding section 41-192, Arizona RevisedStatutes, the superintendent of public instruction also may use a portion ofthe appropriated amount to contract with one or more private attorneys toprovide legal services in connection with the case of Flores v. State ofArizona, No. CIV 92-596-TUC-RCC.

The amount appropriated for foster home youth transitionalhousing shall be distributed to the East valley institute of technology for atransitional housing unit. The legislature intends that the monies be used toconstruct and furnish a sixty-four bed transitional housing unit for fosteryouths and former foster youths who are at leastseventeen years of age but not more than twenty-one twenty-three years of age and who need stable housing inorder to obtain a high school diploma or a high school equivalency diploma andwho are earning an industry certification in a program offered by the Eastvalley institute of technology or an associate degree.On or before September 15 in years 2025, 2026 and 2027, the superintendent ofthe East valley institute of technology shall submit a report to the governor,the president of the senate, the speaker of the house of representatives andthe directors of the joint legislative budget committee and the governor'soffice of strategic planning and budgeting, and provide a copy to the secretaryof state, detailing the total number of foster youths who lived in thetransitional housing unit during the immediately preceding fiscal year and theprogress that each foster youth made toward obtaining a high school diploma or ahigh school equivalency diploma and earning an industry certification duringthe fiscal year.

The department of education shall use the appropriated amountfor geographic literacy to issue a grant to a statewide geographic alliance forstrengthening geographic literacy in this state.

The department of education shall use the appropriated amountfor jobs for Arizona graduates to issue a grant to a nonprofit organization fora JOBS for Arizona graduates program.

The department of education shall use the amount appropriatedfor onetime electronic incident prevention programs for the purposes ofawarding student safety grants to public schools. A public school thatreceives a student safety grant under this section shall use the grant moniesto procure and implement an electronic incident prevention program.

The amount appropriated for the school safety program includesan increase of $50,000,000 for additional school safety grants. In allocatingthe $50,000,000 increase, the department of education shall first distributemonies to schools on the school safety program waiting list to receive grantsfor the costs of placing school resource officers on school campuses. Theawarded grants may not supplant funding provided by local governments forschool resource officers. If the total cost of funding new grants for schoolresource officer costs is less than $50,000,000, the department may allocatethe remaining monies to grants to schools for the costs of placing schoolcounselors and social workers on school campuses pursuant section 15-154,Arizona Revised Statutes.

Any monies available to the department ofeducation for school safety pursuant to section 42-5029.02, subsectionA, paragraph 6, Arizona Revised Statutes, in excess of the expenditureauthority amounts are allocated for the purposes of section 42-5029.02,subsection A, paragraph 6, Arizona Revised Statutes.

After review by the joint legislative budget committee, infiscal year 2022-2023, the department of education may use a portion of itsfiscal year 2022-2023 state general fund appropriations for basic state aid,additional state aid or the special education fund to fund a shortfall infunding for basic state aid, additional state aid or the special educationfund, if any, that occurred in fiscal year 2021-2022.

The department shall provide an updated report on its budgetstatus every three months for the first half of each fiscal year and every month thereafter to the president of the senate, thespeaker of the house of representatives, the chairpersons of the senate andhouse of representatives appropriations committees, the director of the jointlegislative budget committee and the director of the governor's officeof strategic planning and budgeting. Each reportshall include, at a minimum, the department's current funding surplus orshortfall projections for basic state aid and other major formula-basedprograms and is due thirty days after the end of the applicable reportingperiod.

Within fifteen days after eachapportionment of state aid that occurs pursuant to section 15-973, subsectionB, Arizona Revised Statutes, the department shall post on its websitethe amount of state aid apportioned to each recipient and the underlying data.

Notwithstanding section 15-901.03, Arizona RevisedStatutes, the superintendent of public instruction may transfer $5,000,000 fromthe state general fund appropriation for basic state aid for fiscal year 2021-2022to the results-based funding program for fiscal year 2021-2022 withoutreview by the joint legislative budget committee. Any amounttransferred to the results-based funding program under this section thatexceeds the amount needed to address a funding shortfall for the results-basedfunding program for fiscal year 2021-2022 reverts to the state general fund onJune 30, 2022.

Sec.2. Laws 2022, chapter 313, section 38 isamended to read:

Sec.38. ARIZONA DEPARTMENTOF FORESTRY AND FIRE MANAGEMENT

2022-23

FTEpositions 235.5

Operating lump sum appropriation $ 3,393,800

Environmental county grants 250,000

Gila River nonnative species

eradication 5,000,000

Inmate firefighting crews 784,400

Postrelease firefighting crews 1,151,000

Fire suppression 200,000

Mount Lemmon fire districtrenovation 2,230,900

State fire marshal 1,865,100

State fire school 279,700

Hazardous vegetation removal 3,000,000

US forest service land thinning 2,150,900

Wildfire emergency response 65,000,000

Wildfire mitigation 38,837,300

Total appropriation — Arizona department

of forestry and fire management $124,143,100

Fund sources:

State general fund $124,143,100

The monies in the Gila Rivernonnative species eradication line item are for nonnative vegetation specieseradication projects, including projects to replace nonnative vegetationspecies with native vegetation species and restoring habitat for wildlife, inand along the portion of the Gila River between the western boundary of thecity of Avondale and the bridge over the Gila River at State Route 85. TheArizona department of forestry and fire management shall serve as the fiscalagent and contractor for the projects described in thisparagraph. The department may subcontract for the eradication andother required services for the projects pursuant to title 34, chapter 6, article1, Arizona Revised Statutes, to expedite the projects.

On or before September 1, 2023, September 1, 2024and September 1, 2025 of each year until all monies inthe Gila River nonnative species eradication line item are spent, thedepartment shall report to the director of the joint legislative budgetcommittee on the expected amount and purpose of expenditures from the GilaRiver nonnative species eradication line item. The report shall includeprojected line item detail. The reports shall also provide follow-upon areas previously treated with funding from the line item and whether thenonnative species have returned.

The appropriation made in the Gila River nonnative specieseradication line item is exempt from the provisions of section 35-190, ArizonaRevised Statutes, relating to lapsing of appropriations, except all moniesremaining unencumbered or unexpended for the purposes of this section on June30, 2025 2029 revert to the stategeneral fund.

The appropriation for the hazardous vegetation removal lineitem is exempt from the provisions of section 35-190, Arizona RevisedStatutes, relating to lapsing of appropriations, until June 30, 2024.

The appropriation for the wildfire emergency response line itemshall be used for the purposes and is subject to the restrictions outlined inLaws 2021, first special session, chapter 1, as amended by Laws 2022, chapter1, section 1. The monies appropriated in the wildfire emergency response lineitem are exempt from the provisions of section 35-190, Arizona Revised Statutes,relating to lapsing of appropriations, through June 30, 2025.

From the amount appropriated for the wildfire emergencyresponse line item, $3,000,000 shall be used for purposes related to theWoodbury fire.

Sec. 3. Laws 2022, chapter 313, section 110, asamended by Laws 2023, chapter 121, section 1, is amended to read:

Sec.110. Department ofemergency and military affairs; border security; exemption; fiscal year2022-2023

A. The sum of $209,205,000 is appropriated from theborder security fund established by section 26-105, Arizona RevisedStatutes, in fiscal year 2022-2023 to the department of emergency and militaryaffairs. The department of emergency and military affairs shall allocate, inconsultation with the department of public safety, the following amounts:

1. $20,000,000 to Cochise county to construct a newcounty jail facility. The monies allocated in this paragraph are intended tofund up to twenty percent of the total jail facility construction cost but notto exceed $20,000,000. The monies allocated in this paragraph shall not bedistributed until Cochise county has submitted to the director of the jointlegislative budget committee, the director of the governor's office ofstrategic planning and budgeting and the director of the department ofadministration a report that the county has raised sufficient monies to fundthe remainder of the project's budget. Notwithstanding section 41-1252,Arizona Revised Statutes, the monies allocated in this paragraph are notsubject to review by the joint committee on capital review. Any moniesallocated pursuant to this paragraph that remain unexpended and unencumbered onJune 30, 2027 revert to the border security fund established by section 26-105,Arizona Revised Statutes.

2. $15,000,000 to reimburse a county or local lawenforcement agency for costs incurred by the county or local law enforcementagency for participating in a program with the United States immigration andcustoms enforcement pursuant to 8 United States code section 1357(g).

3. $10,000,000 for deposit in the anti-humantrafficking grant fund established by section 26-106, Arizona RevisedStatutes. The monies shall be allocated as follows:

(a) $2,000,000 to the department of public safetyArizona counter terrorism information center for anti-human traffickingoperations that comply with the requirements prescribed in section 26-106,Arizona Revised Statutes.

(b) $8,000,000 in award grants to city, town andcounty law enforcement agencies, in an amount of not more than $500,000 peragency, for programs that reduce human trafficking and that comply with therequirements prescribed in section 26-106, Arizona Revised Statutes.

4. $30,000,000 to distribute to cities, towns orcounties for costs associated with prosecuting and imprisoning individualscharged with drug trafficking, human smuggling, illegal immigration and otherborder-related crimes.

5. $10,000,000 for costs incurred by Arizonanational guard assets augmenting and supporting the department of public safetyand local law enforcement agencies relating to violations of the laws of thisstate in the southern Arizona border region.

6. $10,000,000 for emergency health care and testingfor immigrants along the southern Arizona border.

7. $15,000,000 for transportation of individuals whoentered Arizona seeking asylum to other states in the United States, includingthe cost of meals, onboard staffing and support.

8. $53,405,000 for deputy sheriff compensation to bedistributed to the department of administration for the following purposes:

(a) $48,310,000 to counties for the purposes of a$10,000 onetime payment to line-level deputies and detention officers employedby each county sheriff's office as of May 1, 2022. The county shall distributethe payment to eligible employees in equal quarterly installments on or beforeOctober 30, 2023. From and after April 30, 2023, a county may spend moniesthat are unencumbered and unexpended pursuant to this subdivision for thepurposes prescribed by subdivision (b) of this paragraph. If theamount is insufficient for a $10,000 per employee payment, the department shalldistribute a prorated amount based on the total number of deputies anddetention officers employed. On or before August 30, 2023 and August 30, 2024,each county sheriff shall submit a report to the department of administrationon the actual use of the monies received and the most recent staffing andretention data for the positions receiving the payment. On or before September30, 2023 and September 23, 2024, the department of administration shall submita report to the directors of the joint legislative budget committee and thegovernor's office of strategic planning and budgeting detailing the totalamounts distributed by county and summarizing the individual county reports.

(b) $5,095,000 to counties for the purposes of a$5,000 onetime payment to line-level deputies and detention officers hiredafter May 1, 2022. The county shall distribute the payment toeligible employees in equal quarterly installments over one year. OnMay 1, 2022, the department of administration shall distribute the monies tothe counties based on the total number of vacancies for line-leveldeputies and detention officers in each county as of May1, 2022. On or before June 30, 2023, the department shall submit areport to the directors of the joint legislative budget committee and thegovernor's office of strategic planning and budgeting detailing the amountsdistributed to each county.

9. $800,000 for the purposes prescribed in section26-174, Arizona Revised Statutes, regarding the established chain ofcommand within the Arizona state guard.

10. $30,000,000 $2,322,800for the construction costs of a state emergency operations center.Pursuant to section 41-1252, Arizona Revised Statutes, before spending themonies allocated in this paragraph, the department of emergency and militaryaffairs shall submit for review by the joint committee on capital review thescope, purpose and estimated cost of the capital improvements.

11. $12,232,900 to the department ofpublic safety in fiscal year 2024-2025 for local border support. Thedepartment shall use the monies to fund local law enforcement officer positionsfor border drug interdiction to deter and apprehend any individuals who arecharged with drug trafficking, human smuggling, illegal immigration and otherborder-related crimes. The department shall also use the monies forgrants to cities, towns and counties for costs associated with prosecuting anddetaining individuals who are charged with drug trafficking, human smuggling,illegal immigration and other border-related crimes. The department mayfund all capital-related equipment.

12. $15,444,300 to the department ofpublic safety in fiscal year 2024-2025 for border drug interdiction.

11. 13. $15,000,000to the department of public safety for the construction costs of a southernborder coordinated response center. Pursuant to section 41-1252, ArizonaRevised Statutes, before spending the monies allocated in this paragraph, thedepartment of public safety shall submit for review by the joint committee oncapital review the scope, purpose and estimated cost of the capitalimprovements.

B. Within thirty days after the end of each calendarquarter until the monies appropriated by this section are fully expended, thedepartment of emergency and military affairs, in consultation with the Arizonadepartment of homeland security and the department of public safety, shallreport to the joint legislative budget committee on the status of the projectallocations and monies expended as prescribed by this section.

C. The department of emergency and military affairsmay transfer spending authority between and within the programs and purposeslisted in subsection A of this section. Before making a transfer, thedepartment shall submit the proposed transfer to the joint legislative budgetcommittee for review.

D. The appropriations made in subsection A of thissection are exempt from the provisions of section 35-190, Arizona RevisedStatutes, relating to lapsing of appropriations.

Sec.4. Laws 2022, chapter 313, section 128 isamended to read:

Sec.128. Appropriations;additional assistance; FRPL group B weight; fiscal year 2024-2025; intent

A. The sum of $23,836,000 is appropriated from thestate general fund in fiscal year 2024-2025 to the department of education forbasic state aid and a onetime charter additional assistancesupplement. The appropriated amount shall be used asfollows:

1. $17,978,000 shall be allocated tofund an ongoing increase in the per pupil charter additional assistance amountsprescribed in section 15-185, subsection B, paragraph 4, Arizona RevisedStatutes, above the amount of charter additional assistance that otherwisewould be provided by law for fiscal year 2024-2025.

2. $5,858,000 shall be allocated fora onetime charter additional assistance supplement in fiscal year 2024-2025.The department of education shall distribute the appropriated amount for theonetime charter additional assistance supplement to charter schools on aproportional basis based on the charter additional assistance funding that eachcharter school in this state receives in fiscal year 2024-2025.

B. The sum of $94,164,000 is appropriated from thestate general fund in fiscal year 2024-2025 to the department of education forbasic state aid and a onetime district additional assistancesupplement. The appropriated amount shall be used as follows:

1. $71,022,000 shall be allocatedto fund an ongoing increase in the per pupil district additional assistanceamounts prescribed in section 15-961, Arizona Revised Statutes, above theamount of district additional assistance that otherwise would be provided bylaw for fiscal year 2024-2025.

2. $23,142,000 shall be allocated fora onetime district additional assistance supplement in fiscal year 2024-2025.The department of education shall distribute the appropriated amount for theonetime district additional assistance supplement to school districts on aproportional basis based on the district additional assistance funding thateach district in this state receives in fiscal year 2024-2025 and increase thebudget limits pursuant to section 15-947, Arizona Revised Statutes, accordingly.A school district may budget the monies it receives from the onetime districtadditional assistance supplement in either the school district's maintenanceand operation fund or unrestricted capital outlay fund.

C. The sum of $100,000,000 is appropriated from thestate general fund in fiscal year 2024-2025 to the department of education forbasic state aid and a onetime FRPL group B weight supplement. Theappropriated amount shall be used as follows:

1. $63,000,000 shall be allocatedto fund an ongoing increase in the FRPL group B weight established by section15-943, paragraph 2, subdivision (b), Arizona Revised Statutes.

2. $37,000,000 shall be allocated fora onetime frpl group b weight supplement in fiscal year 2024-2025. Thedepartment of education shall distribute the appropriated amount for theonetime frpl group b weight supplement to school districts and charter schoolson a pro rata basis using the weighted student count for frpl pupils for theschool district or charter school pursuant to section 15-943, paragraph 2,subdivision (b), Arizona Revised Statutes, and increasethe budget limits pursuant to section 15-947, Arizona Revised Statutes,accordingly. A school district may budget the monies it receives from theonetime frpl group b weight supplement in either the school district'smaintenance and operation fund or unrestricted capital outlay fund.

D. the legislature intends that thestate general fund appropriation to the department of education for basic stateaid be increased by $29,000,000 in fiscal year 2027-2028 to continue thefunding allocated in subsection A, paragraph 2 and subsection B, paragraph 2 ofthis section on an ongoing basis. the legislature intends that the stategeneral fund appropriation to the department of education for basic state aidbe increased by $37,000,000 in fiscal year 2027-2028 to continue the fundingallocated in subsection C, paragraph 2 of this section on an ongoing basis.

Sec.5. Repeal

Laws 2022, chapter 366, section 33 isrepealed.

Sec.6. Laws 2023, chapter 133, section 9 isamended to read:

Sec. 9. ARIZONA DEPARTMENT OF AGRICULTURE

2023-24

FTE positions 209.9

Operating lump sum appropriation $ 17,504,200

Agriculturalemployment relations

board 23,300

Animaldamage control 65,000

Red imported fire ant control 23,200

Agricultural consulting and

training 136,300

Total appropriation — Arizonadepartment

of agriculture $ 17,752,000

Fund sources:

Stategeneral fund $ 16,154,200

Air quality fund 1,597,800

Of the monies in the department's operatinglump sum appropriation, $1,199,600 is exempt from the provisions of section 35-190,Arizona Revised Statutes, relating to lapsing of appropriations, until June 30,2026.

Sec.7. Laws 2023, chapter 133, section 17 isamended to read:

Sec. 17. DEPARTMENT OF CHILD SAFETY

2023-24

FTE positions 3,283.1

Operating lump sum appropriation $147,938,100 $148,764,300

Additionaloperating resources

Attorney general legal services 25,522,800

Caseworkers 124,293,500 157,293,500

Office of child welfare

investigations 11,245,700

Training resources 9,150,000

Out-of-home placements

Congregategroup care 114,918,700 132,608,300

Extended foster care 26,553,900 19,887,200

Extended foster care servicemodel

fund deposit 19,243,300*

Foster home placement 51,929,500 40,706,500

Foster home recruitment,

study andsupervision 32,753,600

Kinship care 24,811,200 16,214,200

Permanent placements

Adoptionservices 294,923,500 282,574,300

Permanent guardianship subsidy 12,516,900 15,622,000

Positive parentingprogram for post

permanencyplacements pilot 4,000,000*

Supportservices

DCS child care subsidy 61,675,400

In-home mitigation 28,988,100 41,529,300

Out-of-home support services 122,710,800 113,284,600

Preventive services 29,648,300

Comprehensivehealth plan

Comprehensive health plan

services 161,546,700

Comprehensive health plan

administration 27,461,200

Comprehensive health plan

premium tax 3,857,300

Totalappropriation and expenditure

authority — department of

child safety $1,335,688,500 $1,350,588,500

Fund sources:

State general fund $496,179,600 $500,879,600

Federal child care and

developmentfund block grant 40,516,000

Federal temporary assistance

for needyfamilies block

grant 161,082,200

Child abuse prevention fund 1,459,300

Children and family services

trainingprogram fund 208,000

Child safety expenditureauthority 442,357,400 452,557,400

Child welfare licensing fee fund 1,020,800

Comprehensive health plan

expenditureauthority fund —

expenditureauthority 192,865,200

Additionaloperating resources

Thedepartment of child safety shall provide training to any new child safety FTEpositions before assigning any client caseload duties to any of theseemployees.

The legislature intends that thedepartment of child safety use its funding to achieve a one hundred percentinvestigation rate.

All expenditures made by thedepartment of child safety for attorney general legal services shall be fundedonly from the attorney general legal services line item. Monies in departmentof child safety line items intended for this purpose shall be transferred tothe attorney general legal services line item before expenditure.

The amountappropriated for the caseworkers line item includes a onetime increase of$19,700,000 from the state general fund for increased operating expenditures infiscal year 2023-2024. This amount is exempt from the provisions ofsection 35-190, Arizona Revised Statutes, relating to lapsing of appropriationsuntil June 30, 2025.

On or beforeSeptember 1, 2024, the department shall submit a report to the jointlegislative budget committee and the governor's office of strategic planningand budgeting on actual operating expenses for the guardian case managementsystem in fiscal year 2023-2024, as well as proposed system operating expensesfor fiscal year 2024-2025.

Out-of-home placements

Thedepartment of child safety may transfer up to ten percent of the total amountof federal temporary assistance for needy families block grant moniesappropriated to the department of economic security and the department of childsafety to the social services block grant. Before transferringfederal temporary assistance for needy families block grant monies to thesocial services block grant, the department of child safety shall report theproposed amount of the transfer to the director of the joint legislative budgetcommittee. This report may be in the form of an expenditure plan that issubmitted at the beginning of the fiscal year and updated, if necessary,throughout the fiscal year.

The amount appropriated for kinshipcare shall be used for a stipend of $300 per month for a relative caretaker,including a grandparent, any level of great-grandparent or anynongrandparent relative, or a caretaker of fictive kinship, if a dependentchild is placed in the care of a relative caretaker or caretaker of fictivekinship pursuant to department guidelines. The department shallprovide the stipend on behalf of all children placed with an unlicensed kinshipfoster care parent. The unlicensed kinship foster care parent is notrequired to file an application to receive the stipend. Before changing theeligibility for the program or the amount of the stipend, the department shallsubmit a report for review by the joint legislative budget committee detailingthe proposed changes.

On or before March 31, 2024, thedepartment of child safety shall report to the joint legislative budgetcommittee the number of children who are part of the kinship stipend programand reside with a nonrelative caretaker of fictive kinship.

Departmentwide

The amount appropriated for any lineitem may not be transferred to another line item or to the operating budgetunless the transfer is reviewed by the joint legislative budget committee, exceptthat transfers between any two line items relating to the comprehensive healthplan are not subject to review.

Child safety expenditure authority includes all departmentfunding sources excluding the state general fund, the federal child care anddevelopment fund block grant, the federal temporary assistance for needyfamilies block grant, the child abuse prevention fund, the children and familyservices training program fund and the comprehensive health plan expenditureauthority fund.

On or before December 1, 2023, the department of child safetyshall submit a report to the joint legislative budget committee on thedepartment's efforts to implement the family first prevention services act of2018. The report shall quantify the department's efforts in at leastthe following areas, including any associated fiscal impacts:

1. Reducing the number of children placed for morethan two weeks in congregate care settings, excluding qualified residentialtreatment programs, facilities for pregnant and parenting youth, supervisedindependent living and specialized programs for victims of sex trafficking.

2. Assisting congregate care providers in attainingstatus as qualified residential treatment programs.

3. Identifying alternative placements, includingtherapeutic foster homes, for children who would otherwise be placed incongregate care.

4. Expanding evidence-based, in-home parentskill-based programs and mental health and substance abuse prevention andtreatment services.

Benchmarks

For the purposes of this section, "backlog case":

1. Means any nonactive case for which documentationhas not been entered in the child welfare automated system for at least sixtydays and for which services have not been authorized for at least sixty daysand any case that has had an investigation, has been referred to another unitand has had no contact for at least sixty days.

2. Includes any case for which the investigation hasbeen open without any documentation or contact for at least sixty days, anycase involving in-home services for which there has been no contact orservices authorized for at least sixty days and any case involving foster carein which there has been no contact or any documentation entered in the childwelfare automated system for at least sixty days.

For the purposes of this section:

1. "Long-term case" means any casein which the child has been in an out-of-home placement for atleast eighteen months.

2. "Open report" means a report that isunder investigation or awaiting closure by a supervisor.

On or before February 28, 2024 and August 31, 2024, thedepartment of child safety shall present a report to the joint legislativebudget committee on the progress made during July 2023 through December 2023and January 2024 through June 2024, respectively, in meeting the caseloadstandard and reducing the number of backlog and long-termcases. Each report shall include the number of backlog cases, thenumber of open reports, the number of long-term cases and the caseworkerworkload in comparison to the previous six months. Each report shall providethe number of backlog cases by disposition, including the number of backlogcases in the investigation phase, the number of backlog cases associated without-of-home placements and the number of backlog cases associatedwith in-home cases.

To determine the caseworker workload, the department shallreport the number of case-carrying caseworkers at each field office and thenumber of investigations, in-home cases and long-term cases assigned toeach field office.

For backlog cases, the department's benchmark is 1,000 cases.

For open reports, the department's benchmark is fewer than8,000 open reports.

For long-term cases, thedepartment's benchmark is 3,323 cases.

If the department of child safety hasnot submitted a required report within thirty days after the report is due, thedirector of the joint legislative budget committee shall inform the generalaccounting office of the department of administration, which shall withhold twopercent of the department of child safety's operating lump sum semiannualbudget allocation until the department of child safety submits the requiredreport.

Sec.8. Laws 2023, chapter 133, section 23 isamended to read:

Sec.23. STATE DEPARTMENT OF CORRECTIONS

2023-24

FTE positions 9,569.0

Operating lump sum appropriation $ 898,184,300 $ 801,476,900

Private prison per diem 289,858,400 289,069,200

Community corrections 27,681,200 25,681,200

Inmate health care contracted

services 321,620,200 317,881,700

Substance abuse treatment 5,445,400

Transitional and reentry housing 5,000,000*

Transitional housing grants 2,000,000

Inmate dog training 650,000

Noncontractmedication 40,746,500

Injunction-relatedIT upgrades 4,770,300

Total appropriation — state department

ofcorrections $1,550,439,500 $1,492,721,900

Fund sources:

State general fund $1,492,541,000 $1,429,675,200

State education fund for

correctionaleducation 738,900

Alcohol abuse treatment fund 555,800

Penitentiary land fund 2,777,600 5,243,200

State charitable,penal and

reformatoryinstitutions

landfund 2,665,100 5,347,000

Corrections fund 31,312,500

Transitionprogram fund 4,400,300

Prisonconstruction and

operationsfund 14,106,800

Inmatestore proceeds fund 1,341,500

Of the amount appropriated in the operating lump sum, $495,853,200 $480,658,000 is designatedfor personal services, $234,006,200 $227,494,000is designated for employee-related expenditures and $15,540,500 is designatedfor overtime expenditures. The department shall submit an expenditure plan forreview by the joint legislative budget committee before spending these moniesother than for personal services or employee-related expenditures.

After the department submits an expenditure plan to the jointlegislative budget committee, the department may transfer personal services andemployee-related expenditures savings from the operating budget to the privateprison per diem line item for private prison staff stipends. The amount of anyprivate prison staff stipend may not exceed the amount given to departmentstaff. The expenditure plan is not subject to review by the joint legislativebudget committee.

Private prison vendors who contract with this state may usestaff vacancy savings to pay for overtime costs without incurring a penalty orstaffing offset.

Before placing any inmates in out-of-state provisional beds,the department shall place inmates in all available prison beds in facilitiesthat are located in this state and that house Arizona inmates, unless theout-of-state provisional beds are of a comparable security level and price.

The state department of corrections shall forward to thepresident of the senate, the speaker of the house of representatives, thechairpersons of the senate and house of representatives appropriationscommittees and the director of the joint legislative budget committee a monthlyreport comparing department expenditures for the month and year-to-dateas compared to prior-year expenditures on or before the thirtieth of thefollowing month. The report shall be in the same format as the priorfiscal year and include an estimate of potential shortfalls, potentialsurpluses that may be available to offset these shortfalls and a plan, ifnecessary, for eliminating any shortfall without a supplemental appropriation.The report shall include the number of filled and vacant correctional officerand medical staff positions departmentwide and by prison complex.

On or before November 1, 2023, the state department ofcorrections shall provide a report on bed capacity to the joint legislativebudget committee. The report shall reflect the bed capacity for each securityclassification by gender at each state-run and private institution, divided byrated and total beds. The report shall include bed capacity data for June 30,2022 and June 30, 2023 and the projected capacity for June 30, 2024, as well asthe reasons for any change within that time period. Within the total bedcount, the department shall provide the number of temporary and special usebeds. The report shall also address the department's rationale foreliminating any permanent beds rather than reducing the level of temporarybeds. The report shall also include any plans to vacate beds but notpermanently remove the beds from the bed count.

If the department develops a plan after the department'sNovember 1, 2023 report to open or close 100 or more state-operated orprivate prison rated beds, the department shall submit a plan detailing theproposed bed changes for review by the joint legislative budget committeebefore implementing these changes.

One hundred percent of land earnings and interest from thepenitentiary land fund shall be distributed to the state department ofcorrections in compliance with the enabling act and the Constitution of Arizonato be used to support state penal institutions.

On or before December 15, 2023 and July 15, 2024, the statedepartment of corrections shall submit a report to the joint legislative budgetcommittee on the progress made in meeting the staffing needs for correctionalofficers. Each report shall include the number of filledcorrectional officer positions, the number of vacant correctional officerpositions, the number of people in training, the number of separations and thenumber of hours of overtime worked year-to-date. Thereport shall detail these amounts both departmentwide and by prison complex.

Twenty-five percent of land earnings and interest fromthe state charitable, penal and reformatory institutions land fund shall bedistributed to the state department of corrections in compliance with theenabling act and the Constitution of Arizona to be used to support state penalinstitutions.

Before spending any state education fund for correctionaleducation monies in excess of $738,900, the state department of correctionsshall report the intended use of the monies to the director of the jointlegislative budget committee.

Before implementing anychanges in contracted rates for inmate health care contracted services, thestate department of corrections shall submit its expenditure plan for review bythe joint legislative budget committee.

On or before August 1, 2023and February 1, 2024, the state department of corrections shall submit areport to the joint legislative budget committee on the status of all inmatehealth care performance measures that are tracked by the department for contract monitoring purposes. Each reportmust include:

1. The totalnumber of performance measures, by facility, for which the department is not insubstantial compliance.

2. Anexplanation for each instance of noncompliance.

3. Thedepartment's plan to comply with the performance measures.

On or before August 1, 2023, the state department ofcorrections shall transfer to the public safety personnel retirement system viathe department of administration its estimated required annual contribution tothe corrections officer retirement plan for fiscal year 2023-2024.

The department shall report actual fiscal year 2022-2023,estimated fiscal year 2023-2024 and requested fiscal year 2024-2025expenditures as delineated in the prior year when the department submits itsfiscal year 2024-2025 budget request pursuant to section 35-113, ArizonaRevised Statutes.

On or before July 15, 2023, the state department of correctionsshall submit a report to the joint legislative budget committee detailing theexpenditure of monies appropriated in fiscal year 2021-2022 for medicalstaffing augmentation. The department shall continue to report on July 15 ofeach year until all monies have been expended.

The amount appropriated in the transitional and reentry housingline item shall be used by the state department of corrections to securethrough a competitive grant process a program that does all of the following:

1. Provides evidence-based, evidence-informed andculturally competent substance use treatment and substance use earlyintervention services that includes referral services, stabilization, detox,inpatient treatment, transitional residence and outpatient services toindividuals who may have one or a combination of the following conditions:

(a) Involvement with the justice system.

(b) A mental health diagnosis, including a diagnosisas being seriously mentally ill.

(c) A co-occurring chronic health condition.

(d) Experienced homelessness or are at a high riskof becoming homeless.

2. Provides residential inpatient treatment servicesfor up to ninety days and provides long-term recovery supportive housing for upto twenty-four months after inpatient treatment services end.

3. Delivers forensic peer and family supportservices to enhance and strengthen successful reentry into the community thatinclude workforce development, securing permanent housing, navigating systemsof care, educational and professional development opportunities, familyconnection and reintegration services, supporting multiple pathways to recoveryand providing sober social activities.

4. Uses technology to promote long-term recovery.

5. Delivers treatment for reentry and long-termrecovery services and provides support via a campus-based continuum of caremodel where services and support are colocated.

The amount appropriated in thetransitional housing grants line item shall be used to establish a program toprovide grants to nonprofit organizations that support individuals who areincarcerated by helping prepare them for release and transition back into thecommunity. To be eligible for a grant, a nonprofit organization must meet allof the following criteria:

1. Have a verifiable record of mentoring at leastthree thousand inmates while the inmates were in prison for at least a two-yearperiod.

2. Use the grant monies for individuals that havebeen previously mentored by the nonprofit organization. To receiveresources from the grant, individuals being released from prison must have beenmentored for at least three months by the nonprofit organization while theindividual was in prison.

3. Demonstrate that the nonprofit organization canprovide individuals being released from prison with all of the following:

(a) Up to two weeks of housing at no cost to theindividual, if necessary as assessed by the nonprofit organization and up tosix months of housing at a reduced rate.

(b) Behavioral health services, including peersupport and case management.

(c) Assistance with obtaining government-issueddocuments.

(d) Within four months after release, assistancewith securing employment that offers health insurance and assistance withdisenrolling from the Arizona health care cost containment system.

On or before August 31, 2024, the department shall submit areport to the governor, the president of the senate and the speaker of thehouse of representatives that includes all of the following for the prior year:

1. The names of the nonprofit organizations thatwere awarded grants.

2. The number of individuals who were served by thenonprofit organizations through the grant program.

3. The number of individuals who were served by thenonprofit organizations, who found employment that provides health insuranceand who were disenrolled from the Arizona health care cost containment system.

The amount appropriated in the inmate dog training line itemshall be used to contract with a nonprofit organization that trains inmates torehabilitate and resocialize at-risk shelter dogs. The amountappropriated in the inmate dog training line item is exempt from the provisionsof section 35-190, Arizona Revised Statutes, relating to lapsing ofappropriations, until June 30, 2025.

The department may spend the $2,000,000appropriated by Laws 2022, chapter 313, section 23 for the community treatmentprogram for imprisoned women line item on community corrections line itemexpenditures in fiscal year 2023-2024.

The amount appropriated in the injunction-relatedIT upgrades line item shall be used to address information technologyimprovements as required by the court in the Jensen v. Thornell inmatehealth care litigation. The amount appropriated in the injunction-relatedIT upgrades line item is exempt from the provisions of section 35-190, ArizonaRevised Statutes, relating to lapsing of appropriations, until June 30, 2025.

The department shall use the amount appropriatedin the noncontract medication line item to purchase medications to treathepatitis C, for medication-assisted treatment for substance usedisorder. Before spending these monies for any other purpose, the departmentshall submit an expenditure plan for review by the joint legislative budgetcommittee. The amount appropriated in the noncontract medication line item isexempt from the provisions of section 35-190, Arizona Revised Statutes,relating to lapsing of appropriations, until June 30, 2025.

Sec.9. Laws 2023, chapter 133, section 77 isamended to read:

Sec.77. DEPARTMENTOF PUBLIC SAFETY

2023-24

FTE positions 2,105.7

Operating lump sum appropriation $282,733,100

ACTIC 1,450,000

AZPOST 6,576,000

Border drug interdiction 17,145,900

Local border support 12,232,900

Civil air patrol infrastructure 10,000,000*

Civil air patrol maintenance and

operations 150,000

Department of public safety

crime lab assistance 400,000

Fentanyl prosecution, diversion

and testingfund deposit 3,000,000

GIITEM 25,329,700

GIITEM subaccount 2,396,400

Land mobile radio expansion

and upgrades 44,100,000*

Law enforcement retention

initiatives 2,000,000

Major incident division 17,000,000*

Motor vehicle fuel 9,125,800

Onetime vehicle replacement 11,709,300

Pharmaceutical diversion and

drug theft task force 769,100

Public safety equipment 2,890,000

Real-time crime centers 4,100,000

Total appropriation — department of public

safety $453,108,200

Fund sources:

Stategeneral fund $363,993,000

State highway fund 8,166,700

Arizona highway patrol fund 38,214,500

Criminal justice enhancement fund 2,989,100

Department of public safety

forensics fund 22,985,300

Gang and immigrationintelligence

teamenforcement mission border

security andlaw enforcement

subaccount 2,396,400

Motorcycle safety fund 198,900

Motor vehicle liabilityinsurance

enforcementfund 1,032,000

Risk management revolving fund 1,396,900

Parity compensation fund 4,088,100

Public safety equipment fund 2,894,000

Concealed weapons permit fund 3,172,200

Fingerprint clearance card fund 1,581,100

Of the $25,329,700 appropriated to the GIITEM line item,$13,275,800 shall be used for one hundred department of public safety GIITEM personnel. The additional staff shallinclude at least fifty sworn department of public safety positions to be usedfor immigration enforcement and border security and fifty department of publicsafety positions to assist GIITEM in various efforts, including:

1. Strictlyenforcing all federal laws relating to illegal aliens and arresting illegalaliens.

2. Responding toor assisting any county sheriff or attorney in investigating complaints ofemployment of illegal aliens.

3. EnforcingArizona's law known as the Legal Arizona Workers Act, strictly enforcing Arizona'sSB1070, Arizona's "Support Our Law Enforcement and SafeNeighborhoods Act" and investigating crimes of identity theft in thecontext of hiring illegal aliens and the unlawful entry into this country.

4. Taking strictenforcement action.

Any change in the GIITEMmission or allocation of monies shall be approved by the joint legislativebudget committee. The department shall submit an expenditure plan to the jointlegislative budget committee for review before expending any monies notidentified in the department's previous expenditure plans.

Of the $25,329,700appropriated to the GIITEM line item, only $1,403,400 is deposited in theGIITEM fund established by section 41-1724, Arizona Revised Statutes, andis appropriated for the purposes of that section. The $1,403,400 is exemptfrom the provisions of section 35-190, Arizona Revised Statutes, relatingto lapsing of appropriations. This state recognizes that states haveinherent authority to arrest a person for any immigration violation.

Any monies remaining in the department of public safety jointaccount on June 30, 2024 revert to thefunds from which they were appropriated. The reverted monies shall be returnedin direct proportion to the amounts appropriated.

On or before September 1, 2023, the department of public safetyshall submit an expenditure plan for the local border support line item to thejoint legislative budget committee and the governor's office of strategicplanning and budgeting.

The $12,232,900 appropriated for the local border support lineitem shall be used to fund local law enforcement officer positions for borderdrug interdiction to deter and apprehend any individuals who are charged withdrug trafficking, human smuggling, illegal immigration and other border-relatedcrimes. The monies shall also be used for grants to cities, townsand counties for costs associated with prosecuting and detaining individualswho are charged with drug trafficking, human smuggling, illegal immigration andother border-related crimes. The department may fund all capital-relatedequipment.

Until all of the monies in the civil air patrol infrastructureline item have been distributed, on or before December 1 of each year, thedepartment of public safety shall submit a report to the joint legislativebudget committee on the monies distributed from the civil air patrolinfrastructure line item and the intended purposes of the distributions.

Of the amount appropriated for the department of public safetyonetime vehicle replacement line item in fiscal year 2022-2023 pursuant to Laws2022, chapter 313, section 77, $11,709,300 from the state general fund isexempt from the provisions of section 35-190, Arizona Revised Statutes,relating to the lapsing of appropriations, until June 30, 2025 for the purposeof vehicle replacement.

Of the amount appropriated for the onetime vehicle replacementline item, $11,709,300 are exempt from the provisions of section 35-190,Arizona Revised Statutes, relating to lapsing of appropriations, until June 30,2025.

Of the amount appropriated in the real-time crime centers lineitem, $2,600,000 shall be distributed to the city of Peoria and $1,500,000 tothe city of Tucson to operate real-time crime centers that:

1. Use technology to effectively and safely provideassistance to law enforcement agencies and fire departments and districts.

2. Integrate crime investigation technology toprovide real-time information to responding law enforcement agencies andfire departments and districts.

3. Are available for use by law enforcement agenciesand fire departments and districts that are located in any city, town or countyin the region.

Of the amount appropriated in the total appropriation for thedepartment of public safety, $187,051,200 is designated for personal servicesand $76,864,000 is designated for employee-related expenditures. Thedepartment shall submit an expenditure plan to the joint legislative budgetcommittee for review before spending these monies for other than personalservices or employee-related expenditures.

Of the amount appropriated in the fentanyl prosecution,diversion and testing fund deposit line item, up to $50,000 and 0.5 FTEpositions may be used for costs associated with administering the fentanylprosecution, diversion and testing fund.

Of the amount appropriated in the operating lump sum, $798,600is for a onetime increase from the state general fund in fiscal year 2023-2024for onetime operating expenses. The $798,600 is exempt from the provisions ofsection 35-190, Arizona Revised Statutes, relating to lapsing ofappropriations.

Of the amount appropriated in the law enforcementretention initiatives line item, $1,000,000 shall be used to acquire coachingresources with a special emphasis on improved retention and development of lawenforcement professionals at the department of public safety. Resourceproviders must have coaches with backgrounds in law enforcement who have beentrained in coaching with the best practices for law enforcement coaching fromcurrent or former federal bureau of investigation national academy instructorsand must provide coaching services on an online platform that allows lawenforcement professionals to choose a coach that fits their desired area ofimprovement. The provider must offer a wide array of subject areasand must have analytics to measure impacts specific to improvement, includingofficer retention.

Of the amount appropriated in the law enforcementretention initiatives line item, $1,000,000 shall be used for a law enforcementrecruitment and retention grant program to provide matching grants to county,city and town law enforcement agencies for the purposes of acquiring coachingresources with a special emphasis on improved retention and development of lawenforcement professionals at the county, city and town law enforcementagencies. Resource providers must have coaches with backgrounds inlaw enforcement who have been trained in coaching with the best practices forlaw enforcement coaching from current or former federal bureau of investigationnational academy instructors and must provide coaching services on an onlineplatform that allows law enforcement professionals to choose a coach that fitstheir desired area of improvement. The provider must offer a wide array ofsubject areas and must have analytics to measure impacts specific toimprovement, including officer retention. The county law enforcement agenciesin Maricopa and Pima counties must provide a fifty percent match to receive agrant and county law enforcement agencies in all other counties must provide atwenty-five percent match to receive a grant. The city law enforcementagencies in Phoenix and Tucson must provide a fifty percent match to receive agrant and city and town law enforcement agencies in all other cities and townsmust provide a twenty-five percent match to receive agrant. The department of public safety shall establish proceduresfor applying for grants, and county, city and town law enforcement agenciesthat receive grant monies must use the monies to obtain recruitment andretention resources and services.

the Department of public safety shall distributethe amount appropriated in the law enforcement retention initiatives line itemto the following law enforcement agencies for recruitment and retentionservices and software:

1. Arizona Department of Public Safety $500,000

2. YavapaiCounty Sheriff's Office $200,000

3. PeoriaPolice Department $225,000

4. TempePolice Department $350,000

5. OroValley Police Department $125,000

6. QueenCreek Police Department $175,000

7. FlagstaffPolice Department $150,000

8. BuckeyePolice Department $150,000

9. SurprisePolice Department $125,000

each law enforcement agency that receives moniesdistributed from the law enforcement retention initiatives line item may onlyspend the monies to obtain goods and services from a vendor that does all ofthe following:

1. Offersperformance coaching services facilitated by qualified coaches who have beentrained or vetted by current or former instructors of the Federal Bureau ofInvestigation National Academy.

2. Providesaccessible coaching services through an online platform, which offers a widearray of coaching options and subject areas for law enforcement professionals.

3. includesanalytics to measure the impacts of recruitment and retention services,including assessments of individual officer or employee performance.

4. Offersa comprehensive recruitment audit and training program designed specificallyfor agency recruiters.

5. Providessoftware or technology solutions to support a variety of recruitment andretention activities within law enforcement agencies.

the amount appropriated in the law enforcementretention initiatives line item is exempt from the provisions of section35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

Of the amount appropriated to the department of public safetyfor onetime K-9 support in fiscal year 2022-2023 pursuant to Laws 2022, chapter313, section 77, $1,900,000 from the state general fund isexempt from the provisions of section 35-190, Arizona Revised Statutes,relating to lapsing of appropriations.

Of the amount appropriated in the operating lump sum,$1,500,000 is for a onetime increase from the state general fund in fiscal year2023-2024 for rapid DNA testing and analysis.

Sec.10. Laws 2023, chapter 133, section 97 is amended to read:

Sec.97. DEPARTMENTOF WATER RESOURCES

2023-24

FTEpositions 179.0

Operatinglump sum appropriation $15,228,500

Adjudication support 1,900,600

Arizona water protection fund

deposit 1,250,000

Assured and adequate watersupply

administration 2,513,400

Brackish groundwater study 100,000*

Brackishgroundwater recovery pilot

program 11,000,000*

Rural water studies 1,290,800

Conservation and drought program 430,300

Automated groundwater monitoring 418,600

Colorado River legal expenses 500,000*

Water supply and demandassessment 3,500,000

Santa Rosa canal groundwater

delivery 25,000,000*

Statewide water resourcesplanning 5,000,000

Total appropriation - department of water

resources $68,132,200 $57,132,200

Fund sources:

Stategeneral fund $66,114,500 $55,114,500

Water resources fund 1,726,500

Assured and adequate water

supplyadministration fund 291,200

Monies in the assured and adequate water supply administrationline item may be used only for the exclusive purposes prescribed in sections 45-108,45-576, 45-577, 45-578 and 45-579, Arizona RevisedStatutes. The department of water resources may not transfer anymonies into or out of the assured and adequate water supply administration lineitem.

The department of waterresources shall use the monies in the brackish groundwater study line item toreview and update information contained in studies on the availability ofbrackish groundwater in this state.

Of the $11,000,000 allocated to the brackishgroundwater recovery pilot program line item, $2,000,000 is allocated to thedepartment of water resources for a brackish groundwater desalinationdemonstration program and to develop a base of knowledge to enhance groundwaterrecovery through desalination in this state's active managementareas. The department shall locate this pilot program within thedepartment's active management area section and a portion of the monies may beused for staffing. The department shall organize the program following themodel of work undertaken by the Texas water development board to further theuse and development of cost-effective desalination technologies.

Of the $11,000,000allocated to the brackish groundwater recovery pilot program line item,$9,000,000 is allocated for matching participants dollar-for-dollarfor brackish groundwater desalination projects within active management areasundertaken for the benefit of those receiving water from the central Arizonaproject. The central Arizona project shall receive three dollars forevery dollar it contributes to this pilot program.

The legislature intendsthat monies in the rural water studies line item be spent only to assess localwater use needs and to develop plans for sustainable future water supplies inrural areas outside this state's active management areas and not be madeavailable for other department operating expenditures.

Monies in the adjudicationsupport line item may be used only for the exclusive purposes prescribed insection 45-256, Arizona Revised Statues, and section 45-257, subsection B,paragraph 4, Arizona Revised Statutes. The department of water resources maynot transfer any monies into or out of the adjudication support line item.

The department of waterresources may not transfer any monies from the Colorado River legal expensesline item without prior review by the joint legislative budget committee.

On or before July 31, 2024, the department of water resources shall report to thejoint legislative budget committee and the governor's office of strategicplanning and budgeting on the uses of the monies appropriated to the statewidewater resources planning line item.

The department of water resources shall use the monies in theSanta Rosa canal groundwater delivery line item to distribute equally betweenthe irrigation districts that are constructing infrastructure in furtherance ofthe purposes of the settlement between the Maricopa-Stanfield irrigationand drainage district, the central Arizona irrigation and drainage district andthe Ak-Chin Indian community and with respect to the delivery of groundwater bythe districts by means other than the Santa Rosa canal.

Sec.11. Laws 2023, chapter 133, section 113 isamended to read:

Sec.113. Automation projects fund; appropriations; quarterly reports;exemption; fiscal year 2023-2024

A. The sum of $20,647,800 is appropriated from thehuman resources information system subaccount in the automation projects fundestablished pursuant to section 41-714, Arizona Revised Statutes, in fiscalyear 2023-2024 to the department of administration to replace the humanresources information system.

B. The sum of $15,000,000 is following amounts are appropriated from the health and humanservices information system subaccount in the automation projects fundestablished pursuant to section 41-714, Arizona Revised Statutes, in fiscalyear 2023-2024 to the department of administration for thefollowing statewide health and human services information technologyprojects:

1. $6,700,000 for a new informationtechnology platform to authenticate individuals applying for health and humanservice programs to prevent fraud, waste and abuse. This project is subject toreview by the joint legislative budget committee.

2. $2,814,600 for the development ofseveral modules associated with the medicaid enterprise system mainframereplacement. This project is deemed to have been favorably reviewedby the joint legislative budget committee.

3. $1,685,400 for medicaid enterprisesystem fraud and waste abuse prevention enhancements. This projectis deemed to have been favorably reviewed by the joint legislative budgetcommittee.

4. $2,000,000 for the medicaidenterprise system systems integrator, which establishes a platforminfrastructure in the cloud to serve as the foundation for the modularreplacement of the prior prepaid medicaid management information system, andservicenow projects. This amount was favorably reviewed by the jointlegislative budget committee in october 2023.

C. Thesum of $1,800,000 is transferred from the health and human services informationsystem subaccount in the automation projects fund established pursuant tosection 41-714, Arizona revised statutes, in fiscal year 2023-2024 for depositin the state general fund.

C. D. Thesum of $2,000,000 is appropriated from the department of administrationsubaccount in the automation projects fund established pursuant to section41-714, Arizona Revised Statutes, in fiscal year 2023-2024 to thedepartment of administration for the K-12 school financial transparencyreporting portal.

D. E. Thesum of $7,000,000 is appropriated from the corporation commission subaccount inthe automation projects fund established pursuant to section 41-714, ArizonaRevised Statutes, in fiscal year 2023-2024 to the corporation commissionto replace the corporation commission's online records and filingsystem. As part of the department of administration's request forexpenditure review pursuant to section 41-714, Arizona Revised Statutes, thedepartment shall also submit a report for review of the agency's plan tosupport the business one-stop project through its completion, including plansfor how the new system will integrate with the business one-stop solution.

E. F. Thesum of $494,500 is appropriated from the department of public safety subaccountin the automation projects fund established pursuant to section 41-714, ArizonaRevised Statutes, in fiscal year 2023-2024 to the department of publicsafety to replace the concealed weapons tracking system.

F. G. Thesum of $19,369,400 is appropriated from the department of revenue subaccount inthe automation projects fund established pursuant to section 41-714, ArizonaRevised Statutes, in fiscal year 2023-2024 to the department of revenue toimplement the integrated tax system modernization project. The moniesappropriated in this subsection shall be spent for an integrated tax systemmodernization project that meets the following minimum specifications:

1. Captures data fields from electronically filedindividual and corporate income tax returns and makes the data available for queryingand reporting purposes. The system shall provide the department of revenuestaff, the joint legislative budget committee staff and governor's office ofstrategic planning and budgeting staff direct access to the querying andreporting functions. The querying and reporting functions shallinclude procedures to protect taxpayer confidentiality under applicable stateand federal law.

2. For electronic corporate income tax returns,captures information regarding the principal business activity of thecorporation. This requirement may be satisfied through North American industryclassification system data listed on federal tax forms. The tax system shallallow for querying and reporting based on principal business activity.

3. Includes an integrated individual income taxmodel within the project and provides the department of revenue staff, thejoint legislative budget committee staff and governor's office of strategicplanning and budgeting staff direct access to the individual income tax model. Ata minimum, the model shall allow the department of revenue staff, the jointlegislative budget committee staff and governor's office of strategic planningand budgeting staff to adjust tax law parameters against an anonymizedrepresentative sample of income tax returns to estimate the fiscal impact ofproposed tax legislation. The model shall only include data from state andfederal tax returns that are captured by the tax system. The individual incometax model shall include procedures to protect taxpayer confidentiality underapplicable state and federal law.

4. Makes individual and corporate income tax dataavailable for querying, modeling and reporting within twenty-four monthsfollowing the end of a tax year.

Before awarding any procurement contract for the tax system,the department of revenue shall submit a report addressing the projectspecifications contained in this subsection for review by the joint legislativebudget committee.

G. H. Aspart of the department of administration's request for expenditure reviewpursuant to section 41-714, Arizona Revised Statutes shall, the departmentshall also submit a report for review of the agency's plan to support thebusiness one-stop project through its completion, including plans for how thenew system will integrate with the business one-stop solution.

H. I. Thefollowing amounts are appropriated from the judiciary-supreme courtsubaccount in the automation projects fund established pursuant to section41-714, Arizona Revised Statutes, in fiscal year 2023-2024 to the Arizonasupreme court for the following automation and information projects:

1. $3,270,000 to replace the probation casemanagement system.

2. $2,500,000 for a statewide community supervisionelectronic monitoring system.

Quarterly Reports

I. J. Withinthirty days after the last day of each calendar quarter, the department ofadministration shall submit to the joint legislative budget committee aquarterly report on implementing projects approved by the informationtechnology authorization committee established by section 18-121, ArizonaRevised Statutes, including the projects' expenditures to date, deliverables,timeline for completion and current status.

Nonlapsing

J. K. The amount appropriated pursuant to this sectionfrom the automation projects fund established by section 41-714, ArizonaRevised Statutes, in fiscal year 2023-2024 is exempt from the provisions ofsection 35-190, Arizona Revised Statutes, relating to lapsing ofappropriations, until June 30, 2025.

K. L. NotwithstandingLaws 2021, chapter 408, section 117, the following amounts appropriated fromthe automation projects fund established pursuant to section 41-714, ArizonaRevised Statutes, in fiscal year 2021-2022 to the department of administrationby Laws 2021, chapter 408, section 117 are exempt from the provisions ofsection 35-190, Arizona Revised Statutes, relating to lapsing ofappropriations, until June 30, 2024:

1. $7,758,900 from the department of administrationsubaccount in the automation projects fund established pursuant to section41-714, Arizona Revised Statutes, to develop a business one-stop web portal.

2. $9,000,000 appropriated from the department ofeconomic security subaccount in the automation projects fund establishedpursuant to section 41-714, Arizona Revised Statutes, to update the childcaremanagement system at the department of economic security.

3. $550,000 appropriated from the department ofpublic safety subaccount in the automation projects fund established pursuantto section 41-714, Arizona Revised Statutes, to the department ofadministration to update the concealed weapons tracking system at thedepartment of public safety.

Sec. 12. Subjectto applicable laws, the sums or sources of revenue set forth in this act areappropriated for the fiscal years indicated and only from the funding sourceslisted for the purposes and objects specified. If monies from funding sourcesin this act are unavailable, no other funding source may be used.

Sec. 13. ARIZONA STATE BOARD OF ACCOUNTANCY

2024-25

FTE positions 14.0

Lump sum appropriation $ 2,230,400

Fund sources:

Board ofaccountancy fund $ 2,230,400

Sec. 14. ACUPUNCTUREBOARD OF EXAMINERS

2024-25

FTEpositions 1.0

Lump sumappropriation $ 200,600

Fundsources:

Acupunctureboard of examiners

fund $ 200,600

Sec. 15. DEPARTMENT OF ADMINISTRATION

2024-25

FTE positions 548.1

Operatinglump sum appropriation $93,677,400

Utilities 7,649,900

Arizonafinancial information

system 11,480,000

Riskmanagement administrative

expenses 10,870,700

Riskmanagement losses and

premiums 54,414,800

Workers'compensation losses

andpremiums 28,395,000

Cyberrisk insurance 23,037,200

Informationtechnology project

managementand oversight 1,656,700

Statesurplus property sales

agencyproceeds 1,810,000

Digitalsolutions office 1,345,700

Criticalapplications catalogue 900,000

Cybersecuritysystems

administration 446,500

Schooldistrict health insurance

actuarialstudy 250,000

Governmenttransformation office 2,055,500

Totalappropriation — department of

administration $237,989,400

Fundsources:

Stategeneral fund $ 9,295,100

Airquality fund 928,200

Arizonafinancial information

systemcollections fund 11,480,000

Automationoperations fund 29,726,400

Capitaloutlay stabilization fund 20,997,700

Correctionsfund 628,900

Cyberrisk insurance fund 23,037,200

Federalsurplus materials revolving

fund 468,200

Informationtechnology fund 3,951,500

Personneldivision fund 13,922,500

Riskmanagement revolving fund 101,874,600

Specialemployee health insurance

trustfund 5,684,700

Special services revolving fund 1,243,000

State surplus materials revolving

fund 3,048,900

Stateweb portal fund 9,329,300

Telecommunicationsfund 2,373,200

The appropriation from the automationoperations fund established by section 41-711, Arizona Revised Statutes, is anestimate representing all monies, including balance forward, revenues andtransfers during fiscal year 2024-2025. These monies areappropriated to the department of administration for the purposes establishedin section 41-711, Arizona Revised Statutes. The appropriation isadjusted as necessary to reflect monies credited to the automation operationsfund for automation operation center projects. Before spending any automationoperations fund monies in excess of $29,726,400 in fiscal year 2024-2025, thedepartment shall report the intended use of the monies to the joint legislativebudget committee.

On or before September 1, 2025, thedepartment shall submit a report to the joint legislative budget committee onthe results of pilot projects implemented in fiscal year 2024-2025 for thestate employee public transportation service reimbursem*nts pursuant to section41-710.01, Arizona Revised Statutes, in a vehicle emissions control area asdefined in section 49-541, Arizona Revised Statutes, of a county with a populationof more than four hundred thousand persons.

All state surplus materials revolvingfund monies received by the department of administration in excess of$3,048,900 in fiscal year 2024-2025 are appropriated to thedepartment. Before spending state surplus materials revolving fundmonies in excess of $3,048,900 in fiscal year 2024-2025, the department shallreport the intended use of the monies to the joint legislative budgetcommittee.

On or before November 1, 2025, thedepartment shall submit a report to the director of the joint legislativebudget committee on expenditures made from the cyber risk insurance fundestablished by section 41-622, Arizona Revised Statutes, from the prior year.

The amount appropriated for a schooldistrict health insurance actuarial study shall be used to conduct an actuarialstudy of the cost and benefits for school district optional participation inthe state health insurance program. On or before December 31, 2024, thedepartment shall submit a report to the governor, the president of the senate,the speaker of the house of representatives and the director of the jointlegislative budget committee on the findings of the school district healthinsurance actuarial study.

Sec. 16. DEPARTMENT OF ADMINISTRATION, DIVISION OF SCHOOL FACILITIES

2024-25

FTE positions 17.0

Operating lump sum appropriation $ 1,653,400

New school facilities debt service 9,938,100

Building renewal grants deposit 199,967,900

New school facilities 31,489,500

Total appropriation — department of

administration, division

of school facilities $243,048,900

Fund sources:

State general fund $243,048,900

Pursuant to section 35-142.01, ArizonaRevised Statutes, any reimbursem*nt received by or allocated to the division ofschool facilities under the federal qualified school construction bond programin fiscal year 2024-2025 shall be deposited in or revert to the state generalfund.

At least thirty days before any moniesare transferred out of the new school facilities debt service line item, thedivision of school facilities shall report the proposed transfer to thedirector of the joint legislative budget committee.

Pursuant to section 41-5741, ArizonaRevised Statutes, the amount appropriated for new school facilities shall beused only for facilities and land costs for school districts that receivedfinal approval from the division of school facilities on or before December 15,2023.

The division of school facilities mayalso use the unencumbered balance of up to $24,613,700 in the new schoolfacilities fund established by section 41-5741, Arizona Revised Statutes, forfacilities and land costs for school districts that received final approvalfrom the division of school facilities on or before December 15, 2023 pursuantto section 41-5741, Arizona Revised Statutes.

Thedivision of school facilities may also use the unencumbered balance of up to$3,595,000 in the new school facilities fund established by section 41-5741,Arizona Revised Statutes, for construction costs for the Pima unified schooldistrict new high school construction project that received final approval fromthe division of school facilities on December 15, 2021.

After approving a distribution offunding for a land purchase, a land lease or the construction of a new school,the division of school facilities shall report to the joint legislative budgetcommittee and the governor's office of strategic planning and budgeting thefinal amount of the distribution.

Sec. 17. OFFICE OF ADMINISTRATIVE HEARINGS

2024-25

FTE positions 12.0

Lump sum appropriation $ 1,190,000

Fundsources:

Stategeneral fund $ 1,190,000

Of the moniesappropriated to the office of administrative hearings in the lump sumappropriation, $200,000 shall be used to administer the provisions of a billaddressing insurance provider claims against insurers if the bill becomes lawin the fifty-sixth legislature, second regular session. These moniesrevert to the state general fund if a bill addressing provider claims againstinsurers does not become law in the fifty-sixth legislature, second regularsession.

Sec. 18. ARIZONADEPARTMENT OF AGRICULTURE

2024-25

FTEpositions 209.4

Operatinglump sum appropriation $16,941,200

Agriculturalemployment relations

board 23,300

Animaldamage control 65,000

Red imported fire ant control 23,200

Agricultural consulting and

training 135,700

Totalappropriation — Arizona department

ofa*griculture $ 17,188,400

Fund sources:

Stategeneral fund $ 15,605,100

Airquality fund 1,583,300

Sec. 19. ARIZONA HEALTHCARE COST CONTAINMENT SYSTEM

2024-25

FTEpositions 2,459.3

Operatinglump sum appropriation $155,687,100

Administration

AHCCCS data storage 19,325,800

DES eligibility 97,074,500

Proposition204 — AHCCCS

administration 15,222,200

Proposition204 — DES eligibility 44,358,700

Medicaid services

Traditionalmedicaid services 8,544,224,600

Proposition204 services 7,769,810,300

Adultexpansion services 740,010,600

Comprehensivemedical and

dentalprogram 177,233,200

KidsCareservices 229,689,800

ALTCSservices 2,472,720,900

Behavioralhealth services

inschools 8,630,600

Nonmedicaid behavioral health services

Crisis services 16,391,300

Nonmedicaid seriously mentally

ill services 77,646,900

Supported housing 65,324,800

Hospital payments

Disproportionate share payments 5,087,100

Disproportionate share payments —

voluntary match 65,330,500

Criticalaccess hospitals 28,416,700

Graduate medical education 469,246,600

Targetedinvestments program 56,000,000

Totalappropriation and expenditure

authority— Arizona health

carecost containment system $21,057,432,200

Fund sources:

State general fund $2,669,367,000

Budget neutrality compliance fund 4,914,300

Children's health insurance

programfund 174,025,900

Prescriptiondrug rebate

fund— state 189,831,600

Seriouslymentally ill

housingtrust fund 217,700

Substanceabuse services fund 2,250,200

Tobacco products tax fund —

emergency health services

account 17,458,500

Tobacco tax and health care

fund — medically needy account 66,586,300

Expenditureauthority 17,932,780,700

Operating budget

The amount appropriated for the DESeligibility line item shall be used for intergovernmental agreements with thedepartment of economic security for eligibility determination and otherfunctions. The state general fund share may be used for eligibilitydetermination for other programs administered by the division of benefits andmedical eligibility based on the results of the Arizona random moment samplingsurvey.

The amounts included in theproposition 204 — AHCCCS administration, proposition 204 — DES eligibility andproposition 204 services line items include all available sources of fundingconsistent with section 36-2901.01, subsection B, Arizona RevisedStatutes.

Before spending the monies for thereplacement of the prepaid medicaid management information system, the Arizonastrategic enterprise technology office shall submit, on behalf of the Arizonahealth care cost containment system, an expenditure plan for review by thejoint legislative budget committee. The report shall include the project cost,deliverables, the timeline for completion and the method of procurement thatare consistent with the department's prior reports for its appropriations fromthe automation projects fund.

Medical services and behavioralhealth services

Before making fee-for-service programor rate changes that pertain to fee-for-service rate categories, the Arizonahealth care cost containment system administration shall report its expenditureplan for review by the joint legislative budget committee.

The Arizona health care costcontainment system administration shall report to the joint legislative budgetcommittee on or before March 1, 2025 on preliminary actuarial estimates of thecapitation rate changes for the following fiscal year along with the reasonsfor the estimated changes. For any actuarial estimates that includea range, the total range from minimum to maximum may not be more than twopercent. Before implementing any changes in capitation rates, theadministration shall report its expenditure plan for review by the jointlegislative budget committee. Before the administration implementsany change in policy affecting the amount, sufficiency, duration and scope ofhealth care services and who may provide services, the administration shallprepare a fiscal impact analysis on the potential effects of this change on thefollowing year's capitation rates. If the fiscal impact analysisdemonstrates that this change will result in additional state costs of$1,000,000 or more for any fiscal year, the administration shall submit thepolicy change for review by the joint legislative budget committee.

The legislature intends that thepercentage attributable to administration and profit for the regionalbehavioral health authorities be nine percent of the overall capitation rate.

The Arizona health care costcontainment system administration shall transfer up to $1,200,000 from thetraditional medicaid services line item for fiscal year 2024-2025 to theattorney general for costs associated with e-cigarette enforcement andtobacco settlement litigation.

The Arizona health care costcontainment system administration shall transfer $836,000 from the traditionalmedicaid services line item for fiscal year 2024-2025 to the department ofrevenue for enforcement costs associated with the March 13, 2013 master settlementagreement with tobacco companies.

The amount appropriated for thetraditional medicaid services line item includes $4,098,200 from the stategeneral fund and $8,059,900 from expenditure authority for inpatient paymentsto rural hospitals as defined in section 36-2905.02, Arizona Revised Statutes.

Of the amount appropriated for theproposition 204 services line item, $100,000,000 shall be used from thehospital assessment fund established by section 36-2901.09, Arizona RevisedStatutes, to cover a portion of the nonfederal share of the costs of servicesdescribed in section 36-2907, subsection F, Arizona Revised Statutes. Thisamount is included in the expenditure authority fund source.

On or before June 30, 2025, theArizona health care cost containment system administration shall report to thejoint legislative budget committee on the progress in implementing the Arnoldv. Sarn lawsuit settlement. The report shall include, at a minimum, theadministration's progress toward meeting all criteria specified in the 2014joint stipulation, including the development and estimated cost of additionalbehavioral health service capacity in Maricopa county for supported housingservices for 1,200 class members, supported employment services for 750 classmembers, eight assertive community treatment teams and consumer operatedservices for 1,500 class members. The administration shall alsoreport by fund source the amounts it plans to use to pay for expanded services.

Long-term care

Any federal monies that the Arizonahealth care cost containment system administration passes through to thedepartment of economic security for use in long-term care for persons withdevelopmental disabilities do not count against the long-term care expenditureauthority.

Pursuant to section 11-292,subsection B, Arizona Revised Statutes, the county portion of the fiscal year2024-2025 nonfederal costs of providing long-term care system services is$399,872,100. This amount is included in the expenditure authority fundsource.

Any supplemental payments received inexcess of $97,235,600 for nursing facilities that serve Arizona long-term caresystem medicaid patients in fiscal year 2024-2025, including any federalmatching monies, by the Arizona health care cost containment system administrationare appropriated to the administration in fiscal year2024-2025. Before spending these increased monies, theadministration shall notify the joint legislative budget committee and thegovernor's office of strategic planning and budgeting of the amount of moniesthat will be spent under this provision. These payments are included in theexpenditure authority fund source.

Payments to hospitals

The $5,087,100 appropriation fordisproportionate share payments for fiscal year 2024-2025 made pursuant tosection 36-2903.01, subsection O, Arizona Revised Statutes, includes $4,202,300for the Maricopa county health care district and $884,800 for privatequalifying disproportionate share hospitals.

Any monies received fordisproportionate share hospital payments from political subdivisions of thisstate, tribal governments and any university under the jurisdiction of theArizona board of regents, and any federal monies used to match those payments,in fiscal year 2024-2025 by the Arizona health care cost containment systemadministration in excess of $65,330,500 are appropriated to the administrationin fiscal year 2024-2025. Before spending these increasedmonies, the administration shall notify the joint legislative budget committeeand the governor's office of strategic planning and budgeting of the amount ofmonies that will be spent under this provision.

The expenditure authority fund sourceincludes voluntary payments made from political subdivisions for payments tohospitals that operate a graduate medical education program or treat low-incomepatients and for payments to qualifying providers affiliated with teachinghospitals. The political subdivision portions of the fiscal year2024-2025 costs of graduate medical education, disproportionate share payments— voluntary match, traditional medicaid services, proposition 204 services andadult expansion services line items are included in the expenditure authorityfund source.

Any monies for graduate medicaleducation received in fiscal year 2024-2025, including any federal matchingmonies, by the Arizona health care cost containment system administration inexcess of $469,246,600 are appropriated to the administration in fiscal year2024-2025. Before spending these increased monies, the administrationshall notify the joint legislative budget committee and the governor's officeof strategic planning and budgeting of the amount of monies that will be spentunder this provision.

If any graduate medical educationmonies remain after the Arizona health care cost containment systemadministration has funded all eligible graduate medical education programs incounties with a population of less than five hundred thousand persons, theadministration may fund the costs of graduate medical education programs operatedby community health centers and rural health clinics.

Notwithstanding section 36-2903.01,subsection G, paragraph 9, subdivisions (a), (b) and (c), Arizona RevisedStatutes, the amount for graduate medical education includes $5,000,000 fromthe state general fund and $10,678,900 from expenditure authority for thedirect and indirect costs of graduate medical education programs located incounties with a population of less than five hundred thousand persons. Thestate general fund amount may supplement, but not supplant, voluntary paymentsmade from political subdivisions for payments to hospitals that operate agraduate medical education program. The administration shallprioritize distribution to programs at hospitals in counties with a higherpercentage of persons residing in a health professional shortage area asdefined in 42 Code of Federal Regulations part 5.

Notwithstanding section 36-2903.01,subsection G, paragraph 9, subdivisions (a), (b) and (c), Arizona RevisedStatutes, the amount for graduate medical education includes $4,000,000 fromthe state general fund and $8,543,100 from expenditure authority for the directand indirect costs of graduate medical education programs located in countieswith a population of more than five hundred thousand persons. The stategeneral fund amount may supplement, but not supplant, voluntary payments madefrom political subdivisions for payments to hospitals that operate a graduatemedical education program.

Monies appropriated for the graduatemedical education line item in Laws 2023, Chapter 133, section 10 are exemptfrom the provisions of section 35-190, Arizona Revised Statutes, relating tolapsing of appropriations, until June 30, 2025.

Monies appropriated for graduatemedical education in this section are exempt from the provisions of section35-190, Arizona Revised Statutes, relating to lapsing of appropriations, untilJune 30, 2026.

Of the amount appropriated from theexpenditure authority fund source, $3,606,700,000 is for hospital enhancedaccess leading to health improvements initiative payments in fiscal year2024-2025. This amount includes monies from hospital assessments collectedpursuant to section 36-2999.72, Arizona Revised Statutes, and any federalmonies used to match those payments.

Other

On or before July 1, 2025, the Arizonahealth care cost containment system administration shall report to the directorof the joint legislative budget committee the total amount of medicaidreconciliation payments and penalties received on or before that date sinceJuly 1, 2024.

The nonappropriated portion of theprescription drug rebate fund established by section 36-2930, Arizona RevisedStatutes, is included in the federal portion of the expenditure authority fundsource.

Sec.|20. BOARD OFATHLETIC TRAINING

2024-25

FTEpositions 1.5

Lump sumappropriation $ 165,300

Fund sources:

Athletictraining fund $ 165,300

Sec.|21. ATTORNEY GENERAL — DEPARTMENT OF LAW

2024-25

FTE positions 671.7

Operatinglump sum appropriation $64,477,900

Capitalpostconviction prosecution 876,400

Childand family advocacy centers 100,000

Criminaldivision major fraud unit 1,187,300

Internetcrimes against children

enforcement 1,271,500

Governmentaccountability and

speciallitigation 1,287,500

Organizedretail theft

taskforce 1,570,700

Riskmanagement interagency

serviceagreement 10,655,300

Stategrand jury 193,000

SouthernArizona law enforcement 1,656,600

Tobaccoenforcement 875,900

Veterans substance abuse

treatment grants 5,000,000

Victims'rights 4,023,500

Total appropriation — attorneygeneral —

departmentof law $93,175,600

Fund sources:

State general fund $27,664,200

Antitrustenforcement revolving

fund 160,900

Attorney general legal services

cost allocation fund 2,314,900

Collectionenforcement revolving

fund 7,232,100

Consumerprotection–consumer

fraudrevolving fund 14,864,900

Consumerrestitution and remediation

revolvingfund – consumer

remediationsubaccount 5,000,000

Interagencyservice agreements fund 18,078,100

Internetcrimes against children

enforcementfund 900,000

Riskmanagement revolving fund 13,147,700

Victims'rights fund 3,812,800

All monies appropriated to theattorney general legal services line item in the department of child safetybudget do not count toward the attorney general's interagency serviceagreements fund appropriation in fiscal year 2024-2025.

Within ten days after receiving acomplaint alleging a violation of section 15-511, Arizona Revised Statutes, theattorney general shall forward a copy of the complaint to the governor, thepresident of the senate and the speaker of the house of representatives.

The amount appropriated for the childand family advocacy centers line item is allocated to the child and familyadvocacy center fund established by section 41-191.11, Arizona RevisedStatutes.

The $900,000 appropriation from theinternet crimes against children enforcement fund established by section41-199, Arizona Revised Statutes, and the $371,500 appropriation from the stategeneral fund for the internet crimes against children enforcement line item arecontinuing appropriations and are exempt from the provisions of section 35-190,Arizona Revised Statutes, relating to lapsing of appropriations, until June 30,2026.

The amount appropriated for theveterans substance abuse treatment grants line item shall be used for grants toveterans services organizations that treat opioid use disorder in conjunctionwith judicial programs that address substance abuse treatment andrehabilitation for veterans. To be eligible for a grant, a veterans servicesorganization program must follow best practices, be evidence-based, adhere tothe individualized plan ordered by veterans treatment courts for each veteranand incorporate tracking of key metrics.

Before spending any moniesappropriated for the veterans substance abuse treatments grants line item, theattorney general shall submit an expenditure plan to the joint legislativebudget committee for review. The veterans substance abuse treatments grantsline item includes $5,000,000 from opioid claims-related monies deposited inthe consumer remediation subaccount of the consumer restitution and remediationrevolving fund pursuant to section 44-1531.02, subsection C, Arizona RevisedStatutes. This amount shall be used only for approved purposes as defined in acourt order, a settlement agreement or the one Arizona distribution of opioidsettlement funds agreement that is entered into by this state and other partiesto the opioid litigation.

The $1,570,700 appropriation for theorganized retail theft task force line item shall be used for operationalexpenses of the organized retail task force and for hiring one attorney, oneparalegal, two investigators and one support staff person within the office ofthe attorney general and four peace officers who are assigned to the task forceto focus specifically on investigating and prosecuting organized retail crime.

Of the amount appropriated to theattorney general for the opioid abatement line item in fiscal year 2023-2024pursuant to Laws 2023, chapter 133, section 13, $12,000,000 from the consumerremediation subaccount of the consumer restitution and remediation revolvingfund established by section 44-1531.02, Arizona Revised Statutes, isexempt from the provisions of section 35-190, Arizona Revised Statutes,relating to lapsing of appropriations, until June 30, 2025.

Sec. 22. BARBERING ANDCOSMETOLOGY BOARD

2024-25

FTEpositions 29.5

Lump sumappropriation $ 2,686,900

Fund sources:

Barberingand cosmetology fund $ 2,686,900

Sec. 23. BOARD OF BEHAVIORAL HEALTH EXAMINERS

2024-25

FTE positions 27.0

Lump sumappropriation $ 2,740,500

Fundsources:

Boardof behavioral health

||examinersfund $ 2,740,500

Sec. 24. STATE BOARD FORCHARTER SCHOOLS

2024-25

FTEpositions 25.0

Lump sumappropriation $ 2,835,100

Fund sources:

Stategeneral fund $ 2,835,100

Sec. 25. DEPARTMENT OF CHILD SAFETY

2024-25

FTE positions 3,283.1

Operatinglump sum appropriation $147,799,100

Additional operating resources

Attorneygeneral legal services 27,894,900

Caseworkers 131,939,000

Office of child welfare

investigations 11,235,900

Training resources 9,150,000

Out-of-home placements

Congregategroup care 103,682,000

Extendedfoster care 19,887,200

Fosterhome placement 42,547,300

Foster home recruitment,

study and supervision 32,753,600

Kinshipcare 20,584,600

Permanent placements

Adoptionservices 287,221,600

Permanentguardianship subsidy 16,805,600

Support services

DCSchild care subsidy 61,675,400

In-homemitigation 34,488,100

Out-of-homesupport services 122,710,800

Preventiveservices 32,412,700

Comprehensive health plan

Comprehensivehealth plan

services 127,989,800

Comprehensivehealth plan

administration 28,642,700

Comprehensive health plan

premium tax 3,196,600

Total appropriation and expenditure

authority— department of

childsafety $1,262,616,900

Fundsources:

Stategeneral fund $ 458,314,500

Federalchild care and

developmentfund block grant 40,516,000

Federal temporaryassistance

forneedy families block

grant 161,082,200

Childabuse prevention fund 1,459,300

Childrenand family services

trainingprogram fund 208,000

Childsafety expenditure authority 440,186,100

Childwelfare licensing fee fund 1,021,700

Comprehensivehealth plan

expenditureauthority fund —

expenditureauthority 159,829,100

Additional operating resources

The department of child safety shall provide training to anynew child safety FTE positions before assigning any client caseload duties toany of these employees.

Thelegislature intends that the department of child safety use its funding toachieve a one hundred percent investigation rate.

Allexpenditures made by the department of child safety for attorney general legal servicesshall be funded only from the attorney general legal services line item.Monies in department of child safety line items intended for this purpose shallbe transferred to the attorney general legal services line item beforeexpenditure.

Out-of-homeplacements

Thedepartment of child safety may transfer up to ten percent of the total amountof federal temporary assistance for needy families block grant moniesappropriated to the department of economic security and the department of childsafety to the social services block grant. Before transferringfederal temporary assistance for needy families block grant monies to thesocial services block grant, the department of child safety shall report theproposed amount of the transfer to the director of the joint legislative budgetcommittee. This report may be in the form of an expenditure plan that issubmitted at the beginning of the fiscal year and updated, if necessary,throughout the fiscal year.

The amountappropriated for kinship care shall be used for a stipend of $300 per month fora relative caretaker, including a grandparent, any level of great-grandparentor any nongrandparent relative, or a caretaker of fictive kinship, if adependent child is placed in the care of a relative caretaker or caretaker offictive kinship pursuant to department guidelines. The departmentshall provide the stipend on behalf of all children placed with an unlicensedkinship foster care parent. The unlicensed kinship foster careparent is not required to file an application to receive the stipend. Beforechanging the eligibility for the program or the amount of the stipend, thedepartment shall submit a report for review by the joint legislative budgetcommittee detailing the proposed changes.

On orbefore March 31, 2025, the department of child safety shall report to the jointlegislative budget committee the number of children who are part of the kinshipstipend program and reside with a nonrelative caretaker of fictive kinship.

Support services

The preventive services line item appropriation includes$264,400 from the state general fund to draw down $1,322,000 in additionalfederal monies associated with the community based child abuse prevention blockgrant. If grant monies are no longer available, the appropriation isreduced by the amounts of $264,400 from the general fund and $1,322,000 fromchild safety expenditure authority.

Departmentwide

The amount appropriated for any lineitem may not be transferred to another line item or to the operating budget unlessthe transfer is reviewed by the joint legislative budget committee, except thattransfers between any two line items relating to the comprehensive health planare not subject to review.

Child safety expenditure authorityincludes all department funding sources excluding the state general fund, thefederal child care and development fund block grant, the federal temporaryassistance for needy families block grant, the child abuse prevention fund, thechildren and family services training program fund and the comprehensive healthplan expenditure authority fund.

On or before December 1, 2024, thedepartment of child safety shall submit a report to the joint legislativebudget committee on the department's efforts to implement the family firstprevention services act of 2018. The report shall quantify thedepartment's efforts in at least the following areas, including any associatedfiscal impacts:

1. Reducing the number ofchildren placed for more than two weeks in congregate care settings, excludingqualified residential treatment programs, facilities for pregnant and parentingyouth, supervised independent living and specialized programs for victims ofsex trafficking.

2. Assisting congregatecare providers in attaining status as qualified residential treatment programs.

3. Identifying alternativeplacements, including therapeutic foster homes, for children who wouldotherwise be placed in congregate care.

4. Expandingevidence-based, in-home parent skill-based programs and mental health andsubstance abuse prevention and treatment services.

Benchmarks

For the purposes of this section:

1. "Backlogcase":

(a) Means any nonactivecase for which documentation has not been entered in the child welfareautomated system for at least sixty days and for which services have not beenauthorized for at least sixty days and any case that has had an investigation,has been referred to another unit and has had no contact for at least sixtydays.

(b) Includes any case forwhich the investigation has been open without any documentation or contact forat least sixty days, any case involving in-home services for which therehas been no contact or services authorized for at least sixty days and any caseinvolving foster care in which there has been no contact or any documentationentered in the child welfare automated system for at least sixty days.

2. "Long-termcase" means any case in which the child has been in an out-of-homeplacement for at least eighteen months.

3. "Open report"means a report that is under investigation or awaiting closure by a supervisor.

On or before February 28, 2025 andAugust 31, 2025, the department of child safety shall present a report to thejoint legislative budget committee on the progress made during July 2024through December 2024 and January 2025 through June 2025, respectively, inmeeting the caseload standard and reducing the number of backlog and long-termcases. Each report shall include the number of backlog cases, thenumber of open reports, the number of long-term cases and the caseworkerworkload in comparison to the previous six months. Each report shall providethe number of backlog cases by disposition, including the number of backlogcases in the investigation phase, the number of backlog cases associated without-of-home placements and the number of backlog cases associatedwith in-home cases.

To determine the caseworker workload,the department shall report the number of case-carrying caseworkers at eachfield office and the number of investigations, in-home cases and long-termcases assigned to each field office.

For backlog cases, the department'sbenchmark is 1,000 cases.

For open reports, the department'sbenchmark is fewer than 8,000 open reports.

For long-term cases, thedepartment's benchmark is 3,323 cases.

If the department of child safety hasnot submitted a required report within thirty days after the report is due, thedirector of the joint legislative budget committee shall inform the generalaccounting office of the department of administration, which shall withhold twopercent of the department of child safety's operating lump sum semiannualbudget allocation until the department of child safety submits the requiredreport.

Sec. 26. STATE BOARD OFCHIROPRACTIC EXAMINERS

2024-25

FTEpositions 6.0

Lump sumappropriation $ 638,700

Fund sources:

Board ofchiropractic examiners

||fund $ 638,700

Sec. 27. ARIZONA COMMERCE AUTHORITY

2024-25

Operating lump sum appropriation $10,000,000

Arizona competes fund deposit 500,000

Asiatrade offices 750,000

Economicdevelopment marketing

andattraction 500,000

Frankfurt, Germany trade office 500,000

Israel trade office 300,000

Mexico trade offices 500,000

Total appropriation — Arizonacommerce

authority $13,050,000

Fund sources:

Stategeneral fund $13,050,000

Pursuant to section 43-409, ArizonaRevised Statutes, of the amounts listed above, $10,500,000 of the state generalfund withholding tax revenues is allocated in fiscal year 2024-2025 to theArizona commerce authority, of which $10,000,000 is credited to the Arizonacommerce authority fund established by section 41-1506, Arizona RevisedStatutes, and $500,000 is credited to the Arizona competes fund established bysection 41-1545.01, Arizona Revised Statutes.

Sec. 28. ARIZONACOMMUNITY COLLEGES

2024-25

Equalizationaid

Cochise $10,575,800

Graham 21,132,400

Navajo 12,016,200

Yuma/La Paz 896,400

Total — equalization aid $44,620,800

Operatingstate aid

Cochise $ 4,000,800

Coconino 1,392,500

Gila 149,700

Graham 1,758,900

Mohave 961,500

Navajo 1,375,600

Pinal 1,032,900

SantaCruz 54,600

Yavapai 371,300

Yuma/LaPaz 2,262,400

Total —operating state aid $13,360,200

STEM and workforce programs state aid

Cochise $ 833,400

Coconino 300,700

Gila 88,100

Graham 446,300

Maricopa 8,073,700

Mohave 392,600

Navajo 273,600

Pima 1,768,900

Pinal 634,800

SantaCruz 41,800

Yavapai 636,600

Yuma/LaPaz 778,200

Total —STEM and workforce programs

stateaid $14,268,700

Ruralaid

Cochise $ 2,999,100

Coconino 892,800

Gila 258,000

Graham 1,239,300

Mohave 1,149,000

Navajo 815,000

Pinal 1,794,100

SantaCruz 113,800

Yavapai 1,833,600

Yuma/LaPaz 2,905,300

Total —rural aid $14,000,000

Ruralcounty reimbursem*nt subsidy $ 1,082,900

AdditionalGila workforce

developmentaid 200,000

Dinécollege remedial education 1,000,000

Total appropriation — Arizonacommunity

colleges $88,532,600

Fund sources:

Stategeneral fund $88,532,600

Of the $1,082,900 appropriated to therural county reimbursem*nt subsidy line item, Apache county receives $699,300and Greenlee county receives $383,600.

On or before October 15, 2025, theDiné college board of regents shall submit to the governor, the speaker of thehouse of representatives, the president of the senate, the secretary of stateand the joint legislative budget committee a report that details the coursecompletion rate for students who received remedial education during the2024-2025 academic year.

Sec. 29. REGISTRAR OF CONTRACTORS

2024-25

FTE positions 105.6

Operating lump sum appropriation $ 13,050,200

Officeof administrative

||hearingscosts 1,017,600

Total appropriation — registrar of

contractors $ 14,067,800

Fundsources:

Registrarof contractors fund $ 14,067,800

Sec. 30. CORPORATION COMMISSION

2024-25

FTE positions 301.9

Operatinglump sum appropriation $ 35,031,300

Corporationfilings, same-day

service 416,500

Utilitiesaudits, studies,

investigationsand hearings 380,000*

Total appropriation — corporationcommission $ 35,827,800

Fundsources:

Stategeneral fund $ 798,900

Arizona artstrust fund 57,700

Investmentmanagement regulatory

||andenforcement fund 1,305,700

Publicaccess fund 8,020,800

Securitiesregulatory and

enforcementfund 7,272,500

Utilityregulation revolving fund 18,372,200

Sec. 31. STATE DEPARTMENT OF CORRECTIONS

2024-25

FTE positions 9,592.0

Operating lump sum appropriation $ 823,381,600

Overtimeand compensatory time 15,540,500

Privateprison per diem 275,716,800

Communitycorrections 27,452,300

Inmatehealth care contracted

services 367,557,100

Substance abuse treatment 3,945,400

Noncontract medication 55,000,000

Injunction-related IT upgrades 16,000,000

Total appropriation — state department

of corrections $1,584,593,700

Fund sources:

State general fund $1,515,971,300

State education fund for

correctional education 723,200

Alcoholabuse treatment fund 555,800

Penitentiaryland fund 3,460,300

Statecharitable, penal and

reformatoryinstitutions

landfund 3,734,100

Correctionsfund 31,312,500

Transitionprogram fund 15,048,600

Prisonconstruction and

operationsfund 12,500,100

Inmatestore proceeds fund 1,287,800

Of the amount appropriated in theoperating lump sum, $487,093,200 is designated for personal services and$222,017,000 is designated for employee-related expenditures. The departmentshall submit an expenditure plan for review by the joint legislative budgetcommittee before spending these monies other than for personal services oremployee-related expenditures.

After the department submits anexpenditure plan to the joint legislative budget committee, the department maytransfer personal services and employee-related expenditures savings from theoperating budget to the private prison per diem line item for private prisonstaff stipends. The amount of any private prison staff stipend may not exceedthe amount given to department staff. The expenditure plan is not subject toreview by the joint legislative budget committee.

The department shall submit anexpenditure plan for review by the joint legislative budget committee beforespending monies appropriated for the overtime and compensatory time line itemother than for personal services or employee-related expenditures.

Private prison vendors that contractwith this state may use staff vacancy savings to pay for overtime costs withoutincurring a penalty or staffing offset.

Before placing any inmates inout-of-state provisional beds, the department shall place inmates in allavailable prison beds in facilities that are located in this state and thathouse Arizona inmates, unless the out-of-state provisional beds are of acomparable security level and price.

The state department of correctionsshall forward to the president of the senate, the speaker of the house of representatives,the chairpersons of the senate and house of representatives appropriationscommittees and the director of the joint legislative budget committee a monthlyreport comparing department expenditures for the month and year-to-dateas compared to prior-year expenditures on or before the thirtieth of thefollowing month. The report shall be in the same format as the priorfiscal year and include an estimate of potential shortfalls, potentialsurpluses that may be available to offset these shortfalls and a plan, ifnecessary, for eliminating any shortfall without a supplemental appropriation.The report shall include the number of filled and vacant correctional officerand medical staff positions departmentwide and by prison complex.

On or beforeNovember 1, 2024, the state department of corrections shall provide a report onbed capacity to the joint legislative budget committee. The report shallreflect the bed capacity for each security classification by gender at eachstate-run and private institution, divided by rated and total beds. The reportshall include bed capacity data for June 30, 2023 and June 30, 2024 and theprojected capacity for June 30, 2025, as well as the reasons for any changewithin that time period. Within the total bed count, the departmentshall provide the number of temporary and special use beds. Thereport shall also address the department's rationale for eliminating anypermanent beds rather than reducing the level of temporary beds. Thereport shall also include any plans to vacate beds but not permanently removethe beds from the bed count.

If the department develops a planafter the department's November 1, 2024 report to open or close one hundred ormore state-operated or private prison rated beds, the department shall submit aplan detailing the proposed bed changes for review by the joint legislativebudget committee before implementing these changes.

One hundred percent of land earningsand interest from the penitentiary land fund shall be distributed to the statedepartment of corrections in compliance with the enabling act and theConstitution of Arizona to be used to support state penal institutions.

On or before December 15, 2024 andJuly 15, 2025, the state department of corrections shall submit a report to thejoint legislative budget committee on the progress made in meeting the staffingneeds for correctional officers. Each report shall include thenumber of filled correctional officer positions, the number of vacantcorrectional officer positions, the number of people in training, the number ofseparations and the number of hours of overtime workedyear-to-date. The report shall detail these amounts bothdepartmentwide and by prison complex.

Twenty-fivepercent of land earnings and interest from the state charitable, penal andreformatory institutions land fund shall be distributed to the state departmentof corrections in compliance with the enabling act and the Constitution ofArizona to be used to support state penal institutions.

Before spendingany state education fund for correctional education monies in excess of$723,200, the state department of corrections shall report the intended use ofthe monies to the director of the joint legislative budget committee.

Before implementing any changes in contractedrates for inmate health care contracted services, the state department ofcorrections shall submit its expenditure plan for review by the jointlegislative budget committee.

On or before August 1, 2024 andFebruary 1, 2025, the state department of corrections shall submit a report tothe joint legislative budget committee on the status of all inmate health careperformance measures that are tracked by the department for contract monitoringpurposes. Each report must include:

1. The total number ofperformance measures, by facility, for which the department is not insubstantial compliance.

2. An explanation for eachinstance of noncompliance.

3. The department's plan tocomply with the performance measures.

On or beforeAugust 1, 2024, the state department of corrections shall transfer to thepublic safety personnel retirement system via the department of administrationits estimated required annual contribution to the corrections officerretirement plan for fiscal year 2024-2025.

The department shall report actualfiscal year 2023-2024, estimated fiscal year 2024-2025 and requested fiscalyear 2025-2026 expenditures as delineated in the prior year when the departmentsubmits its fiscal year 2025-2026 budget request pursuant to section 35-113, ArizonaRevised Statutes.

The department shall use the amountappropriated in the private prison per diem line item to pay private prisoncontractors for housing and providing medical care to Arizona inmates. Beforespending these monies for any other purpose, the department shall submit anexpenditure plan for review by the joint legislative budget committee.

The amount appropriated in theinjunction-related IT upgrades line item shall be used to address informationtechnology improvements as required by the court in the Jensen v. Thornellinmate health care litigation.

The department shall use the amountappropriated in the noncontract medication line item to purchase medications totreat hepatitis C and for medication-assisted treatment for substance usedisorder. Before spending these monies for any other purpose, the departmentshall submit an expenditure plan for review by the joint legislative budgetcommittee.

Sec. 32. ARIZONACRIMINAL JUSTICE COMMISSION

2024-25

FTEpositions 11.0

Operatinglump sum appropriation $ 1,406,900

Majorincident regional law

enforcementtask force 600,000

Stateaid to county attorneys 973,700

Stateaid to indigent defense 700,000

Stateaid for juvenile dependency

proceedingsfund deposit 2,000,000

Victimcompensation and assistance 6,223,200

Total appropriation — Arizona criminal

justicecommission $11,903,800

Fund sources:

Stategeneral fund $ 4,600,000

Criminaljustice enhancement fund 733,700

Resourcecenter fund 647,100

Stateaid to county attorneys fund 973,700

State aid to indigent defense fund 700,000

Victim compensation and assistance

||fund 4,249,300

All victim compensation and assistancefund monies received by the Arizona criminal justice commission in excess of$4,249,300 in fiscal year 2024-2025 are appropriated to the crime victimsprogram. Before spending any victim compensation and assistance fundmonies in excess of $4,249,300 in fiscal year 2024-2025, the Arizona criminaljustice commission shall report the intended use of the monies to the jointlegislative budget committee.

All monies received by the Arizonacriminal justice commission in excess of $973,700 in fiscal year 2024-2025 fromthe state aid to county attorneys fund established by section 11-539, ArizonaRevised Statutes, are appropriated to the state aid to county attorneysprogram. Before spending any state aid to county attorneys fund monies inexcess of $973,700 in fiscal year 2024-2025, the Arizona criminal justicecommission shall report the intended use of the monies to the joint legislativebudget committee.

Sec. 33. ARIZONA STATESCHOOLS FOR THE DEAF AND THE BLIND

2024-25

FTEpositions 562.2

Administration/statewide $ 8,404,300

Phoenixday school for the deaf 10,811,200

Tucsoncampus 13,330,400

Preschool/outreach programs 7,824,200

School bus/agency vehicle

replacement 369,000

Cooperative services 19,621,400

Total appropriation — Arizona state schools

for thedeaf and the blind $60,360,500

Fund sources:

State general fund $25,991,300

Schools for the deaf and

the blind fund 14,579,800

Cooperative services fund 19,621,400

Telecommunication fund

for the deaf 168,000

Before spending any schools for thedeaf and the blind fund monies in excess of $14,579,800 in fiscal year2024-2025, the Arizona state schools for the deaf and the blind shall report tothe joint legislative budget committee the intended use of the monies.

Before spending any cooperativeservices fund monies in excess of $19,621,400 in fiscal year 2024-2025, theArizona state schools for the deaf and the blind shall report to the jointlegislative budget committee the intended use of the monies.

Sec. 34. COMMISSION FOR THE DEAF AND THE HARD OF HEARING

2024-25

FTE positions 21.0

Operatinglump sum appropriation $ 4,634,600

Supportservices for the

deaf-blind 192,000

Websitesecurity upgrades 200,000

Total appropriation — commission for the

deaf andthe hard of hearing $ 5,026,600

Fundsources:

Telecommunicationfund for

||thedeaf $ 5,026,600

Sec. 35. STATE BOARD OF DENTAL EXAMINERS

2024-25

FTE positions 13.0

Operating lump sum appropriation $ 2,103,600

Annual leave payout $ 9,300*

Total appropriation — state board of

dentalexaminers $ 2,112,900

Fund sources:

Dentalboard fund $ 2,112,900

Sec. 36. OFFICE OF ECONOMIC OPPORTUNITY

2024-25

FTE positions 5.0

Lump sum appropriation $ 523,300

Fund sources:

State general fund $ 523,300

Sec. 37. DEPARTMENT OFECONOMIC SECURITY

2024-25

FTEpositions 4,611.8

Operatinglump sum appropriation $333,957,100

Administration

Attorneygeneral legal services 12,755,600

Aging and adult services

Adult services 10,731,900

Communityand emergency services 3,724,000

Coordinatedhomeless services 2,522,600

Coordinatedhunger services 2,254,600

Domesticviolence prevention 14,004,000

Long-termcare ombudsman 1,000,000

Benefitsand medical eligibility

Temporaryassistance for needy

families— cash benefits 22,736,400

Tribalpass-through funding 4,680,300

Child support enforcement

County participation 8,539,700

Developmentaldisabilities

DDDpremium tax payment 64,871,600

Casemanagement — medicaid 140,855,600

Homeand community based

services— medicaid 2,292,850,800

Institutionalservices —

medicaid 51,334,400

Physicaland behavioral

healthservices — medicaid 655,369,900

Medicareclawback payments 7,132,700

Targetedcase management — medicaid 19,324,900

Statematch transfer from AHCCCS 1,122,988,600

Casemanagement — state-only 6,335,600

Homeand community based

services— state-only 14,089,000

Costeffectiveness study — client

services 8,420,000

Arizona early intervention program 16,119,000

State-funded long-term care

services 44,389,800

Group home monitoring program 1,200,000

Employmentand rehabilitation services

JOBS 11,005,600

Childcare subsidy 320,580,200

Independentliving rehabilitation

services 1,289,400

Rehabilitationservices 7,249,100

Workforce innovation

and opportunity act

services 85,824,200

Total appropriation and expenditure

authority — department of

economic security $5,288,136,600

Fundsources:

Stategeneral fund $1,339,544,800

Federalchild care and

developmentfund block grant 331,029,300

Federaltemporary assistance for

needyfamilies block grant 66,591,200

Long-termcare system fund 34,429,200

Publicassistance collections

fund 441,800

Specialadministration fund 4,637,900

Spinaland head injuries trust

fund 2,385,500

Statewidecost allocation plan

fund 1,000,000

Childsupport enforcement

administrationfund 17,683,300

Domesticviolence services fund 4,000,300

Workforceinvestment act grant 87,116,600

Childsupport enforcement

administrationfund

expenditureauthority 44,195,500

Developmental disabilities

medicaid expenditure

authority 3,311,833,900

Healthcare investment fund

expenditureauthority 43,247,300

Aging and adult services

All domestic violence services fund monies in excess of$4,000,300 received by the department of economic security are appropriated forthe domestic violence prevention line item. Before spending theseincreased monies, the department shall report the intended use of monies inexcess of $4,000,300 to the joint legislative budget committee.

On orbefore December 15, 2024, the department of economic security shall report tothe joint legislative budget committee the amount of state and federal moniesavailable statewide for domestic violence prevention funding. Thereport shall include, at a minimum, the amount of monies available and thestate fiscal agent receiving those monies.

Benefitsand medical eligibility

Theoperating lump sum appropriation may be spent on Arizona health care costcontainment system eligibility determinations based on the results of theArizona random moment sampling survey.

Childsupport enforcement

All stateshares of retained earnings, fees and federal incentives in excess of$17,683,300 received by the division of child support enforcement areappropriated for operating expenditures. New FTE positions areauthorized with the increased funding. Before spending theseincreased monies, the department of economic security shall report the intendeduse of the monies to the joint legislative budget committee.

Developmentaldisabilities

On orbefore September 1, 2025, the department of economic security shall report tothe president of the senate, the speaker of the house of representatives, thechairpersons of the senate and house of representatives appropriationscommittees and the director of the joint legislative budget committee any newplacement into a state-owned ICF-IID or the Arizona training program atthe Coolidge campus in fiscal year 2024-2025 and the reason for this placement,rather than a placement into a privately run facility for persons withdevelopmental disabilities, was deemed as the most appropriate placement. Thedepartment shall also report if no new placements were made. On or beforeSeptember 1, 2025, the department shall also report to the director of thejoint legislative budget committee the total costs associated with the Arizonatraining program at Coolidge in fiscal year 2024-2025.

Thedepartment shall report to the joint legislative budget committee on or beforeMarch 1 of each year on preliminary actuarial estimates of the capitation ratechanges for the following fiscal year along with the reasons for the estimatedchanges. For any actuarial estimates that include a range, the totalrange from minimum to maximum may not be more than twopercent. Before implementing any changes in capitation rates for thelong-term care system, the department shall submit a report for review by thejoint legislative budget committee. Before the department implements any changein policy affecting the amount, sufficiency, duration and scope of health careservices and who may provide services, the department shall prepare a fiscalimpact analysis on the potential effects of this change on the following year'scapitation rates. If the fiscal impact analysis demonstrates thatthis change will result in additional state costs of $500,000 or more for anyfiscal year, the department shall submit the policy change for review by thejoint legislative budget committee.

Beforeimplementing developmental disabilities or long-term care statewideprovider rate adjustments that are not already specifically authorized by thelegislature, court mandates or changes to federal law, the department shallsubmit a report for review by the joint legislative budget committee thatincludes, at a minimum, the estimated cost of the provider rate adjustment andthe ongoing source of funding for the adjustment, if applicable.

Beforetransferring any monies in or out of the case management —medicaid and casemanagement — state-only and developmental disabilities administration lineitems and before transferring any monies in or out of the operating lump sumitem related to the developmental disabilities program and its administration,the department shall submit a report for review by the joint legislative budgetcommittee, except that transfers from the state match transfer from AHCCCS lineitem into those line items do not require a report for review.

On or before November 30, 2024, thedepartment of economic security shall submit a report to the joint legislativebudget committee regarding expenditures from the cost effectiveness study –client services line item in the previous fiscal year. The report shallinclude the number of clients and total amounts spent from the line item ineach setting type along with expenditures for those clients in other lineitems. The report shall also include cost effectiveness spending in other lineitems.

The amounts appropriated for the grouphome monitoring program in fiscal year 2023-2024 pursuant to Laws 2023, chapter133, section 29 and in fiscal year 2024-2025 are exempt from the provisions of section35-190, Arizona Revised Statutes, relating to lapsing of appropriations, untilJune 30, 2026.

The amount appropriated for the Grahamcounty rehabilitation center in fiscal year 2023-2024 pursuant to Laws 2023,chapter 133, section 29 is exempt from the provisions of section 35-190,Arizona Revised Statutes, relating to lapsing of appropriations, until June 30,2025. Of the amount appropriated, $800,000 shall be used to remodel the Grahamcounty rehabilitation facilities in Safford and Willcox.

Employmentand rehabilitation services

On orbefore September 15, 2024 and March 15, 2025, the department of economicsecurity shall submit a report to the president of the senate, the speaker ofthe house of representatives, the chairpersons of the senate and house ofrepresentatives appropriations committees and the joint legislative budgetcommittee on child care development block grant monies provided from thecoronavirus aid, relief, and economic security act, the consolidatedappropriations act, 2021 and the American rescue plan act of 2021 (P.L.117-2). The report must include, at a minimum, the actualexpenditures made to date by purpose and, separately, by federal legislation,the expenditure plan for all remaining monies by purpose and, separately, byfederal legislation, the number of children served with the monies on averageeach month, the average child care reimbursem*nt rates for the entire program,including these monies, and the number of child care settings with a qualityrating.

Thedepartment of economic security shall forward to the joint legislative budgetcommittee a monthly report listing data on the child care populationserved. The report must include, at a minimum, in each program thenumber of unduplicated children enrolled in child care within the department ofeconomic security and the department of child safety by program and the averageamount paid per child plus quality-related spending.

Allworkforce investment act grant monies that are received by this state in excessof $87,116,600 are appropriated to the workforce innovation and opportunity actservices line item. Before spending these increased monies, thedepartment shall report the intended use of monies in excess of $87,116,600 tothe joint legislative budget committee.

Of thestate general fund share of the amount appropriated in the child care subsidyline item, at least ten percent shall be distributed in counties other thanMaricopa, Pima and Pinal counties.

Departmentwide

The above appropriations are in addition to monies grantedto this state by the federal government for the same purposes but are deemed toinclude the sums deposited in the state treasury to the credit of thedepartment of economic security pursuant to section 42-5029, ArizonaRevised Statutes.

The departmentof economic security shall forward to the president of the senate, the speakerof the house of representatives, the chairpersons of the senate and house ofrepresentatives appropriations committees and the director of the jointlegislative budget committee a monthly report comparing total expenditures forthe month and year-to-date as compared to prior-year totals on orbefore the thirtieth of the following month. The report shallinclude an estimate of potential shortfalls in entitlement programs andpotential federal and other monies, such as the statewide assessment forindirect costs, and any projected surplus in state-supported programs that maybe available to offset these shortfalls and a plan, if necessary, foreliminating any shortfall without a supplemental appropriation.

Sec. 38. STATE BOARD OF EDUCATION

2024-25

FTE positions 23.0

Operatinglump sum appropriation $ 3,222,100

Arizonaempowerment scholarship

accountappeals 227,900

Totalappropriation —

stateboard of education $ 3,450,000

Fund sources:

Stategeneral fund $ 3,450,000

Sec. 39. SUPERINTENDENTOF PUBLIC INSTRUCTION

2024-25

FTEpositions 232.9

Operatinglump sum appropriation $ 15,626,800

Formula programs

Basicstate aid 6,335,820,300

Specialeducation fund 36,029,200

Classroomsite fund 1,053,335,300

Instructionalimprovement fund 80,425,700

Property tax relief

Additionalstate aid 526,653,100

Non-formula programs

Accountabilityand achievement

testing 16,442,200

Adulteducation 16,898,900

Alternativeteacher development

program 1,000,000

ArizonaEnglish language

learnerfund 4,960,400

Arizonaholocaust education center 7,000,000

CTEDcertification exam fee

reimbursem*nt 1,000,000

CTEDcompletion grants 1,000,000

CTEDsoft capital and equipment 1,000,000

Collegecredit by examination

incentiveprogram 3,772,100

Collegeplacement exam fee waiver 1,265,800

Computerscience professional

developmentprogram 1,000,000

Earlyliteracy 17,380,000

Educationlearning and

accountabilitysystem 5,446,700

Englishlearner administration 11,597,000

Flagstaffrobotics program 10,000

Geographicl*teracy 100,000

Giftedassessments 850,000

Jobsfor Arizona graduates 500,000

Live,remote instructional courses 100,000

Onetimeschool meal grants 3,800,000

Schoolsafety program 81,992,400

ShowLow robotics program 10,000

Stateblock grant for vocational

education 11,774,300

Studentlevel data access 359,000

Teachercertification 2,544,600

Tribalcollege dual enrollment

program 325,000

Total appropriation and expenditure

authority — superintendent

ofpublic instruction $8,240,018,800

Fund sources:

Stategeneral fund $6,578,286,600

Educationsales tax fund 7,000,000

Permanentstate school fund 357,889,000

Teachercertification fund 2,517,700

Tribalcollege dual enrollment

programfund 325,000

Departmentof education empowerment

scholarshipaccount fund 359,000

Expenditureauthority 1,293,641,500

Operatinglump sum

Anymonies available to the department of education pursuant to section 42-5029.02,subsection A, paragraph 8, Arizona Revised Statutes, for the failing schoolstutoring fund established by section 15-241, Arizona Revised Statutes, inexcess of the expenditure authority amounts areallocated for the purposes of section 42-5029.02, subsection A, paragraph 8,Arizona Revised Statutes.

Any monies available to the departmentof education pursuant to section 42-5029.02, subsection A, paragraph 6, ArizonaRevised Statutes, for character education matching grants pursuant to section15-154.01, Arizona Revised Statutes, in excess of the expenditure authorityamounts are allocated for the purposes of section 42-5029.02, subsection A, paragraph6, Arizona Revised Statutes.

Basic state aid

The appropriation for basic state aidprovides basic state support to school districts for maintenance and operationsfunding as provided by section 15-973, Arizona Revised Statutes, andincludes an estimated $357,889,000 in expendable income derived from thepermanent state school fund and from state trust lands pursuant to section37-521, subsection B, Arizona Revised Statutes, for fiscal year 2024-2025.

Monies derived from the permanentstate school fund and any other non-state general fund revenue source that isdedicated to fund basic state aid shall be spent, whenever possible, beforespending state general fund monies.

Except as required by section 37-521,Arizona Revised Statutes, all monies received during the fiscal year fromnational forests, interest collected on deferred payments on the purchase ofstate lands, income from investing permanent state school funds as prescribedby the enabling act and the Constitution of Arizona and all monies received bythe superintendent of public instruction from whatever source, except moniesreceived pursuant to sections 15-237 and 15-531, Arizona RevisedStatutes, when paid into the state treasury are appropriated for apportionmentto the various counties in accordance with law. An expenditure maynot be made except as specifically authorized above.

Any monies available to the departmentof education pursuant to section 42-5029.02, subsection A, paragraph 5, ArizonaRevised Statutes, for the increased cost of basic state aid under section15-971, Arizona Revised Statutes, due to added school days in excess of theexpenditure authority amounts are allocated for the purposes of section42-5029.02, subsection A, paragraph 5, Arizona Revised Statutes.

Other programs

Any monies available to the departmentof education for the classroom site fund pursuant to section 37-521, subsectionB, paragraph 4, Arizona Revised Statutes, and section 42-5029.02, subsection A,paragraph 10, Arizona Revised Statutes, in excess of expenditure authorityamounts are allocated for the purposes of section 37-521, subsection B,paragraph 4, Arizona Revised Statutes, and section 42-5029.02, subsectionA, paragraph 10, Arizona Revised Statutes.

Any moniesavailable to the department of education from the instructional improvementfund established by section 15-979, Arizona Revised Statutes, in excess of theexpenditure authority amounts are allocated for the purposes of section 15-979,Arizona Revised Statutes.

Before making any changes to theachievement testing program that will increase program costs, the department ofeducation and the state board of education shall submit the estimated fiscalimpact of those changes to the joint legislative budget committee for review.

Any monies available to the departmentof education for accountability purposes pursuant to section 42-5029.02,subsection A, paragraph 7, Arizona Revised Statutes, in excess of theexpenditure authority amounts are allocated for the purposes of section 42-5029.02,subsection A, paragraph 7, Arizona Revised Statutes.

The department of education may usethe appropriated amount for accountability and achievement testing in fiscalyear 2024-2025 for costs of the English language proficiency assessmentsrequired by section 15-756.05, Arizona Revised Statutes.

The appropriated amount for adulteducation includes $4,000,000 for a onetime allocation to the continuing highschool and workforce training program established by section 15-217.01, ArizonaRevised Statutes, $4,000,000 for a onetime deposit in the adult workforcediploma program fund established by section 15-217.02, Arizona RevisedStatutes, and $4,000,000 for a onetime deposit in the community college adulteducation workforce development program fund established by section 15-217.03,Arizona Revised Statutes.

The department of education shalldistribute the appropriated amount for the Arizona holocaust education centerline item to the Arizona holocaust education center for a onetime distributionfor the creation and operation of the center as a resource for fulfilling therequirements of section 15-701.02, Arizona Revised Statutes. Thedepartment of administration shall allot the full amount of the line item on orbefore August 15, 2024. The department of education shall make thedistribution on or before August 15, 2024. This appropriation is exempt fromthe provisions of section 35-190, Arizona Revised Statutes, relating tolapsing of appropriations.

Monies appropriated for CTEDcompletion grants are intended to help fund program completion for students whocomplete at least fifty percent of a career technical education program beforegraduating from high school and who successfully complete the career technicaleducation district program after graduating from high school. Theapplication procedures shall award grant funding only after an eligible studenthas successfully completed a career technical education district program.

If the appropriated amount for CTEDcompletion grants is insufficient to fund all grant requests from careertechnical education districts, the department of education shall reduce grantamounts on a proportional basis in order to cap total statewide allocations at$1,000,000.

The appropriated amount for CTEDcompletion grants is exempt from the provisions of section 35-190,Arizona Revised Statutes, relating to lapsing of appropriations, until June 30,2026.

The department of education shalldistribute the appropriated amount for CTED soft capital and equipment tocareer technical education districts with fewer than two thousand average dailymembership pupils for soft capital and equipment expenses. Theappropriated amount shall be allocated on a pro rata basis based on the averagedaily membership of eligible career technical education districts.

The department of education shall usethe appropriated amount for English learner administration to provide Englishlanguage acquisition services for the purposes of section 15-756.07,Arizona Revised Statutes, and for the costs of providing English languageproficiency assessments, scoring and ancillary materials as prescribed by thedepartment of education to school districts and charter schools for thepurposes of title 15, chapter 7, article 3.1, Arizona RevisedStatutes. The department may use a portion of the appropriatedamount to hire staff or contract with a third party to carry out the purposesof section 15-756.07, Arizona RevisedStatutes. Notwithstanding section 41-192, Arizona RevisedStatutes, the superintendent of public instruction also may use a portion ofthe appropriated amount to contract with one or more private attorneys toprovide legal services in connection with the case of Flores v. State ofArizona, No. CIV 92-596-TUC-RCC.

The department of education shall usethe appropriated amount for geographic literacy to issue a grant to a statewidegeographic alliance for strengthening geographic literacy in this state.

The department of education shall usethe appropriated amount for jobs for Arizona graduates to issue a grant to anonprofit organization for a JOBS for Arizona graduates program.

The department of education shallallocate the appropriated amount for onetime school meal grants to schooldistricts and charter schools that participate in the national school lunch programor school breakfast program established under the national school lunch andchild nutrition acts (42 United States Code sections 1751 through 1793) forgrants to reduce or eliminate copayments that would otherwise be charged tochildren eligible for reduced-price meals. If the appropriatedamount is insufficient to cover the grant awards for all eligible grantees, thedepartment shall reduce each grant proportionately to cover all eligiblegrantees.

The amount appropriated for the schoolsafety program in fiscal year 2022-2023 pursuant to laws 2022, chapter 313,section 31 included an increase of $50,000,000 for additional school safetygrants. In allocating the $50,000,000 increase, the department ofeducation shall first distribute monies to schools on the school safety programwaiting list to receive grants for the costs of placing school resourceofficers on school campuses. The awarded grants may not supplant fundingprovided by local governments for school resource officers. If the total costof funding grants for school resource officers is less than $50,000,000, thedepartment may allocate the remaining monies to grants to schools for the costsof placing school counselors and social workers on school campuses pursuant tosection 15-154, Arizona Revised Statutes.

Any monies available to the departmentof education for school safety pursuant to section 42-5029.02, subsection A,paragraph 6, Arizona Revised Statutes, in excess of the expenditure authorityamounts are allocated for the purposes of section 42-5029.02, subsection A,paragraph 6, Arizona Revised Statutes.

After review by the joint legislativebudget committee, in fiscal year 2024-2025, the department of education may usea portion of its fiscal year 2024-2025 state general fund appropriations forbasic state aid, additional state aid or the special education fund to fund ashortfall in funding for basic state aid, additional state aid or the specialeducation fund, if any, that occurred in fiscal year 2023-2024.

The department shall provide anupdated report on its budget status every three months for the first half ofeach fiscal year and every month thereafter to the president of the senate, thespeaker of the house of representatives, the chairpersons of the senate andhouse of representatives appropriations committees, the director of the jointlegislative budget committee and the director of the governor's office ofstrategic planning and budgeting. Each report shall include, at aminimum, the department's current funding surplus or shortfall projections forbasic state aid and other major formula-based programs and is due thirty daysafter the end of the applicable reporting period.

Within fifteen days after eachapportionment of state aid that occurs pursuant to section 15-973, subsectionB, Arizona Revised Statutes, the department shall post on its website theamount of state aid apportioned to each recipient and the underlying data.

Sec. 40. DEPARTMENT OFEMERGENCY AND MILITARY AFFAIRS

2024-25

FTE positions 61.5

Administration $ 4,544,300

Emergency management 874,600

Emergency management matching funds 1,544,900

Hazard mitigation assistance 462,900

Military affairs 2,105,000

National guard matching funds 3,529,200

National guard tuition

reimbursem*nt 1,000,000

Hazard mitigation revolving

fund deposit 200,000

Total appropriation — department of

emergencyand military affairs $14,260,900

Fund sources:

State general fund $14,260,900

The $3,529,200 national guard matchingfunds appropriation is exempt from the provisions of section 35-190, ArizonaRevised Statutes, relating to lapsing of appropriations, except that all fiscalyear 2024-2025 monies remaining unexpended and unencumbered on December 31,2025 revert to the state general fund.

The appropriated amount for thenational guard tuition reimbursem*nt line item is exempt from the provisions ofsection 35-190, Arizona Revised Statutes, relating to lapsing ofappropriations, until September 30, 2025.

Sec. 41. DEPARTMENT OF ENVIRONMENTAL QUALITY

2024-25

FTEpositions 358.7

Operatinglump sum appropriation $67,698,600

Safedrinking water program 1,991,800

Emissionscontrol contractor

payment 28,894,500

Totalappropriation — department of

environmental quality $98,584,900

Fund sources:

Air quality fund $ 9,207,700

Emergency response fund 132,800

Emissions inspection fund 33,153,800

Hazardous waste management fund 1,939,400

Indirect cost fund 18,979,600

Permit administration fund 7,256,800

Recycling fund 2,465,900

Safe drinking water program

fund 1,991,800

Solid waste fee fund 2,584,900

Water quality fee fund 20,872,200

The department of environmentalquality shall report annually on the progress of WQARF activities, includingemergency response, priority site remediation, cost recovery activity, revenueand expenditure activity and other WQARF-funded programactivity. The department shall submit the fiscal year 2024-2025report to the joint legislative budget committee on or before September 1,2024. This report shall also include a budget for the WQARF program that isdeveloped in consultation with the WQARF advisory board. This budget shallspecify the monies budgeted for each listed site during fiscal year 2024-2025.In addition, the department and the WQARF advisory board shall prepare andsubmit to the joint legislative budget committee, on or before October 1, 2024,a report in a table format summarizing the current progress on remediation ofeach listed site on the WQARF registry. The table shall include the stage ofremediation for each site at the end of fiscal year 2023-2024, indicate whetherthe current stage of remediation is anticipated to be completed in fiscal year2024-2025 and indicate the anticipated stage of remediation at eachlisted site at the end of fiscal year 2024-2025, assuming fiscal year 2024-2025funding levels. The department and the WQARF advisory board mayinclude other relevant information about the listed sites in the table.

All permit administration fund moniesreceived by the department of environmental quality in excess of $7,256,800 infiscal year 2024-2025 are appropriated to the department. Beforespending permit administration fund monies in excess of $7,256,800 in fiscalyear 2024-2025, the department shall report the intended use of the monies tothe joint legislative budget committee.

All monies in the department ofenvironmental quality indirect cost fund, including the beginning balance, thatare in excess of $18,979,600 in fiscal year 2024-2025 are appropriated to thedepartment. Before spending indirect cost fund monies in excess of$18,979,600 in fiscal year 2024-2025, the department shall report the intendeduse of the monies to the joint legislative budget committee.

Notwithstanding section 49-544,Arizona Revised Statutes, the department may use up to $400,000 from the fundbalance in the emissions inspection fund established by section 49-544,Arizona Revised Statutes, in fiscal year 2024-2025 for agency operating costs.Before expending any emissions inspection fund monies on operating costs in excess of the amount appropriated,the department shall report the intended use of the monies to the jointlegislative budget committee.

Sec. 42. GOVERNOR'SOFFICE OF EQUAL OPPORTUNITY

2024-25

FTEpositions 5.0

Lump sumappropriation $ 310,500

Fund sources:

Personneldivision fund $ 310,500

Sec. 43. STATE BOARD OFEQUALIZATION

2024-25

FTE positions 7.0

Lump sumappropriation $ 751,100

Fund sources:

Stategeneral fund $ 751,100

Sec. 44. BOARD OFEXECUTIVE CLEMENCY

2024-25

FTEpositions 14.5

Lump sumappropriation $ 1,370,300

Fund sources:

Stategeneral fund $ 1,370,300

On or before November 1, 2024, theboard of executive clemency shall report to the directors of the jointlegislative budget committee and the governor's office of strategic planningand budgeting the total number and types of cases the board reviewed in fiscalyear 2023-2024.

Sec. 45. ARIZONAEXPOSITION AND STATE FAIR BOARD

2024-25

FTEpositions 184.0

Lump sumappropriation $25,047,500

Fundsources:

Arizonaexposition and state

fairfund $25,047,500

Of the monies appropriated in theArizona exposition and state fair board lump sum appropriation, $3,771,400shall be spent for enhanced state fair operations. Pursuant to section 41-1252,Arizona Revised Statutes, before spending monies appropriated in the lump sumappropriation on capital projects, the board shall submit a report for reviewby the joint committee on capital review on the scope, purpose and estimatedcost of the capital improvements.

Sec. 46. ARIZONADEPARTMENT OF FORESTRY AND FIRE MANAGEMENT

2024-25

FTEpositions 235.5

Operatinglump sum appropriation $ 7,203,900

Environmentalcounty grants 250,000

Inmatefirefighting crews 867,700

Postreleasefirefighting crews 1,278,900

Firesuppression 5,200,000

State fire marshal 1,792,000

State fire school 289,000

Hazardousvegetation removal 3,039,300

USforest service land thinning 1,657,700

Wildfiremitigation 27,026,700

Total appropriation — Arizonadepartment

of forestry and fire management $48,605,200

Fundsources:

Stategeneral fund $48,605,200

The appropriation for the hazardousvegetation removal line item is exempt from the provisions of section 35-190,Arizona Revised Statutes, relating to lapsing of appropriations, until June 30,2026.

The appropriation for the wildfiremitigation line item is exempt from the provisions of section 35-190, ArizonaRevised Statutes, relating to lapsing of appropriations, until June 30, 2027.

Sec. 47. ARIZONA GAME ANDFISH DEPARTMENT

2024-25

FTEpositions 273.5

Operatinglump sum appropriation $38,914,700

Pittman-Robertson/Dingell-Johnson

act 3,058,000

Total appropriation — Arizona game andfish

department $41,972,700

Fundsources:

Capitalimprovement fund $1,001,200

Gameand fish fund 35,547,800

Wildlifeendowment fund 16,200

Watercraftlicensing fund 5,017,800

Game,nongame, fish and

endangeredspecies fund 389,700

Sec. 48. DEPARTMENT OFGAMING

2024-25

FTEpositions 155.8

Operatinglump sum appropriation $ 13,740,100

Arizonabreeders' award 250,000

Casinooperations certification 2,299,400

Countyfairs livestock and

agriculturepromotion 6,029,500

Divisionof racing 2,435,900

Contractveterinarian 175,000

Horseracingintegrity and safety

actassessment 1,355,100

Racetrack capital projects and

maintenance and operation funding 1,500,000

Racing purse enhancement 4,000,000

Problem gambling 3,320,000

Total appropriation — department of gaming $ 35,105,000

Fund sources:

State general fund $ 11,704,500

Fantasy sports contest fund 150,100

Tribal-statecompact fund 2,299,400

Arizonabenefits fund 16,610,000

Statelottery fund 300,000

Racing regulation fund 3,935,800

Racing regulationfund — unarmed

combatsubaccount 105,200

The amount appropriated to the countyfairs livestock and agriculture promotion line item is for deposit in thecounty fairs livestock and agriculture promotion fund established by section5-113, Arizona Revised Statutes, and to be administered by the office of thegovernor.

The amount appropriated in the racingpurse enhancement line item shall be distributed to a recognized nonprofithorsem*n's organization that has represented horsem*n participating in racingmeetings since 1988 to be used to promote racing and enhance the general pursestructure for eligible horse races held in this state.

On or before August 1, 2024, thedepartment of gaming shall report to the directors of the joint legislative budgetcommittee and the governor's office of strategic planning and budgeting on theexpected amount and purpose of expenditures from the event wagering fundestablished by section 5-1318, Arizona Revised Statutes, for fiscal year2024-2025. The report shall include the projected line item detailand the number of filled full-time equivalent positions.

On orbefore the final day of each quarter of fiscal year 2024-2025, the departmentof gaming shall report to the members of the joint legislative budget committeeon the number of equine deaths and injuries that occurred as a result of ahorse race and the commercial live racing facility where each incidentoccurred. The report shall include the number of pre-race inspections performedby a veterinarian employed by or contracted with this state.

The amount appropriated to thehorseracing integrity and safety act assessment line item shall be used by thedepartment during fiscal year 2024-2025 to pay the calendar year 2024assessment levied by the horseracing integrity and safety authority.

Theappropriation made in the racetrack capital projects and maintenance andoperation funding line item shall be distributed to commercial live racingpermittees for capital projects and track maintenance and operations, includingcosts associated with the compliance costs associated with the horseracingintegrity and safety act of 2020 (P.L. 116-260; 134 Stat. 3252; 15 UnitedStates Code sections 3051 through 3060). From the amount appropriated in theracetrack capital projects and maintenance and operations funding line item,the department of gaming shall allocate $1,500,000 to a commercial live racingpermittee located in Maricopa county.

Sec. 49. OFFICEOF THE GOVERNOR

2024-25

Operatinglump sum appropriation $ 7,839,800*

Fosteryouth education success

funddeposit 1,500,000

Total appropriation — office of the governor $ 9,339,800

Fundsources:

Stategeneral fund $ 9,339,800

Included in the operating lump sum appropriationof $7,839,800 for fiscal year 2024-2025 is $10,000 for the purchase of mementosand items for visiting officials.

The amount appropriated for themissing and murdered indigenous people task force line item in fiscal year2023-2024 pursuant to Laws 2023, chapter 133, section 42 is exempt from theprovisions of section 35-190, Arizona Revised Statutes, relating tolapsing of appropriations.

Sec. 50. GOVERNOR'S OFFICE OF STRATEGIC PLANNING AND BUDGETING

2024-25

FTE positions 22.0

Lump sumappropriation $ 2,938,100*

Fund sources:

Stategeneral fund $ 2,938,100

Sec. 51. DEPARTMENT OF HEALTH SERVICES

2024-25

FTE positions 1,168.0

Operating lump sum appropriation $64,357,300

Public health/familyhealth

Adultcystic fibrosis care 105,200

AIDSreporting and surveillance 1,000,000

Alzheimer'sdisease research 4,125,000

Behavioralhealth care provider 1,000,000

loanrepayment program

Biomedicalresearch support 2,000,000

Breastand cervical cancer and

bonedensity screening 1,369,400

County tuberculosis provider

care and control 590,700

Folicacid program 400,000

Funeralservices regulation 459,400

High-riskperinatal services 2,343,400

Newbornscreening program 12,369,800

Nonrenaldisease management 198,000

Nursingcare special projects 200,000

Poisoncontrol centers funding 990,000

Preceptorgrant program for graduate

students 500,000

Renaldental care and nutrition

supplements 300,000

Renaltransplant drugs 183,000

Arizona state hospital

Arizona state hospital —

operating 77,146,700

Arizonastate hospital —

restorationto competency 900,000

Arizonastate hospital —

sexuallyviolent persons 11,131,900

Total appropriation — department of

health services $181,669,800

Fund sources:

Stategeneral fund $118,979,200

Arizonastate hospital fund 3,395,800

Arizonastate hospital land fund 650,000

Childfatality review fund 196,500

Diseasecontrol research fund 1,000,000

DHSindirect cost fund 13,220,400

Emergencymedical services

operatingfund 4,209,500

Environmentallaboratory licensure

revolvingfund 995,500

Federalchild care and development

fundblock grant 992,500

Healthservices licensing fund 17,416,400

Newbornscreening program fund 12,802,900

Nursingcare institution resident

protectionrevolving fund 238,200

Tobaccotax and health care

fund- health research account 3,000,000

Tobaccotax and health care

fund— medically needy account 700,000

Vitalrecords electronic systems

fund 3,872,900

Publichealth/family health

Of theamount appropriated for the operating lump sum, $100,000 shall be used for asuicide prevention coordinator to assist school districts and charter schoolsin suicide prevention efforts. On or before September 1, 2025, the departmentof health services, in consultation with the department of education, shallreport to the governor, the president of the senate, the speaker of the houseof representatives, the director of the joint legislative budget committee andthe director of the governor's office of strategic planning and budgeting onthe suicide prevention coordinator's accomplishments in fiscal year 2024-2025.

The amount appropriated to theoperating lump sum in fiscal year 2024-2025 includes $1,202,400 from the stategeneral fund to support additional licensing compliance staff. This amount isexempt from the provisions of section 35-190, Arizona Revised Statutes,relating to lapsing of appropriations, until June 30, 2026.

The department of health services mayuse up to four percent of the amount appropriated for nonrenal diseasemanagement for the administrative costs to implement the program.

The department of health servicesshall distribute monies appropriated for the biomedical research support lineitem to a nonprofit medical research institute headquartered in this state thatspecializes in biomedical research focusing on applying genomic technologiesand sequencing to clinical care, that has served as a resource to this state toconduct molecular epidemiologic analyses to assist with disease outbreakinvestigations and that collaborates with universities, hospitals and healthscience research centers and other public and private bioscience and relatedindustries in this state. The recipient of these monies shall commission anaudit of the expenditure of these monies and shall submit a copy of the auditto the department of health services on or before February 1, 2026.

The department of health servicesshall distribute monies appropriated for Alzheimer's disease research through agrant to a charitable organization that is qualified under section 501(c)(3) ofthe internal revenue code and that meets the following criteria:

1. Is headquartered in thisstate.

2. Has been operating inthis state for at least the last ten years.

3. Has participating memberinstitutions that work together to end Alzheimer's disease within a statewidecollaborative model by using their complementary strengths in brain imaging,computer science, genomics, basic and cognitive neurosciences and clinical andneuropathology research.

4. Has participating memberinstitutions that educate residents of this state about Alzheimer's disease,research progress and resources to help patients, families and professionalsmanage the disease.

The terms of the grant made to thecharitable organization may not impose any requirements that were not imposedin prior grant agreements entered into between the department of healthservices and the charitable organization.

The amount appropriated to thedepartment of health services for the preceptor grant program for graduatestudents is exempt from the provisions of section 35-190, Arizona RevisedStatutes, relating to the lapsing of appropriations. Any monies remainingunexpended on July 1, 2026 revert to the state general fund.

The amount appropriated for thepsilocybin research line item in fiscal year 2023-2024 pursuant to Laws2023, chapter 133, section 44 is exempt from the provisions of section 35-190,Arizona Revised Statutes, relating to lapsing of appropriations.

Of the amount appropriated to thedepartment of health services for the behavioral health care provider loanrepayment program line item in fiscal year 2022-2023 pursuant to Laws 2022,chapter 313, section 44, $1,000,000 from the state general fund is exempt fromthe provisions of section 35-190, Arizona Revised Statutes, relating to lapsingof appropriations, until June 30, 2025.

The amount appropriated for theaccelerated nursing programs line item in fiscal year 2022-2023 pursuant toLaws 2022, chapter 313, section 44 is exempt from the provisions of section35-190, Arizona Revised Statutes, relating to lapsing of appropriations, untilJune 30, 2025.

The amount appropriated for thenurse-family partnership programs line item in fiscal year 2023-2024 pursuantto Laws 2023, chapter 133, section 44 is exempt from the provisions of section35-190, Arizona Revised Statutes, relating to lapsing of appropriations, untilJune 30, 2027.

Arizonastate hospital

Inaddition to the appropriation for the department of health services, earningson state lands and interest on the investment of the permanent state land fundsare appropriated to the Arizona state hospital in compliance with the enablingact and the Constitution of Arizona.

Departmentwide

The department of health servicesshall electronically forward to the president of the senate, the speaker of thehouse of representatives, the chairpersons of the senate and house ofrepresentatives appropriations committees and the director of the jointlegislative budget committee a monthly report comparing total expenditures forthe month and year-to-date as compared to prior-year totals on or beforethe thirtieth of the following month. Each report shall include anestimate of potential shortfalls in programs, potential federal and othermonies, such as the statewide assessment for indirect costs, that may beavailable to offset these shortfalls, and a plan, if necessary, for eliminatingany shortfall without a supplemental appropriation.

Sec. 52. ARIZONAHISTORICAL SOCIETY

2024-25

FTEpositions 50.9

Operatinglump sum appropriation $ 2,420,900

Fieldservices and grants 65,400

Papagopark museum 559,500

Total appropriation — Arizonahistorical

society $ 3,045,800

Fund sources:

Stategeneral fund $ 3,045,800

Sec. 53. PRESCOTTHISTORICAL SOCIETY

2024-25

FTEpositions 13.0

Lumpsum appropriation $ 1,012,900

Fund sources:

Stategeneral fund $ 1,012,900

Sec. 54. ARIZONADEPARTMENT OF HOMELAND SECURITY

2024-25

FTEpositions 20.0

Statewideinformation security

andprivacy operations and

controls $11,094,400

Statewidecybersecurity grants 10,000,000

Total appropriation — Arizonadepartment of

homelandsecurity $21,094,400

Fund sources:

State general fund $10,000,000

Information technology fund 11,094,400

Of the amountappropriated for statewide cybersecurity grants, the Arizona department ofhomeland security may spend up to $500,000 for grant administration.

Sec. 55. BOARD OF HOMEOPATHIC AND INTEGRATED MEDICINE EXAMINERS

2024-25

FTEpositions 1.0

Lumpsum appropriation $ 61,400

Fund sources:

Board ofhomeopathic and

integratedmedicine

examiners'fund $ 61,400

Sec. 56. ARIZONA DEPARTMENTOF HOUSING

2024-25

FTEpositions 3.0

Operatinglump sum appropriation $ 371,100

Housingtrust fund deposit 15,000,000

Total appropriation — Arizonadepartment of

housing $15,371,100

Fund sources:

Stategeneral fund $15,000,000

Housingtrust fund $ 371,100

The amount appropriated for thehomeless services grant pilot line item in fiscal year 2022-2023 pursuant toLaws 2022, chapter 313, section 49 is exempt from the provisions of section35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

Sec. 57. INDUSTRIALCOMMISSION OF ARIZONA

2024-25

FTE positions 236.6

Operating lump sum appropriation $21,985,500

Municipal firefighter reimbursem*nt

administration 84,700

Total appropriation — industrialcommission

of Arizona $22,070,200

Fund sources:

State general fund $ 84,700

Administrative fund 21,985,500

The legislature intends that the stategeneral fund appropriation be used only for administrative costs of title 23,chapter 11, Arizona Revised Statutes, and that this appropriation does notconvey any responsibility for firefighter cancer compensation and benefitsclaims to this state.

Sec. 58. DEPARTMENT OF INSURANCE AND FINANCIAL INSTITUTIONS

2024-25

FTE positions 159.4

Operating lump sum appropriation $12,894,600

Arizona vehicle theft task force 4,452,600

Automobiletheft authority

operatingbudget 698,700

Insurancefraud unit 1,849,800

Localgrants 1,388,900

Reimbursableprograms 50,000

Of the monies appropriated to thedepartment of insurance and financial institutions in the operating lump sumappropriation, $250,000 shall be used to administer the provisions of a billaddressing insurance provider claims against insurers if the bill becomes lawin the fifty-sixth legislature, second regular session. These moniesrevert to the state general fund if a bill addressing provider claims againstinsurers does not become law in the fifty-sixth legislature, second regularsession.

Total appropriation — department ofinsurance

andfinancial institutions $21,334,600

Fund sources:

Stategeneral fund $ 8,548,500

Automobiletheft authority fund 6,740,900

Financialservices fund 5,994,900

Departmentrevolving fund 50,300

Monies in the Arizona vehicle thefttask force line item shall be used by the department of insurance and financialinstitutions to pay seventy-five percent of the personal services andemployee-related expenditures for city, town and county sworn officerswho participate in the Arizona vehicle theft task force.

Local grants shall be awarded withconsideration given to areas with greater automobile theft problems and shallbe used to combat economic automobile theft operations.

The department of insurance andfinancial institutions shall submit a report to the joint legislative budgetcommittee before spending any monies for the reimbursable programs line item.The department shall show sufficient monies collected to cover the expensesindicated in the report.

Of the department fees required to bedeposited in the state general fund by statute, the legislature intends thatthe department of insurance and financial institutions shall assess and set thefees at a level to ensure that the monies deposited in the state general fundwill equal or exceed the department's expenditure from the state general fund.

Sec. 59. ARIZONA JUDICIARY

2024-25

Supreme court

FTE positions 205.0

Operating lump sum appropriation $18,167,200

Arizonatrial and digital

evidencefund deposit 1,620,000

Automation 24,533,000

County reimbursem*nts 187,900

Courtappointed special advocate

andvulnerable persons 6,576,700

Courthousesecurity 750,000

Digitalevidence software 280,000

Domesticrelations 685,900

Statefoster care review board 3,504,900

Commissionon judicial conduct 603,700

Judicialnominations and

performancereview 608,500

Juvenilemonetary sanctions

fundingbackfill 250,000

Modelcourt 658,800

Stateaid 5,931,900

Total appropriation — supreme court $64,358,500

Fund sources:

Stategeneral fund $29,683,400

Confidentialintermediary and

fiduciary fund 682,800

Court appointed special advocate

and vulnerablepersons fund 6,776,000

Criminal justice enhancement fund 4,691,900

Defensivedriving school fund 4,464,000

Judicial collection enhancement

fund 15,114,200

Stateaid to the courts fund 2,946,200

On or beforeSeptember 1, 2024, the supreme court shall report to the joint legislativebudget committee and the governor's office of strategic planning and budgetingon current and future automation projects coordinated by the administrativeoffice of the courts. The report shall include a list of courtautomation projects that receive or are anticipated to receive state monies inthe current or next two fiscal years as well as a description of each project,the number of FTE positions, the entities involved and the goals andanticipated results for each automation project. The report shall besubmitted in one summary document. The report shall indicate eachproject's total multiyear cost by fund source and budget line item, includingany prior-year, current year and future year expenditures.

Automation expenses of the judiciaryshall be funded only from the automation line item. Monies in theoperating lump sum appropriation or other line items intended for automationpurposes shall be transferred to the automation line item before expenditure.

Included in the operating lump sumappropriation for the supreme court is $1,000 for the purchase of mementos anditems for visiting officials.

Of the $187,900 appropriated forcounty reimbursem*nts, state grand jury is limited to $97,900 and capitalpostconviction relief is limited to $90,000.

Courtof appeals

FTEpositions 162.8

Divisionone $16,212,600

Divisiontwo 8,498,200

Total appropriation — court of appeals $24,710,800

Fund sources:

Stategeneral fund $24,710,800

Of the 162.8 FTE positions for fiscalyear 2024-2025, 111.3 FTE positions are for division one and 51.5 FTE positionsare for division two.

Superiorcourt

FTE positions 240.5

Operatinglump sum appropriation $ 5,609,600

Judges'compensation 29,913,900

Centralizedservice payments 4,696,900

Adultstandard probation 22,297,500

Adultintensive probation 13,150,200

Communitypunishment 2,310,300

Court-orderedremovals 315,000

Interstatecompact 513,700

Drugcourt 1,096,400

Generaladjudication personnel

andsupport fund deposit 2,000,000

Juvenilestandard probation 3,781,800

Juvenileintensive probation 6,087,200

Juveniletreatment services 20,803,000

Juvenilefamily counseling 500,000

Juvenilecrime reduction 3,313,700

Juvenilediversion consequences 9,088,500

Probationincentive payments 1,000,000

Specialwater master 511,100

Total appropriation — superior court $126,988,800

Fund sources:

State general fund $114,973,100

Criminaljustice enhancement fund 5,496,100

Drugtreatment and education fund 504,200

Judicialcollection enhancement

fund 6,015,400

Operatingbudget

All expenditures made by theadministrative office of the courts to administer superior court line itemsshall be funded only from the superior court operatingbudget. Monies in superior court line items intended for thispurpose shall be transferred to the superior court operating budget beforeexpenditure.

Judges

Of the 240.5FTE positions, 182 FTE positions represent superior court judges. This FTE position clarification does not limit the counties'ability to add judges pursuant to section 12-121, Arizona RevisedStatutes.

All monies in the judges' compensationline item shall be used to pay for fifty percent of superior court judges'salaries, elected officials' retirement plan costs and related state benefitcosts for judges pursuant to section 12-128, Arizona RevisedStatutes. Monies in the operating lump sum appropriation or otherline items intended for this purpose shall be transferred to the judges'compensation line item before expenditure.

Probation

Monies appropriated to juveniletreatment services and juvenile diversion consequences shall be deposited inthe juvenile probation services fund established by section 8-322,Arizona Revised Statutes.

Receipt of state probation monies bythe counties is contingent on the county maintenance of fiscal year 2019-2020expenditure levels for each probation program. State probationmonies are not intended to supplant county dollars for probation programs.

On or before November 1, 2024, theadministrative office of the courts shall report to the joint legislativebudget committee and the governor's office of strategic planning and budgetingthe fiscal year 2023-2024 actual, fiscal year 2024-2025 estimated and fiscalyear 2025-2026 requested amounts for each of the following:

1. On a county-by-countybasis, the number of authorized and filled case carrying probation positionsand non-case carrying probation positions, distinguishing between adultstandard, adult intensive, juvenile standard and juvenile intensive. Thereport shall indicate the level of state probation funding, other statefunding, county funding and probation surcharge funding for those positions.

2. Total receipts andexpenditures by county and fund source for the adult standard, adult intensive,juvenile standard and juvenile intensive probation line items, including theamount of personal services spent from each revenue source of each account.

All centralized service payments madeby the administrative office of the courts on behalf of counties shall befunded only from the centralized service payments lineitem. Centralized service payments include only training, motorvehicle payments, CORP review board funding, LEARN funding, research,operational reviews and GPS vendor payments. This footnote does not apply totreatment or counseling services payments made from the juvenile treatmentservices and juvenile diversion consequences line items. Monies in theoperating lump sum appropriation or other line items intended for centralizedservice payments shall be transferred to the centralized service payments lineitem before expenditure.

All monies in the adult standardprobation, adult intensive probation, community punishment, interstate compact,juvenile standard probation, juvenile intensive probation, juvenile treatmentservices, juvenile diversion consequences, juvenile crime reduction and probationincentive payments line items shall be used only as pass-through monies tocounty probation departments. Monies in the operating lump sumappropriation or other line items intended as pass-through for the purpose ofadministering a county probation program shall be transferred to theappropriate probation line item before expenditure.

On or before November 1, 2024, theadministrative office of the courts shall submit a report to the jointlegislative budget committee on the county-approved salary adjustments providedto probation officers since the last report on November 1, 2023. Theadministrative office shall also submit a copy of the report to the governor'soffice of strategic planning and budgeting. The report shallinclude, for each county, the:

1. Approvedpercentage salary increase by year.

2. Netincrease in the amount allocated to each probation department by theadministrative office of the courts for each applicable year.

3. Average number ofprobation officers by applicable year.

4. Average salary ofprobation officers for each applicable year.

Sec. 60. DEPARTMENT OF JUVENILE CORRECTIONS

2024-25

FTE positions 738.5

Lump sum appropriation $44,496,700

Fund sources:

Stategeneral fund $30,920,800

State charitable,penal and

reformatoryinstitutions

land fund 4,875,100

Criminal justice enhancement fund 529,000

State education fund for committed

youth 1,447,800

Department of juvenile corrections

local cost sharingfund 6,724,000

Twenty-five percent of landearnings and interest from the state charitable, penal and reformatoryinstitutions land fund shall be distributed to the department of juvenilecorrections, in compliance with section 25 of the enabling act and theConstitution of Arizona, to be used to support state juvenile institutions andreformatories.

Sec. 61. STATE LANDDEPARTMENT

2024-25

FTEpositions 136.7

Operatinglump sum appropriation $17,787,000

CAPuser fees 1,521,500

Duediligence program 5,000,000

Naturalresource conservation

districts 650,000

Total appropriation — state landdepartment $24,958,500

Fund sources:

Stategeneral fund $12,404,000

Environmentalspecial plate fund 260,600

Off-highwayvehicle recreation

fund 177,600

Duediligence fund 5,000,000

Trustland management fund 7,116,300

The appropriation includes $1,521,500for CAP user fees in fiscal year 2024-2025. For fiscal year2024-2025, from municipalities that assume their allocation of central Arizona projectwater for every dollar received as reimbursem*nt to this state for past centralArizona water conservation district payments, $1 reverts to the state generalfund in the year that the reimbursem*nt is collected.

Of the amount appropriated for naturalresource conservation districts in fiscal year 2024-2025, $30,000 shall be usedto provide grants to natural resource conservation districts environmentaleducation centers.

Sec. 62. LEGISLATURE

2024-25

Senate

Lump sum appropriation $18,374,500*

Fund sources:

State general fund $18,374,500

Included in the lump sum appropriationof $18,374,500 for fiscal year 2024-2025 is $5,000 for the purchase of mementosand items for visiting officials.

House of representatives

Lumpsum appropriation $21,951,500*

Fund sources:

State general fund $21,951,500

Included in the lump sum appropriationof $21,951,500 for fiscal year 2024-2025 is $5,000 for the purchase of mementosand items for visiting officials.

Legislativecouncil

FTE positions 56.0

Lump sum appropriation $9,507,700*

Fund sources:

Stategeneral fund $ 9,507,700

Ombudsman-citizensaide office

FTE positions 12.0

Lump sum appropriation $1,561,200*

Fund sources:

Stategeneral fund $ 1,561,200

The legislature intends that theombudsman-citizens aide prioritize investigating and processing complaintsrelating to the department of child safety.

The operating budget includes $137,500and 1 FTE position to address complaints relating to the administration of theArizona empowerment scholarship account program established by section 15-2402,Arizona Revised Statutes.

Jointlegislative budget committee

FTEpositions 29.0

Lump sum appropriation $ 3,122,700*

Fund sources:

Stategeneral fund $ 3,122,700

Auditor general

FTEpositions 224.8

Lump sum appropriation $26,316,600*

Fund sources:

State general fund $26,316,600

Of the amountappropriated for the lump sum appropriation, the auditor general shall use$3,300,000 for additional agency performance audits and school district audits.

Sec. 63. DEPARTMENTOF LIQUOR LICENSES AND CONTROL

2024-25

FTE positions 58.2

Lump sum appropriation $ 6,150,900

Fund sources:

Liquor licenses fund $ 6,150,900

Sec. 64. ARIZONA STATE LOTTERY COMMISSION

2024-25

FTE positions 98.8

Operatinglump sum appropriation $10,195,400

Advertising 15,500,000

Total appropriation — Arizona state

lotterycommission $25,695,400

Fund sources:

State lotteryfund $25,695,400

An amount equal to twenty percent oftab ticket sales is appropriated to pay sales commissions to charitableorganizations. This amount is currently estimated to be $1,994,900 in fiscalyear 2024-2025.

An amount equal to 3.6 percent ofactual instant ticket sales is appropriated to print instant tickets or to paycontractual obligations concerning instant ticket distribution. Thisamount is currently estimated to be $42,399,600 in fiscal year 2024-2025.

An amount equal to a percentage ofactual online game sales as determined by contract is appropriated to payonline vendor fees. This amount is currently estimated to be $20,729,900, or4.256 percent of actual online ticket sales, in fiscal year 2024-2025.

An amount equal to 6.5 percent ofgross lottery game sales, minus charitable tab tickets, is appropriated to paysales commissions to ticket retailers. An additional amount not toexceed 0.5 percent of gross lottery game sales is appropriated to pay salescommissions to ticket retailers. The combined amount is currentlyestimated to be $110,876,200, or 6.7 percent of total ticket sales, in fiscalyear 2024-2025.

Sec. 65. BOARD OF MASSAGE THERAPY

2024-25

FTE positions 5.0

Lump sum appropriation $ 599,000

Fund sources:

Board of massage therapy fund $ 599,000

Sec. 66. ARIZONA MEDICALBOARD

2024-25

FTEpositions 63.5

Operatinglump sum appropriation $ 8,195,400

Employeeperformance incentive

program 165,600

Total appropriation — Arizonamedical

board $ 8,361,000

Fund sources:

Arizonamedical board fund $ 8,361,000

Sec. 67. STATE MINE INSPECTOR

2024-25

FTE positions 22.0

Operating lump sum appropriation $ 1,484,500

Abandonedmines 825,400

Aggregatemining land reclamation 112,900

Total appropriation — state mine inspector $ 2,422,800

Fund sources:

State general fund $ 2,309,900

Aggregate mining reclamation fund 112,900

All aggregate mining reclamation fundmonies received by the state mine inspector in excess of $112,900 in fiscalyear 2024-2025 are appropriated to the aggregate mining land reclamation lineitem. Before spending any aggregate mining reclamation fund monies in excessof $112,900 in fiscal year 2024-2025, the state mine inspector shall report theintended use of the monies to the joint legislative budget committee and thegovernor's office of strategic planning and budgeting.

Sec. 68. NATUROPATHICPHYSICIANS MEDICAL BOARD

2024-25

FTEpositions 2.0

Lumpsum appropriation $ 217,700

Fund sources:

Naturopathicphysicians medical

boardfund $ 217,700

Sec. 69. ARIZONA NAVIGABLE STREAM ADJUDICATION COMMISSION

2024-25

FTE positions 2.0

Lumpsum appropriation $ 344,000

Fund sources:

State general fund $ 144,000

Arizona water banking fund 200,000

Sec. 70. ARIZONASTATE BOARD OF NURSING

2024-25

FTE positions 63.0

Operating lump sum appropriation $ 6,411,500

Certified nursing assistant

credentialingprogram 538,400

Total appropriation — Arizona state

board of nursing $ 6,949,900

Fund sources:

Board of nursing fund 6,949,900

The amount appropriated for thestudent registered nurse anesthetist clinical rotation line item in fiscal year2023-2024 pursuant to Laws 2023, chapter 133, section 63 is exempt from theprovisions of section 35-190, Arizona Revised Statutes, relating tolapsing of appropriations, until June 30, 2025.

Sec.71. BOARD OF EXAMINERS OF NURSING CAREINSTITUTION ADMINISTRATORS AND ASSISTED LIVING FACILITY MANAGERS

2024-25

FTE positions 7.0

Lump sum appropriation $ 604,900

Fundsources:

Nursing care institution

||administrators'licensing and

||assistedliving facility

||managers' certification fund $ 604,900

Sec. 72. BOARD OFOCCUPATIONAL THERAPY EXAMINERS

2024-25

FTEpositions 2.0

Lump sum appropriation $ 303,000

Fund sources:

Occupationaltherapy fund $ 303,000

Sec. 73. STATE BOARD OFDISPENSING OPTICIANS

2024-25

FTEpositions 1.0

Lump sumappropriation $ 198,200

Fundsources:

Board ofdispensing opticians fund $ 198,200

Sec. 74. STATE BOARD OF OPTOMETRY

2024-25

FTE positions 2.0

Lump sumappropriation $ 289,200

Fund sources:

Board of optometry fund $ 289,200

Sec.75. ARIZONABOARD OF OSTEOPATHIC EXAMINERS IN MEDICINE AND SURGERY

2024-25

FTEpositions 10.0

Lump sumappropriation $ 1,394,300

Fund sources:

Arizona board of osteopathic

examiners in medicine

andsurgery fund $ 1,394,300

Sec.|76. ARIZONA STATEPARKS BOARD

2024-25

FTEpositions 167.0

Operatinglump sum appropriation $ 18,140,100

Arizonatrail fund deposit 100,000

Stateparks store 1,513,100

Kartchner caverns state park 2,458,400

Veterans memorial park feasibility

study 500,000

Total appropriation — Arizona stateparks

board $ 22,711,600

Fund sources:

Stateparks revenue fund $ 21,081,800

Stateparks store fund 1,513,100

Off-highwayvehicle recreation fund 16,700

Stategeneral fund 100,000

In addition to the operating lump sumappropriation, an amount equal to the revenue share agreement with the UnitedStates forest service for Fool Hollow Lake recreation area and Catalina statepark is appropriated to the Arizona state parks board from the state parksrevenue fund established by section 41-511.21, Arizona Revised Statutes.

Sec.77. STATEPERSONNEL BOARD

2024-25

FTEpositions 2.0

Lump sumappropriation $ 361,100

Fund sources:

Personneldivision fund —

personnelboard subaccount $ 361,100

Sec. 78. ARIZONA STATE BOARD OF PHARMACY

2024-25

FTE positions 25.4

Operating lump sum appropriation $ 3,476,700

Prescriber report card 50,000

Annualleave payout 64,600*

Total appropriation — Arizona state

board ofpharmacy $ 3,591,300

Fund sources:

Arizonastate board of pharmacy

fund $ 3,591,300

Of the amount appropriatedin the operating lump sum appropriation in fiscal year 2022-2023 to the Arizonastate board of pharmacy pursuant to Laws 2022, chapter 313, section 71,$190,500 is exempt from the provisions of section 35-190, Arizona RevisedStatutes, relating to the lapsing of appropriations, until June 30, 2025, forthe purposes of e-licensing system upgrades.

Sec. 79. BOARD OFPHYSICAL THERAPY

2024-25

FTEpositions 4.0

Lump sumappropriation $ 591,500

Fundsources:

Board ofphysical therapy fund $ 591,500

Sec. 80. ARIZONA PIONEERS'HOME

2024-25

FTEpositions 107.3

Lumpsum appropriation $ 8,380,200

Fund sources:

Miners'hospital for miners with

disabilitiesland fund $ 2,301,300

Statecharitable fund 6,078,900

Earnings on state lands and intereston the investment of the permanent land funds are appropriated for the Arizonapioneers' home and the state hospital for miners with disabilities incompliance with the enabling act and the Constitution of Arizona.

Sec. 81. STATE BOARD OFPODIATRY EXAMINERS

2024-25

FTE positions 1.0

Lump sum appropriation $ 202,500

Fund sources:

Podiatry fund $ 202,500

Sec. 82. STATE BOARD FOR PRIVATE POSTSECONDARY EDUCATION

2024-25

FTEpositions 4.0

Lumpsum appropriation $ 448,100

Fund sources:

Boardfor private postsecondary

education fund $ 448,100

Sec. 83. STATE BOARD OFPSYCHOLOGIST EXAMINERS

2024-25

FTE positions 4.5

Lump sum appropriation $ 640,000

Fund sources:

Board of psychologist examiners

||fund $ 640,000

Sec. 84. DEPARTMENT OFPUBLIC SAFETY

2024-25

FTEpositions 2,167.7

Operating lump sum appropriation $271,399,700

ACTIC 2,132,700

AZPOST 6,100,000

Border drug interdiction 1,850,900

Local border support 5,000,000

Civil air patrol maintenance and

operations 144,000

Departmentof public safety

crime lab assistance 200,000

GIITEM 24,514,300

GIITEM subaccount 2,396,400

Major incident division 15,500,000*

Motor vehicle fuel 5,454,600

Pharmaceuticaldiversion and

drugtheft task force 635,300

Public safety equipment 3,660,000

Total appropriation — department ofpublic

safety $338,987,900

Fund sources:

Stategeneral fund $262,246,500

Statehighway fund 10,000,000

Arizonahighway patrol fund 24,096,500

Criminaljustice enhancement fund 3,009,000

Departmentof public safety

forensicsfund 22,888,300

Gang and immigration intelligence

team enforcement mission border

security and law enforcement

subaccount 2,396,400

Motorcyclesafety fund 198,900

Motorvehicle liability insurance

enforcementfund 979,400

Riskmanagement revolving fund 1,102,500

Paritycompensation fund 3,022,200

Publicsafety equipment fund 3,664,000

Concealedweapons permit fund 3,348,100

Fingerprintclearance card fund 2,036,100

Of the $24,514,300 appropriated to theGIITEM line item, $12,660,400 shall be used for one hundred department ofpublic safety GIITEM personnel. The additional staff shall includeat least fifty sworn department of public safety positions to be used forimmigration enforcement and border security and fifty department of publicsafety positions to assist GIITEM in various efforts, including:

1. Strictly enforcing allfederal laws relating to illegal aliens and arresting illegal aliens.

2. Responding to orassisting any county sheriff or attorney in investigating complaints ofemployment of illegal aliens.

3. Enforcing Arizona's lawknown as the Legal Arizona Workers Act, strictly enforcing Arizona'sSB1070, Arizona's "Support Our Law Enforcement and SafeNeighborhoods Act" and investigating crimes of identity theft in thecontext of hiring illegal aliens and the unlawful entry into this country.

4. Taking strictenforcement action.

Anychange in the GIITEM mission or allocation of monies shall be approved by thejoint legislative budget committee. The department shall submit an expenditureplan to the joint legislative budget committee for review before expending anymonies not identified in the department's previous expenditure plans.

Of the $24,514,300 appropriated to theGIITEM line item, only $1,203,400 is deposited in the GIITEM fund establishedby section 41-1724, Arizona Revised Statutes, and is appropriated for thepurposes of that section. The $1,203,400 is exempt from the provisions ofsection 35-190, Arizona Revised Statutes, relating to lapsing ofappropriations. This state recognizes that states have inherentauthority to arrest a person for any immigration violation.

Any monies remaining in the departmentof public safety joint account on June 30, 2025 revert to the funds from whichthey were appropriated. The reverted monies shall be returned indirect proportion to the amounts appropriated.

On or before September 1, 2024, thedepartment of public safety shall submit an expenditure plan for the localborder support line item to the joint legislative budget committee and thegovernor's office of strategic planning and budgeting.

The $5,000,000 appropriated for thelocal border support line item shall be used to fund local law enforcementofficer positions for border drug interdiction to deter and apprehend anyindividuals who are charged with drug trafficking, human smuggling, illegalimmigration and other border-related crimes. The monies shallalso be used for grants to cities, towns and counties for costs associated withprosecuting and detaining individuals who are charged with drug trafficking,human smuggling, illegal immigration and other border-related crimes. Thedepartment may fund all capital-related equipment.

Of the amount appropriated in thetotal appropriation for the department of public safety, $180,608,800 isdesignated for personal services and $72,235,200 is designated foremployee-related expenditures. The department shall submit an expenditure planto the joint legislative budget committee for review before spending thesemonies for other than personal services or employee-related expenditures.

Sec. 85. STATE REAL ESTATE DEPARTMENT

2024-25

FTEpositions 37.0

Lump sum appropriation $ 3,198,000

Fundsources:

State general fund $ 3,198,000

The lump sum appropriation for thestate real estate department includes $400,000 for information technologyimprovements.

Sec. 86. RESIDENTIAL UTILITY CONSUMER OFFICE

2024-25

FTE positions 12.0

Operatinglump sum appropriation $ 1,447,200

Professionalwitnesses 145,000*

Total appropriation — residentialutility

consumeroffice $ 1,592,200

Fund sources:

Residential utility consumer

||office revolving fund $ 1,592,200

Sec. 87. BOARD OFRESPIRATORY CARE EXAMINERS

2024-25

FTEpositions 4.0

Lump sumappropriation $ 421,400

Fund sources:

Board ofrespiratory care

||examinersfund $ 421,400

Sec. 88. ARIZONA STATE RETIREMENT SYSTEM

2024-25

FTE positions 240.9

Lump sumappropriation $28,513,000

Fundsources:

Arizonastate retirement system

||administrationaccount 26,713,000

Long-term disability trust fund

administrationaccount 1,800,000

Sec. 89. DEPARTMENT OFREVENUE

2024-25

FTEpositions 892.8

Operatinglump sum appropriation $76,294,800

BRITS operationalsupport 7,897,200

E-commercecompliance and outreach 936,400

Unclaimedproperty administration

andaudit 1,473,900

TPTsimplification 1,033,400

Taxfraud prevention 3,155,300

Total appropriation — department of revenue $90,791,000

Fund sources:

Stategeneral fund $60,587,600

Departmentof revenue

administrativefund 27,390,900

Liabilitysetoff program

revolvingfund 2,087,900

Tobaccotax and health care fund 724,600

If the total value of propertiesretained by unclaimed property contract auditors exceeds $1,473,900, the excessamount is transferred from the state general fund to the department of revenueadministrative fund established by section 42-1116.01, Arizona RevisedStatutes, and is appropriated to the department for contract auditor fees.

The department shall report thedepartment's general fund revenue enforcement goals for fiscal year 2024-2025 to the joint legislative budget committee on orbefore September 30, 2024. On or before September 30, 2025, the departmentshall provide an annual progress report to the joint legislative budgetcommittee as to the effectiveness of the department's overall enforcement andcollections program for fiscal year 2024-2025.The reports shall compare projected and actual state general fund, total statetax, total county tax and total municipal tax revenue enforcement collectionsfor fiscal year 2023-2024 and fiscal year 2024-2025, including the amount of projected andactual enforcement collections for all tax types. The reports shall alsoinclude the total number of transaction privilege tax delinquent accounts, thetotal dollar value of those accounts classified by age of account and the totaldollar amount of delinquent account write-offs determined to be uncollectiblefor fiscal year 2023-2024.

The department may not transfer anymonies to or from the tax fraud prevention lineitem without prior review by the joint legislative budget committee.

The operating lump sum appropriationincludes $2,000,000 and 25 FTE positions for additional audit and collectionsstaff.

On or before November 1, 2024, thedepartment shall report the results of private fraud prevention investigationservices during fiscal year 2023-2024 to the jointlegislative budget committee. The report shall include the totalnumber of fraudulent returns prevented and the total dollar amount offraudulent returns prevented during fiscal year 2023-2024.

Sec. 90. DEPARTMENT OFSTATE — SECRETARY OF STATE

2024-25

FTE positions 146.1

Operating lump sum appropriation $15,000,400

Accessvoter information database 483,500

Election services 7,900,000

Electronic records repository 520,000

Library grants-in-aid 651,400*

Statewideradio reading service

forthe blind 97,000

Uniform state laws commission 99,000

Total appropriation — department of

state — secretary of state $24,751,300

Fund sources:

Stategeneral fund $22,325,700

Election systems improvement fund 483,500

Records services fund 1,942,100

Included in the operating lump sumappropriation of $15,000,400 for fiscal year 2024-2025 is $5,000 for the purchase of mementos and itemsfor visiting officials.

Included in the operating lump sumappropriation of $15,000,400 for fiscal year 2024-2025 is $1,492,100 from the records services fund.This appropriation may be used for the payment of obligations incurred infiscal year 2023-2024.

The operating lump sum appropriationincludes $100,000 for additional support for the talking book library.

The operating lump sum appropriationincludes $250,000 for additional support for the address confidentialityprogram.

The operating lump sum appropriationincludes $100,000 for additional support for secretary of state legalexpenses. The secretary of state may spend these monies for legal servicesfrom the attorney general, to hire one FTE position to serve as legal advisorto the secretary of state or for legal expenses for conflict counsel. Thesecretary of state may make expenditures or incur indebtedness to employoutside or private attorneys if all of the following are true:

1. The secretary of stateis named as a defendant.

2. The secretary of statebelieves a conflict exists that prevents the attorney general from representingthe secretary of state.

3. The secretary of stateeither remains a nominal party or is defending the constitutionality of a lawor referendum enacted by the legislature.

Before transferring any monies in orout of the election services line item, the secretary of state shall submit areport for review by the joint legislative budget committee.

The secretary of state may use up to$250,000 of the monies appropriated in the election services line item for thedirect costs of the secretary of state related to the 2024 primary and generalelections.

On or before January 31, 2025, thesecretary of state shall submit a report to the joint legislative budgetcommittee and the governor’s office of strategic planning and budgetingdetailing the actual expenditures from the election services line item for the2024 primary election and 2024 general election. The report shall include, ata minimum, the actual expenditures by purpose including costs associated withlogic and accuracy testing, the statewide election publicity pamphlet,initiative and referendum processing, petition signature reimbursem*nts andsample ballot requirements.

Monies in the access voter informationdatabase line item may be used only for the exclusive purpose of developing andadministering the statewide database of voter registration information requiredby section 16-168, Arizona Revised Statutes. The secretary of state may nottransfer any monies in or out of the access voter information database lineitem.

The appropriation of $5,352,200 to thesecretary of state for the county allocation of help America vote act electionsecurity grant monies made by Laws 2020, chapter 58, section 104 is exempt fromthe provisions of section 35-190, Arizona Revised Statutes, relating to lapsingof appropriations, until June 30, 2025. The monies that remain unexpended andunencumbered on June 30, 2025 revert to the fund from which the monies wereappropriated.

Sec. 91. STATE BOARD OFTAX APPEALS

2024-25

FTEpositions 4.0

Lump sumappropriation $ 327,400

Fund sources:

State general fund $ 327,400

Sec. 92. STATE BOARD OF TECHNICAL REGISTRATION

2024-25

FTE positions 25.0

Lump sum appropriation $ 2,605,000

Fund sources:

Technical registration fund $ 2,605,000

Of the amount appropriated in the agency lump sumappropriation in fiscal year 2022-2023 to the state board of technicalregistration pursuant to Laws 2022, chapter 313, section 85, $167,700 is exemptfrom the provisions of section 35-190, Arizona Revised Statutes, relating tothe lapsing of appropriations, until June 30, 2025, for the purposes of e-licensingsystem upgrades.

Sec. 93. OFFICE OFTOURISM

2024-25

FTEpositions 31.0

Tourismfund deposit $ 7,426,200

Arizonapromotion 819,000

Winepromotion 100,000

Total appropriation — office of tourism $ 8,345,200

Fund sources:

Stategeneral fund $ 8,345,200

Sec. 94. DEPARTMENT OFTRANSPORTATION

2024-25

FTEpositions 4,571.0

Operatinglump sum appropriation $252,853,100

Attorneygeneral legal services 3,623,700

Highwaymaintenance 163,242,200

ADOTfleet vehicles and heavy

equipmentmaintenance 26,219,300

ADOTfleet vehicles and heavy

equipmentmaintenance contingency 1,000,000

Statefleet operations 29,149,000

Statefleet vehicle replacement 11,370,000

Driversafety and livestock control 800,000

ADOTfleet vehicle and heavy

equipmentreplacement 22,400,000

Highwaydamage recovery account 8,000,800

Statewidelitter removal 3,106,800

Constructionmanagement system

replacement 1,885,000

Onetime fleet fuel inflation

funding 3,297,900

Radio lifecycle replacement 1,656,100

Preventive surface treatments 36,142,000

Authorized third parties 2,194,000

Total appropriation — department of

transportation $566,939,900

Fundsources:

Airquality fund $ 1,077,700

Arizonahighway user revenue fund 898,600

Highwaydamage recovery account 8,000,800

Ignitioninterlock device fund 360,700

Motorvehicle liability

insuranceenforcement fund 1,582,300

Statefleet operations fund 29,149,000

Statevehicle replacement fund 11,370,000

Stateaviation fund 2,267,700

State highway fund 483,367,200

Departmentfleet operations fund 27,219,300

Vehicle inspection and certificate

of title enforcementfund 1,646,600

Motor vehicle division

The department of transportation shallsubmit an annual report to the joint legislative budget committee on progressin improving motor vehicle division wait times and vehicle registration renewalby mail turnaround times in a format similar to prior years. The report is dueon or before July 31, 2025 for fiscal year 2024-2025.

On or before February 1, 2025, theArizona strategic enterprise technology office shall submit, on behalf of thedepartment of transportation, an annual progress report to the jointlegislative budget committee staff. The annual report shall provideupdated plans for spending the department-dedicated portion of the authorizedthird-party electronic service partner's fee retention on the motor vehiclemodernization project in fiscal year 2024-2025, including any amounts forstabilization, maintenance, ongoing operations, support and enhancements forthe motor vehicle modernization solution, maintenance of legacy mainframeprocessing and support capability, and other system projects outside the scopeof the motor vehicle modernization project.

On or before August 1, 2024, thedepartment of transportation shall report to the director of the jointlegislative budget committee the state's share of fees retained by the serviceArizona vendor in the prior fiscal year. The report shall include the amountspent by the service Arizona vendor on behalf of this state in the prior fiscalyear and a list of the projects funded with those monies.

Other

Of the total amount appropriated,$163,242,200 in fiscal year 2024-2025 for highway maintenance is exemptfrom the provisions of section 35-190, Arizona Revised Statutes, relating tolapsing of appropriations, except that all unexpended and unencumbered moniesof the appropriation revert to the state highway fund established by section28-6991, Arizona Revised Statutes, on August 31, 2025.

The amount appropriated to thepreventive surface treatments line item is exempt from the provisions of section35-190, Arizona Revised Statutes, relating to lapsing of appropriations, exceptthat all unexpended and unencumbered monies of the appropriation revert to thestate highway fund established by section 28-6991, Arizona Revised Statutes, onAugust 31, 2025.

Of the total amount appropriated, thedepartment of transportation shall pay $15,981,300 in fiscal year 2024-2025from all funds to the department of administration for its risk managementpayment.

All expenditures made by thedepartment of transportation for attorney general legal services shall befunded only from the attorney general legal services lineitem. Monies in the operating lump sum appropriation or other lineitems intended for this purpose shall be transferred to the attorney general legalservices line item before expenditure.

In accordance with section 35-142.01,Arizona Revised Statutes, reimbursem*nts for monies expended from the highwaymaintenance line item may not be credited to the account out of which theexpenditure was incurred. The department shall deposit allreimbursem*nts for monies expended from the highway maintenance line item inthe highway damage recovery account established by section 28-6994, ArizonaRevised Statutes.

Expenditures made by the department oftransportation for ADOT fleet vehicle and heavy equipment replacement shall befunded only from the ADOT fleet vehicle and heavy equipment replacement lineitem. Monies in the operating lump sum appropriation or other line itemsintended for this purpose shall be transferred to the ADOT fleet vehicle andheavy equipment replacement line item before expenditure.

The amount appropriated in theoperating lump sum includes a $2,000,000 reduction below the fiscal year 2023-2024level from the state highway fund established by section 28-6991, ArizonaRevised Statutes, in fiscal year 2024-2025 from the department'senforcement and compliance division.

Sec. 95. STATE TREASURER

2024-25

FTEpositions 38.4

Operatinglump sum appropriation $ 4,644,800

Justiceof the peace salaries 2,318,200

Law enforcement/boating safety

fund grants 2,183,800

Total appropriation — statetreasurer $ 9,146,800

Fund sources:

Stategeneral fund $ 2,660,800

Law enforcement and boating

safety fund 2,183,800

State treasurer's operating fund 4,302,200

On or beforeJune 30, 2025, the state treasurer shall report to the joint legislative budgetcommittee staff on the state treasurer's current fiscal year and estimated nextfiscal year expenditures of interest earnings spent pursuant to sections 35-315and 35-318, Arizona Revised Statutes, for the state treasurer's banking servicecontract, external investment management agreement, administrative andinformation technology costs and any other costs.

Sec. 96. GOVERNOR'SOFFICE ON TRIBAL RELATIONS

2024-25

FTE positions 3.0

Lump sum appropriation $ 68,800

Fund sources:

Stategeneral fund $ 68,800

Sec. 97. ARIZONA BOARDOF REGENTS

2024-25

FTEpositions 30.9

Operatinglump sum appropriation $ 3,165,600

Adaptiveathletics 160,000

Arizonapromise program 20,000,000

Spousesof military veterans

tuitionscholarships 10,000,000

Arizonateachers academy 15,000,000

Arizona teachersincentive program 90,000

Arizonateacher student loan program 426,000

Arizonatransfer articulation

supportsystem 213,700

Leveraging educational assistance

partnership program 1,220,800

Washington,D.C. internships 300,000*

Westerninterstate commission

office 153,000

WICHEstudent subsidies 4,078,000

Total appropriation — Arizona boardof

regents $54,807,100

Fund sources:

State general fund $54,807,100

The Arizona board of regents shalldistribute monies appropriated for the adaptive athletics line item to eachuniversity under the jurisdiction of the board to maintain and operate anintercollegiate adaptive athletics program that provides opportunities forcompetitive wheelchair and adaptive sports to students and community memberswith disabilities. The monies may be spent only when the university collectsmatching monies of gifts, grants and donations for the intercollegiate adaptiveathletics program from sources other than this state. Universities may spendthe monies only on scholarships, equipment, uniforms, travel expenses andtournament fees for participants in the intercollegiate adaptive athleticsprogram. The monies may not be used for administrative costs,personal services or employee related- expenditures.

On or before October 1, 2025, theArizona board of regents shall submit a report to the director of the jointlegislative budget committee and the director of the governor's office ofstrategic planning and budgeting on the Arizona promise program that includesall of the following for fiscal year 2024-2025:

1. The total number ofstudents receiving promise scholarships by each eligible postsecondaryinstitution.

2. The total number ofstudents enrolled at each eligible postsecondary institution that are eligibleto receive federal pell grants.

3. A list of the programsof study in which promise scholarship recipients are enrolled, including thenumber of recipients enrolled in each program.

4. The average promisescholarship award amount for each eligible postsecondary institution.

5. A geographicrepresentation of promise scholarship recipients based on the high schoolattended.

6. The average grade pointaverage of promise scholarships recipients by each eligible postsecondaryinstitution.

On or before October 1, 2025, theArizona board of regents shall submit a report to the director of the jointlegislative budget committee and the director of the governor's office ofstrategic planning and budgeting on spouses of military veterans tuitionscholarships that includes all of the following for fiscal year 2024-2025:

1. The amount distributedto each eligible postsecondary institution.

2. The total number ofaward recipients by each eligible postsecondary institution.

3. The average award amountfor each eligible postsecondary institution.

In order to be eligible to receivestate matching monies under the leveraging educational assistance partnershipprogram for grants to students, each participating institution, public orprivate, shall provide an amount of institutional matching monies that equalsthe amount of monies provided by this state to the institution for theleveraging educational assistance partnershipprogram. Administrative expenses incurred by the Arizona board ofregents shall be paid from institutional matching monies and may not exceedtwelve percent of the monies appropriated in fiscal year 2024-2025.

The Arizona board of regents shalldistribute monies appropriated for Washington, D.C. internships for programfees and housing costs in equal amounts to each of the three universities underthe jurisdiction of the board for the purpose of providing student internshipsand short-term programs in Washington, D.C. in partnership with a third-partyorganization. Short-term programs include one-week seminars andlearning opportunities shorter than one academic semester. Thethird-party organization must meet the following requirements:

1. Have partnerships withWashington, D.C.—based organizations to provide full-time, semester-long studentinternships and short-term programs.

2. Have the ability toplace as many students in internships and short-term programs as neededby the universities.

3. Have experience placingstudents in internships for at least ten consecutive years.

4. Have dedicated staff toensure that student interns have access to internships in their areas ofinterest.

Within ten days after the acceptanceof the universities' semiannual all funds budget reports, the Arizona board ofregents shall submit a current year expenditure plan to the joint legislativebudget committee for review. The expenditure plan shall include the use of allprojected tuition and fee revenues by expenditure category, including operatingexpenses, plant fund, debt service and financial aid. The plan shallinclude the amount by which each expenditure category is projected to increaseover the prior year and shall provide as much detail as the university budgetrequests. The plan shall include the total revenue and expenditureamounts from all tuition and student fee revenues, including base tuition,differential tuition, program fees, course fees, summer session fees and othermiscellaneous and mandatory student fee revenues.

Sec. 98. ARIZONA STATE UNIVERSITY

2024-25

FTE positions 8,285.7

Operatinglump sum appropriation $1,088,402,400

Biomedicalinformatics 3,746,100

EasternEurope cultural collaborative 250,000

Arizonafinancial aid trust 5,985,800

DowntownPhoenix campus 133,816,600

Total appropriation — Arizona state

university $1,232,200,900

Fund sources:

Stategeneral fund $ 377,793,800

Universitycollections fund 854,407,100

The state general fund appropriationmay not be used for alumni association funding.

The increased state general fundappropriation from Laws 2014, chapter 18 may not be used for medical marijuanaresearch.

Other than scholarships awardedthrough the Arizona financial aid trust, the appropriated monies may not beused for scholarships or any student newspaper.

The appropriated monies may not beused by the Arizona state university college of law legal clinic for anylawsuits involving inmates of the state department of corrections in which thisstate is the adverse party.

Of the amount appropriated to theArizona state university operating budget, $21,200,000 is onetime funding. Onor before September 1, 2024, Arizona state university shall provide a detailedexpenditure plan to the joint legislative budget committee that includes adescription of the intended purposes and the estimated costs of eachexpenditure.

Arizona state university shall usemonies appropriated for the eastern Europe cultural collaborative to facilitatecultural and academic exchanges between university faculty and students andacademic institutions in eastern Europe.

Any appropriated monies allocated bythe university for the school of civic and economic thought and leadershipshall be used to operate a single stand-alone academic entity within Arizonastate university. The appropriated monies may not supplant anyexisting state funding or private or external donations to the existing centersor to the school. The appropriated monies and all private andexternal donations for the school, including any remaining balances from priorfiscal years, shall be deposited in a separate account, shall be used only forthe direct operation of the school and may not be used for indirect costs ofthe university. On or before October 1, 2024, the school shallsubmit a report to the president of the senate, the speaker of the house ofrepresentatives, the chairpersons of the senate education committee and thehouse of representatives education committee and the director of the jointlegislative budget committee that includes at least the following informationfor the school:

1. The total amount of funding received from allsources.

2. A description of faculty positions and coursesoffered.

3. The total undergraduate and graduate studentenrollment.

4. Significant community events, initiatives or publications.

The chairpersons of the senateeducation committee and the house of representatives education committee mayrequest the director of the school to appear before the committees to report onthe school's annual achievements.

The legislature intends thatappropriated monies allocated by the university for the school of civic andeconomic thought and leadership in fiscal year 2024-2025 be consistent with theamount appropriated in fiscal year 2022-2023, except that the university mayallocate to the school the lump sum reduction of not more than 3.45 percentprescribed by this act.

Any unencumbered balances remaining inthe university collections fund on June 30, 2024 and all collections receivedby the university during the fiscal year are appropriated for operatingexpenditures, capital outlay and fixed charges. Earnings on state lands andinterest on the investment of the permanent land funds are appropriated incompliance with the enabling act and the Constitution of Arizona. No part ofthis appropriation may be spent for supplemental life insurance or supplementalretirement.

Sec. 99. NORTHERNARIZONA UNIVERSITY

2024-25

FTEpositions 2,480.4

Operatinglump sum appropriation $253,296,400

Arizonafinancial aid trust 1,326,000

Biomedicalresearch funding 3,000,000

NAU —Yuma 3,084,600

Teachertraining 2,292,700

Total appropriation — NorthernArizona

university $262,999,700

Fundsources:

Stategeneral fund $127,680,100

Universitycollections fund 135,319,600

The state general fund appropriationmay not be used for alumni association funding.

The increased state general fundappropriation from Laws 2014, chapter 18 may not be used for medical marijuanaresearch.

Other than scholarships awarded throughthe Arizona financial aid trust, the appropriated monies may not be used forscholarships or any student newspaper.

Of the amount appropriated to thenorthern Arizona university operating budget, $10,100,000 is onetime funding.On or before September 1, 2024, northern Arizona university shall provide adetailed expenditure plan to the joint legislative budget committee thatincludes a description of the intended purposes and the estimated costs of eachexpenditure.

The appropriated amount for the teachertraining line item shall be distributed to the Arizona K-12 center for programimplementation and mentor training for the Arizona mentor teacher programprescribed by the state board of education.

Any unencumbered balances remaining inthe university collections fund on June 30, 2024 and all collections receivedby the university during the fiscal year are appropriated for operatingexpenditures, capital outlay and fixed charges. Earnings on state lands andinterest on the investment of the permanent land funds are appropriated incompliance with the enabling act and the Constitution of Arizona. No part ofthis appropriation may be spent for supplemental life insurance or supplementalretirement.

The biomedical research funding shallbe distributed to a nonprofit medical research foundation in this state thatcollaborates with universities, hospitals and biotechnology and health researchcenters. A nonprofit foundation that receives monies shall submit anexpenditure and performance report to northern Arizonauniversity. The university shall transmit the report to the jointlegislative budget committee and the director of the governor's office ofstrategic planning and budgeting on or before February 1, 2025. Thereport must include at least the following:

1. The type and amount ofexpenditures from all state sources of monies, including the amount leveragedfor local, state, federal and private grants.

2. A description of eachgrant received as well as the percentage and locations of positions funded solelyor partly by state monies and the nonprofit foundation's projects with whichthose positions are associated.

3. Performance measures,including:

(a) Outcomes that arespecifically related to the use of state monies.

(b) Progress that has beenmade toward achieving each outcome, including activities, resources and otherevidence of the progress.

(c) Reportable inventionsor discoveries related to each outcome.

(d) Publications,presentations and narratives related to each outcome and how the expendituresfrom all state sources of monies that the nonprofit foundation received havebenefited this state.

Any appropriated monies allocated bythe university for the economic policy institute may not supplant any existingstate funding or private or external donations to the institute or to theuniversity. The appropriated monies and all private and externaldonations for the institute, including any remaining balances from prior fiscalyears, shall be deposited in a separate account, shall be used only for thedirect operation of the institute and may not be used for indirect costs of theuniversity. On or before October 1, 2024, the institute shall submit to thepresident of the senate, the speaker of the house of representatives, thechairpersons of the senate education committee and the house of representativeseducation committee and the director of the joint legislative budget committeea report that includes at least the following information for the institute:

1. The total amount offunding received from all sources.

2. A description of thefaculty positions and courses offered.

3. The total undergraduateand graduate student participation.

4. Significant communityevents, initiatives or publications.

The chairpersons of the senateeducation committee and the house of representatives education committee mayrequest the director of the institute to appear before the committees to reporton the institute's annual achievements.

The legislature intends thatappropriated monies allocated by the university for the economic policyinstitute in fiscal year 2024-2025 be consistent with the amount appropriatedin fiscal year 2022-2023, except that the university may allocate to theinstitute the lump sum reduction of not more than 3.45 percent prescribed bythis act.

Sec. 100. UNIVERSITY OFARIZONA

2024-25

Maincampus

FTEpositions 6,089.0

Operatinglump sum appropriation $511,507,700

Agriculture 38,255,700

Arizonacooperative extension 14,890,900

Arizonafinancial aid trust 2,729,400

Arizonageological survey 1,148,500

Collegeof veterinary medicine 23,528,400

Kazakhstanstudies program 250,000

Mining,mineral and natural

resourceseducational museum 430,300

Naturalresource users law and

policycenter 1,522,400

School ofmining 4,084,000

SierraVista campus 4,191,400

Veterinarydiagnostic laboratory 2,500,000

Total — main campus $605,038,700

Fund sources:

State general fund $257,806,000

University collections fund 347,232,700

Health sciences center

FTE positions 1,154.9

Operatinglump sum appropriation $100,595,000

Clinicalrural rotation 353,600

Clinicalteaching support 8,587,000

Liverresearch institute 440,400

Phoenixmedical campus 34,798,200

Telemedicinenetwork 1,670,000

Total — health sciences center $146,444,200

Fund sources:

Stategeneral fund $76,897,700

Universitycollections fund 69,546,500

Total appropriation - university of

Arizona $751,482,900

Fund sources:

Stategeneral fund $334,703,700

Universitycollections fund 416,779,200

The state general fund appropriationmay not be used for alumni association funding.

The increased state general fundappropriation from Laws 2014, chapter 18 may not be used for medical marijuanaresearch.

Other than scholarships awarded throughthe Arizona financial aid trust, the appropriated monies may not be used forscholarships or any student newspaper.

Of the amount appropriated to theuniversity of Arizona operating budget, $14,700,000 is onetime funding. On orbefore September 1, 2024, the university of Arizona shall provide a detailedexpenditure plan to the joint legislative budget committee that includes adescription of the intended purposes and the estimated costs of eachexpenditure.

The university of Arizona may not usemonies appropriated for the Arizona geological survey line item for any otherpurpose and may not transfer the monies appropriated for the Arizona geologicalsurvey to the operating budget or any other line item.

The legislature intends that$8,000,000 of the amount appropriated to the health sciences center operatinglump sum appropriation line item be used to expand the college of medicinePhoenix campus and to develop and administer a primary care physicianscholarship program at the college of medicine Phoenix campus and the collegeof medicine Tucson campus. The legislature intends that the$8,000,000 not be annualized in future years.

Any appropriated monies allocated bythe university for the center for the philosophy of freedom may not supplantany existing state funding or private or external donations to the center orthe philosophy department of the university of Arizona. Theappropriated monies and all private and external donations for the center,including any remaining balances from prior fiscal years, shall be deposited ina separate account, shall be used only for the direct operation of the centerand may not be used for indirect costs of the university. On orbefore October 1, 2024, the center shall submit a report to the president ofthe senate, the speaker of the house of representatives, the chairpersons ofthe senate education committee and the house of representatives educationcommittee and the director of the joint legislative budget committee thatincludes at least the following information for the center:

1. The total amount of funding received from allsources.

2. A description of faculty positions and coursesoffered.

3. The total undergraduate and graduate studentparticipation.

4. Significant community events, initiatives orpublications.

The chairpersons of the senateeducation committee and the house of representatives education committee mayrequest the director of the center to appear before the committees to report onthe center's annual achievements.

The legislature intends thatappropriated monies allocated by the university for the center for thephilosophy of freedom in fiscal year 2024-2025 be consistent with the amountappropriated in fiscal year 2022-2023, except that the university mayallocate to the center the lump sum reduction of not more than 3.45 percentprescribed by this act.

The amount appropriated to the collegeof veterinary medicine line item shall be distributed to the college ofveterinary medicine to increase the number of students that are residents ofthis state. Before spending these monies, the university of Arizona shallreport to the joint legislative budget committee all of the followinginformation for the college of veterinary medicine:

1. The current number ofstudents who are residents of this state.

2. The current number ofstudents who are not residents of this state.

The university of Arizona shall usemonies appropriated for the Kazakhstan studies program to facilitate academicexchanges between university students and academic institutions in Kazakhstan.

The amount appropriated for thenatural resource users law and policy center line item shall be used by thenatural resource users law and policy center within the Arizona cooperativeextension. Of the amount appropriated, at least $500,000 shall be used toassist claimants in the general stream adjudication of water rights pursuant tosection 15-1647, Arizona Revised Statutes.

One hundred percent of the landearnings and interest from the school of mines land fund shall be distributedto the university of Arizona school of mining and mineral resources incompliance with the enabling act and the Constitution of Arizona.

Any unencumbered balances remaining inthe university collections fund on June 30, 2024 and all collections receivedby the university during the fiscal year are appropriated for operatingexpenditures, capital outlay and fixed charges. Earnings on state lands andinterest on the investment of the permanent land funds are appropriated incompliance with the enabling act and the Constitution of Arizona. No part ofthis appropriation may be spent for supplemental life insurance or supplementalretirement.

Sec. 101. DEPARTMENT OF VETERANS' SERVICES

2024-25

FTE positions 792.3

Operatinglump sum appropriation $ 3,136,600

Arizonastate veterans' homes 60,519,600

Arizonastate veterans' cemeteries 960,000

Ruraltribal nations veteran

benefitcounseling 2,194,400

Veterans'benefit counseling 3,676,600

Veterans'support services 1,226,100

Veterans'trauma treatment

services 450,000

Total appropriation — department of

veterans'services $72,163,300

Fund sources:

Stategeneral fund $11,643,700

Statehome for veterans' trust

fund 60,519,600

Monies appropriated for the ruraltribal nations veteran benefit counseling line item shall be used for veterans'services officers to provide services in rural tribal nations in this statethat have communities that are located one hundred miles or more from thenearest United States department of veterans' affairs service center.

The amount appropriated for veterans'support services line item shall be distributed to a nonprofit veterans'services organization that provides support services among this state'smilitary and veteran population. The department may spend up to $76,500 ofthis appropriation to hire a program specialist to liaise between thedepartment and the selected nonprofit organization. Before theexpenditure of the monies, the department shall submit an expenditure report tothe joint legislative budget committee that includes the status of non-statematching grant monies.

Monies appropriated for the veterans'trauma treatment services line item shall be used to provide grants to contractorsas defined in section 36-2901, Arizona Revised Statutes, that providetrauma treatment services training to any of the following health professionalslicensed pursuant to title 32, Arizona Revised Statutes:

1. Physicians.

2. Registered nurse practitioners.

3. Physician assistants.

4. Psychologists.

5. Behavioral healthprofessionals who are either licensed for individual practice or supervised bya psychologist, registered nurse practitioner or behavioral health professionallicensed pursuant to title32, Arizona Revised Statutes, for independentpractice.

Sec. 102. ARIZONA STATEVETERINARY MEDICAL EXAMINING BOARD

2024-25

FTEpositions 7.0

Lump sumappropriation $ 785,100

Fund sources:

Veterinarymedical examining

boardfund $ 785,100

Sec. 103. DEPARTMENT OF WATER RESOURCES

2024-25

FTE positions 204.0

Operating lump sum appropriation $15,209,300

Adjudication support 1,889,400

Arizonawater protection fund

deposit 750,000

Assuredand adequate water supply

administration 2,501,500

Ruralwater studies 1,283,900

Conservationand drought program 427,700

Automatedgroundwater monitoring 416,600

ColoradoRiver legal expenses 500,000*

Watersupply and demand assessment 3,500,000

Total appropriation — department ofwater

resources $26,478,400

Fund sources:

Stategeneral fund $24,459,400

Waterresources fund 1,726,500

Assuredand adequate water

supplyadministration fund 292,500

Monies in theassured and adequate water supply administration line item may be used only forthe exclusive purposes prescribed in sections 45-108, 45-576, 45-577, 45-578and 45-579, Arizona Revised Statutes. The department of water resources may not transfer anymonies into or out of the assured and adequate water supply administration lineitem.

The legislature intends that monies inthe rural water studies line item be spent only to assess local water use needsand to develop plans for sustainable future water supplies in rural areasoutside this state's active management areas and not be made available forother department operating expenditures.

Monies in the adjudication supportline item may be used only for the exclusive purposes prescribed in section45-256, Arizona Revised Statutes, and section 45-257, subsection B, paragraph4, Arizona Revised Statutes. The department of water resources may nottransfer any monies into or out of the adjudication support line item.

The department of water resources maynot transfer any monies from the Colorado River legal expenses line itemwithout prior review by the joint legislative budget committee.

The amount appropriated for thestatewide water resources planning line item in fiscal year 2023-2024 pursuantto Laws 2023, chapter 133, section 97 is exempt from the provisions of section35-190, Arizona Revised Statutes, relating to the lapsing of appropriations.

Fiscal Year 2022-2023 Appropriation Adjustments

Sec.104. Appropriationreductions; state general fund; fiscal year 2022-2023

Notwithstanding any other law, thefollowing amounts are reduced from monies appropriated from the state generalfund in fiscal year 2022-2023 to the following state agencies foroperating lump sum appropriations and line items:

Arizona board of regents

CampVerde meat processing facility $ (9,700,000)

Fiscal Year 2023-2024 Appropriation Adjustments

Sec.105. Supplementalappropriation; department of administration; risk management revolving fund;intent; review; fiscal year 2023-2024

A. In addition to any otherappropriations made in fiscal year 2023-2024, the sum of $9,493,000 isappropriated from the risk management revolving fund established by section41-622, Arizona Revised Statutes, in fiscal year 2023-2024 to the department ofadministration for the following purposes:

1. To pay disallowed costsrelating to excess retained earnings.

2. To pay disallowed costsrelating to the statewide information technology charges.

3. For fund transfers infiscal year 2022-2023.

4. To pay interest owedfrom prior-year disallowed costs.

B. The legislature intendsthat the department of administration not enter into any agreements to pay forany federal reimbursem*nts related to excess balances in the special employeehealth insurance trust fund established by section 38-654, Arizona RevisedStatutes, unless the proposed agreements have been reviewed by the jointlegislative budget committee.

Sec.106. Supplementalappropriation; Arizona health care cost containment system administration;fiscal year 2023-2024

Inaddition to any other appropriations made in fiscal year 2023-2024, thesum of $7,527,500 is appropriated from the children's health insurance programfund established by section 36-2995, Arizona Revised Statutes, in fiscal year2023-2024 to the Arizona health care cost containment system administration foradjustments in formula requirements.

Sec.107. Appropriationreduction; Arizona health care cost containment system administration; fiscalyear 2023-2024

In addition to any otherappropriations made in fiscal year 2023-2024, the sum of $(39,944,900) isreduced from appropriations made from the state general fund in fiscal year2023-2024 to the Arizona health care cost containment system administration foradjustments in formula requirements.

Sec.108. Department ofeconomic security; developmental disabilities; savings; prohibition; fiscalyear 2023-2024

The department of economic securitymay not transfer any excess appropriation from the DDD premium tax payment,case management—medicaid, home and community basedservices—medicaid, institutional services—medicaid,physical and behavioral health services—medicaid, medicare clawbackpayments or targeted case management–medicaid line items to anyline item outside of the developmental disabilities section in fiscal year2023-2024.

Sec.109. Supplemental appropriation;governor's office of strategic planning and budgeting; fiscal year 2023-2024

In addition to any otherappropriations made in fiscal year 2023-2024, the sum of $204,600 isappropriated from the state general fund in fiscal year 2023-2024 to thegovernor's office of strategic planning and budgeting for a retirement costtechnical adjustment.

Sec.110. Supplementalappropriation; joint legislative budget committee; fiscal year 2023-2024

In addition to any other appropriationsmade in fiscal year 2023-2024, the sum of $204,600 is appropriated fromthe state general fund in fiscal year 2023-2024 to the joint legislative budgetcommittee for a retirement cost technical adjustment.

Sec.111. Supplementalappropriation; superior court; fiscal year 2023-2024

In addition to any otherappropriations made in fiscal year 2023-2024, the sum of $813,700 isappropriated from the criminal justice enhancement fund established by section41-2401, Arizona Revised Statutes, in fiscal year 2023-2024 to thesuperior court for judges' compensation.

Sec.112. Appropriationreduction; state land department; fiscal year 2023-2024

In addition to any otherappropriations made in fiscal year 2023-2024, the sum of $(206,700) isreduced from appropriations made from the state general fund in fiscal year2023-2024 to the state land department for central Arizona project user fees.

Sec.113. Supplementalappropriation; board of respiratory care examiners; fiscal year 2023-2024

In addition to any otherappropriations made in fiscal year 2023-2024, the sum of $15,100 isappropriated from the board of respiratory care examiners fund established bysection 32-3505, Arizona Revised Statutes, in fiscal year 2023-2024 tothe board of respiratory care examiners to pay outstanding costs of servicesprovided by the department of administration-central services bureau.

Sec.114. Supplemental appropriation; department of state-secretaryof state; fiscal year 2023-2024

In addition to any otherappropriations made in fiscal year 2023-2024, the sum of $100,000 isappropriated from the state general fund in fiscal year 2023-2024 to thedepartment of state – secretary of state for the costs of conducting logic andaccuracy testing for the 2024 primary election.

Sec.115. Supplemental appropriation; fund balance transfer; department ofwater resources; exemption; fiscal year 2023-2024

A. The sum of $2,500,000 istransferred from the water resources fund established by section 45-117,Arizona Revised Statutes, in fiscal year 2023-2024 for deposit in thedepartment of water resources subaccount in the automation projects fund establishedpursuant to section 41-714, Arizona Revised Statutes, to develop, modernize andconsolidate the department's applications.

B. The sum of $2,500,000 isappropriated from the department of water resources subaccount in theautomation projects fund established pursuant to section 41-714, ArizonaRevised Statutes, in fiscal year 2023-2024 to the department ofadministration to develop, modernize and consolidate the department of waterresources' applications. The amount appropriated pursuant to this subsectionis exempt from the provisions of section 35-190, Arizona Revised Statutes,relating to lapsing of appropriations, until June 30, 2025.

Sec.116. Supplemental appropriation; fund balance transfer; department ofadministration; fiscal year 2023-2024

The sum of $3,100,000 is transferredfrom the personnel division fund established pursuant to section 41-750,Arizona Revised Statutes, in fiscal year 2023-2024 for deposit in the humanresources information system subaccount in the automation projects fundestablished pursuant to section 41-714, Arizona Revised Statutes, to replacethe human resources information system.

Sec.117. Appropriation reductions; state general fund; fiscal year2023-2024

A. Notwithstanding anyother law, the following amounts are reduced from monies appropriated from thestate general fund in fiscal year 2023-2024 to the following stateagencies for operating lump sum appropriations and line items:

1. Department ofadministration

Employeecompensation study $ (2,200,000)

2. Arizona department ofa*griculture

Operatinglump sum–for expanded

informationtechnology support $ (300,000)

3. Arizona commerceauthority

Ruralbroadband accelerated match fund deposit $(23,600,000)

4. Superintendent of publicinstruction

Artconsumables $ (2,500,000)

Dualenrollment student development

funddeposit $(12,000,000)

Dualenrollment student development

funddeposit $ (500,000)

Broadbandexpansion fund deposit $ (2,500,000)

5. Office of tourism

Operatinglump sum–for culinary tourism

workforcedevelopment $ (150,000)

6. Departmentof administration

Healthcare interoperability grants $ (1,520,000)

7. Departmentof child safety

Extendedfoster care service model

funddeposit $ (2,720,000)

8. Statetreasurer

Distributionto the city of Glendale

fora veterans community project $ (800,000)

B. After the appropriationreduction required by subsection A, paragraph 4 of this section, the remainingappropriation to the superintendent of public instruction for the dualenrollment student development fund deposit line item is $3,000,000 in fiscalyear 2023-2024 pursuant to Laws 2023, chapter 133, section 31. Thesuperintendent of public instruction shall allocate the $3,000,000 for the dualenrollment student development deposit line item in fiscal year 2023-2024pursuant to Laws 2023, chapter 133, section 31.

Sec.118. Independent redistricting commission; reversion; fiscal year2023-2024

All monies remaining unexpended and unencumbered on June 30,2024 from the appropriation made by Laws 2021, chapter 408, section 48 revertto the state general fund.

Sec.119. Appropriation; rodeo; exemption from lapsing; reversion; fiscalyear 2023-2024

A. Theamount appropriated from the state general fund to distribute to a nonprofitvolunteer organization that operates a rodeo at the Yavapai county fairgroundsin fiscal year 2023-2024 pursuant to Laws 2023, chapter 133, section 118,paragraph 2 is exempt from the provisions of section 35-190, Arizona RevisedStatutes, relating to lapsing of appropriations.

B. Ifa court of competent jurisdiction rules that the monies appropriated pursuantto Laws 2023, chapter 133, section 118, paragraph 2 may not be distributed to anonprofit volunteer organization that operates a rodeo at the Yavapai countyfairgrounds and the judgment of that court becomes final, then the moniesshall revert to the state general fund within sixty days of the entry of thefinal judgment.

Sec.120. Appropriations; exemption from lapsing; fiscal year 2023-2024

Notwithstanding any other law, the followingamounts appropriated from the state general fund in fiscal year 2023-2024by Laws 2023, chapter 133 to the following state agencies are exempt from theprovisions of section 35-190, Arizona Revised Statutes, relating tolapsing of appropriations:

1. Department ofadministration

Fireincident management fund deposit $12,200,000

2. Office of economicopportunity

Microbusinessloan fund deposit $ 5,000,000

3. Superintendentof public instruction

Arizona civics education and leadership

development program $ 300,000

Earlyeducation and career exploration program $ 5,000,000

4. Department of healthservices

Collaborativecare uptake fund deposit $ 1,000,000

5. Arizona department ofhomeland security

Antihumantrafficking grant fund deposit $10,000,000

Arizonastate nonprofit security grant

programfund deposit $ 5,000,000

6. Arizona department ofhousing

Homelessshelter and services fund deposit $40,000,000

7. Departmentof public safety

Fentanyl prosecution, diversion and

testing fund deposit $ 3,000,000

8. Arizona board of regents

Spousesand dependents of law enforcement officers

tuitionscholarship fund deposit $ 2,000,000

Fiscal Year 2024-2025Appropriations

Sec.121. Appropriations;department of administration; counties; allocations; report; fiscal year 2024-2025

A. The sum of $7,150,650 isappropriated from the state general fund in fiscal year 2024-2025 to thedepartment of administration for distribution to counties to maintain essentialcounty services. The department shall allocate the appropriationequally among all counties with a population of less than nine hundred thousandpersons according to the 2020 United States decennial census.

B. The sum of $500,000 isappropriated from the state general fund in fiscal year 2024-2025 to thedepartment of administration for distribution to Graham county to maintainessential county services.

C. The sum of $3,000,000 isappropriated from the state general fund in fiscal year 2024-2025 to thedepartment of administration for distribution to counties to supplement thenormal cost plus an amount to amortize the unfunded accrued liability pursuantto section 38-810, subsection C, Arizona Revised Statutes. Thedepartment shall allocate the appropriation equally among all counties with apopulation of less than three hundred thousand persons according to the 2020United States decennial census. The counties may use these moniesonly for required employer contributions to the elected officials' retirementplan.

Sec.122. Automationprojects fund; appropriations; quarterly reports; exemption; fiscal year 2024-2025

A. The sum of $3,396,000 isappropriated from the medicaid enterprise system modernization subaccount inthe automation projects fund established pursuant to section 41-714, ArizonaRevised Statutes, in fiscal year 2024-2025 to the department of administrationto replace the medicaid enterprise system mainframe.

B. The sum of $5,521,200 isappropriated from the human resources information system subaccount in theautomation projects fund established pursuant to section 41-714, ArizonaRevised Statutes, in fiscal year 2024-2025 to the department ofadministration for the replacement of the human resources information system.

C. The sum of $1,320,000 isappropriated from the automation projects fund established pursuant to section41-714, Arizona Revised Statutes, in fiscal year 2024-2025 to the departmentof administration for the replacement of the human resources informationsystem.

D. The sum of $19,456,800is appropriated from the department of revenue subaccount in the automationprojects fund established pursuant to section 41-714, Arizona Revised Statutes,in fiscal year 2024-2025 to the department of administration to implement thedepartment of revenue's integrated tax system modernization project. Themonies appropriated in this subsection shall be spent for an integrated taxsystem modernization project that meets the following minimum specifications:

1. Captures data fieldsfrom electronically filed individual and corporate income tax returns and makesthe data available for querying and reporting purposes. The system shallprovide the department of revenue staff, the joint legislative budget committeestaff and governor's office of strategic planning and budgeting staff directaccess to the querying and reporting functions. The querying andreporting functions shall include procedures to protect taxpayerconfidentiality under applicable state and federal law.

2. For electronic corporateincome tax returns, captures information regarding the principal businessactivity of the corporation. This requirement may be satisfied through NorthAmerican industry classification system data listed on federal tax forms. Thetax system shall allow for querying and reporting based on principal businessactivity.

3. Includes an integratedindividual income tax model within the project and provides the department ofrevenue staff, the joint legislative budget committee staff and governor'soffice of strategic planning and budgeting staff direct access to theindividual income tax model. At a minimum, the model shall allow thedepartment of revenue staff, the joint legislative budget committee staff andgovernor's office of strategic planning and budgeting staff to adjust tax lawparameters against an anonymized representative sample of income tax returns toestimate the fiscal impact of proposed tax legislation. The model shall onlyinclude data from state and federal tax returns that are captured by the taxsystem. The individual income tax model shall include procedures to protecttaxpayer confidentiality under applicable state and federal law.

4. Makes individual andcorporate income tax data available for querying, modeling and reporting withintwenty-four months following the end of a tax year.

QuarterlyReports

E. Within thirty days afterthe last day of each calendar quarter, the department of administration shallsubmit to the joint legislative budget committee a quarterly report onimplementing projects approved by the information technology authorizationcommittee established by section 18-121, Arizona Revised Statutes, includingthe projects' expenditures to date, deliverables, timeline for completion andcurrent status.

Nonlapsing

F. The amounts appropriated pursuant to thissection from the automation projects fund established by section 41-714,Arizona Revised Statutes, in fiscal year 2024-2025 are exempt from theprovisions of section 35-190, Arizona Revised Statutes, relating to lapsing ofappropriations, until June 30, 2026.

G. NotwithstandingLaws 2022, chapter 313, section 107, $2,114,300 of the amount appropriated fromthe automation projects fund established pursuant to section 41-714, ArizonaRevised Statutes, in fiscal year 2022-2023 to the department ofadministration by Laws 2022, chapter 313, section 107 to further develop thebusiness one stop portal is exempt from the provisions of section 35-190,Arizona Revised Statutes, relating to lapsing of appropriations, until June 30,2025. This amount may be used only for maintenance and operations of thebusiness one stop portal.

H. NotwithstandingLaws 2022, chapter 313, section 107, the sum of $2,000,000 appropriated fromthe automation projects fund established pursuant to section 41-714, ArizonaRevised Statutes, in fiscal year 2022-2023 to the Arizona department ofa*griculture by Laws 2022, chapter 313, section 107 for cloud migration isexempt from the provisions of section 35-190, Arizona Revised Statutes,relating to lapsing of appropriations, until June 30, 2026.

I. NotwithstandingLaws 2023, chapter 133, section 113, the sum of $2,500,000 appropriated fromthe judiciary-supreme court subaccount in the automation projects fundestablished pursuant to section 41-714, Arizona Revised Statutes, in fiscalyear 2023-2024 to the Arizona supreme court by Laws 2023, chapter 133, section113 for a statewide community supervision electronic monitoring system isexempt from the provisions of section 35-190, Arizona Revised Statutes,relating to lapsing of appropriations, until June 30, 2027.

Sec.123. Appropriation;Arizona arts trust fund; fiscal year 2024-2025

The sum of $2,000,000 is appropriatedfrom the state general fund in fiscal year 2024-2025 for a onetimedeposit in the Arizona arts trust fund established by section 41-983.01,Arizona Revised Statutes.

Sec.124. Appropriation;supreme court; judicial salary increase; fiscal year 2024-2025

A. In addition to any otherappropriations made in fiscal year 2024-2025, $63,100 is appropriatedfrom the state general fund in fiscal year 2024-2025 to the supreme courtto pay for judicial salary increases.

B. Pursuant to section 41-1904,Arizona Revised Statutes, as of January 1, 2025, the annual salary for thechief justice of the supreme court is $222,000 and the annual salary for theother justices of the supreme court is $215,000. As of January 1, 2026, theannual salary for the chief justice of the supreme court is $232,000 and theannual salary for the other justices of the supreme court is $225,000.

Sec.125. Appropriation;court of appeals; judicial salary increase; fiscal year 2024-2025

A. In addition to any otherappropriations made in fiscal year 2024-2025, $252,200 is appropriatedfrom the state general fund in fiscal year 2024-2025 to the court ofappeals to pay for judicial salary increases.

B. Pursuant to section 41-1904,Arizona Revised Statutes, as of January 1, 2025, the annual salary for a judgeof the court of appeals is $200,000. As of January 1, 2026, the annual salaryfor a judge of the court of appeals is $210,000.

Sec.126. Appropriation;superior court; judicial salary increase; fiscal year 2024-2025

A. In addition to any otherappropriations made in fiscal year 2024-2025, $819,600 is appropriatedfrom the state general fund in fiscal year 2024-2025 to the superiorcourt to pay for judicial salary increases.

B. Pursuant to section 41-1904,Arizona Revised Statutes, as of January 1, 2025, the annual salary for asuperior court judge is $190,000. As of January 1, 2026, the annual salary fora superior court judge is $200,000.

Sec.127. Appropriations;peace officer training equipment fund; local law enforcement agencydistributions; fiscal year 2024-2025

The following amounts are appropriatedfrom the peace officer training equipment fundestablished by section 41-1731, Arizona Revised Statutes, in fiscal year2024-2025 to be distributed to the following recipients for the followingpurposes:

1. $600,000 to the Pinalcounty sheriff's office for a pilot program to connect the records managementsystems and computer aided dispatch systems of four agencies, including thePinal county sheriff's office. The software for the pilot project must do allof the following:

(a) Be able to integratedata from common law enforcement systems such as computer aided dispatch andrecords management systems on a real-time basis.

(b) Provide capabilities todeduplicate redundant records in law enforcement systems.

(c) Provide advancedconfigurable search, analytics and visualization capabilities to support commonlaw enforcement mission needs.

(d) Provide granular accesscontrols that allow law enforcement agencies to appropriately restrict accessto information by data type, organization, roles, responsibilities, individualinvestigations and other parameters.

(e) Allow for secure,permission-controlled data integration and sharing between any participatingArizona law enforcement agencies.

(f) Be accessible on a widevariety of common law enforcement agency devices such as desktops, laptops,in-car computers and mobile devices.

(g) Have a demonstratedtrack record of meeting or exceeding similar mission needs and the ability toreach full operational capability within ninety days of initiation.

(h) Allow for integrationwith existing law enforcement agency identify and access management solutions,such as single-sign-on and multi-factor authentication.

(i) Be hosted in a secure,criminal justice information services compliant cloud environment that canscale to accommodate the increasing volume and velocity of Arizona lawenforcement data needs.

(j) Meet or exceed allfederal bureau of investigation criminal justice information services securitystandards.

(k) Provide granular auditlogging for all user interactions with data.

(l) Provide a fully open,interoperable architecture and business terms that ensure that Arizona lawenforcement agencies retain full and total rights to agency data at all times.

2. $1,441,200 to distributeto the following agencies for pepperball and pepperball weapons:

(a) Cochise countysheriff's office $56,600

(b) Santa Cruz countysheriff's office $83,900

(c) Pinal county sheriff'soffice $191,500

(d) Scottsdale policedepartment

downtowndistrict $122,200

(e) Nogales policedepartment $112,800

(f) City of Peoria policedepartment $51,000

(g) Tempe police department $225,000

(h) Payson policedepartment $37,800

(i) San Luis policedepartment $38,600

(j) Navajo county sheriff'soffice $59,000

(k) City of Phoenix officeof

thepolice chief $213,900

(l) Apache junction policedepartment $64,200

(m) Tombstone marshal'soffice $33,500

(n) Goodyear policedepartment $74,900

(o) Queen Creek policedepartment $76,300

3. $312,000 to the Maricopacounty attorney's office for a one hundred eighty degree simulator for trainingde-escalation and crime recreation.

4. $600,000 to the Yavapaicounty sheriff's office to create simulations for law enforcement. The Yavapaicounty sheriff's office must make the simulations available free of charge toother law enforcement agencies in this state that have received law enforcementtraining simulators from this state.

Sec.128. Department ofeconomic security; loans; reimbursem*nt; prohibition; fiscal year 2024-2025

On or after April 1, 2025, thedepartment of economic security may use up to $25,000,000 from the budgetstabilization fund established by section 35-144, Arizona Revised Statutes, forthe purpose of providing funding for reimbursem*nt grants. Before using themonies from the budget stabilization fund, the department shall notify thedirector of the joint legislative budget committee and the director of thegovernor's office of strategic planning and budgeting. Thisappropriation must be fully reimbursed on or before September 1, 2025 and mustbe reimbursed in full as part of the closing process for fiscal year 2024-2025. Thedepartment shall notify the joint legislative budget committee of thereimbursem*nt on or before September 1, 2025. The appropriation maynot be used for additional programmatic expenditures.

Sec.129. Lump sum reductions; fiscal year 2024-2025

A. In addition to any otherappropriations made in fiscal year 2024-2025, the following state generalfund amounts are reduced from lump sum appropriations for the following budgetunits in fiscal year 2024-2025:

1. Department of administration $ (300,000)

2. Department ofadministration, division of

schoolfacilities $ (57,100)

3. Office of administrativehearings $ (34,200)

4. Arizona department ofa*griculture $ (671,500)

5. Arizona health care costcontainment system $(1,242,000)

6. Attorney general –department of law $ (839,000)

7. State board for charterschools $ (97,800)

8. Corporation commission $ (27,600)

9. Arizona state schoolsfor the deaf and the blind $ (897,000)

10. Office of economicopportunity $ (21,000)

11. Department of economicsecurity $(3,026,200)

12. State board ofeducation $ (111,200)

13. Superintendent ofpublic instruction $ (469,700)

14. State board ofequalization $ (30,000)

15. Arizona department offorestry and fire

management $ (248,600)

16. Office of the governor $ (368,100)

17. Governor's office ofstrategic planning and

budgeting $ (101,400)

18. Department of healthservices $ (719,200)

19. Arizona historicalsociety $ (83,500)

20. Prescott historicalsociety $ (35,000)

21. Department of insuranceand financial

institutions $ (222,500)

22. Arizona judiciary –supreme court $ (386,300)

23. Arizona judiciary –court of appeals $ (508,200)

24. Arizona judiciary –superior court $ (180,100)

25. Department of juvenilecorrections $(1,098,100)

26. State land department $ (148,000)

27. Legislature – house ofrepresentatives $ (664,100)

28. Legislature – jointlegislative budget

committee $ (107,800)

29. Legislature –legislative council $ (328,100)

30. Legislature – senate $ (587,300)

31. Arizona navigablestream adjudication

commission $ (6,000)

32. State real estatedepartment $ (110,400)

33. Department of revenue $(1,748,200)

34. Department of state –secretary of state $ (463,600)

35. State board of taxappeals $ (13,000)

36. Office of tourism $ (75,800)

37. Governor's office ontribal relations $ (2,400)

38. Arizona board ofregents $ (109,200)

39. Arizona stateuniversity $(10,995,800)

40. NorthernArizona university $(4,070,200)

41. Universityof Arizona – main campus $(6,562,200)

42. Universityof Arizona – health sciences center $(1,469,300)

43. Departmentof veterans' services $ (108,200)

44. Department of waterresources $ (21,500)

B. The universities underthe jurisdiction of the Arizona board of regents may not reduce moniesallocated from operating lump sum appropriations to the Arizona stateuniversity school of civic and economic thought and leadership, the northernArizona university economic policy institute and the university of Arizonacenter for the philosophy of freedom by more than 3.45 percent of the totalamount allocated to the school, institute or center.

Sec.130. Appropriations; fiscal year 2024-2025

In addition to any otherappropriations made in fiscal year 2024-2025, the following amounts areappropriated from the state general fund in fiscal year 2024-2025 to thefollowing entities for following purposes:

1. $1,000,000 to thedepartment of administration to distribute to the Navajo Nation for use inestablishing electrical connections for individuals without access toelectricity.

2. $1,000,000 to theArizona health care cost containment system administration to distribute to entities that provide case management forpersons with serious mental illness. The Arizonahealth care cost containment system administration shall distributethese monies in order to provide a wage increase to providers with less thanfive thousand members.

3. $500,000 to the Arizonacommerce authority for grants to business centers and entrepreneur supportorganizations that provide business training, business coaching and technicalassistance to underserved small business owners.

4. $250,000 to thedepartment of economic security for the distribution of food to low-incomepersons living on tribal reservations in this state.

5. $500,000 to thedepartment of economic security to distribute to the Navajo Nation for women'sshelter and social services.

6. $500,000 to thedepartment of economic security to distribute to the Navajo Nation for youthprograms.

7. $500,000 to thedepartment of economic security to distribute to a nonprofit organization inPinal county that provides nutrition, housing and rental assistance programs.

8. $2,000,000 to thedepartment of economic security for area agencies on aging.

9. $1,000,000 to thedepartment of economic security to distribute to the Pascua Yaqui tribalgovernment for social services programs.

10. $1,000,000 to thedepartment of economic security to distribute to nonprofit organizationslocated in Cochise county that provide food distribution services for low-incomeindividuals.

11. $1,000,000 to thedepartment of economic security for job training and life skills services fordevelopmentally disabled individuals in areas outside Maricopa and Pimacounties.

12. $1,000,000 to thedepartment of education high school centers for success.

13. $2,000,000 to thedepartment of education to distribute to entities that provide after schoolprograms to low-income individuals.

14. $2,000,000 to thedepartment of education for K-12 mentalhealth telehealth pilot programs that serve individuals outside Maricopa andPima counties.

15. $1,000,000 to thedepartment of environmental quality to conduct a zero-emission heavy-dutyeight ton pilot program.

16. $500,000 to thedepartment of health services to distribute to a nonprofit organization thatserves low-income and underserved women and their families to accesspreventive health care services.

17. $500,000 to thedepartment of health services to distribute to nonprofit organizations thatprovide counseling services for parents whose children have died as a result ofviolence.

18. $1,000,000 to thedepartment of health services to distribute to nonprofit organizations thatprovide counseling and community services in southern Arizona.

19. $1,000,000 to thedepartment of health services for senior health promotion and coordination inSanta Cruz county.

20. $500,000 to thedepartment of health services for heat mitigation programs in southern Arizona.

21. $200,000 to the Arizonadepartment of homeland security for cybersecurity programs.

22. $1,000,000 to theArizona board of regents for onetime teachers academy funding.

23. $1,000,000 to thesecretary of state for onetime operating expenses.

24. $500,000 to thedepartment of veterans' services to distribute to a veterans center thatprovides referral services for employment and job training, housing and utilityassistance.

Sec.131. Phoenix convention center; allocation; fiscal year 2024-2025

Pursuant to section 9-602, ArizonaRevised Statutes, $25,998,700 of state general fund revenue is allocated infiscal year 2024-2025 to the Arizona convention center development fundestablished by section 9-601, Arizona Revised Statutes.

Sec.132. Rio Nuevo multipurpose facility district; estimated distribution;fiscal year 2024-2025

Pursuant to section 42-5031,Arizona Revised Statutes, a portion of the state transaction privilege taxrevenues will be distributed to a multipurpose facilitydistrict. The Rio Nuevo multipurpose facility district is estimatedto receive $17,000,000 in fiscal year 2024-2025. The actual amount of thedistribution will be made pursuant to section 42-5031, Arizona RevisedStatutes.

Fund Balance Transfers

Sec.133. Fund balancetransfers; fiscal year 2023-2024

Notwithstanding any other law, on orbefore June 30, 2024, the following amounts from the following fund sources aretransferred to the state general fund for the purposes of providing adequatesupport and maintenance for agencies of this state:

1. Department ofadministration

Certificate of participationfund $ 2,550,000

Stateemployee travel reduction fund $ 900,000

Stateweb portal fund $ 4,000,000

Capitolmall consolidation fund $ 700,000

Fireincident management fund $ 6,100,000

Constructioninsurance fund $ 8,100,000

Cyberrisk insurance fund $ 11,200,000

Riskmanagement revolving fund $70,000,000

Automationprojects fund – department

ofadministration subaccount $ 7,000,000

The amount transferred from the automation project fund –department of administration subaccount to the state general fund in fiscalyear 2023-2024 reflects unspent monies for business one stop portaldevelopment.

Automationprojects fund – department

ofrevenue subaccount $ 1,300,000

2. Arizona health care costcontainment system

Prescription drug rebate fund- state $46,000,000

3. Board of athletictraining

Athletic training fund $ 250,000

4. Attorneygeneral–department of law

Anti-racketeering revolvingfund–operations $ 2,600,000

Anti-racketeering revolvingfund-

pass-through $10,000,000

Collection enforcementrevolving fund-

operating $ 212,500

5. Barbering andcosmetology board

Barbering and cosmetologyfund $12,100,000

6. Board of behavioralhealth examiners

Board of behavioral healthexaminers fund $ 4,200,000

7. State board ofchiropractic examiners

Board of chiropracticexaminers fund $ 500,000

8. Arizona commerceauthority

Arizona competes fund $55,700,000

9. Corporation commission

Utility regulation revolvingfund $ 2,125,000

Securities regulatory andenforcement

fund $25,000,000

10. State department ofcorrections

Corrections fund $ 8,000,000

Alcohol abuse treatment fund $ 2,000,000

Transition program fund $ 4,200,000

Community correctionsenhancement fund $ 117,500

11. Arizona criminaljustice commission

Criminal justice enhancementfund $ 800,000

Fingerprint clearance cardfund $ 700,000

12. State board of dentalexaminers

Dental board fund $ 2,000,000

13. Office of economicopportunity

Office of economicopportunity

operations fund $ 1,000,000

14. Departmentof economic security

Familycaregiver grant program fund $ 700,000

Specialadministration fund $ 4,000,000

Economicsecurity capital investments fund $ 500,000

Long-termcare system fund $ 9,314,000

15. Departmentof education

Adultworkforce diploma program fund $ 3,000,000

Communitycollege adult education

workforcedevelopment program fund $ 8,900,000

Computerscience professional

developmentprogram fund $ 5,000,000

16. Department ofenvironmental quality

Air quality fund $ 2,300,000

Underground storage tankrevolving fund $20,000,000

Emissions inspection fund $ 5,000,000

Hazardous waste managementfund $ 900,000

Emergency response fund $ 500,000

17. Arizona exposition andstate fair board

Arizona exposition and statefair fund $ 5,000,000

18. Board of fingerprinting

Board of fingerprinting fund $ 1,200,000

19. Arizona game and fishdepartment

Watercraft licensing fund $ 800,000

20. Department of healthservices

Disease control research fund $ 1,300,000

Prescription drug rebate fund $ 1,000,000

Health services lotterymonies fund $ 3,700,000

21. Industrial commissionof Arizona

Administrative fund $ 2,400,000

Special fund $ 900,000

22. Departmentof insurance and financial

institutions

Financialservices fund $19,600,000

Automobiletheft authority fund $ 8,800,000

Departmentreceivership revolving fund $ 800,000

23. Departmentof juvenile corrections

Criminaljustice enhancement fund $ 900,000

Indirectcost recovery fund $ 206,000

24. Stateland department

Riskmanagement fund $ 343,000

IGAand ISA fund $ 24,000

Trustland management fund $34,000,000

25. Department of liquor licenses and control

Liquor licenses fund $ 400,000

License fees – audit – enforcement

surcharges fund - multiple complaints $ 170,000

26. Boardof massage therapy

Boardof massage therapy fund $ 600,000

27. Arizonamedical board

Arizonamedical board fund $ 9,300,000

28. Statemine inspector

Aggregatemining reclamation fund $ 38,500

29. Naturopathicphysicians medical board

Naturopathicphysicians medical board fund $ 1,700,000

30. Arizonastate board of nursing

Boardof nursing fund $ 9,400,000

31. Boardof occupational therapy examiners

Occupationaltherapy fund $ 900,000

32. Stateboard of optometry

Boardof optometry fund $ 387,100

33. Arizonaboard of osteopathic examiners in

medicineand surgery

Arizonaboard of osteopathic examiners

inmedicine and surgery fund $ 2,800,000

34. Arizonastate board of pharmacy

Arizonastate board of pharmacy fund $ 6,300,000

35. Boardof physical therapy

Boardof physical therapy fund $ 680,000

36. Stateboard of psychologist examiners

Boardof psychologist examiners fund $ 1,800,000

37. Department of public safety

Fingerprint clearance card fund $ 3,900,000

Department of public safety licensing

fund $ 85,000

Gang and immigration teamenforcement

Mission border security and law

Enforcementsubaccount $ 1,000,000

Recordsprocessing fund $ 200,000

Publicsafety equipment fund $ 500,000

38. Residentialutility consumer office

Residentialutility consumer office

revolvingfund $ 425,000

39. Stateboard of technical registration

Technicalregistration fund $ 5,600,000

40. Department of transportation

Economic strength project fund $ 600,000

Highway damage recovery account $ 1,000,000

State aviation fund $15,000,000

Statehighway fund $26,000,000

The amounttransferred from the state highway fund established by section 28-6991,Arizona Revised Statutes, to the state general fund in fiscal year 2023-2024reflects interest income earned from investment of monies in the state highwayfund from a portion of revenues derived from the tax levied by title 42,chapter 5, articles 1 and 5, Arizona Revised Statutes, that were transferred tothe state highway fund by Laws 2022, chapter 321, section 20, subsection A,paragraph 2.

Abandoned vehicle administration fund $ 400,000

Sharedlocation and advertising agreements

expensefund $ 75,100

Motorvehicle dealer enforcement fund $ 300,000

Highwayexpansion and extension loan

programfund $ 3,900

Arizonahighways magazine fund $ 500,000

41. Statetreasurer

Statetreasurer's operating fund $ 900,000

Arizonapublic school credit

enhancementfund $ 3,000,000

42. Arizonastate veterinary medical examining board

Veterinarymedical examining board fund $ 1,700,000

43. Waterinfrastructure finance authority of Arizona

Watersupply development revolving fund $59,700,000

Of the amount transferred from the water supply developmentrevolving fund established by section 49-1271, Arizona Revised Statutes,to the state general fund in fiscal year 2023-2024, $8,100,000 reflectsinterest income earned from investment of monies in the water supply developmentrevolving fund.

Long-termwater augmentation fund $97,300,000

Of theamount transferred from the long-term water augmentation fund established bysection 49-1302, Arizona Revised Statutes, to the state general fund infiscal year 2023-2024, $19,300,000 reflects interest income earned frominvestment of monies in the long-term water augmentation fund.

44. Departmentof water resources

Temporarygroundwater and irrigation

efficiencyprojects fund $ 600,000

Assuredand adequate water supply

administrationfund $ 200,000

Arizonawater protection fund $ 1,000,000

Sec.134. Fund balance transfer;state highway fund; fiscal year 2024-2025

A. Notwithstanding anyother law, on or before June 30, 2025, $18,700,000 is transferred from statehighway fund established by section 28-6991, Arizona Revised Statutes, to thestate general fund in fiscal year 2024-2025 for the purpose of providingadequate support and maintenance for agencies of this state.

B. The amount transferredfrom the state highway fund in subsection A of this section reflects interestincome earned from investment of monies in the state highway fund from aportion of revenues derived from the tax levied by title 42, chapter 5, articles1 and 5, Arizona Revised Statutes, that were transferred to the state highwayfund by Laws 2022, chapter 321, section 20, subsection A, paragraph 2.

Sec.135. Fund balance transfer;state highway fund; vehicle license tax; fiscal year 2024-2025

Notwithstanding any other law,$2,000,000 received in fiscal year 2024-2025 pursuant to title 28,chapter 16, article 3, Arizona Revised Statutes, relating to vehicle licensetax, for distribution to the state highway fund pursuant to section 28-6538,subsection A, paragraph 1, Arizona Revised Statutes, shall be deposited in thestate general fund. The deposit may be made in even monthly installments.

Sec.136. Fund balance transfer; airquality fund; fiscal year 2024-2025

Notwithstanding any other law, on orbefore June 30, 2025, $7,200,000 is transferred from the air quality fundestablished by section 49-551, Arizona Revised Statutes, to the water qualityfee fund established by section 49-210 in fiscal year 2024-2025.

Sec.137. Fund balance transfer;Arizona correctional industries revolving fund; fiscal year 2024-2025

Notwithstanding any other law, on orbefore June 30, 2025, $11,491,800 is transferred from the Arizona correctionalindustries revolving fund established pursuant to section 41-1624, ArizonaRevised Statutes, to the state general fund in fiscal year 2024-2025.

Sec.138. Fund balance transfers; automation projects fund; fiscal year2024-2025

A. The sum of $3,396,000 istransferred from the state general fund in fiscal year 2024-2025 for deposit inthe medicaid enterprise system modernization subaccount in the automationprojects fund established pursuant to section 41-714, Arizona Revised Statutes,to replace the medicaid enterprise system mainframe.

B. The sum of $2,421,200 istransferred from the personnel division fund established pursuant to section41-750, Arizona Revised Statutes, in fiscal year 2024-2025 for deposit in thehuman resources information system subaccount in the automation projects fundestablished pursuant to section 41-714, Arizona Revised Statutes, for thereplacement of the human resources information system.

C. The following amountsare transferred from the following funds in fiscal year 2024-2025 for depositin the department of revenue subaccount in the automation projects fundestablished pursuant to section 41-714, Arizona Revised Statutes, toimplement the integrated tax system modernization project:

1. $11,847,300 from thestate general fund.

2. $7,609,500 from thedepartment of revenue integrated tax system project fund established by section42-5041, Arizona Revised Statutes.

D. The transfers into theautomation projects fund established by section 41-714, Arizona RevisedStatutes, as outlined in this section are not appropriations out of theautomation project fund. Only direct appropriations out of theautomation projects fund are appropriations.

PaymentDeferrals

Sec.139. Supplemental appropriation; attorney general; state department of corrections; opioid remediation; fiscal year 2023-2024; exemption

A. In addition to any otherappropriation made in fiscal year 2023-2024, the sum of $75,000,000 isappropriated from the consumer remediation subaccount of the consumerrestitution and remediation revolving fund established by section 44-1531.02,Arizona Revised Statutes, in fiscal year 2023-2024 to the attorney general.This amount consists of monies deposited in the subaccount pursuant to opioidclaims-related litigation or settlements.

B. On or before June 20,2024, the attorney general shall transfer the monies appropriated in subsectionA of this section to the state department ofcorrections opioid remediation fund established pursuant to section 35-142,Arizona Revised Statutes.

C. The state department ofcorrections shall use the monies in the state department of corrections opioidremediation fund only for past and current department costs for care,treatment, programs and other expenditures for individuals with opioid usedisorder and any co-occurring substance use disorder or mental healthconditions or for any other approved purposes as prescribed in a court order, asettlement agreement or the one Arizona distribution of opioid settlement fundsagreement that is entered into by this state and other parties to the opioidlitigation.

D. Except as provided insubsection C of this section, the attorney general shall not impose anyconditions on the transfer of the monies into the state department ofcorrections opioid remediation fund.

E. If the attorney generaldoes not transfer the full amount specified in subsection A of this section onor before June 20, 2024, the general accounting office of the department ofadministration shall directly transfer the amount from the consumer remediationsubaccount of the consumer restitution and remediation revolving fundestablished by section 44-1531.02, Arizona Revised Statutes, to the statedepartment of corrections opioid remediation fund.

F. The appropriation madein subsection A of this section is exempt from the provisions of section35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

Sec.140. Appropriation; attorney general; state department of corrections; opioid remediation; fiscal year 2024-2025; exemption

A. In addition to any otherappropriation made in fiscal year 2024-2025, the sum of $40,000,000 isappropriated from the consumer remediation subaccount of the consumerrestitution and remediation revolving fund established by section 44-1531.02,Arizona Revised Statutes, in fiscal year 2024-2025 to the attorney general.This amount consists of monies deposited in the subaccount pursuant to opioidclaims-related litigation or settlements.

B. On or before July3,2024, or, if sufficient monies are notavailable on July 3, 2024, within three calendar days after sufficient moniesbecome available, the attorney general shall transferthe monies appropriated in subsection A of this section to the state departmentof corrections opioid remediation fund established pursuant to section 35-142,Arizona Revised Statutes.

C. The state department ofcorrections shall use the monies in the state department of corrections opioidremediation fund only for past and current department costs for care,treatment, programs and other expenditures for individuals with opioid usedisorder and any co-occurring substance use disorder or mental healthconditions or for any other approved purposes as prescribed in a court order, asettlement agreement or the one Arizona distribution of opioid settlement fundsagreement that is entered into by this state and other parties to the opioidlitigation.

D. Except as provided insubsection C of this section, the attorney general shall not impose anyconditions on the transfer of the monies into the state department ofcorrections opioid remediation fund.

E. If the attorney generaldoes not transfer the full amount specified in subsection A of this section onor beforethe date specified in subsection B of this section, the generalaccounting office of the department of administration shall directly transferthe amount from the consumer remediation subaccount of the consumer restitutionand remediation revolving fund established by section 44-1531.02, ArizonaRevised Statutes, to the state department of corrections opioid remediationfund.

F. The appropriation madein subsection A of this section is exempt from the provisions of section35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

Sec.141. Appropriation; attorney general; department of emergency and military affairs; opioid remediation; fiscal year 2024-2025;exemption

A. In addition to any otherappropriation made in fiscal year 2024-2025, the sum of $3,000,000 isappropriated from the consumer remediation subaccount of the consumerrestitution and remediation revolving fund established by section 44-1531.02,Arizona Revised Statutes, in fiscal year 2024-2025 to the attorney general.This amount consists of monies deposited in the subaccount pursuant to opioidclaims-related litigation or settlements.

B. On or before July3,2024, or, if sufficient monies are notavailable on July 3, 2024, within three calendar days after sufficient moniesbecome available, the attorney general shall transferthe monies appropriated in subsection A of this section to the department ofemergency and military affairs opioid remediation fund established pursuant tosection 35-142, Arizona Revised Statutes.

C. The department ofemergency and military affairs shall use the monies in the department ofemergency and military affairs opioid remediation fund only for approvedpurposes as prescribed in a court order, a settlement agreement or the oneArizona distribution of opioid settlement funds agreement that is entered intoby this state and other parties to the opioid litigation.

D. Except as provided insubsection C of this section, the attorney general shall not impose anyconditions on the transfer of the monies into the department of emergency andmilitary affairs opioid remediation fund.

E. If the attorney generaldoes not transfer the full amount specified in subsection A of this section onor before the date specified in subsection B of this section, the generalaccounting office of the department of administration shall directly transferthe amount from the consumer remediation subaccount of the consumer restitutionand remediation revolving fund established by section 44-1531.02, ArizonaRevised Statutes, to the department of emergency and military affairs opioidremediation fund.

F. The appropriation madein subsection A of this section is exempt from the provisions of section35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

Sec.142. Appropriation; attorney general; department of health services; opioid remediation; fiscal year 2024-2025; exemption

A. In addition to any otherappropriation made in fiscal year 2024-2025, the sum of $1,000,000 isappropriated from the consumer remediation subaccount of the consumerrestitution and remediation revolving fund established by section 44-1531.02,Arizona Revised Statutes, in fiscal year 2024-2025 to the attorney general.This amount consists of monies deposited in the subaccount pursuant to opioidclaims-related litigation or settlements.

B. On or before July3,2024, or, if sufficient monies are notavailable on July 3, 2024, within three calendar days after sufficient moniesbecome available, the attorney general shall transferthe monies appropriated in subsection A of this section to the department ofhealth services opioid remediation fund established pursuant to section 35-142,Arizona Revised Statutes.

C. The department of healthservices shall use the monies in the department of health services opioidremediation fund only for approved purposes as prescribed in a court order, asettlement agreement or the one Arizona distribution of opioid settlement fundsagreement that is entered into by this state and other parties to the opioidlitigation.

D. Except as provided insubsection C of this section, the attorney general shall not impose anyconditions on the transfer of the monies into the department of health servicesopioid remediation fund.

E. If the attorney generaldoes not transfer the full amount specified in subsection A of this section onor before the date specified in subsection B of this section, the generalaccounting office of the department of administration shall directly transferthe amount from the consumer remediation subaccount of the consumer restitutionand remediation revolving fund established by section 44-1531.02, ArizonaRevised Statutes, to the department of health services opioid remediation fund.

F. The appropriation madein subsection A of this section is exempt from the provisions of section35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

Sec.143. Reduction inschool district state aid apportionment in fiscal year 2024-2025; appropriationin fiscal year 2025-2026

A. In addition to any otherappropriation reductions made in fiscal year 2024-2025, the department ofeducation shall defer until after June 30, 2025 but not later than July 12,2025 $800,727,700 of the basic state aid and additional state aid entitlementthat otherwise would be apportioned to school districts during fiscal year2024-2025 pursuant to section 15-973, Arizona Revised Statutes. Thefunding deferral required by this subsection does not apply to charter schoolsor to school districts with a student count of less than four thousandpupils. The department of education shall make the deferral byreducing the apportionment of state aid for each month in the fiscal year bythe same amount.

B. Inaddition to any other appropriations made in fiscal year 2025-2026, the sum of$800,727,700 is appropriated from the state general fund in fiscal year2025-2026 to the department of education and the superintendent of publicinstruction for basic state aid and additional state aid entitlement for fiscalyear 2025-2026. This appropriation shall be disbursed after June 30,2025 but not later than July 12, 2025 to the several counties for the schooldistricts in each county in amounts equal to the reductions in apportionment ofbasic state aid and additional state aid that are required pursuant tosubsection A of this section for fiscal year 2024-2025.

C. School districts shallinclude in the revenue estimates they use for computing their tax rates forfiscal year 2024-2025 the monies they will receive pursuant to subsection B ofthis section.

Statewide Adjustments

Sec.144. Appropriations; operating adjustments

2024-25

1. Employerhealth insurance

contribution reduction $(94,363,000)

Fund sources:

State general fund $(72,766,200)

Otherfunds (21,596,800)

2. Employer health insurance

contributionincrease $ 200,000,000

Fund sources:

Stategeneral fund $ 140,000,000

Otherfunds 60,000,000

3. State fleet rate reduction $(13,648,900)

Fund sources:

Stategeneral fund $ (8,195,100)

Otherfunds (5,453,800)

4. State fleet rate increase $ 4,924,000

Fund sources:

State general fund $ 3,299,000

Other funds 1,625,000

5. Humanresources information

systemcharge reduction $(12,654,000)

Fund sources:

Stategeneral fund $ (8,009,300)

Otherfunds (4,644,700)

6. Arizona financial information

system adjustment $ (1,673,700)

Fund sources:

State general fund $ (834,000)

Other funds (839,700)

7. Agency retirement adjustment $ 7,680,000

Fund sources:

Stategeneral fund $ 7,180,000

Otherfunds 500,000

8. Agency rent adjustment $ 160,000

Fund sources:

Otherfunds $ 160,000

Employerhealth insurance contribution reduction

The amount appropriated is for aonetime employer contribution rate reduction for employee health insurance infiscal year 2024-2025. The joint legislative budget committee staff,in consultation with the governor's office of strategic planning and budgetingstaff, shall determine and the department of administration shall allocate toeach agency or department an amount for the health insurance contributionadjustment. The joint legislative budget committee staff shall alsodetermine and the department of administration shall allocate adjustments, asnecessary, in expenditure authority to implement the reduction in employerhealth insurance contribution rates. The joint legislative budgetcommittee staff shall use the overall allocation of state general fund andappropriated tuition monies for each university in determining thatuniversity's specific adjustment.

Employerhealth insurance contribution increase

The amount appropriated is for aonetime employer contribution rate increase for employee health insurance infiscal year 2024-2025. The joint legislative budget committee staff,in consultation with the governor's office of strategic planning and budgetingstaff, shall determine and the department of administration shall allocate toeach agency or department an amount for the health insurance contributionadjustment. The joint legislative budget committee staff shall alsodetermine and the department of administration shall allocate adjustments, asnecessary, in expenditure authority to implement the increase in employerhealth insurance contribution rates. The joint legislative budgetcommittee staff shall use the overall allocation of state general fund andappropriated tuition monies for each university in determining thatuniversity's specific adjustment.

State fleet rate reduction

The amountappropriated is for a onetime state fleet rate reduction in fiscal year2024-2025. The joint legislative budget committee staff, in consultation withthe governor's office of strategic planning and budgeting staff, shalldetermine and the department of administration shall allocate to each agency ordepartment an amount for the state fleet rate reduction. The joint legislativebudget committee staff shall also determine and the department ofadministration shall allocate adjustments, as necessary, in expenditureauthority for the state fleet rate reduction.

Statefleet rate increase

Theamount appropriated is for a onetime state fleet rate increase in fiscal year 2024-2025.The joint legislative budget committee staff, in consultation with thegovernor's office of strategic planning and budgeting staff, shall determineand the department of administration shall allocate to each agency ordepartment an amount for the state fleet rate increase. The joint legislativebudget committee staff shall also determine and the department ofadministration shall allocate adjustments, as necessary, in expenditureauthority for the state fleet rate increase.

Humanresources information system replacement charge reduction

The amount appropriated is for areduction of the human resources information system replacement charge infiscal year 2024-2025. The joint legislative budget committee staff, inconsultation with the governor's office of strategic planning and budgetingstaff, shall determine and the department of administration shall allocate toeach agency or department an amount for the human resources information systemreplacement charge reduction. The joint legislative budget committeestaff shall also determine and the department of administration shall allocateadjustments, as necessary, in expenditure authority to implement the reductionin the human resources information system replacement charge. The reduction inthe human resources information system replacement charge shall be based oneach state fund's proportional share of payments to the personnel division fundestablished pursuant to section 41-750, Arizona Revised Statutes.

Arizona financial information system adjustments

The amount appropriated is for areduction of the Arizona financial information system upgrade charge in fiscalyear 2024-2025. The joint legislative budget committee staff, in consultationwith the governor's office of strategic planning and budgeting staff, shalldetermine and the department of administration shall allocate to each agency ordepartment an amount for the Arizona financial information system upgradecharge reduction. The joint legislative budget committee staff shall also determineand the department of administration shall allocate adjustments, as necessary,in expenditure authority to implement the reduction in the Arizona financialinformation system upgrade charge.

Agencyretirement adjustment

The amount appropriated is for retirementadjustments in fiscal year 2024-2025. The joint legislative budget committeestaff, in consultation with the governor's office of strategic planning andbudgeting staff, shall determine and the department of administration shallallocate to each agency or department an amount for the agency retirementadjustments. The joint legislative budget committee staff shall also determine,and the department of administration shall allocate adjustments, as necessary,in expenditure authority to implement the agency retirement adjustments.

Agency rent adjustment

Theamount appropriated is for agency rent adjustments for agencies relocating toand within state-owned and lease-purchase buildings in fiscal year 2024-2025.The joint legislative budget committee staff, in consultation with thegovernor's office of strategic planning and budgeting staff, shall determineand the department of administration shall allocate to each agency ordepartment an amount for the agency rent adjustment. The joint legislativebudget committee staff shall also determine, and the department ofadministration shall allocate adjustments, as necessary, in expenditureauthority to allow implementation of the agency rent adjustments.

Sec.145. Department of law; general agency counsel charges; fiscal year2024-2025

Pursuantto section 41-191.09, Arizona Revised Statutes, the following state agenciesand departments are charged the following amounts in fiscal year 2024-2025 forgeneral agency counsel provided by the department of law:

1. Department ofadministration $127,700

2. Office of administrativehearings $ 3,000

3. Arizona arts commission $ 3,100

4. Citizens clean electionscommission $ 2,700

5. State department ofcorrections $ 2,000

6. Arizona criminal justicecommission $ 8,700

7. Arizona state schoolsfor the deaf

and the blind $100,200

8. Commission for the deafand the hard

of hearing $ 4,100

9. Arizona early childhooddevelopment and

healthboard $47,100

10. Department of education $132,000

11. Department of emergencyand military affairs $30,000

12. Department ofenvironmental quality $135,600

13. Arizona exposition andstate fair board $20,900

14. Arizona department of forestryand fire

management $13,400

15. Department of gaming $37,300

16. Department of healthservices $173,800

17. Arizona historicalsociety $ 700

18. Arizona department ofhousing $19,300

19. Department of insuranceand financial

institutions $13,800

20. Department of juvenilecorrections $ 9,400

21. State land department $ 2,100

22. Department of liquorlicenses and control $11,400

23. Arizona state lotterycommission $24,800

24. Arizona state parksboard $45,800

25. State personnel board $ 600

26. Arizona pioneers' home $12,100

27. Department of publicsafety $677,400

28. Arizona board ofregents $ 1,800

29. Arizona stateretirement system $69,100

30. Department of revenue $ 4,900

31. Department of state —secretary of state $ 1,800

32. State treasurer $ 9,200

33. Department of veterans'services $52,700

Fiscal Year 2025-2026 Appropriations

Sec.146. Appropriation; new schoolfacilities fund; use; fiscal year 2025-2026

The sum of $45,077,100 is appropriatedfrom the state general fund in fiscal year 2025-2026 for a onetime deposit inthe new school facilities fund established by section 41-5741, Arizona RevisedStatutes. The division of school facilities within the department ofadministration shall use the monies only for facilities that will beconstructed for school districts that received final approval from the divisionof school facilities within the department of administration on or beforeDecember15, 2023.

ReportingRequirements and Definitions

Sec.147. Agency spending and encumbrances; quarterly report; fiscal year2024-2025

Within fifteendays of the last day of each quarter in fiscal year 2024-2025, the departmentof administration shall report to the director of the joint legislative budgetcommittee and the director of the governor's office of strategic planning andbudgeting the year-to-date expenditures and year-to-date encumbrances foroperating and capital spending from the state general fund and other agencyfunds in fiscal year 2024-2025. The information shall be separately delineatedby agency, budget fiscal year and fund source, and shall classify eachappropriation by agency lump sum, special line item, or project.

Sec.148. COVID-related expenditures; reporting requirements; intent

A. Within forty-fivedays after the last day of each calendar quarter through June 30, 2027, theoffice of the governor shall report to the president of the senate, the speakerof the house of representatives, the chairpersons of the senate and house ofrepresentatives appropriations committees and the director of the jointlegislative budget committee the total planned allocations and actualexpenditures from the coronavirus state fiscal recovery fund and thecoronavirus capital projects fund as appropriated by section 9901 of theAmerican rescue plan act of 2021 (P.L.117-2).

B. Within forty-fivedays after the last day of each calendar quarter through June 30, 2027, thesuperintendent of public instruction shall report to the president of thesenate, the speaker of the house of representatives, the chairpersons of thesenate and house of representatives appropriations committees and the directorof the joint legislative budget committee the total planned allocations andactual expenditures of monies allocated to the superintendent of publicinstruction from the elementary and secondary school emergency relief fund asappropriated by section 2001 of the American rescue plan act of 2021 (P.L.117-2).

C. Reports requiredpursuant to this section shall delineate expenditures by agency and program andinclude descriptions of the purpose of the expenditures.

D. The legislature intendsthat the executive branch of state government report on its planned and actualuse of any major additional federal aid to this state through federallegislation enacted by the end of fiscal year 2024-2025. The timingand frequency of these reports should be the same as required by subsections Aand B of this section. The chairperson and vice chairperson of the jointlegislative budget committee may provide recommendations to the executive branchconcerning federal legislation that would qualify under this subsection.

Sec.149. Legislative intent; expenditure reporting

The legislature intends that alldepartments, agencies and budget units receiving appropriations under the termsof this act continue to report actual, estimated and requested expenditures bybudget programs and budget classes in a format that is similar to the budgetprograms and budget classes used for budgetary purposes in prior years. Adifferent format may be used if deemed necessary to implement section 35-113,Arizona Revised Statutes, agreed to by the director of the joint legislativebudget committee and incorporated into the budget preparation instructionsadopted by the governor's office of strategic planning and budgeting pursuantto section 35-112, Arizona Revised Statutes.

Sec.150. FTE positions; reporting; definition

Full-time equivalent (FTE) positionscontained in this act are subject to appropriation. The director ofthe department of administration shall account for the use of all appropriatedand nonappropriated FTE positions, excluding those in the universities. Thedirector of the department of administration shall submit the fiscal year2024-2025 report on or before October 1, 2025 to the director of the jointlegislative budget committee. The report shall compare the level ofappropriated FTE usage in each fiscal year to the appropriatedlevel. For the purposes of this section, "FTE positions"means the total number of hours worked, including both regular and overtimehours as well as hours taken as leave, divided by the number of hours in a workyear. The director of the department of administration shall notifythe director of a budget unit if the budget unit's appropriated FTE usage hasexceeded its number of appropriated FTE positions. Each universityshall report to the director of the joint legislative budget committee in amanner comparable to the department of administration reporting.

Sec.151. Privately funded FTE positions; reporting; definition

A. On or before October 31in 2024 and 2025, each budget unit of this state shall submit a report to thestaff of the joint legislative budget committee and the governor's office ofstrategic planning and budgeting if the budget unit had any privately fundedemployees in fiscal year 2023-2024 or 2024-2025. The report shallinclude the title, duties and salary compensation of each privately fundedemployee.

B. For the purposes of thissection, "privately funded" means salary compensation paid for inwhole or in part with monies from sources other than this state, a politicalsubdivision of this state or the federal government.

Sec.152. Filled FTE positions; reporting

On or before October 1, 2024, eachagency, including the judiciary and universities, shall submit a report to thedirector of the joint legislative budget committee on the number of filledappropriated and nonappropriated FTE positions, by fund source, as of September1, 2024.

Sec.153. Transfer of spending authority

The department of administration shallreport monthly to the director of the joint legislative budget committee anytransfers of spending authority made pursuant to section 35-173, subsection C,Arizona Revised Statutes, during the prior month.

Sec.154. Interim reporting requirements

A. State general fundrevenue for fiscal year 2023-2024, including a beginning balance of$2,527,200,000 and other onetime revenues, is forecasted to be $17,786,100,000.

B. State general fundrevenue for fiscal year 2024-2025, including onetime revenues, is forecasted tobe $16,282,100,000.

C. State general fundrevenue for fiscal year 2025-2026, including onetime revenues, is forecasted tobe $16,467,300,000. State general fund expenditures for fiscal year2025-2026 are forecasted to be $16,439,600,000.

D. State general fundrevenue for fiscal year 2026-2027, including onetime revenues, is forecasted tobe $17,146,700,000. State general fund expenditures for fiscal year2026-2027 are forecasted to be $17,131,600,000.

E. Onor before September 15, 2024, the executive branch shall provide to the jointlegislative budget committee a preliminary estimate of the fiscal year2023-2024 state general fund ending balance. The estimate shallinclude projections of total revenues, total expenditures and an endingbalance. The department of administration shall continue to providethe final report for the fiscal year in its annual financial report pursuant tosection 35-131, Arizona Revised Statutes.

F. Based on the informationprovided by the executive branch, the staff of the joint legislative budgetcommittee shall report to the joint legislative budget committee on or beforeOctober 15, 2024 whether the fiscal year 2024-2025 revenues and ending balanceare expected to change by more than $50,000,000 from the budgetedprojections. The joint legislative budget committee staff may maketechnical adjustments to the revenue and expenditure estimates in this sectionto reflect other bills enacted into law. The executive branch mayalso provide its own estimates to the joint legislative budget committee on orbefore October 15, 2024.

Sec.155. Definition

For the purposes of this act,"*" means this appropriation is a continuing appropriation and isexempt from the provisions of section 35-190, Arizona Revised Statutes,relating to lapsing of appropriations.

Sec.156. Definition

For the purposes of this act,"expenditure authority" means that the fund sources are continuouslyappropriated monies that are included in the individual line items ofappropriations.

Sec.157. Definition

For the purposes of this act,"review by the joint legislative budget committee" means a review bya vote of a majority of a quorum of the members of the joint legislative budgetcommittee.

HB2897 - 562R - H Ver (2024)
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