Assigned to GES & APPROP FOR COMMITTEE

ARIZONA STATE SENATE

Phoenix, Arizona

FACT SHEET FOR H.B. 2608
appropriation; flood control.

Purpose

Appropriates $4.2 million from the general fund in FY 1999-2000 to the Department of Military and Emergency Affairs (DEMA) to pay for the local share of flood relief incurred due to the January 1993 tropical winter storm.

Background

The estimated total storm damage, resulting from the January 1993 tropical winter storm that impacted 13 of Arizona's counties, is $146 million. Pursuant to the federal Disaster Relief and Emergency Assistance Act, the federal, state and local shares for damage assistance are 75 percent, 15 percent and 10 percent respectively.

In 1994, the Legislature approved H.B. 2192 (Laws 1994, Chapter 224) which declared the Legislature's intent to pay the 10 percent local share along with the 15 percent state share. Therefore, the state's total share, 25 percent, was estimated to equal $36.5 million. According to the Joint Legislative Budget Committee, monies equaling this amount were allocated to DEMA for the 1993 flood relief effort from FY 1992-1993 though FY 1998-1999.

As part of this allocation, Laws 1996, Chapter 7, Fifth Special Session, appropriated $5 million for FY 1996-1997 ($4,226,000 from the general fund and $574,000 from the State Highway Fund) to DEMA for the 1993 Flood Relief - Local Share Special Line Item. Although the appropriations were exempt from the provisions of lapsing of appropriations, the authorizing legislation specified that for FY 1995-1996 and FY 1996-1997 all monies remaining unexpended and unencumbered on June 30, 1998 were to revert to the general fund. According to DEMA, with the exception of $80,000 that had been expended, all FY 1996-1997 appropriations reverted on June 30, 1998; however the state's liability for the state and local share remains.

H.B. 2608 appropriates $4.2 million from the general fund to DEMA to replace those monies appropriated for FY 1996-1997 for the 1993 Flood Relief - Local Share Special Line Item, which reverted to the general fund on June 30, 1998. The $4.2 million reflects a reduction due to the $80,000 which was expended prior to reversion and a reduction of approximately $620,000 in project costs.

FACT SHEET H.B. 2608 Page

Provisions

1. Appropriates $4.2 million in FY 1999-2000 from the general fund to DEMA to pay the local share of flood relief (10 percent) for political subdivisions' costs for reconstruction and repair projects resulting from the tropical winter storm of January, 1993. Exempts the appropriation from the provision relating to lapsing of appropriations.

2. Stipulates payment of the 10 percent local share is subject to final audit by DEMA. Reimbursement of the applicant's share is to be offset by any revenue realized through the administration of the federal share payments.

3. States it is the intent of the Legislature to restore the general fund monies that were previously appropriated to DEMA for flood relief but that reverted to the general fund by operation of law before completion of the flood relief projects.

4. Contains a general effective date.

Prepared by Senate Staff

March 22, 1999

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