House of Representatives

HB 2631

general appropriations act

Sponsors: Representatives Knaperek, Cheuvront, Landrum, et al

X	Committee on Appropriations
	Caucus and COW	This bill as introduced contains an Appropriation clause.
	As Passed the House

HB 2631, the General Appropriations Act, appropriates $6,142,707,500 from the state General Fund (GF) and $1,715,204,700 from other appropriated state funds (OF) in FY 2002 and appropriates $6,453,944,100 from the GF and $1,756,924,500 from OF in FY 2003 to fund the maintenance and operations of all state agencies and the public schools. Total GF appropriations for the biennium equals $12,596,651,600 and total OF appropriations for the biennium equals $3,472,129,200. These appropriations are detailed in the attached tables.

HB 2631 includes $251,977,400 GF and $53,914,800 OF over the biennium for salary adjustments, classification maintenance review adjustments, community treatment program provider rate adjustments, state-owned rent adjustments and state employee adjustments. These adjustments are detailed in an attached table.

Other Provisions:

· Contains numerous and varied performance measures within each agency or department section of the bill. In addition to other agency-specific performance measures, each agency list of performance measures includes at least one measure of customer/client satisfaction

· Contains intent language that all departments or agencies receiving lump sum appropriations shall report actual, estimate and requested expenditures by budget programs and budget classes in a format that is similar to the budget programs and budget classes used for budgetary purposes in prior years.

· Provides that full-time equivalent (FTE) positions are subject to appropriation with the exception of the Department of Economic Security, the universities and the Department of Environmental Quality. Requires the Department of Administration to submit reports each year regarding the level of FT usage compared to the appropriated level.

· Requires the Executive Branch to provide a preliminary estimate by September 15, 2001 of the FY 2001 ending state balance. Based on the information the JLBC staff shall report by October 15 of 2001, 2002 and 2003 as to whether the fiscal year’s revenues and ending balance are expected to change by more than $50.0 million.

· Requires that new state general fund monies received for new FTE positions shall be placed in a new position holding account administered by the Department of Administration. The funding is only transferred to the agency or department after the FTE has been hired. Any monies in the holding account at the end of the fiscal year, revert to the state general fund.

· Provides that a review by the JLBC means a review by a vote of a majority of a quorum of the members.

Major Budget Unit Detail
AGENCY NAME	Fiscal Year 2002 (July 1, 2001 to June 30, 2002)		Fiscal Year 2003 (July 1, 2002 to June 30, 2003)		HIGHLIGHTS/EXPLANATION
	GENERAL FUND	OTHER FUND	GENERAL FUND	OTHER FUND
Administration. Department of	26,523,100	157,014,500	26,740,800	164,597,000	· Adds $689,400 GF for Capitol Mall security and $200,000 OF for increased utilities charges to the Facilities Management Division over the biennium. · Includes $4,602,900 OF in FY 2002 and $7,215,800 OF in FY 2003 from the Personnel Division Fund to the Human Resources Management System Special Line-Item (SLI) to replace the Human Resources/Payroll (HRMS) System. · Adds $2,203,000 OF over the biennium for telecommunications cabling and equipment for agencies that are moving into the 2 new privatized Lease-to-Own (PLTO) buildings and the space vacated by the department. · Includes GF and OF decreases for the elimination of one-time expenses for the Alternative Fuels Cost Reimbursement program and prior vehicle replacements. · Adds monies from the Special Employee Health Insurance Trust Fund for consultant costs and the Benefits Information Tracking System. · Includes numerous performance measures for customer satisfaction, as well as performance measures for travel reduction, building maintenance, fleet management, liability claims, workers’ compensation and others.
Arizona Health Care Cost Containment System (AHCCCS)	628,606,500	71,127,600	681,003,900	88,594,600	· Includes GF increases of $102.5M in FY 2002 and $143.3M in FY 2003 to reflect enrollment growth and medical inflation in the Acute Care program. · Includes GF increases of $13.3M in FY 2002 and $25.3M in FY 2003 for the ALTCS program to reflect enrollment growth and medical inflation. Also includes $15M annually for the Premium-Sharing, Healthcare Group and Ticket to Work programs, as well as coverage of parents of Title 19 eligible children, critical access hospitals and Medicaid breast and cervical cancer coverage for women who are screened under the Well-Woman Healthcheck program. · Includes CHIP – Services of $62.1M OF in FY 2002 and $78.3M OF in FY 2003, which is a decrease of ($10M) in FY 2002 and an increase of $6.1M in FY 2003 due to lower than anticipated enrollment · Continues to fund the Federal Matching Assistance Percentage (FMAP) for IHS referral claims and FY 2000 medical inflation from the Tobacco Tax Fund at $9.8M annually. · Continues Tobacco Tax allocations for the “Quick Pay” discount, maternity length of stay and AIDS/HIV treatment programs at their FY 2001 level. · Includes $950,000 GF and $1,950,000 TF each year to fund the implementation of a Finger Imaging Program. · Includes performance measures on the fraud and abuse prevention prgram, eligibility accuracy, cost of administration, child health and immunization levels, long-term care recipient services, percentages of insurance coverage, customer satisfaction, and many others.
Community Colleges, State Board of Directors for	139,853,200	166,800	145,763,600	179,100	· Includes $111.59M in FY 2002 and $115.58M in FY 2003 from the GF for operating state aid, an increase of $3.65M in FY 2002 and $7.64M in FY 2003. · Includes $16.12M in FY 2002 and $16.7M in FY 2003 from the GF for capital outlay state aid, an increase of $551,100 and $1,137,400 each year respectively. · Includes $11.13M in FY 2002 and $12.475M in FY 2003 from the GF for equalization aid, an increase of $387,000 and $1,072,900 each year respectively. · Includes performance measures on transfer articulation, interactive TV courses, success rates for vocational education programs, and customer satisfaction.
Corrections, Department of	567,950,500	16,194,300	575,690,400	25,407,800	· Includes decreases of ($3.5M) GF in FY 2002 and ($1.4M) GF in FY 2003 due to overfunded inmate population growth. · Includes additional decreases of ($12.8M) GF in FY 2002 and ($10.5M) GF in FY 2003 due to a delay of bed openings. · Includes a decrease of ($3.3M) GF in FY 2002 and ($3.3M) GF in FY 2003 due to the closing of the Arizona Center for Women. · Adds $2.9M GF in FY 2002 and $5.3M GF in FY 2003 to continue the existing Correctional Officer pay plan. · Includes performance measures on average cost per inmate, escapes from secure facilities, inmates receiving GEDs and per cent of agency staff turnover.
Economic Security, Department of	468,387,900	409,458,400	502,682,000	411,373,600	· Adds $36.9M GF in FY 2002 and $48.7M GF in FY 2003 for client growth and caseload growth and capitation rate increases in the Long-Term Care Program. · Adds $1.7M GF each year to fund caseload growth in non-Medical Home and Community Based adult care services. · Includes a $4.8M GF increase over the biennium to fund caseload growth in the Child Care Program · Adds $4.4M GF for CPS staffing ratios at Child Welfare League of America Standards, implementing statewide the Family Group Decision Making program, and training prior to caseload assignments. · Adds $2.9M GF in FY 2002 and $5.0M in FY 2003 for caselaod growth in adoption subsidies. · Adds $4.6M GF over the biennium to fund a new automation system and associated infrastructure for case management and provider billing processes. · Includes a decrease of ($600,000) GF over the biennium to the Arizona Works Procurement Board. · Includes performance measures on customer satisfaction ratings, number of clients served monthly, ratio of IV-D child support enforcement cases with current support collected, number of children with finalized adoption, per cent of child protective reports responded to by CPS staff and number of TANF recipients who obtained employment.
Education, State Board of & Superintendent of Public Instruction	2,582,662,000	75,883,100	2,728,400,700	75,883,300	· Adds $119.0M GF in FY 2002 and $245.2M GF in FY 2003 for student enrollment growth, minus the offsets of ($100.4M) in FY 2002 and ($167.7M) due to local Net Assessed Value (NAV) growth. · Adds $14.7M GF in FY 2002 and $16.0M GF in FY 2003 to fund Group B weights increases. · Adds $62.8M GF in FY 2002 and $132.2M GF in FY 2003 to fund the 2% deflator required by Prop. 301, but not funded by the sales tax increase in the proposition. · Eliminates $5.0M each year from the “A+” program. · Adds $500,000 GF each year for dropout prevention. · Includes performance measures on customer satisfaction, per cent of students who perform at or above the national norm on the Stanford 9 test, increased percentage of the number of high school students that graduate and per cent of parents who rate “A+” the public school that their oldest child attends.
Health Services, Department of	301,892,700	45,515,500	349,774,000	43,063,400	· Adds $26.1M in FY 2002 and $33.0M in FY 2003 from GF for increases associated with Title 19 enrollment and inflation. · Adds $27.5M in FY 2002 and $54.9M in FY 2003 from GF improve the treatment of SMI patients and address the requirements of the Arnold v. Sarn lawsuit. · Includes $3.8M GF in FY 2003 for costs associated with opening the new State Hospital. · Adds $437,200 GF in FY 2003 for increased population in the “Sexually Violent Persons” Program · Adds $1.6M over the biennium for an new Hepatitis A and a pneumoccocal vaccine. · Includes increased funding of $1.5M GF over the biennium to hire new assurance and licensure staff in January 2002. · Restores funding of $100,000 GF each year for the Dental Sealant Program. · Restores funding for health care services in areas with trichloroethylene (TCE) at $250,000 in each year of the biennium from the Tobacco Tax Fund. · Continues funding $13.6M each year from the Tobacco Tax Fund for psychotropic medications. · Includes performance measures on care facility complaint investigations, number of uninsured people receiving care through tobacco tax grants, immunization rates, wait times at vital records, number of CRS clients served, rate of births to girls under age 19, percentage of SMU clients receiving new generations of psychotropic medications, number of Title 19 clients served, client satisfaction, and others.
Judiciary – Supreme Court	18,294,300	27,189,500	18,323,800	27,356,900	· Includes an increase of $378,800 in FY 2002 and $620,500 from the Court Appointed Special Advocate (CASA) Fund to hire additional CASA field coordinators. · Includes performance measures court revenues, court filings, number of cases pending, average number of calendar days to issue an opinion, administrative costs, customer satisfaction, and others.
Judiciary – Court of Appeals	10,697,900	0	10,744,200	0	· Adds $141,700 GF each year for judicial salary increases. · Includes performance measures on cases pending at the end of the year, cases upheld upon review, customer satisfaction and others.
Judiciary – Superior Court	123,838,900	6,884,300	126,148,000	6,884,300	· Includes $807,800 GF over the biennium for the annualization of judicial salary increases. Effective January 1, 2001. · Adds $1.62M over the biennium to annualize 8 judgeships added in FY 2000 and to provide funding for 5 new judgeships. · Adds $1.48M GF over the biennium for the growth in the Juvenile Standard Probation program. · Includes a biennial decrease of ($4.18M) in the Juvenile Intensive Probation program due to prior year caseload overfunding. · Adds $1.575M GF over the biennium for enhanced juvenile treatment services. · Includes a biennial decrease of ($816,500) GF in the Adult Standard Probation line-item due a to a lack of growth in the program. · Includes a biennial decrease of ($1.8M) GF in the Adult Intensive probation line due to diminished caseload need. · Includes performance measures for each probation program relating to the percentage of probationers successfully completing the probation without a referral.
Juvenile Corrections, Department of	66,898,800	4,695,600	67,197,200	4,633,400	· Includes reductions of ($4.38)M GF and ($509,700) OF each year of the biennium due to a decrease in the department’s secure care population. With these decreases, DJC is funded for 968 operational beds each year. · Adds $616,900 GF each year to fund stipends of $2,500 for youth correctional officers (YCOs) who work at the Buckeye juvenile facility. These stipends were previously paid out of vacancy savings. · Adds $687,600 GF over the biennium to annualize a prior YCO pay plan. · Adds $236,000 over the biennium to establish a mental health unit for female juveniles. · Salary adjustments section of the bill includes pay increases of $2,500 on Jan. 1, 2003 and $1,500 on Jan.1, 2003 for YCOs. · Includes performance measures on average cost per juvenile, bed surpluses/deficits, number of escapes, progress by juveniles in their treatment problem areas, employee satisfaction, and others.
Transportation, Department of	7,137,800	312,768,700	7,137,800	310,937,000	· Includes $171.6M in FY 2002 and $174.37M in FY 2003 for statewide transportation system planning in the Highway program, plus $7.0M deposit each year to the Local Transportation Assistance Fund to hold it harmless for prior VLT reductions. Does not include GF deposit to the State Highway Fund to hold it harmless for reductions in the VLT. · Continues funding for the Grand Canyon Airport in FY 2002 at $641,500 OF from the State Aviation Fund. · Adds $3.65M OF to the Motor Vehicle program for an estimated 6.6% annual growth in customer service field office transactions and to maintain a maximum customer wait times of 15 to 20 minutes. · Adds $7.95M OF from the State Highway Fund for the Motor Vehicle program to enhance e-business transactions. · Includes performance measures on agency staff turnover, revenue forecasting, percentage of freeway or highway completed, highway maintenance levels, wait times, and others.
Universities – Board of Regents	7,946,400	0	8,224,100	0	· Increases student financial aid by $100,000 in FY 2003 to $2.45M. · Adds $1.05M GF over the biennium to fund 24 additional WICHE slots and fee increases for the student subsidies that provide partial financial support and preferential access to Arizona residents at universities outside the state. · University budgets include $16M over the biennium in new spending initiatives, or decision package funding, spread throughout each individual university budget. · University budgets do not include $4.746M GF over the biennium for new facilities funding, nor do they include $4.287M GF over the biennium to offset university Collections Funds shortfalls. These items are included in the second “trigger” in HB 2637. Collections Fund shortfalls for ASU-East and West are included in the first trigger at $1.984M GF over the biennium. · Includes performance measures on student satisfaction, undergraduate student exposure to ranked faculty, number of degrees awarded, average years to graduation and others. These performance measures are similar for all 3 universities listed below, as well as their branch campuses.
Universities – ASU	332,241,800	109,625,500	333,342,400	111,515,500	· Includes a GF increase of $5.84M over the biennium for increased student enrollment. · Includes salary annualizations of $4.4M GF each year for ASU-Main, $147,100 GF each year for ASU-East, and $471,600 GF each year for ASU-West. · Includes an FY 2003 increase of $539,100 GF to restore operating funding that was reallocated to the Eminent Scholars Program.
Universities – NAU	113,322,900	27,764,100	117,693,600	27,768,300	· Includes a GF decrease of ($5.1M) over the biennium for decreased student enrollment. · Includes salary annualizations of $1.6M GF each year. · Includes an FY 2003 increase of $247,800 GF to restore operating funding that was reallocated to the Eminent Scholars Program.
Universities – UA	340,744,700	85,754,700	344,222,300	85,088,500	· Includes a GF decrease of ($1.268M) over the biennium for changes in estimated student enrollment at UA-Main. UA-Health Sciences sees a decrease of ($215,500) GF over the biennium. · Includes salary annualizations of $4.1M GF each year for UA-Main and $795,700 GF each year for UA-Health Sciences Center. · Includes an FY 2003 increase of $466,100 GF to restore operating funding that was reallocated to the Eminent Scholars Program. · Adds $4.8M GF each year to offset reallocations of Collections Fund monies for debt service requirements on capital projects. · Continues funding the Teratogen Information Program at UA-Health Sciences at $92,000 OF each year.

Smaller Budget Unit Detail
AGENCY NAME	Fiscal Year 2002 (July 1, 2001 to June 30, 2002)		Fiscal Year 2003 (July 1, 2002 to June 30, 2003)		HIGHLIGHTS/EXPLANATION
	GENERAL FUND	OTHER FUND	GENERAL FUND	OTHER FUND
Accountancy, Board of	N/A	2,105,200	N/A	2,071,900	· Increase includes additional costs associated with the semi-annual CPA exam, salary increases, legal services, examination space, a new Office of Administrative Hearing (OAH) cost allocation plan, one-time equipment funding and more monies for special investigations.
Acupuncture Examiners, Board of	N/A	50,400	N/A	50,400
Administrative Hearings, Office of (OAH)	1,232,100	1,132,400	1,231,900	1,132,200	· Changes largely reflect a new cost allocation plan in which agencies are billed for the actual OAH Administrative Law Judge hours used.
Agriculture, AZ. Department of	12,810,100	2,544,300	12,778,600	2,545,400	· Includes $90,000 GF each year for agriculture laboratory equipment replacement, $48,500 GF for digital imaging equipment for the points of entry, $187,600 OF for additional egg inspectors, and $55,700 OF for a chemical analyst position at the state lab.
Appraisal, Board of	N/A	443,600	N/A	445,400
Arts, AZ. Commission on the	4,387,900	N/A	4,372,200	N/A
Attorney General, Department of Law	27,415,100	23,358,100	27,296,000	23,110,000	· Includes $652,000 OF increase each year to bring the OF funded average assistant attorney general salaries in line with the average salaries paid by Maricopa County. · Includes a $300,000 GF increase each year to enforce the tobacco settlement agreement, additional monies for enhanced building security at the Law Building and the Capital Center building, continuing monies for improved criminal case processing, the school safety program and the collaboration with DPS to combat internet crime. · Continues monies for the Alternative Fuel Cost Reimbursement program.
Auto Theft Authority	N/A	3,885,600	N/A	3,896,600	· Increase includes additional monies for grants to the Auto Theft authority Task Force for additional members, additional grants to support prosecution of auto thieves, more funding for border interdiction of auto theft, additional grants for local law enforcement, and other smaller program funding increases.
Banking Department	2,849,700	N/A	2,821,000	N/A
Barbers, Board of	N/A	192,100	N/A	186,300	· Includes monies for one-time rule-writing services, an executive director salary increase, an increase in temporary personnel, and computer customization and training.
Behavioral Health Examiners, State Board of	N/A	658,700	N/A	689,900	· Increase includes monies for additional complaint investigation, a credentialing specialist position, increased office space, and a salary increase for the executive director.
Boxing Commission	80,400	N/A	80,400	N/A
Building and Fire Safety, Department of	3,608,500	N/A	3,611,500	N/A	· Reflects standard changes and the elimination of one-time equipment expenditures.
Charter Schools, State Board for	683,800	N/A	714,800	N/A	· Increase includes an additional $75,000 over the biennium to accommodate an increased number of contracted audit reviews by the Board, due to rapid growth of the number of charters sponsored by the Board.
Chiropractic Examiners, Board of	N/A	345,400	N/A	339,400	· Increase includes salary increases, an additional clerk/typist, an increase in board members work hours, additional equipment, technical adjustments to the board’s rent, and other miscellaneous expenses.
Commerce, Department of	5,348,400	3,862,400	5,349,500	3,862,400	· Includes GF decrease of ($3,500,000) in the job training program funding each year due to the provisions of Laws 2000, Ch. 383, which reduces GF monies and replaces them with funding from a 0.1% increase in the employers’ wage tax, which is expected to generate $7,500,000 each year. · Includes GF decrease of ($1,000,000) each year due to the termination of the provisions of Laws 1996, 7^th S.S., Ch. 6, which provided for an appropriation of $1,000,000 GF to the Clean Air Fund in each year the state received monies related to the Farm and Home Settlement. · Continues apprenticeship services funding at $151,300 GF over the biennium. · Continues funding for the National Law Center for Inter-American Free Trade at $100,000 GF. · Eliminates $500,000 OF funding for housing development assistance around state prisons because the department does not plan any loans or grants related to the program in the upcoming biennium. · Eliminated ($212,300) GF over the biennium from the Rural Tourism Special Line-Item.
Contractors, Registrar of	N/A	9,479,100	N/A	8,677,300	· Increase includes monies to replace the agency’s database with one which is web-enabled and will allow for easier access, monies for additional investigators, funding for replacement equipment, additional motor pool charges, salary increases, a legal department compliance officer, and other miscellaneous increases.
Corporation Commission	5,578,500	16,550,900	5,841,500	16,387,200	· Includes a $347,900 GF increase in FY 2003 for additional costs/staff for 2 new commissioners added by Prop. 103. · Adds $108,600 GF over the biennium to inspect railroad signals, $128,000 OF over the biennium for division staff overtime, $101,200 OF for a management analyst position to identify and correct document-processing errors and $144,700 OF for a computer programmer FTE position to increase the effectiveness of information technology resources available to the Securities division. · Adds $257,600 OF over the biennium for 2 additional FTE positions and equipment for pipeline safety inspections and investigations. · Adds $886,400 OF over the biennium to address the Legal Division caseload, which has increased significantly due to lawsuits relating to utility deregulation, $202,600 OF for 1 additional Administrative Law Judge and associated expenses, and $459,800 OF over the biennium for additional deregulation workload staff and related expenditures. · Reduced ($192,000) GF each year for the Railroad Warning Systems Special Line-Item due to the availability of federal funds. · Adds $1,083,700 OF each year from various funds for salary adjustments. · Makes GF reductions and OF increases to restructure the funding of administrative positions.
Cosmetology, Board of	N/A	1,578,600	N/A	1,402,800	· Increase includes $269,000 in FY 2002 and $110,000 in FY 2003 to fund the agency’s IT plan, monies for additional staff to complete inspections in a timely and consistent manner, funding for an electronic licensing system, monies for the printing and distribution of educational materials, and other miscellaneous costs.
Criminal Justice Commission, AZ.	2,905,200	5,970,300	2,905,200	5,945,300	· Increase includes $50,000 OF each year for additional operating expenditures and a ($1,000,000) OF decrease in funding each year from the Victim Compensation and Assistance Fund reflecting the discontinuation of a one-time grant. · Includes a $250,000 GF increase each year to reduce the impact on the community as a result of the decrease in victim compensation monies and to offset a reduction in revenue received from the Criminal Justice Enhancement Fund.
Deaf & the Blind, AZ. State Schools for the	18,725,900	10,943,900	19,084,500	12,012,600	· Adds $536,600 GF and $695,300 OF over the biennium for salary adjustments. · Adds $2,965,400 OF over the biennium due to an expected rise in enrollment. · Includes increases for full-time Parent Advisors and enhanced security at the Tucson and Phoenix campuses. · Adds $1,922,800 OF over the biennium for new “Group B” weight increases. · Adds monies to replace 1 bus in FY 2002 and 3 buses in FY 2003.
Deaf and Hard of Hearing, Commission for the	N/A	5,700,300	N/A	5,849,900	· Includes reductions of ($450,000) OF in FY 2002 and ($292,000) OF in FY 2003 due to lower than expected costs for the Telecommunication Relay Services Program. · Includes a total biennial increase of $83,600 OF to establish interpreter training programs.
Dental Examiners, State Board of	N/A	753,400	N/A	0	· Includes increases for additional investigator services and attorney general services, an executive director salary increase and a decrease for technical adjustments related to the board’s rent. · Does not fund a FY 2003 budget for the Board.
Drug & Gang Prevention Resource Center, AZ.	N/A	5,030,900	N/A	5,020,900	· Increase includes monies for an additional FTE to assist in the agency’s mandated statewide Substance Abuse and Gang Prevention program inventory and the elimination of one-time equipment funding.
Emergency and Military Affairs, Department of	7,555,200	132,700	7,663,600	132,700	· Increase includes additional monies for enhanced facilities maintenance, the replacement of 6 vehicles and more funding for the National Guard Education Reimbursement program.
Environmental Quality, Department of	16,609,600	49,694,000	16,808,600	62,025,700	· Adds $549,400 GF and $77,500 Of over the biennium for information technology security and software upgrades. · Includes $15,869,800 OF in FY 2002 and $31,739,600 OF in FY 2003 from the Emission Inspection Fund to allow the department to pay the Emissions Control Program Contractor. · Adds $63,300 OF and 1 FTE in FY 2002 and $43,300 OF and 1 FTE in FY 2003 to address hazardous waste and solid waste issues at the Arizona-Mexico Border. · Adds $200,000 GF and 9 FTEs in FY 2002 and $332,500 GF and 9 FTEs in FY 2003 for state primacy to operate the National Pollution Discharge Elimination Program.
Equal Opportunity, Governor’s Office of	234,900	N/A	234,900	N/A
Equalization, State Board of	639,100	N/A	639,100	N/A
Executive Clemency Board	1,318,800	N/A	1,300,300	N/A	· Increase includes additional monies for retirement payoffs and positions reclassifications and a decrease for the elimination of one-time equipment expenses.
Exposition & State Fair Board, AZ	N/A	14,890,400	N/A	13,679,500	· FY 2002 increase largely consists of additional monies for numerous one-time equipment purchases.
Funeral Directors & Embalmers, State Board of	N/A	251,500	N/A	251,600
Game and Fish Department, AZ.	N/A	22,891,600	N/A	22,904,000	· Continues $732,500 OF annual funding for special market adjustments to all covered employees with Wildlife series jobs. · Adds $184,600 OF in FY 2002 and $140,100 OF increase in FY 2003 for replacement equipment, including 33 trucks in FY 2002 and 32 trucks in FY 2003, personal computers, boats and other miscellaneous items. · Adds $50,000 from the Game and Fish Fund each year for vehicle maintenance. · Adds $321,200 OF increase over the biennium for increased operating costs for Field services, the urban fishing program, ammunition, and the registrar system. · Adds $500,000 OF each year to fully fund the estimates 25% state match required to receive federal Pittman-Robertson/Dingell-Johnson Acts aid allocated to Arizona for sports fishing and wildlife restoration projects. · Adds $450,000 OF over the biennium for increased costs associated with system and software license renewals, maintenance fees and hardware and software support, and adds $297,800 OF for replacement equipment and the upgrade of network infrastructure to meet statewide network data delivery, storage and maintenance needs. · Adds $500,000 OF over the biennium to develop and implement a 2-year Watercraft Safety Education initiative. · Adds $46,800 OF each year for support of the Performance Incentive Pay Program for employees within the Watercraft Program budget.
Gaming, Department of	N/A	5,111,700	N/A	4,892,900	· Includes increases for additional FTEs and one-time equipment, as well as decreases in arbitration expenses and consulting services.
Geological Survey, Arizona	899,600	N/A	893,400	N/A
Government Information Technology Agency (GITA)	0	2,615,500	0	2,410,300	· Shifts $143,200 worth of biennial funding for the Telecommunications Policy Office from GF to the Information Technology Fund. · Appropriates $156,000 OF from the Info Tech Fund to provide project management and oversight of “e-government web portals”. · Adds $83,000 OF over the biennium for increased rent payments. · Includes an annual decrease of ($1,000,000) OF from the Technology and Telecommunication Fund due to the fact that no monies previously appropriated to fund innovative cross agency projects have been allocated. · Adds $112,500 OF for professional and outside services, and equipment.
Governor, Office of the	6,278,900	N/A	6,372,800	N/A	· Increase largely reflects standard adjustments, the establishment of a northern AZ. Office, annual leave payoffs, and other expenses.
Governor's Office for Excellence in Government	1,584,200	25,000	1,584,300	25,000	· Maintains funding for an FTE position previously dedicated to PERB support for other privatization work. C OF decrease of $475,000 each year reflects more accurate agency personnel training costs.
Gov.'s Office of Strategic Planning and Budgeting	1,941,100	N/A	1,940,900	N/A
Historical Society, Arizona	4,687,400	N/A	4,692,500	N/A	· Includes additional monies for increased utility costs in its Museum and Library program and enhanced information technology resources.
Historical Society of AZ, Prescott	751,800	N/A	808,900	N/A	· FY 2003 increase includes monies for a new pick-up truck, a half-time information technology position, additional utility costs and other miscellaneous expenditures.
Homeopathic Medical Examiners, Board of	N/A	71,600	N/A	71,600
Indian Affairs, AZ Commission of	231,200	N/A	231,300	N/A
Industrial Commission of Arizona	N/A	15,359,400	N/A	15,365,600	· Increases include pay annualizations, funding to implement special recruitment rates for the Occupational Safety Consultant and Industrial Hygienist positions and desktop computer leases.
Insurance, Department of	6,210,200	N/A	6,303,200	N/A	· Includes an additional $111,900 GF to address the growth in requests from consumers for assistance, additional monies to address the increased number of licensing applications that need to be processed and the growth in investigations for the Fraud Unit, and an increase of $264,300 GF over the biennium to reflect a transfer authorized by Laws 2000, Ch. 339, of regulatory responsibilities for dental care service delivery previously conducted by DHS.
Land Department, State	14,738,500	1,677,100	14,971,200	1,662,900	· Adds $800,000 GF each year for litigation and expert witness costs associated with water rights adjudication. · Adds $366,100 GF and 3 FTEs in FY 2002 and $378,700 GF and 3 FTEs in FY 2003 to the Sales and Leasing section staff and contract funding. · Eliminates one-time ($250,000) GF appropriation from Laws 1999, Ch. 312, for grants for environmental projects in Greenlee, Graham, Gila, Navajo, and Apache counties. · Eliminates the one-time appropriation ($447,000) OF from the Fire Suppression Fund for wildland firefighting made by Laws 200, Ch. 185. · Shifts $147,000 GF and 3 FTEs positions each year from streambed studies to the fire program. · Appropriates $155,200 GF in FY 2003 to cover a shortfall in the agency’s Central Arizona Project Water Fees. · Adds $75,000 GF each year for study of the Colorado River to determine the boundary between Arizona and California.
Law Enforcement Merit System Council	56,600	N/A	56,600	N/A
Legislature – Senate	7,035,400	N/A	7,037,000	N/A
Legislature – House of Representatives	12,052,400	N/A	12,991,500	N/A
Legislature – Legislative Council	5,353,300	N/A	5,176,300	N/A	· Increase largely reflects additional monies for upgrades to the legislative computer system, network infrastructure and voting display systems, as well as salary adjustments for computer personnel.
Legislature – JLBC	2,452,500	N/A	2,452,600	N/A
Legislature - Auditor General	13,050,500	N/A	14,624,100	N/A	· Adds $1,773,600 GF in FY 2002 and $3,257,400 GF in FY 2003 for school district performance audits on a 5-year cycle. · Adds $262,500 GF in FY 2002 and FY 2003 for a 5% salary adjustment for auditors to address turnover. Also adds monies to fund earlier salary adjustments which were paid for out of a non-lapsing carryforward. · Adds $160,300 GF in FY 2002 and $303,500 GF for the replacement of personal computers, software and copiers.
Legislature – Advocate for Private Property Rights	97,500	N/A	97,600	N/A
Legislature - Library, Archives and Public Records	7,888,800	308,700	8,182,100	308,700	· Includes $787,800 GF increase over the biennium for salary increases for various positions whose salaries are below market rates, $350,500 GF increase over the biennium for equipment and research service contracts, and $30,000 GF in FY 2002 for digitization of the archive catalog. · Continues the $300,000 GF for state grants in aid to urban, rural and tribal libraries begun by Laws 2000, Ch. 298. · OF decrease reflects elimination of one-time FY 2001 equipment funding in the Public Records program. · Adds $20,000 GF each year for a Radio Reading Service for the Blind to extend service to the Yuma area.
Liquor Licenses & Control, Department of	2,557,100	N/A	2,555,100	N/A	· Includes an additional $51,600 GF increase over the biennium for 1 Information Technology Specialist FTE to supplement previously appropriated funds for Hardware and Software Maintenance and an additional $8,400 for 14 new bulletproof vests.
Lottery Commission, Arizona State	N/A	42,763,600	N/A	41,851,700	· Includes $329,000 OF over the biennium to purchase an AS/400 mid-level computer and replacement of two-thirds of the Lottery’s desktop computer inventory, as approved by GITA. · OF decreases in advertising and on-line vendor fees due to decreased lottery revenues. · Adds $72,000 OF each year for audit oversight of game drawings.
Medical Examiners, Board of	N/A	4,536,000	N/A	4,537,600	· Includes increases of $237,600 OF over the biennium for investigative aides to address a case backlog, $169,000 OF over the biennium for Attorney General services to address case increases, $168,600 OF over the biennium for the conversion of existing positions, a decrease of ($1,181,000) OF for the elimination of one-time web-site development start-up equipment, and $96,000 OF for additional equipment. · Also add $85,000 OF in FY 2003 to replace computers.
Medical Student Loans, Board of	285,500	64,900	353,600	7,900	· Fully funds the legal maximum for 16 medical students who have agreed to serve the State of Arizona in medically underserved areas.
Mine Inspector, State	1,238,800	N/A	1,216,000	N/A	· Includes $154,400 GF increase over the biennium for the Mining Safety and Enforcement program.
Mines and Mineral Resources, Department of	725,600	N/A	718,300	N/A	· FY 2002 budget includes $7,500 GF for a new public address system at the Mining and Mineral Museum.
Naturopathic Physicians Bd. Of Medical Examiners	N/A	207,400	N/A	207,500	· Increase includes monies for additional inspection and evaluation of naturopathic medicine education programs.
Navigable Stream Adjudication Commission, AZ.	185,800	N/A	N/A	N/A	· FY 2003 decrease reflects agency elimination/Sunset on June 30, 2002.
Nursing, State Board of	132,000	2,853,300	132,000	2,427,200	· Includes $264,000 GF over the biennium for fingerprinting certified nurses assistants (CNAs). · Includes a $229,300 OF increase in FY 2002 for staff increase to address a backlog of 2,100 open cases, and a ($167,700) OF decrease in FY 2003 when the backlog is eliminated. · Includes $147,700 OF over the biennium for additional Attorney General services to address a backlog of cases awaiting a hearing, $100,300 OF over the biennium for system upgrades and to implement Web-based license renewals, monies for staff development and other miscellaneous expenses.
Nursing Care Institution Administrators and Assisted Living Facility Managers, Board of Examiners of	N/A	351,400	N/A	330,400	· Increase includes monies for salary increases for the Executive and Deputy Directors, an additional Complaint Investigator II position, printing and postage, and other miscellaneous expenditures.
Occupational Safety and Health Review Board	7,000	N/A	7,000	N/A
Occupational Therapy Examiners, Board of	N/A	209,400	N/A	203,300	· Budget adjustments include a fund shift for the start-up costs associated with the Board of Athletic Training, an Executive Director Salary increase and other miscellaneous expenditures.
Opticians, State Board of Dispensing	N/A	94,200	N/A	94,400
Optometry, State Board of	N/A	156,600	N/A	141,400	· Increase includes $10,700 OF each year of the biennium for the development of the oral pharmaceutical program, which is a result of optometrists’ expanded scope of practice which allows them to use and prescribe oral pharmaceutical agents to treat the eye and related structures.
Osteopathic Examiners, AZ Board of	N/A	464,800	N/A	380,300	· Funding decrease due to a revenue deficit caused by a lack of oversight of fund revenues and expenditures. Additionally, the Board must partially repay a loan made to the agency from the Health Crisis Fund in the amount of $85,000.
Parks Board, Arizona State	7,510,600	5,235,900	7,525,600	5,315,500	· Includes an increase of $1,568,400 OF over the biennium from the State Parks Enhancement Fund (SPEF) for additional park staff and other costs at both Kartchner Caverns and 10 other state parks to keep up with significantly increased park attendance. · Includes $473,400 OF over the biennium for increased grants to counties for boating law enforcement and training. · Adds $100,000 SPEF each year to provide stipends to park rangers who are certified law enforcement rangers, $100,000 SPEF each year for equipment costs, and $60,000 SPEF each year for marketing and outreach efforts.
Personnel Board	396,600	N/A	392,700	N/A	· Includes personal services and equipment adjustments.
Pharmacy, AZ. State Board of	N/A	1,252,000	N/A	1,178,200	· Includes increases for enhanced regulation of non-prescription drugs sold in vending machines, enhanced regulation of methamphetamine precursor chemicals, funding for a compliance officer, and $100,000 each year for drug inspector salary increases.
Physical Therapy Examiners, Board of	N/A	223,000	N/A	222,800
Pioneers' Home, Arizona	2,664,300	2,649,200	2,679,300	2,414,900	· Includes $100,000 OF for a new nurse call system, monies for increased drug costs, funding for replacement equipment and a personal services funding shift from the GF to the Miners’ Hospital Fund.
Podiatry Examiners, State Board of	N/A	94,800	N/A	94,800
Postsecondary Education, Commission for	1,723,800	2,775,000	1,723,800	2,775,100	· Decreases reflect a shift of responsibility for the Course Equivalency Guide from the Commission to the Community College Board and the funding of the “12 Plus Partnership” from state funds to in-kind donations.
Private Post Secondary Education, State Board for	N/A	243,200	N/A	247,600	· Increases largely reflect the addition of a Programs and Projects Specialist position and salary increases.
Psychologist Examiners, State Board of	N/A	300,600	N/A	316,200
Public Safety, Department of	76,117,900	49,600,100	78,364,800	49,960,500	· Includes increases of $758,000 GF over the biennium for Highway Patrol support personnel, $1,193,900 GF in FY 2003 for mobile data computer replacements in highway patrol vehicles, $1,279,100 GF over the biennium for additional crime lab support personnel and $1,420,200 OF over the biennium for replacement equipment for the Arizona Automated Fingerprint Information System.
Racing, AZ. Department of	2,789,800	383,200	2,790,100	383,200	· GF increase includes standard changes and money to make one-time computer and printer equipment purchases.
Radiation Regulatory Agency	1,287,000	192,000	1,287,400	192,000	· GF decrease reflects elimination of one-time appropriations for the state’s nuclear emergency plan. Separate legislation during the 1^st Regular session of a new Legislature typically addresses this issue.
Rangers' Pensions, Arizona	11,800	N/A	12,000	N/A
Real Estate Department, State	3,205,700	N/A	3,173,600	N/A	· Includes a biennial GF reduction of ($117,300) due to reduced interest and principal cost on a lease-purchase contract for computer equipment.
Residential Utility Consumer Office (RUCO)	N/A	1,068,700	N/A	1,068,400	· Increase largely reflects standard changes and salary adjustments resulting from the reclassification of Chief and Senior Rate Analyst positions and related positions.
Respiratory Care Examiners, Board of	N/A	169,300	N/A	169,200
Retirement System, Arizona State	N/A	23,536,400	N/A	23,108,300	· Includes additional OF monies for enhanced investment management and member services staff, agency-wide merit increases and competitive adjustments for Investment and Auditing staff, implementation of the Information technology plan, increasing postage, printing, supplies and advertising costs, replacement equipment and increasing actuarial costs. · Supplemental bill includes changes to prior GF appropriations for the Burke litigation settlement.
Revenue, Department of	61,049,700	2,142,600	59,786,300	2,242,300	· Adds $800,000 GF over the biennium for the payment of vendor transaction costs associated with the $25 transaction privilege tax credit for low-income taxpayers included in Prop. 301. · Adds $558,100 GF in FY 2002 and $344,100 GF in FY 2003 for customer service computer projects. · Adds $630,000 GF in FY 2002 and decreases ($165,000) GF and (12) FTEs for data center consolidation in ADOA. · Adds $156, 600 GF in each year for ADOA phone system charges. · Adds $50,500 GF each year for review of income tax returns that claim an alternative fuel tax credit. · Adds $460,000 GF over the biennium for a projected 20% increase in workload due to unclaimed property caseload growth and reduced withholding. · Adds $99,500 OF in FY 2003 for local area network (LAN) and personal computer replacement.
School Facilities Board	1,699,800	0	1,699,900	0
Secretary of State - Department of State	6,552,900	N/A	6,034,800	N/A	· Includes a GF decrease of ($2,833,800) in FY 2002 which reflects the elimination of one-time monies for the year 2000 primary and general elections. $2,781,200 is subsequently restored in FY 2003 for the year 2002 elections. · Adds $3,400,000 GF in FY 2002 for optical vote scanning equipment. · Includes additional GF monies for the costs of new statutory Uniform Commercial Code (UCC) requirements.
State Boards' Office	N/A	249,100	N/A	249,100
Structural Pest Control Commission	N/A	1,726,400	N/A	1,738,900	· OF increase includes monies to fully fund the analysis of pesticide samples through the Department of Agriculture’s laboratory. · Includes elimination of one-time computer equipment expenses.
Tax Appeals, State Board of	314,000	N/A	311,800	N/A
Technical Registration, State Board of	N/A	1,124,500	N/A	1,163,400	· Increases include monies to establish a Consumer Information and Resource Officer FTE position, additional funding in FY 2003 for regulating home inspectors, additional Attorney General legal services, and a decrease in funding due to the elimination of 0.5 FTE positions.
Tourism, Office of	11,420,800	4,000,000	12,222,600	4,200,000	· Includes GF increases of $2,264, 900 in FY 2002 and $3,088,300 in FY 2003 for statewide tourism promotion. These are redirected sales tax dollars that Chapter 372, establishing a Tourism and Sports Authority, sets aside for use by the Office. · Includes $4,000,000 in FY 2002 and $4,200,000 in FY 2003 for Maricopa County tourism promotion from additional non-GF revenues generated by Chpater 372. · Includes additional GF monies (redirected sales tax monies set aside by Chapter 372 for use by the Office) for strategic planning, procurement code compliance, a research staff FTE, administration support, and a travel counselor.
Treasurer, State	5,589,600	N/A	5,509,500	N/A	· Includes a ($2,000,000) GF decrease due to the elimination of a one-time special urban revenue sharing distribution. · Includes $200,000 GF in FY 2002 for property tax refunds. · Includes $99,100 GF increase in FY 2003 for Justice of the Peace salary increases.
Uniform State Laws, Commission on	44,900	N/A	45,200	N/A	· Includes additional monies for increased dues and registration fees to the National Conference of Commissioners on Uniform State Laws.
Veterans' Services, Department of	2,415,800	10,231,100	2,533,500	10,388,500	· Includes a shift of $517,800 each year from the GF to the State Home for Veterans’ Trust Fund for an administrative cost allocation plan. · Adds $553,100 GF over the biennium for the operation of the Southern Arizona Veterans’ Cemetery scheduled to open April 2002. · Adds 3 FTEs and $150,900 in FY 2002 and 3 FTEs and $220,900 in FY 2003 from the Trust Fund to establish an adult day care center for veterans at the Home. · Includes additional OF monies for ongoing equipment needs, rent at the fiduciary division and an additional Human Services Worker III position.
Veterinary Medical Examining Board, AZ. State	N/A	367,800	N/A	360,600	· Includes additional monies to support a full-time chief medical officer position, funding for rule-writing consultants, computer consultants and training and additional computer equipment. · Includes $32,500 OF increase in each year for a new administrative assistant position.
Water Resources, Department of	19,365,600	N/A	19,506,200	N/A	· Includes $2,500,000 GF increase each year for the Water Protection Fund. · Includes $500,000 GF each year for rural water studies ($500,000 each year is continuing monies, while the while the “trigger bill” could add another $500,000 each year in enhanced spending.) · ORB provisions suspend requirement for a $5M GF appropriation to the Water Protection Fund. · ORB provisions direct monies received via an interstate banking agreement with Nevada to the General Fund. It is estimated that the GF will receive $2M in FY 2002 and $2.7 M in FY 2003.
Weights and Measures, Department of	1,913,400	775,800	1,914,400	775,900	· GF increases include monies for increased motor pool funding and a shift in funding for Certificates of Participation (COP) from OF to GF.

Salary and Other Like Adjustments
BUDGET ITEM	Fiscal Year 2002 (July 1, 2001 to June 30, 2002)		Fiscal Year 2003 (July 1, 2002 to June 30, 2003)		HIGHLIGHTS/EXPLANATION
	GENERAL FUND	OTHER FUND	GENERAL FUND	OTHER FUND
Salary adjustments	$24,223,100	$5,030,000	$119,816,500	$25,410,000	The salary adjustment includes both personal services and employee-related expenditures for state officers and employees. For both FY 2002 and FY 2003 an employee’s annual salary level shall be increased by the greater of $1,500 or 5.0%, effective April 1, 2002 and April 1, 2003, respectively. The $1,500 minimum shall apply to less than full-time employees on a prorated basis. In FY 2002, correctional officers for the Department of Corrections and the Department of Juvenile Corrections shall receive an annual increase of $2,500 for April 1, 2002 through June 30, 2002. In FY 2003, correctional officers for DOC and DJC shall receive an annual salary increase of $1,500 for the period April 1, 2003 through June 30, 2003. Employees of the Arizona Schools for the Deaf and the Blind, board and commission members paid on a per diem basis and agency heads appointed for fixed terms are ineligible for the $1,500 or 5.0% salary adjustments.
Classification Maintenance Review	4,497,400	3,691,400	4,497,400	3,691,400	Annualizes the classification maintenance review (CMR) salary adjustments for positions that received a CMR review on January 1, 2001.
Board of Regents Market Salary Adjustments	1,000,000	0	2,000,000	0	Provides salary adjustments for university positions identified by the Board of Regents. Each year the Board of Regents shall report to JLBC their plan for the allocation of the monies.
Community Treatment Providers	5,478,400	400,000	20,578,400	1,200,000	For FY 2002 and FY 2003, the contracts for providers of community treatment programs with state clients are increased by 5.0% beginning in April of each fiscal year and for developmental disabilities beginning in January of each fiscal year. JLBC staff shall determine the allocation of these adjustments between agencies and within each agency. It is the intent of the Legislature that if the funds appropriated are insufficient for the 5.0% increase in either year, agencies shall ratably reduce the increase to match the appropriated level. It is the intent that monies for the adjustment each year be allocated only to those providers with contracts in place at the beginning of the fiscal year.
Attorney General Salary Adjustments	0	268,900	0	268,900	Provides for salary increases for Assistant Attorney General positions that are funded through contract agreements with other state agencies or departments.
Pro rata share contribution adjustments	663,200	102,600	1,201,700	183,700	Provides for increases in agency and department pro rata share contributions to the personnel division fund at a rate of 0.95% in FY 2002 and 1.04% in FY 2003.
State-owned space rental adjustment	912,800	260,800	1,224,400	349,800	Provides for state-owned space rental square footage increases to $15.00 for office space and $5.50 for storage space in FY 2002 and $15.50 for office space and $6.00 for storage space in FY 2003. These monies are paid to the capital outlay stabilization fund.
State employee health insurance adjustments	20,338,900	4,196,900	45,545,200	9,398,200	Increases the employer share of state employee health insurance premiums. The JLBC staff shall determine how much of the funding will be allocated to each agency or department.

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45th Legislature

First Special Session 19 April 11, 2001

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