House of Representatives

SB 1060

finances; technical correction

Sponsor: Senator Solomon

 

DPAS/E

Committee on Appropriations

DPA

S/E

Caucus and COW

X

Third Read

 

 

As Passed the House

 

 

SB 1060 makes a technical correction to the statutes regulating public finances.

 

Current Status

SB 1060 was amended in the Appropriations Committee by adopting the strike-everything amendment and providing supplemental increases to DES for General Assistance and Adoption Services.  SB 1060 was further amended in Committee of the Whole to provide supplementals to both Arizona Department of Education and the Osteopathic Board, and to make the state responsible for the difference between the base military pay and state salary.

 

A strike-everything amendment was adopted in the Appropriations Committee with the following provisions:

 

The strike everything amendment to SB 1060 addresses FY 2002 funding for State Emergency Services (SES), acute care programs and the Department of Corrections.  Additionally, it modifies statute to reduce state general fund (GF) expenditures.

 

History

The FY 2001-2002 GF budget, as enacted during the Forty-fifth Legislature, Third Special Session relies on the Budget Stabilization Fund (BSF) as a contingency source, should revenues  fall below provided estimates.  Prior to the end of the Third Special Session, new areas of shortfall have been identified.  This trailer bill addresses these additional concerns.

 

Provisions

School Facilities Board (SFB)

·          States that for projects approved after December 31, 2001, unified school districts that do not have a high school are not eligible to receive high school space unless the school district qualifies for the geographic factors exemption in calculating minimum square footage requirements.

 

Department of Corrections (DOC)

·          Appropriates an additional $4 million from the Corrections Fund to the DOC for health care related costs.  Additionally, reduces the lump sum reduction to the DOC budget by $600,000.

·          Allows prisoners to include the time they served in county jails towards their earned released credit total.  Earned released credit is calculated at one day for every six days served.

·          Stipulates that, pursuant to rules adopted by the director of the DOC, each prisoner shall be placed in parole class one beginning on their sentence begin date. 

 

Department of Juvenile Corrections (DJC)

·          Delays the building of the DJC medical unit.  This is a $600,000 savings to the Corrections Fund.

 

Arizona Health Care Cost Containment System (AHCCCS)

·          Allocates an additional $3.5 million for FY 2002 in county acute care contributions for hospitalization and medical care to AHCCCS.  These monies were originally collected in FY 2002 pursuant to Laws 2001, Chapter 344 (Proposition 204 implementation bill) from the counties to fund the Disproportionate Uncompensated Care pool (DUC), which would have been distributed to private hospitals.

·          The $3.5 M collected from the counties would no longer be used for the DUC pool; instead being used in the Acute Care program for the provision of hospitalization and medical care.  This results in a $3.5 million GF reduction in AHCCCS’ Acute Care program.

·          Due to savings in AHCCCS’ Federal Emergency Services (FES) program, the Fee-For-Service (FFS) line item in Acute Care is reduced by $1.1 million in GF dollars and $2.1 million in federal dollars.

·          The $1.1 million in FES GF savings is appropriated to the SES program to pay for doctor and clinic provider claims for SES enrollees.  These monies will not be used for inpatient or outpatient hospital reimbursement.

 

Makes technical and conforming changes.

 

Contains an Emergency Clause.

 

SB 1060 was amended in the Appropriations Committee with a strike everything amendment.  Further modifications are as follows:

·          Provides supplemental increases to DES for General Assistance and Adoption Services.

·          States that DES will deposit $2,392,600 of prior year Health and Dental Reimbursements in to the General Fund by May 15, 2002 to reimburse the General Fund.

·          Contains technical and conforming changes.

 

SB 1060 was amended in Committee of the Whole as follows:

·          Provides a supplemental of $2 million to Arizona Department of Education for Basic State Aid.

·          Provides a $29,000 other fund supplemental for the Osteopathic Board.

·          Makes the state responsible for the difference between the base military pay and state salary for employees whose military base pay is less that their state pay. 

·          The pay differential will be funded from the employee’s own vacancy savings and shall not exceed 270 days. 

·          This provision only applies to military personnel on active duty who have been ordered to that duty for at least 720 days. 

·          The employee must be a member of the military reserves or National Guard prior to state employment and must provide proof of honorable service while on active duty to the state employer.

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·          45th Legislature                    

·          Second Regular Session        3          May 3, 2002

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